- FACTOR. The quality of the Advertising impact in the Premium and Luxury campaigns

Transcription

1 - FACTOR The quality of the Advertising impact in the Premium and Luxury campaigns

2 Starting point Consumers are deeply engaged in the new communications era: they have access to more channels, more devices and voices at all times and places. Advertisers have to their avail more media, formats and ways to connect with consumers. They can share their consumer journey thanks to tecnhology and new touch points. Media must anticipate change, react to it and become the best bridge between the advertiser and the consumer, the official prescriber, the source of information and reference in certain issues, our fields of expertise.

3 Our hypothesis Given the current situation and the less than ideal economic times, efficiency may sometimes be mistaken for profitability and we forget the enormous power that media has on the message. As a result, certain Premium and Luxury brands might be very favorably communicated, or quite the contrary, when the media of choice and the timing are not suitable.

4 Main Goals This study focusses on HOW advertising has an impact on consumers, rather than on HOW MUCH impact. This is particularly applicable to luxury goods and premium products campaign, when the buyer/consumer expects media and message to be aligned in terms of tone, focus, setting and timing for the connection to be fully effective. Our main objective is to quantify the quality of the advertising impact of traditional Media, focussing on these specific campaigns.

5 Methodology An initial workshop to obtain a new insight on quality beyond the vision of the commercial and marketing teams, by engaging a multidisciplinary group (journalists, stylists, a sociologist ) Through this session, we identified the real concept of receiving a high quality impact from traditional media, considering not only the most obvious and rational aspects, but also the emotional ones. Based on this workshop, a 30 questions online questionnaire (18 min aprox) was defined and shared with consumers of all media in March 2014 (on national basis).

6 Methodology In order to analyze the premium and luxury sectors, we considered interviewees that had purchased and read Specialized Magazines (both high-end and massmarket titles) in any format over the last 3 months These 4 categories were particularly considered. WOMEN Fashion & Beauty Magazines/ Websites LIFESTYLE & MEN Magazines/ Websites TRAVEL Magazines & Websites DECORATION Magazines & Websites

7 1.- The Audience Definition & Media habits

8 Demographic variables Sex Age Current work situation 47% Women 53% Men 21% 28% 20% 31% y.o y.o y.o y.o. 23% 14% I m self employed I m employed 63% I m not working 19% Level of studies 32% 34% 15% 30% 17% Habitat 24% 22% 7% Secondary education Higher education College or Engineering degree Masters Degree Big Urban City ( area (>1-1 milion) million inhab.) Small cities ( ) Big Towns ( ) Rural areas (< inhab.) 65% Type of family Main income earner at home 42% 8% 20% 4% 3% 28% 45% Yes Along with other person They live alone With their couple With children With parents With friend Other relatives 28% No This sample represents the total spanish population who are readers of specialized magazines (EGM 3º acum 14)

9 Media Habits 92% read both print and digital magazines and spend 3h/week on each format. 86% buy print magazines at least once a quarter. MAGAZINES 25% are subscribed to digital magazines, the rest read non-exclusive online contents. TV is the mass media par excellence. However, audiovisual consumption online is growing at 30% monthly. 32% own a SmartTV (20% connect to the internet weekly). TELEVISION NEWSPAPERS 94% read print and digital newspapers. 80% buy the newspaper at least once a quarter and 20% have a subscription. They spend more time reading the digital newspaper (4h /week) vs the print version (3h) INTERNET They connect to the internet over multiple devices : 9 out of 10 via smartphone and 6 out of 10 via tablet. 94% shop online, 92% access social networks, 88% bank online and 58% upload contents to blogs or personal websites. 9

10 Media Habits What devices do you use to access online contents? Computer 99% 1% Social Networks How frequently do you do the following on the internet? 89% 3% 8% Smartphone Tablet 64% 89% 5% 2% 29% 10% Online banking 83% 5% 2% 10% Smart TV 28% 4% 3% 65% Shop online 53% 31% 10% 6% ebook 25% 6% 4% 66% Upload contents 48% 10% 6% 35% Monthly Quarterly Less Frequency Never Monthly Quarterly Less Frequency Never How frequently do you buy? Print Magazines 68% 17% 7% 8% Print newspapers 67% 13% 6% 14% Online movies 29% 13% 10% 49% Online Music 27% 11% 10% 51% Monthly Quarterly Less Frequency Never 10

11 Main Findings People use Magazines as a source of inspiration, Newspapers as a source of information and TV to unplug. Motivation to contact these media in any format: Magazines Newspapers Television To find inspiration 66% 17% 22% To be informed about my fields of interest 64% 68% 42% To learn 57% 53% 29% To unwind 53% 17% 70% To kill time 53% 21% 66% To keep abreast of current events 28% 89% 58%

12 Main Findings Their undivided attention varies from one media to another. What other tasks do you do while contacting these Media? Reading a Magazine Reading a Newspaper Watching TV Listening to the radio Watch a TV programme 38% 28% 7% Listen to the radio 36% 32% 5% Play around with my smartphone 28% 22% 57% 40% Other tasks unrelated to media 9% 9% 27% 47% Read Newspaper (print or digital) 5% 23% 27% Read Magazines (print or digital) 4% 28% 29% Any other task at the same time 29% 39% 19% 12% NOTA outdoor

13 Main Findings Advertising is valued the most in Magazines, both as a source of inspiration and for shopping ideas. What statement best summarizes what Advertising represents in? Magazines Newspapers TV General Internet Outdoor It inspires me, I like it 30% 8% 14% 9% 10% It helps me on what to buy 23% 8% 11% 12% 7% It is part of the content 15% 18% 14% 11% 18% I like it if it adds any value 15% 34% 12% 11% 11% It is invisible to me 7% 18% 7% 16% 27% I don t like it, it bothers me 6% 8% 16% 22% 11% It interrumpts what I care about 4% 6% 26% 19% 6%

14 Main Findings Print & digital Magazines are the media that moves to action the most in connection with brands. After seeing an Ad you liked on a given media, have you ever done any of the following? Magazines Newspapers TV Internet Outdoor Go to the brand s website 34% 26% 30% 47% 23% I search for further information 33% 25% 29% 39% 16% I visit the store or the online shop 29% 17% 24% 23% 15% Participate in competitions or promotions 28% 20% 17% 36% 9% I plan to buy the product or any other of the same brand 26% 17% 28% 23% 13% Discuss the Ad, product or brand with other people 20% 18% 36% 20% 15% Become a follower of the brand on social networks 15% 12% 12% 29% 7% I never do any of that 16% 27% 16% 15% 36% 14

15 Key Learnings about the Audience We are reaching to multimedia, multichannel consumers. Consumers can recognize the role played by each media in the communication of contents and advertising. They position print & digital magazines as their source of inspiration; the media they pay more attention to and where advertising is most effective in order to move them to action towards brands and purchasing. Magazines, as a media, are engaging.

16 2.- The Real value of Magazines

17 Magazines and Advertising Magazines (print & digital) are considered a valuable and engaging media. Advertising is a crucial contact point between brand and consumer. In the Luxury and Premium universe, advertising is even more important. It is a key part of the brand experience, together with the store location, the client service, the quality of the product, the story of the company, the packaging, the designer s talent, the raw materials,... Is it possible to measure the real value of Magazines for luxury brands in comparison with other traditional media?

18 What is a high-quality impact? How can it be defined? What variables does it include? - FACTOR

19 - FACTOR A quality impact is composed by 4 variables: Paper/production items Contents/ visual images Cover/ Contributors Celebrities 1) QUALITY Inherent quality of the media 2) INSPIRATION From the media towards its audience Affinity between the media and the brands. Segmentation Identification Tips and ideas More enticing products Advertising adds value Media reliability Incentive to discuss Greater attention Trustworthy Authority in specific areas Accurancy. 3)PRESCRIPTION Based in media authority and expertise 4)INTENTION TO BUY Actions linked to brand commitment Purchase consideration Look for further info about the brand and products Visit the store Recommend the brand Participate in contests and promotions

20 - FACTOR = 100 % QUALITY 35% INSPIRATION 35% PRESCRIPTION 15% BUYING INT. 15% The weigh of each variable is different because people are not really aware of how much influence Advertising have on them. That is why they give Prescription and Buying Intention lower scores.

21 Quality and Inspiration are values they directly associate to Magazines. 35% QUALITY 35% INSPIRATION Magazines Magazines Newspapers TV General internet Outdoor Newspapers TV General internet Outdoor PRESCRIPTION 15% 15% Magazines INTENTION TO BUY Magazines Newspapers Newspapers TV General internet Outdoor TV General internet Outdoor

22 As a result of weighting the 4 variables and their presence in each media we obtain a total ranking. - FACTOR % People choosing which Media is the best to create a qualitative impact: Magazines are X times more qualitative than Magazines (Print&Digital) 34 other media: Television 22 1,5 Newspapers (Print & Digital) General Internet ,7 2 Outdoor ,8

23 Main Findings In Premium and Luxury campaigns, people pay most attention to advertising in print & digital magazines. It is the media which motivates to purchase in a higher proportion. Attention degree to Advertising Motivation to purchase an advertised product Magazines 41% 33% 26% 37% 34% 30% Television 33% 32% 35% 33% 38% 29% Newspapers 29% 33% 39% 22% 30% 48% General Internet 24% 28% 49% 29% 31% 40% Outdoor 19% 38% 43% 16% 30% 54% 0% 20% 40% 60% 80% 100% A lot/ Quite Some Little/Nothing 0% 20% 40% 60% 80% 100% A lot/ Quite Some Little/Nothing

24 The Real value of High-end Magazines

25 Not all Magazines and their websites can offer the same editorial context or surround the product of the desired values. 100% of the sample read Specialized Magazines of the mentioned categories (Women, Lifestyle, Travel and Decoration), but 58% read high-end titles where the four variables are particularly looked after 42% read mass market titles, segmented by subject of interest, rather than target audiences, focus, photography, values Let s see the different perceptions and behaviour of consumers of these 2 types of Specialized Magazines. 25

26 Main Findings With regards to premium & luxury advertising, high-end magazines consumers show a different attitude and opinion than mass-market readers. % People who agrees : Advertising should be placed in an appropiate context High-end Magazines/Sites readers Mass-Market Magazines/Sites readers Pay more attention to advertising Real purchases after watching advertising

27 Main Findings In attention paid to advertising, Magazines are the leader media for both groups, althought with important differences in their scores. 41% was the score to Magazines for total audience High-End Magazines Readers Mas- Market Magazines Readers Magazines (print/digital) 49% 31% 20% 30% 36% 35% Television 38% 31% 31% 26% 33% 41% Newspapers (print/digital) 33% 32% 35% 23% 33% 44% General Internet 29% 29% 43% 17% 26% 57% Outdoor 24% 38% 38% 12% 38% 50% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% A lot/quite Some Little/Nothing

28 Main Findings However, in motivations to purchase, high-end consumers show a clear preference for Magazines. High-End Magazines Readers 37% was the score to Magazines for total audience Mas- Market Magazines Readers Magazines (print/digital) 45% 31% 24% 25% 37% 38% Television 37% 39% 24% 28% 37% 35% Newspapers (print/digital) 25% 32% 44% 17% 28% 55% General internet 32% 31% 37% 26% 30% 44% Outdoor 20% 31% 49% 10% 30% 61% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Many times/often Sometimes Few times/never

29 Main Findings - FACTOR The total ranking of Media is headed by Magazines in both groups, but with different scores: Consumers of High-end Mag/Sites Consumers of Mass Market Mag/Sites High-end consumers Magazines (Print&Digital) Television ,8 Newspapers (Print & Digital) General Internet Outdoor ,8 2,3 5,2

30 Key Learnings about Magazines Q- Factor shows that Print &Digital Specialized Magazines are the best media to ensure the most qualitative impact for total audience and for magazine readers (both groups). This result is obviously linked to the best editorial and visual context which surrounds advertising and the best timing for inspiration and consumption we can find in Magazines. However, it is concerning that both groups equally think that the natural setting for a luxury brand may be both a high-end or a mass-market title?

31 Our main concerns Are we getting consumers used to find luxury brands in unsuitable settings? Even being the context and timing important facts for them, is it becoming less relevant for brands in their global communication strategies? Are we slowly impairing the perception of consumers towards luxury brands, its codes and values? If this is so, will consumers be willing to pay the extra price for a luxury good when the dream surrounding the brand has vanished in the quest for high reach campaigns, inadequate contexts or aggresive CPT?

32 What have we learned from the - FACTOR Context and timing are very relevant factors when putting in contact premium and luxury brands with their consumers. Premium and luxury brands should not follow low-cost media strategies because they are definitely taking an enormous risk. For this specific sector, the Specialized high-end Magazines and their websites can best provide a high quality advertising impact which has a clear effect in brand perception as well as in shopping behaviour.

33 Thank you!