ABS-CBN Chairman Eugenio Lopez 3rd said the station would implement in May this year the cost per individual rating point or CPIRP pricing model, which is a fair way of charging advertisers.
“Traditional media buying practice in the Philippines is one where we apply a fixed cost regardless of the program performance,” Lopez said during the Media Specialists Association of the Philippines (MSAP) 2015 Media Congress.
“Now, that will change with the CPIRP or cost per individual rating point scheme. It is based on the globally accepted and proven CTARP model,” Lopez said.
While CTARP refers to cost per target audience rating point, CPIRP defines the cost per individual rating point. Advertisers can set their budgets according to the set rates and how many eyeballs are reached by their ads.
Similar to websites, the number of unique visitors, their location, device used, page views, and time spent on each page can be measured accurately. CPIRP will do the same for TV advertising.
Lopez said the precise measurement of audience and consumption is the trademark of this digital age and ABS-CBN is the first TV network to use this a pricing model.
He said CPIRP rates may vary each day based on the actual number of people reached by a TV show.
“We believe that precise measurement is the new norm in ensuring fairness, transparency, and accountability. You pay for what you get,” Lopez said.
“If we fail to deliver, the advertiser saves his money. But when we hit the top of the chart, everybody wins. The advertiser gets the exposure he desires, the viewer gets to enjoy the shows that give them real delight,” he said.
The new scheme will impel ABS-CBN to hit the highest possible rating points per time slot at all times and this will be seen in the launching of the network’s Tvplus, ABS-CBN mobile and iWant TV.
“It is only by doing things differently can we serve our evolving, demanding global Filipino consumer,” he said.