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MAGAZINE MEDIA & ROI
OCTOBER 2015
STUDIES REFERENCED
Magnify 2011 – PPA/GfK A large scale study which investigates how consumers read magazine content. It covers off both advertising and editorial content and tracks what consumers do following exposure.
• 18,000+ magazine
readers interviewed • 3,100+ ads • 400+ editorial pieces • 96 magazine brands
involved
Receptiveness Brand Impact/ROI Synergies Categories
Magonomics 2012 – PPA/Mindshare/Ohal A brand impact and econometric study which pulls data from various sources to explore how magazines impact brand building and how to measure magazine ROI.
• 77 FMCG Campaigns for
econometric modelling • 136 Brands explored in
BrandZ • 400 consumers
interviewed per product category
MAPP (Australia) 2013/14 – MPA/Nielsen An econometric study and planning tool which helps advertisers more accurately measure and plan campaigns using readership accumulation models. It also investigates the synergy effect and the contribution that magazines make to boosting ROI across different channels.
• 3 Modelled brands
Meredith Sales Guarantee (US) 2009 – 2014 – Meredith Corporation/Nielsen Catalina The Meredith Sales Guarantee is an effectiveness programme which has measured the impact of 53 individual campaigns. By tracking sales behaviour of exposed readers, it measures the uplift in product spend and calculates the impact on incremental sales to produce an ROI figure for each campaign.
RECEPTIVITY
A WELCOMING ADVERTISING ENVIRONMENT
Source: PPA Magnify 2011
NOTED SCORES NET ACTION SCORES
54% 54%
63% 66% Advertising Advertising Editorial Editorial
Readers are as likely to take notice of an ad as a piece of editorial. They are also nearly as likely to take an action as a result of exposure
ADS GENERATE AS MANY ACTIONS AS EDITORIAL
Source: PPA Magnify 2011
Purchase actions Engagement Reference actions
Ad
vert
isin
g
FAMILIARITY RESEARCH CONSIDERATION & PURCHASE
Impact actions
BRAND ACTIVISM
Read most
Read Any
Read Any
Read Most
Gathered more info
Visited brand website
Cut out ad
Used for ideas
Cut out ed
Visited brand website
Have a more favourable opinion
Recommended the product
Discussed/ referred
Passed to someone
Considering purchase
Purchased
Considering purchase
Purchased
Edit
ori
al
BRAND BUILDING
THE BRAND PYRAMID
Advantage
Relevance
Presence
Performance
Bonding The brand pyramid
explores the relationship that
consumers have with a brand across 5 different metrics
Presence tracks how well known a brand is
Relevance reflects whether a brand is seen as suiting a consumer’s needs
Performance shows whether a brand meets the consumer’s performance expectations
Advantage shows whether a brand is perceived as better than others in the same product category
Bonding is the most important precursor to sales, and shows whether a brand is uniquely favoured or considered as the best
Source: Millward Brown BrandZ, Nielsen 2012
BONDING IS ESSENTIAL FOR SALES SUCCESS
High share of wallet
Low share of wallet
Millward Brown research has
established that there is a strong correlation
between bonding scores and share of
wallet. Consumers will allocate 33% of their
spend in a category to bonded brands
Advantage
Relevance
Presence
Performance
Bonding
Source: Millward Brown BrandZ, Nielsen 2012
MAGAZINES ARE A STRONG DRIVER OF BONDING
Campaign value:
£2m - £10m
+72%
+25%
Campaign value:
<£2m
Using Nielsen spend data and BrandZ we established that
brands which are heavy investors in magazines enjoy
much higher bonding scores in comparison to brands that spend less than average in
magazines
BONDING SCORES
Source: Millward Brown BrandZ, Nielsen 2012
OLAY USED MAGAZINES TO IMPROVE BONDING
8 2008
2009
2010
9 11 Olay invested more than
£15m in magazines between 2008 and 2010,
and during that period have managed to
increase their bonding scores by 38%
BONDING SCORES
Source: Millward Brown BrandZ, Nielsen 2012
AUSSIE DOUBLED BONDING SCORES WITH MAGAZINES
4 2007
2009
2011
5 8 P&G’s Aussie brand is a
great example of a brand build on the back of
magazines. They’ve spent 80% of their budget on
magazines, doubling their bonding scores over the
period shown
BONDING SCORES
Source: Millward Brown BrandZ, Nielsen 2012
ROI
ECONOMETRICS ISOLATES THE MEDIA EFFECT
ATL Media’s contribution to sales
10% ATL media is estimated to
contribute an average of 10% of total sales
uplift for FMCG brands
Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal
3 MEASUREMENT CHALLENGES MAGAZINES FACE
Bundled with newsbrands
Using the wrong media inputs
Low weighting
Magazines and newsbrands should be measured separately as they engage and deliver audiences
differently
It takes up to 4 weeks for monthly magazines to
deliver 80% of their audience, accumulation data should be used to
account for this
Magazines should have a minimum spend of
5% of budget or £500k in order to be
accurately measured in modelling
Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal
ACCUMULATION DATA IS ESSENTIAL FOR ACCURACY G
RP
s
TIME (WEEKS)
Week 1
(On sale week)
Using accumulation data which accurately reflects magazine audiences delivery improves
stated ROI by 19% on average
+19% ROI
Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal
Mismatch between when GRPs are expected and delivered
Magazines
TV
Online
Newspapers
Radio
OOH
167
150
137
103
97
MAGAZINES SHOW THE HIGHEST ROI
60
ROI MEDIAN INDEX PER CHANNEL
60
Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal
Across 77 FMCG campaigns Mindshare found that Magazines
delivered the highest ROI of all media. But why to magazines
perform so well? The answer is found in looking at diminishing
return curves
DIMINISHING RETURN CURVES
Maximum potential sales
SALE
S P
OTE
NT
IAL
SPEND
100k
Channels have an upper limit in sales potential. When a
channel’s investment nears this limit, returns start to diminish, and reallocating
budget to a different channel is more effective. This
example shows that a 100k taken from Channel A and reinvested in channel B,
would generate twice the amount of sales
100k
Channel B
Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal
UNDERINVESTMENT IN MAGAZINES SA
LES
PO
TEN
TIA
L
100%
WEEKLY MEDIA SPEND
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% £0 £500,000 £1,000,000 £1,500,000 £2,000,000
Outdoor TV (sat) Magazines TV (ter)
Initial investment in channels always generates the highest ROI, because it adds audience quickly with low frequency. Across the 5 test campaigns magazines
were consistently underfunded, and only
used for a fraction of their potential, delivering a high
ROI as a result
Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal
OPTIMISING BUDGETS
+10% +30% +20% MAGAZINE
BUDGET INCREASE
PRODUCT SALES INCREASE +1% +2.6% +1.9%
In the 5 test studies, modelling showed that increasing magazine budgets could boost overall sales by as much as 2.6% (bearing in mind that ATL media
drives 10% of sales overall)
Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal
ADDRESSING UNDERINVESTMENT
Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal
Magazines
TV
Online
Newspapers
Radio
OOH
167
150
137
103
97
ROI MEDIAN INDEX PER CHANNEL
60
x2 Modelling of the 5 test campaigns
showed that magazine budges could at least be doubled before its ROI would
drop to the same level as TV
MEDIA SYNERGY
MAGAZINES DRIVE TV SYNERGY
Source: MPA & Nielsen MAPP
18%
11%
12%
4%
1%
Magazines Digital Display Online Video Outdoor Facebook
7.6m
7.7m
% ROI IMPROVEMENT TO TV WITH SYNERGY When magazines and TV are layered
together, TV’s ROI improves by 18%
CATEGORIES
ADVERTISING IN MAGAZINES INCREASES SALES
Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit
4%
7% 7% 8%
11%
17%
HH goods HH Retail Healthcare Pet care Food Beauty
7.7m
PERCENTAGE SALES UPLIFT BY CATEGORY Magazines deliver an average 11% sales
uplift across all categories
ADVERTISING IN MAGAZINE MEDIA INCREASES SALES
£4.59 £5.81 £6.07
£7.80
£10.10
£18.59
HH goods Healthcare Beauty Food Pet care HH Retail
7.7m
ROI BY PRODUCT CATEGORY Magazines deliver an average £7.45 ROI
across all categories
Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit
CATEGORY PERFORMANCE
ROI Sales Lift
FOOD
£3.05
£1.46
£1.88
£7.23
£4
£16.36
£5.43
20%
22%
7%
2%
1%
3%
8%
Baking Supplier
Canned Vegetables
Cheese
Diary
Food Products
Soup (Iconic brand)
£12.07
£1.16
£5.18
£1.86
5%
6%
1%
9%
Juice
Juice (2)
Soup (2)
Speciality Soup
Category Ave.
ROI Sales Lift
Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit
CATEGORY PERFORMANCE
ROI Sales Lift
BEAUTY
£7.21
£2.32
£8.58
£3.70
£3.19
£10.01
£7.49
£6.07
32%
16%
5%
36%
9%
5%
13%
17%
Anti-aging cream
Bar soap
Body wash
Lipstick
Lotion
Moisturizer
Sunscreen
Category Ave.
ROI Sales Lift
Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit
CATEGORY PERFORMANCE
ROI Sales Lift
HH Goods
£1.66
£2.35
£9.78
£4.59
£8.43
£4.04
£4.96
£5.81
5%
3%
5%
4%
10%
4%
6%
7%
Air Freshener
Liquid Soap
Toilet paper
Category Ave.
Feminine Care
Mouthwash
Decongestant
Category Ave.
ROI Sales Lift
Healthcare
Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit
CATEGORY PERFORMANCE
Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit
ROI Sales Lift
Petcare
£6.76
£13.44
£10.10
£18.59
£4.04
7%
8%
8%
7%
4%
Petcare 1
Petcare 2
Category Ave.
Home Retailer
Category Ave.
ROI Sales Lift
HH Retail