Sunday, February 10, 2008

CPM & CPP

CPM means "Cost per Thousand." Media planners use it in order to compare costs of different forms of advertising based on exposure (to a thousand people or homes).

Cost of 1 unit (time, page, or ad)
_______________________ x 1,000 = CPM
# of people or homes (circulation)

This year, the Super Bowl had a rating of 55.6 and a total viewership of 97,500,000. At $3,000,000 for a 30 second ad, it breaks down like this:
CPM = $30.77
CPP = $53,956

In comparison, here are the top 5 shows and their numbers:

American Idol
(Tuesdays)
CPM = $20.50
CPP = $38,011
(Wednesdays)
CPM = 22.30
CPP = $40,625

Dancing with the Stars
(Mondays)
CPM = $17.30
CPP = $26,785
(Tuesdays)
CPM = $19.17
CPP = $29,527

Desperate Housewives
CPM = $17.43
CPP = $27,731

CSI
CPM = $19.34
CPP = $30,973

Grey's Anatomy
CPM = $24.50
CPP = $37,128

What these numbers indicate is that the Super Bowl ads are way over-priced. I can see why some media planners might find it beneficial to go the Super Bowl route and create a buzz for their product or company, but in reality, it might not make that much sense according to these numbers. In every case, the Super Bowl was higher priced by quite a lot, so I would say that the Super Bowl ads are definitely not a good buy.

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