Testing Advertising Effectiveness

Calculating the impact of your Advertising Campaign is a crucial step in evaluating your effectiveness and laying your future advertising strategy. Learn the tools of evaluating advertising.

1. Communications Effects Pyramid 20% Trial Conative 40% Liking Affective 90% Awareness Cognitive 5% Use 70% Knowledge/Comprehension 25% Preference

2. The DAGMAR Approach D efine A dvertising G oals for M easuring A dvertising R esults Action Awareness Conviction Comprehension

3. AD Effectiveness Advertising is of no use if the defined objectives of communication is not achieved. So, it is necessary to evaluate the effectiveness of advertisement at different level, starting from creation of ad-copy to running of ad on media, and also after execution of ad to know to what extent the objectives are achieved. Types of tests to measure effectiveness Following are the types of test applied in advertisement evaluation: Pre-Testing Concurrent Testing Post Testing

4. Developing an Advertising Campaign (cont’d) Evaluating Advertising Effectiveness Evaluation Assessment Pretest Evaluation of ads performed before a campaign begins Consumer Jury A panel of a product’s actual or potential buyers who pretest ads Posttest Evaluation of advertising effectiveness after the campaign Recognition Test A posttest in which individuals are shown the actual ad and asked if they recognize it Unaided Recall Test A posttest in which respondents identify ads they have recently seen but are given no recall clues Aided Recall Test A posttest that asks respondents to identify recent ads and provides clues to jog their memories

5. 1.Pre-Testing Pre-Testing follows the universal law "Prevention is better than cure". Advertising can be pretested at several points in the creative development process. Pre-Testing helps the advertiser to make a final go or no go decision about finished or nearly finished advertisement. Pre-Testing method refer to testing the potentiality of a communication message or ad-copy before printing, broadcasting, or telecasting

6. Qualitative Methods of Pre-Testing Focus Group : Focus group involve exposing the ad to a group of 8 to 12 respondents. Focus groups are used with surprising frequency for making final go or no go decision. A moderator facilitates the discussion and walk s the group through a series of issues that are outlined in discussion guide. In-depth Interview : In-depth interview involve one on one discussion with respondents. Interviews are very effective when a researcher has a good idea of critical issues but does not have a sense of  the kind of responses one will get. This method can be effectively used to generate new ad concepts and ideas. Projective Techniques : In this technique the respondent is instructed to project himself into the situation and verbalize the thoughts. projective technique can be very effective for evaluating ad concepts and for generating new ad concepts. But, it cannot be used for making final decisions.

7.   Quantitative Methods of Pre-Testing Checklist Method : Checklist method is used to test the effectiveness of ad-copy. The purpose of this method is to ensure that all elements of the ad-copy are included with due importance in the advertisement. As it is a pre-test method any omitted element of ad can be included in the copy before release of the advertisement. Consumer Jury Method : This method  involves the exposure of alternative advertisements to a sample of jury or prospects. This test is designed to learn from a typical group of prospective customers. Advertisements which are unpublished are presented before the consumer jury either in personal interviews or group interviews and their reactions are observed and responses are recorded. Sales Area Test : Under this method advertising campaign is run in the markets selected for testing purposes. The impact of the campaign is evaluated by actual sales in the selected markets. The market with high sales is considered the best market for effective sales campaign. In other markets suitable changes are made in the advertising campaign.  Questionnaire Method : It is a list of questions related to an experiment. The draft of an advertisement along with some relevant questions is to be sent to a group of target consumers or advertising experts. Their opinions are collected and analyzed to find out whether the proposed advertisement is satisfactory or not. 

8. Contd … Recall Test : Under this method, advertising copies are shown to a group of prospects. After few minutes they are asked to recall and reproduce them. This method is used to find out how far the advertisements are impressive.  Reaction Test : The potential effect of an advertisement is judged with the help of certain instruments, which measure heartbeats, blood pressure, pupil dilution etc. Their reactions reveal the psychological or nervous effects of advertising.  Readability Test : All the listeners of advertisements cannot read it equally. So respondents are drawn from different socio economic and geographical backgrounds. This method is used to find out the level of effectiveness when and advertisement is read.  Eye Movement Test : The movements of eyes of the respondents are recorded by using eye observation camera when advertisements are shown to them in a screen. This helps to find out the attention value of advertisement.

9. 2.Concurrent Testing  Concurrent testing is evaluated throughout the whole advertisement execution process. Tests are conducted while audience is exposed to different type of media. Following are the types of concurrent testing methods: Consumer Diaries : Diaries are provided to a selected customers. They are also informed to record the details of advertisements they watch, listen or read. The diaries are collected periodically. The result obtained from such a survey reveals the effectiveness of advertisement. Co-incidental Surveys : This method is also called as co-incidental telephone method. Under this method, samples of customers are selected and calls are made at the time of broadcast of the advertisement programme. The data obtained and analyzed will give a picture about the effectiveness of an advertisement. Electronic Devices : Now day’s electronic devices are widely used to measure the effectiveness of an advertisement. They are mainly used in broadcast media. These are auto meters, track electronic units etc.

10. 3. Post Testing Post testing is done to know- to what extent the advertising objectives are achieved. Following are the types of post testing methods: Recognition Test : Recognition test involves the ability of viewers to correctly identify ad, brand, or message they previously exposed to. The types of recognition test are:  Starch Test  - The Starch test is applied only to print ads that have already run. The interviewer shows each respondent a magazine or newspaper containing the ads being tested. For each ad the interviewer asks the respondents to reply to ad related questions. Bruzzone Test  - The Bruzzone test is conducted through mail surveys. Questionnaires containing frames and audio scripts from television commercials are sent to respondents and respondents are asked whether they recognize the ad and brand.

11. Recall or Impact Test : The recall test is designed to measure the impression of readers or viewers of the advertisement. If a reader has a favorable impression of the advertisement, he will certainly retain something of the advertisement. The measures of interest would be obtained by interviewing the readers or viewers or listeners, days after the advertisement or commercial is appeared in the newspaper, or on T.V. Interviewer asks the readers or viewers to answer some ad related questions, and in response to the question asked, the reader reveals the accuracy and depth of his impression.

12. Copyright © Houghton Mifflin Company. All rights reserved. 19 | 13 Developing an Advertising Campaign (cont’d) Evaluating Advertising Effectiveness Evaluation Assessment Pretest Evaluation of ads performed before a campaign begins Consumer Jury A panel of a product’s actual or potential buyers who pretest ads Posttest Evaluation of advertising effectiveness after the campaign Recognition Test A posttest in which individuals are shown the actual ad and asked if they recognize it Unaided Recall Test A posttest in which respondents identify ads they have recently seen but are given no recall clues Aided Recall Test A posttest that asks respondents to identify recent ads and provides clues to jog their memories

13. 3.Finished Art or Commercial Testing 3.Finished Art or Commercial Testing 1.Concept Testing 2.Rough Testing 4.Market Testing (Post-testing) 2.Rough Testing 1.Concept Testing The Testing Process Occurs at Various Stages

14. On-air Tests Dummy Ad Vehicles Consumer Juries Portfolio Tests Physiological Measures Theater Tests Rough Tests Concept Tests Reliability Tests Comprehension and Reaction Tests Pretesting Methods Laboratory Field Dummy Ad Vehicles Consumer Juries Portfolio Tests Physiological Measures Theater Tests Rough Tests Concept Tests Reliability Tests Comprehension and Reaction Tests

15. Qualitative and/or quantitative data evaluating and comparing alternative concepts Explores consumers’ responses to ad concepts expressed in words, pictures, or symbols Alternatives are exposed to consumers who match the target audience Reactions and evaluations are sought through focus groups, direct questioning, surveys, etc. Sample sizes depend on the number of concepts and the consensus of responses Explores consumers’ responses to ad concepts expressed in words, pictures, or symbols Alternatives are exposed to consumers who match the target audience profile. Reactions and evaluations are sought through focus groups, direct questioning, surveys, etc. Sample sizes depend on the number of concepts being tested and the “consensus level” of initial responses. Concept Testing Objective Method Output

16. Recall Tests Inquiry Tests Association Measures Single-Source Systems Tracking Studies Recognition Tests Recognition Tests Inquiry Tests Single-Source Systems Association Measures Recall Tests Field Post testing Methods Methods

17. Positioning Advertising Copy Testing (PACT) 1. Provide measurements relevant to objectives of advertising 2. Require agreement on how results will be used before each test 3. Provide multiple measures (Single measures aren't adequate) 4. Be based on a model of human response to communications 5. Consider multiple versus single exposure to the stimulus 6. Require alternative executions to have the same degree of finish 7. Provide controls to avoid the biasing effects of exposure context 8. Take into account basic considerations of sample definition 9. Demonstrate reliability and validity

18. Based on syllables per 100 words Other factors also considered A laboratory method Includes test and control ads Portfolio test have problems Based on # syllables per 100 words Measures comprehension efficiency A laboratory method Includes test and control ads Portfolio test problems: Halo Effects Pretesting Finished Print Ads Readability Tests Portfolio Tests Dummy Advertising Vehicles Distributed to random sample of homes Product interest may still bias results Distributed to random sample of homes

19. Theater Tests Measures: Interest in and reaction to the commercial Changes in product preferences Emotional reactions and engagement using an adjective checklist Recall of content, brand name, information, etc. Interest in the brand presented Continuous (frame-by-frame) reactions On-Air Tests Insertion in TV programs in specific markets Typically measure “Day After Recall” (DAR) as main variable of interest Split Broadcasts Theater Tests Pre-testing Finished Broadcast Ads

20. Eye tracking Pupil dilation Galvanic skin response Brain waves (EEGs) & FMRI Eye tracking Galvanic skin response Pupil dilation Physiological Measures (Lab) Testing

21. Test marketing Day after recall tests Persuasive measures Diagnostics Comprehensive measures Single-source tracking Tracking studies Single-source tracking Test marketing Comprehensive measures Diagnostics Persuasive measures Day after recall tests Post-Testing Broadcast Commercials Testing

22. 23 Conclusion 1: All Commercials Are Not Created Equal: Ad Copy Must Be Distinctive Commercials having strong selling propositions are distinctive and tend to achieve higher ARS Persuasion scores (e.g. Mentadent toothbrush with a strong USP (flexible handle for gentle brushing) scored 11.2 on ARS persuasion ) Commercials for new brands tend to be most persuasive, but commercials for established brands can be made persuasive via brand differentiation .

23. 24 Conclusion 2 —More is Not Necessarily Better: Weight Is Not Enough Ad weight means the number of gross rating points (GRP) that support an advertising campaign. An ineffective ad (not distinctive or persuasive) has no likelihood of increasing sales even if the ad weight is doubled or tripled.

24. 25 Conclusion 3 — All Good Things Must End: Advertising Eventually Wears Out Advertising ultimately wears out and must be refreshed to maintain or increase brand sales. Familiar brands have been shown to wear out more slowly than unfamiliar brands .

25. 26 Conclusion 4 —Don’t Be Stubborn: Advertising Works Quickly or Not at All Some advertisers tend to “hang in there” and wait for an ad to increase sales. Most of the sales impact occurs in the first three months of a new ad. “Sunk costs” are an issue to consider, but if an ad is not working at first, it probably never will.