Effectiveness of magazine advertising Summary of adspend trends & international research Guy...

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



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



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



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


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


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


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


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



100104

135

161


Magazines add to TV & online:Intention to purchase



100 101

144

151


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


…but at a third of the cost

Average budget split

22%

70%

8%

TV

Magazines

Other


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

Effectiveness of magazine advertising Summary of adspend trends & international research Guy...

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