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Market Research in Advertising. Team members Boshao Zhang Deepa Vijayakumar K T Chen Vijayakumar Vijayan Yiren Ren. Agenda . What is Advertising Ad Effectiveness Studies Advertising Testing Approach Types of Advertising Types of Stimulus Measures of Ad Effectiveness

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market research in advertising

Market Research in Advertising

Team members

Boshao Zhang

Deepa Vijayakumar

K T Chen

Vijayakumar Vijayan

Yiren Ren

agenda
Agenda
  • What is Advertising
  • Ad Effectiveness Studies
  • Advertising Testing Approach
    • Types of Advertising
    • Types of Stimulus
    • Measures of Ad Effectiveness
  • Testing Methodologies
    • Qualitative
    • Quantitative
  • Measurement Limitations
  • Summary and Conclusion
advertising
Advertising
  • Advertising is a paid form of communicating a message by the use of various media.
  • It is persuasive, informative and designed to influence purchasing behavior and thought patterns.
slide4

Advertising Effects Pyramid

5%

regular use

20% Trial

25% Preference

40% of Liking

70% Knowledge / comprehension

90% of Awareness

slide5

Testing, Tracking and Evaluation

Advertising Decision Process

Positioning

Advertising Strategy

Develop Ad and Copy Testing

ad effectiveness studies
Ad Effectiveness Studies
  • Copy testing
    • Pre-testing ads before they are introduced in the marketplace
  • Market testing and tracking
    • Assessment of ads currently used in the marketplace
advertising testing approach
Advertising Testing Approach
  • The testing approach depends on:
    • Type of advertising (TV, Print ad etc.)
    • Type of stimulus you want to test (storyboards, roughs, etc.)
    • Measures of effectiveness you want to capture
type of advertising
Type of Advertising
  • TV Commercials
    • predominant type of ad testing
  • Newspaper, Magazines
  • Radio ads, Billboards, Website banner ads
    • less predominant

More expensive the ad, more testing needed

type of stimulus in ad testing
Type of Stimulus in Ad Testing
  • Ad testing requires some stimulus
  • Validity and accuracy of response depends on stimulus
  • Types of stimulus
    • Storyboards
    • Roughs
    • Finished ads
measures of ad effectiveness
Measures of Ad Effectiveness
  • Recall
    • Measures number of viewers able to spontaneously recall the ad when questioned
    • Provides recall score for the commercial
    • Highly influenced by brand name
  • Recognition
    • Ad shown later and asked if they remember seeing it earlier
    • Assumes memory of an ad is an important predictor of effectiveness
slide12

Measures of Ad Effectiveness

  • Narrative Playback
    • Recall the narrative or storyline
  • Attitudes Toward the ad
    • Measure how people felt about the ad viewed
    • Measures include – likeability, stimulation, relevance, uniqueness, believability
  • Persuasion
    • Gauge actual persuasion of ad (motivation to buy)
which measures are best
Which measures are best?
  • Advertising Research Foundation (ARF) found that “Likeability” of ad had a higher probability of post-ad purchase of a brand
testing methodologies
Testing Methodologies
  • Qualitative tests
    • Focus groups
    • Sample of individual personal interviews
  • Advantage
    • Inexpensive
    • Yield diagnostic information
  • Disadvantage
    • Bias due to group effect (Focus groups)
  • Of limited value in ad testing
testing methodologies15
Testing Methodologies
  • Quantitative tests
    • One-on-One / Personal Interviews
      • Consumers shown an ad stimulus in personal interview
      • Interviewed in malls or their home
      • Ad shown in “Clutter Reel” among other ads or test ad alone
      • P&G refers as “C&R tests” (comprehension and reaction)
        • Does viewer understand what is going on in the commercial?
        • What feelings and attitudes does the ad generate in this “forced-viewing” situation?
testing methodologies16
Testing Methodologies
  • Theatre Testing
    • Large number of people (50-250) attend 2-3 hour research session
    • Exposed to number of test commercials during TV show
    • Fill out questionnaire measuring the recall of ads
  • Adv: Less artificial as ads are within a TV show
  • Disadv: Respondents are aware of the study hence respond as “Professional Respondents”
testing methodologies17
Testing Methodologies
  • In-Home testing
    • Ad prototypes shown at home with regular TV-viewing
    • Fill out questionnaire measuring the recall of ads
  • Adv: Most realistic
  • Disadv: TV program the ad appeared has an effect on recall scores
neilsen tv rating

Date Network Location Rating Share NO. of Homes NO. of Viewers

7/9/2002 FOX Milwaukee 9.5 17 10,046,000 14,653,000

Neilsen TV Rating
  • Objective: Determine the size and composition of the viewing audience
    • Sample of 5,000 households with 13,000 viewers countrywide
    • Audimeter/Peoplemeter instruments attached to the TVs in these households
    • Information regarding usage pattern and the viewers watching the program sent to central computers periodically

Example: Major League Baseball All Star Game

superbowl advertising
Superbowl Advertising

Rating: a percent of the universe that is being measured, most commonly discussed as a percent of all television households.

Share: the percent of households or persons using television at the time the program is aired and who are watching a particular program.

net ratings
Net Ratings
  • Major Players
    • Nielsen-Net ratings
    • Com Score Media Metrix
  • Top Advertisers Using Online More
    • Two years ago top 100 advertisers share - 15%
    • In 2002, top 100 advertisers share - 30%
  • 82% of auto consumers research their purchase online first.
    • Ford Increased its ad impressions by 34%
  • Online advertising still 2% of ad budget (on the rise)
net ratings example
Net Ratings example

Percentage of searches done by US web surfers at different websites owned by companies shown in May 2003

measurement limitations
Measurement Limitations
  • Norms
    • Ad test results are compared to a standard or ‘norm’
    • Is the present norm fair or too high?
  • Single vs. Multiple exposures
    • Most ad tests involve only single exposure
    • Can this motivate someone to buy a brand?
    • Is this sufficient to gauge people’s reaction?
    • In real world, ads are seen multiple times
  • Sample composition
    • Broad sample definition
    • In real world, advertising targets specific segments
summary
Summary
  • Ad testing is critical given the amount of investment made in advertisements
  • The testing approach is influenced by:
    • Type of advertising (TV, Print Media, etc)
    • Type of stimulus (Storyboards, Roughs, Finished Ad)
    • Measures Used (Recall, Recognition, etc)
  • Quantitative tests provide more reliable results
  • There are some inherent limitations to be considered while interpreting these results
conclusion
Conclusion
  • Ad testing is as much art as it is science
  • Results should be an aid to decision, rather than being the final word.
ad