Posted in Marketing and Strategy Terms, Total Reads: 2256
Definition: Cost per Rating Point
The cost of reaching 1% of the targeted audience in print (advertisements) or any other media vehicle is called cost per rating point (CPP). In other words, it refers to the cost of buying one percent of the target population.
CPP is also referred as cost per gross rating point.
CPP tells you the amount required to be spent in order to reach the desired audience on various media platforms i.e. CPP lets you to plan your media budget efficiently. CPP also lets you to compare the costs and the efficiency of different outlets. It also serves as a permanent record of the advertising expenses
The greatest problem with CPP is that it does not ensure that different people will be reached at a particular time or just a single person will be reached repeatedly many times. CPP by itself does not provide any analysis. It is primary for budgeting purpose.
It is used as one of their planning tools by the media planners for: