Advertising Research

1. Advertising Research • "Advertising people who ignore research are as dangerous as generals who ignore decodes of enemy signals." • - David Ogilvy, Ogilvy on Advertising, 1983, New York: Crown Publishers, p. 158.

2. Perspectives on Advertising Research • Theory versus application • Advertising research is valuable as a means of primary research regardless of the practical application of the research • Advertising research without practical application is pointless • Although advertising research is a constantly changing field, the traditional tools will always serve the researcher well, so long as the research is adaptive to new media, audiences, and advertising stragtegies

3. Advertising Research Process • Preliminary Discussions and Agreements • Planning and Data Collection • Application

4. Preliminary Discussion and Agreements • Problem Definition • Evaluate alternative choices • Better understand marketplace problem • Increase knowledge of a particular topic • Research Justification • Value obtained exceeds cost of acquisition • High cost implications of wrong decision • Specification of Informational Needs

5. Problem Discovery and Definition • First step • Problem, opportunity, or monitor operations • Discovery before definition • Problem means management problem

6. Problem Definition • The indication of a specific marketing decision area that will be clarified by answering some research questions.

7. Analysis of the Situation Problem Definition Statement of Research Objectives Defining Problem Results in Clear Cut Research Objectives Symptom Detection Exploratory Research (Optional)

8. Ascertain the decision maker’s objectives Determine unit of analysis Understand background of the problem Determine relevant variables Isolate/identify the problem, not the symptoms State research questions and objectives The Process of Problem Definition

9. Ascertain the Decision Maker’s Objectives • Decision makers’ objectives • Managerial goals expressed in measurable terms. • Increase sales (bad) • Increase advertising effectiveness by 10% over the next three months (better) • Increase unaided brand recall in our three lightest markets (Atlanta, Birmingham, and Mobile) by 15% by Q3 2006 (good)

10. Isolate and Identify the Problems, Not the Symptoms • Symptoms can be confusing

11. Symptoms Can Be Confusing Twenty-year-old neighborhood swimming association: • Membership has been declining for years. • New water park - residents prefer the expensive water park???? • Demographic changes: Children have grown up

12. Determine the Unit of Analysis • Individuals, households, organizations, etc. • In some studies, the advertisement or campaign will be the unit of analysis

13. Determine the Relevant Variable • Anything that may assume different numerical values Types of Variables • Categorical • Continuous • Dependent • Independent

14. Typical Advertising Variables • Attitude toward the Ad • Attitude toward the Brand • Ad Recall • Ad Recognition • Purchase Intention • Ad Cognitions • Brand Cognitions • Involvement • Content Related Variables • Execution Related Variables

15. State the research questions and research objectives

16. Basic Questions - Problem Definition • What is the purpose of the study? • How much is already known? • Is additional background information necessary? • What is to be measured? How? • Can the data be made available? • Should research be conducted? • Can a hypothesis be formulated?

17. Problem Statement • Stage 1 is complete when you have a well formulated Problem Statement which contains the three elements: • Problem definition • Justification • Specification of Informational Needs

18. Planning and Data Collection • Identify appropriate type of research • Sampling and data collection • Set budget and timing • Prepare proposal • Prepare research materials • Conduct research • Data collection and preparation

19. Identify Appropriate Type of Research • Secondary versus Primary Research • Secondary: examines preexisting data (internal records, trade assocs, journals, etc.) • Primary: collects original data specific to the research purpose • Qualitative versus Quantitative • Qualitative: appropriate when the “why” of consumer behavior; focus groups, interviews, etc • Quantitative: appropriate when generlizability is needed; structured surveys, content analyses, etc

20. Sampling and Data Collection • Probability Sample • All elements of the known universe have a known chance of being selected, and selection of specific elements from this universe is done purely by chance • Results is strong generalizability • Nonprobability Sample • Does not select elements by chance, but rather by means such as convenience or judgment • Easier to establish sample, but open to selection biases, and therefore less generalizable

21. Determine Budget and Timing • Pert technique (Program Evaluation and Review Technique) • Prepare a list of all activities that need to be completed • Arrange listed items in time sequence • Determine amount of time needed to complete each item • Determine longest temporal path, that is, the maximum amount of time to completion • Determine estimated cost of each task • Evaluate these estimates with management needs in mind, and adjust the activities as necessary • May be necessary to scrap the entire project if scaling back to meet management needs would result in worse information than no research at all

22. Prepare, Distribute, and Obtain Approval of Research Proposal • Executive Summary • Background • Problem Statement • Research Methodology • Cost • Timing • Appendices

23. Finally… • Prepare research materials • Interview guides, questionnaire, etc. • Conduct the research • Prepare resultant data for analysis • Organizing data, data coding if necessary, etc.

24. Application • Data Analysis • Depends largely upon problem statement, research questions, and type of data collected • Presentation of Results • Focus on implications and conclusions supported by the data, not the data itself • Decision Making

25. Break Time!

26. Advertising ResearchTools of the Trade • Content Analysis • Perceptual Mapping • Segmentation • Q-methodology • Experimental Design • Concept and Benefit Testing • Communication Research • Copy Testing • Audience Measurement

27. Content Analysis • Any technique for making inferences by objectively and systematically identifying specified characteristics of messages -Holsti (1969) • Advertising CA • The systematic, objective, and quantitative analysis of advertising... -Davis (1997)

28. Perceptual Mapping • Translate consumers’ brand and product perceptions into visual displays that inform marketers and advertisers as to: • The number of dimensions consumers use to distinguish between brands • The nature and characteristics of these dimensions, and • The location of actual brands, as well as the ideal brand, on these dimensions

29. Segmentation • The process of systematically grouping sets of consumers into groups based on similar characteristics • Segments may be based on demography, geography, psychography, or category and brand related attitudes and behaviors • Syndicated segmentation • VALS2 (psychographic) • Simmons and Media mark (brand usage) • Q-methodolgy • Systematic way of segmentation based on attitudes and perceptions

30. Concept and Benefit Testing • Used to determine the potential of new product ideas and to identify the product benefit or benefits that should be at the core of the advertising message

31. Communication Research • Also known as pretesting, copy development, or diagnostic testing • Conducted early in the creative process to evaluate multiples approaches to communicating the key idea • Comes way before copy testing, and is more focused on approaches to communicating, rather than actual messages

32. Copy Testing • Used later in the creative process to evaluate proposed ads based on their ability to achieve strategic and communication objectives • Often includes measures such as attitude, purchase intention, etc

33. Audience Measurement • Necessary to the advertising industry as much pricing is based on audience measures • In addition to the creative aspects, the media aspects of a message are just as important • A.C. Nielsen, RADAR, Arbitron

34. Your Perspectives? • With which academic could you most relate to? • Any particular issue mentioned that you feel strongly about (either positively or negatively)? • What do you hope to accomplish in the next two days?