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ROI of advertising could be much higher with a better budget allocation. More print in the media mix means more return of your advertising investment
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MEASURING THE EFFECTIVENESS OF PRINT MEDIA IN AN INTEGRATED MEDIA PLAN
BRUSSELS, MAY 2014
THE RESULTS OF AN ANALYSIS OF 500 + ECONOMETRIC EVALUATED CAMPAIGNS
2
WHAT IS META ANALYSIS?
META ANALYSIS is the “analysis of individual analysis results”, pooled and re-analysed so as to gain deeper insights from wider experience.
Using the BrandScience results vault of previous econometric model studies, we can:
• Understand how different print media deliver for clients across different categories • Understand how different print media affect the performance of a campaign • Identify the rules to improve the use of print media in future campaigns
OBJECTIVES
3
WHICH RESULTS CAN BE GENERATED?
• Typically return on investment (ROI) measures the incremental profit generated by €1 investment
• Reported in ROI; sales generated from €1 invested, medium by medium
• So a €1 ROI means that €1 invested in media will generate €1 incremental profit return. A higher than €1 ROI means immediate payback of the investment
• However, the BrandScience Results Vault measures Revenue ROI (RROI) as it is often hard to get profitability information from clients
• So, a €5 RROI means each €1 invested in advertising delivers €5 of incremental revenue
• Effectiveness of newspapers magazines, direct mail and door drops
• Compare the effectiveness of these print media to other media
• Consider the impact that the weight of print media has on its effectiveness and overall campaign effectiveness
• Understand how this has changed over time
4
THE EFFECTIVENESS (RROI) OF MEDIA TYPES IN DIFFERENT PRODUCT CATEGORIES
5
EFFECTIVENESS ALL MEDIA Total FMCG Category – Europe
1.51
1.86
0.90
1.55
3.31
1.61
2.30
€0.0
€0.5
€1.0
€1.5
€2.0
€2.5
€3.0
€3.5
TV Radio Outdoor Online Cinema Newspaper Magazine Door drops Direct mail
Revenu
e RO
I
6
EFFECTIVENESS ALL MEDIA Total Services Category – Europe
11.57
7.41 8.43
9.93
5.71
9.43 8.29
3.78 4.91
€0
€2
€4
€6
€8
€10
€12
€14
TV Radio Outdoor Online Cinema Newspaper Magazine Door drops Direct mail
Revenu
e RO
I
7
EFFECTIVENESS ALL MEDIA FMCG - Food and Drink Category - Europe
1.76
2.48
0.99
1.58
3.10
1.85
3.27
€0.0
€0.5
€1.0
€1.5
€2.0
€2.5
€3.0
€3.5
TV Radio Outdoor Online Cinema Newspaper Magazine Door drops Direct mail
Revenu
e RO
I
8.07 7.86 7.45
9.71 9.08 8.80 8.48
6.33 5.33
€0.0
€2.0
€4.0
€6.0
€8.0
€10.0
€12.0
TV Radio Outdoor Online Cinema Newspaper Magazine Door drops Direct mail
Revenu
e RO
I
8
EFFECTIVENESS ALL MEDIA Retail Category - Europe
9
EFFECTIVENESS ALL MEDIA services Technology Category – Europe
2.44
1.21
0.71
1.97
3.10
2.21
4.62
2.66
3.80
€0.0
€0.5
€1.0
€1.5
€2.0
€2.5
€3.0
€3.5
€4.0
€4.5
€5.0
TV Radio Outdoor Online Cinema Newspaper Magazine Door drops Direct mail
Revenu
e RO
I
10
WHAT IS THE OPTIMAL SHARE FOR PRINT MEDIA?
11
EFFECTIVENESS NEWSPAPERS FMCG - Europe
Newspapers RROI by tertile – best at 5-12% Example: when newspapers advertising represent 5-12 % of the media mix the RROI is 1.71
1.29
1.71
1.34
€0.0
€0.5
€1.0
€1.5
€2.0
Low Medium High
1 – 5% 5 – 12% 12 – 55%
12
EFFECTIVENESS MAGAZINES FMCG - Europe
Magazines RROI by tertile – use limited budget
1 – 4% 4 – 10% 11 – 36%
1.98
1.44
1.76
€0.0
€0.5
€1.0
€1.5
€2.0
€2.5
Low Medium High
13
EFFECTIVENESS NEWSPAPERS Services - Europe
1 – 7% 7 – 17% 18 – 61%
4.33 6.05
14.60
€0.0
€2.0
€4.0
€6.0
€8.0
€10.0
€12.0
€14.0
€16.0
Low Medium High
Newspapers RROI by tertile – use substantial budget
14
EFFECTIVENESS MAGAZINES Services - Europe
0 -‐ 2% 2 -‐ 3% 4 – 11%
2.15
3.81
4.58
€0.0 €0.5 €1.0 €1.5 €2.0 €2.5 €3.0 €3.5 €4.0 €4.5 €5.0
Low Medium High
Magazines RROI by tertile - ideal more than 4%
15
EFFECTIVENESS DIRECT MAIL Total Services - Europe
1 – 5% 6 – 11% 11 – 29%
4.88
4.11
4.41
€3.6
€3.8
€4.0
€4.2
€4.4
€4.6
€4.8
€5.0
Low Medium High
Direct mail RROI by tertile – go niche or over 11%
16
EFFECTIVENESS DOOR DROPS Total Services - Europe
8 – 12% 12 – 14% 15 -‐ 25%
2.49
3.34
5.34
€0.0
€1.0
€2.0
€3.0
€4.0
€5.0
€6.0
Low Medium High
Door drops RROI by tertile – best over 15%
17
HOW NEWSPAPERS AFFECTS TOTAL CAMPAIGN EFFECTIVENESS FMCG - Europe
1 – 5% 5 – 12% 12 – 55%
0.78
1.50
1.18
0.86
€0.0
€0.2
€0.4
€0.6
€0.8
€1.0
€1.2
€1.4
€1.6
No newspapers Low Medium High
At any budget tertile newspapers increase the campaign effectiveness
18
HOW MAGAZINES AFFECTS TOTAL CAMPAIGN EFFECTIVENESS FMCG - Europe
0 – 4% 4 – 9% 10 – 26%
0.83
1.33 1.37
1.11
€0.0
€0.2
€0.4
€0.6
€0.8
€1.0
€1.2
€1.4
€1.6
No magazines Low Medium High
At any budget tertile magazines increase the campaign effectiveness
19
HOW NEWSPAPERS AFFECTS TOTAL CAMPAIGN EFFECTIVENESS Total Services - Europe
0 – 7% 7 – 17% 17 – 59%
3.87 3.13
5.12
9.51
€0.0
€2.0
€4.0
€6.0
€8.0
€10.0
No newspapers Low Medium High
Over double increase of RROI at highest terNle of newspaper use in campaign
20
HOW MAGAZINES AFFECTS TOTAL CAMPAIGN EFFECTIVENESS Total Services - Europe
0 -‐ 1% 1 -‐ 3% 3 – 42%
6.80
2.57 3.47
7.06
€0.0
€1.0
€2.0
€3.0
€4.0
€5.0
€6.0
€7.0
€8.0
No magazines Low Medium High
Spend nothing or at least 3%
21
HOW MAGAZINES AFFECTS TOTAL CAMPAIGN EFFECTIVENESS FMCG - UK
1 – 4% 4 – 7% 9 – 12%
0.76 0.70
1.75 1.54
€0.0
€0.4
€0.8
€1.2
€1.6
€2.0
No magazines Low Medium High
Spend at least 4% of budget
22
HOW NEWSPAPERS AFFECTS TOTAL CAMPAIGN EFFECTIVENESS TOTAL SERVICES - UK
1 – 4% 4 – 7% 9 – 12%
3.28
5.21
7.53
10.45
€0.0
€2.0
€4.0
€6.0
€8.0
€10.0
€12.0
No newspapers Low Medium High
Always include newspapers, the more the beTer
23
HOW DIRECT MAIL AFFECTS TOTAL CAMPAIGN EFFECTIVENESS TOTAL SERVICES - UK
1 – 14% 15 – 18% 18 – 39%
7.83 8.74
5.18
3.05
€0.0
€2.0
€4.0
€6.0
€8.0
€10.0
No direct mail Low Medium High
Best spend between 1-‐14% of budget
24
CLEAR EVIDENCE THAT USING ANY PRINT IMPROVES CAMPAIGN EFFECTIVENESS Optimal use of Print media will deliver more revenue, but using it at any level of investment is always beneficial to a campaign
Overall campaign effecNveness always higher when magazines are used
Including newspapers always improves overall campaign effecNveness
25
THE IMPACT OF PRINT MEDIA ON THE EFFECTIVENESS OF OTHER MEDIA TYPES
26
PRINT’S IMPACT ON TV EFFECTIVENESS FMCG - Europe
0.95
1.53 1.74 1.77
0.87
1.37
1.61 1.50
€0.00 €0.20 €0.40 €0.60 €0.80 €1.00 €1.20 €1.40 €1.60 €1.80 €2.00
TV alone TV with print TV with online TV with online and print
Revenu
e RO
I
TV RROI Total Comms RROI
27
PRINT’S IMPACT ON TV EFFECTIVENESS FMCG - Europe
5.15
11.32
7.75 8.81
7.66
9.46
6.34 7.64
€0.00
€2.00
€4.00
€6.00
€8.00
€10.00
€12.00
TV alone TV with print TV with online TV with online and print
Revenu
e RO
I
TV RROI Total Comms RROI
28
NEWSPAPERS IMPACT ON TV EFFECTIVENESS FMCG - UK
4.82
7.59
€0.0
€1.0
€2.0
€3.0
€4.0
€5.0
€6.0
€7.0
€8.0
No newspapers With newspapers
TV RRO
I
29
MAGAZINES IMPACT ON TV EFFECTIVENESS FMCG - UK
0.89
1.18
€0.0
€0.2
€0.4
€0.6
€0.8
€1.0
€1.2
€1.4
No magazines With magazines
TV RRO
I
30
NEWSPAPERS IMPACT ON ONLINE EFFECTIVENESS UK
6.41
9.61
€0.0
€2.0
€4.0
€6.0
€8.0
€10.0
€12.0
No newspapers With newspapers
Online RR
OI
31
ADDITIONAL REVENUES WITH AN OPTIMAL BUDGET ALLOCATION FOR NEWSPAPERS AND MAGAZINES
32
BUDGET ALLOCATION EUROPE 1000+ cases – Services technology - FMCG - Europe
31%
15%
15%
16%
16%
16%
10%
11%
1%
5% 6%
27%
31%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
FMCG
Services -‐ Technology
TV Online Newspapers Magazines Door Drops Direct Mail Other
33
BUDGET ALLOCATION OPTIMISATION FMCG - Europe
15% 6%
16% 12%
10% 28%
27% 13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Average OpNmal
Other Direct Mail Door Drops Magazines Newspapers Online TV 31%
40%
Increase print share from 26% to 41%
34
THE REVENUE INCREASE WITH OPTIMISED PRINT ALLOCATION FMCG - Europe
Europe FMCG campaigns deliver €0.64m incremental revenue with €1 mio investment and €0.75m additional revenues when print media investment is optimised (+17%)
1.00
1.64 1.75
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
Inv/Re
venu
e, m
Investment
Revenue*
OpNmised Revenu
35
BUDGET ALLOCATION OPTIMISATION Services Technologies - Europe
16%
20% 16%
15% 11% 3% 5% 12% 6%
20% 31%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Average OpNmal
Other Direct Mail Door Drops Magazines Newspapers Online TV
15% 25%
Increase print share from 38% to 50%
36
THE REVENUE INCREASE WITH OPTIMISED PRINT ALLOCATION Services Technology - Europe
€ 1.00
€ 2.35 € 2.63
€ -‐
€ 0.50
€ 1.00
€ 1.50
€ 2.00
€ 2.50
€ 3.00
Inv/Re
venu
e, m
Investment
Revenue*
OpNmised Revenue
Europe Services Technology campaigns deliver €1.35m incremental revenue (with investment of €1m), with optimised print budget the additional revenues are €0.28m (+ 21%)
37
APPENDIX
38
METHODOLOGY OF THE META ANALYSIS
Meta analysis is the “analysis of individual analysis results”, pooled and re-analysed so as to gain deeper insights from wider experience
Using the BrandScience results vault of previous econometric model studies as our universe it is possible to: • Understand how different print media deliver for
clients across different categories • Understand how different print media affect the
performance of a campaign • Identify the rules to improve the use of print media
in future campaigns
Market mix modelling is a statistical method for examining the relationship between one dependent variable and a set of several explanatory variables
• Originally used to analyse the economy, now to analyse marketing mix
• Create a formula or recipe for your sales: • Sales = C + X*Distribution + Y*Price + Z*Market
trend + W*Advertising + … • Help understand all the factors driving sales (not
just communications), not just factors under your control
39
ECONOMETRIC MODELS NEED TO CONSIDER ALL THE FACTORS THAT COULD INFLUENCE THE KPI
Advertising New product/
packaging changes
Price mix/ promotions
Competitors
External coverage/ PR/WOM
Availability/ distribution
Economic/ market trends
Your Brand Key Metric
40
METHODOLOGY OF THE META ANALYSIS
Individual econometric models from Ominicom media clients
FMCG Europe • Av spend = x • % Print = y • TV RROI = z
Services UK • Av spend = x • % Print = y • TV RROI = z
Goods Europe • Av spend = x • % Print = y • TV RROI = z
41
SAMPLE SIZES AND INFORMATION ON COUNTRIES IN THE ANALYSIS
ANY PRINT RROI
NEWSPAPER RROI
MAGAZINES RROI
DOOR DROPS RROI
DIRECT MAIL RROI
Europe 377 337 99 27 42 UK 123 112 19 27 30 Germany 31 20 16 Belgium 4 4 Czech Republic 6 6 Denmark 91 83 25 1 Spain 32 32 7 2 Finland 7 4 3 France 7 7 Ireland 5 5 Italy 4 4 Norway 40 39 18 1 Portugal 3 1 3 Sweden 24 20 8 8
42
RESULTS AVAILABLE BY MARKET AND CATEGORY
CATEGORY EUROPE UK GERMANY
FMCG + + +
SERVICES - - +
GOODS +
SUB CATEGORY EUROPE UK GERMANY
HOUSEHOLD -
HEALTH AND BEAUTY +
FOOD/DRINK + +
AUTOMOTIVE -
FINANCIAL SERVICES -
LEISURE & ENT -
RETAIL + _
TECHNOLOGY + +
TRAVEL + +
43
More information: Ulbe Jelluma [email protected] www.printpower.eu #printpower #ulbe Print Power Ltd Icon Centre Eastern Way Daventry NN11 OQB United Kingdom
