When building a media plan, why are CPMs and/or CPTs really important information?

When building a media plan, why are CPMs and/or CPTs really important information?

• A. They relate to the budget and how many TARPs or thousands of your target audience you can afford.
• B. They outline the ratio of 30 and 15 second TVC's.
• C. They relate to the Peak vs Off Peak ratio you can afford.
• D. They will ensure you can achieve your 3+ reach objective.

Answer: (A)

CPMs and CPTs are cost-per-impression metrics that connect what you spend to how many people you can reach in your defined audience. When you’re building a media plan, you have a fixed budget and a target audience with a desired level of reach and frequency. CPM tells you the price to reach 1,000 people in that target, so you can estimate how many impressions you can buy with your budget. From that, you can gauge how many TARPs you can deliver—target reach expressed in rating points. This makes it possible to compare channels and formats on a like-for-like basis and see how much audience exposure your plan can achieve within the budget. They don’t, by themselves, dictate ad lengths, scheduling, or guarantee a specific reach; they are the essential budgeting and sizing tools for the plan.

CPMs and CPTs are cost-per-impression metrics that connect what you spend to how many people you can reach in your defined audience. When you’re building a media plan, you have a fixed budget and a target audience with a desired level of reach and frequency. CPM tells you the price to reach 1,000 people in that target, so you can estimate how many impressions you can buy with your budget. From that, you can gauge how many TARPs you can deliver—target reach expressed in rating points. This makes it possible to compare channels and formats on a like-for-like basis and see how much audience exposure your plan can achieve within the budget. They don’t, by themselves, dictate ad lengths, scheduling, or guarantee a specific reach; they are the essential budgeting and sizing tools for the plan.