Assessing Advertising Effectiveness

1. Assessing Advertising Effectiveness 15

2. Advertising Research Message Research • To test effectiveness of creative message • Pretesting to eliminated ineffective ads • Posttesting to to determine if messages achieve their established objectives Media Research 2

3. Advertising Research Message Research • Attempts to ascertain audience’s characteristics and the size of that audience so that ratings can be determined Media Research 3

4. Ideal Measure of Advertising Research • Provide an early warning signal • Evaluates in terms of sales volume generated by advertising • Satisfy reliability & validity • Permit quick & inexpensive measurement 4

5. Advertising Research Methods Media Research Methods Magazine Radio Television 5

6. Media Research Methods Variety of resource materials are available to advertisers for determining potential audience sizes for specific media vehicles e.g., Competitive Media Report’s Ad $ Summary 6

7. Magazine Audience Measurement • Tally the number and characteristics of a magazine’s subscribers? • Subscriptions are collected through intermediaries • Purchased at newsstands, retailers • Distributed at public locations; or passed along by subscribers 7

8. Magazine Audience Measurement • Simmons Market Research Bureau (SMRB) • Mediamark Research, Inc. (MRI) • Specialized in measuring magazine readership and determining audience size • Provide with product/brand usage and demographic information • Use different measurement techniques 8

9. Simmons Market Research Bureau and Mediamark • Audience size and composition for over 200 publications • Broadcast exposure and usage of over 800 consumer products and services • How many female homemakers who buy sunscreen read Golf Digest? 9

10. Simmons Market Research Bureau • Number of adults • Number of users • Percent of users in categories (i.e. female) • Percent of category using product (i.e. % of all females using) • Index number • All by heavy, medium, and light user 10

11. Index Numbers -Using SMRB and/or Mediamark % of users in segment Index = ----------------------------------------- % of population in segment 11 11 Adapted from Belch & Belch

12. Magazine Audience Measurement Media-Selection • Size of potential audience • Attractiveness of vehicle coverage • Cost comparison with other vehicles • Appropriateness for advertised brand 12 12

13. Radio Audience Measurement 13

14. TV Audience Measurement 14

15. Advertising Research Methods Message Research Methods Recognition & Recall Emotions Physiological Arousal Persuasion Sales Response 15

16. Message Research Methods • Starch readership service (magazines) • Burke day-after recall (TV) • Bruzzone tests (TV) Recognition & Recall Emotions Physiological Arousal Persuasion Sales Response 16

17. Measures of Recognition & Recall Starch readership service 17

18. Message Research Methods • Starch readership service (magazines) More a measure of attention-getting & reading than of recall Recognition & Recall Emotions Physiological Arousal Persuasion Sales Response 18

19. Message Research Methods • Burke Day-After Recall (TV): DAR When should recall be used? What are the problems? Recognition & Recall Emotions Physiological Arousal Persuasion Sales Response 19

20. CPM The 8 Stages of Consumer Information Processing 20

21. When does Memory Matter? When information in memory is used as basis for evaluation (memory-based judgments) When information in memory is useful for distinguishing brand from competition When information in memory is not available in retail/decision context 21

22. Message Research Methods • Online Processing Attitude formed during ad exposure • Memory-Based Processing Attitude formed after exposure Recognition & Recall Emotions Physiological Arousal Persuasion Sales Response 22

23. Measures of Recognition & Recall Bruzzone- tested commercial for American Express 23

24. Measures of Recognition & Recall 24

25. Message Research Methods • The warmth monitor • Market Fact’s TRACE • BBDO’s emotional measurement system Recognition & Recall Emotions Physiological Arousal Persuasion Sales Response 25

26. Message Research Methods • Galvanometer (GSR) • Pupillometer • Voice-pitch analysis (VOPAN) Recognition & Recall Emotions Physiological Arousal Persuasion Sales Response 26

27. Message Research Methods Recognition & Recall • ASI theater testing • ARS Persuasion method by rsc The Quality Measurement System(rsc for short) Emotions Physiological Arousal Persuasion Sales Response 27

28. Conclusions by rsc • Ad copy must be distinctive • Ad weight without persuasiveness is insufficient • The selling power of advertising wears out over time 28

29. Direct Response Advertising West Virginia Tourism Fahlgren

30. Message Research Methods Recognition & Recall • IRI’s BehaviorScan • Nielsen’s SCANTRACK Emotions Physiological Arousal Persuasion Sales Response 30

31. Measures of Sales Response Single-Source Systems Gather purchase data from panels of households using optical scanning equipment and merge it with household demographic characteristics and with information about casual marketing variables that influence household purchases 31

32. Measuring Web Ads • Major future increases in Internet advertising are probable • Difficulty of tracking return on investment and the lack of reliable and valid measurement information are barriers • The development of accurate measurement systems is the key for future 32