Advertising is a term derived from the Latin word "reklamare" - "to shout or announce loudly" (in Ancient Greece and Rome, announcements were loudly shouted or read out in the squares and in other places where people congregate).
Advertising is interpreted in accordance with federal law about advertising as disseminated in any form, by any means, information about an individual or legal entity, goods, ideas and undertakings (advertising information), which is intended for an indefinite circle of persons and is designed to form or maintain interest in these individuals, legal entity, products, ideas and endeavors and promote the realization of goods, ideas and endeavors.
Buying on the market is always a choice, and in order for buyers to make it in favor of your business, they should tell them about the merits of your product, convince them of the benefits of buying it, and remind them from time to time. Therefore, advertising should be planned as a continuous process. Advertising, as a rule, accompanies the whole life of a product on the market, and often precedes its appearance.
In recent years, corporate advertising (branded advertising) has been used, which is currently understood as the entire range of advertising that is not related to a specific product, but is designed to improve the company's image.
Branded or corporate advertising can be used for many purposes: to inform the public about the firm and its activities, to determine the firm's competitive position in the market, to attract qualified people, to reflect staff changes, to increase the value of shares, to strengthen employee morale, and to avoid problems in relations with agents, dealers and customers. Previously, such advertising was designed only to create a good name for the company.
Modern advertising is an integral part of marketing. However, it is difficult to expect success if the advertising is good, but the product does not stand up to competition, has an unacceptable price, the distribution system is weak, the staff of sellers or service personnel is small, people do not meet the requirements of the business in terms of qualities, qualifications, and the management of the company is not interested in customer satisfaction with the product and their attitude towards the firm after the purchase.
There are two broad areas of advertising research:
Advertising media are studied in terms of their ability to deliver advertising to the target group. The customers of such studies are publishing houses, radio and television companies. They are interested in, for example, the number of readers or viewers, their demographic and social characteristics, differences between their consumers and consumers of other media. mass media etc. This information is then presented to businesses that advertise.
Preliminary forecast of success;
A success control designed to investigate whether an advertisement has achieved its goals and what conclusions can be drawn from the advertising campaign.
Since the creation and distribution of advertising is an expensive undertaking, it is necessary to have information about the chances of success even before publication. The starting point is the created advertising medium - an advertisement, a billboard, a poster, etc. Only the relative presence of benefits can be measured, as there are no normative data on the effects of advertising. The disadvantages of this method are that the effect of multiple exposure is not determined and the environment that will surround the advertisement in reality is not taken into account.
Subjective and objective methods of preliminary prediction of success are distinguished.
Subjective methods are divided into:
Survey of experts - the method is not representative of the target group. The consumer may, for example, not understand an advertisement at all that has been approved by experts;
Consumer Survey - there is a risk that new ideas that could attract increased attention will be rejected due to adherence to familiar schemes.
Objective methods can be subdivided (according to the directions of information processing when consumers perceive advertising) into research:
1) the process of perception of information;
2) activation of information;
3) the ability of information to inspire confidence;
4) the degree of understanding of texts.
Advertising will achieve only if the features of the human psyche are taken into account when creating it. The AIDMA model, which implies the following chain “Attention-Interest-Desire-Motive-Action”, is considered to be a generally accepted model of advertising perception.
First of all, advertising must attract the attention of a potential consumer, which can be both arbitrary and involuntary. Further, advertising should arouse the interest of the consumer, influencing his intellect or emotions. If advertising with its emotional side manages to attract attention, then it should interest him with its content, cause one or another reaction, stimulate a certain emotional state.
The impact of advertising depends on the evaluation of the advertised product contained in it, and on the arguments in its favor. If the consumer does not find such an assessment and argumentation, then the influence of advertising is significantly weakened.
Arguments can be divided into objective, logically revealing the essence of the advertised product, its distinctive features, and those that cause certain emotions and associations.
1) Information that the consumer wants to receive and, moreover, even looks for it. It is easy to understand and quickly remembered.
2) Random information for a person at the moment. It is either not remembered at all, or with great difficulty.
3) Information that is unnecessary for a person in general. The consumer does not pay attention to such advertising, and in some cases it can annoy him, for example, when it interrupts the show of a program of interest to him, etc.
Therefore, as soon as a person realizes that the advertised product or service is exactly what he needs, he makes a decision, followed by action.
Objective Methods for Predicting Advertising Success
The very degree of readability of the text, as analysts note, depends on at least three points:
firstly, from the legibility and clarity of the printed text, which must meet the sum of the requirements for the external design of advertising (fonts, punctuation marks, illustrations, etc.);
secondly, on the degree of interest that arises in the reader in the process of reading;
thirdly, on the degree of understanding and persuasiveness of the text.
Whatever the advertising text, long or short, it should most fully reflect all the advantages of the product. It should be taken into account that consumers are unlikely to read a series of ads for the same product in the hope of reading something in them that is not yet indicated in others. Therefore, one should always proceed from the fact that an advertisement competes simultaneously with other similar ones.
1. The ability to attract attention. It is very important how much the attention of readers is attracted by the headline, TV viewers by the video sequence, whether the advertisement affects exactly those categories. potential consumers for which it is intended.
2. The strength of the impact on the emotions of advertising consumers: what feelings are born in them under the influence of advertising, how successful is the advertising argument and whether it is presented correctly.
3. The strength of the impact: will the viewer run, for example, after watching the advertisement to buy this product or remain seated in the chair, despite the fact that he liked the advertisement and there is a need to purchase this product.
The advertising development process usually includes two stages. First, a decision is made on the structure of the advertising message, a central thesis (advertising argument) is developed, informing about the most important properties and distinctive features goods, and the form of its presentation. Then they start developing the advertising material directly: the text and style are developed, suitable words, color scheme and design solution are selected. It should also be borne in mind that, as a rule, advertising is more effective when demand for a product increases than when it falls.
The above functions are mainly performed by advertising agencies. They work with the firm to develop its advertising plan, including topic selection, distribution media, campaign timing, preparation of the promotional product itself, and other aspects.
The Compagon method is often used to analyze magazine advertising. It consists in the fact that a group of people is invited as if for a survey. They are asked to wait in a room where there are magazines with embedded advertisements to be analyzed. Hidden from people, their behavior is filmed and then analyzed with their consent. So you can find out how many readers and for how long viewed the ad, how they behaved in this case. In conclusion, a survey is conducted to test the degree of memorization of advertising.
Another method of analyzing perception is to follow a person's gaze with the help of special glasses when viewing an advertisement. At the same time, the paths of sight, points and time of fixation are marked. Data on the fixed advertising elements and their sequence are very important, since information is perceived only during fixation, and its memorization depends on the number of fixation points.
Perception can also be measured with a tachistoscope. If advertising elements, such as the name of a product, are recognizable after a short, instant display, then this is an indicator of their visibility. You can also identify spontaneous impressions, the first phase of the perception process, during which a positive and negative attitude towards the subject of advertising is formed.
The study of activation is to determine the strength of emotional impact. To do this, changes in skin resistance are measured under the influence of bioelectric processes caused by various stimuli, which sufficiently reflect the magnitude of the emotional impact, but the type and direction of the emotion are inexplicable using this method. In addition, the results of such tests are strongly influenced by extraneous phenomena: the time of day, the temperature in the room, the stress of waiting for a long time.
To determine the degree of credibility of advertising, you can conduct a survey using the Rating Scale with the statement: "This ad is believable" and with extreme positions: from "very" to "not at all." Respondents should mark the position corresponding to their opinion. Spontaneous agreement or rejection can be determined using a special analyzer that has two buttons “+” for agreement and “-” for rejection, and the respondent must express his attitude immediately after the advertisement is shown, without thinking.
The degree of understanding of the text is checked by eliminating, for example, every fifth word. The more respondents correctly completed the text, the clearer it is considered.
For printed matter, coverage includes two components - circulation and transmission rate (how many times each copy reaches a new reader). For example, one copy of the newspaper “X” is read by about 5 people. In addition, the transmission rate for magazines is much higher than for daily newspapers.
Sincerely, Young Analyst
Understanding how it works and how to evaluate its effectiveness is difficult, sometimes very. But with our little guide, this will be a little easier. If you don't know what a good advertising campaign should be in Yandex.Direct and Google AdWords, seek zen, read and be enlightened. I'm here already.
How to evaluate the effectiveness of contextual advertising
To get started, you need a plan. State the purpose of the campaign as clearly as possible. “Get new customers” is not the goal. But “achieving 15 applications per month” will do just fine. The second important point: performance evaluation contextual advertising must be compared with any period. If this is your first ad, you can look at the conversion rates, abandoned carts that your site is already generating.
Target actions are defined
It can be:
- Purchases;
- calls;
- Filling out the feedback form;
- Adding a product to the cart;
- View contact page;
To evaluate the effectiveness of contextual advertising, it is also useful to analyze user behavior on the site. This will help you understand how interested users are in your offer and how it meets their expectations. Be sure to look at:
- time spent on the site;
- viewing depth;
- bounce rate;
- Repeat visits.
To track all this, be sure to set up goals in Yandex.Metrica and Google Analytics. And don't forget about utm tags for campaigns.
Well thought out campaign structure
It's all good if different types of ads are grouped into separate campaigns - it's easier to count the conversion. For example, by type of service or product, region, type of requests.
Ads are made correctly
For everything to work well, ads need to be optimized. Here's a little checklist:
- There is a keyword in the title and text;
- The ad has short description benefits, price, call to action;
- Phone number, address, quick links are indicated (for example, to the corresponding category in the store) No.
- Landing pages are chosen correctly and meet the expectations of users;
- The links have UTM tags;
- The correct semantic core has been selected.
KPIs defined and calculated
Let's say you figured out the metrics and RK settings, stocked up on popcorn and got ready to watch profits grow with tears of happiness. Now it's time to calculate KPI - this is main instrument checking the effectiveness of contextual advertising. They help you estimate the cost of each visit, referral, or sale. If the values are within the normal range (which depends on the average bill and other parameters), then you can just sit back and enjoy life, and if the campaign is unprofitable, go through all the checklist items again and look for errors. Increased attention should be paid to CPA and because it key indicators, but to analyze everything else is also useful. Let's deal with each incomprehensible abbreviation separately.
ROIstands for return on investment, and in Russian "return on investment". It is calculated like this:
ROI = (Income - Investments) / Investments x 100%
CPAis the cost of one target action. It is calculated like this:
CPA = Costs / Number of targeted user actions
CPL- the cost of one call. Here, too, everything is simple:
CPL = Costs / Number of hits
Finally, one can calculateCPO/CPS(cost per order/sale) is the cost of the actual sale. As in other cases, to evaluate this indicator, you need to divide the cost of contextual advertising by the number of sales.
Rate limits set
It is necessary to decide how much you are willing to pay greedy search engines for one visitor. This indicator is calculated from the conversion rates and the average profitability of the sale. If you don't set a cap on the cost of a visit, the money will fly away very, very quickly, and the efficiency will not be very high. It is also useful to determine the daily budget - this will help optimize costs.
How to check the effectiveness of contextual advertising?
Compare the dynamics and KPIs of campaigns with each other and in different periods of time. Obviously, you need to evaluate the number of conversions and their cost.
Budget = Number of clicks x Average cost per click
Yandex.Direct
Direct has a special service available from the main interface. It's called (suddenly) "Budget Forecast".
It helps to calculate advertising costs and predict the main indicators: CPC for queries, CTR, number of impressions and clicks. The main thing to remember is that a forecast is a forecast and the indicators are calculated from the statistics available to Yandex. And it consists of the results of campaigns of other advertisers, which vary greatly in quality: some do everything in jewelry, while others simply drain the budget for who knows what. The real picture will greatly depend on the settings of the RK. If everything is done correctly, then the budget may well be less than predicted.
Google AdWords
In Google, the Keyword Planner Tool does the same.
Everything is available there: calculation of the average number of impressions and clicks, their cost. All indicators are also calculated based on statistics, so the real picture may differ and will depend on the campaign settings. It is also important to take into account that only placement in the search is taken into account, i.e. no forecast is made for impressions and clicks in partner networks (this is true for both systems).
What determines the cost of the context?
- Type of allocation. The most clickable places - on the left above the issue - are the most expensive.
- Campaign settings. If you set up impressions for the whole of Russia and do not set the time range, then the advertising budget will increase dramatically. Good way optimize costs - set geo-targeting as accurately as possible and show ads only during "hot" hours.
- Season. Demand for air conditioners rises strongly in summer, and for heaters in winter. This should be taken into account when planning AC, because the higher the demand, the higher the cost per click will be. You can see the dynamics of changes in the frequency of queries in Yandex.Wordstat and Google Keyword Planner.
If each ad group has its own AC launched, goals are correctly defined and KPIs are calculated, it will not be difficult to evaluate the effectiveness of the context and, in which case, adjust the strategy. Calculating advertising costs is also easy: for a rough estimate, you can use the special tools of Yandex and Google.
Indeed, it is very difficult to identify the decisive factor in the relationship between the advertising message itself and its impact (or lack of this impact) on an individual. For example, in the course of one study, a group consisting of product managers and advertising service managers of firms, heads of working groups advertising agencies, creatives, media professionals, and research professionals, “were asked to select the best ads from those that had already been thoroughly tested in the market. Result? While the experts were generally able to determine which ads should have attracted the most readers, they were unable to determine which ads helped sell more product» . As mentioned earlier, besides advertising, there are too many other different factors affecting sales. And according to the most authoritative experts, “there are no methods for quick and easy control of numerous factors that affect sales” .
According to C. Sandage, W. Freiburger and K. Rotzoll, “the reaction is influenced by many different “reasons”, and each variable of the stimulus generates many “effects”. The same announcement may, for example, irritate, inform, amuse, reinforce confidence, encourage action, may be completely ignored at the time of contact, and later it may be quickly forgotten or partially remembered, it may also cause a change in attitude or awareness. Therefore, it is quite clear that, when deciding which parameters of the response to use, the researcher should be guided by common sense in many respects. .
In connection with the above, it seems obvious that the announcement (before it is reacted to) must be seen. After contact with advertising, a person must also know the brand or company name, understand the properties, advantages and benefits of the product. A person may have a rational or emotional predisposition to buy a certain product. To this we can add the opinion of the management of one of the world's largest advertisers General Motors: "Effectiveness will be primarily measured by credibility, the ability to use emotions and the persuasiveness of advertising" .
Testing can be subjected to precisely certain human reactions. In this evaluation, either single parameters or a minimum set should be subjected, since attempts to analyze too many active advertising parameters at once can confuse the results. However, the more parameters that are tested in general, the more accurate the final result will be. “With a careful analysis of just one or two peripheral aspects of advertising effectiveness, the results of its testing may seem too sterile and unrealistic for those who will have to use them in the decision-making process. If he uncritically equates the degree of memorability and impact, or change of attitude and sales, he is left with the opportunity to rely on faith, which does not give any guarantees. .
Let us dwell on the types, methods, criteria and stages of testing, as well as on the specifics of testing in various media.
Ad Effectiveness Immediate Response Tests
The Immediate Response Count shows exactly how many consumers responded to each ad. This is exactly the tool that practitioners and researchers would like to have to measure the effectiveness of advertising. But it can only be used to study ads that elicit an immediate response. So, K. Hopkins noted: “The effectiveness of mail order advertising can be estimated to a penny. Response cost and cost of sale per dollar of item sold are calculated with perfect accuracy. Compare one advertisement with another, compare methods. They compare everything: headings, layouts, sizes, arguments and illustrations. .
However, direct response tests are not very suitable for studying television or print advertisements that are designed to stimulate retail purchases. Nevertheless, in order to obtain information about the direct impact of advertising on people, which led to the appeal to the store (office), advertisers quite often resort to the analysis of product requests after advertising. The request can be: a purchase, a visit to an office or a store, a phone call, filling out a questionnaire, visiting a site, clicking on an ad.
The easiest way to evaluate is to give each seller or distributor of the product a copy of the published advertisement and a customer ledger. The copy of the announcement shall indicate the date of its publication and the edition in which it was placed. A TV channel or radio station may also be listed.
When several ads are published, each of them is assigned a serial number.
All information on the client who applied to the seller is entered in the customer log book:
- the name and profile of the company (name, occupation, age of the individual) or other information that can give at least a small idea of the buyer;
- the name of the product or service in which the buyer is interested;
- source of information (from which ad in which media);
The subsequent very simple analysis of the client log will show which ad in which advertising medium what kind of requests and from what type of buyers came.
Also, when testing ads in the press, ads are usually coded in advance. That is, in different versions indicate different phone numbers or addresses. And then, according to a different number of responses or purchases in different places It is quite easy to judge the effectiveness of a particular advertising option.
Variants of the announcement can be printed at different times in one edition, or simultaneously in its various circulations (split -run ). One option - in one half of the rooms, the second option - in the other. Since each of the pair of test ads is evenly distributed throughout the circulation, the chances of any reader getting a number with any of these ads is 50%.
With the help of multi-channel cable testing (split-cable ) you can check the effectiveness of television advertising. So, for example, “a group (panel) of households of about 3,000 families living in the tested areas is recruited. An identification card presented by a panel member in front of a checkout counter at the exit of the store, which is linked to a computerized scanning system, allows tracking of purchases made by that panel member. His actions in the store are also monitored. Further, the members of the group have devices connected to their televisions that allow them to… keep track of which channel is tuned in, as well as replace one advertisement with another. Therefore, the members of the group can be divided into two subgroups, and each of them is assigned different advertising options. .
Testing in some media is often used for subsequent placement in others. So, advertising can be tested in local inexpensive newspapers and, having chosen the most effective option, placed in national ones. Or test an ad in one publication and, based on the most effective option, then place an ad in several newspapers.
You can also simply collect information using coupons. In this case, publications publish ads with coupons that stimulate potential buyers fill them out and send them to the advertiser.
Coupons cut from different publications can also be sorted by different specified addresses, by special illustrations or special ciphers. For example, in Los Angeles, “600 customers are stopped and randomly assigned to test or control groups. The test group is shown five television or radio commercials, or six print ads.
Approximately 250 subjects in the test groups complete the advertising questionnaire. Both groups are assigned a consumer code and given coupon packs, including one for the tested brand, which can be sold at the nearest pharmacy or supermarket. The sales performance indicator is the ratio of the number of purchases of TV viewers to the number of purchases control group buyers. Purchases are tracked by data scanning. Although the advertising display environment is artificial, the shopping choice is relatively realistic, since in this case real money is spent in a real store. .
In connection with this test, the well-known advertiser D. Ogilvy notes that “some measure the return on television in the volume of goods sold per thousand viewers ... The more interesting the television program that includes your TV commercials, the worse for you. Remember, there is no connection between the number of viewers and the number of orders.” .
One more observation is curious: “the example of one large advertiser vividly testifies to the ultimate uncertainty of advertising. food products, whose ad readership skyrocketed after switching to comic book-type illustrations, but sales figures didn't appear to follow this trend. Then the company started directly playing with the motive of taste in advertising. The number of readers fell, but the sales felt great. ” .
In addition to actual purchases, the number of phone calls is often recorded. With the introduction of the Internet, more and more often the role of evaluating the effectiveness of advertising is visiting a site and clicking on an ad.
Site visit statistics are obtained using registration programs. Hits and hosts are usually fixed. Hits (hit , visit ) - the total number of visits to the site (it doesn't matter if a hundred people have visited or one person has visited a hundred times) for a certain time, for example, for a week, a month, etc. Hosts (host , site reach ) – number of unique visitors.
With the help of automatic statistics, it is also possible to obtain information on the geographical location of the user, on the time of visiting the site, on the interest in this or that information, etc.
Thus, the statistics allows you to track the effectiveness of the site / banner in terms of the number of visitors - representatives target audience. Such data allows you to work on the content, optimization and promotion of the site or banner (or other advertising message) in order to increase its effectiveness.
If the site sells goods or services, you can track its effectiveness in relation to sales using the CTR indicator (Click-Through Rates). It is the ratio of the number of "clicks" to the number of impressions. CTR is measured as a percentage. It can be represented in the following form:
CTR = Number of clicks / number of impressions x 100%
On average, effective banner ads generate 0.1-2% response rates. Sometimes CTR can reach up to 10%. In this case, it will be highly effective. If the CTR is less than 0.1%, this is considered a sign of low-performing advertising. However, a lower figure may be acceptable when it comes to advertising very expensive products.
Communication Tests of Advertising Effectiveness
As we have already said, the effectiveness of advertising has various dimensions, one of which is communicative. Accordingly, its communicative effect is also tested. Based on the fact that persuasion is a gradual process and that the function of advertising is to predispose people to make a purchase, researchers have developed tests to determine the level of awareness of the advertised product, the level of knowledge about what this product promises, to identify attitudes towards him, as well as the willingness to buy it.
Communication tests are used for both final assessment and ongoing diagnostic testing. It should be borne in mind that "communication tests do not give simple results of "good" - "no good". Rather, they provide a detailed analysis of the subjective response of consumers to the advertising being tested. This makes them less useful for making decisions about running ads, but more useful for understanding how ads work.” .
In general, the criteria used in advertising testing can be divided into the following types: memorability, persuasiveness and loyalty (commitment).
Each evaluation method has a specific combination of advantages and disadvantages, as well as different costs: “… no one test or method is suitable for meeting all the requirements of advertising research, but tests designed to measure different concepts can actually serve their purpose. Which tests are better, in particular whether ad recall or persuasiveness tests are better suited for testing TV ads, is a matter of ongoing debate in the industry.” . Many researchers do not find an obvious connection, for example, between memorability and persuasiveness, between memorability and sales. Therefore, you cannot rely on one single result - all tests must be comprehensive.
Advertising recall tests
Researchers believe that “the action to which the announcement should induce is usually delayed in time. Impressions can fill this gap between the perception of an ad or series of ads and action if they last long enough to influence behavior at the right time. On the other hand, advertising provides new knowledge, and the process of assimilation of knowledge is inseparable from memory. That is why ad recall has always been considered a significant indicator of their effectiveness. .
Although recall tests have been used in advertising research for a long time, it is not known for certain whether they predict sales.
Memorability tests are divided into two groups: recall tests and recognition tests.
recall tests assess the memorability of advertising by addressing the audience of the advertising message and finding out what they remember.
The advantages of recall tests include the fact that tests of this type have been used for a long time and advertisers are used to this tool. Today, the standards for the results of these tests are defined. It is also important that recall tests, unlike most other types of tests, are reliable.
The disadvantage of this type of tests is their high cost.
Recall tests are administered with and without prompting.
The most well-known method for determining memorability on television is a survey of viewers 24–30 hours after the advertisement was shown (the so-called next day recall method ( day -after -recall - DAR). In the results, DAR is presented as the percentage of ad viewers (those who watched transmission before and after the ad was shown) who remembered something specific from that ad, such as a sale offer, plot, visual or audio elements. This measure is referred to as the Proven Recall percentage. seen something from an ad, can't reproduce its specific elements - called the percentage of relative recall. The obtained percentage of recall of the tested ad is compared with the norm, which is the historically established average value for such ads. Typically "from zero to 60-70% of viewers can show that they remembered the desired role to. The average recall rate for a 30-second commercial across all product categories is 20%. In other words, one in five people who saw ads may remember something about him the next day" .
Similar tests are also used to test press and radio advertising.
Recognition Tests measure the memorability of an ad by showing the ad to audience members and seeing if they remember it or not.
Of course, a high recognition score is easier to achieve than a high recall score. After all, recognition requires only a judgment about the source of information, and not the restoration of a sufficiently large amount of information in memory, as in recall. Accordingly, recognition can be fixed even with minimal (shallow) attention to advertising.
Notable are the results of well-known tests conducted for DuPont Corporation and the Advertising Research Foundation, which showed that "for subsequent rapid identification, an ad must:
2. Have a rich color illustration;
3. Have an illustration, the area of which exceeds the area of the text part by no more than 2-3 times;
4. Have a clearly articulated title;
5. Have the saturation of the predominant color higher than the saturation of the other colors. .
When determining recognition, mail questionnaires and personal interviews are also used.
The main advantage of the recognition method is its simplicity.
The disadvantages of the recognition test include the uncertainty that the respondent saw the ad for the first time and saw the ad in this particular source of information. To the same As you know, images of children, animals and sexual objects, in comparison with other images, in themselves have a higher degree of memorability. It should also be pointed out that bad advertising is recognized as well as good advertising.
As well as recall tests, recognition tests were first used in evaluating print ads. The most popular recognition tests are the Starch test and the Bruzzone test.
Starch testwas developed back in the 30s of the twentieth century by Daniel Starch & Staff. During this test, the reader of a newspaper or magazine issue, together with the interviewer, leafs through the magazine page by page and answers questions about advertisements. The results are classified into three sections:
– noticed (percentage of readers who reported seeing a specific ad in the issue);
– brand recognition (percentage of readers reporting that they have seen or read part of the ad that allows them to clearly identify the brand or advertiser);
Most read (percentage of readers who reported that they read half or more of the ad text).
During the test, a measure of the number of readers per dollar spent is displayed. It is calculated by the formula:
Percentage who noticed x Number of original readers of the journal / Cost per seat = Number of readers per dollar spent
In addition, the test provides data on the percentage of readers (male and female) who saw the illustration, as well as such important ad components as the title and advertiser details.
Research by Starch showed that recognition depends on the class of the product, on the interest of this segment of consumers in given class products, as well as variables such as size, color, position, advertising approach, and the nature of the magazine or media.
The Starch test has been criticized for being primarily about attention grabbing, which is dependent on many factors and does not necessarily result in an ad being read and a product purchased. At the same time, the share of readers of the publication interested in a particular product, the severity of reader interest caused by the editorial content of the issue, the location of the advertisement in the magazine, etc. can distort the picture.
For many advertisers, classifying readers by gender alone is not enough. Researchers question the Starch test in terms of its validity and validity. For example, in Starch's experiments, some respondents claimed to recognize previously unpublished ads that they simply could not see. This indicates that recognition is not a fully valid measure of recall.
However, compared to the recall test, the Starch test has certain advantages. So, due to the greater simplicity of the questions, the survey itself is faster. This, in turn, leads to an increase in the number of ads used and cheaper research in terms of costs per ad.
The high reliability of the Starch test is also noted.
Test " Bruzzone » was created by the company of the same name (Bruzzone Research Company - BRC) and is an analogue of the Starch test for television. This test is done by mail. Through it, consumers receive a questionnaire in which, without a brand name, scenes from a television advertisement are shown. Respondents must answer if they remember seeing the commercial before. If the answer is positive, the recognized trademark and description of the video are entered in the questionnaire. Each video, therefore, receives a certain number of points and consumer ratings.
Just like the Starch test, the Bruzzone test has high reliability. And compared to other TV advertising testing methods, it is also relatively inexpensive.
Advertising Persuasiveness Tests
Persuasiveness tests evaluate whether an advertisement influences the intention of consumers to buy a product of a given brand or not. In a credibility test, consumers are usually first asked if they are likely to buy a particular brand. Next, they are shown an advertisement for the brand, and at the end they are asked again what they intend to buy. Based on the analysis of the results, it is determined whether the intention of consumers to buy this brand has increased as a result of viewing advertising.
For example, in a test performed by Mapes & Ross, “advertising is broadcast at predetermined best times on UHF stations in each of the three main markets. Prior to the test, 200 randomly selected TV viewers (in the case of an exclusively male target audience - 150 people) are invited by phone to take part in a survey and a cash lottery, which require viewing a test program. Respondents are expected to know the name of the brand without additional prompting. They are asked about which brands of the listed products of different categories they prefer. The day after the ad was shown, respondents again answer the question about brand choice, as well as questions that determine the DAR indicator. The key indicator in the Mapes & Ross test is the change in brand choice before and after advertising…
The Mapes & Ross study includes 142 advertisements across 55 product categories and 2,241 respondents who were re-contacted two weeks after participating in the test. Among those who bought products in this category, the number of purchases of the tested brand is 3.3 times higher for those who changed their choice than for those who did not change it. .
Notably, a study using multi-channel cable testing by the Advertising Research Foundation found that “the best (most predictive of sales difference) measure of persuasiveness testing of an ad was the simple rating of the advertised brand on a scale of ‘poor’ to ‘excellent’, received after displaying ads" .
Persuasiveness tests are usually relatively good at predicting performance when the ad is about something new or interesting. But when brands are well known, and when all advertising messages are similar, test results can be largely random.
In general, persuasiveness tests are not considered reliable. The more well-known brand is tested, the less reliable the result.
The disadvantages of credibility tests include their high cost.
However, “although audience composition, environment, and brand awareness seriously impact the validity of the persuasiveness test, there is evidence that when persuasiveness tests are conducted competently, their results are associated with sales performance, especially for advertising containing something new. and important about the brand".
Advertising Loyalty Tests
In connection with the increasing orientation of consumer behavior towards the purchase of a particular brand, advertisers have an increasing need to test their loyalty (commitment). Researchers are developing appropriate approaches. For example, Mapes & Ross “compares data from consumers who have been shown ads to those who have not. This test was conducted among consumers who already consider this brand as one of the preferred brand, both on the basis of established buying habits after advertising exposure, and on different types established relationships. It then analyzes which specific brand estab- lishments best predict the actual increase in the number of units purchased, and finds out which ads most reinforce the key estab- lished relationships. .
More detailed information on this topic can be found in the book by A. Nazaikin
Contextual advertising works, it works for a month, it works for two. And something does not smell like big money. And a hefty stone appears in front of you, and on it is an inscription: “If you optimize advertising, you will receive a large revenue (or maybe a small one). You will increase the advertising budget - the revenue will increase, and the profit - as God sends.
You can cast lots, trust your intuition, or write to the "Battle of Psychics". I trust analytics and numbers more. I will tell you my shamanic secrets of how to "feel" the effectiveness of contextual advertising.
How to measure the effectiveness of contextual advertising
The key indicator for all advertising channels is the cost of purchase or CPO (Cost Per Order). To calculate the purchase price, you need to divide the acquisition costs by the number of paid orders. CPO can be calculated both for the entire site and for each channel separately.
The lower the purchase price, the more effective the channel, campaign or ad group is performing
So that the number of applications received from each channel does not have to be determined by coffee grounds, I recommend that you first, at least a couple of weeks in advance, set up goals in Yandex.Metrica and Google Analytics.
And in order to understand how much to lay out "dough" in order to receive one order, you need to calculate how much money it brings on average for the business.
We must also take into account average check, and marginality, and how many percent of the income we are ready to spend on attracting new customers, so that there is still money left for a car for our son and an apartment for our mistress.
It is better, of course, to use the average LTV (Lifetime Value is the profit that we receive from one client for the entire time of cooperation with him). But such statistics have been collected for years, and they are not always available.
Lena, I didn’t understand anything, explain normally!
To make it clearer, I will explain using the example of old business indicators of one of our clients - an agency selling tours in the sanatoriums of the Caucasus and Belokurikha. Website conversion - 2.43%, on average, the agency earned 7,060 rubles from one sale.
Let's define the boundaries of our greed - indicators of the effectiveness of contextual advertising, which we will focus on. In order not to go into debt and loans, you can spend no more than 100% of the income that it theoretically brings to the campaign to attract one lead.
But you have to pay for telephony, pay salaries to employees, and the services of LeadMachine are also not free. And the business owner wants to see profit: the more, the better. With this in mind, we realized that we dream of spending about 20% of the profit on attracting, which is 1,412 rubles per sale or 212 rubles per application (CPOo - expected sale price and CPLo - expected lead price).
As a result, we determined the intervals in which we want to see key indicators.
Expectation and reality
We calculated key indicators: the value we are striving for, and the upper limit from which we must stay away. Now, rather, we open Yandex.Metrika and Google Analytics and consider what the real CPL is equal to.
In Yandex.Metrica, the number of requests for all channels can be viewed in the standard report "Sources, Summary".
In the table that opens, select the goal and see how many applications each channel brought.
Context costs can be viewed in Yandex.Direct and Google AdWords advertising services. We divide the costs by the number of applications and get our real cost per lead. Then we either dance or cry.
If the price of the lead suits you - in pursuit of profit, just pour more money into advertising budget. But after such manipulations, CPL can also grow up, so you should always keep your finger on the pulse.
If the client is too expensive
If the price of a lead is not satisfactory, or, even worse, it is more than the maximum allowable value, the effectiveness of contextual advertising leaves much to be desired. So you need to dig deeper.
It is better to look at statistics on Yandex.Direct in Metrica. Open the standard reports again, select "Direct, summary" in the sources, specify the desired goal.
Now you know the number of applications for each campaign. Expenses can be viewed in the "Direct - expenses" report, if the integration of the two services is configured correctly, or in "Yandex.Direct".
Google AdWords statistics on the number of requests and costs are best viewed in Google Analytics. To do this, select "Traffic Sources" - "AdWords" - "Campaigns". Previously, two services must be synchronized with each other.
Campaigns where the cost of the application does not suit you can be disabled, checked for errors and optimized.
The effectiveness of contextual advertising in clicks
Another indicator that will help determine the effectiveness of contextual advertising is CPC, or cost per click.
Let's go back to our example. In an ideal world, we spend no more than 212 rubles per application. Website conversion - 2.43%. Those. Approximately every 41st visitor to the site leaves an application. Let's call this indicator n, we will calculate it according to the following formula:
Then the CPC in an ideal world does not exceed 212 / 41 = 5 rubles 17 kopecks. This value can be set in Direct and AdWords as the maximum CPC. But there will be few impressions and clicks, so it is better to gradually increase this parameter until you achieve the desired traffic.
When increasing your maximum cost per click, remember that there is a limit beyond which ruin and poverty can await you. It's easy to calculate:
The effectiveness of contextual advertising in ROI
End-to-end analytics services make all these calculations simple and automated. You understand the costs for each channel and see the revenue, see the return on investment.
If it is not possible to use such a service, simply control the costs and application prices for each channel, compare them with income. How this is done, I tried to explain as simply as possible.
But be prepared that optimizing ads without taking into account ROI for each channel can backfire. In our example, the cost of an order from Yandex.Direct exceeds CPLo by 14%, and orders from Google AdWords by 52%. But AdWords has a higher ROI: we received more profit from this channel for 22 requests than for 23 from Yandex.Direct. So it goes.
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