Advertising MANAGEMENT

MEASURING EFFECTIVENESS OF
ADVERTISING AND
PROMOTIONAL CAMPAIGNS

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 ADVERTISING EFFECTIVENESS: BROAD
OVERVIEW

Measuring advertising effectiveness is important to assess and

understand the extent to which a specific campaign meets a
company’s objectives.

This is commonly examined by measuring the effect on sales,

brand awareness, and brand preference, among other things.

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 ADVERTISING EFFECTIVENESS: BROAD
OVERVIEW

Determining whether a campaign accomplishes its appropriate

promotional objectives

Companies must measure how promotional programs contribute

to increased sales and profits

One of the most difficult undertakings in marketing

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 ADVERTISING EFFECTIVENESS: BROAD
OVERVIEW

Objectives Vs Measures

1. Stimulate an increase in sales

-Number of enquiries from advert
- Number of enquiries converted into sales

2. Remind customers of the existence of a product

- Test customer awareness both before and after the advertising
campaign
- Number of enquiries

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 ADVERTISING EFFECTIVENESS: BROAD
OVERVIEW

Objectives Vs Measures

3 . Inform customers
- Test customer awareness
- Number of requests for further information

4. Build a brand image

- Sales
- Test customer awareness of brand recognition, recall, brand
perception, brand identity, etc

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 ADVERTISING EFFECTIVENESS: BROAD
OVERVIEW

Objectives Vs Measures

5 . Build customer loyalty and relationship

- Levels of repeat purchase
- Levels of customer retention

6. Change customer attitudes

- Measure demographic profile of purchases
- Compare with previous data

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 Pros and Cons of Measuring Effectiveness

Advantages Disadvantages

Avoid
Avoid costly
costly mistakes
mistakes Cost
Cost of
of measurement
measurement

Evaluate
Evaluate alternative
alternative strategies
strategies Research
Research problems
problems

Disagreement
Disagreement on on
Increase
Increase efficiency
efficiency in
in general
general what
what to
to test
test

Determine
Determine ifif objectives
objectives are
are Objections
Objections of
of creatives
creatives
achieved
achieved

Time
Time
 Measuring Advertising Effectiveness

What
What to
to test
test Where
Where to
to test
test
Source •• Laboratory
Laboratory tests
tests
•• Source factors
factors
Message •• Field
Field tests
tests
•• Message variables
variables
•• Media
Media strategies
strategies
•• Budget
Budget decisions
decisions

How
How to
to test
test When
When to
to test
test
•• Testing
Testing guidelines
guidelines •• Pretesting
Pretesting
•• Appropriate
Appropriate tests
tests •• Posttesting
Posttesting
 ADVERTISING EFFECTIVENESS: WHAT TO TEST

Testing the Method: Choosing the appropriate method will have a

substantial impact on its success. Therefore, is important to
determine how well the chosen program is working and to measure
its performance against a predetermined standard. The testing
process should consider the following
 
a) Advertising Method (ex: Banner vs. sponsorship)
b) Subclass (ex: regular vs. content sponsorship)
c) Location (ex: Banner at the top or Sky-Scraper on the side) 
d) Time (ex: pre or post product release) 
e) Size (ex: Pop-up (full page) or Banner (small bar at the top of the page)) 
f) Vehicle Option Source Effect - e.g. perception through pop up ad or Banner

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 ADVERTISING EFFECTIVENESS: WHAT TO TEST

Testing the Content:

If the intended objective of an ad is to get consumers to try a new

product that is being launched, the marketers might test the
following: 
 

a) If the advertisement is effective in attracting consumers

attention 
b) If it is informative enough to allow the consumers to evaluate
c) Is the ad persuasive enough to convince the consumers to try
d) Is the content memorable to ensure the consumers will
remember
e) If the ad content is appealing to it’s intended target market

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 ADVERTISING EFFECTIVENESS: WHAT TO TEST

Testing the Media Strategies

Examining the media options identified and the media planning for
running an advertising campaign for a specific time period
 

a) Type of media –Social networking, Print Media, Broadcast

Media, Visual Media, Audio, etc
b) Media Combinations 
c) National Channels– most widely viewed media
d) Local Media: Language Preference
e) Billboards, Websites, Internet, etc depending on target
audience

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 ADVERTISING EFFECTIVENESS: WHAT TO TEST

Testing the Budget Decisions:

Finally, the advertisers often try to examine effects of their budget

decisions on the ad’s effectiveness. Address the following
 
a) Is the budget allocated for campaign appropriate for its size?
b) Will a larger budget increase sales?
c) Is the allocated budget greater than the anticipated sales?
d) Should more money be spent in enhancing the current
campaign? 

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ADVERTISING EFFECTIVENESS: WHERE TO TEST

Laboratory Testing: In a lab testing environment, participants from

the target market are brought in to be asked questions about the ad
or to evaluate their reaction towards it.

The major advantage of using this type of testing environment is the

control it providers for the researchers

The major disadvantage of using this type of testing environment is

the lack of realism. The general consensus is that when people are
brought into a lab they may scrutinize the ads much more than
they would at home – leading to biased responses.
 
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ADVERTISING EFFECTIVENESS: WHERE TO TEST

Field Testing: In a field test, researchers might go out to the

participants’ homes or offices and observe their reaction to the ad. It
provides more realistic opinions of respondents as they consider
external factors, competition, etc.
 

The major disadvantage of field testing is the lack of control. The

participants may evaluate the ad based on factors outside the
attributes of the ad itself (their mood, feelings towards the
company, feelings about the competition, etc.).

Field testing often requires a larger investment of time and money.

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 Pretesting Methods

Laboratory Field
Consumer Juries Dummy Ad Vehicles

Portfolio Tests On-air Tests

Physiological Measures

Theater Tests

Rough Tests

Concept Tests

Readability Tests
Comprehension and Reaction
Tests
 Post testing Methods

Recall
Recall Tests
Tests

Tracking
Tracking Association
Association
Studies
Studies Measures
Measures

Methods
Methods

Recognition
Recognition Single-Source
Single-Source
Tests
Tests Systems
Systems

Inquiry
Inquiry Tests
Tests
ADVERTISING EFFECTIVENESS: WHEN TO TEST

Pre-testing: Actions taken before campaign is executed. 

Comprehension and reaction testing: The concern is whether the

ad conveys the meaning intended, and also the consumer's reaction
to the ad.
Reaction tests, Personal interviews, group interviews, and focus
groups have all been used to assess these responses. Examples of
questions asked to consumers are:
1. Which ad did you find most interesting? 
2. Which of these ads would interest you the most? 
3. Which layout would be most effective in causing you to buy? 
 
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ADVERTISING EFFECTIVENESS: WHENTO TEST

PRE TESTING

1. Portfolio tests (print) – RECALL DATA on folder of

different versions of “TEST advertisements” viewed in
many instances.

2. Readability tests (print) – Legibility, Comprehension,

Text, Short sentences, personal words and references.
E.g. conveying the Best Message using the Best of
Words and using short sentences

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ADVERTISING EFFECTIVENESS: WHEN TO TEST

PRE TESTING

3. Dummy advertising vehicles (print) - Dummy magazines

contain regular test advertisements inserted. These pretend
magazines are distributed to a random sample of households.
Readers are encouraged to observe and later they are asked
questions about the editorial and the advertisements.

4. Theater tests (broadcast)

5. On-air tests – single source ad research – inserting
commercials into actual TV and/OR Radio Programs
in certain test markets
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ADVERTISING EFFECTIVENESS: WHEN TO TEST

PRE TESTING

Halo effect-- sometimes participants rate an ad good on all

characteristics because they like a few and overlook specific
weaknesses. This Halo effect distorts the ratings. 

Preferences for specific types of advertising may overshadow

objectivity-- Ads that involve emotions or pictures may receive
higher ratings or rankings that those employing copy, facts, or
rational criteria. The latter may be judged less favorably by
participants who prefer emotional appeals.

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 ADVERTISING EFFECTIVENESS: WHEN to test

PRE TESTING

Physiological Measures: This involves a laboratory setting in

which physiological responses are measured. They indicate the
receiver’s involuntary response - thus eliminating biases associated
with voluntary measures. This includes:

1. Pupil dilation- designed to measure dilation and constriction of

the pupils of the eyes in response to stimuli. Advertisers have used
this to evaluate product and package design as well as to test ads.
Pupil dilation suggests a stronger interest and response to an ad.

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 ADVERTISING EFFECTIVENESS: WHEN to test

2. Eye tracking- viewers are asked to view an ad while a sensor

aims a beam of light at the eye and follows the movement to show
the spot on which the viewer is focusing. This shows how long
viewer is focusing on each image and the sequence of viewing.  

Key Points:
Pretesting can help companies improve their ads and save them
money before it is too late. However, many marketers skip pre-
testing because many believe being first in the market offers them
an advantage over competitors.

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 ADVERTISING EFFECTIVENESS: WHEN to test

POST TESTING

Post-testing: Occurs after the ad has been in the field. It is

designed to determine if the campaign is accomplishing the
objectives.

Inquiry Tests: designed to measure advertising effectiveness on the

basis of inquiries generated from ads. The inquiry may take the
form of the number of coupons returned, phone calls generated
immediately after an ad release, or direct inquiries through reader
cards.

Recognition Tests: To identify the recognition of the Brand by

the target audience – do potential buyers recognize the brand
easily
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 ADVERTISING EFFECTIVENESS: WHEN to test

POST TESTING

Recognition tests – EXAMPLE

1. Noted: % of readers of an issue who remembered seeing the

ad
2. Associated: % of readers who saw part of the ad that clearly
indicates the brand or advertiser
3. Read Most: % of readers who read 50% or more of the
material in the ad

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 ADVERTISING EFFECTIVENESS: WHEN to test

POST TESTING

Recall tests:  Traditional interviews with Web users help determine

recall and whether viewers remember the ads they see.

Scores are based on percentage of respondents who can

accurately recall the ad, idea communication, and likelihood of
purchase.

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 ADVERTISING EFFECTIVENESS: WHEN to test

POST TESTING

Running split-run tests: In this case the variations of the ad appear

in different websites, targeting different audience which
examines specific elements of the ad or variations on it. 

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 ADVERTISING EFFECTIVENESS: WHEN to test

POST TESTING

QUANTITATIVE METHODS

Measuring the effectiveness of the internet

ADVERTISING is done by variety of methods, most of
which can be done electronically.

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 ADVERTISING EFFECTIVENESS: WHEN to test

POST TESTING

Hits: The number of times that a specific component of a site is

requested. 

Since perhaps 5 out 6 "hits" are for graphic images, the number
of "hits" can be grossly misleading. Usually people mean by "hits"
the number of times a  webpage has been seen, but to be precise, the
better term is "page views" or "page impressions."

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 ADVERTISING EFFECTIVENESS: WHEN to test

POST TESTING

Page impressions or Page views: the number of times a

webpage has been requested by the server

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 ADVERTISING EFFECTIVENESS: WHEN to test

POST TESTING

Banner views: The number of times a banner has been viewed.

Almost the same as "page views," but some banner server 

programs don't count the banner view unless the visitor stays on
the page  long enough for the banner to be fully downloaded
from the banner server.

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 ADVERTISING EFFECTIVENESS: WHEN to test

PACT – Positioning Advertising Copy Testing

Principles ADOPTED AND PRACTISED by the largest ad agencies

for conducting appropriate effectiveness studies

Establish communications objectives

1. Use a consumer response model

2. Use both pre and post tests
3. Use multiple measures

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