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AN EFFECTIVE MEDIUM MAGAZINES ARE A HIGHLY EFFECTIVE MEDIUM The ultimate benchmark of success for any advertising campaign, is whether it can change the way consumers think about a product or brand or whether it can ultimately drive sufficient increase in sales to provide a positive return on i nv estment. We draw on work by Mindshare, the PPA and the Meredith Corporation to illustrate magazines ability across both these dimensions of effectiveness. AD AVOIDANCE IS NOT AN ISSUE FOR MAGAZINES NOTED SCORES 54% Advertising NET ACTION SCORES 54% Editorial 63% Advertising 66% Editorial Advertising is seen as part of the content offering, not an interruption of it. As a result, readers are as likely to take notice of an advert as a piece of editorial. They are also nearly as likely to take an action as a result of exposure Sources: PPA Magnify 2011 MAGAZINES BRING PEOPLE CLOSER TO BRANDS Bonding Advantage Performance Relevance Presence Sources: PPA Magonomics: Millward Brown BrandZ 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 Relevance reflects whether a brand is seen as suiting a consumer’s needs Presence tracks how well known a brand is The BrandZ Brand Pyramid shows the steps involved in getting consumers to bond with a particular brand Brands with the highest bonding scores tend to attract the highest level of spend in their respective categories MAGAZINES BRING PEOPLE CLOSER TO BRANDS BONDING SCORES +25% Campaign value: <£2m Sources: PPA Magonomics: Millward Brown BrandZ & Nielsen +72% Campaign value: £2m - £10m 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. MAGAZINES SHOWS THE HIGHEST ROI FOR FMCG Mindshare performed econometric modelling on 77 FMCG campaigns the understand the contribution different channels made in driving ROI. Mindshare found that Magazines delivered the highest ROI of all media. But why do magazines perform so well? The answer is found in looking at diminishing return curves 167 150 137 103 97 60 Magazines TV Online Newspapers Radio OOH ROI MEDIAN INDEX PER CHANNEL Sources: PPA Magonomics 2012, Econometric Modelling Performed by Mindshare and Ohal MAGAZINES ARE NOT USED TO THEIR FULL POTENTIAL 100% 90% SALES POTENTIAL 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) Source: PPA Magonomics 2012, Diminishing Return Analysis by Mindshare & Ohal 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 MAGAZINES OFFER AN AVERAGE ROI OF $7.45 $18.59 ROI BY PRODUCT CATEGORY Meredith Corporation use Nielsen Homescan data to track product purchases following exposure to campaigns in magazines. Their data shows that magazines on average achieve a $7.45 ROI across all categories $10.10 $7.80 $5.81 $6.07 Healthcare Beauty $4.59 HH goods Food Pet care HH Retail Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 – 2014. Test and control groups are created and shopping behaviour is tracked by Nielsen Homescan. Return on Investment is calculated by calculating volume increase achieved across the projected audience and dividing incremental sales value by investment in magazines. Original ROI stated in US Dollars – Expressed in Sterling using original ratio of