Integrated Marketing Communication

Ch. 15 The Internet: Digital and Social Media

Ch. 18 Measuring the Effectiveness of the Promotional Programs

Lecturer: Daniel T. Hamonangan S.Si, M.S.M.,Ph.D.

Group 4
Agus Winarta - (1906329606)
Andreas Imanuel - (1906329695)
I Gusti Ayu Mirah - (1906420231)
Yehezkiel Jefferson - (1906421000)
 Contents

About us
1 This is the subtitle that makes it comprehensible

Creative info
2 This is the subtitle that makes it comprehensible

Data analysis
3 This is the subtitle that makes it comprehensible

2
There are now close to 2 billion Internet users worldwide, and the
growth since the year 2000 is staggering
The existence of internet stimulates consumers’ increased desire
for information that they are now able to obtain easily.
The speed and convenience of acquiring this information, as well as
the ability to control what and how much is received, has had great
appeal.
The ability to target customers effectively through the Net is attractive to marketers.
The increased attention for accountability on the part of businesses has led to a view
of the Internet as a medium that would provide more direct feedback on the value of
marketing expenditures, customer satisfaction, trends, and the competition. As was
true of direct marketing, companies liked the fact that, unlike traditional media, it
was often easier to account for the ROI of their expenditures.

Why the Rapid Adoption of the Internet?

Web objectives

Unlike other media discussed thus far in the text, the Internet is actually a hybrid of media.
In part, it is a communications medium, allowing companies to create awareness, provide information,
and influence attitudes, as well as pursue other communications objectives
For others, it is also a direct-response medium, allowing the user to both purchase and
sell products through e-commerce, like Amazon and Craigslist.

Sites are now designed to accomplish a number of objectives and have become much more
creativeby promoting brand images, positioning, and offering promotions, product
information, and products and services for sale, with many allowing interactivity.
Web objectives as a communication medium
Create awareness
Advertising on the Web can be useful in creating awareness of an organization as well as its specific product
and service offerings especially for smaller companies with limited budget compared to use traditional media.

Generate Interest
Put interesting content focusing on generating interest to stimulate customer’s visit and learn about the products.

Disseminate Information
Provide in-depth information about a company’s products and services

Create an image
Many websites are designed to reflect the image a company wants to, for example having theme or color
representing what the company want to portray

Create a strong brand

Website is a part of IMC tool which used also for branding purpose

Stimulate Trial
Website can be used as a platform for customer to “try” the products/services. i.e Itunes with music
sample

Create Buzz and Gain Consideration

Web objectives as a direct response

E-Commerce

Website can also be used as a

platform for doing transaction, in this
case a method of distribution
channel. Example is Nike website
which allow people to get
information about nike while also
ordering online in one website
The internet and Integrated Marketing Communication

Web
1.0
Characteristic

One way flow of

communication.
i.e : wikipedia Web 2.0
Characteristic

Decentralization
of communications
and interactivity, with
information provided
by users as
contributors of
content such as
user-generated ads
content and so on
Advertising Strategy in Web 1.0
Banner Ads
 It has been estimated that the average Internet user sees
over 1,700 banner ads per month, while those in the age
group 25–34 see over 2,000.
 Reports on click-through rates vary, but most studies
indicate a less than 1 percent response rate.
 A study reported in the Journal of Consumer Research
showed evidence that even with low click-through rates,
banner ads may still create a favorable attitude toward the
ads through repeated exposures
Sponsorships
 Regular Sponsorships
Occur when a company pays to sponsor a section of a site
—for example, a House Beautiful magazine or
Cosmopolitan magazine sponsorship on Design.com or a
corporate sponsorship of a page on Forbes.com
 Content Sponsorships
the sponsor not only provides dollars in return for name
association but also participates in providing the content
itself. In some cases, the site is responsible for providing
Advertising Strategy in Web 1.0
Pop Ups / Pop Under
 Window or a creature of some sort appear on screen in an
attempt to get attention when openin websites are known
as pop ups
 Pop-ups are usually larger than banner ads but smaller
than a full screen.
 study conducted by TNS revealed that 93 percent of
respondents found pop-up ads annoying or very annoying
Interstitials
 Interstitials are full-page ads that appear on your
screen while you are waiting for a site’s content to
download. Unlike banner ads, interstitials require the
viewer to click off the ad to continue to the site they want
to go to.
 Because consumers have complained that mobile
interstitials are irritating, in 2015 Google put into place a
new policy to discourage their use by declaring the sites
that use mobile interstitial apps as “mobile unfriendly
Advertising Strategy in Web 1.0
Paid Searches
Two Types of Search Result :
 Organic search results are those that appear because of their
relevance to the search terms, not advertisements.
 Advertisers will also attempt to reach consumers through
nonorganic (paid) search results such as pay-per-click
advertising by placing their ads on web pages that display
results from search engine queries.

Over $29 billion was spent on search advertising in 2016, with

that number expected to increase to more than $40 billion by 2019

 Search Engine Optimization is the process of improving

the volume of traffic driven to one’s site by a search
engine through unpaid (organic) results as opposed to
paid inclusions.
 SEO considers how search engines work and edits its
HTML and coding to increase its relevance to keywords
and to remove barriers to the indexing activities of search
engines.
Advertising Strategy in Web 1.0
Behavioral Targeting
 Behavioral targeting is based on advertisers’ targeting
consumers by tracking their website surfing behaviors, such as
which websites they have visited and/or searches they have
made.
 By compiling clickstream data and Internet protocol (IP)
information, segments of potential buyers can be identified
and ads directed specifically to them.
Advertising Strategy in Web 1.0
Online commercial & Video on Demand

Rich Media
Rich media, defined as “a broad range of interactive digital media
that exhibit dynamic motion, taking advantage of enhanced
sensory features such as video, audio and animation

Webisodes
Advertising Strategy in Web 2.0
Social Media
Social media have been defined in numerous ways. Using the simplest definition from the
Merriam-Webster dictionary, social media is defined as: “Forms of electronic communication
(such as Web sites) through which people create online communities to share information, ideas,
personal messages, etc

(1) consume, (2) contribute to, and/or (3) create brand-related content. His
results
indicated that these COBRAs are driven by three primary motivations: (1)
to gain
information, (2) entertainment, and (3) remuneration. Gaining information
included
gathering prepurchase information, knowledge about brands, and new
ideas. Entertainment
involved enjoyment, relaxation, and passing time. Remuneration involved
the potential to get something in return—for example, money, job-related
benefits,
or other rewards (social attraction, etc.).
Ch. 18 Measuring the Effectiveness of
the Promotional Program

Lo 18.1 Reasons for measuring promotional program

Lo 18.2 various measured used in assessing promotional
program
Lo18.3 the requirements of proper effectiveness reasearch
Lo 18.4 alternative methods for masuing promotional
program effectiveness

14
 LO 18.1 Arguments For And Against Measuring Effectiveness

Reasons to Measure Reasons Not to Measure

1. Avoiding costly mistakes 1. Cost

2. Evaluating alternative strategies 2. Research problems
3. Increasing the efficiency of 3. Disagreement on what to test
advertising in general 4. The objections of creative:
4. Determining if objectives are 5. Time
achieved

15
 What to test When to test
1. Source factors 1. Pretests
2. Message variables 2. Posttesting
3. Media Strategies
4. Budgeting Decisions
Lo 18-2 Conducting
research to measure
effectiveness
Where to test How to test
1. Laboratory tests Positioning Advertising
2. Field tests Copy Testing (PACT)

16
 What to test

Source Factors Message Variables

Whether the spokesperson being used is Whether the message is strong enough to pull
effective and how the target market will readers or memorable but doesn’t achieve the
respond to him or her goals

17
 What to test

Media Strategies Budget Decisions

which media class (broadcast vs print), subclass Whether increasing their ad budget
(newspaper vs magazines), specific vehicles directly increases sales
(which newspaper and magazines)

18
 When to test
Pretests
occur prior to the implementation of the
campaign

Advantages:
1. Feedback is relatively inexpensive
2. Identified before money are spent
Disadvantages:
3. The mockups may not communicate
nearly as the final product
4. Time delays

Posttests
taken once the program has been
implemented

Aim:
5. Determine if the campaign is
accomplishing the objectives
6. Serve as input into the next period’s
situation analysis
 Where to test
Laboratory
those tests conducted in a specific location to which
consumers are brought—for example, testing labs,
theaters, etc. The major advantage is control. The
major disadvantage is a lack of realism and the
potential for testing bias.

Field tests
taken under more natural viewing situations, such as
phone surveys, inquiry tests, etc. The major advantage
is that they offer a more realistic viewing situation. At
the same time, a lack of control and a number of other
distracting conditions are disadvantages associated
with these methods.

20
 How to test
Positioning Advertising Copy Testing (PACT)

21
The Testing
Process
Testing may occur at various points throughout the
development of an ad or a campaign:
(1) Concept generation research;
(2) Rough, prefinished art, copy, and/or commercial
testing;
(3) Finished art or commercial pretesting; and
(4) Market testing of ads or commercials (post
testing).
Concept Generation and Testing
concept testing takes place very early on in the development of the
campaign, and is designed to explore consumers' responses to ads and/or
campaigns being considered. Focus groups and mall intercepts are
commonly employed methods at this stage.

23
 Rough Art, Copy, and Commercial Testing

Testing an unfinished ad to indicate how the

finished advertisement would perform. Rough
testing may fall into three categories:
1. Animatic Rough
2. Photomatic Rough
3. Live Action Rough

Two popular tests used:

4. Comprehension & Reaction Test
5. Consumer Juries
Pretesting of Finished
Ads
many advertisers prefer to test the ad in
its finished form. A variety of both print
and broadcast measures may be used
1. Pretesting Finished Print Messages
2. Pretesting Finished Broadcast Ads
 Pretesting Finished Print Messages

Portfolio Tests Readibility Tests New Print Pretesting Measures

Tests recall and reader’s Use the Flesch formula to Using dummy magazines
impression of print ads determine the readibility
of each ad by determining
the average number of
syllables per 100 words
 Pretesting Finished Broadcast Ads

Theater tests On-Air Tests Physiological Measures

Participants are invited to Inserting the commercial Involves the measurement of

view proposed pilots of tv in actual tv programs physiological responses included
programs pupil dilation, eye tracking,
brainwaves.
Physiological Measures

● A less common but increasingly adopted method of pretesting finished commercials

involves a laboratory setting in which physiological responses are measured
● These measures indicate the receiver’s involuntary response to the ad, theoretically
eliminating biases associated with the voluntary measures reviewed to this point
 Pupil dilation
● Advertisers have used pupillometrics to evaluate
product and package design as well as to test ads.
Pupil dilation suggests a stronger interest in (or
preference for) an ad or implies arousal or
attention-getting capabilities. Other attempts to
determine the affective (liking or disliking)
responses created by ads have met with less success
 Galvanic skin response (GSR)
● Also known as electrodermal response (EDR), GSR measures the skin’s resistance or conductance to
a small amount of current passed between two electrodes. Response to a stimulus activates sweat
glands, which in turn increases the conductance of the electrical current. Thus, GSR/EDR activity
might reflect a reaction to advertising
 Eye Tracking
● The continuous reading of responses demonstrates
which elements of the ad are attracting attention, how
long the viewer is focusing on them, and the sequence
in which they are being viewed.
● tracking can identify strengths and weaknesses in an ad.
For example, attractive models or background action
may distract the viewer’s attention away from the brand
or product being advertised. The advertiser can remedy
this distraction before fielding the ad. In other
instances, colors or illustrations may attract attention
and create viewer interest in the ad.
 Brainwaves
● Electroencephalographic (EEG) measures can
be taken from the skull to determine electrical
frequencies in the brain. These electrical
impulses are used in two areas of research,
alpha waves and hemispheric lateralization:
○ Alpha activity refers to the degree of
brain activation
○ Hemispheric lateralization distinguishes
between alpha activity in the left and
right sides of the brain
● Using technologies originally designed for the
medical field such as positron emission
tomography (PET), functional magnetic
resonance imaging (fMRI), and
electroencephalography (EEG), neuroscientists
have teamed up with marketers to examine
physiological reactions to ads and brands through
brain scan imaging. By monitoring the brain
activity directly, scientists are learning how
consumers make up their minds by measuring
chemical activity and/or changes in the magnetic
fields of the brain as well as how they react to
commercials.
 Market Testing of Ads
● Posttests of Print Ads
○ Inquiry Tests Used in both consumer
and business-to-business market testing,
inquiry tests are designed to measure
advertising effectiveness on the basis of
inquiries generated from ads appearing
in various print media, often referred to
as “bingo cards”
 ○ Split-run tests

The weaknesses in this methodology limit its

effectiveness. For example, inquiries may not be a
true measure of the attention-getting or information-
providing aspects of the ad. The reader may be
attracted to an ad, read it, and even store the
information but not be motivated to inquire at that
particular time. Time constraints, lack of a need for
the product or service at the time the ad is run, and
other factor may limit the number of inquiries
But receiving a small number of inquiries doesn’t
mean the ad was not effective; attention, attitude
change, awareness, and recall of copy points may Major advantages of inquiry tests are that they are
all have been achieved. At the other extreme, a inexpensive to implement and they provide some
person with a particular need for the product may feedback with respect to the general effectiveness of the
respond to any ad for it, regardless of specific ad or medium used. But they are usually not very
qualities of the ad effective for comparing different versions or specific
creative aspects of an ad.
 https://www.gfk.com/products-a-z/starchmetrix/
● Recognition Tests
Perhaps the most common posttest of print ads is therecognition method,
most closely associated with GfK Starch Starch claims that
(1) the pulling power of various aspects of the ad can be assessed
through the control offered,
(2) the effectiveness of competitors’ ads can be compared through the
norms provided,
(3) alternative ad executions can be tested, and
(4) readership scores are a useful indication of consumers’ involvement in
the ad or campaign

Of these claims, perhaps the most valid is the ability to judge specific
aspects of the ad. Some researchers have criticized other aspects of the
Starch recognition method (as well as other recognition measures) on the
basis of problems of false claiming, interviewer sensitivities, and unreliable
scores:
False claiming Research shows that in recognition tests, respondents may
claim to have seen an ad when they did not.
Interviewer sensitivities. Anytime research involves interviewers, there is a
potential for bias
Reliability of recognition scores. Starch admits that the reliability and
validity of its readership scores increase with the number of insertions
tested
 ● Recall Test are several tests to measure recall of print ads. Perhaps the best known of these are the
Ipsos-ASI Next*Correct test and the Gallup & Robinson Magazine Impact Research Service (MIRS)

In addition to having the same interviewer problems as

recognition tests, recall tests have other disadvantages. The
reader’s degree of involvement with the product and/or the
distinctiveness of the appeals and visuals may lead to higher-than
accurate recall scores, although in general the method may lead
to lower levels of recall than actually exist

On the plus side, it is thought that recall tests can assess the ad’s
impact on memory. Proponents of recall tests say the major
concern is not the results themselves but how they are interpreted
 ● Day-After Recall Tests
DAR tests may favor unemotional appeals because respondents
are asked to verbalize the message.
Program content may influence recall.
A pre-recruited sample may pay increased attention to the program
and the ads contained therein because the respondents know they
will be tested the next day.
In addition, studies have shown that recall is a measure that the ad
has been received, but not necessarily accepted, and not
predictive of sales
The major advantage of day-after recall tests is that they are field tests.
The natural setting is supposed to provide a more realistic response profile.
These test are also popular because They provide norms that give
advertisers a standard for comparing how well their ads are performing
While popular, day-after recall tests also had problems, including
limited samples, high costs, and security issues (ads shown in test
markets could be seen by competitors)
● Persuasive Measures
As noted earlier in our discussion of pretesting broadcast commercials, a number of research firms
now offer measures of a commercial’s persuasive effectiveness. Some of the services offer additional
persuasion measures, including purchase, intent, and frequency-of-purchase criteria.
 Diagnostics
● In addition to measuring recall and
persuasion, copy testing firms also provide
diagnostic measures. These measures are
designed to garner viewers’ evaluations of the
ads, as well as how clearly the creative idea is
understood and how well the proposition is
communicated. Rational and emotional
reactions to the ads are also examined. A
number of companies offer diagnostic
measures, including G&R and Millward
Brown, among many others.
 Comprehensive Measures
● While each of the measures just described
provides specific input into the effectiveness of a
commercial, many advertisers are interested in
more than just one specific input. Thus, some
companies provide comprehensive approaches in
which each of the three measures just described
can be obtained through one testing program
 Test Marketing
● Many companies conduct tests designed to
measure their advertising effects in specific
test markets before releasing them nationally.
The markets chosen are representative of the
target market
● The advantage of test marketing of ads is
realism. Regular viewing environments are
used and the testing effects are minimized. A
high degree of control can be attained if the
test is designed successfully.
● The Seagram study also reveals some of the
disadvantages associated with test market
measures, not the least of which are cost and
time.
Single-Source Tracking Studies
Whereas single-source testing is a valuable tool, it still has some problems.
One
researcher says, “Scanner data focus on short-term sales effects, and as a
result capture
only 10 to 30 percent of what advertising does.”21 Others complain that the
data
are too complicated to deal with, as an overabundance of information is
available.
Still another disadvantage is the high cost of collecting single-source data

The single-source method can also be used effectively to posttest ads,

allowing for a variety of dependent measures and tracking the effects of
increased ad budgets and different versions of ad copy—and even ad
effects on sales
 Tracking Print/Broadcast Ads
● The major advantage of tracking studies
is that they can be tailored to each
specific campaign and/or situation. A
standard set of questions can track
effects of the campaign over time or
through the consumer purchase funnel.
● Some of the problems of recall and
recognition measures are inherent in
tracking studies, since many other
factors may affect both brand and
advertising recall. Despite these
limitations, however, tracking studies are
a very effective way to assess the effects
of advertising campaigns.
 ESTABLISHING A PROGRAM FOR
● MEASURING
There is no surefire way to ADVERTISING
test EFFECTS
advertising effectiveness. However, in
response to pressures to determine the
contribution of ads—traditional and
online—to the overall marketing
effort, steps are being taken to
improve this measurement task.
 Problems with Current Research Methods
● PACT principle 6 (providing equivalent test ads) should
require a minimum of effort
● Slightly more difficult are PACT principles 3, 5, and 8,
although again these factors are largely in the control of
the researcher. Principle 3 (providing multiple
measurements) may require little more than budgeting
to make sure more than one test is conducted.
● principle 5 (exposing the test ad more than once) can
be accomplished with a proper research design.
● Finally, principle 8 (sample definition) requires little
more than sound research methodology; any test should
use the target audience to assess an ad’s effectiveness
● Principles 3 and 4 on the digital side might take some
time and give and take, but can be accomplished.
The most difficult factors to control—and the principles that may best ● Last but not least is PACT principle 9, the concern for
differentiate between good and bad testing procedures—are PACT reliability and validity.
requirements 4, 7, and 9. ● This principle must carry over to online measures as
Fortunately, however, addressing each of these contributes to the well. Most of the measures discussed are lacking in at
attainment of the others.
least one of these criteria, yet these are two of the most
critical distinctions between good and bad research.
 Essentials of Effective Testing
Use a
Establish Us
consumer
communication prete
response
s objectives pos
model
Understand
Use multiple and implement
measures proper
Measuring the effectiveness of other program elements
 Measuring the Effectiveness of Sales Promotions
● A number of organizations measure sales
promotions. One firm, Market- Source,
provides marketers with a basis for
measuring the effectiveness of their
sampling programs.
Other measures of sales promotions are also available. For example,
Prognos offers a Retail Promotion Effectiveness solution that gives
retailers visibility into the factors that influence the effectiveness of all of
their promotions, allowing the retailer to make the right decision about the
right products to promote using promotional vehicles and understanding
the required inventory level
Measuring the Effectiveness of Nontraditional
Media The
The effects of
effectiveness of
shopping cart
parking lot–
signage
based media.

The effects of The

in-store radio effectiveness of
Measuring the Effectiveness of Sponsorships

● Exposure methods. Exposure methods can be classified as those that monitor the
quantity and nature of the media coverage obtained for the sponsored event and those
that estimate direct and indirect audiences.
● Tracking measures. These measures are designed to evaluate the awareness, familiarity,
and preferences engendered by sponsorship based on surveys. A number of empirical
studies have measured recall of sponsors’ ads, awareness of and attitudes toward the
sponsors and their products, and image effect, including brand and corporate images.
 Measuring the Effectiveness of Other IMC Program
Elements
One very effective approach to measuring the impact of the IMC program
is that provided by the marketing communications research company
Integration.
The company’s approach is based on the belief that integrated marketing
communications improve both the efficiency and the effectiveness of a
campaign. Integration contends that most traditional measurement
techniques focus only on the former of these
● DQ
Digital 5
advertisers seem to want to have their own effectiveness measures, while eschewing those of
traditional advertisers. What are the pros and cons of this position? Argue for one side or the other

Pros Cons

• The digital advertising has • The basic of the meas

already its own tools such as still the same with the
google analytics to measure the (impact, recall, etc)
effectiveness of the digital ads • The digital area has to
• There is a lot of new features in area to control, becau
measurement effectiveness of the data of the digital
ads, example AI (artificial measurement maybe