Gross Rating Points for Display Ads

- September 27, 2010

Internet advertising is growing in leaps and bounds, largely driven by innovation, but pales in comparison to TV ad spend as illustrated in the chart below.


As innovation continues to produce new products and services geared toward expanding the reach and access of the Internet, more eyeballs are available for advertisers to closely target and measure the success of their ads.  A sign-post of this continued growth is the announcement by Nielsen Company that they will be providing new data for media buyers concerning Gross Rating Points (GRP), the formula used by the TV business for decades. It is reported that the online GRP data Nielsen will offer consists of a blend of its demographic panel data with the information gathered by participating online companies, like Facebook.  Nielsen has lured Procter & Gamble to test the new data.  The data, which will vary from website to website, will consist of anonymous information such as age group, sex and location.  This should assist advertisers to better deploy and measure the success of their display advertising, which generally has a large number of impressions, with few clicks.  If an advertiser can increase their click-through rate for their display ads, they will continue to allocate more money to this channel based on the information such as GRP.

It will be interesting to see how the balance between ad spend online versus TV shifts as more and more people use the Internet for consuming media.

Comments are closed at this time.

© 2016 MoreVisibility. All rights reserved