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Belch: Advertising and
Promotion, Sixth Edition
VI. Monitoring, Evaluation,
and Control
19. Measuring the
Effectiveness of the
Promotional Program
representative of the target market. For example, a company may test its ads in Portland,
Oregon; San Antonio, Texas; or Buffalo, New York, if the demographic and socioeconomic
profiles of these cities match the product’s market. A variety of factors may be
tested, including reactions to the ads (for example, alternative copy points), the effects
of various budget sizes, or special offers. The ads run in finished form in the media
where they might normally appear, and effectiveness is measured after the ads run.
The advantage of test marketing of ads is realism. Regular viewing environments
are used and the testing effects are minimized. A high degree of control can be attained
if the test is designed successfully. For example, an extensive test market study was
designed and conducted by Seagram and Time, Inc., over three years to measure the
effects of advertising frequency on consumers’ buying habits. This study demonstrated
just how much could be learned from research conducted in a field setting but
with some experimental controls. It also showed that proper research can provide
strong insights into the impact of ad campaigns. (Many advertising researchers consider
this study one of the most conclusive ever conducted in the attempt to demonstrate
the effects of advertising on sales.)
The Seagram study also reveals some of the disadvantages associated with test market
measures, not the least of which are cost and time. Few firms have the luxury to
spend three years and hundreds of thousands of dollars on such a test. In addition, there
is always the fear that competitors may discover and intervene in the research process.
A number of companies, including Procter & Gamble and Toyota, have test marketed
interactive commercials. Reckitt—the world’s largest manufacturer of household
cleaning products—and Whirlpool have joined efforts to test iTV ads. Customers
were offered three different enticements to interact with the campaign: (1) register to
win a Whirlpool dishwasher, (2) register for free samples of Finish Dishwater Freshener,
or (3) order money-off coupons for Finish Dishwater Tablets. After eight months
of testing, Reckitt reported that the target goal of 35,000 responses was exceeded. 29
Sears and Ford are both testing the impact of ads placed on Gemstar—TV Guide’s
interactive program guide—while Chrysler is experimenting with online gaming to
generate leads and stimulate buzz. 30
Test marketing can provide substantial insight into the effectiveness of advertising
if care is taken to minimize the negative aspects of such tests.
Single-Source Tracking Studies Since the 1980s the focus of many research
efforts has been on single-source tracking methods. Single-source tracking methods
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 are given a card (similar to a credit card) 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.
Earlier we mentioned the use of single-source ad research in pretesting commercials.
One study demonstrated that the single-source method can also be used effectively to
posttest ads, allowing for a variety of dependent measures and tracking the effects of
increased ad budgets and different versions of ad copy—and even ad effects on sales. 31
A 10-year study conducted by Information Resources’ BehaviorScan service
demonstrated long-term effects of advertising on sales. The study examined copy,
media schedules, ad budgets, and the impact of trade promotions on sales in 10 markets
throughout the United States and concluded that advertising can produce sales
growth as long as two years after a campaign ends. 32 (The study also concluded that
results of copy recall and persuasion tests were unlikely to predict sales reliably.) A
number of single-source methods have been used, among them BehaviorScan (Information
Resources) and MarketSource. The A. C. Nielsen company’s Scantrack is
another commonly employed single-source tracking system.
Many advertisers believe these single-source measures will change the way research
is conducted due to the advantages of control and the ability to measure directly the ads’
effects on sales. A number of major corporations and ad agencies are now employing this
method, including Campbell Soup, Colgate-Palmolive, Nestlé, General Foods, P&G,
© The McGraw−Hill
Companies, 2003
645
Chapter Nineteen Measuring the Effectiveness of the Promotional Program