What is CPRP and Its Comparison with CPT

The Indian television industry is completely driven by viewership data collected, evaluated and released by BARC (Broadcast Audience Research Council of India). Data is the sole driver of all the investments made by advertisers on the television medium. It is very crucial that the broadcaster (TV Channel Owners) and brands must know and understand the television data science to justify their role in entire the eco-system. CPRP and CPT in advertising and media planning are terms which need to be concisely understood while planning media campaigns on television channels.

 CPRP stands for Cost per Rating Point. It is the cost incurred to reach one individual in the targeted group of the brand. It is an indicative figure which gives the media planner an idea of the cost incurred in passing the brand message to one single individual in the defined target group. It is the cost of advertising time on television channel based on the price of time for a single rating point generated by the channel. This has been the basis of buying TV time in India. We can’t determine CPCR without having the understanding of Rating points and GRP’s. So let’s attempt to understand it one by one. What is Rating Point (Also known as TRP)?
As we explained in our last post, TRP (Television Rating Point) refers to a percentage of audiences that views a certain television program or watches television during a certain time slot. It is calculated by measuring the time spent in watching the television program or slot.

Viewers	Duration of viewing the program
Person 1	10 minutes
Person 2	5 minutes
Person 3	6 minutes
Person 4	24 minutes
Person - 5, 6. 7, 8, 9 and 10	Not watched at all

It will be calculated as: TRP is equal to = {(10/30 + 5/30 + 6/30 + 24/30)/10} X 100 = 15

What is GRP?

GRP (Gross rating point) is basically a summation of all TRP’s. It is a relative number and has no meaning standalone. Each GRP equals 1 percent of the total audience; a TRP equals 1 percent of the target audience. If 40 percent of total TV households saw your commercial one time, that would translate into 40 GRPs. If your target audience was 50 percent of the total audience, that would translate into 20 TRPs.

Now let’s come back to term CPRP – It is the amount spent by the media buyer to achieve one rating point. I.e. Total Expenditure/GRP. As CPRP is derived from GRP, even CPRP in Advertising is a relative number and doesn’t have a significance standalone.

e.g. GRP (i.e. Sum of all TRPs/TVRs) = 15 TVR; Total amount spend on the TV Campaign = Rs 2,50,000. Then CPRP = 2, 50,000/15 = 16666.67

CPRP is popular basis or method of buying TV time in India however many industry experts support CPT measure of media effectiveness over CPRP. It effectively measures the amount spent to reach 1000 viewers and thus takes into account the absolute number of people reached and therefore clearly indicates the change in the number of individuals watching television or a program. This method ensures a fair share for the broadcasters who are not shortchanged for the possible loss in percentage rating points despite growth in the universe and the actual viewer base.

But, what is CPT?

It is the advertising cost of reaching that many viewers in a defined target group on television through a programme or a channel. CPT effectively measures the amount spent to reach 1000 viewers and thereby taken into account the absolute number of people reached through a programme or channel.

Fundamental Difference between CPT and CPRP

As we learned, CPT is based on the absolute number of people reached, it effectively takes into account the sharp increase in the number of Indians watching television. CPRP, on the other hand, is a relative measure that identifies the percentage of total viewers reached by a programme or channel- so it doesn't capture the increase in the television universe. CPT is based only on reach, CPRP is based on GRP. Further, CPRP takes into account the average of a number of minutes for which a viewer stays with a show or an ad. It takes into account the duplication of viewers, unlike CPT. However, CPRP cannot measure reach, which is increasing with time.

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