Transcript An Effective Mediumx

AN EFFECTIVE MEDIUM
MAGAZINES ARE A HIGHLY EFFECTIVE MEDIUM
The ultimate benchmark of success for any
advertising campaign, is whether it can change
the way consumers think about a product or
brand or whether it can ultimately drive
sufficient increase in sales to provide a positive
return on i nv estment. We draw on work by
Mindshare, the PPA and the Meredith
Corporation to illustrate magazines ability across
both these dimensions of effectiveness.
AD AVOIDANCE IS NOT AN ISSUE FOR MAGAZINES
NOTED SCORES
54%
Advertising
NET ACTION SCORES
54%
Editorial
63%
Advertising
66%
Editorial
Advertising is seen as part of the content offering, not an interruption of it. As
a result, readers are as likely to take notice of an advert as a piece of editorial.
They are also nearly as likely to take an action as a result of exposure
Sources: PPA Magnify 2011
MAGAZINES BRING PEOPLE CLOSER TO BRANDS
Bonding
Advantage
Performance
Relevance
Presence
Sources: PPA Magonomics: Millward Brown BrandZ
Bonding is the most important precursor to sales, and shows
whether a brand is uniquely favoured or considered as the best
Advantage shows whether a brand is perceived as
better than others in the same product category
Performance shows whether a brand meets the
consumer’s performance expectations
Relevance reflects whether a brand is
seen as suiting a consumer’s needs
Presence tracks how well
known a brand is
The BrandZ Brand
Pyramid shows the steps
involved in getting
consumers to bond with
a particular brand
Brands with the highest
bonding scores tend to
attract the highest level
of spend in their
respective categories
MAGAZINES BRING PEOPLE CLOSER TO BRANDS
BONDING SCORES
+25%
Campaign value:
<£2m
Sources: PPA Magonomics: Millward Brown BrandZ & Nielsen
+72%
Campaign value:
£2m - £10m
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.
MAGAZINES SHOWS THE HIGHEST ROI FOR FMCG
Mindshare performed econometric
modelling on 77 FMCG campaigns
the understand the contribution
different channels made in driving
ROI. Mindshare found that
Magazines delivered the highest ROI
of all media. But why do magazines
perform so well? The answer is
found in looking at diminishing
return curves
167
150
137
103
97
60
Magazines
TV
Online
Newspapers
Radio
OOH
ROI MEDIAN INDEX PER CHANNEL
Sources: PPA Magonomics 2012, Econometric Modelling Performed by Mindshare and Ohal
MAGAZINES ARE NOT USED TO THEIR FULL POTENTIAL
100%
90%
SALES POTENTIAL
80%
70%
60%
50%
40%
30%
20%
10%
0%
£0
£500,000
£1,000,000
£1,500,000
£2,000,000
WEEKLY MEDIA SPEND
Outdoor
TV (sat)
Source: PPA Magonomics 2012, Diminishing Return Analysis by Mindshare & Ohal
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
MAGAZINES OFFER AN AVERAGE ROI OF $7.45
$18.59
ROI BY PRODUCT CATEGORY
Meredith Corporation use
Nielsen Homescan data to
track product purchases
following exposure to
campaigns in magazines. Their
data shows that magazines on
average achieve a $7.45 ROI
across all categories
$10.10
$7.80
$5.81
$6.07
Healthcare
Beauty
$4.59
HH goods
Food
Pet care
HH Retail
Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 – 2014. Test and control groups are created and shopping behaviour is tracked by Nielsen Homescan. Return on Investment is calculated by
calculating volume increase achieved across the projected audience and dividing incremental sales value by investment in magazines. Original ROI stated in US Dollars – Expressed in Sterling using original ratio of