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Effective AdvertisingSurvey Chris Generose Ronald Fitser Philip Russin
Overview Exploration Data Collection Data Preparation Graphs & Summary Measures of relevant data Analysis Conclusions Recommendations Survey Improvement
Exploration Advertising is used by almost every major business to attract consumers. Each Ad is tailored to target a certain demographic of consumers It is used to promote the brand, product or service, and company name. Many different forms of advertising make it difficult for businesses to chose. With billions of dollars spent each year on advertising, companies need to find the most effective type to invest in.
Exploration Each type of Ad appeals to every consumer differently. Must identify which type has the greatest impact on influencing consumers’ purchase decisions. One of the most difficult activities for a business/manager to decide upon. There has been much debate over the most effective form of advertising.
Exploration - Internet Advertising The internet is widely considered the most measurable of advertising media In its most common use, the term online advertising comprises all sorts of banner advertisements, email advertising, in game advertising, and keyword advertising. Internet advertising stimulates off-line sales too Social media marketing is a powerful strategy that will get your business attention and massive amounts of traffic. There is no other low-cost promotional method out there that will easily give you large numbers of visitors, some of whom may come back to your website again and again.
Internet Advertising (cont.) Online advertising has been found to be effective both in communicating corporate messages and in strengthening brand equity. Additionally, the internet offers more freedom of action for consumers, who can select a time and place for their website browsing. It is also the cheapest type of ad
Exploration – TV Advertising A majority of marketers said TV advertising has decreased in effectiveness over the past couple of years, according to a study by the Association of National Advertisers and Forrester Research ANA's 2008 TV & Everything Video Forum in New York, found that 62% of marketers held that opinion The migration of some of that ad spending to the Web continues, with 87% of the respondents saying that they would spend more on Web advertising this year than last year. Viewing of TV commercials tends to be passive Most expensive type of ad
Exploration – Print Advertising Viewing print ads is more active Believed that readers will remember the ads in print media because they are aware of what they are reading and seeing. The process of scanning the pages means constantly making decisions, with relatively high attention, and this active selection is maintained throughout the reading of the issue. Reading a magazine requires more mental engagement than viewing television. Moreover, exposure to a magazine ad is under the reader’s control, whereas exposure to a TV commercial is not in the viewer’s control. Relatively cheap
Exploration – Radio Advertising Listening is viewed as passive Radio is near to the point of sale. Radio addresses its target groups immediately prior to purchase and therefore provides the decisive impulse for the sale. Radio usage is especially high during daytime – when heads of household do their shopping – so radio is often the medium used last before purchase. Relatively cheap
Questions Overall Question: What is the most effective form of advertising media used to influence consumers’ purchase decisions? Does media exposure influence consumers’ purchase decisions? Is there a correlation between exposure and consumer’s perception of effectiveness? Research Hypothesis: Internet marketing is the most effective form of advertising media used to influence consumers’ purchase decisions.
Relevant Factors Age & Gender Exposure vs. Effectiveness Exposure to every different type of media on a daily basis How much exposure? Influence vs. Effectiveness Ad’s influence & impact on consumers’ purchase decisions Debate over which advertising media is the most effective Print & Radio ads have lost their effectiveness and are being considered “obsolete” TV ads are rapidly losing their effectiveness Internet ads are becoming more popular and have been assumed to be the most effective
Data Collection 10 Question Survey Target Audience: Anyone 18 & older who makes purchase decisions Sampling Plan: Random Sample based on Age (18 & older) Summary of Respondents: Population Size – Roughly 0ver 200 million Sample Size - 112 Responses Survey Distribution: Online Survey utilizing Survey Monkey (47) Paper Survey handed out Face-to-Face on Wilkes Campus (65)
Conclusions Gender does not impact the perception of Internet effectiveness Age does impact the perception of Internet effectiveness Older age groups ranked Internet advertising as the most effective Exposure does have an impact on the perception of Internet effectiveness Majority of people surveyed are exposed to the Internet on a daily basis and less equals more. Based on the survey data, our research hypothesis is false! Internet advertising is not the most effective type of media used to influence consumers’ purchase decisions TV advertising is the most effective
Recommendations If you had to chose only one type of advertising, pick TV to influence consumers’ purchase decisions. Use print & radio advertising sparingly Also try utilizing a combination of TV and Internet advertising for increased effectiveness For older age groups, utilize Internet advertising For younger age groups, utilize TV advertising
Survey Improvements Larger Sample Size More Diversity Narrow Focus to just Internet Effectiveness or TV vs. Internet Expand & Increase the Scope of Survey Questions: How the different types of advertising media affect purchases of certain goods & services. (electronics, appliances, food, sports, etc.) How different aspects about ads such as celebrity endorsements, brand image, messages, etc. affect consumer purchase decisions. Is there a benefit to utilizing a number of different advertising media? (i.e. Cross-media advertising) Do more ads = more effective?