Estimation of advertising effectiveness

In the modern market economy, the role of advertising is particularly increasing. The greatest importance it acquires due to the tightening of competition. Against this background, the desire of entrepreneurs to increase the effectiveness of advertising campaigns, using methods to assess the effectiveness of advertising, to obtain information about the appropriateness and effectiveness of the use of these or other means. Together with this, the conditions for the optimal influence on the choice of potential consumers are determined.

Evaluation of the effectiveness of this activity, both qualitatively and quantitatively, includes the study of a complex set of issues related to the analysis of awareness and consumer attitudes to the product before and after the campaign. In addition, questions are related to the direct functioning of advertising.

Most of the methods used for analysis are of an applied nature, and therefore these methods of assessing effectiveness are used only for certain types of shares. It should be noted that agencies spend most of the funds allocated for approbation of applications. However, only a small amount is allocated for the analysis of the effectiveness of advertising activities.

Performance analysis begins at the campaign development stage. Before the planning of the promotion, the segmentation of the market is carried out . On its basis, the target audience is selected, which should be targeted by the campaign.

Evaluation of effectiveness involves, mainly, a comparison of the goals and objectives that were set before the action, with the results achieved after its execution.

Performance analysis provides two values. The first is economic efficiency, and the second is the degree of psychological impact on the consumer.

In the first case, we mean the economic benefit obtained from the use of any advertising device or the organization of an advertising action. As a rule, it is determined by the ratio between the total income of the additional turnover as the total of the campaign with expenses for it. The general condition for economic performance is that gross profit must equal or exceed the amount of costs per share (campaign).

Psychological effectiveness is called the level of the impact of advertising on the consumer, suggesting memorability, the degree of attracting the attention of the buyer, the effect on the motive to make a purchase.

Both concepts have a close relationship. However, the criteria for assessing effectiveness are different. In the first case, the effectiveness reflects the volume of sales. In the second case, the features of consumer perception of advertising.

Evaluation of effectiveness depends on the specific method of determining the size of expenditure. In accordance with its objectives and objectives, the communication and economic effectiveness of advertising is singled out.

Communication effectiveness is a psychological influence of a number of techniques on human consciousness. It is considered the most effective in connection with what leads the consumer directly to the realization of the need to make a purchase.

It should be noted that the effect of persuasion, manifested directly after perception, has no more than ten percent of appeals to customers. Despite the fact that there is an impact on the subconscious that can not be measured, due to an overabundance of information, most of the appeals can not go beyond the limited possibilities in human perception. In connection with this, when planning advertising campaigns, it becomes necessary to apply elements that could penetrate the consciousness and attract attention (music, humor, original ideas, etc.).