Within the framework of the modern market economy, the role of advertising is especially growing. It acquires the greatest importance due to increased competition. Against this background, the desire of entrepreneurs to increase the effectiveness of advertising campaigns, using methods for evaluating the effectiveness of advertising, to obtain information on the appropriateness and effectiveness of the use of certain means, is intensifying. Along with this, the conditions for optimal influence on the choice of potential consumers are determined.
Evaluating the effectiveness of these activities, both qualitatively and quantitatively, includes the study of a complex set of issues related to the analysis of indicators of awareness and consumer attitudes to goods before and after the campaign. In addition, issues are related to the direct functioning of advertising.
Most of the analysis techniques used are of an applied nature, and therefore these methods for evaluating effectiveness are used only for certain types of stocks. It should be noted that agencies spend most of the allocated funds on approving appeals. Moreover, only a small amount is allocated for the analysis of the effectiveness of advertising activities.
Performance analysis begins at the design stage of the campaign. Before planning a promotion, market segmentation is carried out . Based on it, the target audience is identified, which the campaign should focus on.
Evaluation of effectiveness involves mainly comparing the goals and objectives that were set before the campaign, with the results achieved after the campaign.
Performance analysis provides two values. The first of these is economic efficiency, and the second is the degree of psychological impact on the consumer.
In the first case, this refers to the economic benefit received from the use of any advertising technique or the organization of an advertising campaign. As a rule, it is determined by the ratio between the total income of additional turnover as the result of the campaign with the costs of it. A general condition for economic performance is that gross profit should be equal to or higher than the cost of a share (campaign).
Psychological effectiveness is the level of impact of advertising on the consumer, suggesting memorability, the degree of customer attention, the effect on the motive for making a purchase.
Both concepts have a close relationship. However, the criteria by which effectiveness is assessed are different. In the first case, performance reflects sales. In the second case, the features of consumer perception of advertising.
Evaluation of effectiveness depends on the specific method of determining the amount of expenses. In accordance with its tasks and goals, the communication and economic effectiveness of advertising is distinguished.
Communication efficiency is the psychological influence of a number of techniques on human consciousness. That it is considered the most effective in connection with the fact that it leads the consumer directly to the realization of the need to make a purchase.
It should be noted that the effect of persuasion, manifested immediately after perception, has no more than ten percent of appeals to customers. Despite the fact that there is an impact on the subconscious that cannot be measured, due to an overabundance of information, most of the appeals cannot go beyond the limited possibilities in human perception. In this regard, when planning advertising campaigns, it becomes necessary to apply such elements that could penetrate the consciousness and attract attention (music, humor, original ideas, etc.).