CPP from CPM

Media Planning & Buying Calculators

What is the process of finding CPP from CPM when it comes to media planning? First, let’s determine the definitions of CPP and CPM. CPP stands for Cost Per Rating Point. The American Marketing Association defines cost per rating point as: “A method of comparing the cost effectiveness of two or more alternative media vehicles in radio or television.” Cost Per Thousand (CPM) allows a media planner to compare media based on two variables: audience and cost. CPM is used as a comparative device.

The relationship between CPM from CPP is expressed in the following formula.

CPM = ((CPP x 100)/Population) / 1000

Mathematically transposed, the formula can be expressed to find CPP, given CPM and target audience population:

CPP = CPM x (population/100,000)

Comparing CPP and CPM

How does a CPP compare with a CPM for the same station and commercial? The following shows the differences:


Cost of a thirty-second commercial: $110
Metro rating at 2:00 p.m.: 8
$110/8 = $13.75


Cost of a thirty-second commercial: $110
Number of households delivered at 2:00 p.m.: 77,000
$110 x 1000/77,000 = $1.43