 2007 Thomson South-Western Assessing Ad Message Effectiveness Chapter Twelve

2 Chapter Twelve Objectives Explain the rationale and importance of message research. Describe the various research techniques used to measure consumer’s recognition and recall of advertising messages. Illustrate measures of physiological arousal to advertisements.

3 Chapter Twelve Objectives Explicate the role of persuasion measurement, including pre- and post- testing of consumer preference. Explain the meaning and operation of single-source measures of advertising effectiveness. Examine some key conclusions regarding television advertising effectiveness.

4 Overview of Advertising Research More than 80% of advertisers and agencies pretest television commercials before airing them on a national basis. It’s not easy or inexpensive but the value outweighs the drawbacks.

5 What Does Advertising Research Involve? To test effectiveness of messages Pretesting ads during developmental stages Posttesting to determine if messages achieve their established objectives Media Effectiveness (covered later) Message Research

6 Four Stages At Which Ad Message Research Might Be Conducted 1.Copy development stage 2.“Rough” stage 3.Final production stage 4.After the ad has been run in the media

7 Industry Standards for Message Research Principle 1: provide measurements that are relevant to the advertising objectives Principle 2: requires agreement about how the results will be used in advance of each specific test Principle 3: provides multiple measurements because single measurements are generally inadequate PACT Principles

8 Industry Standards for Message Research Principle 4: based on a model of human response to communications Reception of a stimulus Comprehension of the stimulus The response of the stimulus Principle 5: allows for consideration of whether the advertising stimulus should be exposed more than once PACT Principles

9 Industry Standards for Message Research Principle 6: recognizes that a more finished piece of copy can be evaluated more soundly Alternative executions be tested in the same degree of finish Principle 7: system provides controls to avoid the bias normally found in the exposure context PACT Principles

10 Industry Standards for Message Research Principle 8: takes into account basic considerations of sample definition Requires that the sample be representative of the target audience Principle 9: can demonstrate reliability and validity A reliable test is one that yields consistent results A valid test is one that is predictive of the marketplace performance PACT Principles

11 What Can Be Learned from Message Research? Message research is needed to diagnose an advertisement’s prospective equity- enhancing and sales-expanding potential. The ARF assessed which of 35 measures best predicts the sales effectiveness of television commercials. The only definitive conclusion of their study is that no one measure is universally appropriate or best.

12 Message Research Methods Qualitative Message Research Quantitative Message Research

13 Quantitative Message Research Measurement Understanding Control Improvement

14 Illustrative Message Research Methods

15 Advertising Research Methods Physiological Arousal Persuasion Recognition & Recall Sales Response Message Research Methods

16 Message Research Methods Physiological Arousal Persuasion Recognition & Recall Sales Response Starch readership service (magazines) Bruzzone tests (TV) Burke day-after recall (TV)

17 Starch Readership Service Measures the primary objective of a magazine ad—to be seen and read Examines reader awareness of ads in consumer magazines and business publications Readers are classified

18 Starch Readership Service Classifications Noted—remember having previously seen the ad in the issue being studied Associated—noted the ad and saw or read some part of it that clearly indicated the name of the brand or advertiser

19 Starch Readership Service Classifications Read Some—read any part of the ad’s copy Read Most—read half or more of the written material in the ad

20 Starch Readership Service Indices are developed ADNORM index: compares an advertisement’s scores against other ads in the same product category as well as the same size (e.g., full page) and color classifications (e.g., four-color ads)

21 Measures of Recognition & Recall 39% of people noted the ad, 37% associated it, 27% read some of it, and 10% read most of the body copy contained in the ad.

22 Measures of Recognition & Recall 58% of people noted the ad, 54% associated it, 39% read some of it, and 39% read most of the body copy contained in the ad.

23 Starch Readership Service Kia Sorento ad Adnorm index scores 72 (noted) 74 (associated) 73 (read some) 59 (read most) The ad performed 28% worse than the average noted score for similar ads. Jose Cuervo Especial Tequila ad 107 (noted) 108 (associated) 105 (read some) 229 (read most) The ad performed slightly above average noted score for similar ads.

24 Bruzzone Tests Bruzzone test provides advertisers with a test of consumer recognition of television commercials. Anything identifying the brand is removed, to test whether viewers remember the name of the advertiser.

25 Measures of Recognition & Recall Advertising Response Model (ARM) links responses to the 27 descriptive adjectives to consumers’ attitudes toward both the ad and the advertised brand and to purchase interest. Bruzzone test

26 ARM for the “Thanking the Troops” Commercial

27 Measures of Recognition & Recall Provides valid prediction of actual marketplace performance along with being relatively inexpensive Doesn’t provide a before-the-fact indication Tests offer important info for evaluating a commercial’s effectiveness and whether it should continue to run Tests are performed online Bruzzone test

28 Measures of Recognition & Recall Used to assess the effectiveness of test commercials and to ID strengths and weaknesses (1) Claimed-recall scores—indicate the percentage of respondents who recall seeing the ad (2) Related-recall scores—indicate the percentage of respondents who accurately describe specific advertising elements Burke Day-After Recall Testing

29 Measures of Recognition & Recall Coke execs reject recall as a valid measure 1) Recall simply measures whether an ad is received but not whether the message is accepted 2) Recall is biased in favor of younger consumers Burke Day-After Recall Testing

30 Measures of Recognition & Recall 3) Recall scores generated by ads are not predictive of sales performance 4) Day-after recall testing is biased against certain types of advertising content Understate the memorability of commercials that employ emotional or feeling-oriented themes and are biased in favor of rational or thought-oriented commercials Burke Day-After Recall Testing

31 Day-After Recall Vs. Masked- Recognition Research Findings

32 Message Research Methods Physiological Arousal Persuasion Recognition & Recall Sales Response Psychogalvanometer Pupilometer

33 Measures of Recognition & Recall Ads that are better liked are more likely to be remembered and to persuade Efforts are now made to measure consumer’s affective and emotional reactions to ads Measures of Physiological Arousal

34 Measures of Recognition & Recall Galvanometer—measures minute levels of perspiration in response to emotional arousal Pupillometric tests—measure pupil dilation Advertising researchers use changes in physiological functions to indicate the actual, unbiased amount of arousal resulting from ads. Measures of Physiological Arousal

35 Message Research Methods Physiological Arousal Persuasion Recognition & Recall Sales Response Ipsos-ASI Next*TV method Rsc’s ARS Persuasion method

36 Measures of Persuasion Used when an advertiser’s objective is to influence consumers’ attitudes toward and preference for the advertised brand.

37 Measures of Persuasion Performs ad research in more than 50 countries Tests television commercials in consumers’ homes Tells consumers to evaluate a TV program, but actually evaluating the commercials within the program Ipsos-ASI Next*TV Method

38 Measures of Persuasion One day after viewing—personal contact with sampled consumers and measure their reactions to the TV program and the advertisements Measures message recall and persuasion Ipsos-ASI Next*TV Method

39 Measures of Persuasion Persuasion measured by: Consumers’ attitudes toward advertised brands Shift in brand preferences Brand-related purchase intent and frequency Ipsos-ASI Next*TV Method

40 Measures of Persuasion 1)Tests in a natural environment 2)Assesses the ability of TV commercials to break through the clutter 3)Determines how well tested commercials are remembered after this delay period 4)Allows the use of a representative national sampling Ipsos-ASI Next*TV Method

41 Measures of Persuasion 1)Respondents indicate what brands they prefer to receive among a “basket” of options—the pre measure. 2)After exposure to a television program respondents again indicate what brands they would prefer to receive if their name were selected in a drawing—the post measure. The ARS Persuasion Method--rsc ARS Persuasion Score = Post % for target brand – Pre % for target brand

42 Measures of Persuasion The ARS Persuasion score simply represents the post-measure percentage of respondents preferring the target brand minus the pre- measure percentage who prefer that brand A positive score indicates a shifted preference toward the target brand A higher-scoring commercial generates greater sales volume and larger market share gains The ARS Persuasion Method--rsc

43 Measures of Persuasion ARS Persuasion scores are valid predictors of in-market performance The higher the score, the greater the likelihood that a tested commercial will produce positive sales gains when the focal brand is advertised under real- world, in-market conditions The ARS Persuasion Method--rsc

44 Predictive Validity of ARS Persuasion Scores

45 Message Research Methods Physiological Arousal Persuasion Recognition & Recall Sales Response AC Nielsen’s SCANTRACK IRI’s BehaviorScan

46 Measures of Sales Response Single-Source Systems Gather purchase data from panels of households using: (1) electronic television meters (2) optical laser scanning of universal product codes (UPC) at retail checkout (3) split-cable technology

47 Measures of Sales Response SCANTRACK collects purchase data by having panel households use handheld scanners Panelists record purchases of every bar-coded product purchased regardless of the store where purchased Nielsen’s SCANTRACK

48 Measures of Sales Response Use handheld scanners to enter: Any coupons used Record all store deals Record in-store features that influenced their purchasing decisions Nielsen’s SCANTRACK

49 Measures of Sales Response IRI knows what items each household purchases by linking up optically scanned purchases with ID numbers Members provide IRI with detailed demographic information IRI’s BehaviorScan

50 Measures of Sales Response Single source data consists of: (1) household demographic info (2) household purchase behavior (3) household exposure to new television commercials that are tested under real world test conditions IRI’s BehaviorScan

51 Measures of Sales Response Uses optically scanned purchase data to know exactly which commercial each household had the opportunity to see and how much of a brand is purchased IRI’s BehaviorScan

52 Measures of Sales Response Two types of tests are offered: (1) weight tests and (2) copy tests 1)Weight tests—panel households are divided into test and control groups 2)Copy tests—holds the amount of weight constant but varies commercial content IRI’s BehaviorScan

53 Conclusions by rsc Ad copy must be distinctive Ad weight without persuasiveness is insufficient The selling power of advertising wears out over time Advertising works quickly if it works at all

54 Conclusion 1: All Commercials Are Not Created Equal: Ad Copy Must Be Distinctive Commercials having strong selling propositions are distinctive and tend to achieve higher ARS Persuasion scores. Commercials for new brands tend to be most persuasive, but commercials for established brands can be made persuasive via brand differentiation.

55 Illustration Of a Commercial With a Strong Selling Proposition

56 Evidence from Frito-Lay’s Copy Tests

57 Conclusion 2—More is Not Necessarily Better: Weight Is Not Enough Ad weight means the number of gross rating points (GRP) that support an advertising campaign. An ineffective ad (not distinctive or persuasive) has no likelihood of increasing sales even if the ad weight is doubled or tripled.

58 Relations Among Advertising Weight, Persuasion Scores, and Sales.

59 The Role of Sales-Effective Advertising for an Undisclosed Campbell Soup Brand

60 The Relationship Between Media Weight and Creative Content 47 commercials for established brands were tested and classified as: 1.Rational information 2.Heuristic appeals 3.Affectively based cues Finding: increased advertising weight led to significant sales increases in sales only for commercials using affective cues.

61 Conclusion 3—All Good Things Must End: Advertising Eventually Wears Out Advertising ultimately wears out and must be refreshed to maintain or increase brand sales. Familiar brands have been shown to wear out more slowly than unfamiliar brands.

62 Conclusion 4—Don’t Be Stubborn: Advertising Works Quickly or Not at All Some advertisers tend to “hang in there” and wait for an ad to increase sales. Most of the sales impact occurs in the first three months of a new ad. “Sunk costs” are an issue to consider, but if an ad is not working at first, it probably never will.