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

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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

Email

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

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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

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These slides available for use