final_measuring effectiveness of advertising 03
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Measuring Effectiveness of AdvertisingMeasuring Effectiveness of Advertising
PriyankaPriyanka SardeySardey 100100FalguniFalguni SampatSampat 9999
SmithSmith SavlaSavla 102102
PramodPramod SavekarSavekar 101101
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What is Advertising?What is Advertising?
Any paid form of non personal communication that istransmitted to consumer through mass media as
Television
Radio
Newspaper
Magazine
Direct mail
Outdoor displays.
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Types of AdvertisingTypes of Advertising
- Brand Advertising
- Interactive Advertising
- Retail Advertising
- Industrial Advertising- Direct Market Advertising
- Reminder Advertising
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Brand AdvertisingBrand Advertising
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Interactive AdvertisingInteractive Advertising
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RetailRetail AdvertisingAdvertising
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Industrial AdvertisingIndustrial Advertising
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Direct Market AdvertisingDirect Market Advertising
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Reminder Advertising:Reminder Advertising:
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5 Ms of Advertising5 Ms of Advertising
MONEY
MESSAGE
MEDIA
MEASUREMENT
MISSION
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Message DecisionsMessage Decisions
Message
Generation
Message Evaluation
&
Selection
Message Execution
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Deciding on the Media & MeasuringDeciding on the Media & Measuring
EffectivenessEffectiveness
Media selection (finding the most cost-effective media todeliver desired number & type of exposures to the target
audience)
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Deciding on reach, frequency andDeciding on reach, frequency and
impactimpact
REACH FREQUENCY IMPACT
MEDIA
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Reach (number of different persons or householdsexposed to a particular media schedule at least onceduring a specified time period) R
Frequency (number of times within the specified timeperiod that an average person or household isexposed to the message) F
Impact (Qualitative value of an exposure through agiven medium) I
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- The relation between reach, frequency and impact iscaptured in two concepts
Total number of exposures (E)
x E= R*F, this measure is referred as Gross RatingPoint GRP
Weighted number of exposures (WE)
x WE= R*F*I
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Choosing among Major MediaTypesChoosing among Major MediaTypes
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MediaTypesMediaTypes
Newspapers
Magazines
Radio
Television
Outdoor
Internet
Alternative Media
Major TypesMajor Types
ofofAdvertisingAdvertising
MediaMedia
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Measuring Effectiveness ofTelevisionMeasuring Effectiveness ofTelevision
TAM (Television Audience Measurement)
y Universe: The Total/Actual number of people in adefined target audience
y Reach: Number of individuals from the universe whoare exposed to the medium or vehicle
- Reach is normally expressed in % terms
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Calculation ofReachCalculation ofReach
Example:
Universe: 10 individuals.
For a single episode of Chhoti Maa, if out of the above
10 people 6 saw atleast 1 minute of the programme
then,
Reach:6 out of 10
Therefore, reach = 60%
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Variations of the Reach ConceptVariations of the Reach Concept
y Gross Reach
y Cumulative Reach
y Net Reach
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Gross ReachGross Reach
yGross Reach = Summation of all audiences who have been
exposed to the vehicle
Week 1 : 1000
Week 2 : 2000
Week 3 : 1500
Week 4 : 1200
Hence, Gross Reach = ?
1000+2000+1500+1200=5700
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Net ReachNet Reach
Week 1 : 1000 -- 1000
Week 2 : 2000 (300) 2700
Week 3 : 1500 (900) 3300
Week 4 : 1200 (1000) 3500
Net Reach build upDuplicationGross Reach
Cumulative Reach over 4 weeks
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Gross Rating Points (GRPs)Gross Rating Points (GRPs)
- The sum of all ratings points per spots placed in a given
schedule over a specified period of time.
- I
t is a measure the size of the audience reached by thespecific media vehicle
- GRP levels are generally measured and reported on a 4
week basis
Formula:
GRP = Reach * Frequency
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Households UsingTelevision (HUT)
% of households in a given area where T.V is being
watched during a specified time period.
People Meter
Electronics measuring device
that incorporates the technology
and records what is beingwatched and also by whom
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Channel
AvgMins
{Universe}
AvgMins
{Viewer}
Reach
OOOs
Star Plus 1056 1135 10314
Sony 739 807 10157
Zee TV 358 401 9904
Total ( Any Channel) 6910 7112 10773
Universe :11089000
Total Time:Avg. minutes ( universe) x Universe
Total Time / Reach = Average Minutes viewer.
Therefore, (1056 x 11089000)/ 10314000= 1135
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Measuring Effectiveness ofRadioMeasuring Effectiveness ofRadio
Arbitron
3 Basic estimates :-
- Person Estimates
- Rating- Share
Average Quarter-hour share (AQH SHR)
Average QuarterHour rating(AQHRTG)
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ArbitronArbitron Personal People MeterPersonal People Meter
Arbitron Personal
People Meter (PPM)PPM Base station
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Measuring Online Advertising EffectivenessMeasuring Online Advertising Effectiveness
Term Definition
Hits Number of elements requested from apage
Page viewsNumber of pages sent to the requestingsite
Visits Occasions user x interacted with sitey after z time has elapsed
Unique visitors Number of different people visiting a site
Web AnalyticSoftware
Allows for tracking of web site usage
New MethodsTracking behavior of a sample ofInternet families and projecting
behavior to larger populations
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Term Definition
Impressions Number of times a page is viewed
Pay-per-click Payment rate for impressions
Click throughs Clicking on ad to web site
Click fraudFalse generation of site clicks to generatepayment per click
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Weekly Media ActivitiesWeekly Media Activities
0%
10%
20%
30%
40%50%
60%
70%
80%
90%
100%
listen
edto
Radio
Watche
dTV
News
paper
Maga
zine
Internet/E
mail
Watche
daMovie
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Evaluating Advertising EffectivenessEvaluating Advertising Effectiveness
Two aspects are measured :
- Communication Effect Research
- Sales Effect Research
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Communication Effect ResearchCommunication Effect Research
- Also called Copy testing seeks to determine
whether the ad is communicating effectively.
- This may be done before ad is put into
media and after it is printed or broadcast.
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Copy Testing
Pre - Testing
Consumer JuryTest
Portfolio TestLaboratory Test
Post - testing
Recall Test
Inquiry Test
RecognitionTest
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Sales Effect ResearchSales Effect Research
- Measure the impact of influence the advertisement iscapable to create.
- Studying share of advertising expenditure produce shareof voice that earns share of consumers minds andhearts and ultimately share of market
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Share of
expenditure
Share of
voice
Share of
Mind &heart
Share
OfMarket
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ExampleExample
11 22 33 44
3/23/2
ProductsProducts Ad exp.Ad exp. Share ofShare of
VoiceVoice
Share ofShare of
marketmarket
AdAd
effect.effect.
AA 20,oo,ooo 57% 40% 70%
BB 10,oo,ooo 29% 29% 100%
CC 5,oo,ooo 14% 31% 220%
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Thank you