Tubemogul Launch TV-Style GRP Metric for RTB Video Buyers

Vincent Flood 30 March, 2012 

Tubemogul NielsenTubemogul have announced they’re partnering with Nielsen to bring TV-style gross rating point (GRP) ratings to media bought via their real-time bidding (RTB) platform. The move will enable Tubemogul to offer marketers the chance to compare their online RTB video buys with their TV campaigns using the metric TV buyers trust and are most familiar with.

In a statement Mark Wagman, Product Manager at Accuen Media (Omnicom Group’s trading desk), said: “GRPs change the calculus by letting us allocate budgets purely based on where viewers are and make apples-to-apples comparisons with television. And unlike television, where ratings can vary day-to-day, advertisers can know exactly what they are getting for a given budget given the optimization available online.”

GRP for Digital Dummies

If you’re from a digital background, you may not have encountered the GRP metric or understand how it is calculated. Gross rating points may appear to be a relatively primitive ratings system at first sight, but the GRP is widely respected – and, more importantly, understood – by TV buyers.

So how did the GRP become so significant? The main reason is that gross rating points aren’t quite so much regarded as a meaningful metric for measuring the performance of a campaign, but it is more commonly used as a conceptual currency for buying TV advertising.

It is calculated as follows:

% of the target market reached  x  exposure frequency = GRP

So, a TV show which advertises to 40% of the target market and gives them 3 exposures, will have 120 GRP.  Again, a GRP doesn’t measure true impact in terms of engagement or sales, but it’s value lies in the fact that it acts as a common standard that everyone understands.

Introducing the metric online will make it easier for TV buyers to understand what they’re buying and will in all likelihood make it easier for them to justify moving budget over from traditional TV.

2012-03-30T14:54:22+01:00

About the Author:

Vincent Flood is the Founder & Editor-in-Chief at VideoWeek.
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