Italy nielsen effectiveness_print_power_lorien_advertising_expenditure.pdf

«The role of paper in multi-channel communication»

Print Power Italy Research 2012

(Lorien Consulting)

6 June 2012

1

Print Power is the first European organization dedicated to promoting print media through advertising and marketing activities. The organization comprises a wide range of companies representing the entire print media value chain: production, distribution, press, publishing content and delivery. It benefits from all the know-how and experience of the many companies and associations of the sector that make up the paper and print media industry.

The exclusive values of printed communication

The printed word triggers the mind and engages the imagination. When paper and print can make a deep impression on readers, brands benefit. Both printed advertising and direct mailing ideally complement online media and TV, and are very cost effective in this role, in terms of diffusion through the public. Unlike other communication channels printed communication catches the full attention and concentration of the public.

I am a really loud call to action

I am the power of print

2

Print Power Italy commissioned Lorien Consulting to carry out research on our market, on stakeholders and influencers, investors, companies and media centers with the goal of mapping the perception and effectiveness of different media, identifying criteria and reasons for communication and marketing planning choices which underline the values linked to printed media.

The research also investigated some case histories to understand values, effectiveness, the relevance of printed media correctly planned in a media mix, which is more and more becoming a multi-channel panorama.

Lorien Consulting also studied the relationship between readers and channels, investigating emotional involvement, trust and confidence and values attributed to paper.

Therefore a chapter of the research is dedicated to a qualitative survey of consumers, citizens, to deepen the kind of “experience” they have in relation to media.

Paper has exclusive values:

our research investigated them

3

An integrated survey

The 3 targets involved in the researchDecision Maker Influencer General Public

Sampling from investor companies in communication and advertising

Representatives from agencies and media centres

Contacts with more than 1.800managers responsible for decisionsin communication and advertising

Total interviews valid for analysis: 400

Samples representing media centresand agencies, with coverage of the

most important investor sectors

Total interviews valid for analysis:

50

Sample representing Italian adultsexposed to a paper communicationtool during the last week

Total interviews valid for analysis: 1.000

Technical information

4

- Marketing and communication managers 84,5% - CEO, General Director, President 15,5%

Food and beverage 19.3%Pharmaceutical and sanitary 13.5%Automotive 13.3%Telecom 9.0%House 7.1%Clothing accessories fashion 6.5%Media and publishing 4.9%Commerce and distribution 4.3%Insurance, banks and finance 4.1%Energy water environment 3.3%Sport and entertainment 2.1%Transport, infrastructure and logistic 2.1%

Other 10.5%

INVESTED BUDGET 2011SECTOR

27.4%

35.5%

24.6%

4.8%

7.7%

€50K –€500K

Less €50K

€3.000K –€5.000K

€500K –€3.000K

More€5.000K

Companies Technical information

Who answered

5

Thanks to the analysis of Nielsen figures by Lorien Consulting we estimated the advertising and communication* investments market at about

€ 9,3 BILLION

The value of the communication market

*Investments in Public Relations, Events, Classified Ads and Internet Search advertising are excluded

“Taking into account the total budget in communication and advertising invested in the last year in your company, how did you divide the budget between communication tools? 6

Analysis by Lorien Consulting of Nielsen figures

45.8%

9.1%

8.8%

6.9%

4.6%

4.5%

2.6%

0.5%

5.8%

11.4%

TV

Periodical

Newspapers

Tv satellite/ digital

Radio

Internet

Out of home

Cinema

Direct Mail

Other BTL


ATL

82,8%

17,2%

45.2%

8.4%

7.5%

7.5%

3.6%

8.1%

1.7%

0.2%

3.0%

7.2%

2.9%

2.7%

1.3%

0.8%

TV generalista

Periodici

Quotidiani

Tv satellitari / digitali

Radio

Internet

Out of home

Cinema

Direct Mail

Leaflet/brochure/cartoline/depliant

Materiale espositivo / packaging

Cataloghi

Comunicazione Corporate e Bilanci

Directories/elenchi e annuari

82,1%

17,9%

BTL

TV

Periodical

Newspapers

TV satellite/ digital

Radio

Internet

Out of home

Cinema

Direct mail

Leaflet/ brochure/ cards/ depliant

Expositive material/ packaging

Catalogues

Corporate communication Balance

Directories

Investments in communicationFigures from Lorien Consulting

survey for PRINT POWER ITALY*

7

Analysis by Lorien Consulting of Nielsen figures

45.8%

9.1%

8.8%

6.9%

4.6%

4.5%

2.6%

0.5%

5.8%

11.4%

TV

Periodical

Newspapers

Tv satellite / digital

Radio

Internet

Out of home

Cinema

Direct Mail

Other BTL

ATL

82,8%

17,2%

45.2%

8.4%

7.5%

7.5%

3.6%

8.1%

1.7%

0.2%

3.0%

7.2%

2.9%

2.7%

1.3%

0.8%

TV generalista

Periodici

Quotidiani

Tv satellitari / digitali

Radio

Internet

Out of home

Cinema

Direct Mail

Leaflet/brochure/cartoline/depliant

Materiale espositivo / packaging

Cataloghi

Comunicazione Corporate e Bilanci

Directories/elenchi e annuari

82,1%

17,9%

Figures from Lorien Consulting survey for PRINT POWER ITALY*

BTL

TV

Periodical

Newspapers

TV satellite/ digital

Radio

Internet

Out of home

Cinema

Direct mail

Leaflet/ brochure/ cards/ flyer

Display material/ packaging

Catalogues


Directories

Investments in communication

One of the most important results from LorienConsulting’s survey for Print Power Italy is the investigation into communication tools - usually not examined in official research – whose value is really important.

8

*Investments in Public Relations, Events, Classified ads and Internet Search advertising are excluded

Investments in paper communication tools

45.2%

8.4%

8.1%

7.5%

7.5%

7.2%

3.6%

3.0%

2.9%

2.7%

1.7%

1.3%

0.8%

0.2%

TV

Periodicals

Internet

Newspapers

Tv satellite / digital

Leaflet/brochure/cards/depliant

Radio

Direct Mail

Expositive material / packaging

Catalogues

Out of home


Directories

Cinema


On average

33,8%of the companies’ budget for advertising and

communication is used on paper

Average division of BUDGET by communication tool

Base: companies (400)

Figures from Lorien Consulting’s survey for PRINT POWER ITALY*

1/3 of investments in communication are in paper media

Use of different communication tools

87,2%of companies**

invest both in paper tools and other communication

channels

9%of companies**

invest only in paper tools

3,8%invest only in other

media


96,2% of Italian companiesmakes use of paper communication in the media mix

**sample 400 companies interviewed 10


The paper communication tools

62.6%

61.5%

46.9%

42.3%

36.4%

27.6%

21.3%

9.4%

Leaflet/brochure/cards/depliant

Periodical andspecialized press

Newspapersfree/pay

Direct Mail

Expositivematerial /packaging

Catalogues

Corporatecommunication

Balance

Directories


«Taking into consideration the total budget invested in communication and advertising in the last year in your company, which paper tools did you use?»

11

Distribution channels for paper communication tools

47.9%

18.2%

15.0%

10.6%

2.9%

5.4%

Communication in store

Agents/ sales network

Fairs/ exhibitions/ events

Addressed mail

Non - addressed mail door to door

Other channel

Base: companies that invested in paper distributable tools

“Taking into consideration the budget invested in printed media such as leaflets, brochures, catalogues and flyers, how are these media divided by distribution channel?” 12

Effectiveness of a communication activity

«What criterion did you follow to evaluate the effectiveness of a communication activity?»

79.1%

77.9%

COMMERCIALEffectiveness

COMMUNICATIONEffectiveness


13

60.2%

52.8%

36.4%

34.8%

31.8%

28.8%

23.4%

23.4%

22.2%

20.7%

17.4%

16.2%

9.7%

7.9%

Generation of brand awareness on specific target

Increase of sales

Fidelizzazione of clients

Increase of market share

Generation authority/credibility

ROI

Test the product

Acquisire new clients

Memorability of the messagge

Generation of brand awareness on the general public

Generation of traffic in stores

Transmit the companies' values

Deepen the contents

Increase of spending capacity of the client

COMMERCIALREASONSCOMMUNICATION REASONS


Effectiveness of a communication activity

14

«What criterion did you follow to evaluate the effectiveness of a communication activity?»

Paper communication tools in theCOMMUNICATION AND ADVERTISING WORLD

Companies, Agencies and Media Centres:

“For which reasons did you choose to use these paper communication tools for communication and advertising activities in your company?

General Public:

“Which statements are more suitable to describe advertising communication spread through these communication tools?”

15

COMPANIES AGENCIES/ MEDIA CENTRES GENERAL PUBLIC

On average

7,5%of the company budget is dedicated to newspapers

GOODCOVERAGE

EXPENSIVE

EFFECTIVENESS ON SPECIFIC

TARGET


TARGET

EXPENSIVE

GOOD COVERAGE

ADVERTISING IS INFORMATIVE

OPPORTUNITY TO RETAIN

ADVERTISING

INCREASEBRAND

REPUTATION

41,9%

32,3%

29%

33,1%

31,4%

24,8%

47,6%

36,7%

32,9%

AUTO

CLOTHING

PROFESSIONAL SERVICES

DISTRIBUTION

PRINCIPAL INVESTORS IN THE CHANNELThe Press: newspapers

For which reasons did you choose to use newspapers for communication and advertising activities in your company?

Which statements are more suitable to describe advertising distributed through this communication channel?

COMPANIES

GOODCOVERAGE

EXPENSIVE

AGENCIES/ MEDIA CENTRES GENERAL PUBLICGOOD

COVERAGE 41,9%

33,1%

47,6%

36,7%

32,9%

32,3%

29,0%

EFFECTIVENESS 25,0%

22,5%TO BE ADDED TO

OTHER TOOLS

MULTIPLICATION OF THE CONTACTS

FOCUSED ON SPECIFIC TARGET

EXPENSIVE

25,8%

22,6%TO BE ADDED TO

OTHER TOOLS

CAN BE SEEN MORE TIMES

CONTAINS ADVERTISINGOF HIGH LEVEL

MAKES ME HAVE A BETTER CONSIDERATION OF THE

ADVERTISED BRABD

DESIRE TO BUY/INFORM ON ADVERTISED PRODUCTS

CONTAINS ADVERTISING ADDRESSED TO THE USER OF THE

CHANNEL

IF AN AD IS INTERESTING CAN BE RETAINED

21,3%

22,5%

24,8%

28,4%

31,4%

FOCUSED SPECIFIC TARGET

20,5%22,6%

CONVEY BRAND VALUES

INFORMATIVE

The Press: newspapers

17

COMPANIES AGENCIES / MEDIA CENTRES GENERAL PUBLIC

On average

8,4%of the company budget in

communication is dedicated to periodical press

EFFECTIVENESS ON SPECIFIC TARGET

EFFECTIVENESS IN CONVEYING

COMPANY VALUES

EXPENSIVE

71%

38,7%

32,3%

58,2%

31,4%

29,9%


TARGET

GUARANTEES A BROAD

ATTENTION SPAN

GOOD COVERAGE

ADVERTISING OF HIGH LEVEL

28,4%

ADVERTISING IS INFORMATIVE

POSSIBILITY OF RETAINING THE

ADVERTISING

33,1%

31,4%

CLOTHING

PERSONAL CARE

PERSONAL OBJECTS

HOUSE

PRINCIPAL SECTORS IN THE CHANNELThe Press: periodicals

For which main reasons did you choose to use periodical press for your communication and advertising activities?

Which statements are more suitable to describe advertising distributed through this communication channel?

18

COMPANIES

GOODCOVERAGE

EXPENSIVE

AGENCIES / MEDIA CENTRES

GOODCOVERAGE

71,0%58,2%

31,4%

29,9%

38,7%

32,3%

EFFECTIVE

25,1%

21,8%

CAN BE ADDED TO OTHER TOOLS

FOCUSED ONSPECIFIC TARGET

GUARANTEE OF A WIDE TIME OF ATTENTION

EXPENSIVE

29,0%

25,8%CAN BE ADDED TO

OTHER TOOLS

CAN BE SEEN MORE TIME

GUARANTEE OF A WIDE TIME OF ATTENTION


21,2% 22,6%

19,4%

CONVEY BRAND VALUES

GENERAL PUBLIC

33,1%

CONTAINS ADVERTISINGOF HIGH LEVEL

MORE CONSIDERATION OF THE BRAND ADVERTISED

DESIRE TO BUY/INFORM ADVERTISED PRODUCTS

CONTAINS A FOCUSED ADVERTISING TO THE USER

IF AN ADV IS INTERESTING CAN BE RETAINED

21,3%

22,5%

24,8%

28,4%

31,4%

INFORMATIVE

The Press: periodicals

19


On average

7,2%of the budget in communication is dedicated to leaflets, brochures,

flyers and cards

MUST BE ADDED TO OTHER TOOLS

GUARANTEE MULTIPLICATION OF THE

VIEWS

SUITABLE TO ANY SERVICE AND PRODUCT

OPPORTUNITY TO RETAIN THE ADV

THE ADVERTISING IS INFORMATIVE

DESIRE TO BUY/INFORM THE PRODUCT

EFFECTIVE ON SPECIFIC TARGET

ECONOMIC

NEEDS OTHER TOOLS OF

COMMUNICATION35,3%

47,1%

37,7%

22,6%

38,7%

25,8%

33,5%

63%

35,3%

DISTRIBUTION

PHARMACEUTICAL/SANITARY

HOUSE

TELECOMS

PRINCIPAL INVESTORS IN THE CHANNELLeaflet, brochure, flyers, cards

For which reasons did you decide to use leaflet, brochure, flyers, cards for communication and advertising activities in your company?

Which statements are more suitable to describe the advertisement communication through this kind of tool?

20

COMPANIES

EXPENSIVE

AGENCIES / MEDIA CENTRES GENERAL PUBLIC

33,5%

47,1%

37,7%

35,3%

38,7% 63,0%

35,3%

EFFECTIVE

21,6%

16,9%


SUITABLE TO ANY TOOL

LOW COST


25,8%

12,9%



CAN BE SEEN MORE TIMES

LOW COSTGOOD CONSIDERATION OF

THE BRAND ADVERTISED

DESIRE TO BUY THE PRODUCT

OPPORTUNITY TO SKIP ADV

CONTAINS FOCUSED ADV ON THE USER OF THE TOOL

TOO STATIC

IF AN ADV IS INTERESTING I CAN RETAIN IT

20,0%

23,5%

24,2%

33,3%FOCUSED ON TARGET SPECIFIC

11,4%

22,6%

19,4%

CONVEY BRAND VALUES 12,9%

INFORMATIVE

Leaflet, brochure, flyer, cards

21


On average

3%of the communication

budget is dedicated to Direct Mail


OPPORTUNITY TO RETAIN THE ADV

TARGETED ADVERTISING

OPPORTUNITY TO SKIP THE ADV


MEASURABLE


ECONOMIC

EXPENSIVE 23,6%

56,2%

29,7%

19,4%

35,5%

19,4%

33,9%

48,8%

42,1%

FINANCE/INSURANCE

TELECOMS

MEDIA/PUBLISHINGDISTRIBUTION

PRINCIPAL INVESTORS IN THE CHANNEL Direct mail

What are the main reasons for deciding to use Direct mail for your communication and advertising activities?

Which statements are suitable to describe the advertising communication distributed through this tool?

22

COMPANIES

EXPENSIVE

MEASURABLE

AGENCIES / MEDIA CENTRES

56,2%

29,7%

23,6%

35,5%

19,4%

EFFECTIVE

19,4%

17,9%

11,6%

MUST BE ADDED TO OTHER TOLLS


LOW PRICE

FOCUSED ON SPCECIFIC TARGET

EXPENSIVE

13,0%

9,7%


MEASURABLE

MUST BE ADDED TO OTHER TOOL

CAN BE VIEWED MORE TIMES

FOCUSED ON SPCEFIC TARGET

15,9%

19,4%

GENERAL PUBLIC

48,8%

42,1%

CONTAINS ADV OF HIGH LEVEL

GOOD CONSIDERATION OF THE PRODUCT ADVERTISED

DESIRE TO BUY THE SRVICE/PRDUCT ADVERTISED

CONTAINS FOCUSED ADV ON TH USER OF THE TOOL

IF AN ADV IS INTERESTING I CAN RETAIN IT

16,3%

25,9%

26,3%

28,5%

INFORMATIVE

19,4%

Direct mail

23

COMPANIES AGENCIES / MEDIA CENTRES


EFFECTIVE

EFFECTIVE TO CONVEY THE BRAND VALUES17,4%

36,2%

18,8%

19,4%

29%

19,4%

On average

2,9%of the communication budget is dedicated to

display material

EFFECTIVENESS

EXPENSIVE


FOODPHARMACEUTICALS/

SANITARY

HOME/FURNITURECLOTHING

PRINCIPAL INVESTORS IN THE CHANNELDisplay material/ POP / Packaging

What are the main reasons you used display material for communication and advertising activities in your company?

24



EXPENSIVE

EFFECTIVE ON SPECIFIC TARGET18,8%

35,2%

25,4%

12,9%

32,3%

29%

On average

2,7%of the communication budget is dedicated to

catalogues


ECONOMIC

NEED TO BE ADDED TO OTHER TOOLS

FOODTOURISM/TRAVEL

HOME/FURNITUREAUTOMOTIVE

PRINCIPAL INVESTORS IN THE CHANNELCatalogues

What are the main reasons you used catalogues for communication activities in your company?

25

AGENCIES AGENCIES/ MEDIA CENTRES



EFFECTIVE TO CONVEY BRAND VALUES14,4%

25,3%

18,9%

16,1%

29%

16,1%

On average

1,3%of the communication budget is

dedicated to Corporate Communication

EFFECTIVE COMMUNICATION OF

CORPORATE VALUES


EFFECTIVE

PHARMACEUTICAL /SANITARYFINANCE /

INSURANCE

ENERGYINSTITUTIONS

PRINCIPAL INVESTORS IN THE CHANNEL

Corporate Communication / Balance

What are the main reasons you decided to use corporate communication in your communication activities?

26


GUARANTEE THE MULTIPLICATION OF

THE VIEW


LOW PRICE5,9%

11,8%

9%

12,9%

19,4%

16,1%

On average

0,8%of the communication budget is dedicated to communication in

Directories and Yearbooks

ECONOMIC

NEED TO BE ADDED TO

OTHER TOOL

SUITABLE TO ANY SERVICE OR

PRODUCT

PHARMACEUTICALS /SANITARYTELECOMS

ENERGY

AUTOMOTIVE

PRINCIPAL INVESTORS ON THE CHANNEL

Directories and yearbooks

What are the main reasons you decided to use directories and yearbooks for your communication activities?

27

Italian Citizens(GENERAL PUBLIC)

OUTCOME & OPINION

28

77%of newspaper readers

read also an online newspaper

72%of online

newspaper readers also read

a paper newspaper

Reading on paper is still a driving force for reading on-line, in particular newspapers

49% of the

general public read both paper and online

newspapers

Base: citizens using the media 2 times per week as a minimum

29

53,9%of paper periodical

readers read also an online periodical

69,8%of online periodical readers also read a

paper periodical22,2% of the

general public read both paper and online periodicals

Base: citizens using the media 2 times per week as a minimum

Reading on paper is still a driving force for reading on-line

30

The media outcome of the Italians

97.4%

80.2%

66.6%

53.1%

46.9%

17.6%

TV in general

Radio ingeneral

Newspapersin general

Internet

Periodicals

Smartphone Source: Censis 201131

During the last week, the Italian public*:

74.6%

71.7%

67.6%

61.5%

60.4%

59.9%

read a flyerreceived in the

mail box

read anewspaper

read a periodicals

took a glance of acatalogue

saw addressedcommunication

and avd reicevedin the mail box

took a glance of abrochure /

depliant

Base: citizens (1.000)

* Survey carried out on 1.000 people, sample representing the Italian population exposed to one paper channel during the last week. Interviews carried out with CAWI.

32

Purchasing process after communication

Look for further info of the product on the web

49,2%

After watching TV After listening to an ad on the radio

52,8% 47,1%

Base: : citizens using the media 2 times per week as a minimum

After reading an ad in newspapers and

periodicals

33

Purchasing project after communication

*Base: User of the toolat least 2/3 times aweek

16.4%

8.0%

13.7%

5.3%

21.7%

3.7%

11.0%

4.9%

17.6%

5.5%

12.5%

3.0%

Look for info on the product and on

similar items

Go to a shop to ask for further info

Ask for an opinion from friends

Go to a shop to buy the advertised product

CALL TO ACTION:

15,9%

CALL TO ACTION:

19%CALL TO ACTION:

15,5%

Base: : citizens using the media 2 times per week as a minimum

After watching TV After listening to the radioAfter reading newspapers and periodicals

Paper a really loud call to action

34

Printed media account for

33,8%of total investments

in communication

96,2%of interviewed companies

invest in media communication tools

Base: aziende (400)

35

15,9% of

investments in paper tools are linked to media above the

line(Newspapers/Periodicals)

33,8%of the total investiments in communication

17,9% of investments

in paper tools are linked to mediabelow the line

(Direct mail/ Leaflet/ Brochure/ Catalogues/ Directories/ …)


36

11.8%

68.1%

20.1%

Trend last 12 months

3.3%

78.9%

17.8%

Outlook next 12 months

A downturn in the market, which shows some signals of investment stabilization


Investments in paper communication media

37

The Lorien Consulting research for Print Power Italy confirms the key benefits of paper communication and the channels using it

INVOLVING

AUTHORITATIVE

FOCUSED ON SPECIFIC TARGET

LASTING

COMPLEMENTARY TO OTHER MEDIA

CALL TOACTION

FLEXIBILE CREATIVE

Base: aziende (400)

“To maximize effectiveness, just add creativity…”

38

Trend last 12 months Outlook next 12 months


Investments in paper communication tools

39

Metodology• Institute: Lorien Consulting

• Criteria followed to form the sample: survey carried out on a sample of companies working in Italy in more than 20 different sectors

• a sample of media centres working in Italy

• a sample of citizen representatives of the Italian population over 18 years old (sex, age, geographic area)

• Information collection method: CAWI interviews (Computer Assisted Web Interviewing)

• Number of interviewed:

• 400 companies

• 50 media centres

• 1.000 citizens

• Method of analysis: SPSS – Intervallo di confidenza 95%

• Director of research: Antonio Valente

40

via Argelati 40/A20143 Milano

Italiat. +39 02 58 145 51f. +39 02 58 145 500

www.lorienconsulting.it

Print Power Italyc/o Assocarta

Bastioni di Porta Volta 720121 Milano

Tel. +39 02 29003018Fax. +39 02 [email protected]

www.printpower.eu/itwww.twosides.info/it

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Italy nielsen effectiveness_print_power_lorien_advertising_expenditure.pdf