1. 12-1 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Chapter 12 Measuring the effectiveness of the IMC program 12-1

2. 12-2 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Learning objectives 1.To understand the importance of, and reasons for and against, measuring the effectiveness of marketing communication. 2.To establish some guidelines used in measuring IMC effectiveness. 3.To evaluate alternative methods for measuring IMC effectiveness against industry-developed criteria for successful evaluation. 4.To explore the unique challenges of IMC effectiveness and current approaches to evaluation including process measures, synergy measures and ROI.

3. 12-3 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measurement process Process measures Evaluation Marketplace testing Arguments for and against Evaluating IMC Testing for campaign development Importance of measurement What to test? When to test? Where to test? How to test? Pre-testing finished ads Rough art & copy Concept testing Synergy ROI New measures

4. 12-4 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Singapore’s Ministry of Community Development, Youth and Sports (MCYS)

5. 12-5 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 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.

6. 12-6 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 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’

7. 12-7 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measurement process Process measures Evaluation Market place testing Arguments for and against Evaluating IMC Testing for campaign development Importance of measurement What to test? When to test? Where to test? How to test? Pre-testing finished ads Rough art & copy Concept testing Synergy ROI New measures

8. 12-8 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Three phases of evaluation

9. 12-9 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 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

10. 12-10 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Reasons for and against measuring effectiveness Objections from creative personnel Evaluate alternative strategies Avoid costly mistakes Increase efficiency in general Disagreement on what to test Research problems Cost of measurement Determine if objectives are achieved Time For Against

11. 12-11 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Chiat/Day’s views on recall tests

12. 12-12 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measurement process Process measures Evaluation Market place testing Arguments for and against Evaluating IMC Testing for campaign development Importance of measurement What to test? When to test? Where to test? How to test? Pre-testing finished ads Rough art & copy Concept testing Synergy ROI New measures

13. 12-13 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measuring advertising effectiveness What to test Source factors Message variables Media strategies Budget decisions What to test Source factors Message variables Media strategies Budget decisions How to test Testing guidelines Appropriate tests How to test Testing guidelines Appropriate tests When to test Pretesting Posttesting When to test Pretesting Posttesting Where to test Laboratory tests Field tests Where to test Laboratory tests Field tests

14. 12-14 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell What to test?

15. 12-15 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell When to test? Pretests Measures taken before the campaign is implemented Posttests Measures taken after the ad or commercial has gone to air

16. 12-16 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell When and where to test? Pretesting methods On-air tests Dummy ad vehicles Consumer juries Portfolio tests Physiological measures Theatre tests Rough tests Concept tests Readability tests Comprehension and reaction tests Laboratory Field

17. 12-17 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell When and where to test? Field posttesting methods Recall tests Inquiry tests Association measures Single-source systems Tracking studies Recognition rests Posttesting methods Posttesting methods

18. 12-18 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell How to test? Positioning advertising copy testing (PACT)

19. 12-19 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measurement process Process measures Evaluation Market place testing Arguments for and against Evaluating IMC Testing for campaign development Importance of measurement What to test? When to test? Where to test? How to test? Pre-testing finished ads Rough art & copy Concept testing Synergy ROI New measures

20. 12-20 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Testing for campaign development 3. Finished art or commercial testing 1. Concept testing 2. Rough testing 4. Market testing (posttesting) Occurs at various stages of campaign development Occurs at various stages of campaign development

21. 12-21 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Concept testing Qualitative and/or quantitative data are used to evaluate and compare alternative concepts. Explores consumers’ responses to ad concepts expressed in words, pictures or symbols. Alternatives are exposed to consumers who match the target audience. Reactions and evaluations are sought through focus groups, direct questioning, surveys, etc. Sample sizes depend on the number of concepts and the consensus of responses. Objective Method Output 12-21

22. 12-22 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Rough art, copy and commercial testing Number of ads that can be evaluated is limited Preference for ad types may overshadow objectivity Consumer may become a self- appointed expert A halo effect is possible Cost effectiveness Endorsements by independent third parties Achievement of credibility Consumer juries Control AdvantagesDisadvantages Comprehension and reaction tests 12-22

23. 12-23 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Rough testing terms Photomatic rough Animatic rough Live-action rough Terms 12-23

24. 12-24 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Online methods

25. 12-25 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Pretesting finished print ads Based on syllables per 100 words Other factors also considered A laboratory method Includes test and control ads Portfolio test have problems Readability tests Portfolio tests Distributed to random sample of homes Product interest may still bias results Dummy advertising vehicles

26. 12-26 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Dummy advertising vehicles

27. 12-27 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Pretesting finished digital ads Theatre tests  Measures changes in product preferences  May also measure:  Interest in and reaction to the commercial  Reaction from an adjective checklist  Recall of various aspects included  Interest in the brand presented  Continuous (frame-by-frame) reactions  Measures changes in product preferences  May also measure:  Interest in and reaction to the commercial  Reaction from an adjective checklist  Recall of various aspects included  Interest in the brand presented  Continuous (frame-by-frame) reactions On-air tests  Insertion in TV programs in specific markets  Limitations are imposed by ‘day-after recall’  Physiological measures  Insertion in TV programs in specific markets  Limitations are imposed by ‘day-after recall’  Physiological measures

28. 12-28 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Physiological measures Eye tracking Pupil dilation Galvanic skin response Brain waves Testing

29. 12-29 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Physiological measures: eye movement research

30. 12-30 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Market testing print ads Recall tests Inquiry tests Recognition tests Tracking studies Market testing: print ads Market testing: print ads

31. 12-31 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Starch-scored advertisements

32. 12-32 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Market testing broadcast commercials Test marketing Day-after recall tests Persuasive measures Diagnostics Comprehensive measures Single-source tracking Tracking studies Market testing: broadcast

33. 12-33 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell World’s most popular posttest

34. 12-34 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Tracking studies

35. 12-35 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Tracking studies (cont.)

36. 12-36 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measurement process Process measures Evaluation Market place testing Arguments for and against Evaluating IMC Testing for campaign development Importance of measurement What to test? When to test? Where to test? How to test? Pre-testing finished ads Rough art & copy Concept testing Synergy ROI New measures

37. 12-37 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measuring the effectiveness of the IMC program New measures New measures Need for common media currency; metrics for social media ROI Return on brand Investment Return on touchpoint investment Return on brand Investment Return on touchpoint investment Synergy Media interactions Interactions between communications mix elements Media interactions Interactions between communications mix elements Process measures The audit Alternative IMC measures

38. 12-38 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell New measures

39. 12-39 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Digital touch points

40. 12-40 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Social media

41. 12-41 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 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.