Unit 5 - Monitoring - Control

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Advertising & Media

Unit 5
Monitoring, Evaluation & Control
Measuring effectiveness, conducting
research, testing process, Regulation of
Adv., & Promotion Etc….
Monitoring, Evaluation & Control

• The final stage of the promotional planning process is monitoring, evaluating, and
controlling the promotional program.

• It is important to determine how well the promotional program is


meeting communications objectives and helping the firm accomplish its overall
marketing goals and objectives.

• The promotional planner wants to know not only how well the promotional
program is doing but also why.

For example, problems with the advertising program may lie in the nature of the
message or in a media plan that does not reach the target market effectively.
• The manager must know the reasons for the results in order to take the right steps
to correct the program.

• This final stage of the process is designed to provide managers with continual
feedback concerning the effectiveness of the promotional program, which in turn
can be used as input into the planning process.

Reasons to measure effectiveness

• To avoid costly mistakes

• To evaluate alternative strategies (traditional, social, digital or combination)?

• To increase the efficiency of advertising (brand recall, reaching max. people…)

• To determine if objectives are achieved (message delivered to right audience, with


right meaning and intention)
Conducting Research to Measure Advertising Effectiveness

What to Test?

• we had previously discussed the components of the communication model


(source, message, media, receiver) and the importance of each in the promotional
program.

• Marketers need to determine how each is affecting the communication process.

• Other decisions made in the promotional planning process must also be


evaluated.
1. Source Factors

• An important question is whether the spokesperson being used is effective and


how the target market will respond to him or her.

• Or a product spokesperson may be an excellent source initially but, owing to a


variety of reasons, may lose impact over time.

• Negative publicity can easily change the value of a source.

• The fact that so many of the companies using Tiger Woods (Golf World
Champion) as a spokesperson terminated their contracts with him was based on
the expectation that the target audiences would no longer have positive
perceptions of him.

• The list of celebrities who have fallen out of favor is a long one.
2. Message Variables

• Both the message and the means by which it is communicated are bases for
evaluation.

• the message may not be strong enough to pull viewers into the ad by attracting
their attention or clear enough to help them evaluate the product.

• https://www.youtube.com/watch?v=HItm_ScpOkY (CERA Ad 2019)

• A number of companies are now attempting to determine the specific reactions


that viewers have to product and brand messages, including excitement,
engagement, stress, and anxiety responses.
3. Media Strategies

• Research may be designed in an attempt to determine which media class

• (for example, broadcast versus print), subclass (newspapers versus magazines),


or specific vehicles (which newspapers or magazines) generate the most effective
results.

Likewise

• how does one digital medium compare relative to others, or to traditional media?

• Perhaps most importantly, how does each medium contribute to the achievement
of overall IMC objectives?
• An important factor is the vehicle option source effect,

“the differential impact that the advertising exposure will have on the same audience
member if the exposure occurs in one media option rather than another.”

• People perceive ads differently depending on their context

• Another factor to consider in media decisions involves scheduling.

• The evaluation of flighting (An Ad strategy where seller runs ads for a period and then
no ads at all for another period) versus pulsing (Ad’s run throughout the year, but in
some seasons will increase or decrease with demand / supply) or continuous
schedules is important, particularly given the increasing costs of media time.

• As more and more companies and organizations move toward an integrated media
mix, it becomes increasingly important to attempt to determine the individual
contributions of various media as well as their synergistic effect.
4. Budgeting Decisions

• A number of studies have examined the effects of budget size on advertising


effectiveness and the effects of various ad expenditures on sales.

• Many companies have also attempted to determine whether increasing their ad


budget directly increases sales.

• This relationship is often hard to determine, perhaps because using sales as an


indicator of effectiveness ignores the impact of other marketing-mix elements.

• More definitive conclusions may be possible if other dependent variables, such as


the communications objectives stated earlier, are used.
Measuring Effectiveness of an Advertising Program
• Pretests are measures taken before the campaign is implemented; posttests
occur after the ad or commercial has been in the field.

A) Pre-Tests

• Pretests may occur at a number of points, from as early on as idea generation to


rough execution to testing the final version before implementing it.

• More than one type of pretest may be used.

I) Laboratory Tests

• people are brought to a particular location where they are shown ads and/or
commercials. The testers either ask questions about them or measure
participants’ responses by other methods— for example, pupil dilation, eye
tracking, or galvanic skin response.

• https://www.youtube.com/watch?v=IRkXL9rRbmk (Liril Ad)


• The major advantage of the lab setting is the control it affords the researcher.

• Changes in copy, illustrations, formats, colors, and the like can be manipulated
inexpensively, and the differential impact of each assessed.

II) Field Tests

• are tests of the ad or commercial under natural viewing situations, complete with
the realism of noise, distractions, and the comforts of home.

• Field tests take into account the effects of repetition, program content, and even
the presence of competitive messages.
• The major disadvantage of field tests is the lack of control. It may be impossible
to isolate causes of viewers’ evaluations.

• If a typical event/s occur during the test, they may bias the results.

• Competitors may attempt to sabotage the research.

• And field tests usually take more time and money to conduct, so the results are
not available to be acted on quickly.

• https://www.youtube.com/watch?v=ETjfqFzvcJY (Telsa backfire)


How to Test?

• Conducting evaluative research is not easy. Twenty-one of the largest U.S. ad


agencies have endorsed a set of principles aimed at

“improving the research used in preparing and testing ads, providing a better creative
product for clients, and controlling the cost of TV commercials.”

• This set of nine principles, called Positioning Advertising Copy Testing


(PACT), defines copy testing as research

“that is undertaken when a decision is to be made about whether advertising should


run in the marketplace. Whether this stage utilizes a single test or a combination of
tests, its purpose is to aid in the judgment of specific advertising executions.”
Positioning Advertising Copy Testing (PACT) 9 Principles
The Testing Process

Testing may occur at various points throughout the development of an ad or a


campaign:

(1) concept generation research

(2) rough, prefinished art, copy, and/or commercial testing

(3) finished art or commercial pretesting; and

(4) market testing of ads or commercials (post-testing).

(1) Concept Generation testing & Research

Figure in next slide describes the process involved in Advertising Concept Testing.
• Another way to gather consumers’ opinions of concepts is mall intercepts, where
consumers in shopping malls are approached and asked to evaluate rough ads
and/ or copy.

• Rather than participating in a group discussion, individuals assess the ads via
questionnaires, rating scales, and/or rankings.

• New technologies allow for concept testing over the Internet, where advertisers
can show concepts simultaneously to consumers throughout the United States,
garnering feedback and analyzing the results almost instantaneously.
(2) Rough Art, Copy, and Commercial Testing

• Because of the high cost associated with the production of an ad or commercial


(many network commercials cost hundreds of thousands of dollars to produce),
advertisers are increasingly spending more monies testing a rendering of the final
ad at early stages.
• Most of the tests conducted at the rough stage involve lab settings, although
some on-air field tests are also available.

• Popular tests include comprehension and reaction tests and consumer juries.

a) Comprehension & Reaction Tests

• One key concern for the advertiser is whether the ad or commercial conveys the
meaning intended. The second concern is the reaction the ad generates.

• Obviously, the advertiser does not want an ad that evokes a negative reaction or
offends someone.

• Comprehension and reaction tests are designed to assess these responses


(which makes you wonder why some ads are ever brought to the marketplace).
• Tests of comprehension and reaction employ no one standard procedure.

• Personal interviews, group interviews, and focus groups have all been used for
this purpose, and sample sizes vary according to the needs of the client; they
typically range from 50 to 200 respondents.

b) Consumer Juries

• This method uses consumers representative of the target market to evaluate the
probable success of an ad.

• Consumer juries may be asked to rate a selection of layouts or copy versions


presented in paste-ups on separate sheets.

• The objectives sought and methods employed in consumer juries are shown in
Figure 18–9.
C) A / B Testing

• The process involves the testing of two versions of an advertisement or


homepage to see which will be the more effective prior to launch. In the vast
majority (if not all) of these cases the ads or web pages are finished products.

Pre-Testing of Finished Ads

• a finished advertisement or commercial is used; since it has not been presented


to the market, changes can still be made.

• Many researchers believe testing the ad in final form provides better information.

• Several test procedures are available for print and broadcast ads, including both
laboratory and field methodologies.
• Print methods include portfolio tests, analyses of readability, and dummy
advertising vehicles.

• Broadcast tests include theater tests and on-air tests. Both print and broadcast
may use physiological measures.

a) Portfolio Tests

• Portfolio tests are a laboratory methodology designed to expose a group of


respondents to a portfolio consisting of both control and test ads.

• Respondents are then asked what information they recall from the ads. The
assumption is that the ads that yield the highest recall are the most effective.
b) Readability Tests

• The communications efficiency of the copy in a print ad can be tested without reader
interviews.

• This test uses the Flesch formula, named after its developer, Rudolph Flesch, to
assess readability of the copy by determining the average number of syllables per
100 words.

• The test suggests that copy is best comprehended when sentences are short, words
are concrete and familiar, and personal references are drawn.

• The Flesch Kincaid Reading Ease Score method eliminates many of the
interviewee biases associated with other tests and avoids gross errors in
understanding.

• The norms offer an attractive standard for comparison.


c) New Print Pre-Testing Measures

• In an effort to improve upon the traditional print pretest measures, a number of


companies have introduced new methodologies or improved-upon existing methods.

• For example, Ipsos-ASI Next*Connect has introduced an online copy testing tool
that can test ads on digital or traditional media. Consumers are recruited to
complete.

• an online survey where they are exposed to a variety of ad messages. The results
are compared against a control group that was not exposed to the advertising.

• The methodology allows for testing ads in finished or rough formats, for individual
executions or multiple campaign elements, and determine ads’ impact in traditional
and new media.
• Another Example, The PTG (PreTesting Group) methodology measures the time
a respondent spends with a print ad or tablet or with a hidden camera in a store.

• The magazines contain a number of ads targeted toward the interests of the
consumers.

• Unknown to the consumers, as they go through the magazines, hidden cameras


using eye-tracking technology record where their eyes go on the page, how long
they stay on the page, and the stopping power of the ad.
• Another Example, Millward Brown offers its own trademarked methodology as
well, called Link.

• According to the company, Link uses a comprehensive set of diagnostic questions


to evoke viewer reactions to the ads.

• Nonverbal measures including eye tracking can also be used to determine


consumers’ enjoyment, comprehension, involvement, and other reactions to the
ads.

• The three key metrics provided include awareness, persuasion, and short-term
sales likelihood.
Pre-Testing Finished Broadcasting Ads

• The tests can typically be used for rough and / or finished ads and are most
commonly conducted in a lab or online.

a) Theater Tests

• In theater tests participants are invited to view pilots of proposed TV programs.

• In some instances, the show is actually being tested, but more commonly a
standard program is used so audience responses can be compared with
normative responses established by previous viewers.

• Sample sizes range from 250 to 600 participants, with 300 being most typical.
• The methods of theater testing operations vary, though all measure brand
preference changes.

For example, many of the services now use programs with the commercials
embedded for viewing in one’s home or office rather than in a theater.

• Others establish viewing rooms in malls and/or hotel conference rooms.

b) On-air Tests

• Some of the firms conducting theater tests also insert the commercials into actual
TV programs in certain test markets.

• Typically, the commercials are in finished form, although the testing of ads earlier
in the developmental process is becoming more common.

• This is referred to as an on-air test


• The most commonly employed metric used in an on-air test is recall—that is, the
number of persons able to recall the ad and/or its message.

c) Psychological Measures

• A less common but increasingly adopted method of pretesting finished


commercials involves a laboratory setting in which physiological responses are
measured.

• These measures indicate the receiver’s involuntary response (heartbeat, reflexes


etc….) to the ad, theoretically eliminating biases associated with the voluntary
measures reviewed to this point.
• Physiological measures used to test both print and broadcast ads include pupil
dilation, galvanic skin response, eye tracking, and brain waves.

i) Pupil Dilation

• Research in pupillometrics is designed to measure dilation and constriction of


the pupils of the eyes in response to stimuli.

• Pupil dilation suggests a stronger interest in (or preference for) an ad or implies


arousal or attention-getting capabilities.

• Other attempts to determine the affective (liking or disliking) responses created by


ads have met with less success.
ii) Galvanic Skin Response (GSR)

• Also known as Electro-Dermal Response (EDR), GSR measures the skin’s


resistance or conductance to a small amount of current passed between two
electrodes.

• Response to a stimulus activates sweat glands, which in turn increases the


conductance of the electrical current.

• Thus, GSR / EDR activity might reflect a reaction to advertising.

• While there is evidence that GSR / EDR may be useful to determine the
effectiveness of ads, difficulties associated with this testing method have resulted
in its infrequent use at this time.
iii) Eye Tracking

• As seen in Digital and Social Media Perspective a methodology that is more


commonly employed is eye tracking.

• which viewers are asked to view an ad while a sensor aims a beam of infrared
light at the eye.

• The beam follows the movement of the eye and shows the exact spot on which
the viewer is focusing, and for how long.

• The continuous reading of responses demonstrates which elements of the ad are


attracting attention, how long the viewer is focusing on them, and the sequence in
which they are being viewed.
IV) Brain Waves

• Electro-encephal-o-graphic (EEG) measures can be taken from the skull to


determine electrical frequencies in the brain.

These electrical impulses are used in two areas of research, alpha waves and
hemispheric lateralization:

• Alpha activity refers to the degree of brain activation.

• People are in an alpha state when they are inactive, resting, or sleeping.

• The theory is that a person in an alpha state is less likely to be processing


information (recall correlates negatively with alpha levels) and that attention and
processing require moving from this state.

• By measuring a subject’s alpha level while viewing a commercial, researchers can


assess the degree to which attention and processing are likely to occur.
v) Hemispheric Lateralization

• distinguishes between alpha activity in the left and right sides of the brain.

• It has been hypothesized that the right side of the brain processes visual stimuli
and the left processes verbal stimuli.

• The right hemisphere is thought to respond more to emotional stimuli, while the
left responds to logic.

• The right determines recognition, while the left is responsible for recall.

• If these hypotheses are correct, advertisers could design ads to increase learning
and memory by creating stimuli to appeal to each hemisphere.
• However, some researchers believe the brain does not function laterally and an
ad cannot be designed to appeal to one side or the other.

• Using technologies originally designed for the medical field such as positron
emission tomography (PET), functional magnetic resonance imaging (fMRI),
and electro-encephal-o-graphy (EEG), neuroscientists have teamed up with
marketers to examine physiological reactions to ads and brands through brain
scan imaging.

• By monitoring the brain activity directly, scientists are learning how consumers
make up their minds by measuring chemical activity and / or changes in the
magnetic fields of the brain as well as how they react to commercials.
Market Testing of Ads

• The fact that the ad and/or campaign has been implemented does not diminish
the need for testing.

• The pretests were conducted on smaller samples and may in some instances
have questionable merit, so the marketer must find out how the ad is doing in the
field.

• Below are methods for post-testing an ad.

• Many of the tests are similar to the pretests discussed in the previous section.
Post-Test of Print Ads

• A variety of print posttests are available, including inquiry tests, recognition tests, and
recall tests.

a) Inquiry Tests

• Used in both consumer and business-to-business market testing, inquiry tests are
designed to measure advertising effectiveness on the basis of inquiries generated
from ads appearing in various print media, often referred to as “bingo cards” such as
the one shown (next slide).

• The inquiry may take the form of the number of coupons returned, phone calls
generated, or direct inquiries through reader cards.

• If you called in a response to an ad in a local medium recently, perhaps you were


asked how you found out about the company or product or where you saw the ad.

• This is a very simple measure of the ad’s or medium’s effectiveness.


b) Split Run Test

• in which variations of the ad appear in different copies of the same newspaper or


magazine; and / or

• running the same ad in different media.

Each of these methods yields information on different aspects of the strategy

• The first measures the cumulative effects of the campaign;

• the second examines specific elements of the ad or variations on it.

• The final method measures the effectiveness of the medium rather than the ad
itself.
c) Recognition Tests
d) Recall Tests
• There are several tests to measure recall of print ads. Perhaps the best known of
these are the Ipsos-ASI Next*Correct test and the Gallup & Robinson Magazine
Impact Research Service (MIRS) described in Figure.
Post-Test of Broadcast Commercials

• The most common provide a combination of day after recall tests, persuasion
measures, and diagnostics.

• Test marketing and tracking studies, including single-source methods, are also
employed.

a) Day-After Recall Tests (DAR)

• The most popular method of post-testing employed in the broadcasting industry


for decades was the Burke Day-After Recall test.

• The major advantage of day-after recall tests is that they are field tests.

• The natural setting is supposed to provide a more realistic response profile.

• These tests are also popular because they provide norms that give advertisers a
standard for comparing how well their ads are performing.
b) Persuasive Measures

• Some of the services offer additional persuasion measures, including purchase,


intent, and frequency-of-purchase criteria.

c) Diagnostics

• These measures are designed to garner viewers’ evaluations of the ads, as well
as how clearly the creative idea is understood and how well the proposition is
communicated.

• Rational and emotional reactions to the ads are also examined.


d) Single-Source Tracking Studies

• Track the behaviors of consumers from the television set to the supermarket
checkout counter.

• Participants in a designated area who have cable TV and agree to participate in


the studies use optical scanning equipment that identifies their household and
gives the research company their demographics.

• The households are split into matched groups; one group receives an ad while the
other does not, or alternate ads are sent to each.

• Their purchases are recorded from the bar codes of the products bought.
Commercial exposures are then correlated with purchase behaviors.
e) Test Marketing

• Many companies conduct tests designed to measure their advertising effects in


specific test markets before releasing them nationally.

• The markets chosen are representative of the target market.

• Eg: Bangalore may be a test market for software products before it is launched
Nationally.

f) Tracking Print / Broadcasting Ads

• Tracking studies have been used to measure the effects of advertising on


awareness, recall, interest, and attitudes toward the ad and/or brand as well as
purchase intentions
• Personal interviews, phone surveys, mall intercepts, and even mail surveys have
been used.

• Sample sizes typically range from 250 to 500 cases per period (usually quarterly
or semi-annually).

Regulation of Advertising & Promotion

• Advertising Regulation refers to the laws and rules defining the ways in which
products can be advertised in a particular region.

Why do we need, regulation in Advertising?

• Advertising has been in the vortex of controversy of many ills that it brings to the
society.

• It is accused of encouraging materialism and manipulating our behavior generally


contributing to the downfall of our social system.
Advertising Regulatory Bodies

The purpose of these bodies are to make sure that Advertisers and Advertisements
are:

• Truthful and fair to consumers and competitors

• Within the bounds of generally accepted standards of public decency.

• Not used indiscriminately for the promotion of products, hazardous or harmful to


society or to individuals particularly minors, to a degree unacceptable to society at
large.
Advertising is regulated through:

Self Regulation, Federal Regulation and State Regulation.

1. Self Regulation

• Voluntary self regulation by the advertising industry to maintain consumer trust


and confidence and limit Govt. interference.

Self Regulation is done by

• Advertisers and Agencies

• Trade Associations

• The Better Business Bureau (BBB) – Non. Govt. Org. to enhance marketplace
trust, receive consumer complaints, rate performance & reliability of businesses.

• Media / Public
2. Federal Regulation of Advertising

The First Amendment

• Freedom of speech or expression

• Commercial speech protected

Federal Trade Commission Act, 1914

• Created the FTC to help enforce anti-trust laws

Wheeler-Lea Amendment, 1938

• Amended FTC Act to make unfair or deceptive practices unlawful.


Concept of Unfairness (Basis for determination)

• Causes substantial physical or economic injury to consumers

• Could not be reasonably avoided by consumers

• Must not outweigh countervailing benefits to consumers or competition

Definition of Deceptive Advertising by FTC

“The commission will find deception if there is a misrepresentation, omission, or


practice that is likely to mislead the consumer acting reasonably in the circumstances
to the consumer’s detriment.”

Three key elements of deception

• Likelihood of misleading consumer

• Perspective of reasonable consumer

• Materiality – information will influence consumer choice


Puffery

• Advertising or other sales presentations which praise the item to be sold with
subjective opinions, superlatives, or exaggerations, vaguely and generally, stating
no specific facts

Examples of puffery

• Bayer – “The wonder drug that works wonders”

• BMW – “The ultimate driving machine”

• Nestle – “The very best chocolate”

• Snapple – “Made from the best stuff on earth”


FTC Programs addressing Deceptive Advertising

a) Affirmative Disclosure

• Requires advertisers to include information in their ads so consumers will be aware


of all consequences, conditions, and limitations.

b) Advertising Substantiation

• Advertisers provide supporting documentation for their claims as proof the claims
are truthful

c) Cease and desist orders

• Stop the claim until resolved with FTC

d) Corrective advertising

• Run additional advertising designed to remedy the deception contained in previous


ads
Other Federal Agencies that regulate Adv. & Promotion

a) Federal Communications Commission (FCC)

• Jurisdiction over broadcast communications; radio, television, telephone, and


telegraph industries.

b) Food and Drug Administration (FDA)

• Authority over labeling, packaging, branding, ingredient listing, and advertising of


packaged food and drug products

c) U.S. Postal Service (U.P.S)

• Control over advertising that uses mail and ads that involve lotteries, obscenity, or
fraud

d) Bureau of Alcohol, Tobacco & Fire-Arms (BATF)

• Enforces laws, develops regulations, and responsible for tax collection for the
liquor industry
The Lanham Act

• prohibits any false description or representation including words or other symbols


tending falsely to describe or represent the same.

Companies / brands that have been involved in Lanham Act cases include

• Alpo and Ralston Purina dog food

• Gillette and Wilkinson razor blades

• Prego and Ragu spaghetti sauce

• Duracell and Energizer batteries


3. State Regulation of Advertising

• In addition to federal rules and regulations, advertisers must concern themselves


with state and local laws and regulations

The National Association of Attorneys General (NAAG) has been involved with:

• Airfare advertising

• Car rental price advertising

• Nutrition and health claims advertising

Regulation of other sales promotion

• Contests and sweepstakes – Cannot be classified as a lottery – Cannot be


required to give up something of value to participate (consideration)
Premiums

• Cannot misrepresent their value

• Must take care with special audiences (kids)

Trade Allowances

• Must be available on proportionally equal terms

FTC & U.S Postal Services police Direct Response Adv. Closely

Example: In Tele-Marketing

• Telephone Consumer Protection Act, 1991

• Pay-per-call Rule

• Development of “Do Not Call” Registry by FTC


Regulation of Marketing on Internet

Restrictions have been proposed with regard to privacy including:

• Banning unsolicited email

• Disclosing marketers identity

• Giving consumers the right to bar marketers from selling or sharing personal
information

Children’s Online Privacy and Protection Act (COPPA)

• places restrictions on collecting information from children over the internet


Advertising Regulatory Bodies Around the World

Some of the well known regulatory bodies are

• Advertising Standards Councils of India (ASCI)

• Federal Trade Commission for United States (FTC) (already explained prev.)

• Advertising Standards Authority (ASA) for United Kingdom (not explained)

• Advertising Standards Authority (ASA) for South Africa (not explained)

Advertising Standards Councils of India (ASCI)

• Was set-up in 1985.

• The Advertising Agencies Association of India, the Media Owners’s Association


and the Indian Newspapers Society, came together and took the initiative to form
the ASCI.

• ASCI was voluntary and self regulatory, registered as a non-profit company.


Composition of ASCI

The Council is managed by a Board of Governors consisting of 16 elected


members, constituted as follows:-

• 4 from Advertisers

• 4 from Advertising Agencies

• 4 from Media and

• 4 from Allied Professions like outdoor contractors, audio- visual producers /


distributors, consumer researchers, printers, etc.

• The Complaints the ASCI receives are handled by Consumer Complaints


Council (CCC)
Consumer Complaints Council (CCC)

Birth and composition of CCC

• The ASCI’s Board of Governors set up a Consumer Complaints Council (CCC) to


examine complaints received by the ASCI.

The composition of the CCC is as follows:

• 9 from within the advertising industry representing advertisers, advertising


agencies, media owners and allied professions.

• 12 from society at large, consisting of eminent consumer activists, educationists,


prominent journalists, lawyers, engineers, doctors, etc…
Receiving complaints

• For public awareness sake, from time-to-time the Council puts out advertisements
in newspapers - This invites them to complain to the Council.

• Each year the Council receives approximately 150 complaints.- 50 % Upheld -


80% Voluntarily modified/withdrawn.

Complaining Procedures

Anyone can complain!

There are two ways to complain:

Online and Printed form

The form can be downloaded from: www.ascionline.org


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