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indiantelevision.com's Media, Advertising & Marketing Watch
 
Effective ads propel economic growth - CNBC NFO poll
 
The Indiantelevision.com Team

(27 March 2003 6:00 pm)
 

MUMBAI: Even as acclaimed advertising veteran and specialist in "Effective Advertising" - Prof John Philip Jones of Syracuse University reiterated that the effectiveness of advertising can be measured by scientific methods, the CNBC NFO India effectiveness survey reaffirmed the same. The poll featured the views of 150 respondents (advertising and marketing professionals) in Delhi and Mumbai.

The survey findings were shared during the course of an interactive session with Prof Jones (26 March 2003) held by CNBC as part of its efforts to promote its marketing and advertising-magazine Storyboard. The parameters included "completely agree"; "somewhat agree"; "neither agree or disagree"; "somewhat disagree"; and "completely disagree".

The findings of the survey are as follows:

* Nearly 78 per cent of marketers somewhat or completely agree that advertising must become more accountable. The corresponding figure for ad agency professionals is 66 per cent.

* Around 48 per cent of the ad agency professionals and 38 per cent of advertisers are of the view that the effectiveness of advertising can never be accurately measured. In fact, 81 per cent of the marketers somewhat agree or completely agree that effectiveness can never be accurately measured. The corresponding figure for ad agency professionals is 68 per cent.

* A majority of the advertisers (40 per cent) feel that advertising in India is less sophisticated than in the developed economies. More than 20 per cent of the ad agency professionals agree with them. A larger proportion of ad agency professionals (32 per cent) somewhat agree that Indian advertising is less sophisticated.

* A majority of advertisers debunk the view that it is not possible to discipline the creative contribution without destroying it at the same time. Ad professionals are divided (18 per cent agreed and 28 per cent completely disagreed). Only two per cent of the marketers think strongly that disciplining the creative contribution necessarily destroys creativity.

* Both ad agency professionals (36 per cent) and advertisers (40 per cent) completely quash the belief that an effort to make advertising effective destroys the creativity.

* Both groups strongly reject the statement that advertising is an expense and not an investment - 56 per cent of ad agency professionals and 47 per cent of advertisers.

* A majority of marketers (47 per cent) endorse pre-testing methods for weeding out ineffective ads whereas the ad fraternity showed a split response. Just 24 per cent of ad agency professionals agree.

* More marketers (22 per cent) agree that it is impossible to measure the short term effects of advertising effectively. Nearly 50 per cent of the ad professionals somewhat agree with this notion.

* Ad agency professionals (40 per cent) agree that marketers shouldn't make any tactical reductions in their ad spends in an attempt to boost profits. Marketers however, disagree with this view. Only 15 per cent of marketers uphold the view.

* There are split views amongst the fraternity that small brands must over-advertise in order to be noticed; and about the fact that a single advertising exposure can produce sales, more exposure generate diminishing returns. Marketers, especially disagree with the later.

* More number of marketers disagree with the fact that a vast majority of promotions (despite the high sales return they achieve) produce an actual reduction in the manufacturers profit.

* A majority of marketers agree with the fact that research lessons learned at great expense in large countries can also be applied to small countries. The response is divided amongst the advertising community.

* Ad agency professionals are divided in their opinion of the fact that advertising (being commercial in nature) should be judged by commercial criteria. A majority of marketers endorse the view.

* Nearly 80 per cent of marketers disagree that more advertising exposures can diminish sales (something which has been proven abroad)

* Both the parties endorse the view that effectiveness of advertising is accurately measurable through market research. This indicates that the future of market research in India is bright.

* Both the advertisers and the ad agency professionals rubbish the statement that campaigns become effective not due to the quality of the creative but due to effective use of media.

* There was a general acceptance of the fact that effective advertising contributes strongly to the growth of the economy.

Also read
Successful brands under spend but capture minds - Prof Jones

 
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