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  Measuring the Effectiveness of the
  Promotional Program




McGraw-Hill/Irwin   © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Pros and Cons of Measuring Advertising
 Effectiveness

Reasons to Measure        Reasons Not to Measure
                          Effectiveness
Ad Effectiveness
                            Cost of measurement
 Avoid costly mistakes
                            Problems with
 Evaluate alternative
                            research
 strategies
                            Disagreement about
 Increase efficiency of
                            what to test
 advertising in general
                            Objections of creative
                            personnel
                            Lack of time
Advertising agencies sometimes do not like
testing of their ads
Testing Factors


 What to test          Where to test
   Source factors        Laboratory tests
   Message variables     Field tests
   Media strategies
   Budget decisions    How to test
                         Testing guidelines
 When to test            Appropriate tests
   Pre-testing
   Post-testing
Testing Methods


Pretesting                Pretesting
– Laboratory Methods      – Field Methods
    Consumer juries           Dummy ad vehicles
    Portfolio tests           On-air tests
    Physiological
    measures
    Theater tests
                          Posttests
    Rough tests           – Field Methods
    Concept tests             Recall tests
    Reliability tests         Association measures
    Comprehension tests       Single-source systems
    Reaction tests            Inquiry tests
                              Recognition tests
                              Tracking studies
Positioning Advertising Copy (PACT)
  Testing Principles


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
Concept Testing

Objective:
– Explores consumers’ responses to various ad concepts as
  expressed in words, pictures, or symbols
Method:
– Alternative concepts are exposed to consumers who
  match the characteristics of the target audience
– Reactions and evaluations of each are sought through a
  variety of methods, including
    Focus groups
    Direct questioning
    Survey completion
– Sample sizes vary depending on the number of concepts
  to be presented at the consensus of responses
Output:
– Qualitative and/or quantitative data evaluating and
  comparing alternative concepts
Focus Group Limitations


The results are not quantifiable
Sample sizes are too small to generalize to larger
populations
Group influences may bias participants’ responses
One or two members of the group may steer the
conversation or dominate the discussion
Consumers become instant “experts”
Members may not represent the target market
(Participants may be a certain type of person)
Results may be taken to be more representative
and/or definitive than they really are
Rough Art, Copy, and Commercial Testing


 Comprehension and reaction tests
 Consumer juries
   Advantages
     Control
     Cost effectiveness
   Disadvantages
     Consumer may become a self-appointed expert
     Number of ads that can be evaluated is limited
     A halo effect is possible
     Preference for ads types may overshadow
     objectivity
Rough Testing Terms


Animatic Rough                    Live-Action Rough
  – Succession of                   – Live motion
    drawings/cartoons               – Stand-in/nonunion talent
  – Rendered artwork                – Nonunion crew
  – Still frames                    – Limited props/minimal
  – Simulated movement:               opticals
         Panning/zooming of         – Location settings
         frame/rapid sequence

                                  A Finished Commercial Uses
Photomatic Rough
                                    –   Live motion/animation
  –   Succession of photographs
                                    –   Highly paid union talent
  –   Real people/scenery
                                    –   Full union crew
  –   Still frames
                                    –   Exotic props/studio
  –   Simulated movements:              sets/special effects
         Panning/zooming of
         frame/rapid sequence
Commercials can be tested in animatic form
Consumer Juries


  Potential viewers (consumers) evaluate ads
  Viewers give their reactions and evaluation
  Viewers rate or rank order the multiple ads
  Ads are rated according to:
   – The order of merit method or
   – The paired comparison method
  Juries typically have 50 to 100 participants
  An overall reaction to each ad is obtained
  A rank ordering of ads is also obtained
Questions Asked in a Consumer Jury Test


1. Which of these ads would you most likely
   read if you saw it in a magazine?
2. Which of these headlines would interest you
   the most in reading the ad further?
3. Which ad convinces you most of the quality
   or superiority of the product?
4. Which layout do you think would be most
   effective in causing you to buy?
5. Which ad did you like best?
6. Which ad did you find most interesting?
Pretesting Finished Ads

  Portfolio tests
    – A laboratory method
    – Includes test and control ads
    – Portfolio test have problems
       • Factors other than creativity and/or presentation
         may affect recall
       • Recall may not be the best test

  Readability tests – Flesch Formula
    – Based on syllables per 100 words
    – Other factors also considered
         Copy may be too mechanical
         No direct input from reader

  Dummy advertising vehicles
Diagnostic Research Inc. (DRI) Print Ad Test


  Objective:
   – Test recall and readers’ impressions of print ads
  Method:
   – Mall intercepts, about 225 people, 2 or more cities
   – Participants take home “test magazines”
   – Participants phoned the following day to measure . . .
        Recall of ads
        Interest in content
        Supplementary information
  Output:
   – Scores reported on . . .
        Recall of copy and visual elements
        Recall of sales messages
        Both tabular and verbatim reports
IPSOS-ASI’s Next*Print


   Objective:
    – To assist in copy testing of ads to determine:
         Main idea communication
         Likes and dislikes
         Believability
    – Ad attribute ratings
         Overall likability
         Brand attribute ratings
   Method:
    – Current issues of magazines
    – Recall measures for 150 respondents
    – Diagnostic measures from 105 to 150 respondents
   Output:
    – Standard score and specific diagnostics
Pretesting Finished Broadcast Ads


 Theater tests
 – Measures changes in product preferences
 – May also measure . . .
    Interest in and reaction to the commercial
    Reaction from an adjective checklist
    Recall of various aspects included
    Interest in the brand presented
    Continuous (frame-by-frame) reactions

 On-air tests
 – Insertion in TV programs in specific markets
 – Limitations are imposed by “day-after recall”
Physiological Test Measures

                   Pupil dilation

          – Instrument: pupilometer
              Dilation associated with action
              Constriction indicates disinterest
Subject                   Stimulus Object


   Male


 Female


               Nude             Nude               Nude
              Female            Male               Infant
Physiological Test Measures


    Galvanic skin response (GSR)
 [aka Electodermal response (EDR)]


  GSR/EDR characteristics:
   –   Sensitive to affective stimulation
   –   May present a picture of attention
   –   May measure long-term recall
   –   Useful in measuring effectiveness
Eye Movement Research

Objective:
 – To track eye movements to determine . . .
      What readers read on print ads
      Where attention is focused in TV commercials
Method:
 – Eye movements are tracked using . . .
      Fiber optics
      Digital data processing
      Advanced electronics
 – Scan paths on
      Print ads and material
      Billboards
      Commercials

Output:
 – Relationships among what is . . .
      Seen
      Recalled
      Comprehended
Using EyeTracking to test ads
Brain Wave Research


 The electroencephalograph (EEG)
 – Alpha activity
     Degree of activation
     Alpha states associated with
      – Inactivity
      – Resting
      – Sleeping
 Hemispheric lateralization
 – Distinguishes between activity in the:
      Left hemisphere of the brain
      – Processes visual stimuli
     Right hemisphere of the brain
      – Processes verbal stimuli
Posttests of Print Ads


   Inquiry tests measure the effectiveness
   based on inquires generated from ads
   appearing in various print media


  Informal inquiry of customers, prospect
  Ads in successive issues, same medium
  Split-run tests, different ads, same medium
  Runs of same ad, different media
Ad Response Methods
     Methods used frequently or very frequently by 2705 respondents


                  INDIRECT METHODS
            Return reader service cards     41%
                 Save ads for reference     35%
Discuss advertising products with others    30%
Pass ads on to others for possible action   26%
                    DIRECT METHODS
        Send back reply cards/coupons       31%
              Contact vendors' websites     28%
              Telephone manufacturers       23%
       Telephone local distributors/reps    22%
               Go to magazine websites      21%
    Stop at vendors' trade show exhibits    20%
       Discuss products with sales reps     20%
                  Send faxes to vendors     17%
           Contact distributors' websites   15%
                 Send e-mail messages       10%
                   Mail notes to vendors     6%

                                        0%        10%   20%   30%   40%   50%
Posttests of Print Ads

Recognition tests (Starch Readership Report)

Noted Score – percentage of readers who remember seeing the ad
Seen-associated score – percentage of readers who recall seeing or
reading any part of the ad identifying the brand
Read-most score –percentage who report reading at least half of
copy portion of ad

Purports to measure . . .
     Pulling power of elements of the ads
     Effectiveness of competitors’ ads
     Comparison of alternative executions of ads
     Readership score indications of involvement
  Critics identify potential problems . . .
     False claiming of recognition
     Interviewer sensitivities and biases
     Low reliability and validity of scores
A Starch Scored Advertisement
Posttests of Print Ads

    Gallup-Robinson Magazine Impact
    Research Service - Magazines placed in
  homes and respondents are asked to read them.
   A telephone interview is conducted a day later.

Measures:
 Proven Name registration – percent who can
 accurately recall the ad
 Idea Communication – number of sales/copy
 points they can recall
 Favorable buying attitude – extent of favorable
 purchase reaction to brand or company
Posttests of Broadcast Commercials




      Day after recall tests
      Diagnostic Tests
      Test marketing
      Single Source Tracking Studies
IPSOS-ASI’s Next*TV


 Objective:
 – To assist in testing commercials to determine:
       Potential for impacting sales
       How ad contributes to brand equity
       How it aligns with existing ad strategies, objectives
       How to optimize effectiveness
 Method:
 – Consumers view videotape programs in their homes
 – Ads are imbedded in the programs
 Output:
 –   Day-after recall and persuasion scores
 –   Purchase intent and frequency
 –   Brand equity differentiation
 –   Relevance, communication and reaction diagnostics
Ipsos-ASI Offers a Comprehensive
Testing Measure
Factors that Make or Break Tracking Studies

1.    Properly defined objectives
2.    Alignment with sales objectives
3.    Properly designed measures
4.    Consistency through replication of the sampling plan
5.    Random samples
6.    Continuous interviewing, not seasonal
7.    Evaluate measures related to behavior
8.    Critical evaluative questions early to eliminate bias
9.    Measurement of competitors’ performance
10.   Skepticism about questions asking where ad was seen or heard
11.   Building of news value into the study
12.   “Moving averages” used to spot long-term
13.   Data reporting relationships rather than as isolated facts
14.   Integration of key marketplace events with tracking results
CopyTrack Provides Tracking Measures

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Chap19 Measuring The Effectiveness Of The Promotional Program

  • 1. 19 Measuring the Effectiveness of the Promotional Program McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
  • 2. Pros and Cons of Measuring Advertising Effectiveness Reasons to Measure Reasons Not to Measure Effectiveness Ad Effectiveness Cost of measurement Avoid costly mistakes Problems with Evaluate alternative research strategies Disagreement about Increase efficiency of what to test advertising in general Objections of creative personnel Lack of time
  • 3. Advertising agencies sometimes do not like testing of their ads
  • 4. Testing Factors What to test Where to test Source factors Laboratory tests Message variables Field tests Media strategies Budget decisions How to test Testing guidelines When to test Appropriate tests Pre-testing Post-testing
  • 5. Testing Methods Pretesting Pretesting – Laboratory Methods – Field Methods Consumer juries Dummy ad vehicles Portfolio tests On-air tests Physiological measures Theater tests Posttests Rough tests – Field Methods Concept tests Recall tests Reliability tests Association measures Comprehension tests Single-source systems Reaction tests Inquiry tests Recognition tests Tracking studies
  • 6. Positioning Advertising Copy (PACT) Testing Principles 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
  • 7. Concept Testing Objective: – Explores consumers’ responses to various ad concepts as expressed in words, pictures, or symbols Method: – Alternative concepts are exposed to consumers who match the characteristics of the target audience – Reactions and evaluations of each are sought through a variety of methods, including Focus groups Direct questioning Survey completion – Sample sizes vary depending on the number of concepts to be presented at the consensus of responses Output: – Qualitative and/or quantitative data evaluating and comparing alternative concepts
  • 8. Focus Group Limitations The results are not quantifiable Sample sizes are too small to generalize to larger populations Group influences may bias participants’ responses One or two members of the group may steer the conversation or dominate the discussion Consumers become instant “experts” Members may not represent the target market (Participants may be a certain type of person) Results may be taken to be more representative and/or definitive than they really are
  • 9. Rough Art, Copy, and Commercial Testing Comprehension and reaction tests Consumer juries Advantages Control Cost effectiveness Disadvantages Consumer may become a self-appointed expert Number of ads that can be evaluated is limited A halo effect is possible Preference for ads types may overshadow objectivity
  • 10. Rough Testing Terms Animatic Rough Live-Action Rough – Succession of – Live motion drawings/cartoons – Stand-in/nonunion talent – Rendered artwork – Nonunion crew – Still frames – Limited props/minimal – Simulated movement: opticals Panning/zooming of – Location settings frame/rapid sequence A Finished Commercial Uses Photomatic Rough – Live motion/animation – Succession of photographs – Highly paid union talent – Real people/scenery – Full union crew – Still frames – Exotic props/studio – Simulated movements: sets/special effects Panning/zooming of frame/rapid sequence
  • 11. Commercials can be tested in animatic form
  • 12. Consumer Juries Potential viewers (consumers) evaluate ads Viewers give their reactions and evaluation Viewers rate or rank order the multiple ads Ads are rated according to: – The order of merit method or – The paired comparison method Juries typically have 50 to 100 participants An overall reaction to each ad is obtained A rank ordering of ads is also obtained
  • 13. Questions Asked in a Consumer Jury Test 1. Which of these ads would you most likely read if you saw it in a magazine? 2. Which of these headlines would interest you the most in reading the ad further? 3. Which ad convinces you most of the quality or superiority of the product? 4. Which layout do you think would be most effective in causing you to buy? 5. Which ad did you like best? 6. Which ad did you find most interesting?
  • 14. Pretesting Finished Ads Portfolio tests – A laboratory method – Includes test and control ads – Portfolio test have problems • Factors other than creativity and/or presentation may affect recall • Recall may not be the best test Readability tests – Flesch Formula – Based on syllables per 100 words – Other factors also considered Copy may be too mechanical No direct input from reader Dummy advertising vehicles
  • 15. Diagnostic Research Inc. (DRI) Print Ad Test Objective: – Test recall and readers’ impressions of print ads Method: – Mall intercepts, about 225 people, 2 or more cities – Participants take home “test magazines” – Participants phoned the following day to measure . . . Recall of ads Interest in content Supplementary information Output: – Scores reported on . . . Recall of copy and visual elements Recall of sales messages Both tabular and verbatim reports
  • 16. IPSOS-ASI’s Next*Print Objective: – To assist in copy testing of ads to determine: Main idea communication Likes and dislikes Believability – Ad attribute ratings Overall likability Brand attribute ratings Method: – Current issues of magazines – Recall measures for 150 respondents – Diagnostic measures from 105 to 150 respondents Output: – Standard score and specific diagnostics
  • 17. Pretesting Finished Broadcast Ads Theater tests – Measures changes in product preferences – May also measure . . . Interest in and reaction to the commercial Reaction from an adjective checklist Recall of various aspects included Interest in the brand presented Continuous (frame-by-frame) reactions On-air tests – Insertion in TV programs in specific markets – Limitations are imposed by “day-after recall”
  • 18. Physiological Test Measures Pupil dilation – Instrument: pupilometer Dilation associated with action Constriction indicates disinterest Subject Stimulus Object Male Female Nude Nude Nude Female Male Infant
  • 19. Physiological Test Measures Galvanic skin response (GSR) [aka Electodermal response (EDR)] GSR/EDR characteristics: – Sensitive to affective stimulation – May present a picture of attention – May measure long-term recall – Useful in measuring effectiveness
  • 20. Eye Movement Research Objective: – To track eye movements to determine . . . What readers read on print ads Where attention is focused in TV commercials Method: – Eye movements are tracked using . . . Fiber optics Digital data processing Advanced electronics – Scan paths on Print ads and material Billboards Commercials Output: – Relationships among what is . . . Seen Recalled Comprehended
  • 22. Brain Wave Research The electroencephalograph (EEG) – Alpha activity Degree of activation Alpha states associated with – Inactivity – Resting – Sleeping Hemispheric lateralization – Distinguishes between activity in the: Left hemisphere of the brain – Processes visual stimuli Right hemisphere of the brain – Processes verbal stimuli
  • 23. Posttests of Print Ads Inquiry tests measure the effectiveness based on inquires generated from ads appearing in various print media Informal inquiry of customers, prospect Ads in successive issues, same medium Split-run tests, different ads, same medium Runs of same ad, different media
  • 24. Ad Response Methods Methods used frequently or very frequently by 2705 respondents INDIRECT METHODS Return reader service cards 41% Save ads for reference 35% Discuss advertising products with others 30% Pass ads on to others for possible action 26% DIRECT METHODS Send back reply cards/coupons 31% Contact vendors' websites 28% Telephone manufacturers 23% Telephone local distributors/reps 22% Go to magazine websites 21% Stop at vendors' trade show exhibits 20% Discuss products with sales reps 20% Send faxes to vendors 17% Contact distributors' websites 15% Send e-mail messages 10% Mail notes to vendors 6% 0% 10% 20% 30% 40% 50%
  • 25. Posttests of Print Ads Recognition tests (Starch Readership Report) Noted Score – percentage of readers who remember seeing the ad Seen-associated score – percentage of readers who recall seeing or reading any part of the ad identifying the brand Read-most score –percentage who report reading at least half of copy portion of ad Purports to measure . . . Pulling power of elements of the ads Effectiveness of competitors’ ads Comparison of alternative executions of ads Readership score indications of involvement Critics identify potential problems . . . False claiming of recognition Interviewer sensitivities and biases Low reliability and validity of scores
  • 26. A Starch Scored Advertisement
  • 27. Posttests of Print Ads Gallup-Robinson Magazine Impact Research Service - Magazines placed in homes and respondents are asked to read them. A telephone interview is conducted a day later. Measures: Proven Name registration – percent who can accurately recall the ad Idea Communication – number of sales/copy points they can recall Favorable buying attitude – extent of favorable purchase reaction to brand or company
  • 28. Posttests of Broadcast Commercials Day after recall tests Diagnostic Tests Test marketing Single Source Tracking Studies
  • 29. IPSOS-ASI’s Next*TV Objective: – To assist in testing commercials to determine: Potential for impacting sales How ad contributes to brand equity How it aligns with existing ad strategies, objectives How to optimize effectiveness Method: – Consumers view videotape programs in their homes – Ads are imbedded in the programs Output: – Day-after recall and persuasion scores – Purchase intent and frequency – Brand equity differentiation – Relevance, communication and reaction diagnostics
  • 30. Ipsos-ASI Offers a Comprehensive Testing Measure
  • 31. Factors that Make or Break Tracking Studies 1. Properly defined objectives 2. Alignment with sales objectives 3. Properly designed measures 4. Consistency through replication of the sampling plan 5. Random samples 6. Continuous interviewing, not seasonal 7. Evaluate measures related to behavior 8. Critical evaluative questions early to eliminate bias 9. Measurement of competitors’ performance 10. Skepticism about questions asking where ad was seen or heard 11. Building of news value into the study 12. “Moving averages” used to spot long-term 13. Data reporting relationships rather than as isolated facts 14. Integration of key marketplace events with tracking results