The Gross Rating Point, or GRP for short, is one of the metrics used to decide where a television ad should be run, how to run it, what platform to use, and which TV networks or channels to choose. It is one of the methods of calculating the efficacy of an ad that every advertisement company has to become familiar with in order to be successful.

What is a Gross Rating Point exactly?

The multi-billion dollar advertisement industry all over the world relies on the method of Gross Rating Points to determine the estimated effectiveness of particular TV advertisements. The rating point measures the amount of viewers, in percentage, reached by the networks. The GRP is the impression that the advertisement will have had on the number of people tuned in. It is determined by the multiplication of the number of people the ad is viewed by and the number of times the ad was run during a specific timeframe.

Where does the problem lie?

It seems like a pretty straight forward way to measure the effect and success of an advertisement, but in reality, it is anything but. The main issue resides with the fact that the formula makes a rather large assumption; that the ad is actually being watched by those viewers and that they have subsequently formulated an opinion on it. There is no way of ensuring these factors are accurate, which is what makes it an unreliable metric for calculating the efficacy of an ad, especially in the world of TV advertisements.

Additionally, the world is becoming more digital. There are many other alternatives that have piqued the interests of consumers all over the world. Cheaper, easily accessible, and exclusive alternatives like Netflix, Hulu or Amazon Prime effectively create distance between people and the traditional TV. A massive drop in TV subscriptions have been observed of late, which renders GRP that much more unreliable since the number of people watching has been reduced significantly. In short, these viewers have been redirected to another platform, while these metrics are trying to squeeze as much perceived value from them as possible.

On a much broader level, you will even notice that GRP only calculated the amount of media that is out there for the public to see. It determines the size of the advertisement campaign in correlation to the number of targeted individuals rather than measuring the efficacy of the campaign. Questions like what the impact of the ad is, what impression it creates and whether it was successful in persuading people to opt for brands are largely left unanswered.

What can you do instead?

Living in a digital age, there are more nuanced methods of calculating the success of an advertisement that should be used together to achieve a more satisfactory, all inclusive, result. These methods include:

  • Check the ratings

For TV advertisements, you should observe the amount of viewers, also known as the rating, the TV channel has. This will give you a fair idea of the amount of people your ad is displayed in front of. These networks can also give you data that provide you with vital information like the age group that was tuned in at the time your ad was running and how many times they saw it.

  • Keep a check on your website

You should set up a specific landing page for anything you advertise on television. Depending on the type of product or service you are pitching, people are more likely to visit your website to avail what you have to offer or to find out about more information. Naturally, the increase in the number of times your website is accessed will help you determine just how successful your advertisement was in persuading potential customers.

  • Interview a target customer

When you advertise through television, you aim is to leave a long-lasting impression that will increase your brand identity and recalling rates. The best way to find out if your ad achieved this objective is to interview a customer. You can get direct feedback, through questions that will help you determine if this is an investment you want to continue with.

  • Look for sales growth

At the end of the day, the number of sales you make are the ultimate determining factor. The more the sales after your ad has been released to the network or channel, the more efficient your ad was in grabbing attention. Even experiencing increased interaction, queries, visits or calls is a sign that your television ad is serving the purpose of promoting your brand, its product or service as well as increasing your market share, ultimately.