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Evaluation of Effectiveness
Advertising Principles and Practices
Outstanding in the FieldOutstanding in the Field
\
• New Holland had to reinvent and reintroduce its tractor brand with sliding market share, a shrinking market, and limited budget.
• The campaign positioned New Holland as the better choice of an empowered consumer, and drove traffic to its Web site.
• Sales grew by 9%, market share by 21% and 36% for low and high horsepower categories, Web site visits were 68,000 over the campaign period.
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Types of EvaluationTypes of Evaluation
• Testing—to predict results– Sample ads are tested before they run.
• Monitoring—to track performance– Performance is tracked to see if anything needs
to be changed.
• Measurement—to evaluate the results– The results, or actual effects, are measured after
the campaign runs.
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Stages of EvaluationStages of Evaluation
1. Developmental research• Pretesting to see if an idea will work, or another is
better
2. Concurrent research• Tracking studies and test marketing to see how
campaign is unfolding and how messages and media are working
3. Posttesting research• Comparing the impact of campaign after it’s over
against a benchmark, baseline, or other starting point
4. Diagnostic research• Taking apart an ad to see what elements are working
and which aren’t; examine frame by frame or piece by piece
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Facets: Measuring ResponsesFacets: Measuring Responses• It’s difficult to measure advertising’s effect on sales:
– Other factors affect sales (e.g., pricing, distribution, competition), making it hard to isolate impact.
– Effects are delayed; it’s hard to link sales to advertising.
• Communication effects an be measured as surrogate measures for sales impact: – Awareness of the advertising, purchase intention,
preference, liking.
Principle: Good evaluation plans, as well as effective
promotional work, are guided by a model of how people respond to advertising.
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Effect
PerceptionAwareness/Noticed
Attention
Recognition(Aided )Relevance
Emotion
Liking/Disliking
DesireCognitionInterest
Comprehension/Confusion
Recall (Unaided)
Brand Recall/LinkageDifferentiation
Table 19:1 Effectiveness Research Questions
Research Questions
What ads do you remember seeing? Which ads were noted?What caught your attention?Did the ad stand out among the other ads and content around it?What stood out in the ad?Have you seen this ad/this campaign?Sort elements into piles of remember/don’t remember.How important is the product message to you? Does it speak to your interest and aspirations?What emotions did the ad stimulate?How did it make you feel?Do you like this brand? This story? The characters (and other ad elements)?What did you like or dislike about the brand? The ad?Do you want this product or brand?
Did you read/watch most of it? How much?Did it engage your interest or curiosity? Where did your interest shift away from the ad? What thoughts came to you? Do you understand how it works? Is there anything in the ad you don’t understand? Do the claims/product attributes/benefits make sense? Do you have a need for this brand or can it fulfill a need for you?What happened in the commercial? What is the main message? What is the point of the ad?What brand is being advertised in the ad? (In open-ended responses, was the brand named?)What’s the difference between Brand X and Y?
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Effect
PersuasionAttitude
Preference
Intention
Argument/CounterArgument
Believability/Conviction
TrustAssociation
Personality/Image
Self Identification
Table 19:1 Effectiveness Research Questions
Research Questions
Do you have a favorable or unfavorable opinion of the brand? The ad?How excellent or weak is the brand? The ad? Do you respect it?In Category X (or product set), which brand would you choose? (Usually a pre- or posttest question)What brand do you prefer?Do you want to try or buy this product/brand? Would you put It on your shopping list? What are your reasons for buying it? Or for not buying it–or its competing brand(s)? How does it compare to competitor’s brands?Do you argue back to the ad?Do you believe the reasons, claims, or proof statements?Are you convinced the message is true? The brand is best? Do you have confidence in the brand?When you think of this brand, what (products, qualities, attributes, people, lifestyles, etc.) do you connect with it?Do you link this brand to positive experiences? What is the personality of the brand? Of whom does it remind you? Do you like this person/brand personality?What is the brand image? What does it symbolize or stand for? Can you see yourself or your friends using this brand? Do you connect personally with the brand image?
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Copy TestingCopy Testing
• Companies that conduct research and perform diagnostic methods to identify an ad’s strong and weak points: – Ameritest– ARS– Diagnostic Research– IPSOS-ASI– Mapes & Ross– Millward Brown– RoperASW
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Message Development ResearchMessage Development Research• Concept Testing
– Compares the effectiveness of various message strategies and their creative ideas (the big idea).
• Pre-testing– Helps marketers make final go/no-go decisions about
finished/nearly finished ads using photoboards or animatics.
• Diagnostics– Designed to diagnose strengths and weaknesses of
ideas to improve work still in development or to learn more in order to improve subsequent advertisements.
Principle: Advertising effects are too complicated to be
reduced to a single score.
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During Execution: During Execution: Concurrent TestingConcurrent Testing
• Coincidental Surveys– In broadcast media, random calls to target market determine stations choices,
ads they’ve seen/heard, brand perceptions
• Tracking Studies – Every 3 to 6 months, measure top-of-mind brand awareness– Brand tracking tracks the performance of the brand
• Test Markets– Evaluate product variations, campaign or media elements– Generally, two or more markets with markets as controls
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Posttesting: Posttesting: After Execution ResearchAfter Execution Research
• Breakthrough: Attention—interest, enjoyability, liking• Engagement Tests—eye-tracking as readers scan ads• Memory Tests—recognition test, recall tests, unaided
recall, aided recall• Emotion Test—MRI measures brain activity• Likeability Tests—relevant, important, enjoyable,
entertaining, fun• Persuasion Tests—intention to buy, motivation, • Inquiry Tests—measures number of responses to an ad• Scanner Research—tally up purchase and collect
consumer buying info• Single-Source Research—advertising and brand
purchase data come from the same households, linking advertising to sales
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Media EvaluationMedia Evaluation• Evaluating Audience Exposure
– How did each media vehicle perform? – Do outdoor, traffic counts equal exposure?– For Web/Internet advertising, what is measured and how does it
compare to traditional media: hits, click-throughs, minutes spent?• Advertising ROI and Media Efficiency
– Return on investment – Wearout – Media optimization
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Key Message SurrogateEffects Measures Communication Tools
Perception Exposure Adv Media; PR, PoP
Attention Adv; Sales Promo, Packaging; PoP
Interest Adv; SP; PR, Direct; PoP
Relevance Adv; PR; Direct; PoP
Recognition Adv; PR, Pkging; PoP, Specialties
Cognitive Understanding Adv; PR; Sales; Direct
Recall Adv; SP; PR, PoP, Specialties
Adv; PR; Pkging
Affective Emotions & Liking Adv; Sales Promo, Pkging; PoP
Appeals Adv; PR; Sales; Events/Spnsrshps
Resonate Adv; PR; Events/Spnsrshps
Persuasion Attitudes Adv; PR; Direct Preference/Intention Adv; PR; Sales; Sales Promo
Credibility PR
Conviction PR; Sales; Direct
Motivation Adv; PR; Sales; Sales Promo
Brand Assoc Brand Image Adv; PR, Events/ Spnsrshps
Action Trial SP; Sales; Direct, PoP
Purchase SP; Sales; Direct Repeat Purchase Adv; SP; Sales; Direct, Specialties
Table 19:2 Message Effectiveness Factors
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Direct ResponseDirect Response
• The objective is to generate an immediate behavior response (transaction, buy).
• Use toll-free numbers, mail-in coupons, Web site or email address, an offer in the copy.
• Response is easy to measure in terms of effectiveness and ROI.– Total responses divided by
total mailed = Response per thousand (RPM)
A Sales A Sales Promotion Promotion Breakeven Breakeven AnalysisAnalysis
At the breakeven point, where 30,000 premiums are delivered at a cost of $45,000, the sales revenues exactly cover, but do not exceed, total costs. Below and to the left of the breakeven point (in the portion of the diagram marked off by dashed lines) the promotion operates at a loss. Above and to the right of the breakeven point, as more premiums are sold and sales revenues climb, the promotion makes a profit.
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Public RelationsPublic Relations
• Measure the success in getting out the message in terms of output and outcomes– Output: materials produced and distributed);
how many press releases ran
– Input: acceptance and impact of materials; changes in public opinion
• Content analysis: Was coverage favorable?• Public opinion studies: Have attitudes,
behaviors, or knowledge changed?
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Web Site Evaluation Web Site Evaluation
• Traffic volume– Page views– Site visitors
• Click-through rates– Ads sold as pay-per
click
• Cost per lead– An attempt to measure
ROI using a conversion rate (percent of visitors who complete desired action)
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Special Advertising Situations Special Advertising Situations
• Retail advertising
• B2B advertising
• International advertising
• Objective: Generate store traffic– Simple counts of people at
promotions and events
• Objective: Visibility – Participation counts at
events, or “how-to” classes
– Sign-up and fill-out forms
• Objective: Loyalty– Participation in frequency
clubs or loyalty programs
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Special Advertising Situations Special Advertising Situations
• Retail advertising
• B2B advertising
• International advertising
• Objective: Generate response/sales leads– Lead count based on calls,
emails, and cards returned to the advertiser
• Objective: Conversion rates—number of leads who make a purchase
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Special Advertising Situations Special Advertising Situations
• Retail advertising
• B2B advertising
• International advertising
• Difficult to evaluate because of the number of markets, distance, cost, and variety of cultures
• Evaluation should focus initially on pretesting to help correct big problems (due to unfamiliarity with the culture, language or consumer behavior) before they occur
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Campaign Evaluation Campaign Evaluation • It’s difficult to evaluate and
estimate the impact of synergy.• Brand tracking can measure
campaign effectiveness by adding and taking away ingredients, and studying the effects of those changes.
• The challenge: look at the big picture rather than individual pieces and parts.
• Advertisers seek an evaluation method that brings all the individual metrics together to efficiently and effectively evaluate and predict communication effectiveness.
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mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall