1. 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

2. Ad agencies Newspaper publishers Magazine publishers: consumer & b2b Media research consultancy

4. The Case For Magazine Advertising

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

6. Two reports www.ppa.ie

7. 1. Readers develop a personal relationship with their magazines

8. 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

9. 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

10. Magazines are most tailored to audience Source: Smurfit/UCD for PPAI, Ireland

11. Readers develop a personal relationship with their magazines Source: Smurfit/UCD for PPAI, Ireland

13. 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’

14. 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

15. Other reader studies? Other editorial research?

16. 2. Magazines are well read

17. Extensive reading time: twice that of newspaper supplements Source: Quality of Reading Survey, PPA

18. 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

19. Using 2+ media simultaneously Source: ‘Magazine Experiences Europe’, Germany/France, UK, Time/Fortune

20. 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

21. Multi-tasking: magazines attract primary attention Source: Middletown Media Studies, Ball State University, USA

22. 3. Readers are receptive to the advertising

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

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

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

26. 4. Magazine advertising influences the purchase decision-making process

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

28. Magazine ads >> purchase Source: Smurfit/UCD for PPAI, Ireland

29. 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

30. Magazines are effective at all stages of the ‘purchase funnel’ Brand awareness Ad awareness Understood message Favourable impression Intention to buy Buy

31. 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

32. Magazines add substantial impact to TV Source: CrossMedia Research, Dynamic Logic & Millward Brown, USA

33. 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

34. Magazines add substantial impact to TV & online Source: CrossMedia Research, Dynamic Logic & Millward Brown, USA

35. 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

36. 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

37. Magazines add to TV & online: Brand awareness Source: Marketing Evolution for MPA, USA

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

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

40. 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

41. 5. Magazines make digital media and buzz work harder

42. Magazines drive online searching Source: Simultaneous Media Usage Survey 9, BIGresearch USA

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

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

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

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

47. Magazine advertising sales www.ppamarketing.net

48. ‘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)

49. Magazine advertising increased sales by an additional 11.6% Source: ‘Sales Uncovered, TNS for PPA, UK

50. Return on investment Medium term (12 months) £1 £2.77 Source: ‘Sales Uncovered, TNS for PPA, UK

51. Magazine advertising creates sales: b) Magazines used with TV

52. Magazine achievement similar to TV’s… Source: ‘Sales Uncovered, TNS for PPA, UK

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

54. Budget implications Expenditure Effectiveness Magazines TV

55. Budget implications Expenditure Effectiveness Magazines TV

56. 7. Magazines are a vital ingredient in b2b marketing campaigns

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

58. Usage of traditional b2b media Source: Forrester Research/ABM

59. Usage of digital b2b media Source: Forrester Research/ABM

60. 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”

61. 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

62. 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

63. Two reports www.ppa.ie

64. Further sources www.fipp.com www.consterdine.com

65. Advertising in a recession

66. 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

67. 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

68. Budget-cutting options compared: Typical brand (modelled) Source: Data2Decisions

69. 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

70. 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

71. 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

72. 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

73. 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

74. www.ppa.ie

75. These slides available for use