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Advertising Effectiveness

The document discusses research on measuring the effectiveness of advertising. It covers three main types of research: 1) advertising elasticity which measures sales change from a 1% change in advertising levels, 2) advertising weight which refers to the level of advertising budgets, and 3) advertising frequency which refers to the number of ad exposures consumers receive. It also discusses the importance of creativity in advertising and methods for measuring effectiveness such as comparing objectives to results, measuring sales volume changes, and directly asking customers how they heard about the company. Problems with measurement are also outlined.

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Umer Khan
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610 views9 pages

Advertising Effectiveness

The document discusses research on measuring the effectiveness of advertising. It covers three main types of research: 1) advertising elasticity which measures sales change from a 1% change in advertising levels, 2) advertising weight which refers to the level of advertising budgets, and 3) advertising frequency which refers to the number of ad exposures consumers receive. It also discusses the importance of creativity in advertising and methods for measuring effectiveness such as comparing objectives to results, measuring sales volume changes, and directly asking customers how they heard about the company. Problems with measurement are also outlined.

Uploaded by

Umer Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

ADVERTISING EFFECTIVENESS

ADVERTISING EFFECTIVENESS
Introduction

Advertising effectiveness in markets refers
to 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.
Researches about Advertising
Effectiveness
1. RESEARCH ON ADVERTISING
ELASTICITY

Advertising elasticity is the percentage
change in sales of a brand for a 1 percent
change in the level of advertising.
Researches about Advertising
Effectiveness
2. RESEARCH ON ADVERTISING WEIGHT

Weight refers to the level or intensity of the
advertising budget.
Researches about Advertising
Effectiveness
3. RESEARCH ON ADVERTISING
FREQUENCY
A 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 advertising
exposures each consumer receives in a particular
time period.
Understanding the Value of
Creativity in Advertising
It is known fact that there should be an
element of creativity in an advertisement.
This creativity is to create something new,
unique, extremely attractive and appealing
to the consumers. In fact, advertising itself is
a creative process. It is the outcome of long
term planning and hard work on the part of
the copy writer & creative director who
prepares & shapes the final copy of
advertisement.
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 & ref
no. quotes.
Calculating sales leads and responses as a result of
advertising (ad to sales ratio)
Asking customers directly How did you hear about
us
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
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

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