Transcript Document

Advertising Principles
and Practices
Evaluation of
Effectiveness
Outstanding in the Field
• 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.
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Types 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.
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Stages 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
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Facets: 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.
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Table 19:1
Effect
Perception
Awareness/Noticed
Attention
Recognition
(Aided )
Relevance
Emotion
Liking/Disliking
Desire
Cognition
Interest
Comprehension/
Confusion
Recall (Unaided)
Brand Recall/
Linkage
Differentiation
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?
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Table 19:1
Effectiveness Research Questions
Effect
Research Questions
Persuasion
Attitude
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?
Preference
Intention
Argument/Counter
Argument
Believability/Conviction
Trust
Association
Personality/Image
Self Identification
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Copy 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
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Message 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.
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During Execution:
Concurrent 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
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Posttesting:
After 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
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Media 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
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Table 19:2
Message Effectiveness Factors
Key Message
Effects
Surrogate
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
Understanding
Adv; PR; Sales; Direct
Recall
Adv; SP; PR, PoP, Specialties
Cognitive
Adv; PR; Pkging
Affective
Emotions & Liking
Adv; Sales Promo, Pkging; PoP
Appeals
Adv; PR; Sales; Events/Spnsrshps
Resonate
Adv; PR; Events/Spnsrshps
Attitudes
Preference/Intention
Adv; PR; Direct
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
Repeat Purchase
SP; Sales; Direct
Adv; SP; Sales; Direct, Specialties
Persuasion
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Direct Response
• The objective is to generate
an immediate behavior
response (transaction, buy).
• Use toll-free numbers, mailin 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)
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A Sales
Promotion
Breakeven
Analysis
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.
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Public 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?
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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)
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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
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Special Advertising Situations
• Retail
advertising
• B2B
advertising
• International
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
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Special Advertising Situations
• Retail
advertising
• B2B
advertising
• International
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
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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.
Prentice Hall, © 2009
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