digital
GRPs
The What, Why and How
of Digital’s New Metric
digital
GRPs
The What, Why and How
of Digital’s New Metric
sneak a peek
See BrandPoint,
TubeMogul’s Digital GRP
Buying Platform in action.
SCAN THE QR CODE to
watch the video.
What is a Digital GRP?
See pages 4–6
How is it calculated?
See page 6
Why does it matter?
See page 7
What is BrandPoint?
See pages 12–19
A short lesson
in GRP History
How Nielsen Did It
Viewer Diaries
In this early approach
viewers manually recorded
their viewing habits and
reported back to Nielsen for
aggregation and analysis.
Gross Rating Points (GRPs) are the standard currency that
broadcast TV has used to plan, purchase and measure
advertising campaigns since the 1950s. The GRP represents
a combination of reach and frequency, measured according
to the households reached by an advertisement versus the
total targeted population.
Set Meters
This technology-driven
approach, which has since
become the norm, used
a metering device that
connected to a “Nielsen
Families’’ television set
and reported minuteby-minute viewership
analysis via telephone and
now ethernet. Later in the
process, Nielsen was able
to segment more specific
The first federally regulated television ad ever broadcasted
was aired on July 1st, 1941 on then WNBT (now WNBC), during
a Brooklyn Dodgers and Philadelphia Phillies baseball game.
The spot was for Bulova Watches, it was ten seconds long,
showing a static image and reportedly cost $9—a small price
to pay for such a historical event.
Nine short years later, the 1950s gave way to sponsored
programming, regularly scheduled advertisements and
viewership ratings. Arthur Nielsen, who had twenty years
earlier helped pioneer radio market analysis, shifted gears
and developed a ratings system by which a sample audience’s
(Nielsen Families) viewership could be measured accurately.
viewer demographics from
individual family members
within the homes.
Using a statistical model,
Nielsen was able to
render an audience’s
size, demographics and
market by show, network,
and daypart. He called
these measurements
“ratings points.”
Nielsen’s methodology
(GRP = reach X frequency)
has changed little over
the years, and to this day
Nielsen remains the primary
source of TV audience
measurement around the
world.
History in the making
The Digital GRP changes online advertising. By measuring
television and online video with a common metric, all video
performance can be weighted equally, bringing video and
television into the same playing field.
1930 Nielsen begins to
monitor popularity of
radio programs
1922 First paid radio
commercial appears
1920 First (commercial)
radio broadcast airs in
the U.S.
1920
4
1930
2013 Introducing the world’s
first video advertising
platform that allows brands
to plan, buy and measure
digital video in GRPs
1950 Nielsen Ratings
begin to measure
television audiences
1941 First television
advertisement appears
1994 First banner ad
served on the Internet
1939 First regularly
scheduled television
broadcasts air on NBC
1940
1950
1991 The Internet goes
online: the World Wide
Web debuts
1960
1970
1980
1990
2000
2010
5
What is a
Digital GRP?
Why do
digital GRPs
Matter?
A Digital GRP is a unit of
measurement that represents the
percentage of online viewers reached
within a total targeted audience
population (e.g. Females 18–34 in
the New York DMA) multiplied by the
number of times they were reached.
The digital GRP will change how
brands integrate digital video
advertising into their overall media
strategy by:
1
Enabling brands to plan, buy
and measure digital video the
same way as television
2
Introducing an industry standard
to measure the reach and
frequency of all video campaigns
3
Delivering increased transparency
into a brand’s online reach
4
Verifying audience targeting
unique
digital
GRP
in-target
audience
reached
Total target
frequencY
of ad exposure
100
population
Simplified Digital GRPs are
calculated by dividing the in-target
impressions by the total target
population. (Frequency is embedded
within the total in-target impression
delivery.)
digital
GRP
6
in-target
impressions delivered
Total target
population
100
For the first time, brands can
accurately and efficiently merge
online and offline campaign
performance data, taking the
advertising and marketing industry
one step closer to a single source
data model.
7
5 Benefits
for Marketers
using digital
GRPs
1
Simplifies cross-media planning
and budget allocations
2
Improves accountability of
digital targeting with verifiable
and optimized delivery to online
populations
3
Provides a common metric
between television and digital
video to compare campaign
performance and audience reach
4
TV buyers can utilize historical
and proprietary performance
data to make informed digital
investments
5
Increases reach opportunities
with expansive availability of
online inventory
Typical
Digital GRP
Questions
I want to deliver a
certain number of
GRPs per week, what
is the investment level
needed to do this?
See pages 12–13
I have a budget, how
many GRPs can I get
for my investment?
See page 15
Can you match the
cost per point I am
getting on my
television buy?
See pages 18–19
8
9
The World’s
Ready for The
Digital GRP
“I fully expect the joint
industry effort Making
Measurement Make
Sense to establish the
digital Gross Ratings
Point (GRP) as the prevailing metric for
premium digital media transactions.
At the same time, I anticipate a major
increase in programmatic buying,
which has emerged as an effective
way for publishers to monetize data
and drive higher CPMs for excess
inventory. As programmatic buying
expands, I expect advancements in
the use of data and machine learning
to offer marketers both ease in largescale, highly targeted media purchases
across multiple devices and the
capability to dynamically microtarget
their messaging. It is at this point
that we will reach the promise of
always-on marketing.”
— Patrick Dolan, Executive Vice President and COO, IAB
10
“The national cable marketplace
has been very fluid over the past
year and at times, certain demo­
graphics are harder to reach.
BrandPoint is the perfect outlet
for looking at online video to
supplement those GRPs.”
— Rob Bochicchio, EVP, Chief Media Investment
Officer, ID Media, an IPG media agency
“GRPs can be great equalizers in
media mix planning.”
— Perianne Grignon, SVP and CMO, x+1
“GRP-style metrics are suitable
when it comes to answering
who to buy from, how much,
and what to pay.”
— Thomas Acquaviva, SVP Strategic
Accounts at Nielsen Online
“BrandPoint from TubeMogul
gives us the ability to plan GRPs,
look at audience data and make
a determination of where we
want to serve our ads based on a
number of different factors.”
— Robert Brill, VP Strategy and Operations,
Fulcrum 5
11
TubeMogul’s Digital GRP
Buying Platform
MEASUREMENT
COMMONALITY FOR TV
AND DIGITAL BUYS
Guaranteed
cost
per point
MIRROR
BROADCAST
BUYING PRACTICES
by purchasing video
inventory using GRPs
Set targets for
gender, age and GRPs
Choose flight dates
and inventory
quality tiers
Select sites,
exchanges, DMAs and
advanced targeting
FORECASTS AUTO­
MATICALLY UPDATE
WITH EVERY PARAMETER
YOU SELECT, allowing
you to see exactly how
each change affects your
campaigns
PLAN AND OPTIMIZE
GRP BUYS ACROSS
PRIVATE INVENTORY
See exactly how sites score
based on the match rate
to a particular demo
12
13
How
Calculates and
Delivers GRPs
Online
1
2
Determines the audience and
the total target population size
Calculates the on-target % or
reach we can deliver within the
total targeted population by
using our proprietary audience
segments coupled with 3rd
party data1
3
Determines the bulk CPM
required to reach the audience
4
Determines the frequency
required to produce the
desired GRPs
5
Calculates GRP and CPP
6
Serves ads across all digital
platforms using verifiable
audience segments2
1 TubeMogul uses proprietary, as well as 3rd party audience data
from multiple providers to target and re-target audiences.
2TubeMogul uses Nielsen OCR data integrated in the platform to
verify targeted audience reach.
14
An Example
of
in Action
A brand marketer approaches TubeMogul
wanting to run a digital video campaign
targeting males 18–34 in conjunction with
their national television schedule. They have
requested the following information: What is
the total number of impressions possible and
how many GRPs can we deliver with a budget
of $400K?
Here is a breakdown of the pre-campaign
planning:
Total Population: U.S. Males 18-34
35M
Verified Reach: U.S. Males 18-34
4.4M 1
Bulk CPM for Demographic
$15
Campaign Budget
$400K
Cost Per Point 2
$5,256
Total Impressions
26.7M
Frequency / Viewer (on average)
6x
GRP 3
76.1
1 Demographic data verified by Nielsen OCR
2 Cost Per Point = 400,000/76.1 = $5,256
3 GRP = 4.4M/35M x 6 x 100 = 76.1
15
Audience Delivery
Methods
How it works
Audience Modeling and Forecasting
TubeMogul BrandPoint is built on proprietary audience
modeling technology that continually learns as campaigns
are run to increase the on-target accuracy rate of each
audience segment.
1
2
3
4
16
TRUTH SET
Collect large sample of online
audience whose demographic
information is known
Verify age and gender
with Nielsen OCR
ACTIVITY DATA
Characteristics of
Truth Set analyzed and
predictive algorithm
created
Nielsen OCR integrated in the
BrandPoint dashboard for seamless
audience and GRP reporting
5
TubeMogul applies a
predictive modeling
algorithm to analyze
unknown online users
and 3rd party data
segments
The proprietary
TubeMogul audience
segments and 3rd party
data are tested against
Nielsen to verify ontarget percentage
TUBEMOGUL’S
AUDIENCE MODELING
ALGORITHM IMPROVES
IN REAL-TIME
TubeMogul’s Machine
Learning System
gets smarter at
predicting audience
demographics the more
impressions it sees
Accurately identifies the audience via
actual user demographic data from
Facebook and other 3rd party data
providers
Evaluates unique reach and frequency
across campaigns, regions and within
each publisher
GRP outputs for ad campaigns are
delivered overnight and consistent with
Nielsen TV Ratings
17
Cost Savings
per dmA
Designated Market Area (DMA)
NEW YORK
LOS ANGELES
CHICAGO
DMA size
In the top 25 U.S. DMAs,
BrandPoint‘s CPP and CPM for
tier 1-2 sites were cheaper than
broadcast 76% of the time.
Television
CPP
CPM
Tubemogul
CPP
CPM
cost savings
CPP
CPM
9,249,290
$2,869.00
$32.31
$2,181.00
$24.30
24%
26%
8,132,310
$6,616.00
$84.43
$2,037.00
$26.80
69%
68%
4,256,032
$1,607.00
$38.71
$1,033.00
$25.04
36%
35%
PHILADELPHIA
3,352,295
$1,140.00
$34.95
$855.00
$25.20
25%
28%
DALLAS-FT. WORTH
3,273,320
$1,444.00
$45.28
$843.00
$27.04
42%
48%
3,172,717
$2,193.00
$73.59
$728.00
$23.82
67%
68%
SAN FRANCISCO-OAKland-SAN JOSe
BOSTON (MANCHESTER)
2,700,607
$876.00
$34.01
$852.00
$31.70
3%
7%
WASHINGTON, DC (HAGeRSToWN)
2,955,248
$1,026.00
$36.35
$694.00
$24.69
32%
32%
ATLANTA
2,907,839
$914.00
$32.55
$758.00
$27.41
17%
16%
HOUSTON
2,922,351
$1,514.00
$53.49
$739.00
$26.62
51%
50%
DETROIT
2,014,691
$506.00
$25.70
$535.00
$26.00
+6%
+1%
SEATTLE-TACOMA
2,125,382
$664.00
$33.96
$557.00
$26.65
16%
22%
PHOENIX (PRESCOTT)
2,125,996
$1,140.00
$56.61
$659.00
$30.65
42%
46%
TAMPA-ST. PETErsburg (SARASOTA)
1,690,273
$876.00
$52.92
$494.00
$25.95
44%
51%
MINNEAPOLIS-ST. PAUL
1,927,109
$407.00
$21.90
$483.00
$24.93
+19%
+14%
MIAMI-FT. LAUDERDALE
1,962,335
$1,148.00
$59.26
$514.00
$26.89
55%
55%
DENVER
1,831,650
$855.00
$49.71
$439.00
$24.88
49%
50%
CLEVELAND-AKRON (CANTON)
1,498,991
$337.00
$23.43
$405.00
$25.08
+20%
+7%
ORLANDO-DAYTONA BeaCH-MELBR
1,522,715
$556.00
$37.53
$429.00
$26.63
23%
29%
SACRAMeNTO-STocKTON-MODESTO
1,729,071
$606.00
$36.61
$474.00
$27.37
22%
25%
ST. LOUIS
1,309,645
$284.00
$22.07
$354.00
$26.29
+25%
+19%
PORTLAND, OR
1,353,509
$461.00
$36.24
$380.00
$27.96
18%
23%
1,115,118
$284.00
$26.17
$316.00
$26.35
+11%
+1%
RALEIGH-DURHAM (FAYETteViLLE)
PITTSBURGH
1,305,694
$384.00
$30.06
$343.00
$26.98
11%
10%
CHARLOTTE
1,303,496
$426.00
$33.68
$349.00
$27.19
18%
19%
Top 25 DMAs by Total Population
18
Designated Market Area Pricing for Adults 18-49. Rates are based
on average TV pricing and are subject to change. TubeMogul rates
are based on Tier 1 and 2 site inventory.
19
The future
of digital
GRPs
Glossary
Cost Per Thousand (CPM) The cost to deliver one
thousand ad impressions
Cost Per Point (CPP) Cost of reaching
one-percentage of an audience in any given
demographic segment
As more campaigns are run through
TubeMogul, the audience on-target
percentage grows more accurate
across all demographics. This
increased accuracy will result in
fewer wasted impressions and—
in turn—a lower Cost Per Point.
Cross-Platform The ability to publish or
measure performance across different media
channels and technologies
Facebook Data Demographic user data that is
captured and verified by Facebook
Frequency The number of times a single viewer is
exposed to an ad
GRP Gross rating point, measuring the size of an
audience reached by an ad
Impression A single delivery of an ad to a viewer
Nielsen Online Campaign Ratings (OCR)
A digital measurement solution that measures
audience reach and frequency and the resulting
GRPs for digital advertising campaigns
Cost per point
On-Target Percentage The impressions delivered
to the target audience as a percentage of total
On
g
ar
-T
et
P
c
er
en
t
Optimization Process of improving performance
of ad units based on campaign variables
Programmatic Buying The ability to automate
the process by which ads are bought, sold, and
served online
reach The unique number of people or households
who are exposed to a defined media channel or
medium during a specific period of time
Real-Time Bidding (RTB) The ability to bid on and
purchase ads one impression at a time in real-time
2012
2013
2014
2015+
Total Population A measure of the total number
of people within a defined audience segment
20
21
Where to Find us:
sales@TubeMogul.com
TubeMogul.com
@TubeMogul
TubeMogul is the leader in programmatic brand marketing.
The world’s largest brands and agencies centralize their
video advertising on TubeMogul’s enterprise platform.
Created specifically for brand marketers, TubeMogul’s
platform enables the execution of scalable digital video
campaigns, while providing the measurability and
accountability marketers demand.
Emeryville, CA (HQ) | New York | London | Tokyo | Singapore
The TubeMogul
Brand platform
Digital GRP Buying
Brand Focus
RTB-Enabled
Sydney | Toronto | Chicago | Detroit | Los Angeles | Kiev
Easy/Self-Serve
Platform
Formulas At a glance
unique
digital
GRP
in-target
audience
reached
frequencY
of ad exposure
100
Site-Level Analytics
All Screens
Total target
population
Cpp
on-target
CPM
Brand Safety
Campaign
spend
GRPs
delivered
Bulk CPM
On-Target
Percentage
Private Marketplace
Platform Brand Survey
Integrated with All
Supply Sources
All content © 2013 TubeMogul. All rights reserved.
Design Jessi Rymill, weareclosedmondays.com
23
simple
Buy video ads
in any format,
on any device,
at massive scale
effective
Real-time buying
based on brand
metrics delivers
successful
campaigns
accountable
Site-by-site
reporting and
multiple layers of
protection provide
ultimate brand
accountability
TubeMogul
See BrandPoint,
TubeMogul’s
Digital GRP Buying
Platform in action.
SCAN THE QR CODE
to watch the video.