Advertisement is also known as Ad Testing and is designed to improve advertising effectiveness. Companies often test their advertising with a subset of a target market before rolling out a campaign to a broader target market. The goal is to save money by optimizing both the message and calls to action before spending advertising dollars. This research allows firms to:
Get knowledge of which market segments to target
Give insights to advertisement designers to better understand the audience
Make an informed decision on whether to advertise in the market or not
Evaluate the performance of the advertising agency
Why You Need Advertising Research
Despite how large your advertising budget is, you still need advertisement research. This is one of the best ways to see how effective a new ad might be without blindly misusing your money. You can use the test feedback to refine the advertisement or avoid the advertising. The test provides insights to help managers make informed decisions about how to best use their advertising budget.
Conducting an Effective Advertising Research
Ad tests work best when you have a clear expectation of the purpose of the advertising. Some advertisements are designed to promote awareness, while others look to build a brand or drive behavior. Regardless of the intent, it’s important to define the goal of the advertisement before running tests. As such, three commonly performed ad tests include:
Recall: Any organization needs to be remembered in order for potential and existing customers to consider its products or services. In a recall test, participants see an ad and then wait a specified amount of time before being asked whether they are able to recall a particular ad or product.
Persuasion: A test for persuasion determines the effectiveness of an ad in changing attitudes and intentions. This test evaluates brand attitudes before and after ad exposure. Participants first answer a series of questions before seeing the proposed advertisement. Then they take a second test to assess how the advertisement changed their attitudes and intentions.
Response: Many advertisements are specially designed to drive an action or a conversion. This is especially common in online businesses that rely on click-through and conversion to drive revenue. In a response test, participants receive an ad with a unique identifier (URL string, promo code, phone number, among others) to track how well the advertisement performs in converting interest to action.