Transcript Introduction to Advertising

Evaluation of Effectiveness
Part 5: Principles: How to Win the Battle of the
Buzz
Chapter 19
Prentice Hall, © 2009
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CHAPTER KEY POINTS
Questions We’ll Answer
• How well do you understand why and
how advertising evaluation is conducted?
• Can you list and explain the stages of
message evaluation?
• What are the key areas of media
evaluation?
• How are campaigns and IMC programs
evaluated?
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IMPACT: DOES IT WORK?
How does impact work?
• Many executive feel advertising is only
successful if it produces sales.
• Others feel advertising should
emphasize long-term brand building.
• If advertising delivers the desired
communication effects, but sales don’t
increase, was the advertising
ineffective?
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IMPACT: DOES IT WORK?
Evaluating Effectiveness
• Intuitive analysis is based on an experienced
managers judgment.
• Measurement tracks consumer responses with
structured feedback like response cards and calls.
• Formal evaluation is necessary:
– Financial stakes are high—production of :30 spot
averages $200,000; national media costs several
million.
– Advertising optimization—reducing the risk failure
through testing, analyzing, tracking performance, and
making changes to increase performance.
– Identify “best practices”—what works and what
doesn’t, so brand advertising continues to improve.
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IMPACT: DOES IT WORK?
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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IMPACT: DOES IT WORK?
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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IMPACT: DOES IT WORK?
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.
• Good evaluation plans, as well as effective
promotional work, are guided by a model of how
people respond to advertising.
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MESSAGE EVALUATION
Copy Testing
• Companies that conduct research and perform
diagnostic methods to identify an ad’s strong and
weak points:
– Ameritest: brand linkage, attention, motivation, communication, flow of
attention and emotion through the commercial.
– ARS: persuasion, brand/ad recall, communication.
– Diagnostic research: brand recall, main idea, attribute statements
(importance, uniqueness, believability).
– IPSOS-ASI: recall, attention, brand linkage, persuasion, (brand switch,
purchase probability), communication.
– Mapes and Ross: brand preference change, ad/brand recall, idea
communication, key message delivery, like/dislike, believability,
comprehension, desire to take action, attribute communication.
– Millward Brown: branding, enjoyment, involvement, understanding, ad
flow, brand integration, feelings to ad, main stand-out idea, likes/dislikes,
impressions, persuasion, new news, believability, relevance
– RoperASW: overall reaction, strengths and weaknesses, understanding,
clutter-busting, attention, main message, relevance, appeal,
persuasiveness, motivate trial, purchase intent.
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MESSAGE EVALUATION
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.
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MESSAGE EVALUATION
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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MESSAGE EVALUATION
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? Were reach
and frequency objectives met?
• Services include Simmons-Scarborough, Arbitron,
MediaMark.
• For outdoor, traffic counts don’t equal exposure.
• For Web or Internet advertising, what is measured
and how does it compare to traditional media: hits,
click-throughs, minutes spent?
• Alternative or guerilla marketing is even more
difficult to equate to traditional media.
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MEDIA EVALUATION
Advertising ROI and
Media Efficiency
• Return on investment (cost to sales ratio) is hard to
calculate because many factors affect sales.
• How do you determine if you’re overadvertising or
underadvertising?
• Wearout—recall stabilizes or declines and irritation
increases until there’s no or less response (can be a
combo of creative impact and media buying).
• Media optimization— the goal is optimum media
performance getting the most impact for the
investment.
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EVALUATING MARKETING COMMUNICATIONS CAMPAIGNS
Why evaluate campaigns?
• Last, and perhaps most important, stage in
the development of a campaign plan.
• Determines whether the campaign’s
message and media were effective.
• Measures the overall impact on the brand,
but the pieces are still evaluated to
determine their individual effectiveness.
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EVALUATING MARKETING COMMUNICATIONS CAMPAIGNS
Marcom Tools
• Certain marketing communication functions
such as public relations and sales promotion, do
some things better than other areas.
• An integrated plan uses the best tools to
accomplish the desired effect.
Principle:
Advertising is particularly effective in
accomplishing such objectives as creating
exposure, awareness, and brand image, and
delivering brand reminders.
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EVALUATING MARKETING COMMUNICATIONS CAMPAIGNS
Direct Response
• The objective is to generate an immediate
behavior response (transaction, buy).
• Use toll-free numbers, mail-in 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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EVALUATING MARKETING COMMUNICATIONS CAMPAIGNS
Sales Promotion
• May be necessary to evaluate both trade and
consumer promotions.
• Payout analysis compares the costs of a
promotion to the expected sales.
• Breakeven analysis—finds the point at which
the total cost of the promotion exceeds the
total revenues.
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EVALUATING MARKETING COMMUNICATIONS CAMPAIGNS
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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EVALUATING MARKETING COMMUNICATIONS CAMPAIGNS
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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EVALUATING MARKETING COMMUNICATIONS CAMPAIGNS
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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EVALUATING MARKETING COMMUNICATIONS CAMPAIGNS
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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EVALUATING MARKETING COMMUNICATIONS CAMPAIGNS
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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EVALUATING MARKETING COMMUNICATIONS CAMPAIGNS
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.
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Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
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