Make the Connectionwith Magazines

It’s all about

Engaging the consumer

The Advertising Research

Foundation has defined the meaning of Engagement

“Engagement is turning on a prospect to a brand idea enhanced by

the surrounding context”

Source: Advertising Research Foundation – Definition of Engagement, March 21, 2006

More than ever, Advertisers want

Communication platforms that

Engage the consumer

Leverage Consumer Needs & Passions

It’s no longer just about

Hitting the Numbers and Delivering the

Eyeballs

It’s about

delivering quality of audience

Relevance Relationship

Engagement Receptivity

“In a world with so much consumer choice and with all the challenges they face, marketers need to make sure their advertising works.... The issue is how advertisers can

connect with people.

It is now about Engagement.— Wenda Harris Millard, Chief Revenue Officer, Yahoo!

Today’s Reality:

We are witnessing an

unprecedented explosion in

consumer choice

YOU

arebombarded

by up to 3,000 ads

Every day

YOUTelevision

NewspapersRadio

Transit DVDs

Posters

Internet

Telephony

Cinema

DirectMail

YellowPages

POP

MagazinesMurals

ElevatorAds

Floor Ads

Mall

ProductPlacement Garbage

Cans

Flyers

Doctor’sOffices

Sampling

PackagingInserts

Bathroom AdsBooks

Street Art/Graffiti

Benches

SignageiPod

YOUTelevision

NewspapersRadio

Transit DVDs

Posters

Internet

Telephony

Cinema

DirectMail

YellowPages

POP

MagazinesMurals

ElevatorAds

Floor Ads

Mall

ProductPlacement Garbage

Cans

Flyers

Doctor’sOffices

Sampling

PackagingInserts

Bathroom AdsBooks

Street Art/Graffiti

Benches

SignageiPod

MostMedia

Ambush

HaveNo

Control!

Too much information vying for consumer ATTENTION

Telecommunications

bandwidth is NOTa problem, but

human bandwidth

IS

Consumers seek to

take control over media

consumption

Consumers Want to be in Control“I’d be interested in a product, device

or service that would skip/block…”

Source: Forrester Research

90%81%

73%

OnlineAds

TVAds

RadioAds

Digital Video Recorders Consumers are willing to pay for Control

ExampleDVRs - consumers pay to take

control• 90% of consumers, in homes with DVR’s, are

zapping commercials • All commercials 37% • Most commercials 25 90% zap some/most/all

ads• Some commercials 28• A few commercials 5• Almost none/never 5

• Appointment-viewing programs (with highest CPMs) are most susceptible

• 18% (U.S.) household DVR penetration today• Penetration of DVR’s is projected to grow to 25%

of households by 2007; 50% by 2009

Source: Myers Group, June 2004; TiVo

Why does control

matter?The consumer is paying attention

S/he is more receptive to your ad message

There is a connection

The result:

“A shift towards Permission Marketing”

- James R. Stengel, Global Marketing Officer, P&G

The consumer is in Control. The medium & ads are invited.

Source: James R. Stengel, Global Marketing Officer, Procter & Gamble

Magazines Deliver when the Consumer is Ready

When and where your

customers are ready to

Engage

Engagement It takes many forms,

contributing to business success

Attention

Emotional Connection(Passion and Relevance)

Reading Process

Receptivity to Ads

Attention

Advertisements don’t just compete against each other for

share-of-voice…

…Advertisements compete

against everything

that hopes togain our attention

Attention is

an

increasingly scarce

commodity

Its value is increasing

EmotionalConnection

Magazines are all about the

Reader

Magazine Editors spend their lives

studying & understanding

Reader Needs

Magazines feed

consumer

needs and

passions

Magazines

You

Newspapers

Video

Radio

Cinema

Outdoor

TV

“The targeted nature of magazines typically results in a close

relationship between the magazine and the reader and inspires a high degree of active reader involvement.”

Source: The Henley Centre

Magazines Connect to Passions at a Personal Level

There’s a magazine for every passion and a passion for every

Magazine

Passions lead to attention & personal engagement

Art / Antiques FashionAutomobiles FoodBoating GardeningFamily / Children Health/WellnessBridal General

Interest Business / Finance Women’s/Men’s

Outdoors / Recreation MusicHome NewsEntertainment TravelYouth / Seniors Sports, and more

Engagement: It’s an Emotional Connection

Source: Northwestern University Media Management Center

“It is n e v e r b o rin g to re a d a n is s u e ”“T h e m a g a z in e s tim u la te s m y th in k in g a b o u t th in g s ”“It’s a n e s c a p e ”“W h e n I re a d th is m a g a z in e , I lo s e m y s e lf in th e p le a s u re o f re a d in g it”“It is a n a v e n u e to le a rn in g a b o u t n e w p ro d u c ts ”“I tru s t it to te ll th e tru th ”“A d v e rtis in g in th is m a g a z in e s a y s s o m e th in g a b o u t th e b ra n d b e in g a d v e rtis e d ”“I lik e th e a d s a s m u c h a s a rtic le s ”

Top Reader Usage Experiences

Magazines deliver a one-two punch:

1. Info required to get through the day-to-day2. Inspiration to be who you want to be

Enlightenment

Analysis

Day-to-Day

Source: The Henley Centre, Magazines Into 2000

32%

21%

15%

32%

Why Magazines Engage

Reader Need Hierarchy

Self-Enhancement

Consumers Identify Most With Magazines

61%61%

44%

56%

MagazinesMagazines NewspapersTheInternet

40%

TV

“Which medium would you most want to be identified with?”

Source: BBDO New York, Brand Fitness Study

40%

Radio

BBDOBrand Fitness Study

AdReceptivity

Editorial environment

is key but…

…what’s going on in the reader’s head at time of impact is the most important environment of all

…what’s going on in the reader’s head at time of impact is the most important environment of all

Are they Receptive to

advertising messages?

I don’t know who you are.

I don’t know your company.

I don’t know your company’s product.

I don’t know what your company stands for.

I don’t know your company’s record.

I don’t know your company’s reputation.

Now – what was it you wanted to sell me?

The Editorial Environment

provides a frame of reference that delivers

greater reader receptivity

to brand advertising

Average Average Monthly Prime-Time

Product Category Magazine TV Show

New Domestic Car Intender 115 110PC Intender 118 114On-line Service Intender 125 112Fitness Equipment Intender 133 125Gone to a Movie (past 2 months) 110 110Bought Music CD/Tapes 122 113Use a Brokerage Firm 120 89Have a Home Mortgage 167 119Have a Credit Card 167 130Have a Mutual Fund 151 107Drink Wine 158 123Use Greeting Cards 133 126

Source: Advertising Receptivity Pilot Study, Next Generation Research LLC, March 2002)

Magazines Audiences Are Receptive to Magazine

Advertising

Average Average Monthly Prime-Time

Product Category Magazine TV Show

Use OTC Cold Remedy 143 133Use Headache Remedy 153 126Use Cold Cereal 127 125Buy Frozen Pizza 152 125Buy Margarine 133 116Buy Laundry Detergent 130 121Eat at Fast Food Restaurants 138 127Shop at Apparel/Clothing Stores 133 114Shop at Electronics Stores 132 123Bought Women’s Designer Clothes128 124Use Long Distance Phone 146 129Use Cellular Phone 146 127

Source: Advertising Receptivity Pilot Study, Next Generation Research LLC, March 2002)

Magazines Audiences Are Receptive to Magazine

Advertising

Consumers are

Receptive to

Magazine Advertising

Magazine Ads are Seen as Essential

Among adult readers of all magazine types, 65% agree with the

statement:

“The ads are an essential part of this magazine”

Source: Media Values, Research Services Ltd.

Magazine Ads Are Seen as Essential

Starcom Research

Readers were asked to pull 10 pages that best exhibited the essence

of the magazine they were reading

3 of 10 were Advertisements

Source: Starcom, In-home Consumer Interviews, 2004

Consumers Are Accepting of Magazine Ads

71%

Magazines

11%

Internet

Percentage of personswho find advertising

quite acceptable

Source: Media Choices 2000, Erdos & Morgan

44%

NetworkTV

Consumers are Accepting of Magazine Ads

“Places you would be in support of eliminating marketing and advertising”

Source: Yanlelovitch Omniplus, 2004

40% 38%34%

CableTV

Websites NetworkTV

23%

16%

Radio Magazines

10%

News-papers

Source: Media Effectiveness Study, Thompson Lightstone

Saving a Magazine ad page proves a high level of connectivity,

engagement & advertising receptivity

73% of readers regularly/sometimes save

a Magazine page for future reference

The ReadingProcess

Advertisements have a challenging mandate

To lock brand-linked associations into long-term memory such that consumers can draw upon them during a purchase occasion

The highly focused process of reading

How the brain works…

The reading process is all about

undivided reader attention

RightHand

LeftHand

Magazine

Magazine Reading Drives Attention &

Understanding

Source: Electroencephalographic Aspects of Low Involvement: Implications for the McLuhan Hypothesis, General Electric Co., 1970

The Brain’s ResponseTo Reading Print

The Brain’s ResponseTo Watching TV

Active, Fast Brain Waves

Passive, Slow Brain Waves

The brain works at a fully engaged, higher level to process the printed word

‘When you read it, you get it’

5 time’sthe amplitudeof TV watching

Magazines Are Least Likely to be Multi-tasked

When you read the NEWSPAPER,do you simultaneously… regularlyWatch TV 24%Listen to the Radio 14%Go On-line 7%

When you listen to the RADIO, do you simultaneously… regularlyGo On-line 17%Read the newspaper 10%Read the mail 9%Watch TV 7%Read magazines 6%

When you watch TELEVISION, doyou simultaneously… regularlyGo On-line 27%Read the mail 11%Read the newspaper 9%Read magazines 6%Listen to the radio 3%

When you read MAGAZINES, doyou simultaneously… regularlyWatch TV 16%Listen to the Radio 11%Go On-line 5%

Source: Simultaneous Media Usage, Big Research, 2003

Magazines Grab Your Attention

0

5

10

15

20

25

30

35

40

45

50

TV Radio Newspapers Magazines

Percent of consumers engaging in no other activity while using medium

Source: Mindshare MORE Panel, A18+

The fully engaged reading process allows readers to

quickly absorb detailed

messages at their own pace (unlike ambush media)

increasing understanding of brand

benefits

Magazines Communicate Quickly… The 5-Second Solution

Source: ClickResponse “MAGnify” Study, March 2005 (Rogers Media)

Consumer Benefit

Branding

Product

Branding

In just 5-seconds, readers capture the consumer benefit, brand name and logo(Research tracks reader’s mouse clicks to reveal what they have noticed—1st, 2nd and 3rd– in 5-seconds)

In just 5-seconds, readers capture the consumer benefit, brand name and logo(Research tracks reader’s mouse clicks to reveal what they have noticed—1st, 2nd and 3rd– in 5-seconds)

Source: ClickResponse “MAGnify” Study, March 2005 (Rogers Media)

ConsumerBenefit

Branding

Product

Branding

Magazines Communicate Quickly… The 5-Second Solution

Magazines Outperform Other Media In Recall of Last Advertiser Seen/Heard

% correctly naming last advertiser seen/heard

19

Primetim

e TV

Source: Magazine Dimensions

Radio

Magazin

es

Newsp

apers

23

34

14

%

The reading process requires physical contact and

action to consume the medium

RightHand

LeftHand

Magazine

Use as an info/idea source leads to Word-of-Mouth recommendation

Magazines Influence Word-of-Mouth

RecommendationMore than half of consumers agree that magazines are a

leading contributor to word-of-mouth product recommendation

Source: Roper Reports: What Prompts Consumer Word of Mouth, 2005

Read in magazine

Saw in a store

Saw on TV

Read in a newspaper

Coupon/discount

Heard on the radio

Saw/read on the web

Free sample

E-mail

54

53

53

47

44

35

31

18

(%)

37

Source: Roper Public Affairs, 2005

Which media provides you with ideas that influence how to get information about products and services on the internet?

Magazines

Network TV

57%

54%

53%

51%

Magazines are Very Effective in Driving People to the Web

Cable TV

Radio

Relevance That’s Action-OrientedActions readers took or plan to take as a

resultof exposure to specific magazine ads

• Have a more favorable opinion about the advertiser 16• Recommended the product or service to a friend, colleague or family member 15• Gather more information about advertised product or service 12• Visit the advertiser’s website 12• Consider purchasing the advertised product or service 9• Visit a store, dealer or other location 8• Purchase the advertised product or service 7• Save the ad for future reference 5

Took any action (net) 50%

Based: Actions taken based on respondents recalling specific adsSource: Affinity Research VISTA Print Tracking Service

%

Why Magazines?

• Magazines Feed Reader’s Passions

• A Reader Relationship Built on Trust

• The Allure & Appeal of Magazines Drives Reader Attention & Involvement

• The Reading Process is All About Undivided Reader Attention

• Use as an Information Source Suggests Reader Attention & Relevance

• Advertisers are Proving to Themselves the Power of Magazines in Driving Sales

Engaging…

Comparison of Magazine & TV

Reach/GRPs Against the Most Common

TV Demos

The Addition of Magazines to a TV Plan

Increases Market

Performance

Multiplier Effect Benefits

1. Targeting Effect:- Reach light TV viewers- Tighter targeting (beyond demos interests &

passions)

2. Communication Effect:- Added information (tell more of the brand story to add

depth)- Improved learning and recall (richer recall of ad content

– “when you read it you get it”)- Improved positioning and brand association (the print

and TV ads are processed together in the consumer’s mind)

- Improved credibility (info-centered print ads add credibility to more emotionally based TV spots)

- Improved action (intensified processing of the call to action)

Dynamic Logic Cross Media Study

• Seventeen separate studies including:- Automotive- Health & Beauty- Consumables- Household Products

• Measures the incremental effect of adding internet and magazines vs. TV-only

Source: Dynamic Logic Cross-Media Research Studies, 2006

3.71.7 2.0 2.6 3.1

3.53.1 3.0 1.3 1.4

2.8

3.3

3.5

Incremental Effect of Medium(Average % Increase vs. Unexposed Control)

The Addition of Magazines DrivesAwareness, Brand Favourability &

Purchase Intent

20

10

0

30

Magazines

Internet

Television

5.1

6.1

5.5

6.0

4.4

5.6

11.0

6.0

11.1

9.6

5.9

9.3

4.4

4.2

7.3 7.29.0

2004 2004 2004 2004 20042006 2006 2006 2006 2006

Aided BrandAwareness

AdvertisingAwareness

MessageAssociation

BrandFavourability

PurchaseIntent/Consideration

Source: Dynamic Logic CrossMedia Research Studies, 2004 and 2006

%

Consumers Are More Likely to Remember Seeing

Magazine Ads18%

Magazines

10%

Internet*

Percentage of personsable to recall an ad and its advertiser

after first exposure

Source: IAB Online Advertising Effectiveness Study, Millward Brown

12%

NetworkTV

* Web banners

Results/ROIResults/ROI

Multiplier EffectMultiplier Effect

Magazines deliver…

Reach/EfficiencyReach/Efficiency

Put Magazines to Work For You!Put Magazines to Work For You!

Engagement/ReceptivityEngagement/Receptivity

Reader PassionsReader Passions

www.magazinescanada.caadinfo@magazinescanada.ca

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