Buying Power Index (BPI)

The Buying Power Index (BPI) is a measurement of the ability of a specific group or market to make a purchase. It is an index that is used to determine how much purchasing power the population has in a particular area.

How is BPI calculated?

The BPI is calculated by comparing the median household income of a certain area to the national median household income. If the median household income is higher than the national median, then the area has a higher buying power index. Conversely, if it is lower than the national median, then it has a lower buying power index.

Why is BPI important for marketers?

BPI is important for marketers because it helps them understand the purchasing power of a certain area. This information can help them craft marketing strategies that are tailored to the audience's ability to buy products or services. Brands can use this information to determine where they should focus their marketing efforts and where they should invest in advertising.

How can BPI data be used in Email Marketing?

Email marketing campaigns can be made more effective using BPI data because it makes it easier for marketers to target specific groups that have high purchasing power. By targeting these groups, brands can maximize their return on investment (ROI) and increase their chances of making sales.

How can BPI data be used in Digital Marketing and Ad Tech?

Digital marketing and ad tech companies can use BPI data to identify high-potential areas for advertising campaigns. This information can help them identify where their ads are likely to perform best and where they will get the highest ROI.

How can BPI data be used in Video Marketing?

Video marketing campaigns can benefit from using BPI data by targeting areas with high purchasing power. Brands can create videos that appeal specifically to these groups, increasing their chances of making sales.


  1. Marketing Metrics: The Definitive Guide to Measuring Marketing Performance by Paul W. Farris, Neil T. Bendle, Phillip E. Pfeifer, and David J. Reibstein
  2. The Art of Digital Marketing: The Definitive Guide to Creating Strategic, Targeted, and Measurable Online Campaigns by Ian Dodson
  3. Ad Tech Explained: The Basics of Advertising Technology by Dale Carr
  4. Advertising: Principles and Practice by William Wells and Sandra Moriarty
  5. Video Marketing for Dummies by Kevin Daum, Bettina Hein, Matt Scott, Andreas Goeldi
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