Advertising & IMC Process of preparing and integrating a companys advertising efforts with other integrated marketing communication

efforts. Wheel of promotion- promotion mix

Personal Direct Selling Mktg 2.5 2.5 PR 2.5 Events 2.5

Sales Promo 45
Advertising

45

Steps in ad campaign mgmt. Review communication marketing analysis (from C4) Competitive analysis Opportunity analysis Target market analysis Customer analysis Positioning analysis

Establish advertising portion of IMC objectives Review communication budget Select media Discuss creative strategy with agencies

Advertising goals To inform To persuade To support other mar-com efforts Encourage actions Build brand image - Top of mind - First choice Create awareness Motivate and prospect

Find out more about products Induce to try Educate and convey information Project corporate image Project new brand image Bring about immediate sales Offset competitor claims Remind people to buy Stimulate impulse sale Build familiarity of trademarks of packaging for easy recognition Secure universal distribution Help sales people in getting new accounts and larger orders Establish reputation platform for launching new brands or product lines

DAGMAR Approach
D A G M A R Defining Advertising Goals (for) Measured Advertising Results

This approach was proposed by Russell H. Colley in 1961. According to DAGMAR Model the ultimate objective of advertising involves a communication task, intended to create awareness, impart information, develop attitude and induce action. Advertising objective is to carry a consumer through four levels of understanding: From unawareness to awareness - consumer must be aware of product or company, Comprehension - what the product is and its benefits, Conviction - mental conviction to buy the product, and Action - finally buy the product. Communication process in DAGMAR approach Awareness: Before the purchase behaviour is expected from target audience it is necessary to make the audience aware with the product or company. The initial communication task of the advertising activity is to increase the consumer awareness of the product or offer. Comprehension: Only Awareness is not be sufficient to stimulate a purchase, sufficient knowledge and information about product or organisation is necessary. This step involves the target audience to learn something about product, organisation, or offer. Here communication task of advertising activity is to make consumer learn about product - product characteristics, benefits, or uses. Attitude or Conviction: At this step a sense of conviction is established. By creating interest and preference, buyers are moved to a position where they are convinced that a particular product in the class should be tried at the next opportunity. At this step communication task of advertising activity is to mould the audiences beliefs about the product and this is often done through messages that demonstrate the products superiority over a rival or by talking about the rewards as a result of using the product. Action: Finally, communication must encourage buyer to engage in purchase activity.

HOCE Theory Hierarchy of Communication Effects 1. 2. 3. 4. 5. Unaware Awareness Understanding (comprehension) Conviction (intention) Behaviour (action-purchase)

Five parameters for ad objective setting 1. 2. 3. 4. 5. Presence of specific goal (in writing) Measure used to measure (definite) defined Starting point Defined target audience Fixed time period

An example here is of an airline that decided to improve awareness among audience, improve its image, improve preference among target audience etc. Audience chosen is experienced, sophisticated and frequent travellers. Measurement procedure used was that airline operator has designed 3 questions to get to know the feedback of the target audience. Relating to awareness: What airline can you name that offers all jet services to Mumbai? Relating to image Which of these airlines would you rate as outstanding on the following characteristics? Decor Comfort Cuisine Speed Baggage (Baggage handling)

Relating to preference On your next overseas trip, which of these airlines would you seriously consider and why? Starting point was a survey; whose results showed that airline under test was lacking both awareness and image.

Results Sr. 1 2 3 Goals (Objective) Create awareness (Have heard about company) Create image (Luxury or jet service) Preference (Would seriously use for next trip) Before Ads 38 9 13 After 1 year 52 24 21

Here ads have succeeded in their objectives. Five decision areas in ads 1. 2. 3. 4. 5. Define ad objectives Understand target market considerations Design ad message or creative strategy Finalise media or media strategy Ad budgeting and measurement of ads

5M concept 1. Market or target audience 2. Message 3. Media 4. Mar-com objectives 5. Measurement Five basic functions of ads Precipitation Persuasion Reinforcement Reminder Value added functions General awareness Emotional appeal to buy Making people feel good Top of mind awareness Add symbolic value to brand through positioning strategy

Types of advertising By Audience Geography based - International - National - Regional - Local Market distinction - Consumer audience - Business audience Dealers Manufacturers By Advertiser Institutional Government Business houses Retailer chains

By Intention Institutional (PR advertising) Product - Primary (create demand for generic product e.g. eggs) - Secondary (brand specific)

Marketing to children (good or bad) Factors to consider: Market size Building brand awareness Mental capacity of children Role of parents

Advertising industry structure

ASCI GoI Regulators Competition Censor Board Ad Goals

Facilitating Institutions Ad Agency Media Market Research Firms Want to reach

Target Market

How advertising helps in brand building

Ad Exposure

Awareness (Familiarity) Info about brand attributes Creation of brand image Association feeling with brand Linkages with peers & experts Reminders or inducement about brand trial

Brand Attitude Formation Brand Purchase

Relative position of promotional methods Promotional Method

Advertising

Scope

Cost
Relatively inexpensive per contact Nil

Advantages
Allows expressiveness Allows message control High degree of credibility Immediately gains attention Has instant results Permits flexible presentation Gets instant response

Disadvantages

Mass Comm. Mass Comm. Mass Comm.

Hard to measure results Not easily controlled as it is hands of others Easy to imitate

Publicity Sales Promotion

Costly

Personal Selling

One to One Comm.

Expensive per contact

Costs more than others

Promotional efforts & buyers readiness stage Stage Awareness Comprehension Conviction Behaviour (Ordering) Reordering (Post Purchase) Sales Promotion Low Low Medium Very High High Personal Selling Very Low Low High Very High Very High Advertising Very High Very High Medium Low Low

Matching intensity of distribution and promotion Distribution Type Intensive Selective Exclusive Sales Promotion Most Medium Least Personal Selling Least Medium Most Advertising Heavy (FMCG) Heavy (Gift items) Medium (SMCG)

Creativity & copywriting Seven stages of copywriting (creative process) which is an art of generating divergent facts and figures & ideas with a sense of humour to move the consumer through buyer readiness stages are mentioned below. 1. 2. 3. 4. 5. 6. 7. Orientation Preparation Analysis Ideation Incubation Synthesis Evaluation

Orientation is the identification of the problem to be solved or key fact finding stage. Preparation is the step of collecting pieces of information about the problem & immersing oneself in that information in terms of: Knowledge about product Company Competitors Target customers

Analysis is called left brain thinking. It involves organising the information collected earlier and here the technical details, market dynamics, competitive trends and other forces that affect the success of ad you are about to create are analysed. Ideation is done with head full of facts and information leading to knowledge; we generate ideas as paths by putting the brain to work as part of successful ad. Incubation is done once the mental activity is over in step 4. We give the mind a break from ideas and allow the subconscious mind to play with the various ideas already generated to look for connections and insights. Synthesis is where we fit the pieces of ideas together to create a big idea that makes sense and toss out other thoughts that do not seem to fit. Evaluation is the final stage and conducted on the final ideas for their relevance, originality, richness and quality to capture attention which will separate good ones from bad ones.

Appeals used in message writing Price or value appeal Quality appeal Testimonial appeal Ego appeal Esteem appeal Fear or anger appeal Sensory appeal Novelty appeal Love and social acceptance appeal

Approaches to message writing Comparative ad (two types of comparison) - Implicit (rival brand implied but not named) - Explicit Two sided vs. One sided argument: Message is one sided if only your positives are shown. It is 2 sided if you show many positive but also some negative aspects of your product. Two sided messages are of course more credible. Inoculative advertising: It is warning given to consumers not to switch to rival brands just on the basis of telemarketing or big promises in the form of savings. The goal is to build a restraint attitude. Reputation advertising: here negative attribute is highlighted and consumers are trained through ad exposure to start refuting certain beliefs about competing brands. Emotional creative approach: The message influences emotions by using rational as well as emotional appeal. Distraction approach: Humour can be used for distraction or anything that goes against the values and beliefs. It can also help ion distraction. Self persuasion approach: Here we let the product speak for itself. Incompleteness approach: Also known as teaser approach, here an incomplete or puzzling message is given and in the desire to complete the message, the recipient is actively involved and so remembers the ad completely. Use of cognitive dissonance: Information or message that is given is in conflict with the established system of ideas, beliefs and values in the mind of the consumer which results in anxiety and discomfort. Effort is made by the respondent to reduce the anxiety or discomfort which is shown in the ad through some promises of benefits which will accrue when one will buy and use the product. Fear appeal types: Threat of removal of affection of friends and family, loss of respect, esteem or status. Candor approach: This is the honesty to badness approach. The message here treats the consumer as an intelligent being and openly and frankly admits the

shortcomings in their product and later on goes on to explain the reasons for the same. Use of endorser: The endorser helps in transferring the symbolic property possessed by him or her to the endorsed brand and increase the ad readership as well induce positive attitude change.

Themes in advertising Utilitarian: Emphasises the utility or usefulness of product Focus theme: Directed towards a desired specific segment Informative: Gives info about the brand Achievement orientation: Besides product features, ad also shows the award trophy or any other distinction won by the company Descriptive and projective: Combining of information and projecting image of the advertiser becomes descriptive and projective Non specific- The theme is vague, practical people bear it, busy people ride on it, industries depend on it, and smart people back on it New idea, scheme, product and service theme: New product launches use this theme

Copy Writing Solve the prospects problem

Ring the changes in successful idea

Your ad copy should be: Empathetic Effective Convincing

Ad Headline Headline is one which triggers the response, which helps in grabbing the attention and making the reader to be convinced that there is a need to read the copy. It generates: Attention Interest Involvement

Different Headline types Question headline: Asks a question Paradoxical headline: Creating a paradox and in the ad, going on to solve the paradox. For example the headline said, If you feel like a dog, count yourself lucky! and then the ad copy goes on to reveal that dogs do not eat junk food, or smoke, or drink, your pattern of living can count to that of the dogs life only when you use Horlicks! Story appeal headline: Where facts about the product are given Narrative headline: Narrate some incident how using Fair and Lovely a girl became air hostess Quote headlines: It is essentially an endorsement USP headlines: Where benefits are endorsed for headlines Punch headline: Uses magic words like free, new, improved, sale, etc.

Media Planning There are two important decisions in media planning: Set media objectives Develop media strategies to accomplish them

Setting media objectives (2 steps) Define target audience: Be very clear about target market segment to be reached & then select media vehicle for that segment Decide about message distribution (media scheduling): After target market identification, there is a need to balance reach and frequency within a given ad budget i.e. to calculate the total message weight of the campaign

Dispersion strategy >> Reach (2-3 OTS) >> Awareness (Coverage) Concentration strategy >> Frequency (High OTS) >> Opportunity to see Reach Number of different people that can be reached at least one time during the period, e.g. if 6000/10000 people who are young adults between the 13-18 year age who tune into a particular TV program once or more times in 4 week period then reach is 60%.

Frequency Number of times a person is to be exposed to the same message in a given time period e.g. out of 6000 people if 3000 people watch daily TV program 4 times during 4 week period & rest 3000 watch it 6 times in 4 weeks the frequency is: Freq = (3000 X 4) + (3000 X 6) =30000 30000/6000 So frequency = 5 times Researchers have proved that three exposure effects is must for an ad to be effective. 1 exposure demo effect 2 exposures reminder effect 3 exposures purchase effect or repurchase effect

Brands with 2-3 exposures are seen as winners over brands with only 1 exposure. Media scheduling is all about deciding between dispersion strategies vs. concentration strategies while within a given budget.

Four steps of developing media strategies Determining geographic score/scope: Find out the geographic area with availability of product and promote in those areas only i.e. back or match promotion with distribution Scheduling the message: This includes 3 decisions: - Timing: Decide what time in day or what month by taking cues from audience behaviour patterns - Size of message- Bigger size message may be better but you may prefer to give up size in exchange for higher frequency - Continuity of schedule: This is of three further types: Bursting: Regular ads during a period Pulsing: Uneven scheduling of ads Flighting or seasonal: Increase ads during a season Selecting the media (scheduling the media): Two decisions are involved here: - Know the type of media available - See the effectiveness of each mode in advertising Cost efficiency

Mode/media for advertising Media class Print Electronic Outdoor Direct mail Media vehicles Newspaper, magazines, journals, folders, product literature TV, radio, internet, home video, voice mail, mobile phones Billboards, hoarding, balloons, transport ads e.g. bus ads, neon light signs etc. Catalogue, circulars, personal emails & letters, discount coupons & price lists etc. Media options The Times, Top Gear BBC Boards

Determining the effectiveness of media

Mode TV Radio Newspaper Outdoor PoP Mailers Magazines Life VS Low L H H H H News value VH Medium M L M M H Flexibility VH Moderate L H L Moderate H Cost VH H M M L L M Visual Impact VH L L M L L H Colour VH NILL H H H H H Processing Time VH H L H L M M Reach VH VH H M M Low M Frequency VH H L L L VL L

Find out the cost of each medium and compare it with the media Gross Rating Point (GRP) to determine its effectiveness in a budget. TV and radio cost per second, Print ads cost per line or column centimetre. Costs are translated in terms of cost/1000 to standardise them for comparison, e.g. Budget is INR 10, 00,000 Cost of average quality/exposure is 5 Therefore no. of exposures = (10, 00,000 /5) 1000 = 20, 00, 00, 000 Frequency is 10 therefore ad can reach Number of people = 20, 00, 00, 000 / 10 = 2, 00, 00, 000 If media GRP is high, cost is also high.

Ethics in advertising Avoid deception and misinformation Avoid puffery Avoid stereotypes Avoid racial issues Do not advertise controversial products Avoid biased ads Be mindful of the effect of your ads on the children Do not give terror related ads Avoid ads projecting unrealistic and idealistic standards Avoid diabolical ads Avoid ads with vulgarity and obscenity Do not exaggerate product features Avoid comparative advertising unless you have proven test results Dressing in ads should be moderate Ads should not be irritating Ads should not put undue influence on the audience Ads should not affects any 1 group of audience Do not use unparliamentarily language Avoid imitation of the unbelievable Put warnings in ads of unhealthy products Ads should not create violence Ads should be transparent and respectful of citizenship, all stakeholders, principles of fairness an honesty

Examples of Ad Agencies Ogilvey & Mather Hindustan Lowe Lintas Interpublic Agency Mudra and DDB Needland FCB Ulka Rediffusion Densu McCann Ericson Contracts WPP MSS Bozel- Pro

Indian ad agencies have 20,000 crore revenue.

Types of Ad Agencies Ad agency is an organisation of professionals which provides creative and business services to clients in planning, preparing and placing their promotional programmes. Full service Creative boutique Innovate Interactive In house Promotion agency

Full service agency offers full range of marketing promotion and communication services including research, planning and preparing advertisements, placement of ads by selecting media etc. They even provide non ad services like strategic market planning, sales promotion, PR, package design etc. Creative Boutique only provides creative services like concept development, copy writing and artistic services. Innovative agencies are taking lead in bringing about innovation in ads with regard to products, features, and medium to be used for ads and areas in which to advertise. They keep on exploring the changing trends and changing markets (lifestyle). They are more proactive in approach and keep on guiding and advising clients. Innovative agency helps advertiser prepare communication for new media e.g. internet, kiosks, CDs, and interactive TV etc. They mainly focus on banner ads and web development. They also have active social media presence. In house agency refers to firms; ad department responsible for planning, preparing and placing the ads. Company hires their own personnel and use the in house talent that is available for making ads. This makes it very cost effective. Promotional agencies specialise for creative promotion activities like direct marketing, sales promotion, PR, and is responsible for personal or institutional selling. Types of Ad Agency Services Account services Identify brand benefits Brand positioning Develop complete promotional programme Knowing target market Indentify brand value Design positioning strategy

Market research services Research that helps in understanding the ad promotion objectives and how client can be benefitted Conducting research to express the values of company brand in most interesting and memorable way Conducting research to help produces and directors to take up creative ideas who can then turn the ideas into effective ad or event materials

Media planning and buying Act as media planner, accept the challenge to deliver clients message in the most efficient and effective manner Be a media buyer, use various software tools to help clients buy most effective media at least cost Act as a media researcher to keep on doing research about what are the new media for ads

Administrative services Like other businesses, ad agencies also have various departments like HRM, Billing and Accounts etc. which needs to be coordinated as part of administrative services. Account planner services Helps in coordinating the research effort of the client to ensure that research input is included at each stage of development of campaign material Agency revenue models Agency gets paid in four possible ways: Commission Mark-up charges Fee Pay for results

Commission is the traditional method of agency compensation where agency gets 1015% of the amount of money advertisers spend on media. Mark-up charges are additional charges for a variety of services that the agency pays for purchasing them from outside. It is added to commission and charged to client. Various outsourced services can be photography, production, printing, research etc. Fee system is where agencies are compensated by advertised on an hourly rate for different services. In pay for results, agency fee is based upon achievement of desired results.

Types of copy testing Copy testing measures the effectiveness of an ad. Pre testing Prior to running ad, AV Post testing After ad has run, feedback, query, sales figures

Five powers of the ad are to be tested: Attention strength Read through strength Cognitive strength Affective strength Action strength

Pre-testing for print media Consumer jury test - Order of merit - Paired comparison Recognition test Recall test (Gallup recognition test) - Aided - Unaided

Lab based tests Eye camera test Pupillometre test Brain wave test CONPAAD (Conjugative Programmmed Analysis of Advertising) Galvanic Skill Response (GSR) Heart beat test Facial expression Muscle movement Voice pitch analysis test

Pre-testing for AV media Day after recall test (DAR) In-home projection test Trailer test Theatre test Live telecast test

Post testing Coupon stimulated purchasing Split run test or inquiry test Split cable testing Single variable experimental design to measure sales effect using experiments

Consumer jury test Consumer jury is a panel of around 20 consumers selected from target audience to evaluate alternative ads shown to them by asking some questions like: Which of these ads interested you most? Which of these ads provoked you to buy? Which of these ads received your attention first? Which of these ads are easily readable and understandable? Which of these ads are credible? Which of these ads would influence you to buy the product?

There are two methods of consumer jury test: Order of merit (Ranking System): Six ad copies can be tested with accuracy by this method. It involves ranking of the ads according to the preference of consumer jury on the scale of 1-5, where rank 1 is given to the most preferred ad copy and 5 to least preferred one. Later ranks are converted to score by giving 5 point5s to rank 1 and 1 point to rank 5. This ranking is done by a panel of 20 consumers. Ranks are converted to score by points system and ad with highest point score is considered the best. Paired Comparison: In paired comparison, 2 ads are compared. Research has proved that up to 10 ads (5 pairs) good comparison is done but after that the consumers efficiency falls. Number of comparisons= n(n-1)/2 Where n= number of ads A A B C D E ? ? ? ? B ? ? ? ? C ? ? ? ? D ? ? ? ? E ? ? ? ?

For consumer 1, the comparison of the 2 ads is done at a time and the winner is listed, if 5 ads are compared, number of comparisons to be made by consumer is 10. Once the comparisons are done, for each ad the number of times it was winner is noted and written below it for consumer 1. Similar exercise is done for consumer 2 and so on till comparison 20. A total score for every ad under comparison is noted as to how many times it has been the winner. The ad which has been the max winner with most ad is the best ad and is finally selected.

Portfolio test Recognition test: These have been designed by Daniel Starch in 1923. In this test a regular magazine is taken with a previous issue of the magazine and dummy ads which are under test for a brand are mixed with other regular ads in the magazine. The target consumers are respondents are taken through magazine for each ad under test, they are asked about if they saw the ad in the issue. For each test ad 3 measures are generated: - Noted Score= percent of the readers of who remember seeing the ad - Seen Noted Score= percent of the readers who saw any part of the ad that represented the product or the brand - Read Most Score= percent of people who read more than half of the ad Recognition score is the minimal test every ad should pass and ads with top 3 scores are considered best. In other words, recognition shows the involvement of consumer segment in brand ads and variables like size, colour, frame, position of ad and magazine nature influence the most. Recall test (Gallup and Robinson test): This test was developed by George Gallup in 1940. In this test, a magazines previous issue with regular ads is taken and dummy ads, i.e. ads under test are included in the magazine. The magazine is then given to around 150 readers, who are regular readers of the magazine with an advice to read it in normal manner. After a week the readers of the magazine were asked to recall ads of the brand under test to find out the recall scores. There are two variations of this test from this point onwardsaided recall and unaided recall. - In the aided recall test, respondent/reader is prompted by showing picture of the ad with name blanked out. - In unaided recall, only the brand name is given and the reader is asked to recall the ad. Two scores are obtained: - Percent proven recall: percentage of readers who could recall something about the commercial, may be the storyline, may be the visual or may be the message itself - Percent related recall: percentage of readers who reported to have seen something of ad but could not play back a very specific element of the ad These recall scores are compared with industry norms of ads of similar product, based in which the ad effectiveness is measured. This can be used for print radio and TV ads with difference being that in TV commercials effectiveness, it is Day-After-Recall (DAR) where the TV programme viewers are interviewed by phone 24 hours after the commercial is aired (as opposed to a week in print media). In TV the viewers are asked to recall what was said, was shown or what the main idea was.

Other tests for TV and broadcast ads In-home projection test: Movie projectors are taken to the consumers home for testing the commercial. Target consumers are shown the commercial or ad and questions are asked about the ad to note the changes before and after the exposure. This helps advertiser understand weak and strong points of commercial and accordingly improvements are made. Trailer test: Two groups of individuals are taken which are identical consumers and they are invited to particular place where the test is to be conducted. One group called the test group is shown the commercial for the product at display, and they are asked to purchase from the displayed brands by giving them incentives like discounts. Second group, also known as the control group is not shown the test commercial but are invited to buy or purchase from displayed brands using discount coupons. Redemption rate of the coupons slightly gives an idea about effectiveness of commercial or ad and effect and effect of other variables is nullified thru control group purchase. Theatre test: An audience group is made to see the programme to be telecasted in a particular theatre and they are administered with a questionnaire. This group is give free tickets of the theatre where test ads are shown. On viewing test ads, they are asked to fill the questionnaire to assess brand appeal, belief, product, information shown and theme etc and on the basis of this, ads effectiveness is determined. Live telecast test: Live telecast of test ads are made to viewers and later they are interviewed to know their reaction as to what was shown, was the visual or illustration tempting, the message was convincing to what extent, all of which help in judging the commercial effectiveness.

Methods of testing effectiveness of an ad post ad run Coupon Stimulated Purchasing: Two groups of 250 shoppers are made, one being the test group and other being the control group. Test group is exposed to ad 5-6 times on TV/radio commercial. Control group is not shown the ad. Bothe groups are given packet of coupons including 1 coupon of test brand which can be redeemed in a nearby market. Purchase of shoppers is tracked by scanner data. Measure of purchase interest is percentage of people choosing 1 or more coupons of test brand. Split Run or Inquiry Test: Two different versions of ad which were created are placed in 1 magazine and positioned in a manner that ad version A & B are in the random half of the magazine. Each ad has a toll free number and coupon with a unique code to note viewer response. The ad that generates higher enquiries or leads is tested to be most effective. Split Cable Testing: 3000 households are taken from target audience and divided into matched groups of 300 each. Belonging to test cities which are 10 in number and all having TV sets at home. The TV sets are connected to a channel on which test ad commercial is shown and a device is connected to TV sets to monitor which channel is tuned and the ad is shown on the channel. After the panelists are shown the ad they are asked to visit a store to make purchases. The purchases are closely monitored in store using web cams etc. This gives accurately the measure of effect of an ad on short term scale. Persuasion Test: Four geographically dispersed locations are taken with a sample of 400 people each to a total of 1600 respondents. Selection is done on phone and once selection is complete all 1600 are asked to come to a controlled location to preview a TV programme. They are asked to sit in groups of 25, making total of 16 groups for each location. They are then asked to sit in front of a TV monitor. For the first 30 minutes they are made to view a variety programme with 4 professional performers. During this half hour, 7 commercials are shown including test commercial in following pattern: Perf. P >> Perf. Q >>T>C>T>C>T>>Perf. R>>Perf. S Where T= Test ad and C = Other Commercial After programme is viewedby these 16 groups of 25 each, unaided brand recall is done from the respondents to find out the clutter/awareness score i.e. the % who recalled the brand advertised through test commercials. Test commercial shown 4 times are again exposed for a second time but with different pattern as follows: Prog. 1 >> T >> Prog. 2 >>T >> Prog. 3 >> T >> Prog. 4 >>T Attitude shift measure is obtained in terms of what was the recall rate with the earlier pattern vis a vis the recall rate with different programme pattern and if there has been a substantial change in attitude by showing the test ad in the form of pattern 2, it shows that the test ad has changed the perception and influenced the consumer.

Measuring Sales Effect: Single variable experimental design is used here. The following steps are involved: - Four markets are chosen, totally isolated from each other - Two months time is considered - Two groups of consumers are taken, which are identical in nature, one is control group, second is test group - The advertising of commercial under test is proceeded for 2 months and for next 2 months, the advertiser adds the TV ad in or test ads in TV on 2 markets and in rest 2 it is not shown. The sales are recorded for each. Two months Two months (First period) (Second period) No spot test ad Spot test ad No spot test ad No spot test ad Comparison of Sales Data Test Ad -sales before Spot TV ad- sales during 750000 80000 600000 630000 % Change 60000 = 8% Actual change because of spot ad =3% 30000 = 5% 22500

Test Market Results Test Market Control market

Actual change which can be noted is 3% of 750000 because of the test ad compared with the cost of doing the TV ad and it is assumed then only there has been a positive return of 12500 and it can be inferred that ad has influenced positively on people.