Cost Per Rating Point

Definition

Cost per rating point (CRP or CPRP) or cost per point (CPP) is the cost of an advertising campaign, relative to the rating points delivered.

Similar to CPM (cost per thousand impressions), cost per point measures the cost per rating point for an advertising campaign by dividing the cost of the advertising by the rating points delivered. [1]

CPP = Cost of Advertising ($) ÷ Rating Points Delivered (#)

 

The American Marketing Association defines cost per rating point as:

“A method of comparing the cost effectiveness of two or more alternative media vehicles in radio or television. CPRP is computed by dividing the cost of the time unit or commercial by the rating of the media vehicle during that time period.” [2]

See Also

Cost per click
Cost per order
Cost per purchase

References

1. ^ Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; and David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance (Second Edition). Upper Saddle River, New Jersey: Pearson Education, Inc.
2. ^ American Marketing Association, AMA Dictionary.