Active GRP competes with TV advertising

Posted on April 23, 2012

 

A new system has been announced by Google which will measure the audience of online advertisements. The system has been introduced to encourage a higher investment in online ads from large companies.

Active GRP was announced in a blog post by the vice president of Google Neal Mohan, who believes that the main factor in purchasing advertising space is the audience size. TV advertising has benefited from the Gross Ratings Points system and Mohan is hoping that a modified version of the system will be beneficial to the sale of online ad space. The GRP system forecasts the potential audience size during TV adverts. Google will utilise user information which is anonymous and has an opt out clause, along with panel data to adapt the GRP system to online advertising.

The introduction of the new system will enable greater accuracy for brand owners who have experienced the TV model and are therefore familiar with the concept. Mohan said:

“The only problem is a very old and well-known one: the standardised metrics today are largely clicks, user interaction rates and conversions. Active GRP will enable real-time decision making, allowing advertisers to make adjustments to their campaigns at the speed of the web.”

Experts in the field believe that a number of brand owners who allocate most of their marketing budget to TV adverts will now allocate more investment to online ads using the GRP system. As Google is at the forefront of a number of changes on the web, providing instant data for users, the company also features as an integral component in any SEO campaign, for companies in large cities like Liverpool, to companies based in smaller suburban areas.

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