Advertising and media representatives will show you how they cover your city or market, rates, circulation or audience delivery. Often media providers will tell you the Cost per Thousand (CPM) when you advertise with them, which is simply the cost of making contact with 1,000 people (or TV Viewing homes for Television) in your target audience.
Ask your media representative how these numbers are derived, as not all medium’s cost per thousand or audience measurement is the same. Avoid letting only the investment numbers influence your overall decision; a successful campaign focuses on using a mix of the media that their potential customers interact with the most.
Here are some media terms that will help you along the way:
CPM - Cost Per Thousand
An OOH Ratings derived CPM is the cost of delivering 1,000 impressions from individuals who see the advertising on displays in a market. Other media do not provide likelihood-to-see CPMs, but rather the cost of delivering 1,000 opportunities-to-see-advertising, i.e. people who may or may not see the advertising.
CPP - Cost per Gross Ratings Point
The cost of advertising exposure opportunities that equals one gross rating point in any geographically defined market or the delivery of in-market impressions equal to one percent of the population (gross).
In Out-of-Home advertising, Frequency is the the average number of times an individual notices an OOH advertising message during a defined period of time. Frequency in OOH advertising is typically measured over a four week period, but can be reported for any campaign length. For other forms of media, Frequency is the average number of times an individual has an opportunity to see an advertising message during a defined period of time.
The total number of contacts made with your target audience in one week. Impressions are reported in weekly increments.
The total number of in-market impressions delivered by a campaign expressed as a percentage of a market population. One Rating Point represents Impressions equal to 1% of the market population.
In Out-of-Home advertising, Reach is the approximate percentage of a target audience's population who notice an advertising message at least once during an Out-of-Home campaign. For other forms of media, Reach is the percentage of a target audience's population who has an opportunity to see an advertising message at least once during an advertising campaign. Total reach can never be more than 100%.