Presentation is loading. Please wait.

Presentation is loading. Please wait.

3 x 3 good reasons for using print Presenting a powerful case for advertising in consumer magazines INTENSE | PRECISE | ENDURING Berlin — November 2011.

Similar presentations


Presentation on theme: "3 x 3 good reasons for using print Presenting a powerful case for advertising in consumer magazines INTENSE | PRECISE | ENDURING Berlin — November 2011."— Presentation transcript:

1 3 x 3 good reasons for using print Presenting a powerful case for advertising in consumer magazines INTENSE | PRECISE | ENDURING Berlin — November 2011

2 2 Good reasons for advertising in print A lot of money and quick decisions are involved every day in the media business. That is why when media planners and marketing bosses, advertising buyers and sellers are selecting the right communications channels, they need good, solid and relevant reasoning to support the development of their strategy. Every medium has its intrinsic strengths, which it contributes to the communications mix – but here we focus on the strengths of print, or more precisely on advertising in consumer magazines. Our claim is: Advertising in magazines is intense, precise and enduring. As evidence we document here the most compelling reasons, which also provide an overview of the medium’s strengths. For more good reasons, information, data and facts you are welcome to visit printwirkt.de – and of course consult your contact partners at the publishers. Alexander von Reibnitz Managing Director of Print Advertising and Digital Media Association of German Magazine Publishers (VDZ)

3 3 Overview: 3 x 3 good reasons 1. Print works intensely because the readers repeatedly read through their magazine because its content and credibility is valued because its content’s journalism engages the reader Print works precisely because magazines drive readers to specific websites because magazines activate a large response from few insertions because magazines reach defined target groups accurately Print works enduringly because it achieves solid residual effects with great efficiency because the ads are appealing and worthy of trust because the ads deliver a high return on investment. 40

4 4 1. Print works intensely, because readers value good journalism and they repeatedly read through their magazine. 3 x 3 good reasons for print Advertising in magazines is intense, precise and enduring.

5 5 Print works intensely, because readers value good journalism and they repeatedly read through their magazine.

6 6 INTENSE | PRECISE | ENDURING Double advertising exposure CONTACTS PER ADVERTISEMENT Magazines have one big advantage over other types of media: You can pick them up and read them again, and again, and again. Whereas spots and banners disappear forever after just one (paid for) appearance, the ads in magazines are seen on repeated occasions. For advertisers this means paid for once, delivered twice. What other medium offers such a good deal? Source for magazine value: AIM RFID Contact Study 2009–2011; basis: 2,309 persons in purchasing households, 326,454 double-page contacts based on 27 titles analysed; numbers of contacts per double page with advertising. Source for electronic media: fundamentals of physics. Numbers of contacts per published advertisement1.1.1 Print works intensely, because readers repeatedly read through their magazine.

7 7 INTENSE | PRECISE | ENDURING Reading equivalent to watching a film DURATION OF MAGAZINE READING You make time for yourself to enjoy reading a magazine. On average, readers devote an hour and a half in total to reading and flipping through pages. That is equivalent to the average duration of watching a film on TV – if you disregard all the commercial breaks. In comparison, magazines have the advertising already integrated into the programme. Source: AIM RFID Contact Study 2009–2011; basis: 2,309 persons in purchasing households, 13,314 magazine contacts based on 27 titles analysed; cumulative values for all usage events Proportion of readers according to cumulative duration of magazine use in minutes; proportion as percentage of total use Print works intensely, because readers repeatedly read through their magazine. 91 minutes Average duration of magazine use

8 8 INTENSE | PRECISE | ENDURING Prime time is also print time MAGAZINE USE DURING THE DAY Readers read through their magazines at all times of the day. Some genres of magazine are more popular in the mornings or afternoons, but the majority are read during the prime evening time. Magazines are a highly integral part of the daily lives of their readers. Source: AIM RFID Contact Study 2009–2011; basis: 2,309 persons in purchasing households, 326,454 double-page contacts based on 27 titles analysed; proportions as percentages. Proportion of total contacts by time of day in percentages Print works intensely, because readers repeatedly read through their magazine. HourWhole week (Mon-Sun) 00 – – – – – – – – – – – – – – – – – – – – – – – – 24

9 9 INTENSE | PRECISE | ENDURING Concentrate on what is important USAGE WHILE DOING SOMETHING ELSE In modern society, the media is a constant presence in daily life – there is scarcely a moment of the day when we are not affected by media or the advertising it carries in some way. The question is whether we pay attention to the medium: Do we focus on it, or is it simply in the background? There is practically no medium people engage with as intensely as they do with magazines. Only 13 per cent do not fully focus on it, so that means 87 per cent of readers concentrate exclusively on a magazine. By comparison, only 49 per cent concentrate on the television. Source: Bauer Media, Zukunftswerkstatt Medien: Medien Funktionen (2006); basis: German-speaking population 14 to 69 years of age (n = 1,005), user interviews. Figures as percentages1.1.4 Print works intensely, because readers repeatedly read through their magazine.

10 10 INTENSE | PRECISE | ENDURING Every day is magazine reading day CONTACT DISTRIBUTION IN THE WEEK Throughout the working week as well as at the weekend, from Monday to Sunday, magazines generate contacts with their readers. This applies equally to the medium as a whole as it does to the majority of individual titles.. It is only at weekends, a time of relaxation and openness, that all titles experience a slightly higher usage. These facts provide optimum conditions for intense advertising effectiveness. Source: AIM RFID Contact Study ; basis: 2,309 persons in purchasing households, 326,454 double-page contacts based on 27 titles analysed; proportions in percentages Proportion of total contacts by day of the week in percentages1.1.5 Print works intensely, because readers repeatedly read through their magazine.

11 11 INTENSE | PRECISE | ENDURING Readers vote with their wallets MAGAZINE TYPES More than three quarters of all the German consumer magazines that are printed are bought by readers from their own pockets. They spend some 278 million euros a month for them.* Obviously whatever people are prepared to pay for, they also make good use of. Source: IVW, Annual averages 2012; excluding customers' free magazines, supplements, tourist and event magazines. Retail and subscription sales of 407 titles in IVW 2012 x respective copy price. Annual averages Print works intensely, because its content and credibility is valued.

12 12 INTENSE | PRECISE | ENDURING Choosing your own means acceptance “I SHOP FOR MY OWN MAGAZINES” Magazines are by far and large a personal matter. Three quarters of all Germans over 14 state they buy magazines for themselves in person. They assess their personal preference for and interest in magazines so highly that they are not only willing to pay for them, but also go shopping for them in person. Advertising could hardly be seen with more acceptance by its target group. Source: TdW 2011 III; basis: German-speaking population of 14 years and above (70.5 million, n = 20,129) Agreement in percentages1.2.2 Print works intensely, because its content and credibility is valued.

13 13 INTENSE | PRECISE | ENDURING Lack of bias lends credibility REVENUE STREAMS OF THE PUBLISHERS Roughly a half of the income of magazines comes directly from its readers, rather than completely from advertisers. That is a significant contrast to most electronic media, such as independent TV channels and the internet. It preserves the independent image of the free press and gives it more credibility with readers. And this applies equally to editorial and advertising content. Source: VDZ Autumn Survey 2008 Distribution between advertising and sales revenues Print works intensely, because its content and credibility is valued.

14 14 INTENSE | PRECISE | ENDURING Content written by professionals PERMANENTLY EMPLOYED JOURNALISTS One major difference between printed media and other forms: Print invests heavily in the quality of its content. Roughly two-thirds of all German journalists are on the payrolls of printed media, while the remainder are employed by television, radio and the internet. Content quality is one of the most important factors behind the success of magazines and the respect their readers have for them. Source: DJV Deutscher Journalisten-Verband, 2010 Annual averages Print works intensely, because its content’s journalism engages the readers.

15 15 INTENSE | PRECISE | ENDURING Talk of the town MOST QUOTED MEDIA IN GERMANY Magazines exert a significant impact on public discourse in Germany. From the 15 most quoted media of the republic, 12 are printed media, four of which are magazines. Of course, other media are occasionally much talked about and clips with unusual slip ups and strokes of luck are happily and frequently cited. However, true agenda setting generally arises from the investigative work of magazines – and this draws intense advertising contacts. Source: pmg Pressemonitor, quote ranking 2010 (whole year), Cross-media quotes. Quoted by other media in Print works intensely, because its content’s journalism engages the readers.

16 16 INTENSE | PRECISE | ENDURING Delight in the new MAGAZINE MARKET Nido, Landlust, Donna. These are only three examples of numerous new titles introduced in recent years. In 2011 alone, 89 new titles were added to the market – an indicator of the wealth of creativity and innovative capacity in the magazine industry. And for the high degree of acceptance that good magazine concepts are rewarded with. Source: WIP Cologne, presseforschung.de; version: September 2011 New titles and closures 1990– Print works intensely, because its content’s journalism engages the readers.

17 17 INTENSE | PRECISE | ENDURING Magazines trusted online USAGE OF ONLINE CONTENT The extent of the trust that exists between magazines and their readers can be seen every day in the internet usage of Germans. Among the most popular content-oriented websites about a third originated as internet sites – while a quarter stem from magazine titles. This means magazines are also stable and popular as online media brands – and promises ideal conditions for intense advertising contacts. Source: AGOF Internet Facts ; definition of content-oriented: website with own editorial content, excluding portals, eCommerce and corporate websites, forums, social media platforms and any that mainly consist of user-generated content; classification of the media according to origination of established media brands to the relevant medium Basis: content-oriented websites; figures in millions of unique users1.3.4 Print works intensely, because its content’s journalism engages the readers.

18 18 INTENSE | PRECISE | ENDURING Good mobile content USAGE OF MAGAZINES ON THE IPAD The latest generations of devices not only attract young users. The average age of iPad users is 42 and with above-average income – a part of which they are happy to invest to obtain magazine content on their iPad. More than two-thirds of iPad users read magazines on their device and are willing to pay for good journalism, regardless of the output medium. Source: VDZ Study: Magazine usage on the iPad; September 2011; basis: persons who own an iPad (n = 3,353) Proportions as percentages1.3.5 Print works intensely, because its content’s journalism engages the readers. Use magazines on the iPad 67.5% Do not use magazines on the iPad 32.5%

19 19 2. Print works precisely, because it quickly activates a large audience and generates clicks from accurately defined target groups. 3 x 3 good reasons for print Advertising in magazines is intense, precise and enduring.

20 20 Print works precisely, because it quickly activates a large audience and generates clicks from accurately defined target groups.

21 21 INTENSE | PRECISE | ENDURING Print generates clicks DRIVE TO WEB The internet plays a central role in lots of consumer purchasing decisions and it has major significance in marketing for many advertisers. In the digital age, all types of media have to justify how many potential customers they activate online. On average 34.6% of observers of an ad with interest in the product will visit the website of the manufacturer or product. This means that advertising in consumer magazines has very strong drive to web. Source: AIM Ad Tracking July 2010–September 2011; basis: 14–69 year old internet users (n = 131,962 ), 1,920 advertising motifs Proportion of persons of each target group that visited the manufacturer or product website, activated by ad contact; figures in percentages Print works precisely, because magazines drive readers to specific websites.

22 22 INTENSE | PRECISE | ENDURING Print googles ONLINE SEARCHES ORIGINATED BY MEDIA USAGE Clearly a lot of visits to company and campaign websites originate from search engines, rather than direct entry of the web address. The question is which medium prompts the majority of searches? And here magazines occupy the top ranking in a media comparison. Naturally, because magazines inspire, they are important motivators, delivering ideas and guiding their readers to online targets. Magazines are hugely successful as click generators. Source: Big Research, simultaneous media usage study (SIMM13); December 2008 Agreement as percentages2.1.2 Print works precisely, because magazines drive readers to specific websites.

23 23 INTENSE | PRECISE | ENDURING Print motivates ACTIVATION BY AD MOTIF Advertisements activate their observers in a variety of ways, ranging from a desire for more information to purchasing the product. The sum of all conceivable activations of an observer to an ad motif together shows that 42 percent are motivated to do something. And for every fifth advertisement more than a half of the observers have become more acquainted with the ad or the product – or actually purchased it. This means the print advertising contributes significantly to the success of a campaign. Source: AIM Ad Tracking July 2010–September 2011; basis: 14–69 year-old internet users, who consciously perceived the corresponding ad, 1,920 advertising motifs Proportion of observers of an ad, who were motivated to take action, as a percentage Print works precisely, because magazines drive readers to specific websites. 42.1

24 24 INTENSE | PRECISE | ENDURING Print awakens interest “MAKES ME AWARE OF INTERESTING THINGS” Nowhere near the entire media life of a person is spent composing targeted search engine inquiries. Most of the time we have no idea what to look for until we are made aware of its existence by something. And that “something” is more often than not a magazine. 62 per cent of German media users state that magazines provide them with interesting suggestions. Only 40 per cent say this about television, while with newspapers and the internet, it is only 30 per cent. Source: Medienprofile und Medienbegabungen, Institut für Demoskopie, Allensbach (2008); basis: persons 14–69 years, heavy users of the respective medium; statement: “Frequently makes me aware of interesting things that I would not otherwise know about.” Agreement in percentages2.1.4 Print works precisely, because magazines drive readers to specific websites.

25 25 INTENSE | PRECISE | ENDURING Print has a big footprint COMPARISON OF AUDIENCES It is clear that no advertising plan will cover a whole medium. However, the cumulative reach within the whole population of an advertising medium says a lot about its strategic talents: the more reach, the more universally it can be applied. And no other medium in Germany achieves more reach than consumer magazines. This means print is the absolute number one in the arsenal of the strategic media planner. Source: AGOF internet facts ; ma 2010 intermedia (TV/SpT, Daily Newspaper/LpA, Consumer Magazine/LpA, Radio/HpT); basis of all reach figures: whole German population of 14 years and over Figures as percentages2.2.1 Print works precisely, because magazines activate a large response from few insertions.

26 26 INTENSE | PRECISE | ENDURING Kiosk beats ATM SHOPS AND FACILITIES IN GERMANY Wherever you happen to be in Germany, magazines are already there. Thanks to there being over 120,000 periodical retailers, you are never farther than 1200 meters from the nearest magazine seller, calculated as a pure average. That is half as far as the nearest cash machine, an order of magnitude closer than the nearest airport, station or bakers – and where you also generally find an extensive range of magazines on offer. The “technical coverage” – the proportion of households that could use the medium if they so choose to – amounts to practically 100% for magazines. Sources: sales outlets: structural data of periodical retailers 2010 in Germany; cash machines: Deutsche Bundesbank via bundesbank.de (2010 data); bakers: specialist bakery shops via baeko-magazin.de (2010 data); airports: passenger airports in Germany via wikipedia,org (Oct. 27, 2011); railways stations: Deutsche Bahn, business report Numbers2.2.2 Print works precisely, because magazines activate a large response from few insertions.

27 27 INTENSE | PRECISE | ENDURING Keen to read straight away CUMULATIVE MAGAZINE CONTACT Magazines do not simply appear in the house. The household pays for them and chooses them carefully. Curiosity about what is in each issue is correspondingly great. Half of readers have read the magazine for the first time within the first two days of purchasing it. This applies more or less equally for all weekly, fortnightly and monthly magazines. That means: magazines reach your target group quickly. Source: AIM RFID Contact Study 2009–2011; basis: 2,309 persons in purchasing households, 13,314 magazine contacts based on 27 studied titles; proportions as percentages 100 per cent = all first contacts in time studied2.2.3 Print works precisely, because magazines activate a large response from few insertions.

28 28 INTENSE | PRECISE | ENDURING Audience ratings winners TV AUDIENCES v MAGAZINE CIRCULATION For years the circulation of consumer magazines have consistently achieved the largest media audiences, out-performing every other medium. Magazines often reach more people than the highest rated TV programmes. Even enormously popular shows like “Wer wird Millionär?” (Who wants to be a millionaire?) achieve an average audience less than the circulation of one issue of “stern” magazine. Sources: ma Pressemedien 2011 II LpA, total; AGF/GfK television research/TV Scope, media control; averages for 2010, whole German population of 14 years and above. Figures in millions of people2.2.4 Print works precisely, because magazines activate a large response from few insertions.

29 29 INTENSIV | PRÄZISE | NACHHALTIG Magazines are specialists NUMBERS OF TITLES IN MAGAZINE SEGMENTS Magazines are an extremely diverse, yet targeted advertising medium. Magazines may aim for young and old, families or best agers, decision-makers, sports fans, car buyers, DIY enthusiasts, men, women, children. The list goes on and on. For practically any conceivable target group in Germany there is a magazine to address it. There is sure to be a perfect one for your target group. Source: pz-online.de/IVW, Q3 2011, consumer magazines excluding tourist and event magazines, shoppers and sundry magazines, supplements. Number of titles per segment2.3.1 Print works precisely, because magazines reach defined target groups accurately.

30 30 INTENSE | PRECISE | ENDURING The Facebook generation reads YOUNG READERS OF MAGAZINES Just as the majority of Germans, the Facebook generation also likes to read magazines. Is that any surprise? They also like to watch TV and go to the football stadium. And magazines are not only for those forms of entertainment, they are popular and much used. Source: CN 15.0; basis: German-speaking population between 14 and 29 years in private households in Germany (14.99 million, n = 4,837); consumer magazine readers: persons who on a normal working day read a magazine for at least half an hour. Proportion of readers among 14–29 year olds as percentages2.3.2 Print works precisely, because magazines reach defined target groups accurately.

31 31 INTENSE | PRECISE | ENDURING Readers are leaders ABOVE-AVERAGE MAGAZINE USAGE Reading is an essential cultural ability in the western world. Success or failure in our society depends heavily on access to texts, and this was well-known even before the PISA studies. Without question the media provides lots of our text. The socio-economic position of a person is determined by the amount of their magazine reading, or perhaps vice versa. What is important is that you have an above-average chance of reaching a target group in the upper echelons through magazines. Source: AWA 2011; basis: entire German population of 14 years and above, persons with above-average (PZ plus) and below-average (PZ minus) magazine contact values, n = 20,990 persons. Proportion of intensive magazine usage by socio-economic status, Figures as percentages Print works precisely, because magazines reach defined target groups accurately.

32 32 3. Print works enduringly, because advertising in magazines achieves solid residual effects, it is worthy of trust and delivers a high return on investment. 3 x 3 good reasons for print Advertising in magazines is intense, precise and enduring.

33 33 Print works enduringly, because advertising in magazines achieves solid residual effects, it is worthy of trust and delivers a high return on investment.

34 34 INTENSE | PRECISE | ENDURING Stays in the mind AD RECOGNITION PERFORMANCE As an overall average, a specific advertisement in a magazine is recalled by 26 per cent of all German readers. That means that advertising in magazines quickly generates an enduring image in the minds of Germans. And when we focus on groups who actually are have an interest in a product of that kind the average is even higher at 55 per cent. Advertisements really do leave their messages behind in the minds of their readers, deeply and enduringly. Source: AIM Ad Tracking July 2010–September 2011; basis: 14–69 year old internet users who consciously recall the respective advertisement, and 1,920 ad motifs Average recognition of all motifs, figures as percentages3.1.1 Print works enduringly, because it achieves solid residual effects with great efficiency.

35 35 INTENSIV | PRÄZISE | NACHHALTIG Lasting residual effects AD RECOGNITION OVER TIME Advertisements stay in the minds of their readers for a very long time. Commencing with the first day of purchase, an average magazine achieves the maximum value for recognition of an ad motif after six weeks, from the cumulative effect of repeated contacts. After half a year, a good two-thirds are still remembered. The half-life of ad recall, meaning the time it takes before half the original effect has dissipated, amounts to as much as 10 months. Magazine contacts are therefore a very enduring form of advertising. Source: AIM Ad Tracking July 2010–February 2011; basis: 14–69 year old internet users (n = 91,188), 984 ad motifs and contacts with 50 consumer magazines. Figures as percentages of the maximum recall performance3.1.2 Print works enduringly, because it achieves solid residual effects with great efficiency.

36 36 INTENSE | PRECISE | ENDURING Print is a long seller EXTENDED CONTACT ACCUMULATION Magazines are read over and over again. After the initial, rapid contacts, ever more are added over an extended period. So ads communicate their advertising messages equally enduringly. Source: AIM RFID Contact Study 2009–2011; basis: 2,309 persons in purchasing households, 326,454 double-page contacts based on 27 studied titles; proportions in percentages; Studied period = twice the issue validity 100% = all contacts in analysis period (days from day of first purchase)3.1.3 Print works enduringly, because it achieves solid residual effects with great efficiency. Weekly magazines also deliver additional (multiple) contacts after two weeks Fortnightly magazines also deliver additional (multiple) contacts after four weeks Monthly magazines Also deliver additional (multiple) contacts after eight weeks

37 37 INTENSE | PRECISE | ENDURING Magazines stay visible a long time MAGAZINES HAVE SOCIAL AUTHORITY Magazines persist in the household for long periods and by preference on show, for example on a coffee table in the lounge. From this we can draw two remarkable conclusions about advertising in consumer magazines: First, that magazines appear to be a status symbol; they carry social authority. That is a plus for the qualitative effectiveness of the advertising they contain. Second, they have the possibility to accumulate many additional contacts. And that is a plus for the quantitative effectiveness for the advertising they contain. Source: TdW 2011 III; basis: German-speaking population of 14 years and above (70.5 million, n = 20,129) Agreement to respective statements as percentages3.1.4 Print works enduringly, because it achieves solid residual effects with great efficiency.

38 38 INTENSE | PRECISE | ENDURING Print enjoys trust CREDIBILITY OF ADVERTISING Magazines are so highly valued for the quality and content of their journalism, that people are prepared to pay for them. This level of trust is obviously also extended to the advertising they contain: Of all types of media, print advertising enjoys the highest of trust. This is especially good for effective brand communications. Source: CN 15.0; basis: German-speaking population between 14 and 69 years of age (58.99 million, n = 19,032); statement: “On the whole advertising (in the respective medium) is credible: broad/full agreement” Figures as percentages3.2.1 Print works enduringly, because the ads are appealing and worthy of trust.

39 39 INTENSE | PRECISE | ENDURING Causes no annoyance “ADS IN THE MEDIUM REALLY ANNOY” Advertising forms an integral part of magazine content. This causes no annoyance, or at least ads are not regarded as annoying by readers. In no other advertising medium do ads annoy less than in magazines. The ideal preconditions for building and retaining trust and appeal. Source: Medienprofile und Medienbegabungen, Institut für Demoskopie, Allensbach (2008); basis: entire population 14–69 years of age (n = 4,000) Agreement in percentages3.2.2 Print works enduringly, because the ads are appealing and worthy of trust.

40 40 INTENSE | PRECISE | ENDURING Three is all you need EFFECTIVE WITH LOW CONTACT DOSES Ultimately, advertising effectiveness is always a question of dosage, along with the medium employed. Frequently the most important question is: How can the maximum effect be achieved for a modest budget? The answer is relatively simple: by using consumer magazines. Here we show that magazine advertising effectiveness is, for example on assisted ad recall after comparably low with other types of media. Source: AIM Brand Tracking 2010/2011; basis: entire population of 14 years and above; modelling based on 346 campaigns (n = 21,038). Legend: persons with 1–3 magazine contacts increase the assisted ad recall by 2.4 percentage points. Shift of assisted ad recall after 1–3 contacts, in percentage points3.3.1 Print works enduringly, because ads deliver a very high return on investment.

41 41 INTENSE | PRECISE | ENDURING Optimum mix CONTACT MIX WITH LOW CONTACT DOSES In combination with the internet, magazine campaigns are very effective for modest budgets with low contact doses, too. The uplift on ad recall for a combination of magazines/internet is marginally better than for a TV/internet combination. This means magazines and the internet compliment each other exceedingly well. Source: AIM Brand Tracking 2010/2011; basis: entire population of 14 years and above; modelling based on 346 campaigns (n = 21,038). Legend: persons with 1–3 mixed contacts in magazines and internet increase the assisted ad recall by 5,0 percentage points. Shift of assisted ad recall after 1–3 contacts, in percentage points, for campaign contact mixes of magazines and internet, TV and internet Print works enduringly, because ads deliver a very high return on investment. Magazines 3.3 Internet 1.7 Internet 2.2 Television

42 42 INTENSE | PRECISE | ENDURING Maximum efficiency EFFICIENCY OF AVERAGE CONTACTS When we analyse the campaigns of 346 brands by media type using the figures from AIM Tracking, we note some significant differences in the efficiency. Per average contact, magazine campaigns improve the assisted ad recall only slightly more than internet campaigns, but significantly more than TV and newspaper campaigns. In this respect, magazine campaigns have maximum efficiency. Source: AIM Band Tracking 2010/2011; basis: entire population of 14 years and above; modelling based on 346 campaigns (n = 21,038). Legend: magazine campaigns achieve an improvement of the assisted ad recall per average contact by 1.5 percentage points. Shift of the assisted ad recall per average contact in percentage points3.3.3 Print works enduringly, because ads deliver a very high return on investment.

43 43 INTENSE | PRECISE | ENDURING Extreme leverage LAW OF DIMINISHING RETURNS Like practically everything in commercial life, advertising is subject to the law of diminishing returns: Each additional contact has a lesser effect. The technology and business models of TV stations and websites often operate so they deliver very high contact doses per target person. This brings only tiny incremental returns on investment. Campaigns in consumer magazines generally operate with relatively low contact doses. For more investment this usually results in very high returns. This means ads in consumer magazines exert a high degree of leverage on the ROI. Source: AIM Brand Tracking 2010/2011; basis: entire population of 14 years and above; modelling based on 346 campaigns (n = 21,038). Example: an average campaign achieves with 10 average contacts a parameter uplift of 5.0 percentage points, for 13 average contacts it is 5.4 percentage points. Parameter shift per average contact in percentage points3.3.4 Print works enduringly, because ads deliver a very high return on investment.

44 44 INTENSIV | PRÄZISE | NACHHALTIG Capital investment with yield SPENDING VERSUS EFFECT BY MEDIUM An analysis of the influence of advertising spending on major key performance indicators such as awareness, appeal and purchasing intention in some 900 models show that in very many instances magazines have a far greater effect in relation to spending. Their effective contribution is around one and a half times the size of the investment part. That means magazines contribute a very high return on investment. Source: AIM Brand Tracking 2010; 906 models (ISBA, Nielsen Media Research), brands with spending > 1 million euros in consumer magazines and > 2 million euros in total based on the KPIs purchase intention, appeal, usage, brand awareness, assisted and unassisted ad recall. Proportions of spending and contributory effect in percentages3.3.5 Print works enduringly, because ads deliver a very high return on investment.

45 45 Published by VDZ Verband Deutscher Zeitschriftenverleger e.V. Consumer magazines Markgrafenstr Berlin Responsible Alexander von Reibnitz, VDZ Reproduction All rights reserved Reproduction only by consent of the VDZ ISBN Masthead

46 VDZ Verband Deutscher Zeitschriftenverleger e.V. Die Publikumszeitschriften Markgrafenstr Berlin T: F: ISBN


Download ppt "3 x 3 good reasons for using print Presenting a powerful case for advertising in consumer magazines INTENSE | PRECISE | ENDURING Berlin — November 2011."

Similar presentations


Ads by Google