MAGAZINE MEDIA ROI OCTOBER 2015. STUDIES REFERENCED Magnify 2011 PPA/GfK A large scale study which investigates how consumers read magazine content

MAGAZINE MEDIA & ROIOCTOBER 2015

STUDIES REFERENCED

Magnify2011 – 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

Magonomics2012 – 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 AdvertisingEditorial 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 actionsEngagement Reference actions

Adve

rtisi

ng

Impact actions

Read most

Read Any

25%

45%

Read Any

Read Most

50%

33%

Gatheredmore info

Visited brandwebsite

Cut out ad7%

16%

18%

Used for ideas

Cut out ed

Visited brandwebsite

18%

11%

7%

Have a morefavourableopinion

Recommendedthe product14%

19%

Discussed/referred

Passedto someone

19%

13%

Consideringpurchase

Purchased9%

22%

Consideringpurchase

Purchased

12%

4%

Edito

rial

BRAND BUILDING

THE BRAND PYRAMID

Advantage

Relevance

Presence

Performance

BondingThe 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


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


OLAY USED MAGAZINES TO IMPROVE BONDING

82008 2009 2010

9 11Olay 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


AUSSIE DOUBLED BONDING SCORES WITH MAGAZINES

42007 2009 2011

5 8P&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


ROI

ECONOMETRICS ISOLATES THE MEDIA EFFECT

SALES UPLIFT

ATL Media’s contribution to sales

DISTRIBUTION

PRICING

PROMOTIONS

COMPETITORACTIVITIES

PAY-DAYS +HOLIDAYS

CLIMATEFACTORS

BROADCASTMEDIA

PRINTMEDIA

ONLINE

OUTDOOR& CINEMA

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


ACCUMULATION DATA IS ESSENTIAL FOR ACCURACYGR

Ps

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


Mismatch between when GRPs are expected and delivered

MagazinesTVOnlineNewspapersRadioOOH

16715013710397

MAGAZINES SHOW THE HIGHEST ROI

ROI MEDIAN INDEX PER CHANNEL

60


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 PO

TEN

TIAL

SPEND

Channel A100k

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


UNDERINVESTMENT IN MAGAZINESSA

LES

POTE

NTI

AL

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


OPTIMISING BUDGETS

+10% +30%+20%MAGAZINEBUDGET 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


MagazinesTVOnlineNewspapersRadioOOH

16715013710397

ROI MEDIAN INDEX PER CHANNEL

60

x2Modelling 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

Magazines Digital Display Online Video Outdoor Facebook

18%

11%

12%

4%

1%

7.6m

7.7m

% ROI IMPROVEMENT TO TV WITH SYNERGYWhen 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

HH goods HH Retail Healthcare Pet care Food Beauty

4%

7% 7%8%

11%

17%

7.7m

PERCENTAGE SALES UPLIFT BY CATEGORY Magazines deliver an average 11% sales

uplift across all categories

ADVERTISING IN MAGAZINE MEDIA INCREASES SALES

HH goods Healthcare Beauty Food Pet care HH Retail

£4.59£5.81 £6.07

£7.80

£10.10

£18.59

7.7m

ROI BY PRODUCT CATEGORY Magazines deliver an average £7.45 ROI

across all categories


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



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



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




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

Documents

MAGAZINE MEDIA ROI OCTOBER 2015. STUDIES REFERENCED Magnify 2011 PPA/GfK A large scale study which investigates how consumers read magazine content