Advertising is aimed at improving the sales volume of a concern so its effectiveness can be evaluated by its impact on sales.

Most of the managers believe that the advertisement directly affects the sales volume and hence they evaluate the effectiveness of the advertising campaign by the increase in the sales volume. Read More: Measuring Advertising Effectiveness There may be two types of measures Direct measures and, Indirect measures. 1. Direct Measures of Advertising Effectiveness Under direct measures, a relationship between advertising and sales is established. A comparison of sales of two periods or two periods or two markets may be done and the corresponding changes may be noted. The following are some of the methods that are generally used in measuring that advertising effects. i. Historical Sales Method Some insights into the effectiveness of past advertising may be obtained by measuring the relationship between the advertising expenditure and the total sales of the product. A multiple regression analysis of advertising expenditure and sales over several time periods may be calculated. It would show how the changes in advertising expenditure have corresponding changes in sales volume. This technique estimates the contribution that advertising has made to explaining in a co relational manner rather than a casual sales, the variation in sales over the time periods covered in the study ii. Experimental Control The other measure of advertising effectiveness is the method of experimental control where a casual relationship between advertising and sales is established. This method is quite expensive when related to other advertising effectiveness measures yet it is possible to isolate advertising contribution to sales. Moreover this can be done as a pre-test to aid advertising in choosing between alternative creative designs. Media schedules expenditure levels or some combination of these advertising decision areas. One experimental approach to measuring the sales effectiveness of advertising is test marketing. Before-after with Control Group Design: This classic design uses several test and control cities in this design two types of cities are selected. Cities in which advertising campaigns are affected may be named as test cities and other cities may be called central cities. First of all, the normal sales level is calculated for both type of cities prior to advertising campaign, and then the advertising campaign is presented to the test cities and not the central cities. The effect of advertising campaign, can then, be measured by subtracting the amount of post campaign figure of sale from the pre campaign sale figures in test cities

Multivariable Experimental Designs: While the experimental design discussed above yields a reasonably accurate estimate of the effects of the advertising on sales, it is not successful in explaining the success or failure of the campaign itself. Multivariable designs Produce these explanations and are, therefore used by some very large firm because of their diagnostic value.The power of this multivariable factorial design is explained by G.H.Brown, former Fords Director of Marketing Research. For any single medium, eight possible geographic areas have been exposed and eight have not been exposed. Thus, in this experimental model it is possible to evaluate how each individual medium behaves alone and in all possible to evaluate how each individual medium behaves alone and in all possible combinations with other media. 2. Indirect Measures of Advertising Effectiveness As it is very difficult to measure the direct effect of advertising on companys profits or sales, most firms rely heavily on indirect measures. These measures do not evaluate the effects of advertisements directing on sales or profits but all other factors such as customer awareness or attitude or customer recall of advertising message affect the sales or profits or goals of the business indirectly. Despite the uncertainties about the relationship between the intermediate effects of advertising and the ultimate results, there is no other alternative but to use indirect measures. The most commonly used measures are;

Exposure to Advertisement: In order to be effective, the advertisement must gain exposure. The management is concerned about the number of target audiences who see or hear the organization message set in the advertisement. Without exposure, advertisement is bound to failure. Marketers or advertisers may obtain an idea of exposure generated by the medium by examining its circulation or audience data which reveal the number of copies of the magazine, newspaper or journal sold the number of persons passing the billboards or riding in transit facilities, or the number of persons living in the televiewing or radio listening area, and the number of persons switching on their T.V. and radio sets at various points of time. This number can be estimated by interviewing the numbers of the audience for different media.

Attention or Recall of Advertising Message Content: This is one of the widely used measures of advertising results. Under this measure, a recall of the message content among a specified group or groups or prospective customers is measured within 24 hours of the exposure of the advertisement. Attention value is the chief quality of the advertising copy the advertisements cannot be said to be effective unless they attract the attention of the target consumers. There are two methods for evaluating the attention getting value of the advertisements. One is pre-test and the other is post-test. In a pre-test evaluation, the consumers are asked to indicate the extent to which they recognise or recall the advertisement, they have already seen. This test is conducted in the laboratory setting. Here consumers read, hear or listen to the advertisement and then researchers ask question regarding the advertisement just to test the recall and then evaluate it. In post-test method, the consumers are asked questions about the indication of recognition or recall after the advertisement has been run. These measures assume that customers can recall or recognize what they have viewed or listened to. Various mechanical devices are being used in the western countries which provide indices of attention such as eye-camera etc.

Brand Awareness: The marketers who rely heavily on advertising often appraise its effectiveness by measuring the customers awareness about the particular product or brand. The assumption of this type of measure is that there is a

direct relationship between the advertisements and the awareness. This type of measure is also subject to the same criticisms as is applicable to direct measures of effectiveness (sales measures because awareness is also not the direct result of the advertisements. It is also affected by many other factors. But, for new products, changes in awareness can often be attributed to the influence of advertising. Comprehension: Consumers generally use advertisements as a means of obtaining information about the product, brand or the manufacturer. They cannot be informed unless they comprehend the message (grasp the message mentally and understand it fully). Various tests for valuating comprehension are available. One is recall tests an indicator of comprehension because it is evident that consumers recall what they comprehend. Another measure of the variable is to ask questions about subjects how much they have comprehended a message they have recently heard or seen. One may employ somewhat imprecise test of the comprehension of a newspaper and radio advertisement. One may ask typical target consumers from time to time such questions like what did you think of our new commercial? and Did it get the message across? The answers of these questions will provide sufficient insight into advertising decision making. Attitude Change: Since advertising is considered to be one way of influencing the state of the mind of the audience towards a product, service or organisation, the results are very often measured in terms of attitudes among groups exposed to advertising communication. Several measures are used ranging from asking the questions about willingness to buy the likelihood of buying to the measurement of the extent to which specific attributes (such as modern or new) are associated with a product. Action: One objective of advertisement may be assumed to be to stimulate action or behavior. The action or intention to take an action may be measured on the intention to buy measuring instrument. Under this type of measure, consumers are asked to respond why they are interested in purchasing the product or brand. One type of action that advertisers attempt to induce is buying behavior. The assumption is that if an increase in sales follows a decrease in advertising expenditure, the change in sales levels are good indicators of the effectiveness of advertising. Logic suggests that measurement of sales is preferable to other measurements.

Thus, these above measures (direct or indirect) are used to evaluate the effectiveness of advertisements. It seems from the analysis of the above methods of measuring effectiveness that directly or indirectly changes in sales or profits are taken as the measuring rod of the effectiveness of the advertising. 2.
The work of a tailor is to collect the raw material, find matching threads, cut the cloth in desired shape, finally stitch the cloth and deliver it to the customer. Advertising Agency is just like a tailor. It creates the ads, plans how, when and where it should be delivered and hands it over to the client. Advertising agencies are mostly not dependent on any organizations. These agencies take all the efforts for selling the product of the clients. They have a group of people expert in their particular fields, thus helping the companies or organizations to reach their target customer in an easy and simple way. The first Advertising Agency was William Taylor in 1786 followed by James Jem White in 1800 in London and Reynell & Son in 1812.

Role of Advertising Agencies

1. 2. 3. 4. Creating an advertise on the basis of information gathered about product Doing research on the company and the product and reactions of the customers. Planning for type of media to be used, when and where to be used, and for how much time to be used. Taking the feedbacks from the clients as well as the customers and then deciding the further line of action

All companies can do this work by themselves. They can make ads, print or advertise them on televisions or other media places; they can manage the accounts also. Then why do they need advertising agencies? The reasons behind hiring the advertising agencies by the companies are:

The agencies are expert in this field. They have a team of different people for different functions like
copywriters, art directors, planners, etc.

The agencies make optimum use of these people, their experience and their knowledge. They work with an objective and are very professionals. Hiring them leads in saving the costs up to some extent.
There are basically 5 types of advertising agencies.

1. Full service Agencies Large size agencies. Deals with all stages of advertisement. Different expert people for different departments. Starts work from gathering data and analyzing and ends on payment of bills to the media
people.

2. Interactive Agencies Modernized modes of communication are used. Uses online advertisements, sending personal messages on mobile phones, etc. The ads produced are very interactive, having very new concepts, and very innovative. 3. Creative Boutiques Very creative and innovative ads. No other function is performed other than creating actual ads. Small sized agencies with their own copywriters, directors, and creative people. 4. Media Buying Agencies Buys place for advertise and sells it to the advertisers. Sells time in which advertisement will be placed. Schedules slots at different television channels and radio stations. Finally supervises or checks whether the ad has been telecasted at opted time and place or not. 5. In-House Agencies As good as the full service agencies. Big organization prefers these type of agencies which are in built and work only for them. These agencies work as per the requirements of the organizations.
There are some specialized agencies which work for some special advertisements. These types of agencies need people of special knowledge in that field. For example, advertisements showing social messages, finance advertisements, medicine related ads, etc.

3. Aristotle said, Beauty is a greater recommendation than any letter of introduction.

India is a country where people love to live in dreams. They worship celebrities. celebrities which might be cricket stars like Sachin Tendulkar, Mahinder Singh Dhoni or Film Stars like Shah Rukh Khan or John Ebrahim. They treat them as God. Marketers use this very preposition so as to influence their target customers may be existing or potential ones. For this they rope in these celebrities and give them whopping amount of money. They believe that by doing this they can associate their products with their target customers. This is called celebrity endorsement.

CASE STUDY I: BRANDS ENDORSED BY DHONI The young, handsome, self controlled, composed, autonomous cricket captain of Indian young brigade is one of the most famous images in Indian market. In India, cricket is religion and cricketers are placed among the gods. Dhoni is a brand in himself and a attractive choice for the marketers as a brand endorser. Dhoni has been successfully used indifferent advertisement as a brand ambassador. Few of the brands that Dhoni is endorsed are, the famous Youngastan advertisement of Pepsi, Rebooks ad of Your Move and funky ad of Lays with Saif Ali Khan. BRANDS ENDORSED BY DHONI 1. PEPSI: YOUNGISTAN MERI JAAN Pepsi has always tried to tap the young segment of India through their promotions. Beginning from the famous Ahaa series of ads to the Yah Dil Mange More to todays Youngistan

Meri Jann, Pepsi has always made ads to attract the youth. They have always chosen the young stars, may not be established, as a face of young India. So the main reason of using Dhoni is same in case of the latest Youngistan Meri Jann ads. BRAND PERSONALITY: 1. The brand is vibrant, energetic. 2. Pepsi is an intelligent brand which attaches itself with fun and enjoyment. 3. It also shows its daring attitude, mischievous behavior and outgoing nature. 4. There is nothing opaque about the product and brand.

ENDORSERS PERSONALITY 1. Dhoni is a young guy with a daring personality. 2. He is intelligent yet humble and full of life. 3. He is the leader of young team, fun loving young gentleman with transparent character. Now, Pepsi has chosen Dhoni as they think.. Celebritys fit with the brand image : (5/5) As mentioned earlier, the virtue of Dhoni matches with the embedded traits of the soft drink. Either of the personalities, be it Dhonis or be it Pepsis, joins as two consecutive part of a jigsaw puzzle. So Dhoni is a perfect match for Pepsis brand image CelebrityTarget audience match: (5/5)

Young generation of India love Dhoni, worship the man, salute his virtue and get thrilled to experience his presence. The young generation nowadays prefers to be like Dhoni if not Sachin. So Dhoni is a idle to the young generation of India and using Dhoni as a brand endorser is a master stroke by Pepsi. Celebrity associated values: (5/5) The value associated with Dhoni is very high. Dhonis attitude, his transparency, maturity acted as a magnet which attract not only the youth but also the older generation. So Dhonis presence in an advertisement creates a positive vibe for the product in the mind of consumer which force them to think about the endorsed product. Costs of acquiring the celebrity: (3/5) Cost to use Dhoni as the endorser of Pepsi is very high but as a multinational company it is insignificant if they consider the high brand awareness they are creating through Dhoni. 34 | P a g e Celebrity Endorsements & Brand Building Celebrity controversy risk: (5/5) It is nil as Dhoni is known as good boy among the celebrities. So low controversy level increase the brand image of self as well as of Pepsi. Celebrity popularity: (5/5) It is already mentioned that Dhoni is one of the most popular persons in India. One can find a man who might not know how our PresidentPratibha Patil looks like, but he must be a fan of Dhoni. This popularity reduce Pepsis half of job as an advertiser. Celebrity physical attractiveness: (4/5) As a sportsman he possesses an athletic body. But in addition to that he is manly looking and with a macho image and a deadly smile, which makes him more attractive and appealing.

 Celebrity credibility: (5/5) Celebrity is being judged that whether he has the right to appear in the advertisement and indirectly advice the consumers what to do and what not to. Dhoni is captain of Indian cricket team and not only that, he has proven his capability of performing under immense pressure several times which is obviously created creditworthiness. Celebrity prior endorsements: (4/5) Prior advertisements with several companies has proven the spontaneity, acting ability and confidence in front of camera. So as all the points that make an Ad popular and successful among the target audience is above average. So there is an ample amount of chances that the ad published in the print media, get the success.

Kinds of Celebrity - Their Impact on Brands

ENDORSERS PERSONALITY 1. Dhoni is a young guy with a daring personality. 2. He is intelligent yet humble and full of life. 3. He is the leader of young team, fun loving young gentleman with transparent character. Now, Pepsi has chosen Dhoni as they think.. Celebritys fit with the brand image : (5/5) As mentioned earlier, the virtue of Dhoni matches with the embedded traits of the soft drink. Either of the personalities, be it Dhonis or be it Pepsis, joins as two consecutive part of a jigsaw puzzle. So Dhoni is a perfect match for Pepsis brand

image CelebrityTarget audience match: (5/5) Young generation of India love Dhoni, worship the man, salute his virtue and get thrilled to experience his presence. The young generation nowadays prefers to be like Dhoni if not Sachin. So Dhoni is a idle to the young generation of India and using Dhoni as a brand endorser is a master stroke by Pepsi. Celebrity associated values: (5/5) The value associated with Dhoni is very high. Dhonis attitude, his transparency, maturity acted as a magnet which attract not only the youth but also the older generation. So Dhonis presence in an advertisement creates a positive vibe for the product in the mind of consumer which force them to think about the endorsed product. Costs of acquiring the celebrity: (3/5) Cost to use Dhoni as the endorser of Pepsi is very high but as a multinational company it is insignificant if they consider the high brand awareness they are creating through Dhoni. 34 | P a g e Celebrity Endorsements & Brand Building Celebrity controversy risk: (5/5) It is nil as Dhoni is known as good boy among the celebrities. So low controversy level increase the brand image of self as well as of Pepsi. Celebrity popularity: (5/5) It is already mentioned that Dhoni is one of the most popular persons in India. One can find a man who might not know how our PresidentPratibha Patil looks like, but he must be a fan of Dhoni. This popularity reduce Pepsis half of job as an advertiser. Celebrity physical attractiveness: (4/5)

As a sportsman he possesses an athletic body. But in addition to that he is manly looking and with a macho image and a deadly smile, which makes him more attractive and appealing. Celebrity credibility: (5/5) Celebrity is being judged that whether he has the right to appear in the advertisement and indirectly advice the consumers what to do and what not to. Dhoni is captain of Indian cricket team and not only that, he has proven his capability of performing under immense pressure several times which is obviously created creditworthiness. Celebrity prior endorsements: (4/5) Prior advertisements with several companies has proven the spontaneity, acting ability and confidence in front of camera. So as all the points that make an Ad popular and successful among the target audience is above average. So there is an ample amount of chances that the ad published in the print media, get the success. 35 | P a g e Celebrity Endorsements & Brand Building 2. REEBOK: YOUR MOVE Reebok is the most visible and remarkable sports brand of all time. It makes innovative products which are making a lot of difference to consumers and athletes worldwide. As all the persons related to sports are its target market, Reebok has been using different sport celebrities for its promotion. Dhonis YOUR MOVE is a famous

advertisement of Reebok. BRAND PERSONALITY: 1. The brand is related to sports wear. 2. Reebok attach itself with an active & athletic image. 3. An sport person is unco