ADVERTISING EFFECTIVENESS

Presented By:ShilpaMeenalMonu

ChanchalBIT Noida-BBA Batch

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INTRODUCTION•It was considered 3 or 4 decades ago that the evaluation of advertising effectiveness is not easy. Which holds true even today.

• Despite of all the efforts made over the last three or four decades to make advertising enable to management concepts of goal setting, control and evaluation, there are still vague areas when one comes to evaluating the results of advertising.

• Proving the commercial value of advertising, that is, its contribution to shareholder value, rather than just its creative merit is what is meant by advertising effectiveness.

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THE NEED TO MEASURE ADVERTISING EFFECTIVENESS

To justify money spent (budgets). To determine if the advertising campaign should be stopped or

continued To determine possible areas of modifications in the campaign

messages To get some evidence of the relevance of advertising & the

practitioners.

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REASONS FOR AND AGAINST MEASURING EFFECTIVENESS

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Reasons to MeasureReasons to Measure

Avoid Costly MistakesAvoid Costly Mistakes

Evaluate StrategiesEvaluate Strategies

Increase Efficiency of Advertising in GeneralIncrease Efficiency of Advertising in General

Determine If Objectives Are Achieved

Determine If Objectives Are Achieved

Avoid Costly Mistakes (e.g., Bad Print/TV Ads)Avoid Costly Mistakes

(e.g., Bad Print/TV Ads)

Evaluate Strategies (e.g., which medium should be used)

Evaluate Strategies (e.g., which medium should be used)

Increase Efficiency of Advertising in General (e.g., Avoid too creative/sophisticated Ads)

Increase Efficiency of Advertising in General (e.g., Avoid too creative/sophisticated Ads)

Determine If Objectives Are Achieved

Determine If Objectives Are Achieved

Reasons Reasons NotNot to Measure to Measure

Problems With ResearchProblems With Research

Creative Objections (e.g., creative depts. Say that tests are not true measures)

Creative Objections (e.g., creative depts. Say that tests are not true measures)

Cost of MeasurementCost of Measurement

Disagreement About What to Test

Disagreement About What to Test

Problems With ResearchProblems With Research

Cost of MeasurementCost of Measurement

Disagreement About What to Test (e.g., Increase in Sales Volume or

Impact on Corporate Image)

Disagreement About What to Test (e.g., Increase in Sales Volume or

Impact on Corporate Image)

MEASURING ADVERTISING EFFECTIVENESS

What to test Creative decisions Media decisions Budgeting decisions

What to test Creative decisions Media decisions Budgeting decisions

Where to test Laboratory tests (People are

brought to a location & tests are implemented e.g., eye tracking, Galvanometer)

Field tests (e.g., survey studies)

Where to test Laboratory tests (People are

brought to a location & tests are implemented e.g., eye tracking, Galvanometer)

Field tests (e.g., survey studies)

When to test Pretesting Posttesting

When to test Pretesting Posttesting

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How to test• Testing guidelines • Appropriate tests [e.g., Concept generation testing (pre) or Market testing (post)]

How to test• Testing guidelines • Appropriate tests [e.g., Concept generation testing (pre) or Market testing (post)]

Where to test• Laboratory tests (consumer jury test, portfolio test etc.)

• Field tests

Where to test• Laboratory tests (consumer jury test, portfolio test etc.)

• Field tests

When to test• Pretesting• Posttesting

When to test• Pretesting• Posttesting

TYPES OF ADVERTISING EVALUATION Pre testing of

media,messages,markets,budgeting and scheduling

Post testing of media, messages,budgeting and scheduling

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PRE TESTING The purpose of advertising is to convey relevant

Information to enable consumers to recognize products, changes in attitudes and ultimately results in a purchase.

Pre-test is to reduce the of risks advertisers, it can be done:

1. To avoid the big mistakes.

2. Several programs on the basis of merit.

3. Preliminary testing of ads to reach goals.

4. Lord save advertising expenses. 7

PRE-TESTING PRINT MEDIA ADS Order of merit test Paired Comparison Portfolio test Mock magazine test Perceptual meaning studies Focus group Direct Questioning

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POST TESTING THE ADS

Penetration test

Error in recognition measurement

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ADVERTISING OBJECTIVES & HOW SUCCESS CAN BE MEASURED

Stimulate an increase in sales- Number of enquiries from advert, - Number of enquiries converted into sales

Remind customers of the existence of a product- Test customer awareness both before and after the advertising campaign, - Number of enquiries

Inform customers- Test customer awareness, - Number of requests for further information

Build a brand image- Test customer awareness of brand recognition and perceived values 10

Sales- Levels of repeat purchase

Build customer loyalty and relationship- Levels of customer retention

Change customer attitudes- Measure demographic profile of purchases- Measure type of goods ordered by new purchasers- Compare with previous data

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PROBLEMS WITH MEASURING ADVERTISING EFFECTIVENESS

Irrational consumer behaviour Lack of widely acceptable scientific approach The difficulties of determining consumer influences (multiple

factors) The validity and reliability of data gathered Suitability of research methods & instruments used Poor research skills & Sampling issues Inadequate resources/funding Setting non-SMART objectives

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TIPS FOR A MORE EFFECTIVE ADVERTISING Using colour more than doubles the growth in awareness of

local press ads - full colour is nearly 3 times more effective than mono only

Increasing the frequency of advertising helps to significantly increase levels of awareness

Longer campaigns equals higher awareness levels Advertisers should show products where appropriate and also

prominently and clearly display brand logos Increasing colour and advertising more often across the week

can more than double awareness uplift Increasing colour and the number of insertions can increase

awareness uplift by almost 3x Making use of Co-op (IMC) advertising can help to boost your

advertising. Setting SMART objectives

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