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Chapter 12 - Measuring the effectiveness of the IMC program. The goals of this chapter are: To understand the importance of, and reasons for and against, measuring the effectiveness of marketing communication; to establish some guidelines used in measuring IMC effectiveness; to evaluate alternative methods for measuring IMC effectiveness against industry-developed criteria for successful evaluation;...
Chapter 12 Measuring the effectiveness of the IMC program Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-1 Learning objectives To understand the importance of, and reasons for and against, measuring the effectiveness of marketing communication To establish some guidelines used in measuring IMC effectiveness To evaluate alternative methods for measuring IMC effectiveness against industry-developed criteria for successful evaluation To explore the unique challenges of IMC effectiveness and current approaches to evaluation including process measures, synergy measures and ROI Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-2 Arguments for and against Process measures What to test? Importance of measurement When to test? Synergy Evaluating IMC Evaluation Measurement process Where to test? ROI New measures Concept testing How to test? Testing for campaign development Rough art & copy Pre-testing finished ads Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Marketplace testing 12-3 Singapore’s Ministry of Community Development, Youth and Sports (MCYS) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-4 Singapore’s Ministry of Community Development, Youth and Sports (MCYS) (cont.) Campaign objectives Reach, engagement and impact objectives Make 500,000 people aware of the message Generate $1 million publicity Achieve 20,000 social media interactions Create 2000–3000 fans Attitudinal and behavioural objectives To encourage people to re-think their relationships and start dating Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-5 Selected campaign results Awareness ■ Watched by more than 3.2 million people on social media in less than 25 weeks ■ Generated more than S$2.3 million of print, radio and television PR Likeability ■ 19th most favourite YouTube video in the world ■ 88th most watched YouTube video in the world ■ More than 120 000 unique visitors on Facebook Engagement ■ More than 17 million impressions on Facebook; ■ More than 17 900 fans on the Facebook page ■ More than 100 000 interactions on Facebook page Behaviour change ■ 83% felt that ‘the ad made me think more about the meaning of marriage’ ■ 64% felt that ‘after seeing the ad, I view my partner differently’ ■ 33% felt that ‘after seeing the ad, I feel like meeting more people and start [sic] dating’ Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-6 Arguments for and against Process measures What to test? Importance of measurement When to test? Synergy Evaluating IMC Evaluation Measurement process Where to test? ROI New measures Concept testing How to test? Testing for campaign development Rough art & copy Pre-testing finished ads Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Market place testing 12-7 Three phases of evaluation Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-8 Importance of measurement The single biggest problem facing marketers since the invention of advertising is how to measure return on investment. Harold Mitchell, Mitchells Media, 2009 Half the money I spend on advertising is wasted; the trouble is, I don’t know which half John Wanamaker, US retailer, c.1910 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-9 Reasons for and against measuring effectiveness For Against Avoid Avoid costly costly mistakes mistakes Cost Cost of of measurement measurement Evaluate Evaluate alternative alternative strategies strategies Research Research problems problems Increase Increase efficiency efficiency in in general general Determine Determine ifif objectives objectives are are achieved achieved Disagreement Disagreement on on what what to to test test Objections Objections from from creative creative personnel personnel Time Time Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-10 Pretesting finished digital ads Theatre Theatre tests tests Measures Measures changes changes in in product product preferences preferences May May also also measure: measure: Interest Interest in in and and reaction reaction to to the the commercial commercial Reaction Reaction from from an an adjective adjective checklist checklist Recall Recall of of various various aspects aspects included included Interest Interest in in the the brand brand presented presented Continuous Continuous (frame-by-frame) (frame-by-frame) reactions reactions On-air On-air tests tests Insertion Insertion in in TV TV programs programs in in specific specific markets markets Limitations Limitations are are imposed imposed by by ‘day-after ‘day-after recall’ recall’ Physiological Physiological measures measures Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-27 Physiological measures Galvanic Galvanic skin skin response response Pupil Pupil dilation dilation Testing Testing Brain Brain waves waves Eye Eye tracking tracking Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-28 Physiological measures: eye movement research Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-29 Market testing print ads Inquiry Inquiry tests tests Recognition Recognition tests tests Market Market testing: testing: print print ads ads Tracking Tracking studies studies Recall Recall tests tests Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-30 Starch-scored advertisements Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-31 Market testing broadcast commercials Day-after Day-after recall recall tests tests Tracking Tracking studies studies Single-source Single-source tracking tracking Persuasive Persuasive measures measures Market Market testing: testing: broadcast broadcast Diagnostics Diagnostics Comprehensive Comprehensive measures measures Test Test marketing marketing Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-32 World’s most popular posttest Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-33 Tracking studies Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-34 Tracking studies (cont.) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-35 Arguments for and against Process measures What to test? Importance of measurement When to test? Synergy Evaluating IMC Evaluation Measurement process Where to test? ROI New measures Concept testing How to test? Testing for campaign development Rough art & copy Pre-testing finished ads Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Market place testing 12-36 Alternative AlternativeIMC IMCmeasures measures Measuring the effectiveness of the IMC program Process Process measures measures Synergy Synergy The The audit audit •• Media Media interactions interactions •• Interactions Interactions between between communications communications mix mix elements elements ROI ROI •• Return Return on on brand brand Investment Investment •• Return Return on on touchpoint touchpoint investment investment New New measures measures •• Need Need for for common common media media currency; currency; metrics metrics for for social social media media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-37 New measures Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-38 Digital touch points Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-39 Social media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-40 Summary and conclusions Research to measure the effectiveness is important to the IMC program Not enough companies systematically test their programs Problems exist with current research methodologies A variety of research methods—including pretesting and posttesting—were outlined It is important that effectiveness measures are linked to campaign objectives Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 12-41 ... testing 12-36 Alternative AlternativeIMC IMCmeasures measures Measuring the effectiveness of the IMC program Process Process measures measures Synergy Synergy The The audit audit •• Media Media interactions... objectives To understand the importance of, and reasons for and against, measuring the effectiveness of marketing communication To establish some guidelines used in measuring IMC effectiveness To evaluate... etc etc Sample Sample sizes sizes depend depend on on the the number number of of concepts concepts and and the the consensus consensus of of responses responses Output Output Qualitative Qualitative