Measuringm adv affectiveness

April 8, 2018 | Author: Anonymous | Category: N/A
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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.

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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

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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

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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

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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

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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

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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.

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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."

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ADVERTISING EFFECTIVENESS: WHEN to test POST TESTING

Page impressions or Page views: the number of times a webpage has been requested by the server

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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.

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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

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