1. PowerPoint Presentation by Charlie Cook The University of West Alabama Eighth Edition © 2010 South-Western, a part of Cengage Learning All rights reserved. Measuring Advertising Message Effectiveness CHAPTER 10 INTEGRATED MARKETING COMMUNICATIONS IN ADVERTISING AND PROMOTION

2. 1.Explain the rationale and importance of message research. 2.Describe the various research techniques used to measure consumers’ recognition and recall of advertising messages. 3.Illustrate measures of emotional reactions to advertisements. 4.Explicate the role of persuasion measurement, including pre- and post-testing of consumer preference. 1.Explain the rationale and importance of message research. 2.Describe the various research techniques used to measure consumers’ recognition and recall of advertising messages. 3.Illustrate measures of emotional reactions to advertisements. 4.Explicate the role of persuasion measurement, including pre- and post-testing of consumer preference. Chapter Objectives After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–2

3. 5.Explain the meaning and operation of single-source measures of advertising effectiveness. 6.Examine some key conclusions regarding television advertising effectiveness. 5.Explain the meaning and operation of single-source measures of advertising effectiveness. 6.Examine some key conclusions regarding television advertising effectiveness. Chapter Objectives (cont’d) After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–3

4. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–4 Introduction to Advertising Research Measuring Message EffectivenessMeasuring Message Effectiveness  Enables management to increase advertising’s contribution toward achieving marketing goals and yielding a reasonable return on investment What Does Advertising Research Involve?What Does Advertising Research Involve?  Measures of media effectiveness  Measures of message effectiveness (later chapters)

5. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–5 Introduction to Advertising Research Stages of Advertising ResearchStages of Advertising Research  Copy development stage (pretesting)  “Rough” stage  Final production stage  After media run (posttesting)

6. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–6 Industry Standards for Message Research Principles of the Positioning Advertising Copy Testing (PACT) 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 Principle 4 Is based on a model of human response to communications—reception of a stimulus, comprehension of stimulus, and response to stimulus Principle 5 Allows for consideration of whether the advertising stimulus should be exposed more than once

7. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–7 Industry Standards for Message Research Principles of the Positioning Advertising Copy Testing (PACT) Principle 6 Recognizes that a more finished piece of copy can be evaluated more soundly—alternative executions must be tested in the same degree of finish Principle 7 System provides controls to avoid the bias normally found in the exposure context Principle 8 Takes into account basic considerations of sample definition in requiring that the sample be representative of the target audience Principle 9 Can demonstrate consistent results (reliability) and accurately predicts marketplace performance

8. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–8 What Do Brand Managers and Ad Agencies Want to Learn from Message Research? Does a particular advertisement have brand equity-enhancing and product sales-expanding potential?Does a particular advertisement have brand equity-enhancing and product sales-expanding potential?  Brand awareness  Brand image Advertising Research Foundation (ARF) StudyAdvertising Research Foundation (ARF) Study  Conclusion is that no one measure is universally appropriate or best.

9. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–9 Message Research Methods Qualitative Message Research Quantitative Message Research General Forms of Message Research

10. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–10 Quantitative Message Research Measurement Control Understanding Improvement Research Method Steps

11. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–11 Market Research Measures Measure Recognition and Recall Assesses whether advertising has successfully influenced brand awareness and influenced brand- related thoughts and feelings Emotional Reaction Provides indicators of whether advertisements have emotionally aroused consumers. Persuasive Impact Represents prebehavioral indicators of whether an advertisement is likely to influence purchase intentions and behavior. Sales Response Determines whether an advertising campaign has affected consumers’ purchases of an advertised brand.

12. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–12 Illustrative Message Research Methods Table 10.1

13. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–13 Measures of Recognition and Recall Starch Readership ServiceStarch Readership Service  Reader awareness of magazine ads service that examines reader awareness of ads in consumer magazines and business publications  Measures the primary objective of a magazine ad—to be seen and read  Eligible readers are classified as:  Noted  Associated  Read some  Read most

14. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–14 Measures of Recognition and Recall (cont’d) Starch Readership Service’s ADNORM indexStarch Readership Service’s ADNORM index  Used to compare 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)

15. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–15 Starch-Rated Advertisement for the Kia Sorento Figure 10.1 39% noted the ad 37% associated it 27% read some copy 10% read most of copy

16. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–16 Measures of Recognition and Recall (cont’d) Bruzzone Research Company (BRC)Bruzzone Research Company (BRC)  Conducts online testing of consumer recognition and recall of advertisers in television commercials  Asks subjects if they remember the advertiser’s name when reviewing the ad with anything identifying the brand now removed Advertising Response Model (ARM)Advertising Response Model (ARM)  Links responses to the 27 descriptive adjectives to consumers’ attitudes toward both the ad and the advertised brand and to their purchase interes

17. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–17 Measures of Recognition and Recall (cont’d) Bruzzone TestBruzzone Test  Provides valid prediction of actual marketplace performance along with being relatively inexpensive  Doesn’t provide a before-the-fact indication  Offers important information for evaluating a commercial’s effectiveness and whether it should continue to run

18. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–18 Script for Taco Bell’s “Carne Asada Taquitos” Commercial Figure 10.2

19. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–19 Advertising Response Model (ARM) for the “Carne Asada Taquitos” Commercial Figure 10.3

20. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–20 Key Scenes and Questions from BRC’s Test of the “Thanking the Troops” Commercial Figure 10.4

21. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–21 Advertising Response Model (ARM) for the “Thanking the Troops” Commercial Figure 10.5

22. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–22 Measures of Recognition and Recall (cont’d) Day-After Recall TestingDay-After Recall Testing  The Ipsos-ASI Next*TV Method 1.Recruit viewers 2.Mail sample video to national sample of consumers 3.Consumers view video with embedded advertisements 4.Day after viewing, consumers are contacted to measure their reactions to the TV program and advertisements 5.Calculation of message recall

23. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–23 Measures of Recognition and Recall (cont’d) Advantages of In-home Videotape SamplingAdvantages of In-home Videotape Sampling  In-home exposure makes it possible to measure advertising effectiveness in a natural environment  Possible to assess the ability of TV commercials to break through the clutter, gain the viewer’s attention, and influence message recallability and persuadability  Measuring recall one day after exposure, it can determined how well tested commercials are remembered after a delay period  Videotape technology allows the use of representative national sampling  By providing several alternative measures of persuasion, the Next*TV method allows brand managers and their ad agencies to select the measures that best meet their specific needs

24. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–24 Measures of Recognition and Recall (cont’d) The Recall ControversyThe Recall Controversy  Recall simply measures whether an ad is received but not whether the message is accepted  Recall is age-biased in favor of younger consumers  Recall scores generated by ads are not predictive of sales performance—scores and sales do not increase in tandem  Recall testing understates the memorability of commercials that employ emotional or feeling- oriented themes and is biased in favor of rational or thought-oriented commercials

25. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–25 Measurement of Emotional Reactions Brain Imaging (fMRI) Self-Report Measures (Verbal and Visual) Physiological Measures (Galvanometer and Pupillometer) Measuring Consumers’ Emotional Responses to Advertisements

26. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–26 Measures of Persuasion ARS (Advertising Research System) Persuasion MethodARS (Advertising Research System) Persuasion Method  Premeasure: respondents indicate brands they would prefer to receive if selected to win free items.  Postmeasure: After watching a television program with an embedded test commercial, respondents again indicate which brands they would prefer to receive if selected in a drawing.  The ARS Persuasion Score  The postmeasure percentage of respondents preferring the target brand minus the premeasure percentage who prefer that brand –Post % for target brand – Pre % for target brand  The higher the ARS Persuasion 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.

27. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–27 ARS Persuasion Scores and In-Market Results Table 10.2

28. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–28 Measures of Sales Response Single-Source SystemsSingle-Source Systems  Gather purchase data from panels of households and merge them with household demographic characteristics and with information about causal marketing variables such as advertisements that influence household purchases Data Collection TechnologyData Collection Technology  Electronic television meters  Optical laser scanning of universal product codes (UPC symbols)  Split-cable technology.

29. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–29 Single-Source Systems ACNielsen’s ScanTrackACNielsen’s ScanTrack  Panel members use handheld scanners to enter:  Coupons used  Record store deals  Record in-store features that influenced their purchasing decisions

30. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–30 Single-Source Systems IRI’s BehaviorScanIRI’s BehaviorScan  Records household purchases by linking up optically scanned purchases with ID numbers  Collects detailed demographic information  Measures household exposure to new television commercials under real world test conditions  Weight tests—panel households are divided into test and control groups  Copy tests—holds the amount of weight constant but varies commercial content

31. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–31 Some Major Conclusions about Television Advertising Ad copy must be distinctive The selling power of advertising wears out over time Ad weight without persuasiveness is insufficient Advertising works quickly if it works Enhancing Brand Performance with Television Advertising

32. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–32 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 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.Commercials for new brands tend to be most persuasive, but commercials for established brands can be made persuasive via brand differentiation.

33. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–33 Illustration of a Commercial with a Strong Selling Proposition Figure 10.6

34. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–34 BehaviorScan Tests of Advertising Effectiveness for 23 Frito-Lay Brands Table 10.3

35. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–35 Conclusion 2—More Is Not Necessarily Better: Weight Is Not Enough Ad WeightAd Weight  The frequency with which an advertisement is repeated to the same group of panel members in an IRI BehaviorScan test Conclusion:Conclusion:  An ineffective ad (not distinctive or persuasive) has no likelihood of increasing sales even if the TV ad weight is doubled or tripled

36. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–36 Relations among Advertising Weight, Persuasion Scores, and Sales Table 10.4

37. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–37 The Role of Sales-Effective Advertising for an Undisclosed Campbell Soup Brand Figure 10.7

38. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–38 The Relationship Between Media Weight and Creative Content 47 commercials for established brands were tested and classified as:47 commercials for established brands were tested and classified as:  Rational information  Heuristic appeals  Affectively based cues Finding:Finding:  Increased advertising weight led to significant sales increases in sales only for commercials using affective cues

39. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–39 Conclusion 3—All Good Things Must End: Advertising Eventually Wears Out Advertising ultimately wears out and must be refreshed to maintain or increase brand salesAdvertising 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 brandsFamiliar brands have been shown to wear out more slowly than unfamiliar brands

40. © 2010 South-Western, a part of Cengage Learning. All rights reserved.10–40 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 salesSome 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 adMost 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“Sunk costs” are an issue to consider, but if an ad is not working at first, it probably never will