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Advertising
  effectiveness
Recognition
        Emotion
       Value   Attitude
   Purchase




              Energy
                    Behaviour
              Commitment Metrics
                                   1
What makes advertising effective?


Effective advertising is a powerful tool.

It has the power to shape the values and beliefs of consumers.

It has the power to inform, entertain, engage and change behaviour.

It has the power to attach feelings to brands.

                  It has the power to increases sales, revenue and
                  profit.

                  While the potential of effective advertising is
                  undeniable, it is very rarely fulfilled in practice.

                  So what makes an individual ad effective and how
                  do you capture it?

                                                                         2
What makes advertising effective?


Advertising effectiveness is much deeper than establishing whether
respondents are ‘aware’ of an advertisement, or if it is simply ‘liked’.

Most will agree that for an advertisement to be effective, there are three
main conditions which must be fulfilled.



               1        Exposure


               2        Sensory Registration


               3        Impact on attitudes & behaviours


                                                                             3
What makes advertising effective?


    1        Exposure
This first condition almost goes without saying…to be effective the target
audience must first be exposed to it.

But with consumers exposed to millions of messages each year, exposure
alone is not enough.




                                                                             4
What makes advertising effective?


    2         Sensory Registration

This second condition refers to the ability of the advertising to register at the
conscious or sub-conscious level.

The messages registered from advertising are not always top of mind.

Yet traditionally, advertising research has focused on
the ability to recall and articulate top of mind information.

Cognitive psychology theories emphasise that in
the purchase decision, the brain recalls more than top
of mind information.

As not all information recall is top of mind, traditional
measures must be supplemented with measures that
go deeper.

                                                                                    5
What makes advertising effective?


    3        Impact on attitudes & behaviours

The third condition is that the advertising ultimately creates an impact.

Effective advertising campaigns may shape values.

They may cause consumers to question long held beliefs.

                                      They may impact on how consumers
                                      feel about a product or service.

                                      They may impact on what, how and
                                      when consumers buy.

                                      But if the impact of advertising is not
                                      immediately obvious to the target
                                      audience, how do you measure it?

                                                                                6
Measuring advertising effectiveness


To truly measure advertising effectiveness, the research design must
provide insight into exposure, sensory registration and impact.

Traditional advertising tracking approaches fall short if they only
focus on:
• awareness
• recall
• brand/product perception & propensity to consider
• current and future behavioural response to the call to action (eg
   behavioural response)

All these measures are important but they only measure what is top of mind.

In practice, these measures tend to be more aligned to the size of the
advertising budget rather than to advertising effectiveness.


                                                                              7
Measuring advertising effectiveness


Just as effective advertising ultimately impacts on emotive and rational
purchase drivers, advertising effectiveness research must go
beyond the traditional measures.

Illuminate’s ad tracking approach:
• supplements the traditional measures with the key rational and emotive
    influences and drivers, relevant to the product or brand category
• goes beyond short-term measures to tracking how the brain processes
    the advertising message, including where there is no stated recall
• identifies the level of activation of competing brands in the consumer’s
    mind
• goes beyond fleeting consumer feelings to identify how brand choice is
    influenced by the emotive cues from advertising




                                                                             8
When to measure

                  When to measure is arguably as important as
                  what to measure

                  Time between exposure and surveying
                  impacts on the results

                  Some studies suggest recall of advertising
                  falls rapidly after exposure before stablising

                                       Erosion of recall




                     Week 1   Week 2     Week 3     Week 4   Week 5   Week 6

                                       Unprompted       Prompted



                                                                               9
When to measure

    Continuous                             Pulse/Wave
    (daily/weekly)                         (pre and post)


    clearly identifies impact of
+   advertising on consumers’ short
    and long term memory
                                       +   robust before & after measure of
                                           specific marketing activity



+
    short term internal and external
    market shocks are smoothed out
                                       +   may require smaller sample
                                           sizes, saving money

    appropriate for measuring long-    +   appropriate for measuring short-

+   term marketing strategy
                                           term tactical campaigns

    impact of advertising can be       -   time between exposure and
                                           surveying unduly impacts on
+   correlated against other
    continuous data (eg
                                           results

    TARPS, sales, enquiries, etc)
                                       -   unable to correlate against
                                           media schedule without
-   may require larger sample
    impacting on cost
                                           repeating exercise many times


                                                                        10
When to measure


Because timing can impact on results, Illuminate recommends the
continuous collection of data for most campaigns.

This may be done via a fixed sample of daily or weekly interviews where the
campaign length is greater than one month.

Ideally continuous collection of data should span both periods where the
advertising is on and off air.

It is only by measuring both periods of time that organisations are able to:
• understand the incremental gains, or attrition, in key metrics
• identify advertising wear-out and the need for new creatives
• refine the media schedule to deliver optimal results (often with reduced
    spend)



                                                                               11
Questions?
Please contact the Illuminate team to discuss your advertising
tracking needs or questions.

Our specialists will work with you to create a customised
advertising tracking approach to measure the effectiveness of your
campaign.


Craig Frost
Managing Director
p. 1800 185 006
enquiries@illuminateresearch.com.au

                                                                 12

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Illuminate Ad Effectiveness

  • 1. Advertising effectiveness Recognition Emotion Value Attitude Purchase Energy Behaviour Commitment Metrics 1
  • 2. What makes advertising effective? Effective advertising is a powerful tool. It has the power to shape the values and beliefs of consumers. It has the power to inform, entertain, engage and change behaviour. It has the power to attach feelings to brands. It has the power to increases sales, revenue and profit. While the potential of effective advertising is undeniable, it is very rarely fulfilled in practice. So what makes an individual ad effective and how do you capture it? 2
  • 3. What makes advertising effective? Advertising effectiveness is much deeper than establishing whether respondents are ‘aware’ of an advertisement, or if it is simply ‘liked’. Most will agree that for an advertisement to be effective, there are three main conditions which must be fulfilled. 1 Exposure 2 Sensory Registration 3 Impact on attitudes & behaviours 3
  • 4. What makes advertising effective? 1 Exposure This first condition almost goes without saying…to be effective the target audience must first be exposed to it. But with consumers exposed to millions of messages each year, exposure alone is not enough. 4
  • 5. What makes advertising effective? 2 Sensory Registration This second condition refers to the ability of the advertising to register at the conscious or sub-conscious level. The messages registered from advertising are not always top of mind. Yet traditionally, advertising research has focused on the ability to recall and articulate top of mind information. Cognitive psychology theories emphasise that in the purchase decision, the brain recalls more than top of mind information. As not all information recall is top of mind, traditional measures must be supplemented with measures that go deeper. 5
  • 6. What makes advertising effective? 3 Impact on attitudes & behaviours The third condition is that the advertising ultimately creates an impact. Effective advertising campaigns may shape values. They may cause consumers to question long held beliefs. They may impact on how consumers feel about a product or service. They may impact on what, how and when consumers buy. But if the impact of advertising is not immediately obvious to the target audience, how do you measure it? 6
  • 7. Measuring advertising effectiveness To truly measure advertising effectiveness, the research design must provide insight into exposure, sensory registration and impact. Traditional advertising tracking approaches fall short if they only focus on: • awareness • recall • brand/product perception & propensity to consider • current and future behavioural response to the call to action (eg behavioural response) All these measures are important but they only measure what is top of mind. In practice, these measures tend to be more aligned to the size of the advertising budget rather than to advertising effectiveness. 7
  • 8. Measuring advertising effectiveness Just as effective advertising ultimately impacts on emotive and rational purchase drivers, advertising effectiveness research must go beyond the traditional measures. Illuminate’s ad tracking approach: • supplements the traditional measures with the key rational and emotive influences and drivers, relevant to the product or brand category • goes beyond short-term measures to tracking how the brain processes the advertising message, including where there is no stated recall • identifies the level of activation of competing brands in the consumer’s mind • goes beyond fleeting consumer feelings to identify how brand choice is influenced by the emotive cues from advertising 8
  • 9. When to measure When to measure is arguably as important as what to measure Time between exposure and surveying impacts on the results Some studies suggest recall of advertising falls rapidly after exposure before stablising Erosion of recall Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Unprompted Prompted 9
  • 10. When to measure Continuous Pulse/Wave (daily/weekly) (pre and post) clearly identifies impact of + advertising on consumers’ short and long term memory + robust before & after measure of specific marketing activity + short term internal and external market shocks are smoothed out + may require smaller sample sizes, saving money appropriate for measuring long- + appropriate for measuring short- + term marketing strategy term tactical campaigns impact of advertising can be - time between exposure and surveying unduly impacts on + correlated against other continuous data (eg results TARPS, sales, enquiries, etc) - unable to correlate against media schedule without - may require larger sample impacting on cost repeating exercise many times 10
  • 11. When to measure Because timing can impact on results, Illuminate recommends the continuous collection of data for most campaigns. This may be done via a fixed sample of daily or weekly interviews where the campaign length is greater than one month. Ideally continuous collection of data should span both periods where the advertising is on and off air. It is only by measuring both periods of time that organisations are able to: • understand the incremental gains, or attrition, in key metrics • identify advertising wear-out and the need for new creatives • refine the media schedule to deliver optimal results (often with reduced spend) 11
  • 12. Questions? Please contact the Illuminate team to discuss your advertising tracking needs or questions. Our specialists will work with you to create a customised advertising tracking approach to measure the effectiveness of your campaign. Craig Frost Managing Director p. 1800 185 006 enquiries@illuminateresearch.com.au 12