Advertising MANAGEMENT
Lecture 10
MEASURING EFFECTIVENESS OF
ADVERTISING AND
PROMOTIONAL CAMPAIGNS
Prof Soumitra Mookherjee
1
ADVERTISING EFFECTIVENESS: BROAD
OVERVIEW
Measuring advertising effectiveness is important to assess and
understand the extent to which a specific campaign meets a
company’s objectives.
This is commonly examined by measuring the effect on sales,
brand awareness, and brand preference, among other things.
2
ADVERTISING EFFECTIVENESS: BROAD
OVERVIEW
Determining whether a campaign
promotional objectives
accomplishes its appropriate
Companies must measure how promotional programs contribute
to increased sales and profits
One of the most difficult undertakings in marketing
3
ADVERTISING EFFECTIVENESS: BROAD
OVERVIEW
Objectives Vs Measures
1. Stimulate an increase in sales
-Number
of
enquiries
- Number of enquiries converted into sales
from
advert
2. Remind customers of the existence of a product
- Test customer awareness both before and after the advertising
campaign
- Number of enquiries
4
ADVERTISING EFFECTIVENESS: BROAD
OVERVIEW
Objectives Vs Measures
3 . Inform customers
- Test customer awareness
- Number of requests for further information
4. Build a brand image
- Sales
- Test customer awareness of brand recognition, recall, brand
perception, brand identity, etc
5
ADVERTISING EFFECTIVENESS: BROAD
OVERVIEW
Objectives Vs Measures
5 . Build customer loyalty and relationship
- Levels of repeat purchase
- Levels of customer retention
6. Change customer attitudes
- Measure demographic profile of purchases
- Compare with previous data
6
Pros and Cons of Measuring Effectiveness
Advantages
Disadvantages
Avoid costly mistakes
Cost of measurement
Evaluate alternative strategies
Research problems
Increase efficiency in general
Disagreement on
what to test
Determine if objectives are
achieved
Objections of creatives
Time
Measuring Advertising Effectiveness
What to test
Where to test
• Source factors
• Laboratory tests
• Message variables
• Field tests
• Media strategies
• Budget decisions
How to test
When to test
• Testing guidelines
• Pretesting
• Appropriate tests
• Posttesting
ADVERTISING EFFECTIVENESS: WHAT TO TEST
Testing the Method: Choosing the appropriate method will have a
substantial impact on its success. Therefore, is important to
determine how well the chosen program is working and to measure
its performance against a predetermined standard. The testing process
should consider the following
a) Advertising Method (ex: Banner vs. sponsorship)
b) Subclass (ex: regular vs. content sponsorship)
c) Location (ex: Banner at the top or Sky-Scraper on the side)
d) Time (ex: pre or post product release)
e) Size (ex: Pop-up (full page) or Banner (small bar at the top of the page))
f) Vehicle Option Source Effect - e.g. perception through pop up ad or Banner
9
ADVERTISING EFFECTIVENESS: WHAT TO TEST
Testing the Content:
If the intended objective of an ad is to get consumers to try a new
product that is being launched, the marketers might test the
following:
a) If the advertisement is effective in attracting consumers
attention
b) If it is informative enough to allow the consumers to evaluate
c) Is the ad persuasive enough to convince the consumers to try
d) Is the content memorable to ensure the consumers will remember
e) If the ad content is appealing to it’s intended target market
10
ADVERTISING EFFECTIVENESS: WHAT TO TEST
Testing the Media Strategies
Examining the media options identified and the media planning for
running an advertising campaign for a specific time period
a) Type of media –Social networking, Print Media, Broadcast
Media, Visual Media, Audio, etc
b) Media Combinations
c) National Channels– most widely viewed media
d) Local Media: Language Preference
e) Billboards, Websites, Internet, etc depending on target
audience
11
ADVERTISING EFFECTIVENESS: WHAT TO TEST
Testing the Budget Decisions:
Finally, the advertisers often try to examine effects of their budget
decisions on the ad’s effectiveness. Address the following
a) Is the budget allocated for campaign appropriate for its size?
b) Will a larger budget increase sales?
c) Is the allocated budget greater than the anticipated sales?
d) Should more money be spent in enhancing the current
campaign?
12
ADVERTISING EFFECTIVENESS: WHERE TO TEST
Laboratory Testing: In a lab testing environment, participants from
the target market are brought in to be asked questions about the ad or
to evaluate their reaction towards it.
The major advantage of using this type of testing environment is the
control it providers for the researchers
The major disadvantage of using this type of testing environment is
the lack of realism. The general consensus is that when people are
brought into a lab they may scrutinize the ads much more than
they would at home – leading to biased responses.
13
ADVERTISING EFFECTIVENESS: WHERE TO TEST
Field Testing: In a field test, researchers might go out to the
participants’ homes or offices and observe their reaction to the ad. It
provides more realistic opinions of respondents as they consider
external factors, competition, etc.
The major disadvantage of field testing is the lack of control. The
participants may evaluate the ad based on factors outside the
attributes of the ad itself (their mood, feelings towards the
company, feelings about the competition, etc.).
Field testing often requires a larger investment of time and money.
14
Pretesting Methods
Laboratory
Field
Consumer Juries
Dummy Ad Vehicles
Portfolio Tests
On-air Tests
Physiological Measures
Theater Tests
Rough Tests
Concept Tests
Readability Tests
Comprehension and Reaction
Tests
Post testing Methods
Recall Tests
Association
Measures
Tracking
Studies
Methods
Single-Source
Systems
Recognition
Tests
Inquiry Tests
ADVERTISING EFFECTIVENESS: WHEN TO TEST
Pre-testing: Actions taken before campaign is executed.
Comprehension and reaction testing: The concern is whether the
ad conveys the meaning intended, and also the consumer's reaction
to the ad.
Reaction tests, Personal interviews, group interviews, and focus
groups have all been used to assess these responses. Examples of
questions asked to consumers are:
1. Which ad did you find most interesting?
2. Which of these ads would interest you the most?
3. Which layout would be most effective in causing you to buy?
17
ADVERTISING EFFECTIVENESS: WHENTO TEST
PRE TESTING
1. Portfolio tests (print) – RECALL DATA on folder of
different versions of “TEST advertisements” viewed
in many instances.
2. Readability tests (print) – Legibility, Comprehension,
Text, Short sentences, personal words and references.
E.g. conveying the Best Message using the Best of
Words and using short sentences
18
ADVERTISING EFFECTIVENESS: WHEN TO TEST
PRE TESTING
3. Dummy advertising vehicles (print) - Dummy magazines
contain regular test advertisements inserted. These pretend
magazines are distributed to a random sample of households.
Readers are encouraged to observe and later they are asked
questions about the editorial and the advertisements.
4. Theater tests (broadcast)
5. On-air tests – single source ad research – inserting
commercials into actual TV and/OR Radio Programs
in certain test markets
19
ADVERTISING EFFECTIVENESS: WHEN TO TEST
PRE TESTING
Halo effect-- sometimes participants rate an ad good on all
characteristics because they like a few and overlook specific
weaknesses. This Halo effect distorts the ratings.
Preferences for specific types of advertising may overshadow
objectivity-- Ads that involve emotions or pictures may receive
higher ratings or rankings that those employing copy, facts, or
rational criteria. The latter may be judged less favorably by
participants who prefer emotional appeals.
20
ADVERTISING EFFECTIVENESS: WHEN to test
PRE TESTING
Physiological Measures: This involves a laboratory setting in which
physiological responses are measured. They indicate the receiver’s
involuntary response - thus eliminating biases associated with
voluntary measures. This includes:
1. Pupil dilation- designed to measure dilation and constriction of
the pupils of the eyes in response to stimuli. Advertisers have used
this to evaluate product and package design as well as to test ads.
Pupil dilation suggests a stronger interest and response to an ad.
21
ADVERTISING EFFECTIVENESS: WHEN to test
2. Eye tracking- viewers are asked to view an ad while a sensor
aims a beam of light at the eye and follows the movement to show
the spot on which the viewer is focusing. This shows how long
viewer is focusing on each image and the sequence of viewing.
Key Points:
Pretesting can help companies improve their ads and save them
money before it is too late. However, many marketers skip pretesting because many believe being first in the market offers them
an advantage over competitors.
22
ADVERTISING EFFECTIVENESS: WHEN to test
POST TESTING
Post-testing: Occurs after the ad has been in the field. It is
designed to determine if the campaign is accomplishing the
objectives.
Inquiry Tests: designed to measure advertising effectiveness on the
basis of inquiries generated from ads. The inquiry may take the
form of the number of coupons returned, phone calls generated
immediately after an ad release, or direct inquiries through reader
cards.
Recognition Tests: To identify the recognition of the Brand by
the target audience – do potential buyers recognize the brand
easily
23
ADVERTISING EFFECTIVENESS: WHEN to test
POST TESTING
Recognition tests – EXAMPLE
1. Noted: % of readers of an issue who remembered seeing the
ad
2. Associated: % of readers who saw part of the ad that clearly
indicates the brand or advertiser
3. Read Most: % of readers who read 50% or more of the
material in the ad
24
ADVERTISING EFFECTIVENESS: WHEN to test
POST TESTING
Recall tests: Traditional interviews with Web users help determine
recall and whether viewers remember the ads they see.
Scores are based on percentage of respondents who can
accurately recall the ad, idea communication, and likelihood of
purchase.
25
ADVERTISING EFFECTIVENESS: WHEN to test
POST TESTING
Running split-run tests: In this case the variations of the ad appear
in different websites, targeting different audience which
examines specific elements of the ad or variations on it.
26
ADVERTISING EFFECTIVENESS: WHEN to test
POST TESTING
QUANTITATIVE METHODS
Measuring
the
effectiveness
of
the
internet
ADVERTISING is done by variety of methods, most of
which can be done electronically.
27
ADVERTISING EFFECTIVENESS: WHEN to test
POST TESTING
Hits: The number of times that a specific component of a site is
requested.
Since perhaps 5 out 6 "hits" are for graphic images, the number
of "hits" can be grossly misleading. Usually people mean by "hits"
the number of times a webpage has been seen, but to be precise, the
better term is "page views" or "page impressions."
28
ADVERTISING EFFECTIVENESS: WHEN to test
POST TESTING
Page impressions or Page views: the number of times a
webpage has been requested by the server
29
ADVERTISING EFFECTIVENESS: WHEN to test
POST TESTING
Banner views: The number of times a banner has been viewed.
Almost the same as "page views," but some banner
server programs don't count the banner view unless the visitor
stays on the page long enough for the banner to be fully
downloaded from the banner server.
30
ADVERTISING EFFECTIVENESS: WHEN to test
PACT – Positioning Advertising Copy Testing
Principles ADOPTED AND PRACTISED by the largest ad agencies
for conducting appropriate effectiveness studies
Establish communications objectives
1. Use a consumer response model
2. Use both pre and post tests
3. Use multiple measures
31