Sports & Entertainment Marketing I
Name: ______________________________
Obj 3.08: Calculating Cost per Thousand, Cost per GRP, % of Reach
Equations & Examples:

Cost per Thousand (CPM) = (Cost of ad x 1000)/# of target audience
Cost of Ad = $10,000
Total Audience (TA) = 2,000,000
CPM = (10,000 x 1000)/2,000,000 = $5.00


Cost per Gross Rating Points (GRP) = expenses/GRP
GRP = Frequency x Reach % (the number of times an ad runs X the percentage of audience
reached)
Expenses = $150,000
GRP = 210
Cost per GRP = 150,000/210 = $714.25

Reach % = # of target audience (TA)/total target audience (TTA)
TA = 200,000
TTA = 2,500,000
Reach % = 200,000/2,500,000 = 0.08 or 8%
Practice Problems:
1. G105 sells a 30-second spot for $500. If the number of listeners is 200,000, calculate the cost
per thousand (CPM).
2. Apple spent $117,000 for 12 television spots on CBS with a total of 240 GRPs (gross rating
points). What was the cost per GRP?
3. What is the percentage of reach for a Foot Locker ad on 94.7 QDR, if the target audience is
875,000 18- 30-year-old males and 393,750 of the target audience is exposed to the message?
4. What is the GRP if Moe’s runs an ad on G105 10 times and only 50% of the targeted audience
hears it?
Sports & Entertainment Marketing I
Name: ______________________________
5. WRAL sells a 30-second TV commercial during “How I Met Your Mother” on Monday night for
$5,000. The number of people watching WRAL at that time is 500,000. What is the CPM?
6. Milton’s Pizza runs an ad in the Wake Weekly on Thursday. The target audience is 250,000
people in the Wakefield/Wake Forest area. Of that 250,000, only 118,500 people were actually
exposed to the ad. What is the reach % for this ad?
7. O2 Fitness Center wants to increase its membership, so it is planning to run a television ad to
promote lower membership fees for a limited time. If the target audience is 939,000 16- to 36year-old females, and 313,000 of the target audience is exposed to the message, what is the
percentage of reach for a local cable-television advertisement?
8. Lily Mae’s runs a TV commercial on various TWC channels advertising their holiday sales. The ad
runs 50 times during the week leading up to Black Friday. Based on ratings, 15,000 people saw
the ad during that week, which is 30% of the total audience. Calculate the GRP.
9. It cost the Wake Forest Red Robin $5,500 to run radio commercials in the Triangle area. The
targeted audience was 250,000 people. Calculate the CPM.
10. Leith Honda spent $100,000 advertising on WRAL TV. The gross rating points for this advertising
are 435. What is the cost per GRP?