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Transcript of The research evidence - Irish and international A. The case for magazine advertising B. Advertising...
The research evidence -Irish and international
A. The case for magazine advertising
B. Advertising in a recession
Guy Consterdine
Guy Consterdine Associates
24 February 2009
Ad agencies
Newspaper publishers
Magazine publishers: consumer & b2b
Media research consultancy
The Case For Magazine AdvertisingThe Case For Magazine Advertising
Objective
To provide research evidence which supports the arguments for using magazine advertising
Consumer & b2b
Seven key points
Two reports
www.ppa.ie
1. Readers develop
a personal relationship
with their magazines
Matching a magazine’s personalityto reader’s personality
‘The Reader’s Perspective’
National Magazine Company, UK
Sample: readers of 8 magazines
Measured: readers’ attitudes to their chosen magazines
Attitudes to chosen magazines
1) Reader has own perception of what type of person he/she wishes to be
2) When a magazine’s personality chimes with self-image, high level of identification. ‘This is my magazine’, an informed friend
3) Reader feels ‘my magazine helps me become the type of person I want to be’
4) Reader has a powerful, trusting relationship with ‘my’ magazine
Magazines are most tailored to audience
'It is usually tailored to meet my individual needs'
1%
3%
6%
12%
14%
19%
35%
Outdoor
Direct mail
Radio
TV
Newspapers
Internet
Magazines
First preferences
Source: Smurfit/UCD for PPAI, Ireland
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
Easy Food reader survey:inspiration & emotional reassurance
• 99% of readers agreed ‘Easy Food provides inspiring meals for my family & myself’
• 94% agreed ‘Following a recipe’s instructions gives me confidence’
• 99% agreed ‘I intend to cook something from Easy Food’
You & Your Money:personal friend with reliable advice
Advice from financial institutions is biased, and confusing
Y&YM is impartial, trusted
“For people like me”
Emotional closeness symbolised by Eddie Hobbs: “Eddie”
Eddie, and Y&YM, are like personal friends
Other reader studies?
Other editorial research?
2. Magazines are well read
Extensive reading time:twice that of newspaper supplements
Time spent reading average issue (minutes)
54
26
Paid-for magazines Newspaper supplements
Source: Quality of Reading Survey, PPA
It’s a multi-tasking media world
Consumers are increasingly using more than one medium at a time
Magazines less likely to be used at same time as other media
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’, Germany/France, UK, Time/Fortune
It’s a multi-tasking media world
Consumers are increasingly using more than one medium at a time
Magazines less likely to be used at same time as other media
When they are, likely to capture the prime focus of attention
You can’t read a publication without focusing on it
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
3. Readers are receptive to the advertising
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
Lowest ad avoidance for magazines
Almost always actively avoid the advertising in…
5%
7%
7%
11%
12%
25%
Magazines
Newspapers
Outdoor
TV
Radio
Internet
Source: Smurfit/UCD for PPAI, Ireland
4. 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
Image reader survey:action triggered by ads
• 82% of readers bought a product advertised in Image• 81% tried new health & beauty services featured• 88% considered the advertising in Image is useful
Magazines are effective at all stages of the ‘purchase funnel’
Brand awareness
Ad awareness
Understood message
Favourable impression
Intention to buy
Buy
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
5. Magazines make digital media and buzz work harder
Magazines drive online searching
Have been influenced by this medium to start an online search for merchandise
11%
25%
28%
30%
35%
42%
43%
47%
Outdoor posters
Online ads
Email ads
Radio
Cable TV
Newspapers
Broadcast TV
Magazines
Source: Simultaneous Media Usage Survey 9, BIGresearch USA
Magazines > online > purchase
Made a PURCHASE after seeing an ad in this medium AND conducting an online search as a result
19%
19%
23%
30%
Out-of-home ads
Radio ads
TV ads
Magazine ads
Source: In-Market Media Usage Survey, Jupiter Research, USA
Marketing campaigns should use bothmagazines & online
Main source for stated purpose: cycling market
74
58
54
44
34
21
31
31
36
36
25
5
11
15
20
30
4530
General reading /entertainment
Product reviews
Reading up about asubject in detail
Guidance/advice
Sourcing contacts
Latest news
Magazine
Both
Website
Source: ‘Engagement Counts’, Future Publishing Ltd, UK
Among ‘Influentials’magazines create more buzz
% saying medium contributed to personal recommendations
61%
55% 53%
45% 44%
26%
Magazines TV Newspapers Internet Radio Email
Source: Roper Center for Public Opinion Research, USA
6. Magazine advertising creates sales:
a) 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
Return on investmentMedium term (12 months)
£1
£2.77
Source: ‘Sales Uncovered, TNS for PPA, UK
Magazine advertising creates sales:
b) 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
7. Magazines are a vital ingredient
in b2b marketing campaigns
Importance of industry-specific media:magazines, websites, face-to-face
'Which business-related media are most effective at informing or validating your firm's business purchase decisions?'
27%
27%
32%
32%
37%
37%
40%
40%
44%
45%
45%
48%
Custom media
General business magazines
b2b blogs
Onine forums, social networks
Specialised biz websites
Web-based events
Industry-specific magazines
Industry-specific conferences
Industry-specific websites
Industry-specific trade shows
Vendors' websites
Source: Forrester Research/ABM
Usage of traditional b2b media
'Which TRADITIONAL b2b media do you use to do your job?'
21%
27%
34%
39%
51%
54%
55%
62%
65%
69%
Outdoor
Radio
TV
Custom media
Direct mail
Newspapers
General business magazines
Industry-specific trade shows
Industry-specific conferences
Industry-specific magazines
Source: Forrester Research/ABM
Usage of digital b2b media
'Which DIGITAL b2b media do you use to do your job?'
19%
20%
31%
33%
34%
35%
40%
40%
45%
52%
55%
57%
66%
76%
Syndicated content via RSS
Podcasts
B2b blogs
Product listings/ads in online directories
Mobile/wireless devices
Online forums, social networks
Specialised biz websites
Onine videos or rich internet applications
General biz magazine websites
Web-based events
Industry-specific magazine websites
Web portals
Vendors' websites
Email/electronic newsletters
Source: Forrester Research/ABM
Combining b2b media
Each kind of industry-specific b2b medium has its own strengths
Effectiveness maximised by using combination of magazines, online & face-to-face
“The three legs of b2b publishing”
Sell advertising on multiple platforms
91% of decision makers agreed:
“It is easier for me to recognise or remember a company’s brand or products/services when I see messages about it in multiple media such as magazines, online, or at events”
Source: Forrester Research/ABM
Summary
Readers develop a personal relationship with mag.Magazines are well read: engagementReaders are receptive to adsMagazine advertising influences the purchase
decision-making processMagazine advertising makes other media work
harder – TV, online, etcMagazines create sales: used on own, or in
combination with other mediaMagazines are a vital part of multi-channel
communication strategies (consumer & b2b)
Summary: research provesthe case for magazine advertising
Two reports
www.ppa.ie
Further sources
www.fipp.com www.consterdine.com
Advertising in a recession
Objective
To assess the research evidence about the importance of continuing to advertise in a recession
Most marketers’ actual behaviour: cut adspend
Best policy: maintain adspend
Long list of studies examined
• Institute of Practitioners in Advertising (IPA), 2008• Millward Brown, 2008• Data2Decisions, 2008• Malik PIMS, 2008• Peter Field with IPA Databank, 2008• Ehrenberg-Bass Institute, Australia, 2008• Penton/Coopoers/BSI, 2003 • ABM Guidelines, 2002 • McKinsey & Company, 2002• Pennsylvania State University, 2002• Yankelovich/Harris, 2001• Prof. Patrick Barwise, 1999• Tony Hillier, 1999• McGraw-Hill Research, 1985• American Business Press, 1975• Buchen Advertising, 1961• Harvard Business Review, 1923
Budget-cutting options compared:Typical brand (modelled)
1/0 2/0 3/0 4/0 1/1 2/1 3/1 4/1 1/2 2/2 3/2 4/2 1/3 2/3 3/3 4/3 1/4 2/4 3/4 4/4 1/5 2/5 3/5 4/5 1/6
Sales
Quarter
Budget maintained every year
Zero advertising in Year 1, back to usual weight Year 2+
Half budget in Year 1, back to usual weight Year 2+
DOWNTURN STARTS
Source: Data2Decisions
Budget-cutting options compared:Typical brand (modelled)
Eliminating budget in Year 1: sales take 5 years to catch up
Halving budget in Year 1: sales take 3 years to catch up
Profit foregone because sales are lower is likely to far exceed short-term profit gain by saving adspend in Year 1
Meanwhile market share likely to be lost long-term
Conclusions: 1
Immediate profits protected by cutting adspend, but benefit is very short-term
Neglecting brand support in downturn will weaken brand & make it less profitable post-recession
Price promotions damage profits and brand values
Brand values impaired in downturn are hard to restore in upturn
Conclusions: 2
Share of voice matters
Keep share of voice equal to or above share of market
It’s likely to improve market share in medium and long term
A brand maintaining adspend while rivals cut theirs automatically increases share of voice
Price of buying media space or time falls in recession – exceptionally good value available
Conclusions: 3
Recession provides opportunities for marketers:
- to attack competitors
- to gain market share
- to gain market leadership
Can improve company’s stock market valuation
Consumer markets
B2b markets
Conclusions: 4
Results not broken out by medium
“Magazine advertising has all the characteristics that we would believe makes advertising especially valuable during a recession”Keith Roberts, Malik PIMS
www.ppa.ie
These slides available for use