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WHY CONTENT MARKETING BUILDS TRUST The Power of Customer Publishing Brussels March 2010

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Page 1: CUSTO FINAL

WHY CONTENT MARKETING BUILDS TRUST

The Power of Customer Publishing

Brussels

March 2010

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The APA :

“Customer publishing is a rapidly growing industry where brands are using editorial content, irrespective of channel, to engage

consumers, drive loyalty and to deliver tangible marketing effect.” • APA encourages best practice and promotes the industry on a global level• Drive growth of new business and margin for members (both print and digitally) through:

Promote: Marketing/International Prove: ResearchPersuade: ASK – new business serviceProclaim: Events – training and awardsProtect: Environment/ lobbying

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The industry:

• Fourth biggest media – spend £904m*

• 50 members, over 1,000 brands – 90% of UK market

• Agency not media owner model = fee based

• Not ‘free media’ – charge clients for producing editorial content that delivers tangible results

• Hence proven model to monetise web content

• Entire industry backed by proven research - both reach and results

• Internationally renowned and respected; the APA also run the International Customer Publishing Federation with 17 countries as members globally

• International Content Summit – The power and future of content

* Mintel 2008

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£904m spend

323,000 average circulation

33/100 circulation titles

45% of client work is cross media

An overview of the UK market:

16% growth92 launches

70% posted

20% income from 3rd party advertising

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Industries investing in Customer Publishing:

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Growth in the future…

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Key reasons for growth:

• The changing media marketing place:

• 1,000’s of ways to reach consumers• Difficult to engage time poor consumers• Reach versus outcomes• Customers losing trust in brands• Trend towards participatory communications

• Innovation• Power of editorial online and in print• Creativity and quality

•Effectiveness • ROI is key

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“Long copy - and prolonged leisurely engagement - are often out of fashion in an advertising business which often confuses creativity with brevity. This

would have driven David Ogilvy insane. Happily your industry is one of the last few pockets where this

talent still flourishes: and it's a talent that somehow lends to brands a quality that nothing else can.”

Rory SutherlandVice-Chairman, Ogilvy Group UK

Effectiveness - engagement is key:

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Proving the power of customer magazines: APA/Millward Brown Advantage Study:

• 21,000 consumer interviews

Key findings:• 25 minutes time spent with a brand• Top 6% of consumers spent over an hour with the brand• More time than any other media = 50 x 30” TV slots• 57% of consumers read at least half of the magazine• 18% of consumers pick the magazine up 3 – 4 times• 60% keep the magazine for a week or more• 14 % keep it for reference• 8% pass it on to a friend

Engagement = loyalty

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Engagement = loyalty:

Customer magazines drive response:• On average 44% of consumers who receive a customer magazine do something as a result:

• 78% - retail sector• 45 % - membership titles• 30% - automotive sector• 23% - finance sector

Improving loyalty and driving brand equity:• Positive impact on consumers view of a brand:

• Increase view of leadership values by 11%• 32% increase in brand loyalty

Tangibly drive sales: • Drive an 8% increase in future sales• Readers of supermarket titles spend over £5 or more on groceries than non-readers

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Retail titles:44

78

6362

5147

2925

2121

1615

97

Study AverageRetail Average

Tried a recipeVisited store/branch

Bought a new product/used a new serviceUsed a voucher

Showed the magazine to a friend or relativeEntered a competition

Recommended the store to a friendVisited the website

Enquired about a specific product/serviceVisited a department you would not usually shop in

Carried out an ideaUsed a service you would not usually use

Level of active response%

Best performer

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Finance titles:

4423

15

10

98

65

42

1

Study AverageFinancial sector average

Called the company for more infoEntered a competition

Enquired about a specific product/serviceVisited a website

Visited a store/branchBought a new product/used new service

Added to an existing product ownedUsed a voucher

Responded to an offer

Level of active response%

Base: Magazine sample (915)

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Automotive titles:44

30

2314

1313

1212

108

77

54

211

Study AverageAutomotive sector average

Discussed with friend/colleagueVisited store/branchVisited the website

Enquired about a specific product/serviceCalled/visited dealership

Given copy to interested friendCalled the company for more info

Bought a new product/used new serviceEntered a competition

Requested a test driveBought a winter serviceRequested a brochure

Responded to offerUsed a voucher

Contacted the featured insurance company

Level of active response%

Base: Magazine sample (1529)

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The power of posted magazines in driving loyalty:

• Receiving a magazine through the post does have a positive impact on engagement • Customers are more likely to spend longer reading a posted magazine in comparison to a picked up title - 20% more time spent• They are also more inclined to keep hold of it for longer and to keep it for reference – 20% more keep it for over a month and 40% more like to keep it for reference• This difference in consumer response to posted vs picked up magazines (greater consumer engagement with posted magazines) is most evident in the retail sector:

• 30% more likely to read it for 30mins or longer • 50% more likely to read it for an hour or more

• There is a strong desire among readers of B2B customer magazines to receive it by post.

.

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Posted Magazines Research results:

• Over a third (39%) of consumers that receive a magazine in the post are driven online to investigate or purchase from that brand

• Posted customer magazines drive more people online than those that are picked up in-store (26% compared with 23%)

• 18-24 year olds are the most likely age group to go on to buy a product online as a result of reading a magazine they receive in the post

• 25 – 24 and 35 – 44 year olds are by far the most likely age groups to be driven to investigate a brand online having read a posted title

“Posted Magazines Drive Online Activity”

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“Posted Magazines to Engage Youngest Audience”

• Posted customer magazines engage the 18 – 24 year olds more than any other age group

• This notoriously hard-to-engage group are more likely to purchase online, pass the title on to friends and twice as many consumers take more notice of that brand’s other advertising and marketing having read the magazine than any other age range

• More than double the number of consumers in this age range feel that brands should make the effort to post their title than those over the age of 45

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B2B Customer magazines:

• 9 B2B case studies• 53% read for more than 20 minutes with 11% reading for more than

one hour• 54% keep for over a month• 61% of all readers prefer to receive the magazine in the post rather than

pick up• 1 in 4 pass on to a colleague – great WOM for brand• 72% open the copy that they receive in the post• 64% read almost every single issue they receive in the post• Whilst there is a growth in demand for online access this is not at the

expense of a printed copy• In B2B category as a whole, magazines are more likely to be kept for

reference – 32%

.

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“Companies should be looking to engage with their core customer audiences through

whichever channels are relevant to those customer’s lives. Branded editorial content allows for good targeting and can provide a

quality environment for messaging that is less

commercial and more trusted than advertising”Martin Hayward,

Director of strategy and consumer futures, dunnhumby

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asos.com – the history asos.com launched in 2000.

Awarded Retail Week Rising Star 2005.

Drapers Etailer of the Year Award 2005.

Company High Street Award – Best online shop 2006.

Launched asos Magazine - September 2006.

Retail Week Awards – Online Retailer of the Year 2007.

APA Award Most Effective Retail Consumer Publication 2007

PPA Award Customer Magazine of the Year 2008.

Launched asos men’s magazine – May 2008.

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Communication

Newsletter: generated 8% of company sales.

Analytics: Refining processes to maximise conversion.

CRM: Single customer view.

PPC: ROI consistently above £50.

Partnerships: Driving qualified traffic.

Social Media: Double the amount of traffic and quadrupled sales generated in 4 months.

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The asos.com customer 3.9m unique visitors a month.

On average visitors return 2.5 times a month.

41% of “best customers” visit daily and over 90% visit weekly.*

Average time on site is 10 minutes.

Average pages viewed is 27.

Gender split 80/20 female biased.

*Customers research 2008

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asos.com magazine – the history Launched in September 2006 as a 3 month trial.

Objective to showcase product, drive traffic, increase sales.

Format was 68 page with a print run of 100,000.

Initial plan was for the magazine to be distributed:

- with orders- purchased from the website- field marketing

- bagged with target fashion magazines.

First three issues generated over £1.5m.

Drove a significant increase of sales of respondents.

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What they think of asos magazine

“I thought, oh god it’s going to try to make me buy things, but I

actually really enjoyed it and realised it had some stuff that I really liked”

“I like the fashion shoots... I’m not going to buy the whole outfit but it gives me ideas”

“If I see something I like in the magazine I’ll turn a page down and look it up when I’m next online”

it’s very similar to Grazia, I was expecting a catalogue”“I didn’t expect to see a SATC article in there, it’s very magazine like”

“it’s like Glamour…..it’s travel size….it’s good for the handbag…..it’s like having the website in your hands”

*Focus group 2008

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asos.com magazine – the original brief

Awareness Loyalty and Frequency

Driving traffic/sales/conversion

Reactivation Awareness Loyalty and Frequency

Loyalty and Frequency

Reactivation Awareness

Driving traffic/ sales/conversion

Lapsed/ Dormant

New Active

Due to its success the magazine becomes the single biggest marketing investment.

A review was necessary to align magazine with business objectives and determine the most profitable customer segment to target.

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asos.com magazine – our findings

Active customers’ response rate was up 8.5% on dormant and 2.3% on lapsed

customers.

Active customer ABV was up 6.8% on dormant and 8.3% on lapsed customers.

Conclusion

The magazine is most effective when used as a loyalty tool.

The magazine is more likely to have a positive brand effect, drive ABV and UPO

of an active customer than a lapsed or dormant customer.

Smaller 36 page supplement to drive new customer acquisition.

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asos.com magazine – the brief redefined

Awareness Loyalty and Frequency

Driving traffic/sales/conversion

Reactivation Awareness Loyalty and Frequency

Loyalty and Frequency

Reactivation Awareness

Driving traffic/ sales/conversion

Lapsed/ Dormant

New Active

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asos.com magazine – today

Asos magazine glossy monthly fashion

magazine with more readers than leading

titles Company, Elle, Grazia and More. ABC

certified (429,406 Jan – June 08).

Magazine targeted at active customers.

Magazine primarily used as a loyalty tool

with a smaller supplement used for

acquisition.

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asos.com magazine – supplement activity

The magazine had been used as a cover mount on target fashion publications.

Response rate was strong but acquisition cost too high.

In 2008 developed a 36 page supplement.

Contained a targeted offer designed to drive ABV.

First supplement provided a ROI ratio of 1:9 with an ABV of over £100.

Company ABV for the same period was £60.

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asos.com magazine – launched standalone menswear issue

Due to the success of the women’s magazine menswear titled launched.

First issue ran in June 08 with a print run of 500K.

Distributed to customer base and bagged with

target publications.

Contained a targeted offer.

ABV of customers responding to the magazine

was Up 66% on company average.

50% of orders from target publications were from

new customers. This is 100% up on company

average.

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asos.com magazine – goes digital!

Digital magazine allows less profitable customers to

experience magazine offer without associated costs.

Ability to “buy off the page”.

Enhanced interactive features like catwalk.

Increase engagement within the social

network arena.

In the first 2 weeks men’s edition generated

almost £100,000.

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asos.com magazine – brand awareness

The magazine also helps promotes brand awareness – research

found that 60% of the readership shared their copy of the

magazine with at least 2 people.

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“Editorialised content is now a hygiene factor in the building of relationships between brands and consumers. However the brands that get it right are the ones that truly connect brand values and the brand promise to the very real needs of their customers. Editorialised content is absolutely key to continually refining and honing the relationship and is a very real demonstration that brands are

listening.” 

Chris WardManaging Partner

Partners Andrews Aldridge