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Measuring Effectiveness of Advertising

12/18/08

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Introduction • Issues regarding the process of measuring the effectiveness of promotional tools and overall IMC efforts Marketing research Promotional research Reliability Validity Trustworthiness Meaningfulness 12/18/08

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Account planning Vs Measuring effectiveness • Account Planning: it is defined in contrast

to traditional promotion research. In terms of organization, agencies that use this system typically assign an “account planner” to work as coequal with the account executive with a given client business. • Advertising and promotion agencies that practice account planning tend to do more developmental research and less evaluative or measurement research.

12/18/08

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Fundamental issues in message evaluation Advertising, internet Advertising, corporate advertising etc. have the most elaborate message development and evaluation but direct marketing materials POP displays and brochures, sales promotion appeal and public relations all have message content. Message testing are two type: one occurs before a promotional tools is executed i.e. pretest and the other occurs after a promotional campaign is placed. 12/18/08 4

Motives and Expectations • What that marketers and agencies want out of their message test is the motive of the particular agency. Most of the times the team simply wants whatever the client wants. The client wants to see how well a particular advertisement or promotion scored against average campaign of its type that were tested previously.

12/18/08

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Dimensions of message Assessment •There are many standards against which promotional messages are judged for effectiveness. Managers should avoid in judging messages is to go directly to sales as a single measure. Four basic dimensions of message evaluation are : 2. impart knowledge 3.Shape attitudes 4.Attach feelings and emotions 5.Legitimize the brand 12/18/08

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Pre test Evaluation of advertising Effectiveness •Pretest is carried out by most of the Organizations to sense the customer reactions before advertisement is placed. A variety of tools may be used in protesting. •Communications tests •Magazine dummies •Theater test •Thought listing •Attitude-change studies •Physiological measures •Commercial pretest services 12/18/08

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1. Communications tests • A communication test simply seeks to see whether a message is communicating something close to what is desired. This tests are usually done in a group setting like pencil and paper questionnaires and group discussion. • Communication tests are done with one major thought in mind: to avoid a major disaster and to prevent communicating something the creators of the ad are too close to see but i.e. entirely obvious to those consumers first seeing the ad. 12/18/08 8

2. Magazine dummies • Dummy advertising vehicles are mock-ups of magazines that contain editorial content and advertisements, as a really magazine would. consumers representing the target audience are asked to read through the magazine as they normally would. Once the reading is completed the consumers are asked questions about the content of both the magazine and the advertisement as way to divert heightened attention away from just the ads. • These method is the most valuable for comparing the different message alternatives. 12/18/08

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3. Theater test • Advertisements are also tested in small theaters, usually set up in or near shopping malls. Theater audience are provided with a electronic device through which they can express their likes and dislikes towards a particular advertisement. • Simulated shopping trips can also be a part of theater test. • The drawback of the test is that it is difficult to determine whether the consumers are really expressing feelings towards brand or the ad being advertised. 12/18/08

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4. Thought listing • Message research that tries to identify specific thoughts that may be generated by an ad is refer to as thought listing. • It is also known as cognitive response analysis. • In thought listing, the research is interested in the thoughts that a finished or semi finished ad creates in the mind of the customers 12/18/08

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5. Attitude-change studies • A typical attitude change study uses a before and after ad exposure design. • People from the target market are recruited, and their pre exposure attitudes towards advertise brand as well as towards competitors brand are taken. Then they are exposed to the test ad along with some dummy ads; following this exposure their attitudes are measured again. • The goal is to gauge the potential of the specific add version for changing brand attitudes.

12/18/08

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6.Physiological measures • Physiological measures detect how consumers react to messages based on physical responses. • Eye-tracking systems have been developed to monitor eye movement across print ads. • Psycho galvanometer, which measures galvanic skin response, is a measure of minute changes in perspiration, which suggest arousal related to some stimulus. • Voice response analysis, a high-tech research procedure measures inflections in the voice when consumers are discussing about an ad that indicate excitement and other physiological states. 12/18/08 13

7. Commercial pretest services • Pretest message research can often be conducted by a marketer in conjunction with its advertising agency. However, several commercial pretesting services provide full service pretesting for both television and print advertisement.

12/18/08

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Market place evaluation of advertising: pilot testing •

Pilot testing: perusing message evaluation with experimentation in the market place is known as pilot testing. Before committing to expense of a major campaign marketers often take their message testing programs into the field. • The fundamental options of the pilot testing fall into one of three classes: 3. Split cable transmission 4. Split run distribution 5. Split list experiment 12/18/08

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Split cable transmission • It arouse testing of two different versions of an advertisement through direct transmission to two separate samples of similar house holds with in a single well defined market area. • Factors such as frequency of transmission and timing of transmission can be carefully controlled. The advertisements are then compared on measures of exposures recall and persuasions. 12/18/08

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Split run distribution • It uses the same technique as split cabel transmissions except the print medium is used. • Two different versions of same advertisement are placed in every other copy of magazine. • This method of pilot testing has the advantage of using direct response as test measure. • Coupons, toll- free numbers can be used in this measures. • Expense is major drawback of this technique.

12/18/08

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Split list experiment • This experiment tests effectiveness of various aspects of direct mail advertising pieces. Multiple versions of a direct mail piece are prepares and send to various segment of mailing list. • The advantage of this pilot testing method is the natural and real setting with in which the test take place.

12/18/08

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Television pre testing services • Research system corporation: ARS persuasion system. This is the system Goodyear used to protest Aquatred advertisements. • Gallup and Robinson InTeleTest: this test uses in home viewing of videotaped program with six test commercials embedded. • Video storyboard tests (VST): the VST is specifically designed to test rough versions of television ads. The ads are prepared from storyboards and music soundtracks by VST. 12/18/08

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Print pretesting services • Perception research services (PRS): PRS evaluates all types of print advertising using an eye-tracking camera that follows the respondent’s eye movement around a print advertisement. • ASI: Print Plus. ASI offers print ad pretesting through national magazines or its own dummy magazine vehicle ,called reflections. • VST: VST tests all forms of rough and fully finished print ads in its dummy vehicles magazine called Looking at Us. 12/18/08

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Television pilot testing • Gallup and Robinson: In-View. This service provides on air testing of both rough and finished advertisements. • ASI: Recall Plus and Persuasion Plus. Unlike the earlier test, ASI uses cable transmission to test ads on recruited audience. In recall Plus respondents are called the day of test and invited to preview a new television program The program includes four non competing tests advertisements and one filler non test ad. Day after recall and effectiveness measures are then taken. • The persuasion plus test uses the same methods with the addition of the brand choice 12/18/08 21 measures.

Print pilot testing • Gallup and Robinson: Rapid Ad Measurement (RAM). This test offers advertisers the chance to buy advertising space in test issues of several magazines like Times and People, which are delivered to participants’ homes in each test area. A telephone interview is conducted the day after delivery and after magazine reading has been verified, respondents are asked if they recall ads for a list of brands and companies.` 12/18/08

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