Effectiveness of Advertising

Paper Summary:

In this article, the writer discusses that with advertising costs accounting for a large portion of a marketer's budget, justifying these costs and measuring their impact is becoming increasingly important. The writer maintains that it is crucial not only to identify a particular ad that is not working but also to determine methods for improving and optimizing existing advertisements. The writer further points out that since it is often difficult to tie a sale to a particular advertisement, measuring the success of a campaign relies on other research methods to uncover the communication effects, including brand recognition and consumers' intention to purchase a product. Additionally, the writer notes that in order to effectively measure an advertisement's effectiveness, a marketer should employ three types of research: developmental, concurrent, post-testing.

From the Paper:

"Especially in a cluttered ad environment, it is crucial for an advertisement to be eye-catching and attractive to grab a consumer's attention. Concept testing is an effective method for uncovering advertisements with the most potential to stand out among competitors' communications."
"Unlike message strategy research and concept testing, which analyze various concepts of an advertisement to expose the preferred version, pre-testing assesses the strength of the finished message and predicts how well it will perform. Popular methodologies of pre-testing include portfolio tests, jury tests and theater tests. Portfolio tests are used to test variations in advertisement copy by packaging them together and asking target consumers for insight to their preferences."

Sample of Sources Used:

• Aaker, D.A. and Joachimsthaler, E. (1999). Building brands without mass media. Boston: Harvard Business School Publishing.
• Batra, Rajeeve (1995). When does advertising have an impact? A study of tracking data. Journal of Advertising Research, Vol. 35, No. 5, 32-33.
• Book, Albert C. (1965). Recall of Institutional TV Commercials. Journal of Advertising Research, Vol. 5, No. 2, 38-40.
• Clancy, Kevin J. & Krieg, Peter C. (2000). Counterintuitive Marketing. New York: The Free Press.
• Lenskold, James D. (2004) Marketing ROI: The Path to Campaign, Customer, and Corporate Profitability. New York: McGraw-Hill.

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