SONAL SELLING

TOPIC
advertising effectiveness and institutional framework
rationale of measuring advertising effectiveness
 INDEX

 MEANING OF ADVERTISING
EFFECTIVENESS

 MEASURING ADVERTISING
EFFECTIVENESS

 METHODS OF MEASURING
ADVERTISING
EFFECTIVENESS

 EVALUATING SALES EFFECTS

OF ADVERTISING

 CONCLUSION
 INTRODUCTION
Every year corporations pay immense sums of
cash on advertising. Advertisers would wish to
live the effectiveness of advertising to
justify outlay giant sums of cash on advertising...
John Wanamaker’s famous quote ,”I know that
half of my money is wasted… I just don’t know
which half”, calls upon the advertisers to evaluate
their advertising campaigns to avoid any costly
mistakes in advertising.

In different words, it's vital to work
out however well the effort is functioning and to
live its performance against preset advertising
objectives.
 EVALUATING
ADVERTISING EFFECTIVENESS

MEANING
Measuring advertising effectiveness refers to
evaluation of advertising results against the
predetermined standards of performance or
objectives. Advertising effectiveness can be
measured either before launching the advertisement
(pre-testing) or after launching the advertisement
(post testing). One of the most difficult tasks in
advertising is to measure advertising effectiveness.
The evaluation of an advertising campaigns should
focus on two key areas:
 Evaluating the communication effects of
Advertising
 Evaluating the sales effect of Advertising
MEASURING ADVERTISING
EFFECTIVENESS

 To determining whether an advertising campaign

accomplishes its advertising objectives or not.

 It is not easy to determine the effectiveness of

advertising because:
o Ads may have several objectives
o Ads work over extended time periods
o Results may not be observable
 OBJECTIVES OF
ADVERTISEMENT EFFECTIVENESS

Huge Expenditure

Return O n Investm ent

Valuable Feedback

S trategic A dvantage

H igher M orale

C ontrol
 Methods and techniques of evaluating
Communication Effects of Advertising
Advertising
1.PRE-TESTING TECHNIQUES: Pre testing of
advertisements is done before an ad is put into media. The
techniques used in pre-testing are as follows:
 Consumer Jury Test- This is a type of pretest designed
to determine the effectiveness of an advertisement
before it is run. It is known as a form of copy testing, a
general term used to describe tests designed to
evaluate advertisement before they are run, or
measure expected results from an advertisement. In
this test, a sample of typical prospective customers is
contacted to know their opinions about an
advertisement. This sample is known as “jury”. This
method is cost effective and provides control.
 Portfolio Tests- These tests ask consumers to view or
listen to a portfolio of advertisements. Consumers are
then asked to recall all the ads and their contents. The
recall level of an ad indicates its ability to stand out.
 Laboratory Tests-This test can be used to measure
attention, retention, awareness and desire. The
respondents are placed in a laboratory situation.
o Attitude Test: In this test the respondents are
asked questions regarding their feelings about a
particular advertisement. A checklist of qualities to
be included in advertising is developed. The
advertisement is considered effective if it develops
positive attitude towards the product.
o Eye camera: The viewing behavior of consumers is
measured in this technique. Eye movements are
recorded while they are watching pictures on a
screen. If eyes are fixed on pictures, the
commercial is considered interesting and
attractive. The eye movements recorded in the
video camera show which part of the
advertisement produced the initial attention.
o Pupillometric: It deals with eye dilation. Eyes widen
when something interesting or pleasant is seen,
and contract when confronted with unpleasant,
distasteful, or uninteresting things.
 An intriguing operation is the use of pupillometrics
in assessing TV advertisements.

2.POST-TESTING TECHNIQUES: These techniques are

used to ascertain how far an advertisement campaign has
been successful. The main post-testing techniques are as
follows:
 Memory Tests- These tests are based on the
assumption that an advertisement leaves a mental
‘residue’ with the person who has been exposed to it.
One way to increase the effectiveness of an ad,
therefore, is to contact consumers and find out what
they remember about it. Two types of memory tests
are:
o Recognition Test
o Recall Test
 Persuasion Test- In persuasion tests, the consumers
are asked how likely they are to buy a specific brand.
next they are exposed to an advertisement of that
brand, along with the advertisements of other products
and brands.
  Inquiry Tests- This test is used to judge the effects of
both the message and the media. The measurement is
done through inquiries. Certain incentives are offered
to motivate the respondents to reply to the inquiries.
EVALUATING THE SALES EFFECTS
OF ADVERTISING

SHARE OF
EXPENDITURES

SHARE OF
VOICE

SHARE OF
MIND AND
HEART

SHARE OF
MARKET

The sales effects of advertising can be evaluated by

carrying out sales-effect model research. Sales-effect
research seeks to determine whether the advertising
campaign has generated the intended
sales growth.
Advertising’s sales effect is generally more delicate to 
measure as compared to communication effect. This is
because sales are influenced not only by advertising but by
many other factors like the product features, price,
packaging, etc.
Also, the effect of advertising on sales may be realized in
the long run. In the short run, advertising may
not induce immediate sales.
Historical method and Experiments are the ways through
which researchers measure the sales impact. Comparison
of past sales with past advertising expenditures is involved
in HISTORICAL METHOD. Researchers may also use
EXPERIMENTS to measure advertising’s sales impact.
For example, to test the effects of different advertising
spendings levels, a company could vary the amount it
spends on advertising in different markets and measure the
differences in the resulting sales levels. It could spend
some fixed amount in one market area, half the amount in
another area, twice the amount in a third area. Most forms
of advertising testing are concerned with measuring
learning attitudes and behavior. In advertising the object to
be measured will vary according to the details of the
 campaign. In addition to copy, media
strategies, budgeting method, etc. may also be
tested.
.

FIRMS ADVERTISING SHARE OF SHARE OF ADVERTISING

EXPENDITURE VOICE (%) MARKET EFFECTIVENESS
(1)
(2) (3)(2)/TOTAL (%) (5) = (4)(3)*100
AD (4)
EXPECDITUR
E

X 50,00,000 50 40 80
Y 30,00,000 30 30 100
Z 20,00,000 20 30 150
Total 1,00,00,00 100 100
0
CALCULATION OF SHARE OF VOICE AND
ADVERTISING EFFECTIVENESS
An advertising effectiveness rating of 100 means an
effective level of advertising expenditure. A rating
below 100 means a relatively ineffective advertising
level, and a level above 100 indicates a very effective
advertising level.

“Measuring advertising effectiveness

helps the advertising manager to
know how well the ad campaign is
working and what worth the company
is getting after spending a huge
amount of money on advertising.”
Measuring advertising effectiveness
helps to avoid costly mistakes, helps
in selecting the best advertising
copy, in justifying the costs of
advertising, in exercising control over
the advertising campaign and helps
in reducing wastage in advertising
expenses.
Thus, measuring advertising
effectiveness is always in the interest
of the organization.
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