August 23, 2016 – MediaPost – Is it really still true, in the age of digital, that if you blast enough eyeballs with an ad for a fast-food burger, you’ll sell more beef?
The answer to that question is a qualified yes, but the size of the asterisk grows bigger by the day. On the one hand, Gross Ratings Points formulas have been the bedrock of advertising for decades. They play a big role in the media mix models advertisers see as crucial for understanding omnichannel performance.
Conversely, the GRP model is breaking, thanks to the Internet and mobile and trends like cord cutting and media fragmentation. Once, advertisers could comfortably rely on the GRP—spend enough to max out reach and frequency and inevitably the needle will move.
Today, however, that spend doesn’t deliver the same bang for the buck. Although we collectively acknowledge this shift, all advertisers can really do is lament that things aren’t what they used to be.
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