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Lecture 5- Measuring Advertising Effectiveness.pdf

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Lecture 5- Measuring Advertising Effectiveness.pdf

  1. 1. Measuring the Effectiveness of the Promotional Program 1
  2. 2. Pros and Cons of Measuring Effectiveness Objections of creatives Evaluate alternative strategies Avoid costly mistakes Increase efficiency in general Disagreement on what to test Research problems Cost of measurement Determine if objectives are achieved Time Advantages Disadvantages 2
  3. 3. Evaluating Alternative Strategies 3
  4. 4. Measuring Effectiveness: Marketers’ Views Issue Agree MPM is a key priority for today’s technology companies. 90% I am dissatisfied with our ability to demonstrate marketing programs’ business impact and value. 80% It is important to define, measure, and take concrete steps in the area of advertising accountability. 61.5% I can forecast the impact on sales of a 10% cut in marketing spending. 37% 4
  5. 5. How to test • Testing guidelines • Appropriate tests Measuring Advertising Effectiveness When to test • Pretesting • Posttesting Where to test • Laboratory tests • Field tests What to test • Source factors • Message variables • Media strategies • Budget decisions 5
  6. 6. Pretesting Methods On-air Tests Dummy Ad Vehicles Consumer Juries Portfolio Tests Physiological Measures Theater Tests Rough Tests Concept Tests Readability Tests Comprehension and Reaction Tests Laboratory Field 6
  7. 7. Posttesting Methods Recall Tests Inquiry Tests Association Measures Single- Source Systems Tracking Studies Recognition Tests Methods 7
  8. 8. Posttesting the Value of a Sponsorship 8
  9. 9. Where to Test In the Field   In the Lab 9
  10. 10. Positioning Advertising Copy Test (PACT) 1. Provide measurements relevant to objectives of advertising 2. Require agreement on how results will be used 3. Provide multiple measures 4. Be based on a model of human response to communications 5. Consider multiple versus single exposure to the stimulus 6. Require alternative executions to have same degree of finish 7. Provide controls to avoid biasing effects of exposure context 8. Take into account basic considerations of sample definition 9. Demonstrate reliability and validity 10
  11. 11. Test Points 3.Finished art or commercial pretesting 1.Concept Testing 2.Rough Testing 4.Market testing (posttesting) Occurs at Various Stages 11
  12. 12. Concept Testing Explores consumers’ responses to ad concepts expressed in words, pictures, or symbols Objective Alternatives are exposed to consumers who match the target audience Reactions & evaluations sought through focus groups, direct questioning, surveys, etc. Sample sizes depend on the number of concepts and the consensus of responses Method Qualitative and/or quantitative data evaluating and comparing alternative concepts Output 12
  13. 13. Rough Art, Copy, and Commercial Testing Number of ads that can be evaluated is limited Preference for ad types may overshadow objectivity Consumer may become a self-appointed expert A halo effect is possible Cost effectiveness Endorsements by independent third parties Achievement of credibility Comprehension and Reaction Tests Consumer Juries Control Advantages Disadvantages 13
  14. 14. Rough Testing Terms Photomatic Rough Animatic Rough Live-action Rough Terms 14
  15. 15. Pretesting Finished Broadcast Ads Theater Tests •Measures changes in product preferences •May also measure . . . •Interest in and reaction to the commercial •Reaction from an adjective checklist •Recall of various aspects included •Interest in the brand presented •Continuous reactions On-Air Tests •Insertion in TV programs in specific markets •Limitations are imposed by “day-after recall” •Physiological Measures 15
  16. 16. Physiological Measures Eye tracking Pupil dilation Galvanic skin response Brain waves Testing 16
  17. 17. Market Testing Print Ads Recall Tests Inquiry Tests Recognition Tests Tracking Studies Testing 17
  18. 18. Starch-Scored Sports Illustrated Ad Noted score– the percentage of readers who remember seeing the ad Seen-associated score— the percentage who remember seeing or reading any part of the ad identifying the product or brand Read most score—the percentage of readers who report reading at least half of the copy portion of the ad. 18
  19. 19. Posttests of Broadcast Commercials Test marketing Day after recall tests Persuasive measures Diagnostics Comprehensive measures Single-source tracking Tracking studies Testing 19
  20. 20. Problems With Current Research Methods 20
  21. 21. Essentials of Effective Testing Use a consumer response model Use pretests and posttests Use multiple measures Understand and implement proper research Establish communications objectives Testing 21
  22. 22. Measuring Effectiveness + Efficiency 22
  23. 23. THANK- YOU 23

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