Chapter 12 Measuring the effectiveness of the IMC program Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-1 Learning objectives 1. To understand the importance of, and reasons for and against, measuring the effectiveness of marketing communication. 2. To establish some guidelines used in measuring IMC effectiveness. 3. To evaluate alternative methods for measuring IMC effectiveness against industry-developed criteria for successful evaluation. 4. To explore the unique challenges of IMC effectiveness and current approaches to evaluation including process measures, synergy measures and ROI. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-2 Arguments for and against Process measures What to test? Importance of measurement When to test? Synergy Evaluating IMC Evaluation Measurement process Where to test? ROI New measures Concept testing How to test? Testing for campaign development Rough art & copy Pre-testing finished ads Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Marketplace testing 12-3 Singapore’s Ministry of Community Development, Youth and Sports (MCYS) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-4 Singapore’s Ministry of Community Development, Youth and Sports (MCYS) (cont.) Campaign objectives Reach, engagement and impact objectives Make 500,000 people aware of the message Generate $1 million publicity Achieve 20,000 social media interactions Create 2000–3000 fans Attitudinal and behavioural objectives To encourage people to re-think their relationships and start dating. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-5 Selected campaign results Awareness ■ Watched by more than 3.2 million people on social media in less than 25 weeks ■ Generated more than S$2.3 million of print, radio and television PR Likeability ■ 19th most favourite YouTube video in the world ■ 88th most watched YouTube video in the world ■ More than 120 000 unique visitors on Facebook Engagement ■ More than 17 million impressions on Facebook; ■ More than 17 900 fans on the Facebook page ■ More than 100 000 interactions on Facebook page Behaviour change ■ 83% felt that ‘the ad made me think more about the meaning of marriage’ ■ 64% felt that ‘after seeing the ad, I view my partner differently’ ■ 33% felt that ‘after seeing the ad, I feel like meeting more people and start [sic] dating’ Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-6 Arguments for and against Process measures What to test? Importance of measurement When to test? Synergy Evaluating IMC Evaluation Measurement process Where to test? ROI New measures Concept testing How to test? Testing for campaign development Rough art & copy Pre-testing finished ads Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Market place testing 12-7 Three phases of evaluation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-8 Importance of measurement The single biggest problem facing marketers since the invention of advertising is how to measure return on investment. Harold Mitchell, Mitchells Media, 2009 Half the money I spend on advertising is wasted; the trouble is, I don’t know which half. John Wanamaker, US retailer, c.1910 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-9 Reasons for and against measuring effectiveness For Against Avoid costly mistakes Cost of measurement Evaluate alternative strategies Research problems Increase efficiency in general Determine if objectives are achieved Disagreement on what to test Objections from creative personnel Time Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-10 Chiat/Day’s views on recall tests Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-11 Arguments for and against Process measures What to test? Importance of measurement When to test? Synergy Evaluating IMC Evaluation Measurement process Where to test? ROI New measures Concept testing How to test? Testing for campaign development Rough art & copy Pre-testing finished ads Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Market place testing 12-12 Measuring advertising effectiveness What to test • Source factors • Message variables • Media strategies • Budget decisions How to test • Testing guidelines • Appropriate tests Where to test • Laboratory tests • Field tests When to test • Pretesting • Posttesting Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-13 What to test? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-14 When to test? Pretests Measures taken before the campaign is implemented Posttests Measures taken after the ad or commercial has gone to air Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-15 When and where to test? Pretesting methods Laboratory Field Consumer juries Dummy ad vehicles Portfolio tests On-air tests Physiological measures Theatre tests Rough tests Concept tests Readability tests Comprehension and reaction tests Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-16 When and where to test? Field posttesting methods Recall tests Association measures Tracking studies Posttesting methods Recognition rests Single-source systems Inquiry tests Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-17 How to test? Positioning advertising copy testing (PACT) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-18 Arguments for and against Process measures What to test? Importance of measurement When to test? Synergy Evaluating IMC Evaluation Measurement process Where to test? ROI New measures Concept testing How to test? Testing for campaign development Rough art & copy Pre-testing finished ads Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Market place testing 12-19 Testing for campaign development 1. Concept testing Occurs at various stages of campaign development 2. Rough testing 3. Finished art or commercial testing 4. Market testing (posttesting) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-20 Concept testing Objective Explores consumers’ responses to ad concepts expressed in words, pictures or symbols. Alternatives are exposed to consumers who match the target audience. Method Reactions and evaluations are sought through focus groups, direct questioning, surveys, etc. Sample sizes depend on the number of concepts and the consensus of responses. Output Qualitative and/or quantitative data are used to evaluate and compare alternative concepts. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-21 Rough art, copy and commercial testing Comprehension and reaction tests Consumer juries Advantages Disadvantages Control Consumer may become a selfappointed expert Cost effectiveness Number of ads that can be evaluated is limited Endorsements by independent third parties A halo effect is possible Achievement of credibility Preference for ad types may overshadow objectivity Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-22 Rough testing terms Animatic rough Terms Photomatic rough Live-action rough Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-23 Online methods Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-24 Pretesting finished print ads A laboratory method Portfolio tests Includes test and control ads Portfolio test have problems Readability tests Based on syllables per 100 words Dummy advertising vehicles Distributed to random sample of homes Other factors also considered Product interest may still bias results Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-25 Dummy advertising vehicles Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-26 Pretesting finished digital ads Theatre tests On-air tests Measures changes in product preferences Insertion in TV programs in specific markets May also measure: Interest in and reaction to the commercial Reaction from an adjective checklist Recall of various aspects included Interest in the brand presented Continuous (frame-by-frame) reactions Limitations are imposed by ‘day-after recall’ Physiological measures Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-27 Physiological measures Galvanic skin response Pupil dilation Testing Brain waves Eye tracking Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-28 Physiological measures: eye movement research Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-29 Market testing print ads Inquiry tests Recognition tests Market testing: print ads Tracking studies Recall tests Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-30 Starch-scored advertisements Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-31 Market testing broadcast commercials Day-after recall tests Tracking studies Single-source tracking Persuasive measures Market testing: broadcast Diagnostics Comprehensive measures Test marketing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-32 World’s most popular posttest Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-33 Tracking studies Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-34 Tracking studies (cont.) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-35 Arguments for and against Process measures What to test? Importance of measurement When to test? Synergy Evaluating IMC Evaluation Measurement process Where to test? ROI New measures Concept testing How to test? Testing for campaign development Rough art & copy Pre-testing finished ads Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Market place testing 12-36 Measuring the effectiveness of the IMC program Alternative IMC measures Process measures Synergy The audit • Media interactions • Interactions between communications mix elements ROI • Return on brand Investment • Return on touchpoint investment New measures • Need for common media currency; metrics for social media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-37 New measures Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-38 Digital touch points Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-39 Social media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-40 Summary and conclusions Research to measure the effectiveness is important to the IMC program. Not enough companies systematically test their programs. Problems exist with current research methodologies. A variety of research methods—including pretesting and posttesting—were outlined. It is important that effectiveness measures are linked to campaign objectives. Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-41