How to calculate advertising effectiveness. Methods and methods for assessing advertising effectiveness. Communication indicators of advertising effectiveness

Advertising is one of the most mysterious areas of business activity: no one doubts that it is necessary. But how can we evaluate whether it is really worth the money spent on it, whether it has solved the tasks assigned to it, and whether it has made a profit? Further planning of advertising activities and its control during activities depends on the answers to these questions.

It is impossible to answer them unambiguously with mathematical accuracy, but in business practice, approximate methods are used to determine the effectiveness of advertising campaigns, which help to clarify the picture with the greatest possible accuracy.

Efficiency is all you need from advertising

It seems that everything is simple: compare how much money is spent on advertising and how much is earned from the advertised product. But the connection between these factors is too indirect, because profit depends not only on advertising, and advertising, in turn, can influence differently and on different objects. That is why there is no unified theory for assessing the effectiveness of advertising.

NOTE! Evaluating advertising effectiveness is also quite a costly exercise, so many organizations neglect this difficult and time-consuming procedure. Meanwhile, it is certainly useful, especially during periods of market decline.

To comprehensively evaluate the effectiveness, you need to examine the advertising campaign at all its stages:

• when developing a strategy, benchmarks are developed, with which the achieved ones will then be compared;
• during the implementation process - it is better to conduct several “slices” of effectiveness, at least two, to clarify the dynamics;
• final of the advertising campaign - analysis of the achieved results.

What does advertising effectiveness consist of?

1. Communication effectiveness, otherwise called information. This indicator reflects the number of potential consumers who saw (heard, recognized, etc.) the advertising message. In addition to the quantity, it is also assessed how the opinion of those in contact with the advertisement changed. In this regard, it is assessed:
   • quality of advertising presentation - how suitable the content and presentation of the advertising “message” is for its audience, whether the message is successfully placed, whether the form is chosen correctly;
   • memorability of key information - it is important that during advertising the consumer remembers at least the name of the organization or the advertised product;
   • impact on the motivation of potential clients;
   • formation of stable associations;
   • creating an opinion and attitude towards the advertised product;
   • features of a sustainable image of the advertising object;
   • ability to attract attention, etc.
2. Economic efficiency– financial result of an advertising campaign. It is the most difficult to evaluate because it requires a clear mathematical approach, which is not possible in the case of advertising. The effect of an advertising campaign may be extended over time, and profits may depend on other factors. Approximate calculations are based on data on sales dynamics: the relationship between the profit supposedly received from a given advertising campaign and the costs of it is determined.

Rules for assessing advertising performance

These requirements are caused by the peculiarity and ambiguity of the object of assessment itself. To get the most reliable result, you should follow 5 key rules for assessing the effect of advertising activities:

1. Profitability rule: advertising must generate profits that exceed or at least equal the costs of advertising itself. All other results indicate ineffectiveness. In other words, the game should be worth the candle.
2. Rules for selecting criteria: you need to track changes consistently, and to do this, select specific positions that will be studied. It can be:
   • sales volumes;
   • number of customer requests;
   • turnover of goods, etc.

IMPORTANT! Even with a comprehensive assessment, each criterion must be able to be assessed separately.

3. Conversion Rule: What is important is not the advertising itself, but how it is converted into real and measurable performance indicators - the number of hits (clicks, calls), as well as the number of conversions of these hits into real sales.
4. Rule of extremes: It is necessary to evaluate both the best and worst results in order to maneuver in the future between the means that caused such responses, achieving a “golden mean”.
5. Rule of objectivity: You should not embellish the results obtained, since only an honest result of the analysis will help improve the effectiveness of advertising. Recording the failed effect of an advertising campaign will also be effective; it will show gaps in market knowledge and weed out incorrect marketing moves.

Methods for assessing the economic effectiveness of advertising

This is the most objective indicator, calculated in specific figures, based on data from financial documents. Advertising does not always show an increase in profits; often it is enough that it prevents losses. Let's consider various ways to calculate the ratio of financial factors of advertising:

1. Comparison of turnover before and after advertising:
   • turnover level above expectations;
   • comparison of profit for additional turnover and costs of advertising itself.
2. Calculating advertising profitability(how the result of each advertising campaign relates to its cost).
3. Analysis of target alternatives– to what extent the objectives of the advertising campaign were achieved. It is measured as a percentage:
   EE = (Pr fact – Z r / Pr. pl – Z r) x 100%, Where:
   • EE – economic efficiency;
   • Pr fact – profit based on the action of the advertising company (in rubles for the selected period);
   • Etc. pl – planned profit for the same period;
   • Zr – advertising costs.
4. MethodROI(from the English “Return of Investment” - “return of investment”). To measure the investment component of advertising effectiveness, use the formula:
   E r = (B before x P – B after x P) / Z r., Where:
   • E r – advertising effectiveness;
   • In before – revenue indicators before the start of the campaign for a certain period;
   • In after - financial data on revenue for the same period after the advertising campaign;
   • P – profitability of sales of the advertised product (the ratio of the price per unit minus the cost to the net price);
   • Zr – advertising costs.
5. I. Berezin's method– the difference is calculated between the planned indicator without taking into account the influence of advertising and the actually achieved figures (according to the selected criterion - sales or circulation).
6. Comparison with competitors– a similar product and a comparable time period are taken into account. Based on the analysis of the sales level, a conclusion is drawn about the effectiveness of the advertising campaign.

Methods for assessing communicative effectiveness

Here the numbers will not play a key role, because the object of assessment cannot be expressed in them with complete unambiguity. To analyze this advertising factor, the following methods are used:

• interview;
• survey;
• observation;
• experiment (focus group) - in approximately equal markets, advertising is used first in the same and then in different proportions;
• testing – tests for the main indicators of the psychological impact of advertising: recognition, memorability, attitude, image, etc.

For more accurate results, the assessment of the communication component of advertising effectiveness should be done in 3 steps:

1. Preliminary estimate– helps to avoid miscalculations at the advertising preparation stage, which is important, especially in expensive projects. It is mandatory to check the following criteria:
   • relevance and reach of the target audience;
   • adequate form and content;
   • channels for placing and transmitting advertising “messages”, etc.
2. Current control– evaluates the reaction to advertising in dynamics, when it can be adjusted.
3. Final analysis– carried out after the completion of the advertising campaign, its results will affect subsequent advertising activities.

Communicative effectiveness in traditional advertising it is much easier to measure than in economic advertising.

Preliminary methods for studying advertising effectiveness include the following.

• 1. Direct assessment method. It involves studying consumer opinions about various options for an advertising message: how much attention the message has captured, whether it is easy to perceive, how clear the main idea and advertised benefits are, what seems especially attractive in the message, how much the message evokes a desire for further action, etc.
• 2. Portfolio tests. They involve showing consumers a number of different advertising messages without a time limit. Then respondents are asked to remember everything they saw, including the content of advertising messages. The portfolio test is designed to identify the level of memorability of an advertising message and its ability to stand out among others.
• 3. Laboratory tests. With their help, the physiological response of the consumer to an advertising message is measured, and appropriate equipment is required. They help determine how capable an advertising message is to attract consumer attention.

These methods help to preliminary assess the possible degree of impact of the advertising message on the target audience. After this, the most proven advertising messages are selected and an advertising campaign is carried out.

• level of awareness;
• motivation level;
• influence on purchasing behavior;
• notice - the consumer remembers that he saw the advertisement if the product is mentioned in conversation;
• memorability – the ability not only to remember, but also to correctly reproduce the advertising message;
• recognition – the ability to “recognize” a message when it is presented.

When studying the communicative effectiveness of television advertising, they often use panel method. Separate studies are conducted to determine the relationship between advertising frequency and the nature and level of impact on consumers.

There are the following categories of methods for conducting assessment research:

• memory tests – related to memory and recognition tests;
• persuasiveness tests are associated with ascertaining from consumers before and after viewing an advertisement their intention to buy a product of a certain brand;
• counting direct responses - refers to the method of economic efficiency and is associated with counting calls to the company for additional information and the number of purchases under the influence of advertising;
• communication tests - designed to identify such characteristics as whether the advertisement conveyed the correct message to the target audience, and how consumers reacted to this message. The results are ambiguous and require detailed analysis and interpretation;
• focus group - is the most common method of preliminary assessment of the effectiveness of television and print advertising, highly dependent on subjective factors;
• physiological tests - based on measuring physiological parameters of a person’s condition using special sensors: pulse, pupil dilation, various reactions;
• frame-by-frame tests – are associated with recording the audience’s reaction to individual parts of the commercial. For example, test REAS, in which, while a commercial is shown in a movie theater, viewers must press buttons on manual keyboards to express their opinion on each part of the advertisement;
• intra-market tests – the impact of the advertising campaign on sales volume is assessed, i.e. economic efficiency of advertising.

Economic efficiency

There are two methods (approaches) to assessing the economic effectiveness of advertising:

• 1) the historical approach involves identifying the relationship between advertising costs and sales volumes over past periods of time;
• 2) the experimental approach is to study the impact of advertising costs on sales by allocating different advertising budgets for the regions in which the experiment is conducted.

To get a more accurate idea of ​​the possible cost-effectiveness before launching to a mass audience, its impact can be measured in a small region and compared changes in sales volumes in this region with other regions where the advertising campaign has not yet been carried out.

To assess cost-effectiveness, relationships between advertising costs and indicators such as market share can also be used; number of new clients; turnover; profit, income, etc.

It is almost impossible to accurately predict an increase in sales growth as a result of an advertising campaign, since this is influenced by many factors: the economic situation in the country and the world, a change of government in the region, changes in legislation, the prospects and current state of the market, the emergence of competitors, the emergence of new products, problems within the company, etc.

Methods for assessing traditional communications are usually based on a sufficient amount of statistical data.

• 1. Direct methods - based on direct calculation of sales results obtained under the influence of advertising.
• 2. Indirect methods - are divided into determining the number of customers and the number of invoices, and methods for determining the amount of sales.

The amount that really needs to be allocated for advertising depends on the stage of the product’s life cycle, since at the stage of product introduction, trade can even be unprofitable, and advertising costs can significantly exceed the average 4-5% of all company expenses.

Measuring the effectiveness of advertising is expressed in studying how familiar the target audience is with information about a specific company, what is known about the goods produced by the company, their quality characteristics, what image of the company and goods has formed and what is the attitude of potential consumers towards them.

In general, in most cases it is not possible to absolutely accurately determine the effectiveness of individual advertising media. However, preliminary calculations are justified.

• Marketing by notes: a practical course on Russian examples: textbook / ed. L. A. Danchenok. 3rd ed. M.: Market DS, 2008. pp. 712–713.
• Marketing by notes: a practical course on Russian examples: textbook / ed. L. A. Danchenok. 3rd ed. M.: Market DS, 2008. pp. 714–715.
• Vasilyeva E. A. How to make advertising effective? 25 win-win ideas: practical. allowance. M.: Dashkov i 1C, 2010. pp. 23–24.

And yet, a lot can be said about the fact that economic indicators are not a measure of marketing effectiveness. But how can one measure in practice (and the effect, as I noted earlier, is numbers) the effectiveness of an advertising campaign?

I am deliberately not talking about the effectiveness of marketing, about a long-term advertising campaign or marketing program - in these cases, the goals may be different and the effect is considered differently. But even a formula for analyzing the dynamics of sales volumes over a long period will allow marketers and financiers of an enterprise not only to assess the effectiveness of marketing activities in a specific period, but also to identify seasonal trends (fluctuations) in sales.

Still, let's try to evaluate the effect of a local advertising campaign. There are a number of formulas that help to fairly accurately assess the effect of a marketing and advertising event. To begin with, let's define

What challenges do you need to overcome when advertising a marketing item?

Regular readers have already noticed that I constantly draw attention to the fact that it is not necessary to count anything in marketing - accountants and economists do! In marketing, it is imperative to satisfy the market!
But in management, understanding how effective you are in your efforts is very important.

• commercial viability- first, solve the problem sales growth
• communicative effectiveness– secondly, digital must grow communication indicators(quality of communication between the marketing subject and the market).
• economic efficiency- thirdly, you need to carry it out economically profitable(economic indicators)

Commercial viability

Calculation of turnover under the influence of advertising (quantitative assessment of sales)

Making sales efforts unnecessary and securing sales is the main challenge. Therefore, we consider how trade turnover has changed under the influence of advertising, in relation to trade turnover before advertising:

T d = (T s * D * P) / 100

Where:
T d - additional turnover caused by advertising events, rub.;
T c - normal average daily turnover (before the start of the advertising period), rub;
D - number of days of accounting for turnover (during the period of active advertising);
P - relative increase in average daily turnover during the advertising period compared to pre-advertising
nmm, %.

Please note that your turnover may change and not at all due to the quality of advertising - seasonal demand for goods has begun, problems with logistics have arisen. All this and more can affect the growth of trade turnover. To calculate, you will need to either neglect this or take it into account with other formulas and compensation coefficients.

Number of receipts with the advertised product (qualitative indicator of advertising)

The indicator of the increase in the number of receipts (invoices) with the product used in advertising is calculated in relation to the indicator before advertising.

The amount of the advertised product in the receipt (qualitative indicator of advertising)

If we assume that advertising stimulates quantitative consumption, then recording the number of goods in the basket (invoice) during the advertising period is also important. Just pay attention that advertising has a cumulative effect of attention to the advertised product and a decaying effect of attention after the advertising stops. How these effects affect sales can also be analyzed.

Product in category

Purchases of the advertised product as a percentage of total purchases in the product category. Why is this indicator important? Sales of a product can grow under the influence of advertising even if category sales fall. This indicator allows you to evaluate the quality of advertising when there is a general drop in sales during a crisis, at the end of the season, or during off-season sales.

Communication indicators of advertising effectiveness

Communication indicators of an advertising campaign are expressed in the form of results of observation and analysis of the behavior of real and potential consumers. The information obtained from such observations and analysis, as well as the conclusions, cannot be reduced to any standard form. Therefore, each time a report on qualitative results of advertising effectiveness is unique in its own way.

Reach

Reach – the percentage of the target audience who viewed the advertisement during a certain period of time (the number of contacts with the target audience).

Where:
K – Number of contacts
P – Size of the audience of the advertising channel (advertising medium) for the period of advertising

Ad recall

Advertising recall. In response to a question about the advertising of a product, the respondent begins to mention specific names. For example, to the question “What television advertisements of cellular operators have you seen on television?” The respondent can answer unequivocally, naming the brand, or he can begin to retell the content of the video. The percentage of respondents who say this out of the total number of respondents determines the quality of advertising recall.

Brand awareness

Criteria such as recall or brand recognition are assessed (depending on the goals of the advertising campaign). When both goals are present, brand recall is assessed first (“Which mobile phone brands come to mind first?”) and then familiarity (“Which of these brands have you seen before?”). The first measurement is carried out without prompts, the second - with prompts in the form of showing respondents images of brands (or a list of their names).

Consumer actions

Actions are expressed in a behavioral reaction to advertising (purchase, preparation for purchase, search for additional information, ignoring, etc.). When trying to find out about the “action” using a survey method, usually those who have seen the advertisement are asked the following question: “Which mobile phone stores have you visited recently?”

CTR is an indicator of the communicative effectiveness of advertising, measured as the ratio of the number of certain actions in response to an advertisement (clicks on advertising, store visits, leaflets distributed) to the number of impressions of this advertisement.

CTB is an indicator of the effectiveness of online advertising, measured as the ratio of the number of visitors to a commercial web resource attracted by advertising and making a purchase to the total number of visitors attracted by advertising. The metric reflects the conversion of visitors and is in some cases called the conversion rate. as in the previous case, the “action” is taken to be the purchase itself (not its value).

The effectiveness of advertising is assessed in several ways: conclusions are drawn about how effective a particular advertisement and its individual elements are, how appropriate it is to use certain advertising means, how effectively money is spent on advertising, etc.
Now in world practice there are two types of evaluation of advertising effectiveness: economic, or commercial (effectiveness of influence on sales) and communicative (effectiveness of psychological influence on people’s consciousness). The economic and communicative effectiveness of advertising are closely interrelated, since economic efficiency directly depends on the degree of psychological impact on people. And to increase the economic efficiency of advertising, it is important to ensure its high communicative effectiveness.
Let's take a closer look at the methods for determining the communication and sales effectiveness of advertising.

14.1. Communicative effectiveness of advertising
Only an advertising message that has a certain planned impact on the target audience can be considered effective, i.e. which is capable of:
be perceived positively by the target audience;
attract attention;
remain in the consumer’s memory;
convince the consumer of the merits of the advertising object (change the attitude towards it);
push to certain actions (send a coupon to the specified address, take part in a drawing, try a product, make a purchase).

Accordingly, the assessment of the communicative effectiveness of advertising includes the following components: determining how advertising is perceived (positively or negatively), the degree of attracting attention, the degree of memorization, the degree of persuasion, the ability to lead to certain actions (and, above all, to lead to a purchase).
The communicative effectiveness of advertising can be assessed before, during and after an advertising campaign.
The point of evaluating advertising before the start of a campaign is to check its perception on a control group of consumers or with the help of experts and select the optimal final version of the ad from several alternative ones.
During the advertising campaign, the perception of advertising is tested in natural conditions. This is done in order to promptly identify shortcomings and make adjustments, correct the situation, while there is still an opportunity for this.
After an advertising campaign, the communication effectiveness of advertising is assessed in order to conclude whether the goal of the campaign has been achieved or not. In addition, this makes it possible to identify all the strengths and weaknesses of advertising and take them into account in further advertising campaigns.
To assess the communicative effectiveness of advertising, methods of observation, experimentation, surveys, and expert assessments are used. Let's look at some common techniques.

Evaluation methods used before the start of an advertising campaign

1. Method for assessing psychological perception. When using this method, a control group of consumers is asked to consider alternative advertising options and give a score to each option on a certain scale. For example, consumers are asked to rate 2-4 ad options on a 5-10 scale. A higher rating indicates more effective advertising. It is important that the consumer likes the advertisement and perceives it positively, only in this case it will lead to a purchase.

2. Method for assessing memorability. It is known that people buy a brand they remember more often. In addition, it is very important that the consumer remembers the main idea of ​​​​the advertisement.
A group of people (a certain contingent of typical representatives of the target audience) is invited to the office. They are asked to view or listen to a selection of advertising messages (text, audio or video). Then they are asked to remember which advertisement they remember and its content (advantages of the product, manufacturer's brand). Thus, the level of advertising memorization is determined. In an advertising campaign, they rely on the most memorable advertisement.
Surveys reveal not only advertising memorability, but also a wider range of information. After viewing, participants can fill out a questionnaire and a discussion can then take place. As a result, the positive and negative aspects of advertising, its ability to be understandable, the persuasiveness of arguments, etc. are established.

3. Method of expert assessments. Allows you to determine the best ad from several alternative parameters based on a combination of parameters. When using this method, the degree of perception of the advertising message is assessed by members of the expert commission. They provide points in the corresponding questionnaire. The questionnaire may contain the following questions: the degree of attraction of attention, the degree of memorability, the persuasiveness of advertising arguments, etc. For each ad, the ratings are summed up and the best ad is selected.

4. Research through experiments. An experiment is an experiment conducted on an incomplete, truncated scale. With the help of an experiment, first of all, you can trust and roughly evaluate a future advertising campaign. An experiment that precedes major advertising campaigns is called piloting. The purpose of aerobatics is to improve advertising campaigns. Often, before launching a large-scale advertising campaign, such pilot studies are carried out. The test is carried out by launching advertising in the amount of 10% of the scale of the entire advertising campaign. For example, the memorability and degree of impact of advertising, and the correct choice of a particular advertising medium are checked.
During the experiment, one or more factors may change. At the same time, the influence of this change on the result is examined. Analysis of the pilot allows us to draw a conclusion about the possibility of continuing advertising in the form that was planned, or about the need to make any adjustments.

5. Focus group method. Allows you to evaluate consumers’ perception of an advertising idea and identify purchase motives.

Evaluation methods used during the advertising campaign
1. A method for determining the degree to which advertising attracts attention. Observations are used for this purpose. Observation is passive. The observer simply records the number of people who paid attention to the advertisement (store window, exhibition stand or outdoor advertising) and keeps a count of the total number of people who passed by.
The degree of attracting attention to this type of advertising (B) is determined by the following formula:

where B is the degree of attracting the attention of passersby;
O - the number of people who paid attention to the advertisement during a certain period;
P is the total number of people who passed by the advertisement during the same period.

2. Method for assessing customer flow. This method is used to determine the ratio of the number of visitors to a company (restaurant, travel agency, store, hotel) during the advertising period to the usual, average number of visitors. Visitor data is obtained using photocells or simple counting. It should be taken into account that on weekends and holidays the intensity of customer flows increases. The method allows you to determine the extent to which advertising is capable of prompting certain actions.

3. A method for identifying the advertisement that has the most impact on the consumer (experimental method). Using this method, two different versions of an advertisement are placed in a publication (newspaper or magazine) in different halves of the circulation (with the attachment of tear-off coupons, cut-off coupons with the right to a discount or an offer to receive a free sample of the product).
By sending these coupons or coupons to the specified address, the consumer can receive a free sample of the product, a discount when purchasing a product, additional information, a prospectus, a catalog, etc. In this case, the coupons must differ in some way (telephone or office number). By comparing the number of coupons or vouchers returned to the company, the best (more impactful) advertisements are determined and subsequently bet on them.
Using this method, you can determine a more effective advertising medium. To do this, one version of the advertising message with coupons is placed in different advertising media. In order to identify different funds, you can change the telephone or office number in advertisements.

4. Survey method. The simplest version of the survey: the caller is asked where he saw the advertisement. This is how the best advertising medium is most often determined.
However, using this method you can obtain a wide range of information. This method is considered one of the most reliable, as it allows the buyer to directly identify his attitude towards advertising in general and to individual design elements. For this purpose, questionnaires are compiled and distributed among consumers.
This is done in personal surveys and even through radio or television. But conducting surveys requires a significant investment of time and the involvement of a large number of people in this work.
According to experts, the optimal size of the group of people interviewed to determine the effectiveness of advertising is 125 people. With a population of less than 100 people, test results are unreliable. Increasing the number to 150-200 people leads to a sharp increase in research costs without significantly affecting the accuracy of the results.

Evaluation methods used after an advertising campaign
Any advertising campaign should end with a summary of its results. Among the most well-known evaluation procedures used after an advertising campaign are the following.

1. "Recall without assistance" method. It is used to determine attitude towards a product or advertisement. Respondents are asked questions regarding the advertised product, reaction to advertising, etc. To answer the questions, they are offered several pairs of antonyms-definitions, reflecting opposing points of view on a product or advertisement. For example: “positive” - “negative”, “strong” - “weak”. Between them there is a scale. The respondent must reflect his/her attitude by checking the appropriate box.

2. Gallup-Robinson method, which is used to assess the recognition and memorability of advertising messages. It consists of the fact that a few days after promotional events (“on the heels”), 200 individuals selected from the target audience are presented with a list of trademarks. Each of the respondents must answer the question whether he remembers seeing an advertisement for the brand being tested in a certain publication (radio or television program).

3. Starch method. Using this method, each respondent views publications and notes those advertisements that he has seen previously. At the same time, there are readers who:
just saw an advertisement;
it was partially read and the advertiser was identified;
read almost the entire content of the advertisement.

4. "Caching" method, designed to test the memorability of an ad. When testing, real advertisements are used, from which the brand of the advertised company or product is removed. Respondents must indicate which brand is missing.
As quantitative indicators of the effectiveness of advertising memorability, the indicator of advertising penetration proposed by R. Reeves and the indicator of involvement in consumption through advertising are used.
The advertising penetration rate (PAI) is determined as the quotient of the number of people who remembered the advertisement and the brand divided by the number of people who did not remember it. If the indicator value is greater than one, the advertising effectiveness is assessed as high, if less than one - low.

The indicator of involvement in consumption through advertising (B) is determined by the formula

where Z is the number of people who remembered the advertisement;
K - the number of people who bought the advertised product;
NZ - the number of people who did not remember the advertisement.
If the indicator is positive, the advertising effectiveness is high; if it is negative, the advertising is ineffective. Buyers are surveyed.

5. Assessing the impact of an advertising campaign to increase awareness of the brand, its recognition, preference for the brand, degree of trust in it, intention to make a purchase (in accordance with the goal of the advertising campaign).
To do this, before the start of an advertising campaign, by surveying the target audience, it is necessary to measure the state of these factors. To determine the psychological effect after the end of the campaign, a randomly selected group of consumers must be surveyed again.
If, for example, a company wanted to increase brand awareness from 20 to 50% and this happened, then the goal has been achieved. If a lower level is obtained, then something was done wrong: there was an insufficient advertising budget, unsuccessful advertising messages, etc.

14.2. Economic efficiency of promotional activities
The economic (trade) effectiveness of advertising is determined by measuring the impact of advertising on turnover (i.e., by the degree of increase in sales after advertising events).
To do this, analyze information from cash registers, analyze seller records or accounting data. The economic efficiency of advertising has a monetary value. The growth of trade turnover under the influence of advertising is determined as follows:

where TD is the additional average daily turnover caused by promotional activities, den. units;
TC - average daily turnover before promotional events, den. units;
D - the number of days of accounting for turnover in the advertising and post-advertising periods;
P is the increase in average daily turnover for the advertising and post-advertising periods compared to the pre-advertising period, %.
This method compares the average daily turnover before and after the use of advertising in the current period or compares data on the sale of goods for a certain period of time (decade, month, quarter) of the current year, when the product was advertised, with data for the same period of the previous year, when there was no advertising.

where P is the profitability of advertising, %;
P - profit received from advertising, den. units;
Z - advertising costs, den. units

The economic effectiveness of advertising can be assessed by data on the simultaneous sale of goods with and without the use of advertising. In this case, areas that are similar in size, national and social composition of the population and similar trade organizations should be selected.
Using this method, you can compare the effectiveness of different advertising media. It is necessary to select two markets with approximately the same conditions for a certain product. In one market, one means of advertising is used (for example, advertisements in a newspaper), and in another market, some other means or complex of advertising means is used. By comparing the commercial results from advertising of the same product at the same advertising costs, the degree of effectiveness of one product in comparison with others is determined. This method makes it possible to obtain data on the role of each advertising medium in the overall complex of advertising means during advertising campaigns, and also allows us to identify the best combinations of various advertising means for certain products in the selected market.
In most cases, it is impossible to accurately calculate the effectiveness of advertising. Changes in sales volumes are influenced by exchange rates, the actions of competitors, the level of customer service culture, the availability of similar products for sale, the quality and price of the product and other factors.
It is possible to most accurately determine what effect advertising has had only if an increase in product sales occurs immediately after the impact of advertising (not too expensive everyday goods). When purchasing expensive goods, the effect of advertising does not appear immediately.

Research into advertising effectiveness is one of the important and promising areas of modern marketing research. The main objective of advertising effectiveness research is to try to predict its impact on a firm's business activities. The need to conduct advertising research is also due primarily to the fact that decisions in the field of advertising activities are made under conditions of certain risk and uncertainty.

When studying the effectiveness of advertising, the communicative (psychological) and economic effectiveness of an advertising campaign are distinguished. The psychological impact of advertising should ideally lead potential consumers to purchase this product. This is why advertising is created, which is distinguished by its brightness, originality, euphony, which is easy to remember and does not cause irritation. How strong and positive the psychological impact of advertising on a person’s consciousness is, the more cost-effective it is. Therefore, economic efficiency usually depends on communication efficiency; in other words, the level of sales of goods depends on the degree of psychological impact of advertising on the consumer.

Monitoring the results of an advertising campaign is an integral part of marketing control. The control process provides for periodic comprehensive or in certain areas objective verification of the company’s advertising activities, that is, a comparison of planned and actually obtained indicators. The main task of control is to check the correctness and effectiveness of the marketing concept itself and the product distribution strategy, including advertising activities.

> determining the difference between planned and actual expenses for an advertising campaign?;

1. Conducting an audit, i.e. a situational analysis, which should provide “photos” of the company’s activities, including advertising. As a result, it becomes possible to have a point for calculation or a basis for comparison. At this stage, the real values ​​of the indicators at the time of the analysis are determined.

2. Establishment of planned values ​​and standards (goals and norms). The rationalization of goals must be carried out, that is, the determination of what advertising action, for what product, in which target group and when needs to be done. Norms must have quantitative meaning. For example, increase sales volume by 10%, increase target audience awareness of the company’s product from 40% to 55%.

3. Determination of actually achieved results for a certain period (day, week, month, quarter, year).

4. Comparison of actual values ​​with planned and standard values.

5. Analysis of comparison results, which makes it possible to make changes to planned values ​​and standards or during an advertising campaign.

The purposes of monitoring the company's performance are:

> monitoring the impact on the sale of goods of those advertising events that were planned during the development of the company’s advertising campaign;

> control of communicative indicators of consumer attitudes towards the company, its products, advertising messages and the media that are used during the advertising campaign;

> control of budget expenses for an advertising campaign;

> control of presentations, fairs, exhibitions, etc. and the expenditure of funds for these events.

Department store owner John Wanamaker famously said, “I know that half the money I spend on advertising is wasted, but I never know for sure which of the two halves is wasted.” Therefore, constant analysis of the effectiveness of promotional activities should be carried out.

Analysis of the effectiveness of advertising events can be carried out in several directions: determining the feasibility of advertising as a whole, calculating the effectiveness of its individual means, determining the conditions for the optimal impact of advertising on potential buyers.

The effectiveness of advertising by commercial companies is determined through research. They include a survey of the most typical representatives of the advertising audience. In particular, it is worth finding out what exactly they know about this company; what they see as the advantages and benefits of purchasing a product or using services, how they learned about the existence of the company; how they understand advertising; what they like about it and what they don’t; What should be changed or added to it?

It is only possible to estimate the economic efficiency of individual advertising activities or campaigns as a whole. It is impossible, for example, to distinguish between the effectiveness of advertising and the results of consumer contacts with other people, the influence of seasonal sales or random circumstances, such as price changes or the disappearance of a competitor. Relative economic assessment of advertising effectiveness consists of comparing:

1) sales volumes or income received before and after the advertising campaign;

2) the ratio of income received to allocations for advertising.

In practice, the economic efficiency of advertising is most often determined by determining its impact on changes in turnover. To identify the extent to which advertising influenced the growth of trade turnover, operational and accounting data are analyzed. It should be borne in mind that in addition to advertising, the sale of a product may be affected by its quality and consumer properties, price, appearance, location of the trading enterprise, level of customer service culture, and the availability of similar products for sale.

Additional turnover under the influence of advertising is determined by the formula:

where Td is additional turnover under the influence of advertising, UAH; Tc - average daily turnover before the advertising period, UAH; P - increase

where E is the economic effect of advertising, UAH; Тд - additional turnover under the influence of advertising, UAH; Нт - trade markup on goods, % of the selling price; Ш - advertising costs, UAH; S/d - additional expenses caused by an increase in trade turnover, UAH.

In this case, the resulting effect from the promotional event is compared with the costs of its implementation. The results of such a comparison may be as follows:

However, the data obtained is not enough to determine the economic feasibility of spending on various promotional activities. More precisely, the feasibility of advertising costs characterizes its profitability.

The use of the proposed indicators has certain limitations: firstly, it is impossible to isolate the impact of advertising events on increasing turnover; secondly, it is incorrect to reduce the objectives of advertising only to increasing trade turnover.

The following indicators allow you to evaluate the effectiveness of advertising placement activities, as well as make a comparative analysis of the activities of competitors.

The basic indicator that is used to calculate others is the rating. The rating reflects the popularity of a particular TV channel over a certain period of time. Taking into account the specifics of conducting research on the TV audience in Ukraine, this is the ratio of the number of viewers (channel or program) to the entire population of regional centers of Ukraine:

When calculating indicators characterizing an advertising campaign, the following are calculated:

GRP (Gross Rating Points - the total rating value) - characterizes the intensity of the advertising campaign that took place over a certain time. This indicator is a universal equivalent that is used to compare advertising campaigns that occurred at different periods of time and were carried out by different advertisers. Formally, GRP is the sum of ratings for the most general target audience (the population of regional centers) for all outputs of a particular advertisement during a specified period of time:

where n is the number of outputs.

Note that a certain group of people can be included in several ratings simultaneously, so the sum can exceed 100%. In advertising practice, a prominent television advertising campaign gains more than 100 GRP. An advertising campaign is considered powerful if the GRP value exceeds 1000 GRP.

TRP (Target Rating Points - rating value for the target audience) like GRP, however, characterizes the intensity of the impact of a certain advertising campaign on the specified target audience. TRP is the sum of the ratings for a given target audience for all exposures of a particular advertisement during a certain period of time.

Most often, TRP is compared to GRP. The higher the TRP/GRP ratio, the more effective the advertising will be or was on the selected TV channels. A higher TRP value in relation to GRP indicates greater popularity of the media for a given target audience compared to the overall value.

Most advertisers strive to convey their advertising message specifically to a specific target audience, which is a potential consumer of the product being advertised. Therefore, to analyze the effectiveness of selected TV channels in terms of reaching a specific target group, it is important to compare TRP with GRP.

In addition to this comparison from GRP TRP, it is important to determine the price for advertising. When purchasing advertising time at the cost of 1 GRP, with skillful planning, you can achieve much better results for the target audience than for the entire population, which means reaching 1% of the target audience will cost less.

The number of exits is also one of the characteristics of the intensity of an advertising campaign. Number of outputs - the number of submissions of a specific advertising message during a specified period of time. This indicator does not take into account spending or popularity characteristics, but is the basis for other calculations.

Reach characterizes the number of people who watched a particular advertisement during a specified period. In other words, reach is the percentage of the number of people who have seen a particular advertisement or promotional campaign over a given time and who belong to a particular target audience, to the total size of the target audience.

Reach makes it possible to estimate how many people received the information contained in the advertisement. This figure cannot exceed 100%.

CPP (Cost Per Point - the cost of 1 rating point) is an indicator characterizing the effectiveness of advertising on television in terms of cost - this is the cost of reaching one percent of the target audience. In other words, CPP reflects the amount of money that should be spent on television advertising in order to familiarize one percent of the target audience with the advertising message.

On television, the most commonly used indicator is 60" (or 30") CRR, since the cost of advertising is affected by the duration of the advertising message.

CPP is one of the most important criteria by which the media in which advertising is planned are selected.

CPT (Cost Per Thousand - cost of a thousand contacts) is an indicator similar to CPP. Like CPP, CPT characterizes the effectiveness of advertising on a particular TV channel, but the unit of comparison is not the percentage, but the population in thousands of people. Consequently, CPT is calculated as the cost of one output with certain temporal, spatial and other characteristics to the average population in thousands:

The use of CRT is advisable when the researcher is not interested in the percentage of a given target audience, but in the number of people who watch the advertisement. This need arises when comparing SRT of different target audiences.

We should not forget that advertising is only one of the marketing tools that influences the sales of goods. That is why, when assessing the effectiveness of advertising, a set of conditions and factors are taken into account that contribute to or hinder the achievement of marketing goals.