MEASURING THE EFFECTIVENESS OF PRINT MEDIA IN AN INTEGRATED MEDIA PLAN THE RESULTS OF AN ANALYSIS OF ECONOMETRIC EVALUATED CAMPAIGNS

Transcription

1 MEASURING THE EFFECTIVENESS OF PRINT MEDIA IN AN INTEGRATED MEDIA PLAN THE RESULTS OF AN ANALYSIS OF ECONOMETRIC EVALUATED CAMPAIGNS BRUSSELS, MAY 2014

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 2

3 WHICH RESULTS CAN BE GENERATED? OBJECTIVES 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 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 3

4 THE EFFECTIVENESS (RROI) OF MEDIA TYPES IN DIFFERENT PRODUCT CATEGORIES 4

5 Revenue ROI EFFECTIVENESS ALL MEDIA Total FMCG Category Europe TV Radio Outdoor Online Cinema Newspaper Magazine Door drops Direct mail 5

6 Revenue ROI EFFECTIVENESS ALL MEDIA Total Services Category Europe TV Radio Outdoor Online Cinema Newspaper Magazine Door drops Direct mail 6

7 Revenue ROI EFFECTIVENESS ALL MEDIA FMCG - Food and Drink Category - Europe TV Radio Outdoor Online Cinema Newspaper Magazine Door drops Direct mail 7

8 Revenue ROI EFFECTIVENESS ALL MEDIA Retail Category - Europe TV Radio Outdoor Online Cinema Newspaper Magazine Door drops Direct mail 8

9 Revenue ROI EFFECTIVENESS ALL MEDIA services Technology Category Europe TV Radio Outdoor Online Cinema Newspaper Magazine Door drops Direct mail 9

10 WHAT IS THE OPTIMAL SHARE FOR PRINT MEDIA? 10

11 EFFECTIVENESS NEWSPAPERS FMCG - Europe 2.0 Newspapers RROI by tertile best at 5-12% Example: when newspapers advertising represent 5-12 % of the media mix the RROI is Low Medium High 1 5% 5 12% 12 55% 11

12 EFFECTIVENESS MAGAZINES FMCG - Europe 2.5 Magazines RROI by tertile use limited budget Low Medium High 1 4% 4 10% 11 36% 12

13 EFFECTIVENESS NEWSPAPERS Services - Europe Newspapers RROI by tertile use substantial budget Low Medium High 1 7% 7 17% 18 61% 13

14 EFFECTIVENESS MAGAZINES Services - Europe Magazines RROI by tertile - ideal more than 4% Low Medium High 0-2% 2-3% 4 11% 14

15 EFFECTIVENESS DIRECT MAIL Total Services - Europe 5.0 Direct mail RROI by tertile go niche or over 11% Low Medium High 1 5% 6 11% 11 29% 15

16 EFFECTIVENESS DOOR DROPS Total Services - Europe Door drops RROI by tertile best over 15% Low Medium High 8 12% 12 14% 15-25% 16

17 HOW NEWSPAPERS AFFECTS TOTAL CAMPAIGN EFFECTIVENESS FMCG - Europe At any budget tertile newspapers increase the campaign effectiveness No newspapers Low Medium High 1 5% 5 12% 12 55% 17

18 HOW MAGAZINES AFFECTS TOTAL CAMPAIGN EFFECTIVENESS FMCG - Europe At any budget tertile magazines increase the campaign effectiveness No magazines Low Medium High 0 4% 4 9% 10 26% 18

19 HOW NEWSPAPERS AFFECTS TOTAL CAMPAIGN EFFECTIVENESS Total Services - Europe 10.0 Over double increase of RROI at highest tertile of newspaper use in campaign No newspapers Low Medium High 0 7% 7 17% 17 59% 19

20 HOW MAGAZINES AFFECTS TOTAL CAMPAIGN EFFECTIVENESS Total Services - Europe Spend nothing or at least 3% No magazines Low Medium High 0-1% 1-3% 3 42% 20

21 HOW MAGAZINES AFFECTS TOTAL CAMPAIGN EFFECTIVENESS FMCG - UK 2.0 Spend at least 4% of budget No magazines Low Medium High 1 4% 4 7% 9 12% 21

22 HOW NEWSPAPERS AFFECTS TOTAL CAMPAIGN EFFECTIVENESS TOTAL SERVICES - UK 12.0 Always include newspapers, the more the better No newspapers Low Medium High 1 4% 4 7% 9 12% 22

23 HOW DIRECT MAIL AFFECTS TOTAL CAMPAIGN EFFECTIVENESS TOTAL SERVICES - UK 10.0 Best spend between 1-14% of budget No direct mail Low Medium High 1 14% 15 18% 18 39% 23

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 effectiveness always higher when magazines are used Including newspapers always improves overall campaign effectiveness 24

25 THE IMPACT OF PRINT MEDIA ON THE EFFECTIVENESS OF OTHER MEDIA TYPES 25

26 Revenue ROI PRINT S IMPACT ON TV EFFECTIVENESS FMCG - Europe TV RROI Total Comms RROI TV alone TV with print TV with online TV with online and print 26

27 Revenue ROI PRINT S IMPACT ON TV EFFECTIVENESS FMCG - Europe TV RROI Total Comms RROI TV alone TV with print TV with online TV with online and print 27

28 TV RROI NEWSPAPERS IMPACT ON TV EFFECTIVENESS FMCG - UK No newspapers With newspapers 28

29 TV RROI MAGAZINES IMPACT ON TV EFFECTIVENESS FMCG - UK No magazines With magazines 29

30 Online RROI NEWSPAPERS IMPACT ON ONLINE EFFECTIVENESS UK No newspapers With newspapers 30

31 ADDITIONAL REVENUES WITH AN OPTIMAL BUDGET ALLOCATION FOR NEWSPAPERS AND MAGAZINES 31

32 BUDGET ALLOCATION EUROPE cases Services technology - FMCG - Europe TV Online Newspapers Magazines Door Drops Direct Mail Other Services - Technology 15% 16% 16% 11% 5% 6% 31% FMCG 31% 15% 16% 10% 1% 27% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 32

33 BUDGET ALLOCATION OPTIMISATION FMCG - Europe Increase print share from 26% to 41% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 13% 27% 28% 10% 16% 12% 6% 15% 40% 31% 40% Other Direct Mail Door Drops Magazines Newspapers Online TV 0% Average Optimal 33

34 Inv/Revenue, m 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%) Investment Revenue* Optimised Revenu

35 BUDGET ALLOCATION OPTIMISATION Services Technologies - Europe Increase print share from 38% to 50% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 31% 6% 5% 11% 16% 16% 15% 15% Average 5% 20% 12% 3% 15% 20% 25% 25% Optimal Other Direct Mail Door Drops Magazines Newspapers Online TV 35

36 Inv/Revenue, m THE REVENUE INCREASE WITH OPTIMISED PRINT ALLOCATION Services Technology - Europe Europe Services Technology campaigns deliver 1.35m incremental revenue (with investment of 1m), with optimised print budget the additional revenues are 0.28m (+ 21%) Investment Revenue* Optimised Revenue - 36

37 APPENDIX 37

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 38

39 ECONOMETRIC MODELS NEED TO CONSIDER ALL THE FACTORS THAT COULD INFLUENCE THE KPI Price mix/ promotions Advertising New product/ packaging changes Competitors Economic/ market trends Your Brand Key Metric External coverage/ PR/WOM Availability/ distribution 39

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 40

41 SAMPLE SIZES AND INFORMATION ON COUNTRIES IN THE ANALYSIS ANY PRINT RROI NEWSPAPER RROI MAGAZINE S RROI DOOR DROPS RROI DIRECT MAIL RROI Europe UK Germany Belgium 4 4 Czech Republic 6 6 Denmark Spain Finland France 7 7 Ireland 5 5 Italy 4 4 Norway Portugal Sweden

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 #printpower #ulbe Print Power Ltd Icon Centre Eastern Way Daventry NN11 OQB United Kingdom 43