MEASURING ADVERTISING AND CAMPAIGN EFFECTIVENESS

SUBMITTED TO: KHUSHDIP MAM

SUBMITTED BY: SAKSHA SHARMA

M.Com. II, 5810

DEFINITION– The term Advertising Effectiveness is defined as the degree

to which the objectives of an advertisement or advertising campaign have been achieved. Such effectiveness is commonly gauged by measuring the effect on sales, brand awareness, brand preference, and so on.

OBJECTIVE

COMMUNICATION EFFECT

SALES EFFECT

The effectiveness of advertising should be measured and evaluated on multiple parameters like the originality, creativity and innovation in the ad, attention value of the ad, understandability of ad, the acceptability and credibility of the ad, technical aspect of running the campaign, its overall impact on consumer's attitude and buying behavior, etc.

FACTORS TO BE TESTED FOR EVALUATION

CONTENT

METHOD

BUDGET DECISION

• REACH• RECALL• MEDIA• FREQUENCY• TIMING• COST• RETURN

TESTING THE METHOD– A) Advertising Method (ex: SEO, Banner v/s sponsorship)

. b) Subclass (ex: regular v/s 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

TESTING THE CONTENT

– A) If the ad is effective at getting the consumers attentionb) If the ad is informative enough to allow the consumers to evaluate the productc) If the ad is persuasive enough to convince the consumers to try the productd) If the ad is memorable as to ensure the consumers will remember to make the purchasee) If the ad is appealing to it’s intended target marketf) If the ad has the desired effect on the brand image (ex: if the ad is consistent with the company’s other marketing efforts)

TESTING THE BUDGET DECISION

– a) Is the budget allocated to this ad 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?

WHERE TO TEST?

LAB TESTING FIELD TESTING

METHODS OF TESTING– Given the complex

process of making campaigns and advertisements , there are three phases like- pre testing, concurrent testing and post testing of the advertisements. These can be further classified on the basis of the objectives of the evaluation process.

PRE- TESTING- COMMUNICATION

EFFECT– Copy Testing: Copy testing is the study of

advertising (print, T.V., radio, billboards, Internet, etc.) prior to launching it. No one knows how the target audience will respond to a given ad. Copy test helps take the guesswork out of advertising. It predicts how effectively an ad will perform, based on the analysis of feedback gathered from the target audience. Each test will either qualify the ad as strong enough to meet company action standards for airing or identity opportunities to improve the performance of the ad

PRE TESTING- COMMUNICATION

EFFECTConsumer Jury: Advertisers use a test audience called a consumer

jury of potential buyer to test the advertised product known as jurors

Various ways of conducting tests on the consumer jury are:– The order of merit: Under this test points are given by jurors to

determine the best and worst advertisement. – Portfolio test:, after looking through a portfolio of different

versions of a particular advertisement; respondents chosen from the target market are asked to recall in detail those that they can remember. Their recall level indicates an advertisement’s ability to affect consumer’s knowledge and interest for the product.

– Mock magazine test: This is very similar to the portfolio test used for print media.

– Perceptual Mapping: The Perceptual mapping of attitude change compares groups or individuals through time or between experimental conditions and evaluates the differences in perceptions held by consumers in different experimental conditions with the use of multi dimension scaling.

PRE TESTING( FOR BROADCAST MEDIA)– In-home projection tests: In the consumers’ home itself a movie

projector is set up and the ad is screened. They are questioned both before and after exposing them to the ad

– Trailer tests: As in case of any trailer activity two different groups of customers are identified. One group is exposed to the ad that contains coupons for purchasing some selective articles while the other group is not given the coupons. If the consumers of the first group use coupons for purchasing articles it can be inferred that the ad was effective.

– Theatre test: A set of target audience is shown the trial ads in a theatre. They are then given a questionnaire to be filled.

– Live telecast tests: As against the above artificial testing environments, a real life live environment is chosen. The audience of this environment is exposed to the test ads through live telecasting

PRE TESTING-COMMUNICATION EFFECT

(BROADCAST MEDIA)– Projective Technique: Instead of showing them an advertisement, the

researcher shows some pictures, words or situations and asks the respondents to tell a story about it, fill the details or complete them.

– The types of projective techniques are as follows:– Association: The researcher presents a word, or some unidentified

shape and the respondent is asked to tell the first word, thought or image that occurs to him.

– Construction: The researcher presents a scene or picture and the respondent is asked to make a story about it.

– Completion: The researcher shows an incomplete sentence or picture and the respondent are asked to complete it with any words or in any way he wishes.

– Laboratory Research Device: It uses specially designed equipment to measure the physiological reactions – heartbeat, blood pressure, pupil dilation, and perspiration – of the respondent to an ad Some such technique include measuring interest levels by tracing ‘eye ball movements’.

POST TESTING- COMMUNICATION EFFECT

– Recall Tests: The most popular posttests are the brand recall test. These essentially check on the recall levels of the ads, its content, and the brand advertised.

– Aided recall: In this method individuals are shown advertisements in which the brand name has been marked and they are asked to tell which product is advertised. This is used to test the ability to remember brand marks, packages and slogans.

– Unaided recall: It involves asking the respondents if they have seen the publication by showing them only its cover and not inside ads contained in it. They are then asked to name all the ads that can be recalled in the publication.

POST TESTING

RECOGNISITION

BRAND PERSUAION

TRIPLE ASSOCIATION

PRE TESTING- SALES EFFECT

– Inquiry test: This is designed to measure advertising effectiveness on the basis of inquiries generated from ads appearing in various print media. The inquiry may be in the form of the number of coupons returned, phone calls generated or direct inquiries through reader cards

– Split Run Test: This test is the modification of the above test and is normally used to test the print ad the advertiser prepares the two different copies of the ad carrying different coupons, free gifts or free booklets. The ad is then run in such a way that 50% of the medium carries one copy and other 50% carries another copy.

PRE TESTING- SALES EFFECT

– Intend to buy Test: In this test, readers of a magazine, who have read the advertisement, are asked about the effect of an ad is on their buying intention for a product. Once they express an intention to buy, a further probe of the element of ad that influenced them most to do so is assessed.

– Sales Experiments in Test Markets: The ad campaign is run on a small scale to find out the effectiveness of the ad before the ad campaign is run for the entire market. The advertiser selects a control market and a test market

POST TESTING- SALES EFFECT

– Historical Sales: This test involves correlating the past sales and profit with past advertising expenditure using advanced statistical techniques. The result can reveal how far advertisement was effective in generating or increasing sales. The test can be used to different products, territories and ad media.

– Experimental Tests: Experiment is conducted to assess impact of advertisement on sales. Instead of spending same percent of sales for advertisements in all territories or for products, a company may spend different percentages of sales for advertisements and find out whether high spending territory or product have generated more sales.

CONCURRENT TESTING

– Telephonic Survey-

– Interview Test - Such a face-to-face interaction is generally possible at POP (Point-of-Purchase).

– Passers-by-Count test – In this type of test, the number of viewers stopping to view a signboard/billboard/poster are counted..

– Customer Diary Test –some selected prospective consumers are provided with diaries and are requested to note down their opinions about the strengths and weaknesses of the ad whenever they read or view the ad

– Mechanical Tests – In this type of test, the readers or viewers of the ad are observed while they are actually reading or viewing the ad with respect to their eye movement, etc.

SUMMARY– Hence we can conclude that it is essential for measuring

ad effectiveness in order to judge the various strategies, ensure efficient utilization of resources, earning profits, gain better market and customer insights.

– Most common method of evaluation is setting standards, setting objectives, using various tests and models and understanding the research and implementing it.

– It is a complex activity usually demanding more effort from the marketer.