Discuss the pretesting and post testing methods for gauging advertising effectiveness. Also discuss how technology has revolutionized the way ad effectiveness is measured.
Answers
throughout history, advancements in technology have played an important role in how individuals are exposed to new information. From the printing press, to radio, to television, and most recently, the internet, each successive innovation revolutionized and altered how individuals engaged with new concepts, products, companies, and brands. Yet, despite technological advancements, until the mid-to-late 1990’s most companies and brands relied on a linear and symbiotic way to reach consumers: traditional media companies sold advertising space to fund their operations and companies bought advertising space to reach consumers.
With the rapid growth and adoption of internet connectivity, the long-established advertising norms have been uprooted. Increased connectivity has resulted in the democratization of media; anyone with a good strategy, an internet connection, and basic web design skills is now capable of competing with multi billion dollar enterprises for views and advertising dollars. Moreover, the increased use of social media platforms not only means that people are accessing information in new ways, it also means they are no longer as reliant on receiving information through traditional mediums.
Due to the proliferation of new ways to reach consumers and shifting consumer habits, companies, brands, advertising firms, and media outlets have been forced to adapt and develop new ways to reach audiences. While Americans still spend about three hours a day watching television, the internet is not far behind, with most Americans spending about two hours online. Social media has also played an important role in impacting the how people access information, with Americans reporting they spend an average of 1.7 hours a day using social media. Globally, social media has experienced similar trends, with adults reporting having accounts on over 5 social networks. In recognizing the importance of the online world to reaching consumers in the United States, companies spent $15 billion more on online ads versus television ads in 2016. Although television still remains popular, its projected growth rate of 1.3 percent from 2016-2021, pales in comparison to projected online ad spending which is expected to grow at a rate of 9.9 percent during the same period. Perhaps not surprisingly, it’s been estimated that in 2017, companies will spend $204 billion on digital ads, an increase of over $50 billion since 2015. Additionally, combined spending on mobile ads and social media, non-existent 15 years ago, is expected to reach $55 billion dollars in 2019, an over five time increase from 2016 levels of $10.9 billion.