Estimation of the Effectiveness of BTL Communications

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The science of measuring the effectiveness of direct advertising has a rather long history with established methodology, instruments and even theory and literature. Nevertheless, the BTL sector has been a closed subject up to now due to the lack of reliable marketing data about BTL communications. When it first arrived on the scene, BTL activity monitoring was a breakthrough in this sphere as it provided detailed information about the different types of BTL communication carried out by major players in particular markets as well as about the funds spent by companies and brands on BTL activities.

 

Based on this data, our company developed a unique methodology for estimating the communicative and economic effectiveness of BTL efforts. As a criteria for gauging effectiveness, conventional indexes (ROI, brand awareness, brand loyalty, standard consumption indicators) are used alongside original indicators. The method involves obtaining the main mediametric indexes, to which media planning specialists are more accustomed.

Analysis of effectiveness may concern not only particular companies and brands (or brands grouped by price segments), but the whole industry in general.

 

The novelty of the research lies in its ability to provide models of effectiveness for particular periods of time. Such models are average values of particular effectiveness indexes for appointed groups of companies, brands, and the whole industry. To analyze research data, the “average value bar” is used. This makes it possible to single out brands whose effectiveness or lack of effectiveness is strikingly different from most others’.

 

With the creation of a detailed territory description, outlining the various mechanisms and creative features of a company’s BTL activities, as well as the singling out of the most effective trademarks (with the help of the assessment methodology described above) we are able to interpret and understand brands more accurately and, therefore, create optimal marketing strategies for the brands going forward Moreover, this advanced methodology allows us to estimate the financial effectiveness of specific complex campaigns of the brand united by a particular creative and ideological concept. This is a new development in brand research. Previously, similar assessment was conducted only for particular types of local promotional campaigns and was limited by time as well as by the particular sales outlets.

 

The suggested methodology for the assessment of effectiveness is:

-Universal, as it can be used for estimating market trends, the effetiveness of particular brands’ and specific local campaigns. Its use can also be linked to a single sales outlet.

- Easily adjustable and modifiable, as it may well use external data (data from other research) concerning such criteria as customer loyalty or brand awareness.