PROOF OF PERFORMANCE MAKING THE CASE FOR MAGAZINE MEDIA GUY CONSTERDINE HOW IMPACTFUL IS YOUR PRINT CAMPAIGN? Find out with StarchMetrix— the global standard for print advertising eectiveness metrics. Email [email protected] to learn more. GfK. Growth from Knowledge www.gfkmri.comwww.gfkmri..com contents Readers love their magazines FOREWORD 06 CHAPTER 2 MAGAZINES IN IMPACT OF ADVERTISEMENTS IN PRINT DIGITAL FORMATS INTRODUCTION 08 Ads are part of the desired CHAPTER 4 magazine content 27 CONSUMERS’ USE OF DIGITAL FORMATS EXECUTIVE SUMMARY 10 Relevance for readers means A. WEBSITES: targeting for advertisers 29 Print and websites complement each other 44 Ad noting: what it is measuring 29 Complementary – but print is Ad noting: some results 30 preferred to websites 46 MAGAZINES IN PRINT Beyond ad noting: actions B. DIGITAL EDITIONS: CHAPTER 1 stimulated by seeing print ads 31 Penetration of digital editions 47 CONSUMERS’ USE OF PRINT Engagement increases ad effectiveness 35 Profile of readers of digital editions 47 Each magazine has its own personality 16 Ad clutter is not a problem in magazines 35 Reasons for reading digital editions 48 Motivations for reading magazines 16 Readers with a predisposition to buy 36 Time spent reading 48 A personal relationship Ad impact: it’s worldwide, and in the nature of Mode of reading 49 between reader and magazine 16 printed magazines 37 In-home, out-of-home 50 Engagement/involvement 18 Tablets are changing consumers’ The ‘magazine moment’ 19 CHAPTER 3 expectations and behaviour 51 Connecting with the personal self 20 CREATIVE FORMATS FOR PRINT ADVERTISING Tablets are fun – and indispensible 51 Trust and ‘me time’ 20 Creative format = premium impact 38 Digital editions increase total Time spent reading 20 Samples, booklets & inserts linked to ads 40 consumption of magazine content 52 Repeat reading 21 Advertorials/Branded content 40 Engagement 52 Keeping copies for reference 23 Scented ads 42 Preferences for print or digital editions 54 Specialist and general magazines 23 Mobile action codes 42 Why print will co-exist with digital formats 54 Readership accumulation 24 Publishers’ audience profiles trending towards digital 56 9 PROOF OF PERFORMANCE 03 contents CHAPTER 5 The ads: interruptive and B. MA GAZINE MEDIA’S IMPACT ON IMPACT OF ADS IN DIGITAL FORMATS annoying, or welcomed? 72 SALES IN MULTI-MEDIA CAMPAIGNS A. WEBSITES: Actions taken 74 Sales Uncovered 91 The importance of trusted brands 57 Magazines as drivers of online activity 75 Magazines outperform TV in Polish case studies 59 Henkel Swarzkopf case study 91 Magazines as drivers of word of mouth 76 Visibility of online ads: The effect of diminishing returns 95 Distinctive positioning for magazines as only 69% are ‘in view’ 59 communicators, influencers and motivators 77 P&G shifts ad spend from TV to magazines 97 B. DIGITAL EDITIONS: Desirable target audiences 60 CHAPTER 9 Receptive to advertising in digital editions 60 ADVERTISING EFFECTIVENESS USING ECONOMETRIC MODELS Ads in digital editions match or CHAPTER 7 TO ASSESS MEDIA EFFECTIVENESS What is econometric modelling? 99 better the performance of print ads 61 CAMPAIGN EFFECTIVENESS: In-app ads outscore print MAGAZINE MEDIA ON THEIR OWN What modelling can teach us: and digital replica ads 62 Meredith analysis shows 10% uplift in sales 78 the Henkel studies in Sweden 100 Readers have high demands PPA analysis shows 11.6% uplift in sales 80 Five problems for magazine media 102 of tablet advertisements 64 Distributing magazine exposures 103 Advertisements on iPads stimulate action 65 CHAPTER 8 Magazine ROI under-estimated by a fifth 103 Creative work in tablet ads CAMPAIGN EFFECTIVENESS: Why is accumulation data needs to be more creative 65 MAGAZINES IN MULTI-MEDIA CAMPAIGNS commonly not used? 104 Tablets versus smartphones 66 Synergy between media 82 What can be done about it? 105 C. SOCIAL MEDIA 66 A. MAGAZINES’ EFFECT ON CONSUMER JOURNEY Other kinds of data on magazines 105 The consumer journey 84 A continuous readership diary panel? 106 Dynamic Logic/Millward Brown’s COMPARING MAGAZINES CrossMedia research 84 AND OTHER MEDIA Marketing Evolution’s purchase funnel 86 CHAPTER 6 Magazines initiate the media multiplier COMPARING MAGAZINES AND OTHER MEDIA – and make TV work harder 87 Overview of each medium 68 The Media Observer: evidence of REFERENCES 108 The personal medium 70 under-spending on magazines 89 Time spent on media 71 Share of spending versus share of effect 90 INDEX 111 Multi-tasking 71 ABOUT FIPP / THE AUTHOR 114 Primary attention 72 04 PROOF OF PERFORMANCE USING QR CODES TO WATCH VIDEOS Your camera-equipped mobile phone or tablet can play videos in this book, using QR (Quick Response) codes. If you don’t already have a suitable app, AUTHOR download any of the major QR code Guy Consterdine readers (such as QRReader, ExecTag, [email protected] Scan, Quick-Mark, etc) from your app store or marketplace. Open the app, point fipp.com EDITORIAL your device’s camera at the code, and Helen Bland you’ll be watching a video. Or using the A FIPP RESEARCH REPORT [email protected] code above you will instead be visiting a website – the Proof of Performance PROOF OF PERFORMANCE: PUBLISHER toolkit page on the FIPP website. MAKING THE CASE FOR MAGAZINE MEDIA Chris Llewellyn 1st edition, published by and © FIPP Limited, 2012 [email protected] ISBN (print edition) ADVERTISING & SALES 978-1-872274-28-7 Stuart Hands [email protected] ISBN (digital edition) 978-1-872274-29-4 Natalie Butcher [email protected] Although the greatest care has been taken in the preparation and compilation of this book, no legal liability or responsibility of any kind, including responsibility for errors of omission or acts of DESIGN negligence, is accepted by the author, publishers or their agents. The Ian Crawford content of this book is not the opinion, nor the responsibility, of FIPP. [email protected] PROOF OF PERFORMANCE 05 foreword Strength in numbers Chris Llewellyn, t was in ancient Egypt that commercial 1990’s, Brand Managers could choose between new President of FIPP, messages first started to appear, handwritten multi-channel terrestrial, cable and satellite TV heralds the new on papyrus – a fantastic, mobile, interactive channels; national and hyper-local radio; a resurgent age of publishing, new medium that had so many more cinema; professional outdoor; efficient printing and advantages over the static wall paintings distribution systems encouraging new newspaper where strong that had been the dominant media to that sections and launches; an explosion of magazines; content finally point. And so, more than two millennia ago and with a PC on every desk, ever more sophisticated gets the true began the debate about advertising effectiveness. direct mail and direct marketing techniques. multi-platform ISubsequently legions of researchers and analysts Lurking in the background, about to emerge, opportunities it have spent whole careers in trying to establish how eyes-blinking into the light, was ‘New Media’. In deserves. advertising works, a task always complicated by the 1995 the internet had only some 16 million users fact that the palette of media choice available has worldwide – mainly academics, scientists, and never been static. By the time we get to the mid- government agencies. Google, eBay, and Yahoo!, were 06 PROOF OF PERFORMANCE all created or came to market in the twelve months and the way that advertising, and specifically WHAT SEEMED A between January 1995 and January 1996. So what magazine media advertising, now works. DIZZYING CHOICE OF MEDIA BACK IN seemed a dizzying choice of media back then was, FIPP, whose mission is to share knowledge 1996 WAS, AS WE as we now know, just the end of a new beginning. and identify and communicate emerging trends NOW KNOW, JUST By the mid 2000s, there was a plethora of advertising to our members, the world’s most important THE END OF A NEW effectiveness studies of how ‘new’ and traditional magazine media groups and associations, therefore BEGINNING... media worked. During this period FIPP produced commissioned the eminent media researcher Guy a report, Take a Fresh Look at Print, which reviewed Consterdine to review and interpret the many recent research studies from all over the world to produce advertising effectiveness studies. It has been quite a set of coherent findings that explained the role a task, but with Proof of Performance: Making the magazines played in the then new media mix. Case for Magazine Media I believe we have produced Since then of course we have seen the emergence of an important piece of work that demonstrates social media, YouTube and Facebook, both launched empirically just how effective and engaging magazine in 2005 for example, and in April 2010 came the media brands are irrespective of platform. launch of the iPad. Together with other tablet devices, My thanks therefore go to Guy, and to my colleague sales since launch are approaching some 200 million, Helen Bland who has driven this project brilliantly, becoming truly mass-market, and have changed the and last but not least, to all the many researchers shape of the media industry in a quite fundamental and their companies from around the world who way. Today, with an always ‘on’ consumer, we have a have allowed FIPP access to their material. complex, perplexing panorama that sees magazines moving out of their former silo straightjackets and becoming truly multi-platform media brands, available anytime, anywhere, and anyhow. Chris Llewellyn This means there is a need to understand how President and CEO these changes have affected media consumption, FIPP – the worldwide magazine media association PROOF OF PERFORMANCE 07 introduction his is an exciting time to be working in the be populated with local research evidence; and world of media, particularly in magazines • to stimulate ideas for publishers and others in and digital media.