Reinforcing the Newspaper Value Proposition
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1 Reinforcing the Newspaper Value Proposition Using validation research to meet the ROI challenge June 2017
2 The most common challenges to newspaper effectiveness Circulars lead nearly all channels in incremental sales lift, but rank near the bottom in relative ROI.¹ The value of paid newspapers is declining as we reach a predominantly older demographic.² Consumer have shifted to other price and item information sources.³ Generalized conclusions intended to de-value newspapers. Source - ¹Hudson River Group client study; ²Nielsen/Scarborough readership research; ³Largely anecdotal. CONFIDENTIAL
3 Newspapers still reach a massive audience 69% of U.S. Adults or 169 MILLION Read in Print, Online or Mobile in any given month Adding newspapers increase the ROI of Retail ad campaigns Consumers use newspaper coupons Consumers most often purchase products as a result of newspaper inserts 2.8x 82% 53% Source: Nielsen Scarborough 2016; The ROI Study Omnicom; Local Knowledge Study AMG/Parade; 2K17 Coupon Intelligence Study Valassis.
4 Meeting the ROI challenge Validation Research
5 The ROI Study Omnicom Media Group (click here to view full study) Print boosts overall campaign ROI by three times on average Adding print makes TV twice as effective and online display four times as effective Spend on print should return to 2013 levels, and can be boosted further by use of digital brands Source: Benchmarketing Omnicom Media Group, 2016.
6 The CMO Survey Duke University (click here to view full study) Q: How do you measure the quantitative impact of your marketing? We don t measure marketing ROI 20.4% Manager judgements 19.8% Other 9.3% Experiments 11.9% Customer surveys 20.7% Econometric modeling 17.8%
7 2K16 Coupon Intelligence Report Valassis Communications (click here to view full study) Millennials use newspaper coupons as much as other age cohorts I use paper coupons Total Millennials Gen X Boomers I get in the mail 87% 85% 90% 86% I get in a store 87% 85% 90% 86% I get from a newspaper coupon book 82% 82% 83% 79% I print from computer 78% 78% 81% 74% I use paperless discounts* 66% 81% 74% 50%
8 The Local Knowledge Study AMG/Parade, Coda Ventures (click here to view full study)
9 Newspaper Readership Study Nielsen Scarborough (click here to view full study) Digital news products attract readers that are younger, more affluent, and better educated. PRINT NEWSPAPER READERS 5% 20% 21% 37% 17% DIGITAL NEWSPAPER READERS 6% 32% 28% 28% 5% 0% 20% 40% 60% 80% 100% GEN Z (18-20) MILLENIALS (21-34) GEN X (35-49) BOOMERS (50-69) GREATEST GENERATION (70+)
10 Millennials: An Emerging Consumer Powerhouse Quad/Graphics Three Myths About Millennials: Millennials Ignore Print Print content is more stimulating and is perceived as more genuine. During the past 30 days, 49 percent took print coupons with them to the store. 72% use grocery retail inserts 6 percent more than the average shopper. Millennials Only Engage in a Digital Environment Time spent does not equate to time engaged with marketing messages. Nearly 50% of millennials ignore internet advertising more than double the % for print. Millennials Spend Carelessly Nearly half think it s fun to see how much money they can save with coupons. More than half would switch from regular brand if they had a coupon. (click here to view full study)
11 9 Quick Facts About Newspaper Media News Media Alliance Newspaper media consumption is strong and spans print and digital formats. 63% of U.S. adults, 153 million, read newspaper media content in an average week. 56% of adults ages read newspaper media in a typical week. 8 in 10 Americans read newspaper digital media each month. (click here to view full study) 29% use a combination of print, online and mobile platforms to access newspaper content.
12 Insert effectiveness KEY BENEFITS TEN REASONS TO USE NEWSPAPER CIRCULARS Impact Control Targeting Flexibility Efficiency Date Delivery Environment Response Deadlines Saturation Inserts tend to slide out of the newspaper, demanding to be read. Advertisers control size, color, pages, items, reproduction with a insert. Advertisers can cost effectively distribute, by zip code or by market and everything in between. Newspapers can deliver single sheets, cards, and catalogs, they can distribute large format and small, heavy stock or light, and on the day needed. Inserts are cost efficient in terms of distribution costs, often able to deliver for less than 5 cents a household. Newspapers deliver inserts on the day chosen as opposed to within a window of time - Sunday or daily. A welcomed guest in a subscriber s home, inserts coming in newspapers are more likely to be seen and read. Inserts can achieve redemption rates of up to 10% depending upon the offer. Inserts have a proven results track record. Newspapers can accept inserts on a shorter lead time than other distribution vehicles allowing the ultimate in advertiser responsiveness to market conditions, merchandising and pricing needs. Newspapers are able to distribute inserts to the masses. Both subscribers and nonsubscribers can be reached through the typical newspaper program.
13 Still the most powerful driver of traffic and sales Use validation research from every available source. Reinforce your value proposition with local success stories. Utilize your own data to develop smart pricing and sales strategies.
14 Action steps For more information about how Tactician Media business intelligence products and consulting services can help build your business, contact: Mike Petrak Executive Vice President (303) Lisa Szal Vice President, Client Strategy (215) CONFIDENTIAL 2017 Tactician Media LLC, All Rights Reserved.
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