Effective AdvertisingSurvey

Chris Generose Ronald Fitser Philip Russin

OverviewExplorationData CollectionData Preparation

Graphs & Summary Measures of relevant dataAnalysisConclusionsRecommendationsSurvey Improvement

ExplorationAdvertising is used by almost every major

business to attract consumers.Each Ad is tailored to target a certain

demographic of consumersIt is used to promote the brand, product or

service, and company name.Many different forms of advertising make it

difficult for businesses to chose.With billions of dollars spent each year on

advertising, companies need to find the most effective type to invest in.

ExplorationEach type of Ad appeals to every consumer

differently.Must identify which type has the greatest

impact on influencing consumers’ purchase decisions.One of the most difficult activities for a

business/manager to decide upon.There has been much debate over the most

effective form of advertising.

Exploration - Internet AdvertisingThe internet is widely considered the most

measurable of advertising mediaIn its most common use, the term online advertising

comprises all sorts of banner advertisements, email advertising, in game advertising, and keyword advertising.

Internet advertising stimulates off-line sales tooSocial media marketing is a powerful strategy that will

get your business attention and massive amounts of traffic.

There is no other low-cost promotional method out there that will easily give you large numbers of visitors, some of whom may come back to your website again and again.

Internet Advertising (cont.) Online advertising has been found to be

effective both in communicating corporate messages and in strengthening brand equity.

Additionally, the internet offers more freedom of action for consumers, who can select a time and place for their website browsing.

It is also the cheapest type of ad

Exploration – TV AdvertisingA majority of marketers said TV advertising has

decreased in effectiveness over the past couple of years, according to a study by the Association of National Advertisers and Forrester ResearchANA's 2008 TV & Everything Video Forum in New

York, found that 62% of marketers held that opinion

The migration of some of that ad spending to the Web continues, with 87% of the respondents saying that they would spend more on Web advertising this year than last year.

Viewing of TV commercials tends to be passiveMost expensive type of ad

Exploration – Print AdvertisingViewing print ads is more activeBelieved that readers will remember the ads in print

media because they are aware of what they are reading and seeing.

The process of scanning the pages means constantly making decisions, with relatively high attention, and this active selection is maintained throughout the reading of the issue.

Reading a magazine requires more mental engagement than viewing television.

Moreover, exposure to a magazine ad is under the reader’s control, whereas exposure to a TV commercial is not in the viewer’s control.

Relatively cheap

Exploration – Radio AdvertisingListening is viewed as passiveRadio is near to the point of sale. Radio

addresses its target groups immediately prior to purchase and therefore provides the decisive impulse for the sale.

Radio usage is especially high during daytime – when heads of household do their shopping – so radio is often the medium used last before purchase.

Relatively cheap

QuestionsOverall Question: What is the most effective

form of advertising media used to influence consumers’ purchase decisions?

Does media exposure influence consumers’ purchase decisions?

Is there a correlation between exposure and consumer’s perception of effectiveness?

Research Hypothesis: Internet marketing is the most effective form of advertising media used to influence consumers’ purchase decisions.

Relevant FactorsAge & GenderExposure vs. Effectiveness

Exposure to every different type of media on a daily basis How much exposure?

Influence vs. EffectivenessAd’s influence & impact on consumers’ purchase decisions

Debate over which advertising media is the most effectivePrint & Radio ads have lost their effectiveness and are being

considered “obsolete”TV ads are rapidly losing their effectivenessInternet ads are becoming more popular and have been

assumed to be the most effective

Data Collection10 Question SurveyTarget Audience:

Anyone 18 & older who makes purchase decisions Sampling Plan:

Random Sample based on Age (18 & older)Summary of Respondents:

Population Size – Roughly 0ver 200 millionSample Size - 112 Responses

Survey Distribution: Online Survey utilizing Survey Monkey (47)Paper Survey handed out Face-to-Face on Wilkes

Campus (65)

Data Preparation:Survey Questions 1 & 2

Survey Question 3

Survey Question 4

Survey Question 5

Survey Question 6

Survey Question 7

Survey Question 8

Survey Question 9

Print: 28.4% (31) Rank 3 TV: 44.1% (49) Rank 1 Radio: 54.1% (59) Rank 4 Internet: 27.7% (31) Rank 1, 27.7% (31) Rank 2

Survey Question 10

Analysis:2SHT for Mean (Gender)

HYPOTHESIS TESTSNULL : 1 = 2m m Gender does NOT impact the perception of Internet effectiveness

ALTERNATIVE:

1 <> m2m

Gender DOES impact the perception of Internet effectiveness  

Does Gender impact the perception of Internet Effectiveness?sample means stdev

sample size

test statistic (obs) 1.143 Men 2.80 1.069222 44critical measure 1.960 Women 2.56 1.070393 68

std error0.206958

obs > critical? NO

one-tailed or two-tailed?p-value 0.253 2a-level 0.050

p-value < a-level? NO

Accept Null!!Conclusion: Gender does NOT impact the perception of Internet Effectiveness.

2SHT for Mean (Age)HYPOTHESIS TESTS

NULL : 1 = 2m mAge does NOT impact the perception of Internet effectiveness  

ALTERNATIVE: 1 <> 2m mAge DOES impact the perception of Internet effectiveness  

Does Age impact the perception of Internet Effectiveness?sample means stdev

sample size

test statistic (obs) 3.651 Youth 2.95 0.975173 65

critical measure 1.960 Elders 2.23 1.067561 47

std error0.197177

obs > critical? YES

one-tailed or two-tailed?

p-value 0.000 2

a-level 0.050

p-value < a-level? YES

Reject Null!!Conclusion: Age DOES impact the perception of Internet Effectiveness.

2SHT for Proportion (Age)HYPOTHESIS TESTS x-value sample 1 30

x-value sample 2 20

sample size 1 47 sample size 2 65pooled proportion 0.446 proportion 1 0.6383 proportion 2 0.3077

Elder Youth

std error 0.095

Does Age impact the perception of Internet Effectiveness? (Rating of 1 & 2)

NULL: 1 <= 2p pElders do NOT view the internet as more effective compared to youths

ALTERNATIVE: 1 > 2p pElders DO view the internet as more effective compared to youths

one-tailed or two tailed? 2

test statistic (obs) 3.473

critical measure 1.960 |obs| > critical?? Yes

p-value 0.001 Yes

a-level 0.050 p-value < a-level?? Reject Null!!

Conclusion: Elders DO view the internet as more effective compared to youths.

2SHT for Mean (Exposure)HYPOTHESIS TESTS

NULL : 1 = 2m mExposure does NOT impact the perception of Internet effectiveness

ALTERNATIVE: 1 <> 2m mExposure DOES impact the perception of Internet effectiveness  

Does Internet Exposure impact the perception of Effectiveness?sample means stdev

sample size

test statistic (obs) (2.271) Exposure 2.36 1.085304 112critical measure 1.960 Effectiveness 2.65 0.816497 112

std error0.128332

obs > critical? YES

one-tailed or two-tailed?p-value 0.023 2a-level 0.050

p-value < a-level? YES

Reject Null!!Conclusion: Exposure DOES impact the perception of Internet Effectiveness

2SHT for Proportion (Exposure)HYPOTHESIS TESTS x-value sample 1 36 x-value sample 2 15

sample size 1 57 sample size 2 55pooled proportion 0.455 proportion 1 0.6316 proportion 2 0.2727

Hours 0 to 10 Hours10 to

21std error 0.094

Does Internet exposure impact the perception of effectiveness? (Ratings 1 & 2)NULL: 1 <= 2p p Exposure does NOT impact effectiveness  ALTERNATIVE: 1 > 2p p Exposure DOES impact effectiveness  

one-tailed or two tailed? 2

test statistic (obs) 3.812

critical measure 1.960 |obs| > critical?? Yes

p-value 0.000 Yes

a-level 0.050 p-value < a-level?? Reject Null!!!

Conclusion: Internet exposure DOES impact effectiveness. It seems that the less exposure the more effective.

Simple Linear RegressionSUMMARY OUTPUT

Internet Effectiveness (Y) & Internet Hours (X)Regression Statistics

Multiple R 0.42173453642% Overall Correlation - Rather Strong Relationship

R Square 0.17786001917.7% of the variability in Internet Effectiveness can be explained using Internet Hours.

Adjusted R Square 0.170386019Standard Error 0.975876216Can be off by .97 HoursObservations 112

Null: There is NO relationship between Internet Hours & Effectiveness.

ANOVA Alt: There IS a relationship between Internet Hours & Effectiveness.  df SS MS F Significance F

Regression 1 22.66286011 22.66286011 23.79716661 0.000003638

Residual 110 104.7567827 0.952334389

Model is significantReject Null!!

Total 111 127.4196429     

  Coefficients Standard Error t Stat P-value Lower 95%

Intercept 1.663850539 0.222524022 7.477172699 0.0000000000196 1.222860172

Internet Hours 0.417542414 0.085592945 4.878233964 0.00000364 0.247917291Internet Effectiveness of 1.66 will have zero Internet HoursFor each 1 point increase in Internet Effectiveness, Internet Hours will increase by 4.1

ConclusionsGender does not impact the perception of Internet

effectivenessAge does impact the perception of Internet effectiveness

Older age groups ranked Internet advertising as the most effective

Exposure does have an impact on the perception of Internet effectivenessMajority of people surveyed are exposed to the Internet on a

daily basis and less equals more.Based on the survey data, our research hypothesis is

false!Internet advertising is not the most effective type of media

used to influence consumers’ purchase decisionsTV advertising is the most effective

RecommendationsIf you had to chose only one type of

advertising, pick TV to influence consumers’ purchase decisions.

Use print & radio advertising sparinglyAlso try utilizing a combination of TV and

Internet advertising for increased effectivenessFor older age groups, utilize Internet

advertisingFor younger age groups, utilize TV advertising

Survey ImprovementsLarger Sample Size

More DiversityNarrow Focus to just Internet Effectiveness or TV vs.

InternetExpand & Increase the Scope of Survey Questions:

How the different types of advertising media affect purchases of certain goods & services. (electronics, appliances, food, sports, etc.)

How different aspects about ads such as celebrity endorsements, brand image, messages, etc. affect consumer purchase decisions.

Is there a benefit to utilizing a number of different advertising media? (i.e. Cross-media advertising)Do more ads = more effective?

THANK YOU!!!

ANY QUESTIONS