CRITERION FOR SELECTING MEDIA VEHICLES

1. CRITERION FOR SELECTING
MEDIA VEHICLES
MODULE IV

2. • Reach: The net unduplicated number of people that the plan
covers at least once in the defined period.
• 1. The % of target audience who saw a particular content on TV
(ad, channel, day-part, programme) at least once during a
specified campaign period
• 2. Reach is always unduplicated
• 3. Reach is usually measured over the activity period (one week,
4 weeks, 6 weeks, etc.)
• Total number of people available - 10
• People that watch TV for at least a min - 6
• Hence, Reach = 6/10 = 60%

3. • Reach of media (Maximum Possible) Of the total audience the
maximum number of people that the medium covers
• Television The number of people who watch television at least
once a week.
• Print AIR – Average Issue readership
• Radio The number of people who listen to radio at least once a
week
• Cinema The number of people who visit cinema at least once a
month

4. • Frequency: Frequency refers to the number of times the
receiver is exposed to the media vehicle. Also Frequency refers
to the number of exposures to the same message that each
household supposedly receives. Frequency is important
because repetition is the key to memory.

5. • Gross Rating Points (GRPs) or Gross Viewership per thousand
(GVT): A combined measure of reach and frequency indicating
the weight of a media plan. the total weight of a specific media
schedule, computed by multiplying the reach, expressed as a
percentage of the population, by the average frequency. GRP /
GVT if the sum of all rating points delivered by the media
vehicles carrying an advertisement or campaign.
• GRP / GVT unit costs decrease the more GRPs/ GVT are bought.
• Thus Gross Rating Points (GRPs) equal Reach times Frequency,
expressed as a percentage.
• GRPs = Reach % x Frequency

6. • Gross Viewership per thousand (GVT) equal Reach times
Frequency, expressed in thousand.
• GVT = Reach (000’s) x Frequency
• GRPs / GVT measure the total of all Rating Points during an
advertising campaign.

7. • TVT Ratings or Impressions (000): Number of individuals in
000s of a target audience who viewed an "Event", averaged
across minutes. Also known as TVT. The word TRP (Television
Rating Point) has now been reworded as TVT (Television
Viewership In Thousands). TV show ratings have now started
coming in thousands instead of percentages. Earlier, ratings for
shows ranged from 0.4 to 4.5, now they range from 750 to
7,000 and more — basically indicating viewership in actual
numbers.

8. • Cost per thousand: Cost per thousand (CPM) is one yard-stick
to compare the costs of different media. It is the cost of
reaching a thousand persons.
• The formula for CPM is:
• Cost per Thousand = Cost of media unit x 1000
• Gross Impression
• To illustrate, if we take a full page ad at a price of Rs. 50000 in
a magazine to reach one lac people, our CPM would be
• Cost per Thousand = 50000 x 1000 = Rs.500
100000

10. • CPRP: The cost of reaching one percent of the target
population. CPP is calculated by dividing the cost of the
schedule by the gross rating points. National and regional
advertising buyers frequently use this cost efficiency measure,
since it can be applied across all media.
• The cost per rating point is used to estimate the cost for TV
advertising on several shows.
• Cost per rating point = Commercial time cost
Percentage of audience.

11. • Waste: When an ad reaches the consumers whom the advertiser
does not want to reach. Reaching people who are neither
customers nor prospects.
• Circulation: A newspaper's circulation is the number of copies it
distributes on an average day. Circulation is one of the
principal factors used to set advertising rates. Circulation is not
always the same as copies sold, often called paid circulation,
since some newspapers are distributed without cost to the
reader.

12. • Pass-along rate (Print): A newspaper's readership, on the other
hand, is almost always a higher number, since it's the
newspaper's total circulation multiplied by the average number
of people who read each copy. For example, various members
of a household may eventually read the same copy of a
newspaper or a publication might be passed around from
person to person in an office. This "pass-along" rate is
generally thought to be about 2.5 readers.
• For example, if your newspaper's circulation is 50,000 total
readership would be 50,000 x 2.5 or 125,000.
• The fact that readership does not equal circulation is confusing
to many prospective advertisers and you may find competitive
publications taking advantage of that misunderstanding to look
bigger than they really are.

13. GROSS RATING POINT- FORMULA
• 1. GRP = REACH X FREQUENCY
• 2. FREQUENCY = GRP/ REACH
• 3. REACH = GRP / FREQUENCY
• 4. GRP = BUDGET / CPRP ( cost per rating point)
• 5. CPRP = BUDGET / GRP
• 6. CPRP = TPC (Total Production Cost) / GRP
• 7. FREQUENCY = NO. OF PEOPLE X NO.OF TIMES
TOTAL NO. OF PEOPLE
•

14. • 8. BUDGET = GRP X CPRP
• 9. CPRP = AVERAGE EXPOSURE COST
% OF TARGET AUDIENCE
• 10. AEC = CPRP X % OF TARGET AUDIENCE
• 11. CPRP = BUDGET / GRP
• 12. % OF TA = AEC / CPRP
• 13. AEC (Average Exposure Cost) = NO. OF SPOTS X COST PER
SPOTS
TOTAL NO. OF SPOTS

15. • QUESTION-1.
• Media 1: Reach = 53 %, Frequency = 9, TPC = 8, 50,000, AEC =
50,000
• Media 2: Reach = 70%, Frequency = 13, TPC = 8, 70,000, AEC
= 55,000 Find the % TA, GRP and CPRP for Media 1 and Media 2
• Solution:-
• FORMULAS:
• GRP = R X F
• • CPRP = TPC/GRP
• • % OF TA = AEC/CPRP

16. • MEDIA I
• GRP = R X F = 53 X 9= 477
• CPRP = TPC/GRP
• =850000/477
• = 1781.97
• % OF TA = AEC/CPRP
=50000/1781.97
= 28.05

17. • MEDIA II
• GRP = R X F = 70 X 13 = 910
• CPRP = TPC/GRP
=870000/910
= 956.04
• % OF TA = AEC/CPRP
• = 55000/956.04
= 57.52

18. SECOND GRP NUMERICAL
• Question:
• 20,000 people see an advertisement 5 times, 15,000 people see an
advertisement 10 times, and 10,000 people see an advertisement 15
times. The Reach is 35% and the TA is 45 %
• The cost per spot is:
• 5@ Rs.80,000 per spot
• 8@ Rs.70,000 per spot
• 4@ Rs.75,000 per spot
• 3@ Rs.85,000 per spot
• What is TPC?

19. • SOLUTION:
• TPC is total plan cost, i.e. Budget.
• Formulas:
• • Frequency = No of people x No of times
Total no of people
• • GRP = R X F
• • AEC = No of spots x cost per spots
• Total no of spots
• • CPRP = AEC
TA
• • TPC = CPRP X GRP

20. • STEP I
• • Frequency = No of people x No of times
Total no of people
• = (20,000 x 5) + (15,000 x 10) + (10,000 x 15)
• 45,000
• = 100000 + 1,50,000 + 1,50,000
45,000
• = 40,0000 = 8.88
45,000
• F= 8.88

21. • STEP II
• • GRP = R X F = 35 X 8.88 = 310. 8
• STEP III
• AEC = No of spots x cost per spots
Total no of spots
• = ( 5 x 80,000) + ( 8 x 70,000) + ( 4 x 75,000) + ( 3 x
85,000)
20
• = 40,0000 + 56,0000 + 300,000 + 2,55,000
20
• = 15,15000 = 75750
20
• • AEC = 75750

22. • STEP IV
• • CPRP = AEC = 75750 = 1683.33
TA 45
• CPRP= 1683.33
• STEP V
• TPC = CPRP X GRP = 1683.33 X 310.8
• TPC = 523178.96

23. QUESTIONS
• Q1. MEDIA – 1
• REACH= 75, FREQUENCY= 10, TPC= 8,00,000, AEC= 40,000.
• MEDIA – 2
• REACH = 20, FREQUENCY= 20, TPC= 6,00,000, AEC= 70,000.
• Find - % Of TA, GRP & CPRP FOR BOTH MEDIA -1 & MEDIA- 2.

24. • Q2. 15,000 people see an advertisement 6 times, 35,000
people see an advertisement 4 times and 10,000 people see an
advertisement 2 times.
• Reach = 35%, TA = 55%, AEC= 40,000.
• Find GRP, CPRP and Budget. If the frequency is decreased by
0.5 then what are the corresponding changes.

25. • Q3. A media planner placed 20 times advertisement of a
particular brand on a media whose reach was 30%. The Average
Exposure Cost was Rs.60,000. The TA is 30%. Determine the
GRP and CPRP. If the Budget is increased by 10 lakhs and the
AEC is reduced by 10,000 what is the change in CPRP. If %TA
and Reach is constant, what is the change in GRP?

26. Q4. DETERMINE THE BUDGET OF BOTH MEDIA 1 AND MEDIA 2. IF
AEC IS INTERCHANGED DETERMINE THE REVISED BUDGETS OF
MEDIA 1 AND MEDIA 2.
MEDIA 1 MEDIA 2
REACH 20 40
FREQUENCY 15 12
AEC 3000 2500
% OF TA 25 20

27. • Q5.
• 20,000 people see an advertisement 5 times
• 15,000 people 10 times
• 10,000 people 15 times.
• Reach = 35% TA = 45%
• The cost per spot is:-
• 5@ Rs.80,000 per spot
• 8@ Rs.70,000 per spot
• 4@ Rs.75,000 per spot
• 3@ Rs.85,000 per spot
• What is TPC? What is GRP, if the Budget is increased by 20% and CPRP
is constant.

28. • Q6. What is the Reach and CPRP if GRP is 250, frequency is 7.5
& TPC is 50,00,000 (50 lakhs). What is AEC if the TA is 40%. If
GRP is increased by 50. What is the final TPC?

29. • Q7.
• 24,000 people see an advertisement 6 times,
• 20,000 people see an advertisement 5 times,
• 18,000 people see an advertisement 4 times.
• Reach is 30% and the TA is 45%, AEC = 55,000.
• Find : GRP, CPRP and Budget.

30. • Q8.
• GRP is 500 and the TA is 45%. Determine the frequency of an
advertisement whose reach is 40%.
• The per spot: 3 spots at the rate of Rs.30,000
• Per spot: 5 spots at the rate of Rs.25,000
• Per spot: 4 spots at the rate of Rs.35,000
• Per spot: 6 spots at the of Rs.20,000
• Per spot: 2 spots at the rate of Rs.40,000
• Per spot determine the total cost of the media plan.

31. • Q9.
• 35,000 people see an advertisement 7 times.
• 45,000 people see an advertisement 8 times.
• 55,000 people see an advertisement 9 times.
• The Reach is 40% and the TA is 40%, AEC is 50,000. What is
TPC? What is the GRP if the Budget is increased by 30% and the
CPRP is constant?

32. • Q10.
• Reach is 35% , Frequency is 10 and TA is 40%.
• The cost per spot is:
• 6@ Rs.20,000 per spot
• 7@ Rs.30,000 per spot
• 8@ Rs.40,000 per spot
• 9@ Rs.50,000 per spot
• Find GRP, CPRP and Budget. What are the corresponding
changes if the budget if decreased by 15% and the CPRP is
constant?

33. • GVT FORMULAS
• GRP = Reach % x Frequency
• • Reach % = (No of People Reached/Universe) x 100
• • Reach 000’s = (No of People Reached)/1,000
• • GVT = Reach (000’s) x Frequency
• • CPT = Total Cost
GVT (000’S)
= Cost of Advertisement X 1,000
Total Universe

34. • Q1. 59,000 people see an advertisement 3 times, 87,000 see
an advertisement 9 times and 67,000 people see an
advertisement 4 times. Universe is 444,000. Total Cost of
Advertising is 76,000. Find Reach%, GVT & CPT.
• Step I
• Reach % = (No of People Reached/Universe) X 100
• = (59,000+87,000+67,000)/444,000
• =(213,000 / 444,000) X 100
• = 47.97 %

35. • Step II
• Reach 000’s = (59,000+87,000+67,000)/1,000
• Reach 000’s = 213
• Step III
• Frequency = No of People x No of times
Total No of People
• = (59,000 x 3) + (87,000 x 9) + (67,000 x 4)
• 213,000
• = 177,000 + 783000 + 268000
• 213,000
• = 1228000 = 5.76
• 213,000
• F= 5.76

36. • Step IV
• GRP = Reach % x Frequency
• GRP = 47.97 x 5.76 = 276.30
• Step V
• GVT = Reach (000s) x Frequency
• Reach 000’s = (59,000+87,000+67,000)/1,000
• Reach 000’s = 213
• GVT = 213 x 5.76 = 1226.88

37. • Step VI
• CPT = Total Budget
• GVT (000’s)
• = 76,000/1226.88
• = 61.94
• CPT=61.94

38. • Q1. 35,000 People see an advertisement 9 times, 45,000
people see an advertisement 3 times and 14,000 people see an
advertisement 6 times. Universe is 1,70,000. Total cost of
advancing is Rs.72,000. Find the Reach% GVT and CPT.
• Q2. 25,000 people see an advertisement 7 times, 15,000 see
an advertisement 4 times and 34,000 people see an
advertisement 2 times. Universe is 2,70,000. Total cost of
advancing is Rs.92,000. Find the Reach% GVT and CPT.

39. • Q3. 35,000 people see an advertisement 9 times, 45,000
people see an advertisement 3 times and 14,000 people see an
advertisement 6 times. Universe is 1,70,000. Total cost of
advertising is Rs.72,000. Find the Reach% GVT and CPT.
• Q4. 59,000 people see an advertisement 3 times, 87,000 see
an advertisement 9 times and 67,000 people see an
advertisement 4 times. Universe is 4,44,000. Total cost of
advertising is 76,000. Find the Reach% GVT and CPT.

40. • Q5. 23,000 people see an advertisement 4 times, 34,000 see
an advertisement 6 times and 93,000 people see an
advertisement 5 times. Universe is 5,67,000. Total cost of
advertising is 91,000. Find the Reach% GVT and CPT.

41. • AVERAGE FREQUENCY FORMULAS
• Average frequency = OTS/ Net readership
• Net readership = Readership – Duplication
• OTS = Readership x Insertions

42. • AVERAGE FREQUENCY NUMERICALS
• Find the average frequency of the advertisement in the
magazines using the data given below:
• Readership: Magazine A= 79,000, Magazine B= 76,000,
Magazine C = 53,000
• Duplication of Magazine A, with Magazine C = 4,000,
• Duplication of Magazine B, with Magazine A= 3,000
• Duplication of Magazine C, with Magazine B= 3,800,
• Insertions: Magazine A= 4, Magazine B= 8, Magazine C = 3

43. • STEP I
• OTS = Readership x Insertions
• OTS A = 79,000 x 4 = 316000
• OTS B = 76,000 x 8 = 60, 8000
• OTS C = 53,000 x 3 = 159,000
• Total OTS = 1083000
• STEP II
• Net readership = Readership – Duplication
• A = 79,000 – 4,000 = 75,000
• B = 76,000 – 3000 = 73,000
• C = 53,000 - 3800 = 49,200
• Total Net readership = 197200

44. • STEP III
• Average frequency = OTS/ Net readership
• 1083000 / 197200
• OTS= 5.49

45. • Q1. Find the average frequency of the advertisement in the
magazines using the data given below:
• Readership: Magazine A=55,000; B=65,000; C=75,000
• Duplication of Magazine A: with Magazine B=5,000, with
Magazine C=10,000
• Duplication of Magazine B: with Magazine A=4,000, with
Magazine C=6,000
• Duplication of Magazine C: with Magazine A=3,000, with
Magazine B=7,000
• Insertions: Magazine A=5, B=6, C=7

46. • SOLUTION:
• Net Readership= Readership- Duplication
• A = 55,000-15,000= 40,000
• B = 65,000-10,000= 55,000
• C = 75,000-10,000= 65,000
Magazine Readershi
p
Duplication Insertion
A B C
A 55,000 5,000 10,000 5
B 65,000 4,000 6,000 6
C 75,000 3,000 7,000 7

47. • OTS = Net Readership x Insertions
• A = 40,000 x 5= 2,00,000
• B = 55,000 x 6 = 3,30,000
• C = 65,000 x 7 = 4,55,000
• Average Frequency = OTS
Net Readership
= 2,00,000 + 3,30,000 + 4,55,000
40,000 + 55,000 + 65,000
= 9,85,000
1,60,000
= 6.1562

48. • Q2. Find the average frequency of the advertisement in the
magazines using the data given below:
• Readership: Magazine X=65,000; Y=25,000; Z=33,000
• Duplication of Magazine X: with Magazine Y=3,000, with
Magazine Z=6,000
• Duplication of Magazine Y: with Magazine X=4,000, with
Magazine Z=5,000
• Duplication of Magazine Z: with Magazine X=2,000, with
Magazine Y=7,000
• Insertions: Magazine X=5, Y=7, Z=6

49. • Q3. Find the average frequency of the advertisement in the
magazines using the data given below:
• Readership: Magazine A=35,000; B=45,000; C=55,000
• Duplication of Magazine A: with Magazine B=5,000, with
Magazine C=4,000
• Duplication of Magazine B: with Magazine A=5,000, with
Magazine C=2,000
• Duplication of Magazine C: with Magazine A=4,000, with
Magazine B=2,000
• Insertions: Magazine A=2, B=4, C=6

50. • Q4. Find the average frequency of the advertisement in the
magazines using the data given below:
• Readership: Magazine A=58,000; B=81,000; C=71,000
• Duplication of Magazine A, with C = 7,500
• Duplication of Magazine B: with Magazine A=8,500
• Duplication of Magazine C: with Magazine B=9,800
• Insertions: Magazine A=2, B=4, C=6

51. • Q5. Find the average frequency of the advertisement in the
magazines using the data given below:
• Readership: Magazine A=41,000; B=64,000; C=53,000
• Duplication of Magazine A: with Magazine C=6,000
• Duplication of Magazine B: with Magazine A=5,000
• Duplication of Magazine C: with Magazine B=4,300
• Insertions: Magazine A=2, B=5, C=4

52. • Q6. Find the average frequency of the advertisement in the
magazines using the data given below:
• Readership: Magazine A=38,000; B=28,000; C=40,000
• Duplication of Magazine A: with Magazine B=3,500
• Duplication of Magazine B: with Magazine C=4,500
• Duplication of Magazine C: with Magazine A=4,000
• Insertions: Magazine A=3, B=5, C=6

53. • Q7. Find the average frequency of the advertisement in the
magazines using the data given below:
• Readership: Magazine A=38,000; B=28,000; C=58,000
• Duplication of Magazine A: with Magazine B=3,300
• Duplication of Magazine B: with Magazine C=2,900
• Duplication of Magazine C: with Magazine A=4,800
• Insertions: Magazine A=3, B=6, C=5