Reference library · TV budgeting
CPP (Cost Per Point)
CPP (Cost Per Point) is the price paid for one rating point: campaign cost divided by the GRPs or TRPs delivered. A buyer uses it to move in either direction between a fixed budget and the volume of rating points that budget can buy, at whatever price level the market or negotiation sets.
Formula
Worked example
A campaign on a mid-size European commercial network buys 400 TRPs on women 25-54 for a budget of €120,000. CPP = €120,000 / 400 = €300 per TRP. In the next round the station drops its rate to a €250 CPP for the same budget, so the buyer can now secure €120,000 / €250 = 480 TRPs, 80 points more reach for the same spend.
How it is used
Planners use CPP to compare cost efficiency across stations, dayparts, quarters or campaigns, to build a budget from a target GRP goal, or to negotiate rate cards down. It also underlies year-on-year price trend tracking once volume and audience definitions are held constant.
The common mistake
CPP figures are only comparable when the underlying audience base and unit (GRP on total population vs TRP on a specific target, 30" vs other spot lengths) are the same, so always state the base before comparing.