MAGAZINE MEDIA & ROI OCTOBER 2015

Transcription

1 MAGAZINE MEDIA & ROI OCTOBER 2015

2 STUDIES REFERENCED Receptiveness Brand Impact/ROI Synergies Categories Magnify 2011 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 Magonomics 2012 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) 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.

3 RECEPTIVITY

4 A WELCOMING ADVERTISING ENVIRONMENT NOTED SCORES NET ACTION SCORES 54% 54% 63% 66% Advertising Editorial Advertising 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 Source: PPA Magnify 2011

5 ADS GENERATE AS MANY ACTIONS AS EDITORIAL Advertising Editorial Read Any Read most Visited brand website Cut out ad Gathered more info Have a more favourable opinion Recommended the product Considering purchase Purchased Engagement Reference actions Impact actions Purchase actions Read Any Visited brand website Used for ideas Discussed/ referred Passed to someone Considering purchase Purchased Source: PPA Magnify 2011 Read Most Cut out ed

6 BRAND BUILDING

7 THE BRAND PYRAMID Bonding Advantage Performance Bonding is the most important precursor to sales, and shows whether a brand is uniquely favoured or considered as the best Advantage shows whether a brand is perceived as better than others in the same product category Performance shows whether a brand meets the consumer s performance expectations The brand pyramid explores the relationship that consumers have with a brand across 5 different metrics Relevance Relevance reflects whether a brand is seen as suiting a consumer s needs Presence Presence tracks how well known a brand is Source: Millward Brown BrandZ, Nielsen 2012

8 BONDING IS ESSENTIAL FOR SALES SUCCESS High share of wallet Bonding Advantage Performance Relevance 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 Low share of wallet Presence Source: Millward Brown BrandZ, Nielsen 2012

9 MAGAZINES ARE A STRONG DRIVER OF BONDING BONDING SCORES +25% +72% 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 Campaign value: < 2m Campaign value: 2m - 10m Source: Millward Brown BrandZ, Nielsen 2012

10 OLAY USED MAGAZINES TO IMPROVE BONDING Olay 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 Source: Millward Brown BrandZ, Nielsen 2012

11 AUSSIE DOUBLED BONDING SCORES WITH MAGAZINES P&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 Source: Millward Brown BrandZ, Nielsen 2012

12 ROI

13 ECONOMETRICS ISOLATES THE MEDIA EFFECT 10% ATL Media s contribution to sales 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

14 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 Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal

15 GRPs ACCUMULATION DATA IS ESSENTIAL FOR ACCURACY Week 1 (On sale week) +19% Mismatch between when GRPs are expected and delivered ROI TIME (WEEKS) Using accumulation data which accurately reflects magazine audiences delivery improves stated ROI by 19% on average Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal

16 MAGAZINES SHOW THE HIGHEST ROI 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 Magazines TV Online Newspapers Radio OOH ROI MEDIAN INDEX PER CHANNEL Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal

17 SALES POTENTIAL DIMINISHING RETURN CURVES Maximum potential sales Channel B 100k SPEND 100k 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 Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal

18 SALES POTENTIAL UNDERINVESTMENT IN MAGAZINES 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 500,000 1,000,000 1,500,000 2,000,000 WEEKLY MEDIA SPEND 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 Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal

19 OPTIMISING BUDGETS MAGAZINE BUDGET INCREASE +10% +20% +30% PRODUCT +1% +1.9% +2.6% SALES INCREASE 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

20 ADDRESSING UNDERINVESTMENT x2 Modelling 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 Magazines TV Online Newspapers Radio OOH ROI MEDIAN INDEX PER CHANNEL Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal

21 MEDIA SYNERGY

22 MAGAZINES DRIVE TV SYNERGY When magazines and TV are layered together, TV s ROI improves by 18% 18% 11% % ROI IMPROVEMENT TO TV WITH SYNERGY 12% 4% 7. 6 m 1% 7. 7 m Magazines Digital Display Online Video Outdoor Facebook Source: MPA & Nielsen MAPP

23 CATEGORIES

24 ADVERTISING IN MAGAZINES INCREASES SALES PERCENTAGE SALES UPLIFT BY CATEGORY 17% Magazines deliver an average 11% sales uplift across all categories 11% 7% 7% 8% 4% 7. 7 m HH goods HH Retail Healthcare Pet care Food Beauty Source: Meredith Corporation/Nielsen Catalina Solutions : Original ROI stated in

25 ADVERTISING IN MAGAZINE MEDIA INCREASES SALES ROI BY PRODUCT CATEGORY Magazines deliver an average 7.45 ROI across all categories m HH goods Healthcare Beauty Food Pet care HH Retail Source: Meredith Corporation/Nielsen Catalina Solutions :

26 CATEGORY PERFORMANCE FOOD ROI Sales Lift ROI Sales Lift Baking Supplier % Juice % Canned Vegetables % Juice (2) % Cheese Diary % 2% Soup (2) Speciality Soup % 9% Food Products 4 1% Category Ave % Soup (Iconic brand) % Source: Meredith Corporation/Nielsen Catalina Solutions :

27 CATEGORY PERFORMANCE BEAUTY ROI Sales Lift ROI Sales Lift Anti-aging cream % Lotion % Bar soap % Moisturizer % Body wash % Sunscreen % Lipstick % Category Ave % Source: Meredith Corporation/Nielsen Catalina Solutions :

28 CATEGORY PERFORMANCE HH Goods Healthcare ROI Sales Lift ROI Sales Lift Air Freshener % Feminine Care % Liquid Soap % Mouthwash % Toilet paper % Decongestant % Category Ave % Category Ave % Source: Meredith Corporation/Nielsen Catalina Solutions :

29 CATEGORY PERFORMANCE Petcare HH Retail ROI Sales Lift ROI Sales Lift Petcare % Home Retailer % Petcare % Category Ave % Category Ave % Source: Meredith Corporation/Nielsen Catalina Solutions :