|
|
Your Ad Here
By: Saritha Kuruvilla and Tessa Falk
Issue: 2010feb
Promotional products hold their own against major advertising media in an across-the-board comparison study
Advertising legend Steuart Henderson Britt once said, “Doing business without advertising is like winking at a girl in the dark. You know what you are doing, but nobody else does.” This is business 101. However, the way in which an advertiser chooses to market his or her message is where strategy, innovation and an in-depth knowledge of the audience comes into play.
So, which of the top advertising vehicles—TV, print, online or promotional products—is a front runner when it comes to overall effectiveness according to consumers?
A 2009 two-part study designed by PPAI and fielded through independent research company MarketTools, Inc. evaluated a cross-section of the American consumer population in regard to these top advertising mediums. (The first part of the study was reported in the January 2010 issue of PPB.)
Looking to uncover which vehicle ranked highest in terms of reach, recall and reaction from the consumer’s perspective, promotional products most often received top nods.
The Reach
Reach is a numbers game. The more times an advertiser exposes a message to the masses, the greater chance consumers will see it, which increases the propensity for a positive response. Or, so the theory goes.
Nearly half of the panel had received more than three promotional products within the last 12 months, while 56.20 percent reported having seen 11 or more TV commercials, 50 percent had seen three or more print ads and 53.05 percent had seen one online ad all within a two-week timeframe.
The Recall
Of greater importance than an advertiser’s reach is the recall. After all, widespread exposure is only effective if the audience connects and remembers the message. As such, participants were asked to identify the following in relation to the ads they’d seen:
1. Advertised company or brand
2. Advertised product/service/message
3. Type of promotional product received
Additionally, an evaluation was conducted to see how many respondents could remember both the advertiser/company and the product/service/message advertised and in the case of promotional products, the product received, as well.
Television Ads:
• Six out of 10 respondents remembered both the company/brand and the product/service/message advertised in the first commercial.
• More than half (56 percent) recalled both the company/brand and the product/service/message advertised in the second commercial.
Print Ads:
• Fifty-five percent of respondents remembered both the company/brand and the product/service/message advertised in the first print ad.
• More than half (51.2 percent) recalled both the company/brand and the product/service/message advertised in the second print ad
Online Ads:
• Nearly 3 out of 10 respondents remembered both the company/brand and the product/service/message advertised in the first online ad.
• Two out of 10 recalled both the company/brand and the product/service/message advertised in the second online ad.
Promotional Products:
• Nearly 70 percent of respondents remembered the brand/company and product/service advertised, as well as the type of promotional product for the first advertising message
• More than half recalled all three aspects for the second advertising message
Putting It All Together
In terms of maximizing one’s ROI, advertisers are primarily focused on consumers’ ability to recall the advertised company/brand, the advertised product/service/message, or, in an optimal setting, both. Below is a quick, side-by-side comparison of how the four advertising mediums performed in terms of recalling key characteristics:
First Ad |
|
|
|
|
| | Promotional Products | TV Commercials | Print Media | Online Advertising | | Recall Of Company/Brand Advertised In Ad 1 | 82.6% | 67.6% | 60.2% | 31.3% | | Recall Of Product/Service/Message Advertised In Ad 1 | 74.8% | 63.4% | 58.3% | 35.4% | | Recall Of Company/Brand And Product/Service/Message In Ad 1 | 73.5% | 60% | 50% | 28.7% | | | | | | | Second Ad | | | | | | | Promotional Products | TV Commercials | Print Media | Online Advertising | | Recall Of Company/Brand Advertised In Ad 2 | 66.2% | 60.7% | 54.9% | 22.9% | | Recall Of Product/Service/Message Advertised In Ad 2 | 61.6% | 58.2% | 53.3% | 27.5% | | Recall Of Company/Brand And Product/Service/Message In Ad 2 | 57.8% | 56.2% | 51.2% | 20.8% |
• The above tables reveal that promotional products—above TV, print and online advertising—consistently deliver on higher recall rates of the company/brand, the product/service or both.
• Online advertising maintained the lowest recall of all four mediums, which shows a disconnect with advertisers’ reliance on the medium’s low CPM.
Reaction:
While an advertiser’s reach is important and the recall even more so, it is the reaction of and action by the consumer after he or she has seen the message that translates directly into ROI. This section asked consumers which particular action he or she took after viewing and/or receiving (in the case of promotional products) the first and second ads.
REACTION TO FIRST AD
• Consumers made a purchase after receiving a promotional product (20.9 percent) more often than after viewing a print ad (13.4 percent), TV commercial (7.1 percent) or online ad (4.6 percent).
• More than half of promotional products recipients had a favorable impression of the advertiser, as opposed to 33.2 percent who’d seen a print ad, 27.7 percent who’d watched a TV commercial and 11.9 percent who’d seen an online ad.
• Nearly 60 percent of consumers reported using the promotional product several times, while 7.6 percent let someone else use the item and 4.4 percent passed the product onto someone else.
• 14.7 percent of participants reported contacting the promotional products advertiser—a reaction rate nearly three times greater than other media, which generated a 3-5 percent response.
• When respondents were asked if they’d not taken action after seeing the ad, TV viewers topped the list with nearly half (46.4%) saying they weren’t moved to action, followed closely by 41.1 percent for print media and 33.2 percent for an online ad. Only 23.1 percent of promotional products recipients reported not taking any action.
REACTION TO SECOND AD
• Similar to the reactions for ad one, consumers, once again, made a purchase in greater numbers after receiving a promotional product (18.1 percent) versus just 13.9 percent who did so after seeing a print ad, 10.8 percent who’d watched a TV commercial and 3.5 percent who’d seen an online ad.
• 48.2 percent of promotional products recipients had a favorable impression of the advertiser, as opposed to just 28.6 percent of those who’d seen a print ad, 24.5 percent who’d watched a TV commercial and 10 percent who’d seen an online ad.
• More than half (56.4 percent) of consumers used their promotional product several times, while 8.6 percent also let someone else use the item and 3.5 percent passed the product onto someone else.
• Nearly 20 percent of participants reported contacting the promotional product advertiser—a reaction rate four to 10 times higher than other media, which generated a 2-5 percent response.
• When respondents were asked if they’d not taken action after seeing the ad, TV viewers, again, topped the list with 41.8 percent saying they weren’t moved to action, followed closely by 38.4 percent for print media and 30.2 percent for an online ad. Only 17.9 percent of promotional products recipients reported not taking any action.
The Annoyance Factor: Low For Promotional Products
The mean score represents the annoyance factor for each medium. From an advertiser’s perspective, this information is critical as the key to success is to balance a media buy that reaches the target audience and generates a favorable reaction. However, if advertisers, regardless of the CPM, invest their dollars in a medium that actually turns consumers away, they may be doing more harm than good, not only to their bottom line, but to their brand, as well.
This table reveals the mean annoyance scores, as determined by 1,005 participants, for all media included in this portion of the study. The higher the mean score, the better the rating, meaning respondents found the medium to be less of an annoyance.
Media |
|
| (Scale: 1 = Annoying, 3 = Neutral, 5 = Not Annoying) | | | Mean Score | | TV | 2.69 | | Radio | 2.51 | | Online | 1.50 | | Print media | 3.20 | | Promotional products | 4.07 | | Direct mail (flyers, sale announcements, etc) | 2.79 |
Advertising Attributes: Consumer Appeal
There are many attributes/capabilities advertising mediums illustrate—the key is in understanding which ones convey the characteristics that are 1) most appealing to consumers and 2) in line with an advertiser’s objectives. This section asked respondents to choose one medium that best represents a specific attribute.
Question: Which medium do you have the greatest positive reaction to (feeling motivated, being appreciated, etc.)? |
| Direct Mail | 6.8% | | TV | 14.6% | | Print | 9.3% | | Promotional Products | 59.4% | | Online | 10% |
Question: Which medium do you believe is best-suited for creating loyalty to a cause/event? |
| Direct Mail | 7.3% | | TV | 12.8% | | Print | 8.3% | | Promotional Products | 60.1% | | Online | 11.5% |
Question: Which medium do you believe has the greatest ability to trigger instant advertiser recognition? |
| Direct Mail | 5.7% | | TV | 32.8% | | Print | 10.7% | | Promotional Products | 39.7% | | Online | 11% |
Summary
As Steuart Henderson Britt so imaginatively stated, advertising is crucial. However, of equal importance is the greater understanding of how consumers actually receive and perceive the vehicles which are to carry these advertising messages. Investing dollars without first doing the homework is still very much like winking at the girl—if the message doesn’t reach consumers, if they’re unable to recall it, if they’re not moved to action, if they become annoyed—the end result is still the same: everyone’s left in the dark.
This in-depth study sheds light on four of the most widely used advertising mediums, providing advertisers with much-needed insight and information when it comes to spending dollars and, more importantly, getting them back.
As always, TV commercials proved to be one of the top contenders when it comes to successful advertising, as did print media in specific categories. However, it’s the medium with the smallest, yet possibly the most profound foothold in the advertising arena that has shown the greatest gains: promotional products. An often overlooked, under-utilized medium, promotional products—according to consumers—prove once again that bigger is not always best when it comes to leaving a lasting impression.
The Panel:
Survey participants—a randomly selected group of consumers—representing a slice of the U.S. population, including age, gender and income level were asked the qualifying question: “Have you received a free promotional product within the last two years?” Only those participants—1,005—who had received a promotional product were eligible to participate in the two-part, electronic study.
The 1,005 participants answered questions regarding their exposure to promotional products and other advertising media in the study. Those who answered “yes,” (910) to a second qualifying question—“Have you received a promotional product within the last 12 months?”—completed additional questions relating specifically to this medium in part two. This portion tested their abilities to recall advertising messages seen on promotional products, TV, online and in print.
The Methodology:
Each advertising medium—TV, print, online and promotional products—was clearly defined and participants were asked questions pertaining to each individual medium. All questions were compulsory.
To examine the reach of each medium, respondents were asked how many TV, print and online ads they’d been exposed to within a previous two-week time period, as well as how many promotional products had been received during the last 12 months. As promotional products do not have the same reach as TV, print and online advertising, a 12-month recall time frame was allocated for this medium versus the two-week recall for the others.
To evaluate recall, participants were asked if they had seen two or more ads in each medium and were then asked to recall two ads and the corresponding company or brand advertised, the product or service advertised and, in the case of promotional products, the type of promotional products they had received for each. Each participant was also asked what action/reaction he or she had taken in response to each ad.
Key Findings On The Winning Medium
• An overwhelming majority (83 percent) of respondents stated they liked receiving promotional products.
• Promotional products had the highest recall ability when it came to remembering the name of the advertiser and the product/service.
• Promotional products resulted in greater action/reaction than other TV, print and online advertising. More than half of the respondents reported using the promotional product several times, which is commendable in the CPM category.
• Promotional products were found to be the least annoying advertising medium.
• Promotional products fared better than other media when evaluating which one best-illustrated certain advertising capabilities, including: providing an action incentive, creative message delivery, triggering instant advertiser recognition, generating a positive reaction, creating loyalty for a cause/event.
While, from an industry perspective the promotional products medium has, by design, always easily showcased some of these advertising capabilities, consumers were asked to share their unique, unbiased opinion in an effort to obtain a greater perspective for the benefit of distributors and end buyers.
Saritha Kuruvilla is PPAI’s manager of marketing research. Tessa Falk is PPAI’s marketing copywriter.
For information on obtaining the complete study, click on member/sales and marketing/research at www.ppai.org.
|
|
|
|