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GfK MRI StarchMetrix Sharpening the Focus of Magazine Accountability

GfK MRI StarchMetrix Sharpening the Focus of Magazine Accountability

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GfK MRI

StarchMetrixSharpening the Focus of Magazine Accountability

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Context: The Advertising Spend Story

•Concurrent with the downturn of the economy, the US saw major declines in advertising spending across all media between 2008-2009

•Stabilization and rebound have been slow, in particular for some media

•Competition for advertising budgets has only increased

Source: Barclays Capital, 2011

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“Without a system of measurement that is timely, accountable and most of all comparable to other media, we simply will not be able to communicate that good news.”

“Unless we find a way to communicate that value to advertisers, magazines will not survive as a viable and valued advertising medium.”

“The value proposition between consumers and magazine brands has never been stronger.”

Betsy FrankChief Research &Insights OfficerTime Inc.ARF Measurement 3.0June 25, 2008

The Print Industry Predicament

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“It’s not just writing a check and hoping something good happens. Is there going to be a return on investment, and how will I know?” Paul Grogan CEO, Boston Foundation

StarchMetrix solves three fundamental business problems facing the print publishing marketplace. The first is accountability.

“With Starch AdMeasure, MRI has taken another big step towards helping to substantiate the power of print for marketers pursuing better proof of return on objectives.” Brenda White, Starcom USA

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InternetChanged the ROI game by offering ad performance metrics such as click-through and cost-per-click.

OutdoorMoving from an “opportunity to see” metric to a “likelihood to see” metric.

Television In 2007, Commercial Ratings (C3) became the ad-buying currency for the $70 billion TV market, replacing 65 years of program ratings.

The second fundamental business problem facing the print publishing marketplace is comparability.

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The third fundamental business problem solved by StarchMetrix is timeliness.

New print ad readership data

enters the marketplace every

week, generating conversation.

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Sales Response Ad-related purchase behavior

Advertising Response Actions taken

Advertising Persuasion How an ad influenced consumers who saw it

Advertising Communication How well ad content is remembered

Advertising Attentiveness Who paid attention to an ad

Advertising Exposure Exposure to both vehicle and ad

Vehicle Exposure Exposure to and attention paid to vehicle

Vehicle Distribution Physical units by which ads are distributed

Degree ofrelevance toadvertisers

StarchMetrix moves print measurement from vehicle exposure to advertising return on investment, enjoyed by other major mediums.

Relevant measures

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ROI metric of a print campaign

Learn how your ads performed in different magazines & different ad positions, as well as by size & color

Determine how your ads/campaigns performed against those of your competitors/category

Discover whether the number of ads in an issue affects readership scores

See if within a competitive set, one title consistently outperforms others for certain brands

Explore whether ad readership and actions taken scores differ by demographic

Find out how readers feel about your brand (by publication)

Determine if the additional costs of premium positions reflect higher noting or actions taken scores

Ways to Leverage StarchMetrix Data

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GfK MRI Starch - Some Background Information

(United States)

For 85 years, the industry gold standard for print ad research with detailed ad readership metrics

2009 database of measured issues: 611

2010 -2012 – close to 200 titles, every issue, every national ad (1/3 page or larger) – approximately 3000 issues measured, ~150,000 ads (per year measured)!

May 2011 – Starch began measuring digital magazine editions (tablet, eReader, Zinio/Coverleaf)

GfK MRI brings together Starch data with audience data to provide ad audiences

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GfK MRI StarchMetrix Methodology

•All surveys conducted online

•Online panel sources used for sample

•In the US, 4 panels used (other countries have used different numbers of panels for sample)

•125 completed surveys for every group of 25 ads measured

•Respondents are pre-screened on title readership and then must qualify as having read the given issue

•(in the US) Starch data weighted to GfK MRI National Study (print audience currency)

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Noted – % of readers who remember having previously seen the ad in the study issue

Associated – % of readers who not only Noted the ad, but also knew who the advertiser was

Read Any – % of readers who read any part of the ad’s copy

Read Most – % of readers who read more than ½ of the ad’s copy

Reader Actions Taken – the number of Noters who took an action as a result of seeing the ad

Brand Disposition – the extent to which readers of the publication are favorably disposed towards specific advertised brands

Brand Influence – Recent brand purchase or recommended brand in last 2 weeks

StarchMetrix: Main Metrics

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Brand DispositionPositively

disposed (Net)

My favorite brand

One of several brands I like

Don’t use, but it’s

worth tryingNegatively

disposed (Net)I use it but don’t particularly like it

I don’t like it

I’m unfamiliar

with it

Louis Vuitton Jewelry 75% 8% 28% 39% 25% 0% 9% 15%

Category Norm (1,080 Ads) 53% 9% 22% 23% 47% 2% 3% 42%

Brand Index 142 89 127 170 53 0 300 36

The brand disposition information is asked at the beginning of the Starch survey, before respondents are asked about specific ads. The brand disposition questions do not reference an ad but rather ask the respondent about the brand itself.

Actions Taken and Brand norms are based on major product category for all ads measured in 2010.

[=] Ad has fewer than 4 words [-] Ad has fewer than 50 words | Adnorms Grp = Online11CT (1/2010-12/2010) | Run Date: Aug 10, 2011 8:22 PM

Actions Taken by Those Who Noted the Ad

Any Action

s Taken

Have a more

favorable opinion

Visited

website

Looked for more info about the product/ service

Recommended the

product/ service

Considered

purchasing the

product/ service

Purchased the

product/ service

Clipped/ saved the ad None

Advertiser 50% 29% 17% 18% 10% 20% 3% 6% 50%

Category Norm (1,080 Ads)

57% 22% 15% 16% 12% 20% 4% 8% 43%

Category Index 88 132 113 113 83 100 75 75 116

LOUIS VUITTON JEWELRYCategory: Jewelry

1S4| Page 10

Vanity Fair - May 2011

Issue Audience (000): 6,320 Noted Assoc.Read Any

Read Most

Advertiser 80% 74% 69% -

AdMeasure Audience (000) 5,056 4,677 4,361

Issue Norm (60 Ads) 57% 51% 47% 24%

Issue Index 140 145 147

Comparable MRI Starch Adnorm: 1S4 - Jewelry

Adnorm (132 Ads) 62% 53% 51% 25%

Adnorm Index 129 140 135 NA

Data based on 9 or fewer respondents are presented in red italics

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Current Starch AdMeasure Subscribers in the United States

•Publishers

•Condé Nast

•Meredith Corporation

•Rodale

•Time Inc.

•American Express Publishing

•ESPN

•Hearst Magazines

•Bonnier

•Every Day with Rachael Ray

•The Week

•Johnson Publishing

•Wenner Media

•Smithsonian

•Agencies

•Group M (Mindshare, Mediaedge, Mediacom)

•Starcom

•Mediavest

Agencies Cont’d• OMD• UM• Zenith• Carat• The Martin Agency• MPG• PHD• Allscope Media• Kelly Scott Madison

Advertisers• Aveda• Purina• Sherwin-Williams• Progressive Insurance• Crate & Barrel• Michael Kors

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StarchMetrix In Other Countries

•Canada – Syndicated study launched in the spring of 2011

•United Kingdom – Large-scale project conducted in early 2011, discussions continue about launching syndicated study

•China – Test conducted in fall 2011

•Finland – Test conducted in fall 2011

•Czech Republic – Test launched March 2012

•Singapore – Test launched March 2012

•Hong Kong – Test launched March 2012

•Australia – Test planned for Q2 2012

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Presenter: Michal [email protected]