Reference library · TV budgeting
Net CPP (Post-Discount Cost Per Point)
Net CPP is the cost per gross rating point after every seller discount, rebate, and negotiated reduction has been subtracted from the gross rate card cost. It is what the buyer actually pays per GRP, not what the rate card lists, and it is the number used to compare offers between sellers or media types.
Formula
Worked example
A national TV package is quoted at a gross cost of €60,000 for 300 GRPs, with a negotiated seller discount of 35%. Net Cost = €60,000 x (1 - 0.35) = €39,000. Net CPP = €39,000 / 300 = €130. Against a competing seller quoting a gross CPP of €150 but only a 15% discount (net CPP = €127.50), the second seller is actually cheaper despite the higher headline rate.
How it is used
Buyers use net CPP to rank competing proposals and to check that an invoice matches the discount rate agreed at negotiation, since sellers sometimes apply the discount to a different cost base than the one quoted. It is also the figure used to benchmark actual campaign efficiency against plan once final delivered GRPs are known. The recurring mistake is comparing gross CPP across sellers or channels, which ranks the seller with the flashiest headline discount above the one with the lowest real cost.
The common mistake
Compare net CPP, not gross CPP, when ranking sellers, since discount size alone says nothing about the final price paid per point.