Evaluation of Effectiveness Advertising Principles and Practices.

Evaluation of Effectiveness

Advertising Principles and Practices

Outstanding in the FieldOutstanding in the Field

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• 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.

19-2Prentice Hall, © 2009


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.


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


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.


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?


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?


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


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.


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


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


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


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


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.



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?


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)


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




• B2B 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




• B2B 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


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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Evaluation of Effectiveness Advertising Principles and Practices.

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