Chapter 8 Objectives

After going through this chapter, you will be able to understand: Explain the rationale and importance of message research Describe the various research technics used to measure consumer's recognition and recall of messages Explicate the role of persuasion measurement, including pre and post-testing of consumer preference Explain the meaning and operation of single source measures of advertising effectiveness. Introduction

Characteristics of a successful ad The Successful Ad Has a High and the right Degree of Visuals The Successful Ad Selects the Right Audience The Successful Ad Backs Up the Promise The Successful Ad Presents the Selling Proposition ¡n a Logical Sequence Introduction

After an ad is released, the effectiveness. next question that arises is whether the ad has been able to achieve its objectives. Right from the client to the creative team, everyone is eager to know the outcome. Everyone wants to analyse the consumer’s reaction, the ad cost and its Introduction

With coming into the picture, the scenario has become more complicated. Do clicks, likes and share mean that the act is successful? This many a times leads to the selection of wrong parameters to measure success. Success is the ability of a product category to retain a reasonable market share despite market redefinitions. Measurement is an essential criterion in order to determine the success of a new product and to learn about its success or to use it as a bench mark for future product developments. Introduction

Another approach ¡s demanding proof of return on investment (ROI) from an ad campaign. But considering ROI ¡n isolation can be misleading. ROI is calculated by taking the net profit and dividing it by the ad spend. The ROI is usually higher when sales and ad budget are closer to zero. As demonstrated here, evaluating ROI only would have advertisers choosing the small budget campaign option over the big budget one. Introduction

The big budget option was the better choice, as it generated far more net profit. The less you spend on advertising, the greater the ROI. Net profit provides a more accurate picture upon which to evaluate Success. In some cases, profit is not the only goal - or it is not the goal at all. Both quantitative and qualitative factors need to be used in evaluating success of the advertising. But beware. As demonstrated with ROI, sometimes we can focus on measuring the wrong thing - perfectly. Why and what needs to be measured?

Every individual has his own definition of Success. In the world of business, the manager would define success as “Increase in sales”, the R and D colleague would feel successful when the product ¡s accepted in the market and so on. Advertising effectiveness should also be measured to avoid costly mistakes, evaluate alternate strategies and increase the efficiency of advertising. Why and what needs to be measured?

In the advertising world, for an ad to be successful , it should - Get noticed by the right consumer / decision maker The right message Message to motivate the purchase decision Why and what needs to be measured?

If any one of the three ¡s not right, then the ad will not be effective and successful. All the above three needs to get captured by the account planner. Hence here the role of the account planner is to help ¡n setting the advertising objectives right by providing inputs about the target audience, the product USP and the consumer needs so that the right message is put across to Why and what needs to be measured?

An effective ad results when the right advertising objectives are set. Should the ad sell the company image or a product? Is it expected to bring the reader to the point of purchase or just present an idea for consideration? For what audience is the product intended? Answering these questions helps in a great way. The first requirement is that clear advertising goals need to be defined. Why and what needs to be measured?

There are two basic questions that advertising objectives should address. ‘Which consumers are to be influenced?’ and ‘What specific benefits or information is being tried to be communicated? Marketing objectives are concerned with what products go to which markets, whereas advertising objectives are measurable targets concerned principally with changing attitudes and creating awareness. Why and what needs to be measured?

Some of the specific advertising objectives can be - To make attitudes more favorable to a particular product. To build an image for the product. To get across the idea of a unique product. To reduce existing negative attitudes. To keep building loyalty. To establish the and position it in a particular way, e.g. as warm and friendly. Why and what needs to be measured?

Behind all effective advertising there lies a lot of careful thought and planning, and much of it goes into ensuring that the advertising objectives are the right ones. If these are wrong, everything else which follows is doomed to failure. As an account planner, who acts as an interlace, hence it becomes very important to set the success parameters well before the whole exercise, even before the SWOT analysis, so that all team members are in line with their expectations of success. Why and what needs to be measured?

revenue generated per rupee of advertising spend. But there are methods that will give a rough idea of whether the ads are on the right track. Both There is no exact way to quantitative and measure the success of an qualitative factors need to ad campaign. It is next to be used in evaluating impossible to conclude success of the advertising. Why and what needs to be measured?

Some of the ways in which an the effectiveness of an advertising campaign can be accessed is monitor sales, new customers requests for information, phone inquiries, store traffic, website traffic, or Click through rates. Track retail traffic by counting the people who enter your store. For this, monitoring traffic before the start the ad campaign is important comparison. Why and what needs to be measured?

Ask new customers how they heard about your business. Compare sales before, during, and after an ad Campaign. Advertising often has a delayed effect, so ad- driven sales results may not boost immediately. In print ads, include a coupon that customers can redeem for a discount or gift with their purchase. Code the coupons so that ad or publication which generates the best results can be determined. Techniques for measuring ad message effectiveness More than 80% of advertisers and agencies pretest television commercials before airing them on a national basis. This shows that how important message research is to both the client and the agency. Message research involves - To test effectiveness of messages Pretesting ads during developmental stages Post testing to determine if messages achieve their established objectives Techniques for measuring ad message effectiveness

1. Copy development stage 2. “Rough” stage

Four Stages at which ad message research might be conducted

4. After the ad has been run 3. Final production stage in the media Techniques for measuring ad message effectiveness Measures of Recognition & Recall Bruzzone test - Advertising Response Model (ARM) links responses to the 27 descriptive adjectives to consumers’ attitudes toward both the ad and the advertised brand and to purchase interest. It provides valid prediction of actual marketplace performance along with being relatively inexpensive, it offers important information for evaluating a commercial’s effectiveness and whether it should continue to run Techniques for measuring ad message effectiveness Measures of Recognition & Recall Burke Day-After Recall Testing - It is used to assess the effectiveness of test commercials and to identify strengths and weaknesses The Claimed-recall scores indicate the percentage of respondents who recall seeing the ad and Related-recall scores indicate the percentage of respondents who accurately describe specific advertising elements. Techniques for measuring ad message effectiveness Measures of Physiological Arousal Ads that are better liked are more likely to be remembered and to persuade. It is possible to measure consumer’s affective and emotional reactions to ads. Galvanometer-measures minute levels of perspiration in response to emotional arousal Pupillometric tests-measure pupil dilation Techniques for measuring ad message effectiveness Measures of Persuasion It is used when an advertiser’s objective is to influence consumers attitudes toward and preference for the advertised brand. Rational vs. Emotional Message One of the biggest debate ¡s whether the ad should be rational or emotional. While emotions drive behavior, logic and emotion are somehow mutually exclusive. Emotion and logic are intertwined. Advertisers have various choices relative to advertising appeals and execution style. Techniques for measuring ad message effectiveness Measures of Persuasion Advertising appeal - the approach used to attract the attention of consumers and/or influence their feelings toward the product, service, or cause Execution style - the way the particular appeal is turned into an advertising message presented to the consumer . Rational appeals focus on the consumer’s practical, functional, or utilitarian need for using the product or service. Techniques for measuring ad message effectiveness There are several types of rational appeals like - Feature - focus on dominant feature of the product Competitive - make comparisons to different Price -makes price the dominant point News- announcement about the product Popularity -stress the brand popularity Techniques for measuring ad message effectiveness Emotional appeals relate to the customers’ social and/or psychological need to purchase a product or service. Many feelings or needs can serve as the bases for these appeals, including psychological states or feelings directed to the self. Techniques for measuring ad message effectiveness Consumer purchase decisions are often made on the basis of both emotional and rational motives, and attention must be given to both when developing effective advertising. Even a purely functional product, such as laundry soap, could offer the emotional benefit of seeing one’s children in bright, clean clothes. Techniques for measuring advertisement success Every ad passes through the stage of pre, during and post. Hence an ad evaluation can be done as follows-  Pre-campaign - Pre-tests are those measures taken prior to the implementation of the campaign. Mid - campaign - Once the advertising creative is developed (either rough or finished), ¡t’s really important to pretest the advertising. Post campaign -Post tests occur after the ad or commercial has been in the field. They are used to determine the effectiveness of the ads once the campaign has been implemented. Techniques for measuring advertisement success Tracking studies: Tracking Studies follows the activity of a specific consumer or groups of consumers over a specified period of time. Advertising Tracking research is conducted to assess the effectiveness of your advertising and marketing communications. Tracking research is designed to gauge the impact of the marketing initiatives and determine how the brand is performing within its competitive environment overtime. Techniques for measuring advertisement success Tracking studies: A pre/post research design, with one wave of research prior to the start of advertising and another after a campaign has ended, can be used to measure changes in awareness, attitudes, and intended behaviors that can be attributed to a specific campaign. It is sometimes called as Awareness, Attitude and Usage (AA&U) study. It helps to provide strategic advice to guide the development of brands and businesses by identifying opportunities to expand reach, attract new consumers, improve product positioning, and product and service features. Techniques for measuring advertisement success  studies usually measure:  ad awareness / recall Purchase interest of brand recall of brand attributes recall of advertising claims tracking studies also analyze and measure impact of Media spends: o Total spends by the brand o Impact of Media Techniques for measuring advertisement success Sample – Sample needs to be broad, as inclusive as Possible. The broader sample helps because the demographics of a market can change over time. Also define the product category to be tracked as broadly as possible. Also, always set quotas for gender, so that you do not under represent men. The study can then be conducted ¡n two ways -continuous or pulsed study Techniques for measuring advertisement success Pulsed tracking method Pulsed method can be concentrated into a short time interval to provide highly precise before-after measurements for specific flights of media advertising, and the waves of interviewing can be precisely timed to coincide with media schedules. Tracking begins with a set of questions asked from a random sample on predetermined date. Techniques for measuring advertisement success  Continuous tracking method In 1976, Maurice Millward and Gordon Brown set up their first continuous tracking study, now named Dynamic Tracking, for Cadbury Schweppes with the objective to explore the issue of ad wear-out over time. Dynamic Tracking provides a complete 3600 view of brand health and a continuous flow of knowledge about what is working for a brand and what could be working better. The approach now used for continuous tracking ¡s almost universally based on that introduced by Millward Brown. Techniques for measuring advertisement success Pantry checks: It provides the same information as the diary method but requires little from the consumer. A researcher goes to homes in the target market and asks what brands or products have been purchased. Researcher counts the products or brands currently stocked by the consumer. The consumer may also be asked to keep empty packages. Techniques for measuring advertisement success Marketing Mix Modeling The term marketing mix modelling is widely used and applied indiscriminately to a broad range of marketing models used to evaluate different components of marketing plans, such as advertising, packaging, media weight levels, sales force numbers, etc. These models can be of many types, but multiple regression are the workhorse of most marketing mix modelling. Techniques for measuring advertisement success Marketing Mix Modeling Marketing mix modelling is an analytical approach that uses historic information, such as syndicated point-of-sale data and companies’ internal data, to quantify the sales impact of various marketing activities. Mathematically, this is done by establishing a simultaneous relation of various marketing activities with the sales, in the form of a linear or a non-linear equation, through the statistical technique of regression. Techniques for measuring advertisement success Marketing Mix Modeling  For activities like television advertising and trade promotions, further analysis like effectiveness can be carried out. This analysis tells the marketing manager the incremental gain in sales that can be obtained by increasing the respective marketing element by one unit. If detailed spend information per activity is available then it ¡s possible to calculate the return on Investment of the marketing activity. Copy Testing

Another important area in can be divided into 2 is categories: Copy testing. The word Before tests includes all Copy is used to denote an those tests that are used entire advertisement ¡n ascertaining the including the message suitability of an Pictures, colors etc., advertisement before it is regardless of the medium finally released. ¡n which the After tests include tests to advertisement has measure the effectiveness of an advertisement after appeared. it has been formally Methods of copy testing released. Copy Testing

Before tests Consumer jury -In this method, a sizeable number of consumers from the target audience are shown a set of rough and unfinished advertisements. Rating Scales - This method involves the use of certain standards against which a copy is tested. It may be added that weights may be assigned to different factors or items on the basis of which a copy is to be tested Portfolio tests - According to this method, a number of alternative copies that are to be tested are placed in a portfolio. Copy Testing

After tests: There are three methods that are frequently used to test an advertisement after it is formally released- Recognition tests- These tests are carried out with respect to a printed advertisement and commonly referred to as a readership study. o Noted: the percentage of readers who have seen the advertisement earlier. o Seen - Associated: the percentage of readers who read a part of the advertisement which indicates the brand of advertiser. o Read most: the percentage of readers who read a major part of the advertisement. Copy Testing

After tests: There are three methods that are frequently used to test an advertisement after it is formally released- Recall tests- In these method respondents are asked to recall specifics of the advertisement. To begin with, copies of test magazines are sent to a sample of respondents who are asked to read them ¡n a normal manner. o Telephone interviews are held on the following day. Respondents are read out a list of advertisements and asked to identify those they remember and the extent to which they are able to recall. Copy Testing

After tests: There are three methods that are frequently used to test an advertisement after it is formally released- Sales test - This method measures the effect of an advertisement on the sale of the product. The assumption is that changes in sales are as a result of the advertisement. o It is desirable to isolate the influence of other factors while determining the impact of an advertisement on the sale of the product. Copy Testing

Positioning Advertising Copy Test (PACT) Because measuring effectiveness is not an easy task, twenty-one of the largest U.S. advertising agencies have endorsed a set of principles aimed at “improving the research used in preparing and testing ads, providing a better creative product for clients, and controlling the cost of TV commercials”. This set of nine principles, called positioning Advertising Copy Testing (PACT) is designed to establish guidelines for good copy testing research. Copy Testing

Positioning Advertising Copy Test (PACT) The nine PACT principles are shown here - o Provide measurements relevant to objectives of advertising o Require agreement on how results will be used o Provide multiple measures o Be based on a model of human response to communications o Consider multiple versus single exposure to the stimulus o Require alternative executions to have same degree of finish o Provide controls to avoid biasing effects of exposure context o Take into account basic considerations of sample definition o Demonstrate reliability and validity Creating better advertising

The client, agency, research company and the account planner need to work together to create effective advertising. The client must craft a sound strategy for its brand, based on facts. The client must carefully define the role of advertising in the marketing plan and set precise communication objectives for the advertising. Once strategy and positioning alternatives are identified and tested, the strategy should be locked down and rarely changed thereafter. Creating better advertising

Use a mathematical model to derive an overall score for each execution. It doesn’t matter that an ad has great persuasion if it does not register the brand name. It doesn’t matter that an ad registers the brand name if no one will notice the commercial itself. It doesn’t matter that an ad increases short-term purchase interest ¡fit will damage the brand’s quality reputation overtime. Creating better advertising

Client and agency need to accept that “Continuous improvement" of the advertising is an important goal. This means that every execution is tested and tweaked based on scientific evidence from the target audience. We are not talking about changing the strategy or changing the campaign, but making sure that every execution is “on strategy” and working as hard as possible. Creating better advertising

The ultimate goal of testing is an advertising success formula that works. That is, the goal of advertising creative development, and the goal of advertising testing, is to identify the elements/ideas essential to advertising effectiveness, and then to make sure that those elements/ideas are consistently communicated by all advertising executions. Chapter 8