ISSN 0798 1015

Vol. 38 (Nº 32) Año 2017. Pág. 18

Improvement of the Methodical Approaches to Evaluation of the Tourism Advertising Campaign Effectiveness

Mejora de los Enfoques Metodológicos para la Evaluación de la Eficacia de la Campaña de Publicidad Turística

Alexey Igorevich ROMANENKOV 1; Ilya Viktorovich KUTIN 2; Kostyantyn Anatol'evich LEBEDEV 3; Liudmila Mihaylovna GRZHEBINA 4; Oskar Viktorovich SHIMANSKIY 5

Recibido: 07/02/2017 • Aprobado: 12/03/2017

Content

1. Introduction

2. Methods

3. Results

4. Discussion

5. Conclusions

References

1. Introduction

 Advertising activity is connected with certain expenses of the advertiser, therefore the problem of assessment of advertising campaign efficiency is topical for many tourism companies which use advertising in their activities on a wide scale. First of all, the reason for that is rather high expenses for advertising under conditions of competition. As a result, managers want to know whether the expenses for an advertising campaign are justified.

Issues of assessment of advertising campaign efficiency in tourism have been studied by A.B. Krutik (2014), N.N. Kurnaya (2016), O.N. Momotova, (2013), P.V. Pavlovich (2012), A.I. Churkina (2013), R.I. Shu (2013), etc. However, no attention has still been paid to the development of complex approach to assessment of advertising campaign efficiency in tourism. The following issues have to be studied more closely: definition of criteria, principles, methods and assessment factors of advertising campaign efficiency in tourism, assessment of advertising efficiency influence on the results of tourism company activity.

2. Methods

Full assessment of advertising campaign efficiency which should be conducted in three steps is a component of tourism management subsystem. The first step includes definition of advertising activity of a tourism company with the account of additional grouping factors; the second step takes into account assessment of advertising campaign efficiency on the basis of particular, generalising and complex efficiency factors; the final step is the development of advertising campaign effectiveness matrix together with the definition of the tourism company’s advertising position.

We offer a system of indicators for assessment of advertising campaign efficiency, which is a simple and effective management tool for advertising campaigns in tourism. In particular, generalising and complex indicators can be calculated by formulae 1-3:

3. Results

Taking into account the limitedness of information field on the issues of advertising campaign management (limitations conditioned by trade secret), there are 15 companies in total to be studied, all of them are tourist market entities and conduct advertising campaigns.

On the basis of system approach to efficiency management and the suggested method of advertising campaign efficiency assessment we have grouped tourism companies by different factors. The first and main factor is a certain level of advertising activity. For in-depth analysis of advertising campaign efficiency management additional factors were used: economic and law form of capital management of tourism company; frequency of consumer products; level of consumer perception of tourist services.

The research has shown that total general criterion of advertising campaign efficiency should be supplemented with a system of organizational and economic factors. Advertising campaign efficiency cannot be defined by one factor, a system of factors is required for that, both generalising, which characterise general results of advertising campaign, and particular, which show efficiency of the use of advertising resources (Kim, Hwang and Fesenmaier, 2014; Fedulin, Sakharchuk and Lebedevа 2015).

Through the grouping method the studied tourism companies were united into three groups by the level of advertising activity. The first group includes companies with the level of expenses for advertising campaign of no more than 0,6% of the total revenue – this is low advertising activity. The second group combines tourism companies with the level of expenses for advertising campaign from 0,6% to 1,5% - this is medium advertising activity. The third group covers tourism companies with the level of expenses for advertising campaign of more than 1,5% of total revenue – this is high advertising activity. The goal of the research is to analyse the practicability and efficiency of the use of resources of the studied tourism companies per advertising campaign (table 1).

The results of table 1 have shown that complex indicator of advertising campaign efficiency can be calculated only for seven tourism companies, as it does not work if there is at least one negative value among the calculated generalising efficiency indicators.

This system will allow defining weak points in advertising campaign efficiency management, identifying interconnection between the indicators: floating assets circulation coefficient, current advertising expenses, commercial profitability, advertisement return, financial efficiency of advertising campaign and net income of tourism companies.

Companies with relatively similar economic turnover volumes, advertising activity levels and indicators of advertising campaign efficiency assessment were chosen for rating score, namely: OOO “Konversia-5”, OOO “Maria”, RUP (Republican unitary enterprise) “Centrkurort”.

Results of the rating show that OOO “Konversia-5” has the most efficient advertising campaign among all the objects under consideration, meaning that this tourism company has the best advertising position among the competitors, which confirms the necessity to keep the achieved level of advertising campaign efficiency and the market share as compared to most probable competitors.

Analysis of advertising campaign efficiency has been conducted through the example of a last minute travel offer “New Year is coming soon” (OOO “Parus-Travel”). It was planned that recommended efficiency coefficient for this campaign would be 58%, but as a result the actual efficiency level accounted for 73%. This shows that the conducted campaign had efficiency reserves of about 15%. Therefore, to predict new advertising campaigns, tourism company has to set higher quality characteristics of advertising campaign efficiency.

Table 1. Calculation of advertising campaign efficiency indicators of tourism companies

Source: Δ – indicator growth rate, %

4. Discussion

Reliability of the presented methodical approaches to assessment of advertising campaign efficiency in tourism is confirmed by the introduction of the stage of nominal definition of advertising budget, in other words definition of usage directions of advertising efforts on the basis of singling out and justifying the necessity of certain types of advertising for a tourism company in a particular advertising cycle and creation of reserve fund for advertising campaigns.

Use of this fund will allow tourism companies to increase the efficiency of advertising budget use, since the definition of advertising campaign efficiency is negatively influenced by reduction of advertising budget in the form of unused possibilities of advertising activity efficiency increase and by the increase of advertising budget in the form of financial resources overexpenditure and their withdrawal from other sources, which lowers the overall efficiency of tourism company activity.

The suggested scientific and methodical approaches to the assessment of efficiency of advertising campaign in tourism allow using advertising means more sparingly, since actual division of by advertisement articles is made by planned types of advertising, while the presence of reserve fund insures from risky situation.

Regular monitoring by the results of advertising campaign efficiency management in tourism can be conducted in several steps: organisation of advertising events; full assessment of advertising campaign efficiency; control of the results of advertising campaign efficiency management (Karaulova and Gavrilov 2015; Lebedev 2014).

5. Conclusions

 It is established that methodical approach to full assessment of efficiency of advertising campaign can have three stages. The first stage includes assessment of advertising campaign efficiency through the analysis of advertising activity with account of additional factors. The second stage includes assessment of advertising campaign efficiency on the basis of particular, generalising and complex efficiency factors. The third stage implies full assessment of the process of advertising campaign efficiency management through the assessment of the company’s advertising position.

During the research rating assessment of efficiency of advertising campaign of tourism companies was conducted on the basis of the developed system of efficiency indicator interconnection. This system allowed defining weak points in advertising campaign efficiency management, identifying interconnection between the indicators: floating assets circulation coefficient, sales volume, current advertising expenses, commercial profitability.

References

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Karaulova, N.M. and Gavrilov, A.J. 2015. The idea and essence of electronic tourism. Mediterranean Journal of Social Sciences 6(5), 211-217.

Kim, D.Y., Hwang, Y.H. and Fesenmaier, D.R. 2014. Modeling tourism advertising effectiveness. Journal of Travel Research 44(1), 42-49.

Krutik, A.B. 2014. Marketing, reklama i sbytovaja dejatelnost v turizme: nauchno-prakticheskij aspekt [Marketing, advertising and sales activities in tourism: scientific practical aspect]. Modern aspects of economics 1 (197), 31-43.

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Lebedev, K.A. 2014. Marketing technologies in stimulation of recreation and tourism potential of regions. Actual Problems of Economics 161(11), 186-190.

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Shu, R.I. 2013. Osnovnye tendencii razvitija i pokazateli effektivnosti vidov reklamy v Krasnodarskom krae na primere industrii turizma [Main development trends and indicators of efficiency of advertisement types in Krasnodar krai through the example of the tourism industry]. Economics and entrepreneurship 4 (33), 502-504.

1. Russian State Agrarian University - Moscow Agricultural Academy named after K.A. Timiryazev (MTAA) Russia, Moscow. Email: elexdei.romanenkov@mail.ru

2. Institute for Tourism and Hospitality, Russia, Moscow

3. Institute for Tourism and Hospitality, Russia, Moscow

4. Russian State University of Physical Education, Sport, Youth and Tourism (SCOLIPE), Russia, Moscow

5. The Russian Presidential Academy of National Economy and Public Administration (RANEPA), Russia, Moscow