An Integrated Procedure to Pretest and Select Advertising Campaigns for TV
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- Krieger, A., Lodish, L. & Hu, Y. Cust. Need. and Solut. (2016) 3: 81. doi:10.1007/s40547-016-0065-4
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Current practice of TV advertising campaign generation usually starts with a small number of concepts and ends up with a final copy on TV, a funneling process that narrows down quickly without reliably testing the ad concepts’ effectiveness in market. Is this practice optimal? Should more ad copies be generated for testing? We propose a model and evaluation procedure to improve the ad copy generation and evaluation process. We conceptualize the process as first generating a number of alternative advertising campaigns from advertising creative and production sources, screening those campaigns with some advertising pretest methodologies which have specified validity and reliability, and then picking the best campaign based upon the screening. Our method involves variability and distribution of campaign profits, which makes it possible for ad executives to take the risk of investment into consideration. As an empirical illustration, based on estimates of the variability of profitability of alternative TV campaigns by a small sample of senior marketing executives for consumer products, we show a large sum of incremental profit could potentially be obtained if TV advertisers would screen alternative TV campaigns with pretests of modest reliability and validity. We also show how the pretesting community can estimate the validity and reliability of their tests.