Financial Metrics
CPP (Cost Per Point)
The financial cost required to reach an audience equivalent to exactly one percent of the targeted demographic population in a market.
What is CPP (Cost Per Point)?
CPP is the rating-point-based cousin of CPM. Instead of cost per 1,000 impressions, it measures cost per single rating point — one percent of the targeted demographic population. If a station charges €500 for a spot that delivers a 2.0 AQH Rating in adults 25–54, the effective CPP is €250.
CPP is the historic currency of television and radio media buying in most markets, because rating points were the native measurement unit long before impressions became universal. Agencies and broadcast sellers still negotiate in CPP as often as CPM, and the two metrics answer slightly different questions: CPM asks 'how much per thousand people', CPP asks 'how much per one percent of my target audience'.
Why it matters
Used heavily by traditional agency media buyers to quickly evaluate and compare the cost-efficiency of different television and radio stations within the same city.
Related terms
- CPM (Cost Per Mille / Thousand)— The standard monetary cost associated with delivering exactly 1,000 ad impressions to an audience.
- Gross Rating Points (GRPs)— The sum of all rating points achieved for a particular commercial schedule, calculated by multiplying AQH Rating by the Number of Spots.
- CAC (Customer Acquisition Cost)— The total combined sales, operational, and marketing expenditure required to successfully win a new advertising client.
- Cost Per Acquisition (CPA)— An advertising pricing model where the advertiser pays only when a specific desired action (a sale, a click, a form fill) is completed.