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ADVERTISING
EFFECTIVENESS
        Presented By:
            Shilpa
           Meenal
            Monu
 1
          Chanchal
     BIT Noida-BBA Batch
INTRODUCTION
•Itwas considered 3 or 4 decades ago that the evaluation of
advertising effectiveness is not easy. Which holds true even
today.

•Despite of all the efforts made over the last three or four
decades to make advertising enable to management concepts
of goal setting, control and evaluation, there are still vague
areas when one comes to evaluating the results of advertising.
       2
•Proving the commercial value of advertising, that is, its
contribution to shareholder value, rather than just its
creative merit is what is meant by advertising effectiveness.
THE NEED TO MEASURE
ADVERTISING
EFFECTIVENESS

 To justify money spent (budgets).
 To determine if the advertising campaign should be stopped or
  continued
 To determine possible areas of modifications in the campaign
  messages
 To get some evidence of the relevance of advertising & the
  practitioners.


                                                              3
REASONS FOR AND AGAINST
MEASURING EFFECTIVENESS
   Reasons to Measure                 Reasons Not to Measure

   Avoid Costly Mistakes
    Avoid Costly Mistakes
   Avoid Costly Mistakes
    Avoid Costly Mistakes                Cost of Measurement
                                         Cost of Measurement
  (e.g., Bad Print/TV Ads)
  (e.g., Bad Print/TV Ads)
 Evaluate Strategies (e.g.,
  Evaluate Strategies (e.g.,
    Evaluate Strategies
    Evaluate Strategies                Problems With Research
                                       Problems With Research
 which medium should be used)
 which medium should be used)
Increase Efficiency of Advertising    Disagreement About to Test
                                      Disagreement About What What
                                      Disagreement About to Test
                                      Disagreement About What What
    Increase Efficiency of
 Increase Efficiency of Advertising
     Increase Efficiency of
in General (e.g., Avoid too
 in General (e.g., Avoid too                         to Test
                                       (e.g., Increase inTest Volume or
                                                      to Sales
                                        (e.g., Increase in Sales Volume or
    Advertising in General
    Advertising in General
creative/sophisticated Ads)               Impact on Corporate Image)
                                           Impact on Corporate Image)
creative/sophisticated Ads)
  Determine If Objectives             Creative Objections (e.g., creative
                                      Creative Objections (e.g., creative
  Determine If Objectives
  Determine If Objectives
  Determine If Objectives             depts. Say that tests are not true
       Are Achieved                   depts. Say that tests are not true
       Are Achieved
       Are Achieved
       Are Achieved                   measures)
                                      measures)
                                                                        4
MEASURING ADVERTISING
EFFECTIVENESS
What to test                              Where to test
                                          Where totest
                                            Where to test
                                           Where
                                                   to test
What to test
   Creative decisions
                                           
                                           
                                            • Laboratory tests are
                                              Laboratory tests (People are
                                              Laboratory tests (People
                                            •brought to a location & tests
                                              Laboratory tests
    Creative decisions
                                            (consumer ajury e.g., & tests
                                               brought to location

   Media decisions                         (consumer jury test,
                                               are implemented test,
                                              are implemented e.g.,eye
                                                                   eye
   Media decisions                         portfolio test etc.)
                                              tracking, Galvanometer)
                                            portfolio test etc.)
                                               tracking, Galvanometer)

   Budgeting decisions
    Budgeting decisions                    
                                           • Fieldtests (e.g., survey
                                            •studies)tests survey
                                              Field tests (e.g.,
                                              Field tests
                                              Field
                                               studies)




    How to test
    How to test                            When to test
                                           When totest
                                          When to test
                                           When to test
    • Testing guidelines
    • Testing guidelines
                                           Pretesting
                                             Pretesting
                                           • Pretesting
                                            • Pretesting
    • Appropriate tests [e.g.,
    • Appropriate tests [e.g.,
    Concept generation testing (pre) or
    Concept generation testing (pre) or    Posttesting
                                           • Posttesting
                                             Posttesting
                                            • Posttesting
    Market testing (post)]
    Market testing (post)]
                                                                         5
TYPES OF ADVERTISING
EVALUATION
 Pre testing of
  media,messages,markets,budgeting and
  scheduling
 Post testing of media, messages,budgeting and
  scheduling




                                                  6
PRE TESTING
    The purpose of advertising is to convey relevant
    Information to enable consumers to recognize
    products, changes in attitudes and ultimately results
    in a purchase.

Pre-test is to reduce the of risks advertisers, it can be
     done:
1.    To avoid the big mistakes.
2.   Several programs on the basis of merit.
3.   Preliminary testing of ads to reach goals.
4.   Lord save advertising expenses.                        7
PRE-TESTING PRINT MEDIA
ADS
 Order of merit test
 Paired Comparison

 Portfolio test

 Mock magazine test

 Perceptual meaning studies

 Focus group

 Direct Questioning




                               8
POST TESTING THE ADS

   Penetration test

   Error in recognition measurement




                                       9
ADVERTISING OBJECTIVES &
HOW SUCCESS CAN BE
MEASURED

   Stimulate an increase in sales- Number of enquiries from
    advert, - Number of enquiries converted into sales

   Remind customers of the existence of a product- Test
    customer awareness both before and after the advertising
    campaign, - Number of enquiries

   Inform customers- Test customer awareness, - Number of
    requests for further information

   Build a brand image- Test customer awareness of brand
    recognition and perceived values                           10
   Sales- Levels of repeat purchase

   Build customer loyalty and relationship- Levels of
    customer retention

   Change customer attitudes- Measure demographic
    profile of purchases
    - Measure type of goods ordered by new purchasers
    - Compare with previous data




                                                         11
PROBLEMS WITH MEASURING
ADVERTISING EFFECTIVENESS

 Irrational consumer behaviour
 Lack of widely acceptable scientific approach
 The difficulties of determining consumer influences (multiple
  factors)
 The validity and reliability of data gathered
 Suitability of research methods & instruments used
 Poor research skills & Sampling issues
 Inadequate resources/funding
 Setting non-SMART objectives

                                                                  12
TIPS FOR A MORE EFFECTIVE
ADVERTISING
 Using colour more than doubles the growth in awareness of
  local press ads - full colour is nearly 3 times more effective
  than mono only
 Increasing the frequency of advertising helps to significantly
  increase levels of awareness
 Longer campaigns equals higher awareness levels
 Advertisers should show products where appropriate and also
  prominently and clearly display brand logos
 Increasing colour and advertising more often across the week
  can more than double awareness uplift
 Increasing colour and the number of insertions can increase
  awareness uplift by almost 3x
 Making use of Co-op (IMC) advertising can help to boost your
  advertising.
 Setting SMART objectives
                                                              13
14

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Advertising ppt

  • 1. ADVERTISING EFFECTIVENESS Presented By: Shilpa Meenal Monu 1 Chanchal BIT Noida-BBA Batch
  • 2. INTRODUCTION •Itwas considered 3 or 4 decades ago that the evaluation of advertising effectiveness is not easy. Which holds true even today. •Despite of all the efforts made over the last three or four decades to make advertising enable to management concepts of goal setting, control and evaluation, there are still vague areas when one comes to evaluating the results of advertising. 2 •Proving the commercial value of advertising, that is, its contribution to shareholder value, rather than just its creative merit is what is meant by advertising effectiveness.
  • 3. THE NEED TO MEASURE ADVERTISING EFFECTIVENESS  To justify money spent (budgets).  To determine if the advertising campaign should be stopped or continued  To determine possible areas of modifications in the campaign messages  To get some evidence of the relevance of advertising & the practitioners. 3
  • 4. REASONS FOR AND AGAINST MEASURING EFFECTIVENESS Reasons to Measure Reasons Not to Measure Avoid Costly Mistakes Avoid Costly Mistakes Avoid Costly Mistakes Avoid Costly Mistakes Cost of Measurement Cost of Measurement (e.g., Bad Print/TV Ads) (e.g., Bad Print/TV Ads) Evaluate Strategies (e.g., Evaluate Strategies (e.g., Evaluate Strategies Evaluate Strategies Problems With Research Problems With Research which medium should be used) which medium should be used) Increase Efficiency of Advertising Disagreement About to Test Disagreement About What What Disagreement About to Test Disagreement About What What Increase Efficiency of Increase Efficiency of Advertising Increase Efficiency of in General (e.g., Avoid too in General (e.g., Avoid too to Test (e.g., Increase inTest Volume or to Sales (e.g., Increase in Sales Volume or Advertising in General Advertising in General creative/sophisticated Ads) Impact on Corporate Image) Impact on Corporate Image) creative/sophisticated Ads) Determine If Objectives Creative Objections (e.g., creative Creative Objections (e.g., creative Determine If Objectives Determine If Objectives Determine If Objectives depts. Say that tests are not true Are Achieved depts. Say that tests are not true Are Achieved Are Achieved Are Achieved measures) measures) 4
  • 5. MEASURING ADVERTISING EFFECTIVENESS What to test Where to test Where totest  Where to test  Where to test What to test  Creative decisions   • Laboratory tests are Laboratory tests (People are Laboratory tests (People •brought to a location & tests Laboratory tests Creative decisions (consumer ajury e.g., & tests brought to location   Media decisions (consumer jury test, are implemented test, are implemented e.g.,eye eye  Media decisions portfolio test etc.) tracking, Galvanometer) portfolio test etc.) tracking, Galvanometer)   Budgeting decisions Budgeting decisions  • Fieldtests (e.g., survey •studies)tests survey Field tests (e.g., Field tests Field studies) How to test How to test  When to test  When totest When to test When to test • Testing guidelines • Testing guidelines  Pretesting Pretesting  • Pretesting • Pretesting • Appropriate tests [e.g., • Appropriate tests [e.g., Concept generation testing (pre) or Concept generation testing (pre) or  Posttesting  • Posttesting Posttesting • Posttesting Market testing (post)] Market testing (post)] 5
  • 6. TYPES OF ADVERTISING EVALUATION  Pre testing of media,messages,markets,budgeting and scheduling  Post testing of media, messages,budgeting and scheduling 6
  • 7. PRE TESTING The purpose of advertising is to convey relevant Information to enable consumers to recognize products, changes in attitudes and ultimately results in a purchase. Pre-test is to reduce the of risks advertisers, it can be done: 1. To avoid the big mistakes. 2. Several programs on the basis of merit. 3. Preliminary testing of ads to reach goals. 4. Lord save advertising expenses. 7
  • 8. PRE-TESTING PRINT MEDIA ADS  Order of merit test  Paired Comparison  Portfolio test  Mock magazine test  Perceptual meaning studies  Focus group  Direct Questioning 8
  • 9. POST TESTING THE ADS  Penetration test  Error in recognition measurement 9
  • 10. ADVERTISING OBJECTIVES & HOW SUCCESS CAN BE MEASURED  Stimulate an increase in sales- Number of enquiries from advert, - Number of enquiries converted into sales  Remind customers of the existence of a product- Test customer awareness both before and after the advertising campaign, - Number of enquiries  Inform customers- Test customer awareness, - Number of requests for further information  Build a brand image- Test customer awareness of brand recognition and perceived values 10
  • 11. Sales- Levels of repeat purchase  Build customer loyalty and relationship- Levels of customer retention  Change customer attitudes- Measure demographic profile of purchases - Measure type of goods ordered by new purchasers - Compare with previous data 11
  • 12. PROBLEMS WITH MEASURING ADVERTISING EFFECTIVENESS  Irrational consumer behaviour  Lack of widely acceptable scientific approach  The difficulties of determining consumer influences (multiple factors)  The validity and reliability of data gathered  Suitability of research methods & instruments used  Poor research skills & Sampling issues  Inadequate resources/funding  Setting non-SMART objectives 12
  • 13. TIPS FOR A MORE EFFECTIVE ADVERTISING  Using colour more than doubles the growth in awareness of local press ads - full colour is nearly 3 times more effective than mono only  Increasing the frequency of advertising helps to significantly increase levels of awareness  Longer campaigns equals higher awareness levels  Advertisers should show products where appropriate and also prominently and clearly display brand logos  Increasing colour and advertising more often across the week can more than double awareness uplift  Increasing colour and the number of insertions can increase awareness uplift by almost 3x  Making use of Co-op (IMC) advertising can help to boost your advertising.  Setting SMART objectives 13
  • 14. 14