8 Measuring the Effectiveness of the Promotional Program Chapter Objectives • To understand reasons for measuring promotional program effectiveness. • To know the various measures used in assessing promotional program effectiveness. • To evaluate alternative methods for measuring promotional program effectiveness. • To understand the requirements of proper effectiveness research. © 2005 McGraw-Hill Ryerson Limited Measuring Advertising Effects SALES? Product Quality Promotion Competition SALES The Economy © 2005 McGraw-Hill Ryerson Limited Price Policy Distribution For and Against Measuring Effectiveness Reasons to Measure Reasons Not to Measure Avoid Costly Mistakes Cost of Measurement Evaluate Strategies Problems With Research Increase Efficiency of Advertising in General Disagreement About What to Test Determine If Objectives Are Achieved Creative Objections © 2005 McGraw-Hill Ryerson Limited Measuring Advertising Effects • PRETESTING – Concept tests – Rough testing • COMMERCIAL TESTING – Consumer juries – Physiological measures – Theatre tests • MARKET TESTING – on-air (split run cable) tests – Recall and Recognition tests (day after) © 2005 McGraw-Hill Ryerson Limited The Testing Process 1.Concept Testing 2.Rough Testing Occurs at Various Stages 3.Finished Art or Commercial Testing 4.Market Testing (Posttesting) © 2005 McGraw-Hill Ryerson Limited 8 Concept Testing Concept Generation and Testing Objective Explores Consumers’ Responses to Ad Concepts Expressed in Words, Pictures, or Symbols Alternatives Are Exposed to Consumers Who Match the 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 Evaluating and Comparing Alternative Concepts © 2005 McGraw-Hill Ryerson Limited Research House (Canada) © 2005 McGraw-Hill Ryerson Limited Concept Testing • Limitations: – Sample sizes are small (not quantifiable) – Consumers become instant “experts” – Members may not represent the target market – Results may seem definitive than they are • Company example © 2005 McGraw-Hill Ryerson Limited 8 Commercial Testing Rough Art, Copy, and Commercial Testing Comprehension and Reaction Tests Consumer Juries Advantages Disadvantages Control Consumer May Become a Self-appointed 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 Ads Types May Overshadow Objectivity © 2005 McGraw-Hill Ryerson Limited Consumer Juries Potential viewers evaluate ads • 50 to 100 participants • Overall reaction to each ad • And rank ordering of ads • Examples of questions: 1. Which ads would you most likely read? 2. Which headlines interests you the most? 3. Which ad convinces you of the product’s quality? 4. Which ad did you like best? 5. Which ad did you find most interesting? • Company example © 2005 McGraw-Hill Ryerson Limited © 2005 McGraw-Hill Ryerson Limited Starch Test Used for print Ads • Asses what people saw • Measures what they remember • Used to compare ads © 2005 McGraw-Hill Ryerson Limited © 2005 McGraw-Hill Ryerson Limited Physiological Tests of Finished Ads 1. Pupil dilation 2. Galvanic skin response 3. Eye tracking 4. Brain waves © 2005 McGraw-Hill Ryerson Limited Pupil Dilation Size of Subjects pupils are measured – Action Dilation – Disinterest Constriction Male Female Nude Female Nude Male © 2005 McGraw-Hill Ryerson Limited Nude Infant Pupil Dilation - Camera © 2005 McGraw-Hill Ryerson Limited Galvanic Skin Response Measures sweating • GSR responds to: • feelings • attention • may indicate: • long-term recall • effectiveness © 2005 McGraw-Hill Ryerson Limited GSR Devices © 2005 McGraw-Hill Ryerson Limited Brain wave activity (EEG) Measures brain wave activity 1. Alpha activity is bad • Associated with Inactivity, resting & sleeping • So: avoid ads with high alpha 2. Hemispheric lateralization • Distinguishes between activity in the different hemispheres of the brain Tells you what people are attending to © 2005 McGraw-Hill Ryerson Limited Cap © 2005 McGraw-Hill Ryerson Limited © 2005 McGraw-Hill Ryerson Limited © 2005 McGraw-Hill Ryerson Limited © 2005 McGraw-Hill Ryerson Limited © 2005 McGraw-Hill Ryerson Limited Eye Movements Measures what is looked at • Method •Eye camera and advanced electronics • Output: – Eye movements tell what is seen –And what will be… •comprehended •recalled © 2005 McGraw-Hill Ryerson Limited Device © 2005 McGraw-Hill Ryerson Limited © 2005 McGraw-Hill Ryerson Limited © 2005 McGraw-Hill Ryerson Limited Theater tests – Product preferences – Interest in the commercial – Reactions (an adjective checklist) – Recall of particular aspects – Interest in the brand – Continuous (frame-by-frame) reactions © 2005 McGraw-Hill Ryerson Limited Theater Test © 2005 McGraw-Hill Ryerson Limited Theater Test – Continuous Reaction Measures 1000 Composite 48 900 676 8 800 700 600 500 400 300 200 100 Scores by Total Sample 0 0 2 4 6 8 10 12 14 16 © 2005 McGraw-Hill Ryerson Limited 18 20 22 Theater Test – Recall Measures © 2005 McGraw-Hill Ryerson Limited 8 Market (Post) Tests Broadcast Tests • On-air tests – TV programs in specific markets – Day-after recall • Split Cable studies – Ad run in one area, but not another – One ad in one area, different ad in the other – Day after recall – SALES © 2005 McGraw-Hill Ryerson Limited 1. Please look over these pictures and words from a TV commercial. (Announcer) Remember Jared from Name? Turns out he has inspired a lot of people. (Singer) …You’re still looking good. He’ll show you the way. His name is Jared, and he’ll lead you to Name. 2. Do you remember seeing that commercial on TV? Yes No Not sure 3. How interested are you in what that TV commercial is trying to tell you or show you about what's being advertised? Very interested Somewhat interested Not interested 4. How does it make you feel about what's being advertised? Good OK Bad Not sure 5. Please check any of the following if you feel they describe that commercial. Amusing Appealing Familiar Fast moving Pointless Seen a lot © 2005 McGraw-Hill Ryerson Limited Summary • 4 Basic Types of Ad Research: – Concept tests – Pilot tests – Post tests • Each has it’s own use – Use the one appropriate for what you want to know © 2005 McGraw-Hill Ryerson Limited Quote of the day Advertising people who ignore research are as dangerous as generals who ignore decodes of enemy signals. • David Ogilvy (Ogilvy & Mather) © 2005 McGraw-Hill Ryerson Limited