Advertising

Effectiveness

Marketing Management
Advertising Effectiveness - Definition

Advertising effectiveness pertains to how well a company's

advertising accomplishes the intended. Small companies use many
different statistics or metrics to measure their advertising
effectiveness. These measurements can be used for all types of
advertising, including television, radio, direct mail, Internet and
even billboard advertising.
Methods of Measuring Advertisement
Effectiveness
There are 2 major methods that can be used to measure the
consumer reaction to the advertisement or the advertised product.

These methods helps the company avoid costly mistakes if it

involves huge budget, helps them to determine whether the
objective is achieved or not, even evaluate alternative strategy
There are two types of measures:

● Direct measures and,

● Indirect measures.
1. Direct Measures of Advertising Effectiveness.
These measures establish a relationship between advertising and sales. A
comparison of sales of two periods of time or two markets may be done
and the comparative changes may be noted. The
following are some of the methods that are generally used in the
measurements.

1 (A). Historical Sales Method.

Effectiveness of past advertising may be obtained by measuring the
relationship
between the advertising expenditure and the total sales of the product. A
multiple
regression analysis of advertising expenditure and sales over several time
periods may be calculated.
2. Experimental Control.

A casual relationship between advertising and sales is established in this method.

One experimental approach to measuring the sales effectiveness of advertising is test
marketing.

• Before-after with Control Group Design: Before the advertisement is shown, sales
figures are measured and after the exposure to the advertisements, sales figures are
measured. The effect of advertising campaign, can then, be measured by subtracting
the amount of post campaign figure of sale from the pre campaign sale figures in test
cities. The control group is also present here to neutralize the effects of extraneous
factors.

• Multivariable Experimental Designs: Multivariable designs Produce explanations to

the success and failures of the campaign and are, therefore used by some very large
firm because of their diagnostic value. For any single medium, eight possible
geographic areas have been exposed and eight have not been exposed. Thus, in this
experimental model it is possible to evaluate how each individual medium behaves
alone and in all possible combinations with other media.
2. Indirect Measures of Advertising Effectiveness

Factors such as customer awareness or attitude or customer recall

of advertising message affect the sales or profits or goals of the
business indirectly. They are measured in indirect ways here.
• Exposure to Advertisement: The advertiser is concerned about
the number of target audiences who see or hear the organization
message set in the advertisement. Without
exposure,advertisement is bound to failure. It is also known as
reach and frequency factors.
• Comprehension: Consumers here are asked to
comprehend the message of advertisements. Various
tests like recall tests, asking questions etc. are used to
measure comprehension.

• Attitude Change: The results of attitude changes are

important because of advertisements are measured in
terms of attitudes among groups exposed to advertising
communication.

• Action: The action of purchasing or behaviour towards

purchasing is measured because of the advertisements
here.
• Attention or Recall of Advertising Message Content: Under this
measure, a recall of the message content among a specified group or
groups or prospective customers is measured within 24 hours of the
exposure of the advertisement. Attention value is the chief quality of the
advertising copy the advertisements cannot be said to be effective
unless they attract the attention of the target consumers. There are two
methods for evaluating the attention getting value of the
advertisements. One is pre-test and the other is post-test.

• Brand Awareness: The marketers who rely heavily on advertising often

appraise its effectiveness by measuring the customer’s awareness about
the particular product or brand. The assumption of this type of measure
is that there is a direct relationship between the advertisements and the
awareness.
Pros and Cons of Measuring Effectiveness
Advantages Disadvantages

1. Avoid costly mistakes 1. Cost of measurement

2. Evaluate alternative strategies 2. Research Problems
3. Increase efficiency in general 3. Disagreement of what to test
4. Determine if objectives are 4. Time
achieved
PRE TESTING

Pre-testing, also known as copy testing is a form of customised research that predicts in-
market performance of an ad, before it airs, by analysing audience levels of attention, brand
linkage, motivation, entertainment, and communication, as well as breaking down the ad’s
Flow of Attention and Flow of Emotion.
PRE TESTING METHODS
LABORATORY FIELD

1. Consumer Juries 1. Dummy Ad Vehicles

2. Theatre Tests 2. On air Tests
3. Rough Tests
4. Concept Tests
5. Physiological Measures
6. Portfolio Tests
POST TESTING

Pre-testing, also known as copy testing, is a specialized field of marketing research that
determines an ad’s effectiveness based on consumer responses, feedback, and
behavior. A new area of pre-testing driven by the realization that what works on TV does
not necessarily translate in other media. Greater budgets allocated to digital media in
particular have driven the need for campaign pre-testing. The addition of a media
planning tool to this testing approach allows advertisers to test the whole campaign,
creative and media, and measures the synergies expected with an integrated campaign-
testing is conducted before implementing the advertisement to customers.
POST TESTING METHODS

1. Recall Tests
2. Tracking Studies
3. Recognition Tests
4. Association Measures
5. Inquiry Tests
6. Single-Source System
 Factors that determine the
effectiveness of advertisement
● Number of enquiries
● Conversion of enquiries into sales
● Increased Sales
● Increased Brand awareness
● Customer Retention
● Increased level of repeat purchase
 Measuring the effectiveness of Advertisement

Most advertisement effectiveness can be quantified by

various advertising tool that collect data and display it
after the campaign is over
It shows a concise data on the impression that the
advertisement had along
With number of engagement.
It would also show the indepth data about the customer
age and gender.
 HUT RATING AND SHARE

HUT is the percentage of all TV households watching television at any given time. It is different from
Rating as it calculates the complete viewing pattern rather than being program specific.

Rating is the audience of a particular program or station at a specific period of time expressed as a
percent of the audience population. The percent sign is not shown, and the rating may represent
household viewing or a specific demographic audience segment's listening or viewing.

Share is the audience of a particular television program or time period expressed as a percent of the
population viewing TV at that particular time. Share, then, is a percent allocation of the viewing
audience and differs from the rating which is a percent of the potential audience. Share is usually
reported on a household basis.

Formulae
HUT x Share = Rating (HH)
Rating (HH) / HUT = Share
Rating (HH) / Share = HUT [4]
 Measuring the effectiveness of Advertisement

The effect of exposures on audience awareness depends on the exposure, reach frequency and
impact.

Reach ( R) – The no. of different persons or household exposed to a particular media at least
once during a specified time period.

Frequency (F) – The no of times within the specified time period that an average person or
household is exposed to the message.

Impact (I)- The qualitative value of an experience through a given medium.

Total no. of exposures- E= R X F

Weighted no. of exposures – COE= R X F X I.

 Concept of Audience Awareness Level

Awareness of the existence of a product or a service is needful before the purchase behaviour
is expected. The fundamental task of advertising activity is to improve the consumer awareness
of the product.

Once the consumer awareness has been provided to the target audience, it should not be
forsaken. The target audience tends to get distracted by other competing messages if they are
ignored.

Awareness has to be created, developed, refined and maintained according to the

characteristics of the market and the scenario of the organization at any given point of time.

The objective is to create awareness about the product amongst the target audience.
Exposure, Reach and Frequency

Exposure refers to presentation of an advertisement to audience

Reach refer to total number of household that will be exposed to a message through a
particular media over a set period of time

Purpose of reach is optimal exposure

Frequency refers to number of times the receiver has been exposed to media vehicle.

Frequency primarily means the repetition of the same message, which the objective to create
desire for the product