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 Mistakes
Evaluate Strategies
Increase Efficiency of Advertising in General
Determine If Objectives Are Achieved
Avoid Costly Mistakes (e.g., Bad Print/TV Ads)Evaluate Strategies (e.g., which medium should be used)
Increase Efficiency of Advertising in General (e.g., Avoid too creative/sophisticated Ads)
Determine If Objectives Are Achieved
Reasons Reasons NotNot to Measure to Measure
Problems With Research
Creative Objections (e.g., creative depts. Say that tests are not true measures)
Cost of Measurement
Disagreement About What to Test
Problems With Research
Cost of Measurement
Disagreement About What to Test (e.g., Increase in Sales Volume or
Impact on Corporate Image)
MEASURING ADVERTISING EFFECTIVENESSWhat 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)
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)]
Where to test• Laboratory tests (consumer jury test, portfolio test etc.)• Field tests
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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