advertising effectiveness

5/19/2018 Advertising Effectiveness

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DVERTISING EFFECTIVENESS


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ADVERTISING EFFECTIVENESS

Introduction

Advertising effectiveness in markets refersto market response to a firms (or a brands)

advertising. I define market response as the

firms (or brands) choices, sales, or market

share in real market contexts.


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Researches about Advertising

Effectiveness

1. RESEARCH ON ADVERTISING

ELASTICITY

Advertising elasticity is the percentage

change in sales of a brand for a 1 percentchange in the level of advertising.


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Effectiveness

2. RESEARCH ON ADVERTISING WEIGHT

Weight refers to the level or intensity of the

advertising budget.


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Effectiveness

3. RESEARCH ON ADVERTISING

FREQUENCYA firms advertising budget normally affects

consumers through the exposure of consumers to

advertisements through the media. Frequency, in

this context, refers to the number of advertisingexposures each consumer receives in a particular

time period.


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Understanding the Value of

Creativity in Advertising

It is known fact that there should be anelement of creativity in an advertisement.

This creativity is to create something new,unique, extremely attractive and appealingto the consumers. In fact, advertising itself isa creative process. It is the outcome of longterm planning and hard work on the part ofthe copy writer & creative director whoprepares & shapes the final copy ofadvertisement.


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Methods of Measuring Advertising

Effectiveness

Checking advertising objectives (AIDA, DAGMAR)set before the campaign with results achieved

afterwards. Measuring the volume of sales before the campaign

& the volume afterwards.

Calculating the number of returned coupons & refno. quotes.

Calculating sales leads and responses as a result ofadvertising (ad to sales ratio)

Asking customers directly How did you hear about

us


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Problems With Measuring Advertising

Effectiveness

Irrational consumer behavior

Lack of widely acceptable scientific approach

The difficulties of determining consumer influences

(multiple factors)

The validity and reliability of data gathered

Suitability of research methods & instruments used Poor research skills & Sampling issues

Inadequate resources/funding Setting

non-SMART objectives


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Some Factor for evaluating Video ads

Basic Idea Budget spending

ROI

Audio and video Characteristics

Consumer Attitude towards ad

Consumer Acceptance

Creative idea

Consumer response

advertising effectiveness

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