Advertising Evaluation Techniques

Techniques for tracking advertising are often discussed by both advertisers and agencies as they seek to identify and maximise the ROI effect of media budgets. Deciding on which techniques to use can raise a number of issues depending on the data and budgets available for advertising evaluation.  All are data dependent which means that if you are not collecting response or sales data you will need to. Costs for implementation can vary but should always be viewed in the context of the potential savings that can be made from subsequent optimsation. For example, if a regression model costs £25k, but can optimise a £2.5m budget to save £500k, then the £25k is money very well spent. Here is a short summary of advertising evaluation techniques.

You will  notice there is no mention of coverage or frequency here. That’s because coverage and frequency are useful media planning metrics but they are not direct measures of ROI – coverage and frequency are measures of audience delivery not sales response. Reach and frequency may be linked to sales response but in my opinion spend levels or GRP weights and diminishing returns in specific time intervals are more robust ways of understanding sales response to advertising.