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Comparative analysis of the effectiveness of advertising with competitors. Methods and methods for evaluating the effectiveness of advertising

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Psychological effectiveness - the degree of influence of advertising on a person (attracting the attention of buyers, memorability, influencing the motive for buying, etc.). Moreover, the psychological impact is most effective if it leads potential consumers to make a purchase. Thus, the economic efficiency of advertising depends on the degree of its psychological impact on a person.

Measuring the cost-effectiveness of advertising presents great difficulties, since advertising, as a rule, does not give the full effect immediately. In addition, the growth in trade turnover is often caused by other (non-advertising) factors - for example, a change in the purchasing power of the population due to rising prices, etc. .

The economic efficiency of advertising is most often determined by measuring its impact on the development of trade. The simplest method for determining the economic efficiency of advertising is the method of comparing the turnover before and after the promotional event. According to this method, the economic efficiency of advertising is determined either by comparing the turnover for a certain period of the current year, when the product was exposed to advertising, with data for the same period last year, when the product was not advertised, or by comparing the daily turnover before and after the promotional event in the current period. time.

The latter method is more acceptable in our conditions, given the constant rise in prices due to inflation, which makes it very difficult to compare data over long periods of time.

The final conclusions about the economic efficiency of advertising are obtained by comparing the additional profit received as a result of advertising with the costs associated with its implementation.

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

where T d -- additional turnover under the influence of advertising, rub.; T with -- the average daily turnover before the advertising period, rub.; P -- increase in the average daily turnover for the advertising and post-advertising periods,%; D - the number of days of accounting for turnover in the advertising and post-advertising periods.

The economic efficiency of advertising can also be judged by the economic result that was achieved from the use of an advertising medium or an advertising campaign. The economic result is determined by the ratio between the profit from the additional turnover received under the influence of advertising, and the cost of it.

To calculate the economic effect, you can use the following formula:

where E is economical effect advertising, rub.; T d -- additional turnover under the influence of advertising, rub.; H t -- trade markup for goods, in% of the selling price; U R -- advertising costs, rub.; U D -- additional expenses in terms of turnover growth, rub.

In this case, we compare the effect obtained from the promotional event with the costs of its implementation. The results of this ratio can be expressed in three ways:

However, the data obtained is still insufficient to compare the cost-effectiveness of spending on various promotional activities. More accurately, the cost effectiveness of advertising characterizes its profitability.

The effectiveness of the psychological impact of advertising media is characterized by the number of consumer coverage, the brightness and depth of the impression that these media leave in a person’s memory, and the degree of attention.

The effectiveness of the psychological impact of advertising on the consumer can be determined through observations, experiments, and surveys.

The method of observation is used in the study of the impact on consumers of individual advertising media. This method is passive in nature, since the observer does not influence the buyer in any way, but, on the contrary, conducts observations imperceptibly for him. According to a predetermined scheme, the observer registers the received data, which are then comprehensively analyzed. The observer, for example, notes which stand of the fair or exhibition-sale attracts the most attention of buyers, how long pedestrians linger at one or another showcase, how many people enter the store after familiarizing themselves with the showcase, which product in the showcase is of greater interest and what demand it is in .

Evaluating the effectiveness of individual advertising media, first of all, it is established whether this medium achieves its goal. So, to determine the degree of attracting the attention of buyers to outdoor advertising (showcase), you can use the following formula:

where B is the degree of attracting the attention of passers-by; O - the number of people who paid attention to outdoor advertising(showcase) for a certain period; P is the total number of people who passed by the shop window in the same period.

Along with the observation method, the experimental method is widely used. This method is active. The study of the psychological impact of advertising here takes place in conditions artificially created by the experimenter. If the observation only fixes how the consumer relates, for example, to a certain display of goods, then the experimenter can rearrange the goods, and then observe the change in the reaction of buyers.

This method is used in determining the impact on buyers of window display, packaging, press ads, radio or television advertising. So, if you need to assess the psychological impact on the buyer of the product packaging, then the same product (for example, washing powder) is placed in different packages.

The survey method also refers to active methods for determining the psychological impact of advertising. This method is time-consuming, but much more reliable than others, as it allows you to identify directly from the buyer himself his attitude not only to the advertising medium as a whole, but also to the individual constituent elements of this medium. Using the survey method, you can evaluate the impact of an advertising medium on buyers and determine which elements of its design attract the most attention and are better remembered.

To determine the effectiveness of a particular advertising medium, questionnaires are drawn up, which, according to a previously developed program, are brought to the attention of consumers in writing, in personal conversations, on radio or television. An analysis of the responses received allows us to draw appropriate generalizations and conclusions.

In some cases, surveys are combined with experiments. Sometimes the effectiveness of advertising is evaluated on the basis of voting data. The effectiveness of an advertising event or a separate means of advertising can be expressed by the number of consumers covered by advertising, as well as by the amount of costs per viewer, reader, etc. The more readers covered by advertising, the lower will be the costs per person.

Data on the effectiveness of the psychological impact of advertising make it possible to predict its effectiveness.

Communicative efficiency in traditional advertising, it is much easier to measure than economic advertising.

The preliminary methods for researching the effectiveness of advertising include the following.

1. Direct evaluation method. It involves studying the opinions of consumers about various options for an advertising message: how much the message captured attention, is it easy to perceive, how clear is the main idea and the benefits being advertised, what seems especially attractive in the message, how much does the message cause a desire for follow-up actions, etc.
2. portfolio tests. It involves showing consumers a number of different advertising messages without a time limit. Respondents are then asked to recall everything they saw, including the content of the advertisements. The portfolio test is designed to identify the level of memorability of an advertising message, its ability to stand out among others.
3. Laboratory tests. With their help, the physiological reaction of the consumer to an advertising message is measured, and appropriate equipment is needed. They help to determine how capable the advertising message is to attract the attention of the consumer.

These methods help to preliminarily assess the possible degree of impact of an advertising message on the target audience. After that, the most proven advertising messages are selected and an advertising campaign is carried out.

level of awareness;
motivation level;
Influence at buying behavior;
noticed - the consumer remembers that he saw an advertisement if the product is mentioned in a conversation;
memorability - the ability not only to remember, but to correctly reproduce an advertising message;
Recognizability - the ability to "recognize" the message when it is displayed.

When studying the communicative effectiveness of television advertising, it is often used panel method. Separate studies are conducted to determine the relationship between the frequency of advertising and the nature, as well as the level of exposure to consumers.

There are the following categories of evaluation research methods:

memory tests - associated with tests of memory and recognition;
persuasiveness tests - are associated with asking consumers before and after viewing an advertisement of their intention to buy a product of a certain trademark;
counting immediate responses - refers to the cost-effectiveness method and is associated with counting calls to the firm for additional information and the number of purchases influenced by advertising;
communication tests - designed to identify such characteristics as whether the advertisement conveyed the correct message to the target audience, how consumers reacted to this message. The results are ambiguous and require detailed analysis and interpretation;
focus group - is the most common method of preliminary evaluation of the effectiveness of television and print advertising, highly dependent on subjective factors;
physiological tests - based on the measurement with the help of special sensors of the physiological parameters of a person's condition: pulse, dilated pupils, various reactions;
frame-by-frame tests - are associated with fixing the reaction of viewers to certain parts of the commercial. For example, test REAS, in which, during the showing of a commercial in a cinema, viewers must press buttons on hand-held keyboards, expressing their opinion on each part of the advertisement;
intra-market tests - an assessment is made of the impact of an advertising campaign on sales, i.e. economic efficiency of advertising.

Economic efficiency

There are two methods (approaches) to assess the economic efficiency of advertising:

1) the historical approach involves identifying the relationship between advertising costs and sales volumes for past periods of time;
2) the experimental approach is to study the impact of advertising costs on sales by allocating different advertising budgets for the regions in which the experiment is conducted.

To get a better idea of the potential cost-effectiveness before launching to a mass audience, its impact can be measured on the example of a small region and compare changes in sales volumes with other regions where the advertising campaign has not yet been carried out.

Relationships between advertising spending and indicators such as market share can also be used to measure economic efficiency; the number of new customers; turnover; profit, income, etc.

It is practically impossible to accurately predict the increase in sales growth as a result of an advertising campaign, since many factors influence this: the economic situation in the country and the world, the change of power in the region, changes in legislation, the prospects and current state of the market, the emergence of competitors, the emergence of new products, problems within the company, etc.

Methods for evaluating traditional communications are usually based on a sufficient amount of statistical data.

1. Direct methods - based on the direct calculation of sales results obtained under the influence of advertising.
2. Indirect methods - subdivided by determining the number of customers and the number of invoices and methods for determining the amount of sales.

The amount that you really need to allocate for advertising depends on the stage life cycle goods, since at the stage of product introduction, trade can even be unprofitable, and advertising costs can significantly exceed the average 4–5% of all company expenses.

Measurement of the effectiveness of advertising is expressed in the study of how the target audience is familiar with information about a particular company, about what is known about the goods produced by the company, about their quality characteristics, about what image of the company and goods has been formed and what is the attitude of potential consumers towards them.

In general, it is not possible to absolutely accurately determine the effectiveness of individual advertising media in most cases. However, preliminary calculations justify themselves.

Marketing by Notes: A Practical Course on Russian examples: textbook / ed. L. A. Danchenok. 3rd ed. M.: Market DS, 2008. S. 712–713.
Marketing by notes: a practical course on Russian examples: textbook / ed. L. A. Danchenok. 3rd ed. M.: Market DS, 2008. S. 714–715.
Vasilyeva E. A. How to make advertising effective? 25 win-win ideas: pract. allowance. Moscow: Dashkov i 1C, 2010, pp. 23–24.

Advertising effectiveness research is one of the most important and promising directions 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 primarily due to the fact that decisions in the field of advertising are made under conditions of a 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 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. Therefore, economic efficiency usually depends on the communicative one, in other words, the level of sales of goods depends on the degree of psychological impact of advertising on the consumer.

Monitoring the results of an advertising campaign is integral part 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, location commercial enterprise, the level of customer service culture, 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 is the economic effect of 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 indicators characterizing advertising campaign, calculate:

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 outputs.

Note that a certain group of people can be included in several ratings at the same time, so the sum may exceed 100%. In advertising practice, a notable TV advertising campaign scores 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. Greater value TRP in relation to GRP indicates the greater popularity of the media for a given 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 better results 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.