Advertising Effectiveness

Measuring The Effectiveness of Advertisement

Objectives

• To understand reasons for measuring promotional program effectiveness

• To know the various measures used in assessing promotional program effectiveness

Objectives

• To evaluate alternative methods for measuring promotional program effectiveness

• To understand the requirements of proper effectiveness research

The Measuring Advertising Effectiveness Debate

• Reasons for measuring advertising effectiveness

• Reasons for not measuring advertising effectiveness

Reasons for Measuring Advertising Effectiveness

1. Avoiding costly mistakes

– Understanding how well money is being spent– Opportunity loss due to poor communications– Measuring the effectiveness of poor communications

Reasons for Measuring Advertising Effectiveness

2. Evaluating alternative strategies– Which strategy is most effective

3. Increasing the efficiency of advertising in general– Problem with losing sight of the message and expecting

the audience to understand

Reasons for Not Measuring Advertising Effectiveness

1. Cost• Timing• Proper spending to gain increased exposure on the

right message

2. Research problems• Isolating the effects of promotional elements

Reasons for Not Measuring Advertising Effectiveness

3. Disagreement on what to test• Different objectives for stages in PLC, industry and

different people in the firm

4. The objections of creative• The more creative an ad, the more successful• Testing impairs creativity

Decisions for Measuring Advertising Effectiveness

• What to test

• When to test

• Where to test

What to Test

• Creative decisions– The creative theme/idea can be tested– To see the reaction and different message appeals of

the target audience– Reinforcing the brand position in the target’s mind– Using a variety of creative tools

What to Test

• Media decisions

– Using research to determine the most effective media vehicle

– Vehicle option source effect• People perceive ads differently depending on their context

What to Test

• Budgeting decisions

– Examining the effect of budget size on advertising– Sales are not an indicator of effectiveness because

they ignore the other elements of the marketing mix

When to Test

• Pretest

– Taken before the campaign is implemented– Can occur at any time from idea generation to final

implementation– Feedback is relatively inexpensive with pretesting– Potential that message may not be communicated as

effectively as the final product

When to Test

• Post

Designed to : • 1. Determine if the campaign is accomplishing its

predetermined objectives

• 2. Serve as input into the next period’s situational analysis

Where to Test

• Laboratory tests– Advantage is control by the researcher– Disadvantage is the lack of realism, testing bias

• Field tests– Tests of the ad or commercial under natural viewing

circumstances

Establishing a Program for Measuring Advertising Effectiveness

• Problems with current research methods

– Requiring two similar measures to ensure reliability– Tests should use the target audience to assess an ad’s

effectiveness– Consistency in reliability and validity

Types of Advertising Evaluation

• Pre testing of media,messages,markets,budgeting and scheduling

• Post testing of

media, messages,budgeting and scheduling

• Laboratory measures for pretesting which are ad-related.

• Laboratory measures for pre-testing which are product related.

• Real world measures for pre-testing which are ad related.

• Real world measures of pre and post testing which are product related.

Laboratory measures for pretesting which are ad-related.

• Consumer jury test

• Portfolio tests

• Tachistoscope

• Galvanic skin response (GSR)

• Consumer Jury Test: A testing method for advertisements that involve the comparison, ranking and evaluation of ads by consumers

• Portfolio Tests: Analysing elements of of a firms product mix to determine the optimum allocation of its resources.

• Two most common measures used in Portfolio analysis are market growth rate and relative market share.

• Tachistoscope: The viewers are presented a loga for a very short period of time, using a specific type of slide projector.

Chapter 17 : Measuring the Effectiveness of IMC

Laboratory measures for pre-testing which are product related.

• Theatre test-A captive audience collected for entertainment is administered a Questionnaire. On viewing these they are asked to fill up another Questionnaire. It assess Products, Brands & Ad theme

• Trailer Test- Redemption rate of the discount coupons in the departmental store

Real world measures for pre-testing which are ad related.

• Recognition test

• Recall tests

• Association tests

• Combination measures

Real world measures of pre and post testing which are product related.

• Pre-post tests

• Sales test

• Mini-market test

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comScore Brand Metrix ™ : Over 240 Ad Effectiveness Studies Across Multiple Industries

MediaMedia AgenciesAgencies FinancialFinancial RetailRetail TravelTravelCPG/Restaurant

CPG/RestaurantPharmaPharma AutoAutoTele/TechTele/Tech

Pre-testing Print media ads

• Order of merit test

• Paired Comparison

• Portfolio test

• Mock magazine test

• Perceptual meaning studies

• Focus group

• Direct Questioning

• Order of Merit Test

• Here the ads are ranked as per preferences by the potential prospects.

• Six ad copies can be tested with accuracy by this method, later the accuracy decreases

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• Paired Comparison• Here at a time two ad copies are compared.• It is one to one comparison amongst test ads.• The number of comparisons one is required to make

with the help of the following formula.• Number of comparisons= n(n-1)• 2• Suppose if 8 ads are being tested, the number of

comparisons would be 28

Chapter 17 : Measuring the Effectiveness of IMC

• Portfolio Test• Here some dummy ads are mixed with regular ads.• The consumer is then asked about what he has seen in

each ads.• The ad giving minimum playback is considered the best.• It is verified whether the adjudged ad is dummy or

regular.• In case it is dummy, the actual ad is improved on the

same lines.

Chapter 17 : Measuring the Effectiveness of IMC

Mock Magazine test

• Uses a real magazine

• Introduces test ads in a magazine to an experimental group to read.

• The control group is also exposed to the same magazine, but is without test ads.

• Later a recall test is conducted to assess the effectiveness of test ads.

Chapter 17 : Measuring the Effectiveness of IMC

Direct Questioning

• Either the whole ad or its different elements are tested by asking direct questions to a consumer jury, numbering 12 to several hundred individuals

Chapter 17 : Measuring the Effectiveness of IMC

Perceptual Meaning studies

• This method uses time-exposure to test the ads

• Tachistometer is an instrument that may be used in this test.

• The respondents see the ad for a pre-determined time, and then subject to a recall test- Product,Brand Illustration and the main copy.

Chapter 17 : Measuring the Effectiveness of IMC

Pre testing broadcasting ads

• In-home projection tests

• Trailer test

• Theatre test

• Live Telecast Ads

Additional Pre testing techniques

• Sales Experiments

• Direct mail test

• Physiological testing

• -Eye Movement Camera

• -Galvanometer

• -Pupilometric devices

Post testing the ads

• Penetration test

• Error in recognition measurement

• The Gallup Robinson impact test

• Recognition Vs. Aided Recall

• Triple Association Test

• Penetration Test• Here the respondents are shown the issues of

magazines they claim to have read.• They are asked to recognise the ads, asked whether they

have read them.The results are put into three categories-Noted, Seen Associated, Read Most.

• Mc Gown gives the following formula to calculate Readers per rupee:

• Readers per Rupee=Per cent noted* Magazines primary readers

• Space cost

Chapter 17 : Measuring the Effectiveness of IMC

• Error in recognition measurement• The Tachistometer method is one which improves the

accuracy of recognition claims.• Advertisements are shown to the respondent, either in

whole or part, at high speed and he is later asked to furnish further information on these ads

Chapter 17 : Measuring the Effectiveness of IMC

• Gallop Robinson impact method:

• A respondent is shown a magazine cover and is asked whether he has read the issue.

• If the answer is yes , he is asked to describe anything he remembers seeing in that issue.

Chapter 17 : Measuring the Effectiveness of IMC

• Recognition Vs. Aided Recall• In the recognition method , respondents first qualify as

readers of a particular issue.• It eliminates many persons of “Less Desirable”

characteristics from the audience,• The (PNR) :Proved name registration score in the

Gallup Robinson Impact test represents the number of verified readers of the advertisement who recall some crucial elements of the ad.

Chapter 17 : Measuring the Effectiveness of IMC

• Triple association tests:• The advertiser attempts to know consumer association

of brands with some benefits or the other.• Ex; “Which Toothpaste advertises that a superwhitening

paste and mouthwash in one?”

Chapter 17 : Measuring the Effectiveness of IMC