Prepared for the:
Canada Revenue Agency
March, 2014
Contract Number: 46558-147321/001 CY
Contract Award Date: 2013-10-11
Project Cost: $50,387.65 (HST included)
POR Number: 028-13

Prepared by:
Phase 5 Consulting Group Inc.

For further information:
Media Relations
Canada Revenue Agency
4^th Floor – 555 MacKenzie Avenue
Ottawa, ON K1A 0L5
Media.relations@cra-arc.gc.ca

Executive Summary

Background

The Canada Revenue Agency (CRA) is launching Phase VII of the Tax Relief Measures national advertising campaign which is scheduled to run from February 7^th to March 31^st, 2014. The advertising campaign will feature two components – one related to the Children's Fitness Tax Credit and the other to the First-time Donor's Super Credit. Specific campaign objectives include encouraging Canadians:

• to take advantage of the tax relief measures that they may be entitled to when they file their returns;
• to file their returns online; and
• to sign up for direct deposit to get their refunds.

To ensure a successful campaign, the CRA undertook qualitative research in order to obtain feedback from the target audience. Three creative concepts were submitted by an advertising agency for each component. The campaign will involve a range of advertising media, but during the research a TV and a print ad were reviewed. As a result, for each component six ads were reviewed – a TV ad and a print ad for each of the three concepts. This feedback was used to assess the relative effectiveness of the creative concepts and to inform decisions related to the selection of the most effective creative concept and assist with the finalization of creative elements for the ads. The specific research objectives included:

• assess the strengths and weaknesses of three creative approaches developed by the advertising firm;
• determine which approach is strongest in terms of communicating the ad campaign's intended messages; and
• identify ways in which the various ads might be revised to improve their effectiveness.

In October 2013, Phase 5 Consulting Group Inc. was engaged to conduct this research on behalf of the Canada Revenue Agency.

Approach

The overall approach to the work included conducting six focus groups. In total 49 members of the general public participated in the sessions. Two groups were held in each of Toronto (English), Winnipeg (English) and Montreal (French) and 8 to 9 participants attended each session. All focus groups were conducted in professional focus group facilities.

Readers are reminded that the results of qualitative research are not statistically representative. They therefore cannot be generalized to a wider population and represent only the perceptions and opinions of a select group. However, this approach permitted a solid assessment of the concepts relative to the research objectives. The group discussions allowed for deep probing and contextual feedback that enabled the researcher to fully explore the reasons why certain creative approaches were preferred over others, and seek and develop solutions to any issues raised. This provided useful information for moving forward with the creative concepts for the proposed advertising campaign.

The total (actual) cost of this research project was is $50,387.65 (HST included).

The Children's Fitness Tax Credit Ads

The three concepts tested related to the Children's Fitness Tax Credit ads included Self Esteem, Nice to be Acknowledged, and Trophy Talk.

Overall Reactions

Self Esteem performed very strongly and was the most preferred concept overall.

• Self Esteem was the most preferred concept. It was ranked first by over half of the participants and first or second by the vast majority. It was the most preferred concept in Toronto and Montreal and the second most preferred in Winnipeg. Nice to be Acknowledged ranked second overall. It was ranked first by one third of participants, and first or second by half, and was the most preferred in Winnipeg. Trophy Talk ranked third overall.
• For each creative concept, participants were asked to rate seven creative elements. The Self Esteem concept was the most highly rated for all seven metrics. It received very strong ratings for overall effectiveness, having a good tone, ability to catch attention and clearly communicating key messages. Nice to be Acknowledged was rated second most highly overall, while Trophy Talk was rated lowest for six of the seven metrics.

Specific Feedback on Each Concept

Self Esteem: This concept was very well received. The reason for its strong performance was, in large part, due to an overall approach that employed the following aspects that were supported by respondents.

• The ads focused on a child / children involved in a realistic and familiar fitness activity. This encouraged fitness among youth and was strongly connected to the subject matter of the advertisement.
• Parents were included in the ads, but in a listening or helping role. They were not the centre of attention.
• The ads were upbeat, enthusiastic and depicted children having fun.
• The loveable nature of the child in the TV ad, along with a touch of humour, effectively drew and maintained attention.

Most were also touched emotionally by the ads. Both, but particularly the TV ad, generated a positive and warm feeling.

Nice to be Acknowledged: This concept received a mixed reaction – generally speaking the TV ad was not well received and the print ad was well received.

• The TV ad illustrated that for this campaign a scenario that focuses on parents (not children) and is 'too far-fetched' is less likely to be well received and resonate with viewers. In contrast, as in the print ad, an ad that shows a child taking part in a familiar activity and involves a parent in a 'helping' and less prominent role is more likely to be well received.
• The TV ad was not generally regarded as compelling, however, the print ad, particularly the phrase - You tied his skates 4,351 times. We give you credit - was more successful at drawing attention.
• The print ad did touch some by generating a sense of belonging and fond memories. However, few related strongly to the TV ad so it did not generate any consistent or significant positive emotion.

Trophy Talk: This concept was the least preferred. Although several liked the idea of using animated trophies, the presentation of the TV ad was regarded as too complicated and hard to follow. The image used in the print ad was also regarded as confusing and cluttered. The complexity of both ads had a negative impact on their ability to draw attention and generate an emotive response. Participants did appreciate that both ads included a range of sports / activities thereby giving a better sense of the range of eligible activities.

The First-time Donor's Super Credit Ads

The three concepts tested related to the First-time Donor's Super Credit ads included Anonymous, Flight of the Ribbons, and Nice to be Acknowledged.

Overall Reactions

The Anonymous concept was ranked as the most preferred concept and was well received. Generally speaking, Flight of the Ribbons also received positive feedback, while Nice to be Acknowledged was clearly the least preferred.

• Anonymous was the most preferred concept overall. It was ranked first by over half of the participants and first or second by the vast majority. It was the preferred concept in Montreal and Winnipeg but similar to Flight of the Ribbons in Toronto. Flight of the Ribbons ranked second overall. It was ranked first by almost one third of participants and first or second by a strong majority. It ranked similar to Anonymous in Toronto, was the second most preferred in Winnipeg and Montreal. Nice to be Acknowledged ranked third overall.
• For each creative concept, participants were also asked to rate seven creative elements. In this case Anonymous and Flight of the Ribbons received very similar rankings across all metrics with Anonymous receiving a slightly higher ranking for motivating participants to learn more about tax credits and Flight of the Ribbons scoring slightly higher on being appealing and personally relatable. Nice to be Acknowledged ranked third on all metrics, receiving the lowest ratings for being personally relatable and appealing.

Specific Feedback on Each Concept

Anonymous: The overall approach to the Anonymous concept was the key reason for its appeal. The approach, which featured a range of charities (e.g. assistance for animals, children, the elderly and the homeless) and the results of making a charitable donation was easy to relate to and regarded as realistic. Many also liked the idea of the donations being anonymous, emphasizing that donating to charity is not about receiving praise or recognition, but about helping those in need. As such, this theme was regarded as an appropriate foundation for the ads.

The Anonymous concept also appeared to generate the strongest emotional connection. In some cases the reaction was positive as respondents were warmed by the scenes of those receiving help. A few had a mixed reaction as they were warmed by those receiving help, but saddened by the reminder of the range of people and animals in need.

Flight of the Ribbons: Generally speaking, this concept was well received. The depiction of the idea that 'by doing something good, good will be returned to you' was well received. Participants liked that the ads encouraged charitable donations, depicted a range of charities and focused on 'doing good'. Several also found the ads visually appealing and creative. Those who quickly grasped the concept found the ad compelling and many commented that the use of colour, movement and images used in the TV ad effectively attracted attention. However, some found the concept unclear and confusing. For example, as the TV ad was playing some participants were not sure what was happening and what the ribbons were intended to imply. As a result, the overall reactions to the concept were polarized, i.e. some really liked it, while others did not relate to it. In addition, the concept appears harder to portray in a static print advertisement.

Those who related to the concept stated that it created a very upbeat and positive feeling that made them feel good. They did state that the print ad was less effective at generating the positive feeling. Those who did not relate to the ad, regarded it as merely informational.

Nice to be Acknowledged: This concept was clearly the least preferred. Although the key message related to the tax credit is communicated, the exaggerated scenario that focused on acknowledging the donor was not deemed to be a strong or appropriate focus for the ad campaign. Although some stated the exaggerated scenario, the element of surprise and the use of humour drew their attention, most stated this concept did not resonate with them. Some who ranked it highly did so only because there was additional detail on the description of the tax credit. However, this could be easily inserted into a more preferred concept. Some of the elements that were liked included targeting young adults and the message that any donation, big or small, is valued.