Effectiveness of magazine advertisingEffectiveness of magazine advertising

Summary of adspend trends &international research

Guy Consterdine

Guy Consterdine Associates&

Research Consultant, FIPP

Athens, 20 February 2009

Agenda

Recent trends in adspend

Why magazine advertising is effective

Magazine advertising influences the purchase decision-making process

Magazines create sales: used on own, or in combination with other media

Magazines are a vital part of cross-media strategies

Recent trends

in magazine adspend 2000-2008

for all countries with US$ 1+ billion in 2008

Source: ZenithOptimedia

Magazine adspend 2000-2008 (US$ m)

Source: ZenithOptimedia. 2008 is forecast

0

5,000

10,000

15,000

20,000

25,000

30,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

USA

Magazine adspend 2000-2008 (US$ m)

Source: ZenithOptimedia. 2008 is forecast

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Germany

Magazine adspend 2000-2008 (US$ m)

Source: ZenithOptimedia. 2008 is forecast

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2000 2001 2002 2003 2004 2005 2006 2007 2008

Japan

UK

France

Italy

Brazil

Netherlands

Magazine adspend 2000-2008 (US$ m)

Source: ZenithOptimedia. 2008 is forecast

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2000 2001 2002 2003 2004 2005 2006 2007 2008

Japan

UK

France

Italy

Greece

Brazil

Netherlands

Number of consumer magazinesin Greece

0

500

1000

1500

2000

2500

3000

3500

2002 2003 2004 2005 2006 2007

Source: FIPP World Magazine Trends 2008-2009

‘World Magazine Trends’

www.fipp.com

Why magazine advertising is effective

Readers develop a personal relationship with their magazines

'This medium best reflects my personal beliefs and attitudes'

1%

1%

4%

8%

8%

15%

30%

Outdoor

Direct mail

Internet

Radio

TV

Newspapers

Magazines

First preferences

Source: Smurfit/UCD for PPAI, Ireland

Using 2+ media simultaneously

Extent of multi-tasking while using each medium (Index: Magazines = 100)

193

140

100

While watching TV While using internet While reading magazines

Source: ‘Magazine Experiences Europe’, Time/Fortune

Multi-tasking:magazines attract primary attention

Of multi-media time spent with medium, % where it receives primary attention

15%

17%

35%

59%

79%

TV

Radio

Internet

Newspapers

Magazines

Source: Middletown Media Studies, Ball State University, USA

The ads are relevant

'This medium generally has advertising that I find relevant'

1%

2%

7%

8%

13%

16%

43%

Outdoor

Direct mail

Radio

Internet

TV

Newspapers

Magazines

First preferences

Source: Smurfit/UCD for PPAI, Ireland

Readers are receptive to the advertising

'I am more likely to pay attention to an advert if it appears in/on one of my favourite…'

1%

1%

3%

5%

13%

18%

47%

Outdoor

Direct mail

Internet

Radio

Newspapers

TV

Magazines

First preferences

Source: Smurfit/UCD for PPAI, Ireland

Magazine advertising influences the purchase decision-making

process

Magazine ads helpful as a buying guide

'Advertising in this medium is helpful as a buying guide'

1%

1%

5%

14%

18%

19%

33%

Outdoor

Direct mail

Radio

TV

Internet

Newspapers

Magazines

First preferences

Source: Smurfit/UCD for PPAI, Ireland

Magazine ads >> purchase

'I sometimes purchase a product or service as a direct result of the advertising in…'

1%

2%

4%

10%

14%

20%

35%

Outdoor

Direct mail

Radio

Internet

Newspapers

TV

Magazines

First preferences

Source: Smurfit/UCD for PPAI, Ireland

Dynamic Logic’s CrossMedia studies (MPA/USA)

32 campaigns using TV + magazines + internet

5 measures of ad impact

‘Exposed’ group compared with non-exposed control group

(a) Comparison of TV + magazines:

TV: its impact on own

Magazines: additional impact, on top of TV

Magazines add substantial impact to TV

Incremental effect of magazines added to TV: Av. % point increase over Control (Unexposed)

7.69.8

3.9 2.94.6

5.0

7.8

6.9

9.3

2.9

Aided brandawareness

Advertisingawareness

Messageassociation

Brandfavourability

Purchaseintent

Magazines

TV

Source: CrossMedia Research, Dynamic Logic & Millward Brown, USA

Dynamic Logic’s CrossMedia studies

(b) Comparison of TV + magazines + internet

TV: its impact on own

Online ads: additional impact, on top of TV

Magazines: additional impact, on top of TV & online

Magazines add substantial impactto TV & online

Incremental effect of online & mags added to TV: Av. % point increase over Control (Unexposed)

7.63.9 2.9

3.7

4.4

1.71.6

1.0

5.7

8.3

3.47.0

4.6

9.8

7.3

Aided brandawareness

Advertisingawareness

Messageassociation

Brandfavourability

Purchaseintent

Magazines

Online

TV

Source: CrossMedia Research, Dynamic Logic & Millward Brown, USA

Dynamic Logic’s CrossMedia studies:conclusions

On all 5 measures, magazines added substantial impact in addition to what TV and online achieved

Magazines’ added impact was especially impressive for purchasing intent

Marketing Evolution(MPA/USA)

20 campaigns using TV + magazines + online

Comparison of pre- & post-campaign scores

3 measures of impact:

Brand awareness

Brand familiarity

Intention to purchase

Magazines add to TV & online:Brand awareness

Source: Marketing Evolution for MPA, USA

Index of pre/post change(TV only=100)

100

138

153

182

TV only TV + online TV + mags TV+mags+online

Magazines add to TV & online:Brand familiarity

Source: Marketing Evolution for MPA, USA

Index of pre/post change(TV only=100)

100104

135

161

TV only TV + online TV + mags TV+mags+online

Magazines add to TV & online:Intention to purchase

Source: Marketing Evolution for MPA, USA

Index of pre/post change(TV only=100)

100 101

144

151

TV only TV + online TV + mags TV+mags+online

Marketing Evolution: conclusions

On all three measures:

• Adding magazines to TV improved the impact considerably

• Adding magazines achieved more than adding online instead

• Best strategy is to use print & online in combination

Magazine advertising creates sales:

1. Magazines used on own

Magazine advertising sales

www.ppamarketing.net

‘Sales Uncovered’

TNS Superpanel in UK:

household purchases, media consumption

20 brands

Week-by-week sales examined

Analysed against week-by-week mag exposures

Among:

- Exposed to mag advertising

- Not exposed to mag advertising (control)

Magazine advertising increased salesby an additional 11.6%

Percentage increase in sales £: pre-post change

10.0

21.6

Non-exposed Exposed

11.6% additional increase

Source: ‘Sales Uncovered, TNS for PPA, UK

Magazine advertising creates sales:

2. Magazines used with TV

Magazine achievement similar to TV’s…

Percentage increase in sales (£)Magazine & TV weights

3.9

26.328.9

Light/non mags & TV Heavy mags, light/non TV Heavy TV, non mags

Source: ‘Sales Uncovered, TNS for PPA, UK

…but at a third of the cost

Average budget split

22%

70%

8%

TV

Magazines

Other

Source: ‘Sales Uncovered, TNS for PPA, UK

Budget implications

Expenditure

Eff

ect

ive

ne

ss

Magazines

TV

Budget implications

Expenditure

Eff

ect

ive

ne

ss

Magazines

TV

Further sources

www.fipp.com

www.ppa.ie

www.consterdine.com

www.ppa.ie

Summary

Personal relationships, intense reading >>

receptive to ads

Magazine advertising influences the purchase decision-making process

Magazines create sales: used on own, or in combination with other media

Magazines are a vital part of multi-channel communication strategies

Summary