Advertising Evaluation.

The Challenge

  • How did the campaign perform in terms of driving perceptions of customers and non-customers?
  • Was the budget large enough to have an effect on perceptions, but more importantly sales?
  • Which media channel or combination of channels would give them the best return on their investment?
  • How could they maximise their media spend to achieve the maximum return on investment?
  • How many exposures are required to generate sales?

Our client was running an advertising campaign consisting of radio, TV and poster in 3 bursts but not all bursts with the same media channel mix. The aim of the campaign was to attract new customers. Due to the economic situation advertising budgets were relatively small and they wanted to understand a number of things

What we did

We fielded a survey immediately post each of the campaign bursts to customers and non-customers to obtain an evaluation of the campaign in terms of driving perceptions. Subsequently we used customer and company sales data to understand the impact of the campaign on sales and to model the optimal media mix for future campaign purposes. Variables that were also included were other marketing activities such as DM campaigns, competitor activity, economic factors, price changes and so on.

The outcome

The market research evaluation showed that the campaign had a much greater impact on perceptions of customers than non-customers, thus underperforming among the target group. Moreover, whilst the message was clearly understood it was not sufficiently differentiating the client from competitors. Among customers the campaign perceptions improved with each exposure but more noticeably with the third burst. We recommended researching a more motivating message with non-customers prior to the next campaign and testing of the creative.

In terms of the commercial value, the campaign generated around £5m incremental sales, meaning the client achieved an ROI of over 800% on their market research investment.  The incremental sales were  generated almost evenly from existing and new customers. However new customers had a lower than average spend and generally didn’t have a main supplier, meaning they would be far less likely to develop into a loyal higher spend customer. Although all media channels produced a positive ROI, this was lower for radio and poster. Thus radio and poster were recommended as suitable support acts with most of the budget best spent on TV. The latter two also had the decay rates of 50% and 100%, meaning that whilst they instigate trial they result in little or no repeat purchase behaviour. The timing of the exposures should have been more closely together in order to achieve the optimal accumulative sales effect. In addition we recommended 3-6 exposures to optimise revenues in relation to advertising cost, so 3 exposures was the minimum required in order to maximise the ROI.