Measuring The Effectiveness of Advertising

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Measuring the

Effectiveness of
Advertising

Prof. Sita Ramakrishnan

Topics to be covered

Meaning of Measuring Advertising Effectiveness


Need
Testing Process
Tests for Measuring Advertising Effectiveness
Essentials for Effective testing of Advertisements

Meaning

Evaluating the success of the advertising campaign i.e


whether it has met the objectives set.
Used to measure or assess the performance of specific
elements of the campaign or the entire campaign itself.
Managerial exercise to find out if the message has
reached the largest number of prospects at the least
cost.
Pre-testing and post-testing are possible.
Pre-tests are undertaken before the campaign launch, to
find out if the ads are in a position to achieve the
objectives that are set.

Post-tests are undertaken during or after the campaign,


to find out if the ad campaign has achieved its
objectives.
Measure to know if the time and money invested have
resulted in sales growth and profit maximisation.
Evaluates both the advertisement and the media used.
Critical factor in marketing success.

Need for Measuring Advertising


Effectiveness

Need for Pre-testing:


- To avoid grammatical, spelling or any other technical
errors.
- To make the ad effective and impressive to the target
consumers.
- To reduce wastage in advertising.
- To make the communication more effective and resultoriented.
- To ensure that money is spent in the most effective
manner.

Need for Post-testing:


- To find out the readership/viewership coverage.
- To find out the understanding of the message and the
audiences belief on the same.
- To measure the memory value of advertising.
- To measure the contribution of advertising in achieving
objectives.
- To find out the relative effectiveness of different ads in
terms of appeals, personalities used, layout etc.
- To find out whether the audience accepts the claims
made in the ads.
- To improve future advertising plans.

Testing Process for Advertising


Effectiveness
Takes place at various points throughout the development
of an ad campaign.
1.
2.
3.
4.

Concept generation & testing


Rough art/copy testing
Finished art or commercial pre-testing
Market testing of commercials or post-testing

1.

Concept generation & testing:


- Conducted to explore the TGs response to potential
ad campaign.
- Concept of the product or ad, positioning statements,
copy, headlines, colours used, package designs, POP
materials might be tested.
- Methods used are Focus Groups, Mall Intercepts,
Internet concept testing.

2.

Rough Art/Copy Testing:


- Rough copy of the artwork is tested.
- These tests indicate how the commercial would
perform.
- Most of these tests are done in lab settings.
- Popular tests include Comprehension & Reaction
tests and Consumer Juries.

3.

Finished art or commercial pre-testing:


- Finished art or commercial is tested.
- Since the ad hasnt been presented to the market, it
can be changed.
- Most commonly employed by market researchers.
- Print methods include Portfolio test, Readability test
and Dummy Advertising Vehicles.
- Broadcast methods include Theatre test and On-Air
test.

4.

Market testing of commercials or post-testing:


- Test to understand the public reaction to the ads after
release.
- Helps to understand if the ad will attain its objectives.
- Print Post-tests include Inquiry test, Recognition test
and Recall test.
- Broadcast Post-tests include Day-After Recall test,
Persuasive measures, Diagnostics, Test Marketing and
Tracking of ads.

Tests for Measuring Advertising


Effectiveness
Pre Tests
1.
Checklist Method
2.
Consumer Jury
3.
Sales Area test
4.
Portfolio test
5.
Mechanical/Lab test
6.
Broadcasting ads
7.
On-Air tests
8.
Physiological measures
9.
Projective techniques

Post Tests
1.
Inquiry & Coupon
response method
2.
Readership survey
method
3.
Recognition test
4.
Recall test
5.
Day-After recall test
6.
Sales test method
7.
Attitude measurement
method
8.
Tracking ads
9.
Test marketing

Pre Tests
1.

Checklist method:
- List of elements in an ideal advertisement, called a
Checklist, are prepared.
- The current ad is tested for those parameters.
- Tests various elements of advertisement copy as a
whole.
- Ensures important features are not left out and each
element is given proper weightage.

2.

Consumer Jury method:


- Consumer representatives of the target market is
used to evaluate the probable success of an ad.
- The opinions of this sample is taken as regards
layout and copy of the ad.
- The group may be asked to give opinions on different
types of ads and also rank them in terms of likes and
dislikes.
- May be done through mail or personal interviews.
- 2 types: Order of Merit and Paired Comparison

3.

Sales Area test:


- Ad campaign is run on a small scale in certain
selected markets.
- Impact of the ad is evaluated by in terms of sales in
these selected markets.
- The campaign run in the market with the highest
sales is taken as the most effective one and is used for
the actual marketing campaign.

4.

Portfolio test:
- Ads of different products are collected and placed
together in a magazine format, called Portfolio and
respondents are asked to go through them.
- Then the respondents are asked to recall the ads with
some details.
- This shows which ads are noticed most.

5.

Mechanical/Lab test:
- Various mechanical devices are used to find out the
response of the sample population.
- Most common devices are:
Eye tracking: Records amount of time spent by respondents
while looking at the ads. Also tracks the movement of the
eye from one element of the ad to another. Increasingly
used to measure effectiveness of websites and online ads.
Tachistoscope: It is a timing device which regulates the
viewing time of advertisements. The respondents are asked
to recognise the ads and comment on its features.

6.

Broadcasting ads:
- Ads are shown to the sample audience in the following
ways:
In-home projection tests: Relates to TV ads. Measures
how the buying behaviour of the consumer has changed
pre and post viewing of the ad.
Trailer tests: 2 groups are invited and one group is shown
the commercial. Then both the groups are given coupons
and depending on which group redeems it, the conclusion
is drawn.
Theatre tests: Regular theatre goers are given
questionnaire to fill pre and post viewing of the ad and
then effectiveness is measured.

7.

On-Air tests:
- Same as Sales Area test.
- Recall is the basis of this test.
- Factors such as position of the ad in the series of
commercials, the number of commercials shown,
adjacent program content may affect the recall levels.

8.

Physiological measures:
- Persons physical response to stimuli are measured.
- Methods used are Pupil Dilation, Galvanic Skin
Response, Brain Waves.

9.

Projective techniques:
- Type of motivation research.
- Respondent has to place himself in a situation and tell
his opinions and feelings.
- Methods used are:
Depth interview: Unstructured interview.
Word Association: First word that comes to mind on
seeing the ad.
Sentence Completion
Construction technique: Story to be made around a
particular picture or scene. Relationship between
buying motives and selling points could be established.

Post Tests
1.

Inquiry/Coupon Response method:


- Used to study effects of advertising on dealers and
consumers.
- Ads may be followed by inquiries/responses from
interested parties.
- Under the Inquiry method, the dealer is offered some
gift for his inquiry letter. Generally used in direct mail
and press advertising.
- Under Coupon response method, the consumer has
to send the coupon alongwith some information, in
return for which prizes or gifts may be offered. If given
on TV or Radio, a contact number/address may be
given.

2.

Readership Survey test:


- The copy of the newspaper/magazine which carried
the ad is shown and the respondents are asked which
ads they actually saw.
- Respondents are classified on the basis of noted,
seen and read.
- Recognition and recall testing also can be done.
- Additional information can also be collected and
tabulated.

3.

Recognition test:
- Variation of readership test.
- Tries to estimate the contents of the ad seen by the
respondent like headline, text, illustration etc.

4.

Recall test:
- Respondents are asked questions to find out the
extent to which they remember the advertisement.
- To measure effectiveness in terms of attention,
interest and memory value.
- Aided and Un-aided recall tests can be conducted.
- Un-aided no assistance given & Aided some clue
is given.

5.

Day After Recall test:


- Respondents are tested the day after they have seen
the ad to check the memory value of the ad.
- It could lead to respondents paying more attention than
normal to the ads as they know they will be tested the
next day.

6.

Sales test method:


- Judges ads through its effect on sales.
- More than one city has to be selected as test area.
- In one city, the ad campaign is run and in another, it is
not.
- Sales figures in both cities are compared.

7.

Attitude measurement method:


- Effectiveness of advertisement is judged on the
basis of the respondents evaluation of the company
and its various brands.
- It is assumed that when attitudes are favourable,
consumers are likely to buy the products of the
company.

8.

Tracking ads:
- Tracks effects of ad campaign at regular intervals.
- Personal interviews, phone surveys, mall intercepts
are used.
- Can be tailored to suit each specific campaign.

9.

Test Marketing:
- Ad is run in certain test markets before it is released
nationally.
- Test market chosen is representative of the target
market.
- Various factors are tested like effect on sales, effect
of various budget sizes, special offers etc

Essentials for Effective Testing of


Advertisements
-

Establish communication objectives


Use a consumer response model
Both pre and post tests have to be used: Post tests are
under natural setting and hence does not have
limitations as pre-tests.
Use multiple measures to test effectiveness: not just
effect on sales, recall or recognition.
Understand & Implement research: Research method
used should fit with the data required to be collected.

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