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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 l.jpg

Market Research in Advertising

Team members

Boshao Zhang

Deepa Vijayakumar

K T Chen

Vijayakumar Vijayan

Yiren Ren


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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


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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.


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Advertising Effects Pyramid

5%

regular use

20% Trial

25% Preference

40% of Liking

70% Knowledge / comprehension

90% of Awareness


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Testing, Tracking and Evaluation

Advertising Decision Process

Positioning

Advertising Strategy

Develop Ad and Copy Testing


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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


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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


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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


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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



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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


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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)


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Which measures are best?

  • Advertising Research Foundation (ARF) found that “Likeability” of ad had a higher probability of post-ad purchase of a brand


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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


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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?


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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”


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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


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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


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Superbowl Advertising Viewers

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.


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Net Ratings Viewers

  • 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)


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Net Ratings example Viewers

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


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Measurement Limitations Viewers

  • 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


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Summary Viewers

  • 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


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Conclusion Viewers

  • Ad testing is as much art as it is science

  • Results should be an aid to decision, rather than being the final word.