Posted in Marketing and Strategy Terms, Total Reads: 118
Definition: Target Rating Point (TRP)
Target Rating Point (TRP) is an index which gives us an idea about reach and frequency of advertising messages towards a target audience. In simpler terms, it basically denotes how many people or audience is watching a particular advertisement. It is a method to determine the effectiveness of an advertisement.
TRPs help in deciding which market to invest, especially for smaller business. The strategy is to invest in those markets which allow deeper penetration into the target audience i.e. higher TRP.
How it is calculated?
TRPs is calculated for various media like Television, Radio, Print, Internet or offline advertising. The procedure is almost same for all media with slight difference in formula or some steps. Most popular among all media is Television which is explained here. The most efficient method for Television is TAM (Television Audience Measurement).A device known as People Meters is used to measure the time and advertisement which people watch throughout the day. It is fitted in the television of few thousands of audience (as it is too costly) depending upon factors like location, class and demographics. These are considered as samples to study whole population. The people meter records the timing and advertising across all the samples. Media companies like Nielsen measure total viewership for television show or advertisement, while Arbitron does the same for radio. A monthly report can give the viewership status of the advertisement.
Different from Gross Rating Point
TRP measures the impact on target audience while GRP denotes the total audience. For example, if you buy 100 GRP's for a television spot, but you are aware that only 50% of that audience is actually your target audience, then you would consider your TRP as 50 to calculate your net effective buy.