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'

Outdoor

Direct mail

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'

Outdoor

Direct mail

Internet

Newspapers

Magazines

First preferences

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

Latest news

Magazine

Website

Source: ‘Engagement Counts’, Future Publishing Ltd, UK

Among ‘Influentials’magazines create more buzz

% saying medium contributed to personal recommendations

55% 53%

45% 44%

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

Non-exposed Exposed

11.6% additional increase

Source: ‘Sales Uncovered, TNS for PPA, UK

Return on investmentMedium term (12 months)

£2.77

Magazine advertising creates sales:

b) Magazines used with TV

Magazine achievement similar to TV’s…

Percentage increase in sales (£)Magazine & TV weights

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

Magazines

Budget implications

Expenditure

Magazines

Budget implications

Expenditure

Magazines

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?'

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?'

Outdoor

Custom media

Direct mail

Newspapers

General business magazines

Industry-specific trade shows

Industry-specific conferences

Industry-specific magazines

Usage of digital b2b media

'Which DIGITAL b2b media do you use to do your job?'

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

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”

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

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

The research evidence - Irish and international A. The case for magazine advertising B. Advertising...

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