Improving Advertising Conversion Studies Chapter 47 Research Methodologies

Improving Advertising Conversion Studies Destination Marketing executives are responsible for designing and implementing strategies for attracting visitors to their destinations and are asked annually to give concrete answers to four questions: Destination Marketing executives are responsible for designing and implementing strategies for attracting visitors to their destinations and are asked annually to give concrete answers to four questions: How many people did the marketing strategy influence over the number that would have acted anyway without it? How many people did the marketing strategy influence over the number that would have acted anyway without it?

Cont… How much income net of the marketing campaign costs resulted from implementing the marketing campaign versus the income that would have resulted without it? How much income net of the marketing campaign costs resulted from implementing the marketing campaign versus the income that would have resulted without it? What specific elements in the campaign worked well and what worked poorly? What specific elements in the campaign worked well and what worked poorly? What are the demographic, lifestyle, and travel behavior profiles of inquirers and visitors associated with the marketing campaign? What are the demographic, lifestyle, and travel behavior profiles of inquirers and visitors associated with the marketing campaign?

Cont… These conversion research studies are conducted to answer the questions of how many inquirers from travel ads convert to visitors and what are the convertors’ demographic and travel-behavior characteristics. These conversion research studies are conducted to answer the questions of how many inquirers from travel ads convert to visitors and what are the convertors’ demographic and travel-behavior characteristics. The basic equation used in advertising conversion research studies is : The basic equation used in advertising conversion research studies is : Conversion=Visitors Conversion=Visitors Inquirers Inquirers

The Research Process Data Collection modes: Data Collection modes: Personal Interviews Personal Interviews Telephone Interviews Telephone Interviews Mail Interviews Mail Interviews Sampling Sampling Since the number of inquirers is usually high, sampling is one of the major problem areas to encounter Since the number of inquirers is usually high, sampling is one of the major problem areas to encounter Random sampling is generally accepted Random sampling is generally accepted

Cont… Two mistakes often made in selecting sampling sizes in conversion studies: Two mistakes often made in selecting sampling sizes in conversion studies: Using too large a sample Using too large a sample Using too small a sample Using too small a sample Response rate: Response rate: Typically, the response rates produced from an initial mailing range from 20 percent to 40 percent, however it is ideal to achieve 70 percent or above Typically, the response rates produced from an initial mailing range from 20 percent to 40 percent, however it is ideal to achieve 70 percent or above

Cont… Expenditures: Expenditures: Respondents are asked how much they spent while in the location under study Respondents are asked how much they spent while in the location under study Travelers do respond to questions on expenditures if broad expenditure categories are used for ex: 0, 1-50, , etc. Travelers do respond to questions on expenditures if broad expenditure categories are used for ex: 0, 1-50, , etc. Sponsor Identity: Sponsor Identity: The identification of a state or location as the sponsor of the study should be avoided The identification of a state or location as the sponsor of the study should be avoided Assessing Multiple trips Assessing Multiple trips

Data Analysis Revenues: Revenues: In calculating the average revenue per Inquiry (RPI), the total number of parties actually visiting has to be estimated. The total number of inquiries is multiplied by the percentage of those respondents who visited In calculating the average revenue per Inquiry (RPI), the total number of parties actually visiting has to be estimated. The total number of inquiries is multiplied by the percentage of those respondents who visited Costs Costs Average cost per inquiry (CPI) is obtained by dividing total cost of the advertising campaign by the number of inquiries Average cost per inquiry (CPI) is obtained by dividing total cost of the advertising campaign by the number of inquiries

Conclusion The following improvements have been suggested: The following improvements have been suggested: Using scientific research methods to estimate cause and effect relationships between advertising/marketing campaigns and dependent variables. Using scientific research methods to estimate cause and effect relationships between advertising/marketing campaigns and dependent variables. Controlling for non-response bias by ensuring response rates of 70 percent or better Controlling for non-response bias by ensuring response rates of 70 percent or better

Cont… Not identifying the real sponsor of the study by using an independent research agency Not identifying the real sponsor of the study by using an independent research agency Examining the dependent variables for four groups of respondents: Examining the dependent variables for four groups of respondents: Persons not reporting asking the fulfillment literature requested by them and sent to them Persons not reporting asking the fulfillment literature requested by them and sent to them Persons finding the literature not to be helpful in their travel planning Persons finding the literature not to be helpful in their travel planning Persons finding the literature to be helpful Persons finding the literature to be helpful Persons finding the literature to be helpful and taking with them on their trip Persons finding the literature to be helpful and taking with them on their trip