ASSIGNMENT

ON

MEASURING ADVERTISING EFFECTIVENESS

SUBMITTED TO;

PROF. JASLEEN KAUR

SUBMITTED BY:

Kunal Rajput

M.B.A 2ND YEAR

ROLL NO- 6129

KHALSA COLLEGE PATIALA

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Add effectiveness
Testing or evaluation of advertising effectiveness refers to the managerial exercise
aimed at relating the advertising results to the established standards of performance
and objectives so as to assess the real value of the advertisement performance.

Reasons why Companies should Measure Advertising Effectiveness:

1. Avoiding Costly Mistakes: According to emarketer.com, “Online

advertising spending will reach $16.7 billion in 2006, marketer predicts.
That's a growth rate of 33.2%, the highest growth year-over-year expected
this decade.” This means that companies are spending thousands if not
millions of dollars each year to advertise online, but that is not to say that it
is being spent wisely.The only way to ensure that this money is not being
wasted on ineffective advertising programs is to continuously evaluate the
effectiveness of the chosen programs and to ensure that these programs are
achieving their intended purpose. Evaluating the effectiveness of the chosen
programs is not all about money, it also gives the e-marketer the opportunity
to analyze the non-tangible effects of the chosen program. For example, if a
company chooses to go with a pop-up advertising program, they can
evaluate it’s ROI by comparing its click-throughs to the amount of money
invested in building it. However that is not the extend of it; a good
evaluation program will be able to analyze the consumer’s reaction to that
program, its effects on the company’s image or its effectiveness in
comparison to a banner ad program.
2. Evaluating Alternative Strategies: Not only is it important to evaluate the
effectiveness of the chosen method, but also the opportunity costs of
choosing that method. Often after companies have chosen a method, they

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 focus their attention exclusively on that method ignoring the potential profits
that would have come about if they went with an ulterior method. A good
evaluation program will be able to analyze the effectiveness and the
opportunity costs of the chosen method.
3. Increasing the Efficiency of Advertising: often after companies choose a
particular method, they become attached to that method and lose sight of the
initial goal they were aiming for. Because the marketers know what the
intended message of that chosen program is, they expect their customers to
know that message as well. A continuous evaluation of the chosen program
will ensure that the message the consumers are receiving from this program
is aligned with the message the marketer intended to send.

Places for testing advertising effectiveness:

1. Laboratory Testing: In a lab testing environment, participants from the target

market are brought in to be asked questions about the ad or to evaluate their
reaction towards it. These questions and reaction measures will be used to evaluate
the ad based on the predetermined criteria mentioned earlier.

The major advantage of using this type of testing environment is the control it
providers for the researchers. In this environment, researchers can easily
manipulate each aspect of the ad (colour, size, format, etc.) to be able to examine
the effectiveness/contribution of each of these characteristics. After examining the
effectiveness of each of these aspects, the advertiser can choose ones which will be
the most effective for the ad.

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The major disadvantage of using this type of testing environment is the lack of
realism. According to the advertising and promotion book, “when people are
brought into a lab (even if has been designed to look like a living room) they may
scrutinize the ads much more than they would at home”

2. Field Testing: As mentioned earlier, the major drawback of lab testing is the
lack of realism, and field testing bypasses this drawback by testing the ad in the
environment it will be viewed in including all the competition, distraction and
comfort associated with that environment. For example, in a field test, researchers
might go out to the participants’ homes or offices and observe their reaction to the
ad.

Evaluation of advertising tests may be conducted prior to putting

the ad online or after. This section explores different methods of
pre-testing and post-testing.

1. Pre-testing: actions taken before the campaign is executed.

 Check-list test
 Opinion test
 Dummy magazine and portfolio test
 Inquiry test
 Mechanical test
2. Post-testing: occurs after the ad has been in the field. It is designed to
determine if the campaign is accomplishing the objectives required and to
serve as input of how well it’s doing.
 Inquiry tests: designed to measure advertising effectiveness on the
basis of inquiries generated from ads appearing in various print media.
The inquiry may take the form of the number of coupons
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 returned,phone calls generated, or direct inquiries through reader
cards. For example, if you called in a response to an ad recently,
perhaps you were asked how you found out about the
company/product or where you saw the ad. This is a very simple
measure of the ad’s or medium’s effectiveness.
 Recall tests: traditional interviews with Web users help determine
recall and whether viewers remember the ads they see, as well as
whether there is a “halo-effect” among ads. Scores are based on
percentage of respondents who can accurately recall the ad, idea
communication, and likelihood of purchase.
3. Concurrent testing: it is that which takes place while the advertisements are
run. The feedback is received from such testing and corrective actions can be
taken while the advertising campaign is on.
 Coincidental surveys
 Consumer diaries
 Mechanical devices
 Traffic counts

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