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 Advertising

Objective To provide research evidence which supports the arguments for using magazine advertising Consumer & b2b Seven key points

Two reports

1. Readers develop a personal relationship with their magazines

Matching a magazine’s personality to 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 Source: Smurfit/UCD for PPAI, Ireland

Readers develop a personal relationship with their magazines 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 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 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 Source: Middletown Media Studies, Ball State University, USA

3. Readers are receptive to the advertising

The ads are relevant Source: Smurfit/UCD for PPAI, Ireland

Readers are receptive to the advertising Source: Smurfit/UCD for PPAI, Ireland

Lowest ad avoidance for magazines Source: Smurfit/UCD for PPAI, Ireland

4. Magazine advertising influences the purchase decision-making process

Magazine ads helpful as a buying guide Source: Smurfit/UCD for PPAI, Ireland

Magazine ads >> purchase 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 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 impact to TV & online 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

Magazines add to TV & online: Brand familiarity Source: Marketing Evolution for MPA, USA

Magazines add to TV & online: Intention to purchase Source: Marketing Evolution for MPA, USA

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 Source: Simultaneous Media Usage Survey 9, BIGresearch USA

Magazines > online > purchase Source: In-Market Media Usage Survey, Jupiter Research, USA

Marketing campaigns should use both magazines & online Source: ‘Engagement Counts’, Future Publishing Ltd, UK

Among ‘Influentials’ magazines create more buzz Source: Roper Center for Public Opinion Research, USA

6. Magazine advertising creates sales: a) Magazines used on own

Magazine advertising sales

‘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 sales by an additional 11.6% Source: ‘Sales Uncovered, TNS for PPA, UK

Return on investment Medium 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… Source: ‘Sales Uncovered, TNS for PPA, UK

…but at a third of the cost Source: ‘Sales Uncovered, TNS for PPA, UK

Budget implications Expenditure Effectiveness Magazines TV

Budget implications Expenditure Effectiveness Magazines TV

7. Magazines are a vital ingredient in b2b marketing campaigns

Importance of industry-specific media: magazines, websites, face-to-face Source: Forrester Research/ABM

Usage of traditional b2b media Source: Forrester Research/ABM

Usage of digital b2b media 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: engagement Readers are receptive to ads Magazine advertising influences the purchase decision-making process Magazine advertising makes other media work harder – TV, online, etc Magazines create sales: used on own, or in combination with other media Magazines are a vital part of multi-channel communication strategies (consumer & b2b) Summary: research proves the case for magazine advertising

Two reports

Further sources

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) 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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