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ad; it's a property of the brand. without exposure to the test ad.
100
But in a copytest that measures We get ratings for the
consumers' perceptions and Equity*Builder items developed 50
reactions to an ad execution, we in our Brand Equity research -
should be able to measure its both for the test ad, and for the 0
Min 5 4 3 2 1 Max
potential to enhance or reinforce unexposed Control group. With Average Index within Quintile Groups
brand perceptions. Equity these data in hand, we can begin
studies typically reference to look at the relationships.
attributes specific to a brand or
First, we see that individual ads
category, to identify the unique
do tend to produce a positive
"equities" that position and
change in these ratings,
differentiate individual brands. Figure 4
compared with Control group
We often evaluate these in
data collected for each brand 250
copytests, too. But by adding the Equity*Builder database
without test ad exposure [see
validated, generalizable items Control Groups (No Ad)
Figure 3]. Second, we see that 200
from the Equity*Builder model,
the average ratings on these
we should be able to assess ads 150
items, across all brands, are
at the pretest stage in terms of
similar to the average ratings
their potential to build Brand 100
we've seen in our Brand Equity
Equity.
database. And if we apply the 50
Figure 6
20
Relevance 24 23 21
0
Top 1/3 Middle 1/3 Bottom 1/3
Brand Equity Index
2 5
It is important to understand Advertising and Advertising was not the biggest Equity Measures and Conclusions
how the model works to measure factor contributing to Equity; Persuasive Impact
Brand Equity. The overall Brand Equity product and package
We've demonstrated an ability to
construct that we call "Brand We already know, from our evaluate and differentiate ads on
This begs the question: "If performance, the "look and feel" 1 Brigitte Biteau and David Brandt,
Health" depends on three major Brand Equity studies, that the the basis of their potential to "Pre-Testing and Sales Validation,"
Equity drives the Brand, what of the brand, and the brand
factors: Brand Equity Equity Index and its components enhance or reinforce Brand Admap, February 2000; Dave Walker,
drives Equity?" name itself, each had a stronger
perceptions, Consumer are directly correlated with Equity. But more than that, the "Better Validation, Better
correlation to Equity than Copytesting: Reaching for a Higher
Involvement with the category, We went looking for answers in a Purchase Intent (PI) for the relationship between sales -
advertising had [see Figure 2]. Standard."ARF Advertising and Copy
and Price/Value perceptions. follow-up study, that we reported brand. In our copytest, we turn validated measures of short-term Research Workshop, NY: Advertising
But favorable ad awareness also
These are derived measures, at last year's Week of Purchase Intent into a Persuasion advertising impact, on the one Research Foundation, 1995.
had a significant relationship to
based on a series of standard Workshops3. This study was measure by evaluating the hand, and market-validated 2 Abundant testimony includes Simon
Equity. In particular, it
rating scales [see Figure 1]. more focused than the first one, change in PI for the ad, measures of Brand Equity, on the Broadbent, "Measuring the long-term
contributed to ratings for
concentrating on 79 brands from compared to its matched Control other, is both compelling and impact of advertising to the
The Brand Equity measure Familiarity and perceived advertiser's satisfaction." Monitoring
20 different categories of FMCGs group with no ad exposure. useful.
summarizes consumer Uniqueness - qualities that have Advertising Performance - Admap
with a relatively high penetration seminar, 1996; John Philip Jones,
perceptions on five dimensions: a logical relationship to Since the Equity measures are It shows that immediate and
- in all, over 2,700 consumers When Ads Work. New York:
Familiarity, Uniqueness, advertising. already correlated with PI in the long-term objectives are
gave more than 10,000 brand Lexington Books, 1995; Kevin Keller,
Relevance, Popularity, and Control group, we need to take compatible, and may be mutually Building, Measuring and Managing
assessments. But why is advertising correlated
Quality. Involvement reflects the Equity ratings for each ad as supportive. It means the Equity Brand Equity. Prentice Hall, 1998;
with Equity at lower levels than Larry Light, "Brand Loyalty
consumers' reported sensitivity Each brand was rated on our five a change score too, relative to its ratings add a new Diagnostic
these other variables? One Marketing: A Top Management
to brand differences, how much Equity dimensions, and also on Control group levels. When we dimension to the copytest, to Perspective." ARF Annual Research
possibility is that advertising
brands matter to them in this several factors that we thought do, we find a direct relationship help advertisers understand and Conference, NY: Advertising
influences these other
category; and Price represents should contribute to Brand to persuasion: ads that produce optimize performance on the Research Foundation, 1995; Leonard
perceptions indirectly, but more Lodish, "Key Findings from the 'How
the perceived price/value Equity - including perceptions of a bigger change in the Brand short-term measures. As some of
strongly than consumers think it Advertising Works' Study," and Beth
relationship. To line up these the advertising. Specifically, we Equity ratings produce a bigger these tested ads find their way Lubetkin, "Additional Major Findings
does. And of course, the brands
ratings with business results, we asked whether they recalled change in Purchase Intent [see into media schedules and the from the 'How Advertising Works'
would vary in the level and
also need to account for brand advertising for the brand and if Figure 8]. brands are measured again in our Study" ARF Conference, Nov. 1991.
quality of their advertising
size. so, whether they felt the longitudinal studies, we expect to 3 John Hallward, Ipsos-ASI. "The
support. In any case, This relationship holds for each
advertising had a favorable see that ads that move these Creators of Brand Equity." ARF Week
The derived measure of Brand perceptions of the advertising are of the components of the Equity of Workshops 2001, Chicago.
impact on their opinion of the Equity ratings, in the copytest,
Health shows a strong correlation correlated with Equity. This Index: Familiarity, Uniqueness,
brand. will build Brand Equity in the
with consumers' reported brand confirms our belief that Relevance, Popularity, and long term.
loyalty, commitment, purchase advertising contributes to Brand Quality.
intent ratings, and price Equity, or at least, that it can -
sensitivity. At the brand level, which points to the need for a
we also find a strong relationship way to measure an ad's potential
to market share, and to five-year contribution to Brand Equity, in a
pretest. Figure 8
trends in share and profitability.
Average Change in Purchase Intent (Definitely/Probably Buy) by
Figure 1 Change vs. Control (Tertiles) for Equity Index and Ratings
Figure 2
Equity*Builder Model DEPENDENT VARIABLES n=90 AdTests vs. Control Top 1/3 Middle 1/3 Bottom 1/3
Respondent Level Correlations with Brand Equity Index
Relevance
.87 Correlation Brand Equity Index 9.0 4.2 2.3
Popularity Brand Loyalty Product Performance .74
Quality Brand Equity Familiarity 7.6 4.1 3.8
Commitment
Uniqueness Packaging Performance .58
Familiarity Purchase Interest Uniqueness 8.5 5.2 1.7
Price Sensitivity
Artwork/Logo/"Look" .55
Relevance 10.3 2.3 2.8
Brand Sensitivity Category Brand Name .53
BRAND HEALTH
Substitutability Involvement Popularity 9.2 3.7 2.6
In-Market Performance Advertising .36
.75 Correlation Quality 7.3 7.1 0.7
Price Comparison
Market Share
Price Evaluation Price/Value
Share Trend: 5 Years
Profitability Trend: 5 Years
6
Ipsos-ASI, The Advertising North America Europe
Research Company Ipsos-ASI, Inc. Ipsos-ASI at
Norwalk, CT Ipsos-Insight Marketing
Ipsos-ASI is the largest provider of USA Montrouge, France
advertising pre-testing services in the Tel: +1.203.840.3400 Tel: +33.1.53.68.45.29
world. We are committed to working Fax: +1.203.840.3450 Fax: +33.1.53.68.01.87 This paper was originally presented by Dave Walker, Senior Vice President, Research Director Ipsos-ASI
with our clients to build brand health
Ipsos-ASI, Inc. Ipsos-ASI at at the ARF Week of Workshops on October 8, 2002.
and maximize the return on their
Cincinnati, OH Ipsos Deutschland
advertising investment by helping them
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