Principles of Measuring Advertising Effectiveness

This paper covers the methodologies used and offers pointers on choosing the most appropriate testing technique.

Principles of Measuring Ad Effectiveness

David OlsonGeneral Motors, Procter & Gamble, McDonald's.

Testing the Effectiveness of Advertising is a Big Business

With the cost of producing a commercial at $500,000 or more — and media budgets of $50 million — there is a natural desire, on the part of advertisers, to make sure that the advertising they are running is effective.

John Wanamaker's famous quote, “I know that half of my advertising money is wasted… I just don't know which half,” practically begs for a method to identify effective ad campaigns, commercials, or print ads.

Research companies, recognizing this...

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