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The Digital Media Ecosystem and Web Realities
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Brand Websites and Micro-sites
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Viral Marketing vs. Buzz Marketing: while both aim to generate word-of-mouth (WOM), they differ significantly:
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Search Engine Marketing: SEO vs. SEA Search engines are the new homepage for brands, making visibility critical.
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Search Engine Optimisation (SEO): SEO is a long-term strategy to improve visibility in unpaid (organic) search results. It provides higher trust, credibility, and long-term ROI compared to paid media, though it is technically complex and subject to changing algorithms.
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Social Media Advertising and Algorithms Social media platforms filter content through complex, AI-driven algorithms to ensure users don't have a poor experience due to content overload. Because organic reach is limited, paid social media advertising is essential to reach new audiences.
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Key characteristics of social media include:
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Content sharing: users can create and distribute various types of content, ranging from posts and photos to videos
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Broad reach: social media platforms provide access to a lare and diverse audience
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User-generated content
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Interaction and engagement
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Social network sites = online platforms/ services designed to cultivate and nurture social connections among individuals or groups; characteristics:
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Profiles and connections
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Relationship-based structure
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Networking features
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Privacy controls
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How algorithms work:
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Ad Formats and UGC Platforms offer highly specific ad formats, all typically requiring a strong Call-to-Action (CTA) like "Shop now" or "Learn more".
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Image ads: single image with description and call to action
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Video ads
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Influencer Marketing Influencers are categorized by their follower counts and audience relationships.
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Mega-influencers (>1M followers): Offer massive reach but at a very high cost; best for top-of-the-funnel mass awareness rather than direct conversions.
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Macro-influencers (100k - 1M followers): Usually internet-famous creators; great for targeting a specific demographic (e.g., young females) at scale.
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Micro-influencers (1k - 100k followers): Topic specialists with a very uniform audience; they cost less and boast stronger relationships and trust with their followers.
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Nano-influencers (<1k followers): Everyday people with high engagement in local communities, perceived as the most authentic.
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Note on Brand Advocates: While Ambassadors are hired and paid, Advocates are loyal consumers who promote the brand voluntarily, often resulting in higher credibility.
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Affiliate Marketing A performance-based system involving four key players: the merchant, the affiliate (publisher), the network (intermediary), and the consumer.
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Types of Affiliates: Include cashback websites, price comparison sites, content blogs, and voucher/discount sites.
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Tracking Tech: Uses tracking pixels, Conversion APIs (CAPI), or post-back URLs to accurately trace which affiliate generated the sale. Brands must be wary of affiliate fraud, such as "cookie stuffing," which falsely claims credit for sales.
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Media Planning, Programmatic Buying, and Targeting The digital space requires sophisticated networks to buy and place ads efficiently.
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Networks vs. Exchanges
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Advertising Networks: Act as intermediaries that group websites together and sell pre-segmented ad space at fixed, negotiated prices (e.g., Google Display Network).
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Advertising Exchanges: Open digital marketplaces where ad space is bought and sold directly between publishers and advertisers using real-time bidding (RTB) without an intermediary.
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Programmatic Advertising and Real-Time Bidding (RTB): Programmatic advertising automates ad buying using algorithms. The RTB process happens in milliseconds:
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1. A user visits a website.
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2. The publisher's Supply-Side Platform (SSP) lists the available ad space.
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3. The SSP analyzes the user's cookies (demographics, interests).
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4. The advertiser's Demand-Side Platform (DSP) reviews this data to see if it matches their target.
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5. The DSP automatically places a bid based on the user's value.
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6. The SSP picks the winning bid.
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7. The ad is displayed to the user instantly.
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Granular Targeting Strategies
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Online Behavioural Advertising (OBA): Tracking web activity to deliver tailored ads. Due to privacy concerns, alternative tracking like first-party data and unified IDs are replacing third-party cookies.
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Contextual Targeting: Placing ads based on the actual content of the webpage being viewed (e.g., running shoe ads on a marathon article), which is privacy-friendly and highly relevant.
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Retargeting: Serving ads to users who previously visited your site but left without buying. Dynamic retargeting even shows the exact product the user viewed.
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Lookalike Audiences: Allowing the platform's algorithm to find new users who share the exact characteristics and behaviors of your best existing customers.
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Budgeting and Pricing Models Advertisers choose a pricing model tailored to their specific campaign goals:
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CPM (Cost per mille): Paying per 1,000 impressions. Best for mass brand awareness.
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CPC (Cost per click): Paying only when an ad is clicked. Best for driving guaranteed website traffic.
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CPA/CAC (Cost per acquisition): Paying only when the ad leads to a direct sale. More expensive but guarantees high ROI.
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CPL (Cost per lead): Paying when a user submits contact details, like signing up for an email list.
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Chapter 9
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Pre-testing
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Pre-testing refers to testing advertising before it is released in the media to gather consumer feedback and improve its effectiveness.
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Main purposes:
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Assess whether an advertisement can achieve its communication objectives.
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Determine whether the creative idea will be accepted or rejected by the target audience.
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Identify necessary changes to improve the advertisement before launch.
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Select the most effective concept or execution among multiple ad versions.
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Pre-testing can be conducted using:
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Unfinished ads (e.g., storyboards or animatics)
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Finished advertisements
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Overall, pre-testing helps identify strengths and weaknesses of an ad and ensures it supports the brand’s objectives and positioning.
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Communication Effects Tested in Pre-testing Advertising should guide consumers through persuasion stages before they purchase a product or become loyal to a brand.
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Pre-testing evaluates whether ads generate the following intermediate communication effects:
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Attention
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Information transfer and understanding
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Correct brand positioning
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Brand and message recall
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Correct attribution of the ad to the brand
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Message acceptance
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Credibility
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Interest
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Positive emotional reactions
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Activation
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Purchase intention
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Campaigns often contain multiple executions of the same strategy. Pre-testing helps determine:
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Which execution is most effective
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Which should receive higher media frequency
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There are three main categories of pre-tests.
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Category 1: Internal Evaluation: Methods used internally by agencies or advertisers.
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Checklists
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Readability analysis
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Category 2: Communication Effects: Testing how consumers perceive and react to advertisements.
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Physiological tests
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Recall tests
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Direct opinion measurement
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Indirect opinion measurement
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Category 3: Behavioural Tests: Tests measuring actual consumer behaviour.
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Trailer test
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Split-scan test
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Internal Evaluation Methods:
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Concept Testing: occurs before the ad is created. Marketers evaluate different communication concepts and choose the most promising ones.
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Pre-test Checklist: ensure that an advertisement is complete, appeasling and consistent with strategy
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Readability Analysis: Advertising text should be simple and easy to understand, because consumers often pay limited attention.
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Characteristics of good advertising copy:
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Short sentences
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Short and familiar words
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Concrete language
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Personal references
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Communication Effects Testing: These tests measure how consumers react to advertising.
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Physiological Tests: measure bodily reactions to advertising stimuli.
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Two main purposes:
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1. Measure arousal (nervous system activation)
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2. Measure the likelihood that an ad is noticed
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Common physiological methods:
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Pupil dilation: Measures changes in pupil size & indicates emotional arousal
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Galvanic skin response: measures skin moisture, indicates emotional activation
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Electroencephalography (EEG): measures electrical brain activity; can indicate memory encoding
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Functional magnetic resonance imaging (fMRI): measures brain activity and metabolic changes, shows which brain areas respond to ads
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Limitations: expensive, complex, difficult to interpret
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Indirect Attitude Measurement: Implicit Association Test (IAT): measures automatic associations between concepts and attributes.
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How it works: Participants react quickly to combinations of images, words, logos and colors. These are paired with attributes such as likeably, dirty, positive, negative. Faster reaction times indicate stronger associations
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Applications:
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Testing sensitive issues
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Detecting hidden attitudes
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Measuring unconscious reactions
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Examples: environmental behavior, gender stereotypes, racism
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Results help improve models used in ads, arguments, visual-text combinations, appeal types
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Attention and Viewing Tests
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Tachistoscope Test
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Ads are shown for very short periods
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Respondents recall visible elements
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Most recalled elements are considered most effective
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Eye Tracking: Measures where people look and how long
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Recall Tests: measure memory for advertisements.
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Limitations: Tests memory ability, not just ad quality; Influenced by product involvement; Often conducted too soon after exposure
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Direct Opinion Measurement: Consumers evaluate ads using rating scales.
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Main disadvantage: Ads are evaluated in an artificial environment, which may cause the consumer jury effect.
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Behavioural Pre-tests: measure actual behavior rather than attitudes.
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Theatre Test
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Participants: Choose a product before viewing a programme. Watch a programme containing the test ad. Choose a product again.
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Changes in choices indicate advertising impact.
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Limitations: expensive, artificial situation
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Trailer Test (Coupon Test)
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Procedure: consumers are divided into experimental and control group. Experimental group watches a commercial in a trailer near a supermarket. Both groups receive coupons. Purchases are tracked via store cards.
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Split-scan Test: uses split-cable TV technology.
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Different groups see different ads, consumer purchases are tracked through store cards
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Advantages: measures actual purchase behavior, allows controlled experimentation, produces single-source data
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Limitations of Pre-testing:
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Although valuable, pre-testing has several limitations.
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Major limitations:
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Only selects the best ad among those tested, not the best possible ad
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Ads are often tested in an artificial environment
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Consumer jury effect
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Tests often occur too soon after exposure
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Repetition effects cannot always be measured
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External influences (e.g., competitors) are ignored
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Pre-tests cannot reliably predict sales impact
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Psychological Limitation: System 1 vs System 2 Thinking
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Consumer decisions often rely on two thinking systems:
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System 1 thinking
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Fast
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Emotional
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Intuitive
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Based on heuristics
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System 2 thinking
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Slow
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Analytical
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Deliberate
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Many pre-tests rely on System 2 thinking (survey responses), while real-world decisions are often made using System 1 thinking.
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Post-testing
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A post-test evaluates the effectiveness of an advertisement after it has already been placed in the media. Post-tests are only meaningful if there is a benchmark, such as:
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A before measurement
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A control measurement (e.g., competitor ads)
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This allows marketers to determine how effective the advertisement actually was.
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Main types of post-tests:
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1. Measurement of exposure: how many people reached by ad
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Common exposure metrics:
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Net reach: number of individuals exposed to ad
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GRP (gross rating points): total exposure relative to audience size
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OTS (opportunity to see): number of times people had the chance to see the ad
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Often used after media placement and during media planning
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2. Communication effects tests: how consumers process and remember the advertisement message
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Recognition tests: measure whether consumers recognize an ad when they see it again -> ads must at least be noticed to be effective
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Starch test (print advertising): measures recognition of print advertisements
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Consumers who read a magazine are interviewed
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1 non-readers: percentage who do not remember seeing the ad
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2 noted: percentage who recall seeing the ad
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3 seen/associated: percentage who remember the brand or product name
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4 read most: percentage who read at least half the ad
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Limitation: results depend on respondent honesty
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Masked identification test: part of an ad is hidden and respondents must identify whether they recognize the ad or which brand it belongs to
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Scores: recognition score, correct attribution score, brand confusion, useful score = (recognition x attribution) / 100
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Recall tests: measure what consumers remember about ads without seeing them again
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Unaided recall
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Aided recall
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Recognition scores are usually higher than recall
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Gallup-robinson impact test (print ads): respondent sees cover; asked if read the issue; given cards with brands; asked which they remember seeing; additional questions
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Proved name registration: % who remember ad without seeing it during test
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Idea penetration: % who understood main message
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Conviction: % who intend to buy or use product
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Day-after recall test (common for TV and radio)
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Triple-association test: measures learning of brand associations
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Respondents are given product category/benefit or selling proposition -> identify brand associated with it
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3. Behavioral measurement: measure actual consumer actions rather than memory or attitudes -> especially useful for direct-response advertising
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Enquiry test: ads include coupons: number of returned coupons indicates how many people saw ad and interest.
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Netapps method: compares consumers exposed to ad to consumers not exposed; both groups are analysed for purchasing behavior -> % of purchases caused by ad
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Limitations:
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Respondents may lie, exaggerate, or guess
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Ads in a campaign are easier to recall than stand-alone ads
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In integrated campaigns, isolating the effect of a single ad is difficult
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Recognition or recall does not guarantee purchase behaviour
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Results are influenced by product involvement
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Time between exposure and test affects recall
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Emotional or complex ads may be harder to recall than rational ones
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