Testing, Experiments, and Media Planning

Market Tests and Experiments Test –Simple field test of advertising Experiment –Carefully designed study of advertising –More control and manipulation across conditions involved in study

Why Test and Experiment? Help Planner Make Decisions –Sometimes faced with seemingly equal alternatives and must choose course Avoid Costly Errors –Rising costs and new media options –Must try alternatives before sinking too much into any one of them

Tests vs. Experiments Both are field studies, but differ a lot Tests are simple, usually one time, one or two market studies of “effects” Some care to assure markets are similar, but minimal controls –Ex. 500K vs. 1000K in spending What is the difference in the sales increase?

Tests vs. Experiments Experiments take greater care to assure market comparability Usually the same treatments are applied to two or more test markets Treatments are applied at random Random sample drawn from each market to test for effects

Analysis of Tests and Experiments In tests, typically just compare percentage in change between markets In experiments, use much more complex techniques, such as analysis of variance Experiments provide better basis for decision making, but are much more expensive and complex to conduct ?

Competitive Reaction Validity of findings must always be questioned in competitive context We make judgments about what would happen if we changed, but that does not account for what the competition might do in response

Logistics of Testing Number of markets to use –Usually three or less - too low Kinds of markets to include –Match population distribution –Independent, diversified economy –Competitive environment must match national –100, ,000,000

Media Testing Testing a Complete Plan Testing Spending Levels Testing Scheduling Strategies Testing Media Mixes Testing Alternative Ad sizes Testing Alternative, Emerging media