Magazines & Brand Metrics

The impact of investment

Econometrics & ROI

Magazines & the Customer

Journey - ‘MAGNIFY’

Magazines & Brand Metrics

The impact of investment

Econometrics & ROI

Understanding the consumer journey

AWARENESS

RESEARCH & FAMILIARITY

OPINION & SHORT LIST

CONSIDERATION

PURCHASE

PRE-AWARENESS

PURCHASE INTENT TRIGGER

NOTED SCORES

ADVERTISING EDITORIAL

WELCOME

54% 54%

NET ACTION SCORES

ADVERTISING EDITORIAL

63% 66%

SOURCE: MAGNIFY

1Magazine Influence

Purchase actions

How magazines drive consumer behaviour

Engagement Reference actions

AD

VER

TISI

NG

EDIT

OR

IAL

FAMILIARITY RESEARCH CONSIDERATION & PURCHASE

Impact actions

BRAND ACTIVISM

SOURCE: MAGNIFY

Read most

Read Any

25%

45%

Read Any

Read Most

50%

33%

Gatheredmore info

Visited brandwebsite

Cut out ad7%

16%

18%

Used for ideas

Gatheredmore info

Cut out ed

Visited brandwebsite

18%

13%

11%

7%

Have a morefavourableopinion

Recommendedthe product14%

19%

Discussed/referred

Passedto someone

19%

13%

Consideringpurchase

Purchased9%

22%

Consideringpurchase

Purchased

12%

4%

1

MAGAZINE

But how do magazines compare?

MagazinesAn ROI study

Magazines & Brand Metrics

The impact of investment

Econometrics & ROI

2

34

What is ROI?2

MINDSHARE/BRANDZ

2

Brand Pyramid

Brand Lifestage Typology

Brand Voltage

MINDSHARE/BRANDZ

Brand Personality

2

Magazines & Brand Metrics

Bonding is the most

important factor which drives consumers towards purchase

MINDSHARE/BRANDZ

2

HighShare of wallet

LowShare of wallet

7The brand pyramid

brand Typology:

Defender

MINDSHARE/BRANDZ

2

798873

55

BrandZ Analysis

14 Categories136 brands

Mainstream media spend by channel

a COMPREHENSIVE UNDERSTANDING OF MEDIA vs BONDING SCORE

MINDSHARE/BRANDZ

2

<£2mCampaign Value

Magazines & Bonding

Brands that invest 20% above average* in magazines enjoy higher bonding scores than

brands that underinvest

£2m – £10mCampaign Value

25% 72%

BrandZ: 136 Brands using magazines*Based on average share of spend of 7% in 2011: Source WARC/ AA

2Magazine = ave. 7% of spend

5876

56458

5977

5741

9

6276

594711

Olay has spent more than

£15 millionBrandZ: Face care, *Source: Nielsen AdDynamix

In magazines since 2008*

2008 2009 2010

Magazines & Brand MetricsOlay used magazines’ bonding power to rebuild and maintain their brand

Base: (403) Base: (400) Base: (399)

2

2431

23184

2734

26205

3440

33248

P&G’s Aussie has spent more than

80%BrandZ: Haircare, *Source: Nielsen AdDynamix

of their budget on magazines* since 2007

2007 2009 2011

Magazines & Brand MetricsP&G’s Aussie is a brand that has been built on magazines bonding power

Base: (403) Base: (400) Base: (399)

2

How do magazines perform in

econometrics?

3

Base

Price / Promo

In Store

DM

Media

Comp. Price / Promo

Comp. Launches

Comp. Media

Seasonality

Sales

Measured level of base sales

Isolating the media effect

Time

Sale

s

SALES UPLIFT

+10%ATL Media’s contribution to sales

DISTRIBUTION

PRICING

PROMOTIONS

COMPETITORACTIVITIES

PAY-DAYS +HOLIDAYS

CLIMATEFACTORS

BROADCASTMEDIA

PRINTMEDIA

ONLINE

OUTDOOR& CINEMA

Isolating the media effect

SOURCE: MINDSHARE/OHAL

3

The ROI challenges for magazines

Estimated as Press

Using appropriate

media inputs

3

Low weighting

The challenges for magazines

81%

GRPs

Time (weeks)Week 1(On sale week)

Incorrectly applied print models assume the total audience is reached during the on sale week

Monthly Magazines

ReachIn four weeks

SOURCE: NRS ACCUMULATION STUDY

3

Analysis of 5 FMCG campaigns…

Without accumulation Magazine ROI is underestimated

On average, accumulation data shows an ROI uplift for mags of..…19%

SOURCE: MINDSHARE INPUT ANALYSIS OF 5 FMGC CAMPAIGNS - 2012

3

+3%Brand B +7%Brand C+14%Brand D +33%Brand E+40%

Brand A

So how do magazines really stack up?

“But of course he is going to say that!”

£6mANALYSIS OF 77 CAMPAIGNS WITH A SPEND UP TO

MAGAZINE

150

60

137

103

99

97

167R

OI M

edia

n In

dex

per c

hann

el

SOURCE: MINDSHARE/OHAL META ANALYSIS OF 77 CAMPAIGNSINDEX OF MEDIAN PERFORMANCE OF EACH CAMPAIGN

Why do magazines…

1

4

…rank so highly?

Use in channel selection

Optimising budget allocation

Maximum potential salesSales

potential

Spend

Blue sales100k

The same investment can yield much higher returns dependent on chosen media.

In this illustration £100k invested in the yellow media can yield twice the sales of blue media100k

Yellowsales

4

Use in channel selection

% of maximum sales on the media channel

100%

Weekly Media Spend

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%£0 £500,000 £1,000,000 £1,500,000 £2,000,000

Outdoor TV1 Magazines TV 2

In this case, magazines are by far the most underinvested medium…

… this appearsto be consistent across most campaigns analysed

Diminishing Return Curve Analysis – Campaign A

4

SOURCE: MINDSHARE/OHAL

Budget Reallocation

SOURCE: MINDSHARE DIMINISHING RETURN CURVE ANALYSIS OF 5 FMGC CAMPAIGNS - 2012

Average Sales Uplift

The gains made by reallocating budget to magazines was far greater than what was lost from the host medium

4

Analysis of 5 FMCG campaigns…

1% 1.9% 2.6%

+10%

+20%

+30%

By how much can magazine budgets

be increased before it impacts

on ROI?

4

The bottom line

… budgets have to be at least doubled

before magazine ROI reduced to the same

level as TV

SOURCE: MINDSHARE DIMINISHING RETURN CURVE ANALYSIS OF 5 FMGC CAMPAIGNS - 2012

4

Analysis of 5 FMCG campaigns…

Brand Ax2Brand B x3Brand Cx5 Brand D x8Brand Ex15

What changes in magazine investment are required to match TV ROI?

ROI in Summary

Magazines get consumers

closer to brands.

Brands who are heavy magazine users enjoy higher bonding scores

It is easy to underestimatemagazine ROI

Magazines ROI is

provento be higher than all other media channels

To address the levelof underinvestment in magazines, budgets

need to be more than doubled before ROI starts dropping off

ROI