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Advertising effectiveness final

Advertising effectiveness final






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    Advertising effectiveness final Advertising effectiveness final Presentation Transcript

    • ADVERTISING EFFECTIVENESS Proving the commercial value of advertising, that is, its contribution to shareholder value, rather than just its creative merit Does advertising really work?
    • The Need to Measure Advertising Effectiveness
      • To justify money spent (budgets), ROI
      • To determine if the advertising campaign should be stopped or continued
      • To determine possible areas of modifications in the campaign messages
      • In the longer interest of the profession (some evidence of the relevance of advertising & the practitioners
    • Problems With Measuring Advertising Effectiveness
      • Irrational consumer behaviour
      • Lack of widely acceptable scientific approach
      • The difficulties of determining consumer influences (multiple factors)
      • The validity and reliability of data gathered
      • Suitability of research methods & instruments used
      • Poor research skills & Sampling issues
      • Inadequate resources/funding
      • Setting non-SMART objectives
    • Stages of Advertising Campaign Measurement
      • Pre-production/campaign stages - (copy testing, message & symbols testing etc)
      • Production/campaign stages - (visibility, awareness research etc)
      • Post-production/campaign stages (behavioural change, objectives, effectiveness research)
      • Feedback is needed at every stage to
      • influence future campaign efforts
    • Methods of Measuring Advertising Effectiveness
      • Checking advertising objectives (AIDA, DAGMAR) set before the campaign with results achieved afterwards
      • Measuring the volume of sales before the campaign & the volume afterwards
      • Calculating the number of returned coupons & ref no. quotes
      • Calculating sales leads and responses as a result of advertising (ad to sales ratio)
      • Asking customers directly …How did you hear about us…Were you…
    • Examples of Advertising Objectives & How Success can be Measured (1)
      • Stimulate an increase in sales- Number of enquiries from advert, - Number of enquiries converted into sales
      • Remind customers of the existence of a product- Test customer awareness both before and after the advertising campaign, - Number of enquiries
      • Inform customers- Test customer awareness, - Number of requests for further information
    • Examples of Advertising Objectives & How Success can be Measured (2)
      • Build a brand image- Test customer awareness of brand recognition and perceived values
      • Sales- Levels of repeat purchase
      • Build customer loyalty and relationship- Levels of customer retention
      • Change customer attitudes- Measure demographic profile of purchases - Measure type of goods ordered by new purchasers - Compare with previous data
    • Advantages & Disadvantages
      • Please note that for each method used in
      • measuring advertising effectiveness,
      • there are advantages and disadvantages,
      • what are they?
    • Research Methods
      • Primary & Secondary Research
      • Past sales records/Current sales records
      • Observations
      • Testing (pilot surveys), focus groups etc
      • Questionnaires
      • Interviews (one-on-one, group) etc
    • Tips For a More Effective Advertising
      • Using colour more than doubles the growth in awareness of local press ads - full colour is nearly 3 times more effective than mono only
      • Increasing the frequency of advertising helps to significantly increase levels of awareness
      • Longer campaigns equals higher awareness levels
      • Advertisers should show products where appropriate and also prominently and clearly display brand logos
      • Increasing colour and advertising more often across the week can more than double awareness uplift
      • Increasing colour and the number of insertions can increase awareness uplift by almost 3x
      • Making use of Co-op (IMC) advertising can help to boost your advertising.
      • Setting SMART objectives
    • Analysis/Evaluation
      • Measuring Advertising effectiveness is a complex and difficult process
      • There is no common agreement by all stakeholders about the effectiveness of ads because other variables also affect consumer choice
      • Most views on Advertising effectiveness is generally regarded as assumptions
      • The ‘historical’ method is more favoured