Transcript Dublin-afternoon - Magazines Ireland

The research evidence Irish and international
A. The case for magazine advertising
B. Advertising in a recession
Guy Consterdine
Guy Consterdine Associates
24 February 2009
Ad agencies
Newspaper
publishers
Magazine publishers:
consumer & b2b
Media research
consultancy
The Case For Magazine Advertising
Objective
To provide research evidence which supports the
arguments for using magazine advertising
Consumer & b2b
Seven key points
Two reports
www.ppa.ie
1. Readers develop
a personal relationship
with their magazines
Matching a magazine’s personality
to reader’s personality
‘The Reader’s Perspective’
National Magazine Company, UK
Sample: readers of 8 magazines
Measured: readers’ attitudes to their chosen
magazines
Attitudes to chosen magazines
1) Reader has own perception of what type of
person he/she wishes to be
2) When a magazine’s personality chimes with
self-image, high level of identification. ‘This is my
magazine’, an informed friend
3) Reader feels ‘my magazine helps me become
the type of person I want to be’
4) Reader has a powerful, trusting relationship with
‘my’ magazine
Magazines are most tailored to audience
'It is usually tailored to meet my individual needs'
Magazines
35%
Internet
19%
Newspapers
14%
TV
12%
Radio
6%
Direct mail
Outdoor
3%
1%
Source: Smurfit/UCD for PPAI, Ireland
First preferences
Readers develop a personal relationship
with their magazines
'This medium best reflects my personal beliefs and attitudes'
Magazines
30%
Newspapers
15%
TV
8%
Radio
8%
Internet
4%
Direct mail
1%
Outdoor
1%
Source: Smurfit/UCD for PPAI, Ireland
First preferences
Easy Food reader survey:
inspiration & emotional reassurance
• 99% of readers agreed
‘Easy Food provides
inspiring meals for my family
& myself’
• 94% agreed ‘Following a
recipe’s instructions gives
me confidence’
• 99% agreed ‘I intend to
cook something from Easy
Food’
You & Your Money:
personal friend with reliable advice
Advice from financial institutions is
biased, and confusing
Y&YM is impartial, trusted
“For people like me”
Emotional closeness symbolised
by Eddie Hobbs: “Eddie”
Eddie, and Y&YM, are like
personal friends
Other reader studies?
Other editorial research?
2. Magazines are well read
Extensive reading time:
twice that of newspaper supplements
Time spent reading average issue (minutes)
54
26
Paid-for magazines
Source: Quality of Reading Survey, PPA
Newspaper supplements
It’s a multi-tasking media world
Consumers are increasingly using more than one
medium at a time
Magazines less likely to be used at same time as
other media
Using 2+ media simultaneously
Extent of multi-tasking while using each medium
(Index: Magazines = 100)
193
140
100
While watching TV
While using internet
Source: ‘Magazine Experiences Europe’, Germany/France, UK, Time/Fortune
While reading magazines
It’s a multi-tasking media world
Consumers are increasingly using more than one
medium at a time
Magazines less likely to be used at same time as
other media
When they are, likely to capture the prime focus of
attention
You can’t read a publication without focusing on it
Multi-tasking:
magazines attract primary attention
Of multi-media time spent with medium,
% where it receives primary attention
Magazines
79%
Newspapers
59%
Internet
Radio
TV
35%
17%
15%
Source: Middletown Media Studies, Ball State University, USA
3. Readers are receptive to the
advertising
The ads are relevant
'This medium generally has advertising that I find relevant'
Magazines
43%
Newspapers
16%
TV
13%
Internet
8%
Radio
Direct mail
Outdoor
7%
2%
1%
Source: Smurfit/UCD for PPAI, Ireland
First preferences
Readers are receptive to the advertising
'I am more likely to pay attention to an advert if it appears in/on
one of my favourite…'
Magazines
47%
TV
18%
Newspapers
13%
Radio
5%
Internet
3%
Direct mail
1%
Outdoor
1%
Source: Smurfit/UCD for PPAI, Ireland
First preferences
Lowest ad avoidance for magazines
Almost always actively avoid the advertising in…
Internet
25%
Radio
12%
TV
11%
Outdoor
7%
Newspapers
7%
Magazines
Source: Smurfit/UCD for PPAI, Ireland
5%
4. Magazine advertising
influences the purchase
decision-making process
Magazine ads helpful as a buying guide
'Advertising in this medium is helpful as a buying guide'
Magazines
33%
Newspapers
19%
Internet
18%
TV
14%
Radio
5%
Direct mail
1%
Outdoor
1%
Source: Smurfit/UCD for PPAI, Ireland
First preferences
Magazine ads >> purchase
'I sometimes purchase a product or service as a direct result of
the advertising in…'
Magazines
35%
TV
20%
Newspapers
14%
Internet
10%
Radio
Direct mail
Outdoor
4%
2%
1%
Source: Smurfit/UCD for PPAI, Ireland
First preferences
Image reader survey:
action triggered by ads
• 82% of readers bought
a product advertised in
Image
• 81% tried new health
& beauty services
featured
• 88% considered the
advertising in Image is
useful
Magazines are effective at all stages of
the ‘purchase funnel’
Brand awareness
Ad awareness
Understood message
Favourable impression
Intention to buy
Buy
Dynamic Logic’s CrossMedia studies
(MPA/USA)
32 campaigns using TV + magazines + internet
5 measures of ad impact
‘Exposed’ group compared with non-exposed
control group
(a) Comparison of TV + magazines:
TV: its impact on own
Magazines: additional impact, on top of TV
Magazines add substantial impact to TV
Incremental effect of magazines added to TV:
Av. % point increase over Control (Unexposed)
7.8
Magazines
5.0
9.3
9.8
6.9
2.9
7.6
Aided brand
awareness
Advertising
awareness
3.9
2.9
Message
association
Brand
favourability
Source: CrossMedia Research, Dynamic Logic & Millward Brown, USA
4.6
Purchase
intent
TV
Dynamic Logic’s CrossMedia studies
(b) Comparison of TV + magazines + internet
TV: its impact on own
Online ads: additional impact, on top of TV
Magazines: additional impact, on top of TV &
online
Magazines add substantial impact
to TV & online
Incremental effect of online & mags added to TV:
Av. % point increase over Control (Unexposed)
8.3
5.7
Magazines
Online
4.4
TV
3.7
7.3
3.4
7.6
Aided brand
awareness
9.8
Advertising
awareness
7.0
1.0
1.7
3.9
1.6
2.9
4.6
Message
association
Brand
favourability
Purchase
intent
Source: CrossMedia Research, Dynamic Logic & Millward Brown, USA
Dynamic Logic’s CrossMedia studies:
conclusions
On all 5 measures, magazines added substantial
impact in addition to what TV and online
achieved
Magazines’ added impact was especially
impressive for purchasing intent
Marketing Evolution
(MPA/USA)
20 campaigns using TV + magazines + online
Comparison of pre- & post-campaign scores
3 measures of impact:
Brand awareness
Brand familiarity
Intention to purchase
Magazines add to TV & online:
Brand awareness
Index of pre/post change
(TV only=100)
182
153
138
100
TV only
TV + online
Source: Marketing Evolution for MPA, USA
TV + mags
TV+mags+online
Magazines add to TV & online:
Brand familiarity
Index of pre/post change
(TV only=100)
161
135
104
100
TV only
TV + online
Source: Marketing Evolution for MPA, USA
TV + mags
TV+mags+online
Magazines add to TV & online:
Intention to purchase
Index of pre/post change
(TV only=100)
151
144
100
101
TV only
TV + online
Source: Marketing Evolution for MPA, USA
TV + mags
TV+mags+online
Marketing Evolution: conclusions
On all three measures:
• Adding magazines to TV improved the impact
considerably
• Adding magazines achieved more than adding
online instead
• Best strategy is to use print & online in
combination
5. Magazines make digital media
and buzz work harder
Magazines drive online searching
Have been influenced by this medium to start an online search
for merchandise
47%
Magazines
Broadcast TV
43%
Newspapers
42%
35%
Cable TV
Radio
30%
28%
Email ads
Online ads
Outdoor posters
25%
11%
Source: Simultaneous Media Usage Survey 9, BIGresearch USA
Magazines > online > purchase
Made a PURCHASE after seeing an ad in this medium
AND conducting an online search as a result
Magazine ads
30%
TV ads
23%
Radio ads
19%
Out-of-home ads
19%
Source: In-Market Media Usage Survey, Jupiter Research, USA
Marketing campaigns should use both
magazines & online
Main source for stated purpose: cycling market
Latest news
Sourcing contacts
Guidance/advice
30
25
34
45
36
44
30
36
20
Magazine
Both
Reading up about a
subject in detail
Product reviews
Website
54
31
58
General reading /
entertainment
Source: ‘Engagement Counts’, Future Publishing Ltd, UK
15
31
74
11
21
5
Among ‘Influentials’
magazines create more buzz
% saying medium contributed to personal
recommendations
61%
55%
53%
45%
44%
26%
Magazines
TV
Newspapers
Source: Roper Center for Public Opinion Research, USA
Internet
Radio
Email
6. Magazine advertising creates
sales:
a) Magazines used on own
Magazine advertising
www.ppamarketing.net
sales
‘Sales Uncovered’
TNS Superpanel in UK:
household purchases, media consumption
20 brands
Week-by-week sales examined
Analysed against week-by-week mag exposures
Among:
- Exposed to mag advertising
- Not exposed to mag advertising (control)
Magazine advertising increased sales
by an additional 11.6%
Percentage increase in sales £: pre-post change
11.6% additional
increase
21.6
10.0
Non-exposed
Source: ‘Sales Uncovered, TNS for PPA, UK
Exposed
Return on investment
Medium term (12 months)
£2.77
£1
Source: ‘Sales Uncovered, TNS for PPA, UK
Magazine advertising creates sales:
b) Magazines used with TV
Magazine achievement similar to TV’s…
Percentage increase in sales (£)
Magazine & TV weights
28.9
26.3
3.9
Light/non mags & TV
Source: ‘Sales Uncovered, TNS for PPA, UK
Heavy mags, light/non TV
Heavy TV, non mags
…but at a third of the cost
Average budget split
8%
22%
Other
Magazines
TV
70%
Source: ‘Sales Uncovered, TNS for PPA, UK
Budget implications
Effectiveness
TV
Magazines
Expenditure
Budget implications
Effectiveness
TV
Magazines
Expenditure
7. Magazines are a vital ingredient
in b2b marketing campaigns
Importance of industry-specific media:
magazines, websites, face-to-face
'Which business-related media are most effective at informing or
validating your firm's business purchase decisions?'
Vendors' websites
48%
Industry-specific trade shows
45%
Industry-specific websites
45%
Industry-specific conferences
44%
Industry-specific magazines
40%
Email
40%
Web-based events
37%
Specialised biz websites
37%
Onine forums, social networks
32%
b2b blogs
32%
General business magazines
27%
Custom media
27%
Source: Forrester Research/ABM
Usage of traditional b2b media
'Which TRADITIONAL b2b media do you use to do your job?'
Industry-specific magazines
69%
Industry-specific conferences
65%
Industry-specific trade shows
62%
General business magazines
55%
Newspapers
54%
Direct mail
51%
Custom media
39%
TV
34%
Radio
Outdoor
Source: Forrester Research/ABM
27%
21%
Usage of digital b2b media
'Which DIGITAL b2b media do you use to do your job?'
Email/electronic newsletters
76%
Vendors' websites
66%
Web portals
57%
Industry-specific magazine websites
55%
Web-based events
52%
General biz magazine websites
45%
Onine videos or rich internet applications
40%
Specialised biz websites
40%
Online forums, social networks
35%
Mobile/wireless devices
34%
Product listings/ads in online directories
33%
B2b blogs
Podcasts
Syndicated content via RSS
Source: Forrester Research/ABM
31%
20%
19%
Combining b2b media
Each kind of industry-specific b2b medium has its
own strengths
Effectiveness maximised by using combination of
magazines, online & face-to-face
“The three legs of b2b publishing”
Sell advertising on multiple platforms
91% of decision makers agreed:
“It is easier for me to recognise or remember a
company’s brand or products/services when I
see messages about it in multiple media such as
magazines, online, or at events”
Source: Forrester Research/ABM
Summary: research proves
Summary
the case for magazine advertising
Readers develop a personal relationship with mag.
Magazines are well read: engagement
Readers are receptive to ads
Magazine advertising influences the purchase
decision-making process
Magazine advertising makes other media work
harder – TV, online, etc
Magazines create sales: used on own, or in
combination with other media
Magazines are a vital part of multi-channel
communication strategies (consumer & b2b)
Two reports
www.ppa.ie
Further sources
www.consterdine.com
www.fipp.com
Advertising in a recession
Objective
To assess the research evidence about the
importance of continuing to advertise in a
recession
Most marketers’ actual behaviour: cut adspend
Best policy: maintain adspend
Long list of studies examined
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Institute of Practitioners in Advertising (IPA), 2008
Millward Brown, 2008
Data2Decisions, 2008
Malik PIMS, 2008
Peter Field with IPA Databank, 2008
Ehrenberg-Bass Institute, Australia, 2008
Penton/Coopoers/BSI, 2003
ABM Guidelines, 2002
McKinsey & Company, 2002
Pennsylvania State University, 2002
Yankelovich/Harris, 2001
Prof. Patrick Barwise, 1999
Tony Hillier, 1999
McGraw-Hill Research, 1985
American Business Press, 1975
Buchen Advertising, 1961
Harvard Business Review, 1923
Budget-cutting options compared:
Typical brand (modelled)
Sales
Budget maintained every
year
Half budget in Year 1, back
to usual weight Year 2+
Zero advertising in Year 1, back to usual weight
Year 2+
DOWNTURN STARTS
1/0 2/0 3/0 4/0 1/1 2/1 3/1 4/1 1/2 2/2 3/2 4/2 1/3 2/3 3/3 4/3 1/4 2/4 3/4 4/4 1/5 2/5 3/5 4/5 1/6
Quarter
Source: Data2Decisions
Budget-cutting options compared:
Typical brand (modelled)
Eliminating budget in Year 1: sales take 5 years to
catch up
Halving budget in Year 1: sales take 3 years to
catch up
Profit foregone because sales are lower is likely to
far exceed short-term profit gain by saving
adspend in Year 1
Meanwhile market share likely to be lost long-term
Conclusions: 1
Immediate profits protected by cutting adspend,
but benefit is very short-term
Neglecting brand support in downturn will weaken
brand & make it less profitable post-recession
Price promotions damage profits and brand values
Brand values impaired in downturn are hard to
restore in upturn
Conclusions: 2
Share of voice matters
Keep share of voice equal to or above share of
market
It’s likely to improve market share in medium and
long term
A brand maintaining adspend while rivals cut theirs
automatically increases share of voice
Price of buying media space or time falls in
recession – exceptionally good value available
Conclusions: 3
Recession provides opportunities for marketers:
- to attack competitors
- to gain market share
- to gain market leadership
Can improve company’s stock market valuation
Consumer markets
B2b markets
Conclusions: 4
Results not broken out by medium
“Magazine advertising has all the characteristics
that we would believe makes advertising
especially valuable during a recession”
Keith Roberts, Malik PIMS
www.ppa.ie
These slides available for use