The Circuit of Effects in Tracking Advertising Profitability

Events surrounding advertising flow from changes in product awareness and information to product evaluation. This flow resembles a circuit unique to the product being advertised. Tracking the intermediate effects of advertising provides early indications of needed corrective changes in ad programs and so allows corrective action to be taken before the market situation changes. In the corporate advertising effects circuit, tracking identifies points where resistance impedes the completion of the circuit of effects. Knowing such circuit connection points allows the individual copy-testing system to be customized, which facilitates the forecasting of tracking results. Survey tracking systems often are impeded by the insensitivity of attribute perception measures. This can be overcome by using the Compound Response Scale, which reflects the scale around a consumer's most likely perception of an attribute. The proof of ad effectiveness is found in promotion effectiveness. Successful advertising increases a brand's price elasticity among consumers who favor other brands and decreases price elasticity among those who favor the advertised brand.