FINAL_Measuring Effectiveness of Advertising 03

8/9/2019 FINAL_Measuring Effectiveness of Advertising 03

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Measuring Effectiveness of AdvertisingMeasuring Effectiveness of Advertising

PriyankaPriyanka SardeySardey 100100FalguniFalguni SampatSampat 9999

SmithSmith SavlaSavla 102102

PramodPramod SavekarSavekar 101101


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What is Advertising?What is Advertising?

Any paid form of non personal communication that istransmitted to consumer through mass media as

Television

Radio

Newspaper

Magazine

Direct mail

Outdoor displays.


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Types of AdvertisingTypes of Advertising

- Brand Advertising

- Interactive Advertising

- Retail Advertising

- Industrial Advertising- Direct Market Advertising

- Reminder Advertising


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Brand AdvertisingBrand Advertising


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Interactive AdvertisingInteractive Advertising


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RetailRetail AdvertisingAdvertising


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Industrial AdvertisingIndustrial Advertising


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Direct Market AdvertisingDirect Market Advertising


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Reminder Advertising:Reminder Advertising:


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5 Ms of Advertising5 Ms of Advertising

MONEY

MESSAGE

MEDIA

MEASUREMENT

MISSION


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Message DecisionsMessage Decisions

Message

Generation

Message Evaluation

&

Selection

Message Execution


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Deciding on the Media & MeasuringDeciding on the Media & Measuring

EffectivenessEffectiveness

Media selection (finding the most cost-effective media todeliver desired number & type of exposures to the target

audience)


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Deciding on reach, frequency andDeciding on reach, frequency and

impactimpact

REACH FREQUENCY IMPACT

MEDIA


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Reach (number of different persons or householdsexposed to a particular media schedule at least onceduring a specified time period) R

Frequency (number of times within the specified timeperiod that an average person or household isexposed to the message) F

Impact (Qualitative value of an exposure through agiven medium) I


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- The relation between reach, frequency and impact iscaptured in two concepts

Total number of exposures (E)

x E= R*F, this measure is referred as Gross RatingPoint GRP

Weighted number of exposures (WE)

x WE= R*F*I


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Choosing among Major MediaTypesChoosing among Major MediaTypes


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MediaTypesMediaTypes

Newspapers

Magazines

Radio

Television

Outdoor

Internet

Alternative Media

Major TypesMajor Types

ofofAdvertisingAdvertising

MediaMedia


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Measuring Effectiveness ofTelevisionMeasuring Effectiveness ofTelevision

TAM (Television Audience Measurement)

y Universe: The Total/Actual number of people in adefined target audience

y Reach: Number of individuals from the universe whoare exposed to the medium or vehicle

- Reach is normally expressed in % terms


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Calculation ofReachCalculation ofReach

Example:

Universe: 10 individuals.

For a single episode of Chhoti Maa, if out of the above

10 people 6 saw atleast 1 minute of the programme

then,

Reach:6 out of 10

Therefore, reach = 60%


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Variations of the Reach ConceptVariations of the Reach Concept

y Gross Reach

y Cumulative Reach

y Net Reach


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Gross ReachGross Reach

yGross Reach = Summation of all audiences who have been

exposed to the vehicle

Week 1 : 1000

Week 2 : 2000

Week 3 : 1500

Week 4 : 1200

Hence, Gross Reach = ?

1000+2000+1500+1200=5700


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Net ReachNet Reach

Week 1 : 1000 -- 1000

Week 2 : 2000 (300) 2700

Week 3 : 1500 (900) 3300

Week 4 : 1200 (1000) 3500

Net Reach build upDuplicationGross Reach

Cumulative Reach over 4 weeks


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Gross Rating Points (GRPs)Gross Rating Points (GRPs)

- The sum of all ratings points per spots placed in a given

schedule over a specified period of time.

- I

t is a measure the size of the audience reached by thespecific media vehicle

- GRP levels are generally measured and reported on a 4

week basis

Formula:

GRP = Reach * Frequency


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Households UsingTelevision (HUT)

% of households in a given area where T.V is being

watched during a specified time period.

People Meter

Electronics measuring device

that incorporates the technology

and records what is beingwatched and also by whom


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Channel

AvgMins

{Universe}

AvgMins

{Viewer}

Reach

OOOs

Star Plus 1056 1135 10314

Sony 739 807 10157

Zee TV 358 401 9904

Total ( Any Channel) 6910 7112 10773

Universe :11089000

Total Time:Avg. minutes ( universe) x Universe

Total Time / Reach = Average Minutes viewer.

Therefore, (1056 x 11089000)/ 10314000= 1135


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Measuring Effectiveness ofRadioMeasuring Effectiveness ofRadio

Arbitron

3 Basic estimates :-

- Person Estimates

- Rating- Share

Average Quarter-hour share (AQH SHR)

Average QuarterHour rating(AQHRTG)


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ArbitronArbitron Personal People MeterPersonal People Meter

Arbitron Personal

People Meter (PPM)PPM Base station


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Measuring Online Advertising EffectivenessMeasuring Online Advertising Effectiveness

Term Definition

Hits Number of elements requested from apage

Page viewsNumber of pages sent to the requestingsite

Visits Occasions user x interacted with sitey after z time has elapsed

Unique visitors Number of different people visiting a site

Web AnalyticSoftware

Allows for tracking of web site usage

New MethodsTracking behavior of a sample ofInternet families and projecting

behavior to larger populations


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Term Definition

Impressions Number of times a page is viewed

Pay-per-click Payment rate for impressions

Click throughs Clicking on ad to web site

Click fraudFalse generation of site clicks to generatepayment per click


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Weekly Media ActivitiesWeekly Media Activities

0%

10%

20%

30%

40%50%

60%

70%

80%

90%

100%

listen

edto

Radio

Watche

dTV

News

paper

Maga

zine

Internet/E

mail

Watche

daMovie


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Evaluating Advertising EffectivenessEvaluating Advertising Effectiveness

Two aspects are measured :

- Communication Effect Research

- Sales Effect Research


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Communication Effect ResearchCommunication Effect Research

- Also called Copy testing seeks to determine

whether the ad is communicating effectively.

- This may be done before ad is put into

media and after it is printed or broadcast.


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Copy Testing

Pre - Testing

Consumer JuryTest

Portfolio TestLaboratory Test

Post - testing

Recall Test

Inquiry Test

RecognitionTest


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Sales Effect ResearchSales Effect Research

- Measure the impact of influence the advertisement iscapable to create.

- Studying share of advertising expenditure produce shareof voice that earns share of consumers minds andhearts and ultimately share of market


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Share of

expenditure

Share of

voice

Share of

Mind &heart

Share

OfMarket


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ExampleExample

11 22 33 44

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ProductsProducts Ad exp.Ad exp. Share ofShare of

VoiceVoice

Share ofShare of

marketmarket

AdAd

effect.effect.

AA 20,oo,ooo 57% 40% 70%

BB 10,oo,ooo 29% 29% 100%

CC 5,oo,ooo 14% 31% 220%


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Thank you

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FINAL_Measuring Effectiveness of Advertising 03