How Are Gross Rating Points (GRPs) Evolving in the Media Industry?

Gross rating points, or GRPs, are standard television measurements used in ad buying and selling to ensure the delivery of an advertiser’s contract. This measurement is based on age and gender, requiring a universe estimate to calculate. How will GRPs evolve with the industry moving toward addressable advertising and audience fragmentation?

Evolving Gross Rating Points
The industry has relied on these metrics for many years, and it takes hefty investment to change systems based on long-established protocols. Lorne Brown, CEO at Operative, said in a MediaPost interview, “Agencies don’t have the capital structures necessary to dismantle their systems that are based on Nielsen audience measurement.” Yet, it is clear that people are viewing TV in very different ways than just a few years ago, so there may be room for evolved forms of measurement.
The GRP universe estimate calculation is prone to variation in a multi-platform world. “In television, the universe estimate changes every year,” noted Brad Adgate, a media consultant. “But if you move toward audience-based buying, like weekend moviegoers, the universe changes every day.” It might be possible to form agreed-upon segments and universes that change frequently, but that will take time.

It is evident that, “GRPs have to evolve,” said Mitch Oscar, a director at U.S. International Media, “because all advanced television platforms are starting to transact on impressions whether it’s optimized linear, TV everywhere,......

Read the full article on  the Videa blog.