Exam 3 Study Guide COMM 320 Dr Ahern 1 Measuring campaign effectiveness a Measurement assigning numbers to observations according to specific rules b Types of research methods i Qualitative Focus groups 1 2 One on one interviews 3 Observation 4 Word association 5 Drawing collages a NO NUMBERS IN DATA a Random samples of audiences a Allows researcher to control for other variables ii Quantitative 1 Surveys 2 Experiments 3 Lab vs Field a b Lab more control lacks validity Field less control more validity iii Relationship between correlation and causation 1 Correlation is not causation 2 Experimental method provides strongest support for causal relationships because the researcher can control for and rule out other variables that may be causing or affecting observed relationships c Typical measurement factors i Advertising production 1 Media placements 2 Program rating share 3 Cost per thousand CPM 4 Cost per point CPP 5 Number of different ad executions ii Awareness knowledge attitude change intention 1 Brand awareness 2 Brand feature knowledge 3 Attitude toward the brand 4 Increased intention to purchase iii Behavioral outcomes Increased sales 1 2 Website visits 3 Coupons redeemed iv Behavioral measures 1 Cost per Order CPO allows for comparison of different advertising channels or programs to see which is more efficient in getting orders a Cost Orders CPO 2 Return on Investment ROI allows for direct comparison of all types of investments a d Physiological Measures Gain Cost Cost ROI i Pupil Dilation designed to measure dilation and constriction of the pupils of the eyes in response to stimulation 1 Dilation suggests a stronger interest in an ad or implies arousal or attention getting capabilities very costly ii Galvanic Skin Response measures the skin s resistance or conductance to a small amount of current passed between 2 electrodes 1 Response to stimuli activates sweat glands which in turn increases the conductance of the electrical current might reflect a reaction to advertising iii Brain waves iv Eye tracking more commonly used in which viewers are asked to view an ad while a sensor aims a beam of infrared light at the eye 1 The beam follows the movement of the eye and shows the exact spot where the viewer is looking and for how long can identify strengths and weaknesses 2 Advertising and promotion regulation a Basic levels of regulation i Natural market forces Tend to regulate advertising through hands off laissez faire approach 1 2 Assumes quality products and good advertising will prevail and bad products 3 and deceptive advertising will fade away Problem market forces take time to work allowing bad actors to victimize consumers in the short run ii Private policy 1 Advertisers and agencies internal regulatory policies 2 Media Clearances a Broadcasters are awarded licenses by the Federal Communications Commission based in art on how well they serve public interest convenience and necessity b CBS decided to air the Tim Tebow pro life ad during the 2010 Superbowl but not a gay dating website commercial c Many agencies have private policies about what they will and won t do iii Organized market forces Professional association self regulation 1 2 Boycotts and protests 3 Many associations American Bar Association American Medical Association have rules about what how members can advertise 4 While ostensibly to protect consumers from unscrupulous practitioners these laws more often limit competition These types of advertising restrictions are no longer legal Supreme Court decisions 1 Industry self regulation function is to investigate complaints about advertising 2 Most cases involve claim substantiation evaluating whether the advertiser had enough information or a good justification for making a claim The idea of enlightened self interest whereby industries regulate themselves to avoid government intervention iv Self regulatory forces a Example movie ratings G PG R 4 Does not involve the government v Governmental forces 5 3 1 2 The most coercive type of regulation Federal Trade Commission adjudicates complains form competitors consumers or any other source FTC staff on a case by case basis b Advertising self regulatory forces i National Advertising Review Council NARC decisions are non binding 1 Formed by American Advertising Federation AAF American Association of Advertising Agencies AAAA and Association of National Advertisers ANA ii National Advertising Division NAD of the Council of Better Business Bureaus CBBB 1 Operates through a National Advertising Review Board NARB i Main self regulatory body for advertising industry b Children s Advertising Review Unit CARU i Focuses on advertising to minors iii The NARC operates in cooperation and conjunction with the NAD to self enforce standards of advertising fairness and decency 1 2 The NARB adjudicates cases but compliance with findings is voluntary the NARB cannot fine or enforce findings Parties to NARB disputes can still sue in court if they do not agree with findings a Most court cases involving advertising fairness are filed under the Lanham Act which modified the Federal Trademark Act in a way that makes this type of lawsuit possible c Sources of NAD cases i Competitive challenges by far the largest source of cases ii NAD monitoring iii Local BBB challenges iv Consumer challenges d Federal agencies involved in regulating agencies i Federal Trade Commission FTC 1 Agency primarily responsible for regulating advertising practices a FTC can enforce compliancy through i After the ad has already run 1 Cease and desist orders 2 3 Corrective advertising Fines ii Preventative 1 Affirmative disclosure revelation of info that may be damaging to the one revealing it such as admissions of limitations in an offer or product by an advertiser ii Federal Communications Commission FCC iii Bureau of Alcohol Tobacco and Firearms BATF iv US Postal Service v Food and Drug Administration FDA e First Amendment protection of advertising i ii Freedom of speech or expression is the most basic federal law that governs advertising and promotion Speech promoting a commercial transaction is protected by the First Amendment but must be truthful 1 Affirmed by the US Supreme Court in the Central Hudson case which also 2 established a 4 part test as to what constitutes commercial speech 4 part test a b c d Speech concerns lawful and non misleading activity The asserted government interest is substantial The regulation directly advances the government