Although the world has come a long way in going digital, Television advertising still plays a significant role when it comes to marketing products and services. However, unlike digital advertising, you will have to spend quite a bit if you want to run your advertisements on the television.
When you are spending thousands on running your television advertisements, you would also want to increase their effectiveness. This is where it becomes important to consider the TRPs and GRPs.
Television Rating Point
TRP or Television Rating Point refers to a percentage of audience that views a certain television program or watches television during a certain time slot. TRP is calculated in two different ways – the diary method and the peoplemeter system. In the Diary method, only a simple headcount is considered while calculating the TRP of a certain program. For instance, if 10 people watch a certain program that runs on television for 30 minutes, the TRP of that program would be taken as 10, irrespective of the time that they spend watching the program.
The Peoplemeter system calculates TRP by measuring the time spent in watching the television program. In short it goes by the time slot. Let us consider 10 people who have watched a certain TV program that runs for 30 minutes,
The TRP as per the peoplemeter system would be calculated as :
Of the two methods, the people meter system seems to be a better way of calculating the TRP since it clearly takes into account, the quality of viewership. The main purpose of identifying the TRPs of different Television programs is to find out which is the most-viewed TV program. This can help advertisers in choosing the right channels and time-slots for running their ads so as to maximize their visibility on television. Once you have aired your advertisements, you will also want to know if all those efforts were worth the money. This is where GRPs can help. for eg: TRP = ((10/30 + 5/30 + 6/30 + 24/30)*100)/10 = 15
Gross Rating Points
GRPs refer to Gross Rating Points that determine how many people actually saw your ads. It is calculated by multiplying the reach of your ad with its frequency. For instance, let us say you are advertising a new product and you are targeting women between 18 and 49 years of age. Now, let us say 40% of this group watches a TV program called ‘Ye Hain Mohabbatein’ that is aired on Star Plus between 7:30 and 8:30 PM. During this time slot you may have run your advertisement 3 times. So your GRP would be: GRP = 40 x 3 = 120
Rather than the number of people watching the ads, GRP calculates the number of impressions an ad creates. It is therefore one of the major metrics used to plan and measure media planning. As an advertiser it is very important that you make your decisions keeping such metrics in mind. When it comes to television advertising, TRP can help in planning your advertising campaigns. Nevertheless, it is GRP that will let you know the effectiveness of such media planning.
Different b/w Target Rating Point & Gross Rating Point
TRP measures the impact on the target audience while GRP denotes the total audience. For example, if you buy 100 GRP’s for a television spot, but you are aware that only 50% of that audience is actually your target audience, then you would consider your TRP as 50 to calculate your net effective buy.
Advantages of TRP
- TRP of a channel help companies target the audience based on the popularity and evaluate their ROI.
- It enables broadcasting companies to charge higher values from advertisers when there are shows with higher ratings.
Limitations of TRP
- The panel can be infiltrated or tampered by bribing viewers or cable
operators or tampering with the selection of panel. - If the sample size is very small, e.g. for English News channels, the
manipulation becomes easier as even manipulating a few homes will change
the TRP. - There is an absence of any specific law through which the agents/suspects
involved in panel tampering/infiltration could be penalised. - About 70% of the revenue for television channels comes from advertising and
only 30% from the subscription. Dependence on advertisements for
revenue is leading to broadcasting content which suits the advertisers.
FAQs
What documents are typically required for TRP agency registration in India?
Commonly required documents include a detailed description of the agency’s audience measurement methodologies, information about the infrastructure used for data collection and analysis, financial statements, and any other documents specified by the regulatory authority.
How do I register a TRP agency in India?
The process typically involves submitting an application to the regulatory authority responsible for media and broadcasting, such as the Telecom Regulatory Authority of India (TRAI). The application must include detailed information about the agency’s methodologies, infrastructure, and compliance with regulatory guidelines.
Who needs to register a TRP agency in India?
Any agency intending to conduct television audience measurement and provide TRP data to broadcasters, advertisers, and regulatory authorities needs to register as a TRP agency in India.
Practice area's of B K Goyal & Co LLP
Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online
Company Registration Services in major cities of India
Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow
Complete CA Services
RERA Services
Most read resources
tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password | internal audit applicability | preliminiary expenses | mAadhar | e shram card | 194r | ec tamilnadu | 194a of income tax act | 80ddb | aaple sarkar portal | epf activation | scrap business | brsr | section 135 of companies act 2013 | depreciation on computer | section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013 | rtps | patta chitta