SkyHorse.Org

In a conscient effort to help getting rid of CTR based performance measurements, I think it’s important to bring out two concepts not that familiar to online advertising professionals that are very relevant to online branding campaigns.

These concepts are the basis of any evaluation of a campaign marketing effectiveness, especially when using Behavioural Targeting and Audience Segmentation:

GRP – Gross Rating Point – Represents the proportion of users reached by a campaign from the “universe” of users (e.g. a Country total online population) and how often they were reached. In detail, GRP = Frequency x % users reached. E.g.:

- Campaign report shows avg frequency of 3
– Total UU was 15 000 000
– Total online population in the UK is 30M

GRP = 3 x 15 000 000 / 30 000 000 x 100 = 150

TRP – Target Rating Point – Represents what percentage of users reached with a campaign actually match the intended advertisers audience segment. Using the example above, if the advertiser wants to reach the “male” demographic, and the site / network delivering the campaign has a 70 male / 30 female split, then:

TRP = GRP x 70% = 150 x 0.7 = 105

Related posts:

• What is… Behavioural Targeting? Part I: Contextual, Re-targeting and Interest-based targeting
• wunderLOOP: The start of a new wave of online advertising
• Behavioural Targeting: The Future (a video by Audience Science)

This entry was posted on Tuesday, January 25th, 2011 at 4:11 pm and is filed under advertising. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.