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Measuring exposure to advertising: A look at gross rating points

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  • Hui-Shung Chang

    (Department of Agricultural Economics and Rural Sociology, Auburn University)

  • Henry W. Kinnucan

    (Department of Agricultural Economics and Rural Sociology, Auburn University)

Abstract

This article evaluates the relative merits of advertising expenditures and gross rating points (GRPs) as alternative measures of advertising exposure. Theoretically, GRPs and appropriately deflated advertising expenditures should provide identical representations of exposure. This hypothesis was tested using Canadian butter advertising data for the period 1984-1989. Our statistical analysis suggested the level of dollar outlays for television advertising and the associated estimated GRPs are positively related; this, however, was not the case in several instances for period-to-period changes in the level of expenditures. Because the problems of measurement errors, quality variation, and aggregation over media are shared by both data series, our tentative conclusion is that in practice GRPs are not necessarily superior to expenditures. © 1992 John Wiley & Sons, Inc.

Suggested Citation

  • Hui-Shung Chang & Henry W. Kinnucan, 1992. "Measuring exposure to advertising: A look at gross rating points," Agribusiness, John Wiley & Sons, Ltd., vol. 8(5), pages 413-423.
    • Handle: RePEc:wly:agribz:v:8:y:1992:i:5:p:413-423
    DOI: 10.1002/1520-6297(199209)8:5<413::AID-AGR2720080503>3.0.CO;2-L
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    References listed on IDEAS

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    1. Henry Kinnucan & Evelyn Belleza, 1991. "Advertising Evaluation and Measurement Error: The Case of Fluid Milk in Ontario," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(2), pages 283-297, July.
    2. Marc Nerlove & Frederick V. Waugh, 1961. "Advertising without Supply Control: Some Implications of a Study of the Advertising of Oranges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 43(4_Part_I), pages 813-837.
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    Cited by:

    1. Yu Wang & Zongshuan Duan & Sherry L. Emery & Yoonsang Kim & Frank J. Chaloupka & Jidong Huang, 2021. "The Association between E-Cigarette Price and TV Advertising and the Sales of Smokeless Tobacco Products in the USA," IJERPH, MDPI, vol. 18(13), pages 1-14, June.
    2. Chanjin Chung & Harry M. Kaiser, 1999. "Measurement of advertising effectiveness using alternative measures of advertising exposure," Agribusiness, John Wiley & Sons, Ltd., vol. 15(4), pages 525-537.

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