# Cost per point

## What is Cost Per Point?

Cost per point (CPP) is a metric used to calculate the cost associated with reaching a single audience member. It is a useful metric for advertisers to measure the effectiveness of their campaigns and compare different approaches. CPP is calculated by dividing the total cost of a campaign by the number of people reached.

## Examples of Cost Per Point

CPP can be used to measure the cost effectiveness of different advertising channels. Here are some examples of how CPP can be used:

• A TV commercial costs \$500,000 to air and reaches 500,000 people. The CPP for that commercial is \$1.00 per person.
• A radio ad costs \$50,000 to air and reaches 10,000 people. The CPP for that ad is \$5.00 per person.
• A digital ad campaign costs \$10,000 to run and reaches 10,000 people. The CPP for that campaign is \$1.00 per person.

## Benefits of Cost Per Point

CPP is a great metric for advertisers to measure the performance of their campaigns. It gives them an indication of the cost effectiveness of different approaches and helps them compare different channels. Additionally, CPP can be used to adjust campaigns to ensure they are reaching the right audience at the right price.

## Conclusion

Cost per point is a useful metric for advertisers to measure the effectiveness of their campaigns. It can be used to compare different channels and adjust campaigns to ensure they are reaching the right audience at the right price.