Evaluation of the visual effectiveness of advertising. Methods and methods for evaluating the effectiveness of advertising. What is the effectiveness of advertising

13.11.2019

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Methods for assessing the economic efficiency of advertising

Definition 2

The main methods for assessing the economic effectiveness of advertising are:

comparison of turnover before, during and after the launch of advertising;
profitability assessment;
the method of target alternatives is an assessment of the established economic plan and the result obtained to determine the usefulness and necessity of investing in advertising;
evaluation of the effectiveness of promotion in terms of return on investment in the project (ROI - return of investment);
comparison of turnover and investments in advertising with similar indicators of competitors.

$ROI$ calculation is the most visual economic method. This is the ratio of profit received to the cost of promotion. For everybody advertising medium it is defined separately.

If this indicator is below 100%, then the developed advertising campaign is considered unprofitable. The ideal value is determined from 120% and above. Progressive organizations offer a ROI of 300% or more on advertising. In addition to this indicator, profitability is also calculated. This is the ratio between the result obtained from advertising and the investment in its implementation for a certain period

$R = P / U \cdot 100%$ where:

An important parameter in the analysis of the economic efficiency of advertising is the volume of sales of goods or services. It should be evaluated before, during and after the advertising campaign. Thanks to this indicator, it is determined what contribution to the development of the company's turnover was made by promotional events.

$T_d = (T_s \cdot P \cdot D) / $100

where $T_d$ - additional turnover under the influence of promotional activities; $Т_с$ - average daily turnover before advertising; $P$ - increase in the average daily turnover for the period during and after advertising,%; $D$ - the number of days of accounting for the turnover for the period during and after advertising.

Remark 2

Evaluation of the communicative effectiveness of advertising

Definition 3

To determine the communicative effectiveness of an advertising campaign, various methods. The main methods are: pre-testing and post-testing.

Pre-testing is an assessment of the effectiveness of individual elements of an advertising message before a new advertising campaign is launched. This technique is carried out in order to avoid errors in the development of advertising. Such parameters as the form and content of the appeal are analyzed. In addition, it is important to assess the correctness of the choice of target consumers. The means and channels for transmitting advertising messages are also checked. Pretest methods include focus groups, pair comparison method, etc.

Post-testing is an analysis of the effectiveness of an advertising campaign after it has been carried out. The main methods of post-testing are: tests for memorization, persuasiveness and counting direct responses.

Remark 3

Advertising effectiveness research is one of the important and promising areas of modern marketing research. The main objective of advertising effectiveness research is to try to anticipate its impact on commercial activity firms. The need to conduct advertising research is also due primarily to the fact that decisions in the field of promotional activities taken under conditions of certain risk and uncertainty.

When studying the effectiveness of advertising, the communicative (psychological) and economic effectiveness of an advertising campaign are distinguished. The psychological impact of advertising should ideally lead to potential consumers to purchase this product. For this, advertising is created, which is distinguished by brightness, originality, euphony, which is easy to remember and does not cause irritation. How strong and positive is the psychological impact of advertising on human consciousness, so it is cost-effective. That's why economic efficiency usually depends on the communicative, in other words, the level of sales of goods depends on the degree of psychological impact of advertising on the consumer.

Controlling the results of an advertising campaign is an integral part of marketing control. The control process provides for a periodic comprehensive or in certain areas objective verification of the company's advertising activities, that is, a comparison of planned and actually obtained indicators. The main task of control is to verify the correctness and effectiveness of the very concept of marketing and the strategy of product distribution, including advertising activities.

> determining the difference between the planned and actual costs of an advertising campaign?;

1. Carrying out an audit, i.e. a situational analysis, which should give "photos" of the company's activities, including advertising. As a result, it becomes possible to have a point for calculations or a base for comparison. At this stage, the real values of the indicators at the time of the analysis are clarified.

2. Establishment of planned values and standards (goals and norms). Be sure to be carried out rationalization of goals, that is, the definition of what kind of promotional action, for which product, in which target group and when to do it. Norms should have a quantitative value. For example, increase sales by 10%, increase awareness of the target audience about the company's product from 40% to 55%.

3. Determination of actually achieved results for a certain period (day, week, month, quarter, year).

4. Comparison of actual values with planned and standard ones.

5. Analysis of the results of the comparison, which makes it possible to make changes to the planned values and standards or during the advertising campaign.

In order to control the results of the company's activities are:

> control of the impact on the sale of goods of those promotional events that were planned during the development of the company's advertising campaign;

> control of communicative indicators of consumer attitudes towards the company, its products, advertising messages and the media that are used during the advertising campaign;

> control of expenses from the budget for the advertising campaign;

> control of presentations, fairs, exhibitions, etc. and expenditure of funds for these events.

Department store owner John Wanamaker famously said: "I know that half of the money I spend on advertising is wasted, but I never know for sure which of the two halves is wasted." Therefore, it is necessary to conduct a constant analysis of the effectiveness of promotional activities.

Analysis of the effectiveness of promotional activities can be carried out in several ways: determining the feasibility of advertising as a whole, calculating the effectiveness of its individual means, determining the conditions for the optimal impact of advertising on potential buyers.

The effectiveness of advertising for commercial companies is determined through research. They include a survey of the most typical representatives of the advertising audience. In particular, it is worth finding out what exactly they know about this company; what they see as advantages and benefits from buying goods or using services, how they learned about the existence of the company; how they understand advertising; what they like about it and what they don't; What should be changed or added to it?

Calculate the cost-effectiveness of individual promotional activities or campaigns as a whole can only be approximated. It is impossible, for example, to draw a line between the effectiveness of advertising and the results of consumer contacts with other people, the influence of a seasonal sale, or random circumstances such as price changes or the disappearance of a competitor. Relative economic evaluation of the effectiveness of advertising is to compare:

1) sales volumes or income received before and after the advertising campaign;

2) the ratio of income received to advertising allocations.

In practice, the economic efficiency of advertising is most often determined by determining its impact on the change in turnover. To identify the extent to which advertising has influenced the growth of turnover, analyze operational and accounting data. At the same time, it should be borne in mind that in addition to advertising, the sale of a product may be affected by its quality and consumer properties, price, appearance, the location of the trading enterprise, the level of culture of customer service, the availability of similar products for sale.

Additional turnover under the influence of advertising is determined by the formula:

where Td - additional turnover under the influence of advertising, UAH; Тс - average daily turnover before the advertising period, UAH; P - growth

where E - economical effect advertising, UAH; Тd - additional turnover under the influence of advertising, UAH; Нт - trade markup for goods, % to the selling price; U - advertising costs, UAH; C / d - additional costs caused by the increase in turnover, UAH.

In this case, the effect obtained from the promotional event is compared with the costs of its implementation. The results of such a comparison may be as follows:

However, the data obtained to determine the economic feasibility of spending on various promotional activities is not enough. More precisely, the advisability of spending on advertising characterizes its profitability.

The use of the proposed indicators has certain limitations: firstly, it is impossible to isolate the impact of promotional events on the increase in turnover; secondly, it is wrong to reduce the tasks of advertising only to increasing the turnover.

Evaluate the effectiveness of advertising placement activities, as well as make comparative analysis activities of competitors allow the following indicators.

The base indicator that is used to calculate the others is the rating. The rating reflects the popularity of a particular TV channel over a certain period of time. Considering the specifics of conducting research on the TV audience in Ukraine, this is the ratio of the number of viewers (channel or program) to the entire population of the regional centers of Ukraine:

When calculating the indicators characterizing an advertising campaign, the following are calculated:

GRP (Gross Rating Points - the total rating value) - characterizes the intensity of an advertising campaign that took place over a certain period of time. This indicator is a universal equivalent, which is used to compare advertising campaigns that took place at different times and that were carried out by different advertisers. Formally, GRP is the sum of ratings for the most common target audience (the population of regional centers) for all the outputs of a certain advertisement during a specified period of time:

where n is the number of exits.

Note that a certain group of people can be included in several ratings at the same time, so the sum may exceed 100%. AT advertising practice a high-profile TV ad campaign reaches over 100 GRP. An advertising campaign is considered powerful if the GRP value exceeds 1000 GRP.

TRP (Target Rating Points - the rating value for the target audience) like GRP, but characterizes the intensity of the impact of a particular advertising campaign on the specified target audience. The TRP is the sum of the ratings for a given target audience across all exposures of a given ad over a given period of time.

TRP is most often compared to GRP. The higher the TRP/GRP ratio, the more effective advertising will or was on the selected TV channels. A higher value of TRP in relation to GRP indicates a greater popularity of the media for this target audience compared to the general value.

Most advertisers strive to convey their advertising message to a specific target audience, which is a potential consumer of the advertised product. Therefore, in order to analyze the effectiveness of selected TV channels in terms of reaching a certain target group, it is important to compare TRP with GRP.

In addition to this comparison from the GRP TRP, it is important to determine the price of advertising. When buying advertising time at the cost of 1 GRP, with skillful planning, you can achieve much best performance for the target audience than for the entire population, which means that reaching 1% of the target audience will cost less.

The number of exits is also one of the characteristics of the intensity of the advertising campaign. The number of outputs - the number of submissions of a certain advertising message during a specified period of time. This indicator does not take into account the characteristics of spending or popularity, but is the base for other calculations.

Reach measures the number of people who viewed a particular ad during a specified period. In other words, reach is the ratio of the number of people who have watched a certain ad or ad campaign during a certain time and who belong to a certain target audience to the total size of the target audience.

Reach makes it possible to estimate how many people received the information that is contained in the advertisement. This indicator cannot exceed 100%.

CPP (Cost Per Point - the cost of 1 rating point) is an indicator that characterizes the effectiveness of advertising on television in terms of cost - this is the cost of reaching one percent of the target audience. In other words, CPP reflects the amount of money that should be spent on advertising on television in order to familiarize one percent of the target audience with an advertising message.

On television, the most commonly used indicator is 60 "(or 30") CPP, since the cost of advertising is affected by the duration of the advertising message.

CPP is one of the most important criteria for choosing the media in which advertising is planned to be placed.

CPT (Cost Per Thousand - the cost of a thousand contacts) is a measure similar to CPP. Like CPP, CPT characterizes the effectiveness of advertising on a particular TV channel, however, the unit of comparison is not the percentage, but the population in thousands of people. Therefore, CPT is calculated as the cost of one output with certain temporal, spatial and other characteristics to average population population in thousands:

The use of CPT is advisable when the researcher is not interested in the percentage of this target audience, but in the number of people who watch the advertisement. This need arises when comparing CPT of different target audiences.

It should not be forgotten that advertising is only one of the marketing tools that has an impact on the sale of goods. That is why when evaluating the effectiveness of advertising, a set of conditions and factors that contribute to or hinder the achievement of marketing goals are taken into account.

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What tasks do you need to cope with when advertising the subject of marketing?

regular readers have already paid attention to the fact that I constantly pay attention to the fact that it is not necessary to count something in marketing - accountants and economists do! In marketing, it is imperative to satisfy the market!
But in management, understanding how effective you are in your efforts is very important.

commercial efficiency- first, solve the problem sales growth
communicative effectiveness– secondly, digital communication indicators(the quality of communication of the subject of marketing with the market).
economic efficiency Thirdly, you need to carry it out cost-effective(economic indicators)

Commercial efficiency

Calculation of turnover under the influence of advertising (quantification of sales)

Making sales efforts redundant and securing a sale is the main challenge. Therefore, we consider how the turnover has changed under the influence of advertising, in relation to the turnover before advertising:

T d \u003d (T s * D * P) / 100

where:
T d - additional turnover caused by promotional activities, rub.;
T with - the usual average daily turnover (before the start of the advertising period), rub,;
D - the number of days of accounting for the turnover (in the period of active advertising);
P - relative growth average daily turnover for the advertising period compared to pre-advertising
nmm, %.

Please note that your turnover may change and not at all because of the quality of advertising - the seasonal demand for goods has begun, there have been problems with logistics. All this and more can affect the growth of trade. For the calculation, you will need to either neglect this, or take it into account with other formulas and compensation factors.

The number of checks with the advertised product (qualitative indicator of advertising)

The indicator of the increase in the number of checks (accounts) with the product used in advertising is calculated in relation to the indicator before advertising.

The amount of the advertised product in the check (qualitative indicator of advertising)

If we assume that advertising stimulates quantitative consumption, then fixing the number of goods in the basket (account) during the advertising period is also important. Just pay attention, advertising has a cumulative effect of attention to the advertised product and the effect of attenuation of attention after the cessation of advertising. How these effects affect sales can also be analyzed.

Product in category

Advertised product purchases as a percentage of total purchases in the product category. Why is this indicator important? Sales of a product can grow under the influence of advertising even if category sales fall. This indicator allows you to evaluate the quality of advertising with a general drop in sales during a crisis, at the end of the season or out of season sales.

Communicative performance indicators of advertising

The communicative indicators of the advertising campaign are expressed as the results of observation and analysis of the behavior of real and potential consumers. Information obtained from such observations and analysis, as well as conclusions, cannot be reduced to any standard form. Therefore, each time the report on the qualitative results of advertising effectiveness is unique in its own way.

Reach

Reach - the percentage of the target audience who viewed the advertisement during a certain period of time (the number of contacts with the target audience).

where:
K - Number of contacts
P - The size of the audience of the advertising channel (advertising carrier) for the period of advertising

Advertising recall

Advertising recall. In response to a question about advertising a product, the respondent begins to mention specific names. For example, to the question “What television advertisements of mobile operators have you seen on television?” the respondent can answer unambiguously by naming trademark, and may begin to retell the content of the video. The percentage of respondents who call it out of the total number of respondents determines the quality of recall of advertising.

brand awareness

Criteria such as recall or brand recognition are evaluated (depending on the goals of the ongoing advertising campaign). In the presence of both goals, the recall of the brand is first assessed (“Which brands mobile phones come to your mind first?”) and then recognition (“Which of these brands have you seen before?”). The first measurement is carried out without prompts, the second - with prompts in the form of showing respondents images of brands (or a list of their names).

Consumer actions

Actions are expressed in a behavioral response to advertising (purchase, preparation for purchase, search additional information, ignoring, etc.). When trying to find out about the “action” by the survey method, usually those who saw the advertisement are asked the following question: “Which salons mobile communications have you visited recently?

CTR is an indicator of the communicative effectiveness of advertising, measured as the ratio of the number of certain actions, as a response to advertisement(ad clicks, store visits, flyers handed out) to the number of impressions of that ad.

CTB is an indicator of the effectiveness of online advertising, measured as the ratio of the number of visitors to a commercial web resource attracted by advertising and making a purchase to the total number of visitors attracted by advertising. The indicator reflects the conversion of visitors and in some cases is called the conversion rate. as in the previous case, the "action" is the purchase itself (not its value).