How to Measure Cost Per Point (CPP) in Out-of-Home Campaigns

Cost Per Point (CPP) is a measurement which helps you to assess the cost efficiency of an advertisement campaign. For Out-of-Home media planners considering how best to use their advertising budget, focusing on Cost Per Point and measuring it accurately is important.

There are many media advertising formats out there today, including traditional ones such as radio and television, and more modern ones like Digital Out-of-Home campaigns with dynamic digital advertising screens that engage audiences in outdoor spaces. 

Trying to decide which media advertising format will be most cost-effective and provide you with the best results? You can compare Cost Per Point statistics across different media formats to help you make your decision. 

Here at Drovo Media, we are transforming the OOH advertising space with our on-vehicle digital advertising screens that offer advertisers granular targeting and use the latest programmatic advertising technology.

What better way to attract audiences’ attention in busy urban spaces than standing out from the crowd with our mobile digital screens that move with your audience?

Being in the OOH advertising space, we get the vital budget and cost-efficiency calculations advertising planners have to make. With this in mind, we decided to come up with this guide on how to measure Cost Per Point in Out-of-Home campaigns. 

Carry on reading to learn all about measuring Cost Per Point in Out-of-Home advertising campaigns. 

How to Calculate Cost Per Point

First things first, let’s look at the calculation behind measuring Cost Per Point in OOH campaigns. 

For OOH campaigns, you calculate Cost Per Point by dividing the Gross Media Cost by reach multiplied by frequency. In other words, the overall cost of the Out-of-Home ad placement is divided by the number of people that see your ad (impressions) x how many different times the ad is seen.

Cost Per Point = Gross OOH Media Cost  ⁄  Audience Reach ✖ Frequency (Gross Rating Points)

So, provided the cost of placing the ad isn’t astronomically high, an OOH campaign with high reach and frequency will be cost-effective and have a lower Cost Per Point. 

At Drovo Media, we provide the solution to maximising the reach and frequency of your Out-of-Home campaigns with our on-vehicle campaigns that circulate around major densely populated UK cities bearing your brand’s ad.

What better way to optimise your campaigns and have an impact on more people than collaborating with us, the UK’s largest network of carbon-neutral transit media vehicles? 

What’s more, you will receive real-time data on the impressions of your OOH on-vehicle advertising campaigns in Drovo campaigns thanks to our live vehicle tracking dashboard. 

Tired of not having enough transparency over your OOH and not being able to monitor their progress in real-time? Check out the explanation of how our live dashboard works below to learn how it simplifies the tracking of OOH campaigns 

What is Gross Media Cost? 

You have seen us refer to gross media cost when measuring Cost Per Point, but what is it? Gross media cost in advertising refers to the total amount spent on advertising or media. Gross media costs include agency commission and exclude any additional service fees. 

As you can see in the photo below, the CPM impressions measurement for a recent campaign we did in collaboration with Deliveroo at Drovo was as low as £0.106 CPM! A much more affordable cost per thousand impressions than you would get with digital advertisements such as Google ads or social media advertisements. 

Looking to reduce your gross media cost for your Out-of-Home campaigns? The transit media service we offer at Drovo fortunately does a stellar job of slashing your media costs and bringing down your cost per 1000 impressions (CPM). 

What Is a Gross Rating Point? 

GRP is a metric that helps you figure out how many in the intended target population were exposed to an ad. In the case of Out-of-Home advertisements, you work this out by multiplying the reach x frequency. 

Why Is GRP an Important Metric for OOH Ad Buying?

GRP is an important metric for Out-of-Home ad buyers because it lets you know how many of those in your target audience group are seeing your ads. 

The ability to connect with your target audience multiple times with your brand’s OOH ads is powerful since it reinforces their familiarity and awareness with your brand.

Research shows that consumers who saw an advertisement 10 or more times had greater purchasing intentions than consumers with less exposure. 

At Drovo, not only can we use the latest technology to make sure your frequency levels are high and that your ads get seen by your target audience multiple times in specific areas, for example, a postcode within a borough of London, but we also ensure your OOH ads go the extra step. 

What do we mean by this? Well, people spend a lot of time on their phones browsing the internet these days, and we are bridging the gap between offline OOH advertising and digital advertising by harnessing shadowfencing technology. 

Drovo’s shadowfencing feature and retargeting algorithm delivers a complementary display ad to the consumer’s device as the branded vehicle passes by in immediate proximity. 

Does this sound appealing? Make sure you get in contact with our team of Out-of-Home campaign specialists. 

Use Cost Per Point to Inform Your OOH Advertising Strategy

You’ve got your Cost Per Point estimations in front of you, now what do you do? Well, you use this data to inform your OOH advertising strategy and help you decide which OOH media formats will provide you with the best results for the best possible value. 

Whereas traditional billboard advertising is static, car billboard advertising helps you skyrocket on-street impressions and bring down the Cost per Point by moving with urban audiences and displaying your OOH ads in places consumers may not expect to see them.