Page 249 - DMGT507_SALES AND PROMOTIONS MANAGEMENT

Unit 14: Measurement of Advertising Effectiveness

14.1.5 Assessment and Criticism of DAGMAR Approach Notes

The DAGMAR approach has had enormous influence on advertising planning process and
objective setting. It focused advertiser’s attention on the importance and value of using
communications-based objectives as against sales-based objectives to measure the impact and
success of an ad campaign.
The approach has not been totally accepted by everyone in the advertising field. A number of
questions have been raised concerning its value as an advertising planning tool:
Problems with Response Hierarchy: DAGMAR approach is based on hierarchy of effects model
and the fact cannot be ignored that consumers do not always follow the sequence of
communications effects leading to purchase. There are alternative response models depending
on the purchase situation. For example, action can precede attitude formation, and comprehension
may result with an impulse purchase of a low-involvement product.
Sales as the Advertising Goal: Many believe that sales is the only relevant measure of advertising
objectives and show little respect and tolerance for ad campaigns that otherwise may achieve
communications objectives but fail to increase sales. For example, they argue, if brand awareness
does not affect sales positively, what is the point in measuring it, and if it does have a close
relationship, then sales should be measured directly. With advances in modern technology it
has become possible to measure sales of packaged products in the short-run through controlled
experiments. But even such tests using scanner data panel cannot reflect the long-term advertising
effects.
Practicality and Costs: Implementation of the DAGMAR approach is difficult. Expensive research
is required to establish quantitative standards and measure changes in the response hierarchy.
It is time consuming and can lead to disagreement over method, criteria, and measures, etc.
Some critics point out that DAGMAR is practical only for large firms with substantial research
and advertising budgets and beyond the means of small and medium sized firms.
Inhibiting Creativity: Using DAGMAR model is basically a planned and rational way of setting
advertising objectives. It imposes too much structure and may restrict creativity. Many advertisers
dream or hope for the “great creative idea” and the DAGMAR approach is too concerned with
quantitative assessment of ad message impact on awareness, brand name recall, or specific
persuasion measures. This inhibits the developing of a truly creative message that would
contribute to brand equity. An agency research director, Anthony L. Morgan argues that the
hierarchy model restricts great advertising by stressing recall test, communications, and
persuasion. In his opinion, conceptual and research flexibility should be employed in developing
advertising goals to check the possibility of fixing wrong evaluative criteria.

Task Contact an account executive of an ad agency in your city. Find out for what
type of products/situations he/she recommends sales or communications
as promotion objectives.

Caselet Building Brands with Social Media Advertising

ocial Media Advertising (SMM) is a type of web advertising, which seeks to realize
branding and marketing communication goals by means of the participation in
Svaried social media networks like You Tube, My Space, and Face ebook, social web

Contd...

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