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The effectiveness of advertising – How to demonstrate it to client?

Checking the effectiveness of advertising is an extremely important issue. The cost of advertising is often very large. In the same way, the 30-second commercials on television that cost tens of million, or just a quarter page color print of a newspaper published nationally and can cost up to several million. Hence, the enterprises as well as the “investors” need to know the ROI for their advertising to measure in some ways.

According to Zyman (1999), he asserted that the measurement of advertising effectiveness is a difficult job, but not so that people give up. Also, the author indicated that the market research companies as well as some consultants with a reputation around the world have proposed different measures to determine the most accurate close to the effectiveness of advertising.

There are a number of different models for measuring advertising effectiveness (Belch & Belch 2009). It is difficult to accurately measure the effectiveness of a particular advertisement, because it is affected by such things as the amount and type of prior advertising, consumer brand awareness, the placement of the advertising and a range of things about the product itself, such as price and even the ability of the target audience to remember (Belch & Belch 2009).

Miss. Tran Nguyen Kieu My (Account executive) who worked at VBC channel for 2 years with many experiences in term of maintaining good relationships with current clients, looking for potential clients and so on. In early 2012 until now, she takes the new role of media planner at Fifth iMedia which is a one-stop leading digital marketing solution and service provider in Viet Nam covering both the internet and mobile media and their convergence as a main media for both consumers and marketers. To figure out the answer, I had a short conversation with Miss. My and learned many practical experiences through her sharing.

Tran Nguyen Kieu My- Media Planner- Fifth iMedia Vietnam

The clients always care about the result of their advertising investment, so how do you deal with this tough question from clients?The effectiveness of advertising can be evaluated under a variety of different angles” said Miss. My. Also she added to this point that the judgments of the advertising itself that advertisers can use a number of factors: the level of advertising in mind of the audience, the percentage of the audience understanding the meaning of the ad. Additionally, these factors can be used for many different media (newspapers, radio, TV and so on). They can be measured directly by personal interview or a focus group interview. Nevertheless, these elements have the disadvantage that it does not reflect the cost for advertising. With regard to an investor, investment issues are effectively tied to the amount of investment that they spend.

Is there any basic formula to show the index as the client’s requirement?To assess the cost effectiveness for advertising, we can use the index cost per thousand, cost per point”, said My. Also, she clarify her statement that cost per thousand for advertisers know how much to spend money to advertise to gain exposure to 1,000 people, while the cost of a point helps advertisers know how much cost for the an overall review score of the ad (general point rating: GPR = average range x average sample frequency of advertising media).

On the perspective of new media, it is quite different to the traditional media. Miss. My was willing to share that for advertising on the Internet, due to the technical support to the determination of the effectiveness of advertising is more favorable. Such people can know the exact number of people interested in and click on the ads, which can calculate the cost for a customer clicks.

On the other hand, many clients perceived that the effectiveness of advertising needs to be judged by sales, with profits of the company’s achievement. How do you deal with this situation? “Indeed, with the statement mentioned above, advertisers and marketing researchers cannot entirely satisfy the requirements of this type of client”, said My. In addition, she revealed that an advertisement may achieve of interest and the public mind, but it is not necessarily effective in terms of sales and profits. Conversely, there are unfavourite advertisements missing meaning and aesthetic but it can bring the opposite effect, increasing the sales of the company. Similarly, a low-cost advertising does not guarantee that it will bring higher profits.

And how does this issue being resolved? Miss. My shares that after each campaign, people often review sales before and after the advertising, and this is the most basic steps. But it’s not entirely accurate, because actually there are many factors that impact on sales of the company, not just advertising. Miss. My added to this point that many marketers took the mistake that the channel will only play a small role in the success or failure of marketing for a new product. For example, the Vietnam consumer market is completely different from developed countries, with hundreds of thousands of shops for distribution from urban to rural where always meet the daily needs of consumers. So, the system stores nearby are playing a large proportion of the entire distribution system of Vietnam’s market. Therefore, the distribution channels play a particularly important role in the success of every business in Vietnam.

Return the arising issue that has made, the effect of advertising that are required to be present at the margins or not?Actually an advertisement does not necessarily aim is to increase sales or increase profits, and thus its effectiveness is not necessarily reflected in profits”, said My. Additionally, whether the ultimate goal of marketing is to promote business activity and profits, the activities of marketing, including advertising, in each particular stage is not necessarily profitable. Furthermore, she brought the point that stage of launching new products to market, the company aims to gain the brand awareness of products from many targeted customers.  Hence, the company’s goal is to make advertising more customers know about the products. Advertising clearly is considered effective if it can reach more customers and make more customers know and remember the product.

To conclude, Miss. My claimed that “We hope that Vietnamese enterprises before each advertising campaign for their business, please pay more attention to the objectives of that campaign so that we can better appreciate the effectiveness of advertising. Additionally, identifying how the advertising expenses aim for, the agency can avoid complaining about the expensive cost of advertising from its clients.

Word count: 1,082

Ho Chi Minh, 11 May 2012

Posted by Nguyen Vo Minh Nguyen

 

References:

Belch GE & Belch MA 2009, ‘Advertising and Promotion: An Integrated Marketing Communications Perspective’, 8th edn, the McGraw-Hill Companies, Inc.

Zyman S 1999, ‘The End of Marketing As We Know It’, BusinessSummaries, viewed 5 May 2012, < http://www.bizsum.com >.

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