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Magazines and Online: Working together

Magazines Online Working Together

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Page 1: Magazines Online Working Together

Magazines and Online:Working together

Page 2: Magazines Online Working Together

tx portfolioContents

• The Debate

• The case from America

• UK Research

• Magazine brands live on - online

• Summary

Page 3: Magazines Online Working Together

tx portfolioSummary

• It has been proved conclusively in both the US and UK that offline media drive online search and purchase

• Magazines are the strongest medium in the US for driving consumers online

• In the UK, they are equal to TV - but arguably at 1/3rd to ½ the capital cost

• Engagement with the medium proves a crucial element in leading to eventual purchase

• Major magazines brands have evolved into major digital brands – online, radio and TV

Page 4: Magazines Online Working Together

tx portfolioThe Debate

• As consumer web traffic increases, online is becoming much more important and vital part of the media mix– And proof that advertising has driven web traffic and

search has become imperative

• Can offline media do this?– Which medium does it best?

• Doesn’t the current digital boom mean the death for the traditional magazine?– How have magazine brands embraced digital?

Page 5: Magazines Online Working Together

The Debate

"The consumer continues to be a moving target and marketers who employ outdated media models will find it difficult to achieve increased ROI for their marketing dollars.

The key for advertisers will be the integration or holistic allocation of new media with traditional based upon their customers media consumption.

For example, many marketers recognize the value of internet search but it's also important to understand which of the traditional media can be used to trigger online search for their consumer target.“

Gary Drenik, President & CEO of BIGresearch

Page 6: Magazines Online Working Together

tx portfolioHas ‘old’ media given way to new?• Online advertising or search can be tracked right

through to sale

• It is also (generally) cost effective

• ROI can be accurately calculated and campaigns tweaked to maximise efficiency

• So who needs traditional media?

• Well, where are those consumers searching online coming from?

Page 7: Magazines Online Working Together

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The evidence from America

Page 8: Magazines Online Working Together

The recent evidence to date

• 67% of online population driven to search by offline channels (iProspect ’07)

• Magazines are the primary driver of online search (RAMA ’07)

• Magazines are the primary driver of web traffic (AAF ’06)

• 39% of searchers influenced by offline make a purchase online (iProspect ’07)

• Magazines and WOM most effective at generating online purchases

(iProspect ’07)

Page 9: Magazines Online Working Together

26

17.8 16.413.7

118.2 6.8

0

5

10

15

20

25

30

Magazine

s

Terres

trial TV

Multi-ch

annel T

V (cabl

e)

Newspaper

sRad

io

Out of H

ome

Other

Source: American Advertising Federation (AAF)

Magazines – most effective at driving consumers online

That’s according to the American Advertising Federation (AFA) who conducted a survey and asked a range of marketers which medium they considered the most effective

Effectiveness of Media at Driving Consumers to the Web

Page 10: Magazines Online Working Together

51.647.7

44.2 41.335.6 35.3 33.8

30.3 29.3 28.2

0

10

20

30

40

50

60

Magazine

Ad

Read a

n artic

leTV

ad

Newspaper

ad

Cable a

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Face to

Face

communi

cation

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Email

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sing

Direct M

ailRad

io

Source: BIGresearch, USA, Aug 2007

Magazines – best at influencing search

BIGresearch conducted a study for the Retail Advertising and Marketing Association (RAMA) to help advertisers understand which media perform best at influencing consumers to start a search for goods online

Top 10 Media that Trigger an Online Search

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Is this true in the UK?

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• UK media trends often replicate what is happening in the US

• So does this research showing the strength of magazines at driving online search and sales hold true in the UK?

• The PPA have conducted their own research to find out …

Where America goes …

Page 13: Magazines Online Working Together

tx portfolioOffline advertising does drive online search

70% of online adults have been prompted to search by offline messaging

Source: PPA research, Sept 07

Page 14: Magazines Online Working Together

tx portfolioMagazines and television are equally influential

32 3332 33

21 22

10 11

Adults ABC1 Adults

TV Ads Magazine Ads Newspaper Ads Radio Ads

TV and magazines are as strong as each other for driving online purchasing amongst adults

"Did any of the following help you with ideas or information on any of the online purchases you made?“

Base: 16-64 online adults who have gone online in last 12 months to look for info on products considering buying and have made an online purchase.

Source: PPA research, Sept 07

Page 15: Magazines Online Working Together

tx portfolioPurchasing by category

0

10

20

30

40

50

60 TV Ads Magazine Ads Newspaper Ads Radio Ads

"Did any of the following help you with ideas or information on any of the online purchases you made?“Base: 16-64 online adults who have gone online in last 12 months to look for info on products considering buying and have made an online purchase.

Source: PPA research, Sept 07

Page 16: Magazines Online Working Together

tx portfolioNo better medium than magazines

• Magazine advertising is as strong as TV for driving online purchasing

• In over 70% of product categories magazine advertising is the primary driver of online purchase.

Magazines top the categories of: Cosmetics, Fashion Accessories, Toiletries, Food, Clothing, Music, Entertainment Tickets, Hobbies, Travel Tickets, Holiday

Source: PPA research, Sept 07

Page 17: Magazines Online Working Together

tx portfolioEngagement makes difference

Source: PPA research, Sept 07

32

55

32

43

21

46

10

26

0

10

20

30

40

50

60

70

Overall Favourites

Magazines Ads TV Ads Newspapers Ads Radio Ads

Those consumers with strongest media engagement are much more likely to purchase online as a result of offline advertising exposure.

Base: 16-64 online adults who have a favourite … (Magazine, TV programme, Radio programme, Newspaper) and have gone online in last 12 months to look for info on products considering buying and have made an online purchase

Page 18: Magazines Online Working Together

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IPC Insight’s Women’s Space Research

Page 19: Magazines Online Working Together

tx portfolioAdvertising – which types have prompted visits to a website

Source: PPA research, Sept 07

IPC Insight’s Women’s Space research used the nationally representative Origin Panel to ask mass market women about their behaviour on the web

Which types of adverts have prompted you to visit a website?

48

39

20

11

0

10

20

30

40

50

60

70

TV Magazine Newspaper Radio

Page 20: Magazines Online Working Together

tx portfolioAdvertising – which types have prompted to purchase from a website

Source: PPA research, Sept 07

Which types of adverts have prompted you to buy a product or service online in the last month?

21

18

8

4

0

5

10

15

20

25

TV Magazine Newspaper Radio

Page 21: Magazines Online Working Together

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The magazine is dead…long live the magazine

Page 22: Magazines Online Working Together

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• A lot has been said about digital being the death of print

• But magazine brands live on! And have so for many years in digital forms

• Many magazine brands are so strong they can evolve in into major brands on TV, Radio and online

Magazine brands live on…

Page 23: Magazines Online Working Together

tx portfolioMagazine brands have the strength to move into other areasMagazine brands have the presence to branch out from their prints forms – online, TV and radio

Page 24: Magazines Online Working Together

tx portfolioSummary

• It has been proved conclusively in both the US and UK that offline media drive online search and purchase

• Magazines are the strongest medium in the US for driving consumers online

• In the UK, they are equal to TV - but arguably at 1/3rd to ½ the capital cost

• Engagement with the medium proves a crucial element in leading to eventual purchase

Page 25: Magazines Online Working Together

Magazines and Online:Working together