1. MAGAZINE MEDIA & ROI OCTOBER 2015

2. STUDIES REFERENCED Magnify 2011 – PPA/GfK A large scale study which investigates how consumers read magazine content. It covers off both advertising and editorial content and tracks what consumers do following exposure. 18,000+ magazine readers interviewed 3,100+ ads 400+ editorial pieces 96 magazine brands involved Receptiveness Brand Impact/ROI Synergies Categories Magonomics 2012 – PPA/Mindshare/Ohal A brand impact and econometric study which pulls data from various sources to explore how magazines impact brand building and how to measure magazine ROI. 77 FMCG Campaigns for econometric modelling 136 Brands explored in BrandZ 400 consumers interviewed per product category MAPP (Australia) 2013/14 – MPA/Nielsen An econometric study and planning tool which helps advertisers more accurately measure and plan campaigns using readership accumulation models. It also investigates the synergy effect and the contribution that magazines make to boosting ROI across different channels. 3 Modelled brands Meredith Sales Guarantee (US) 2009 – 2014 – Meredith Corporation/Nielsen Catalina The Meredith Sales Guarantee is an effectiveness programme which has measured the impact of 53 individual campaigns. By tracking sales behaviour of exposed readers, it measures the uplift in product spend and calculates the impact on incremental sales to produce an ROI figure for each campaign.

3. RECEPTIVITY

4. A WELCOMING ADVERTISING ENVIRONMENT Source: PPA Magnify 2011 NOTED SCORES NET ACTION SCORES 54% 63% 66% Advertising Editorial Readers are as likely to take notice of an ad as a piece of editorial. They are also nearly as likely to take an action as a result of exposure

5. ADS GENERATE AS MANY ACTIONS AS EDITORIAL Source: PPA Magnify 2011 Purchase actions EngagementReference actions Advertising FAMILIARITYRESEARCH CONSIDERATION & PURCHASE Impact actions BRAND ACTIVISM Read most Read Any Read Most Gathered more info Visited brand website Cut out ad Used for ideas Cut out ed Visited brand website Have a more favourable opinion Recommended the product Discussed/ referred Passed to someone Considering purchase Purchased Considering purchase Purchased Editorial

6. BRAND BUILDING

7. THE BRAND PYRAMID Advantage Relevance Presence Performance Bonding The brand pyramid explores the relationship that consumers have with a brand across 5 different metrics Presence tracks how well known a brand is Relevance reflects whether a brand is seen as suiting a consumer’s needs Performance shows whether a brand meets the consumer’s performance expectations Advantage shows whether a brand is perceived as better than others in the same product category Bonding is the most important precursor to sales, and shows whether a brand is uniquely favoured or considered as the best Source: Millward Brown BrandZ, Nielsen 2012

8. BONDING IS ESSENTIAL FOR SALES SUCCESS High share of wallet Low share of wallet Millward Brown research has established that there is a strong correlation between bonding scores and share of wallet. Consumers will allocate 33% of their spend in a category to bonded brands Advantage Relevance Presence Performance Bonding Source: Millward Brown BrandZ, Nielsen 2012

9. MAGAZINES ARE A STRONG DRIVER OF BONDING Campaign value: £2m - £10m +72% +25% Campaign value: <£2m Using Nielsen spend data and BrandZ we established that brands which are heavy investors in magazines enjoy much higher bonding scores in comparison to brands that spend less than average in magazines BONDING SCORES Source: Millward Brown BrandZ, Nielsen 2012

10. OLAY USED MAGAZINES TO IMPROVE BONDING 8 2008 2009 2010 9 11 Olay invested more than £15m in magazines between 2008 and 2010, and during that period have managed to increase their bonding scores by 38% BONDING SCORES Source: Millward Brown BrandZ, Nielsen 2012

11. AUSSIE DOUBLED BONDING SCORES WITH MAGAZINES 4 2007 2009 2011 5 8 P&G’s Aussie brand is a great example of a brand build on the back of magazines. They’ve spent 80% of their budget on magazines, doubling their bonding scores over the period shown BONDING SCORES Source: Millward Brown BrandZ, Nielsen 2012

12. ROI

13. ECONOMETRICS ISOLATES THE MEDIA EFFECT ATL Media’s contribution to sales 10% ATL media is estimated to contribute an average of 10% of total sales uplift for FMCG brands Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal

14. 3 MEASUREMENT CHALLENGES MAGAZINES FACE Bundled with newsbrands Using the wrong media inputs Low weighting Magazines and newsbrands should be measured separately as they engage and deliver audiences differently It takes up to 4 weeks for monthly magazines to deliver 80% of their audience, accumulation data should be used to account for this Magazines should have a minimum spend of 5% of budget or £500k in order to be accurately measured in modelling Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal

15. ACCUMULATION DATA IS ESSENTIAL FOR ACCURACY GRPs TIME (WEEKS) Week 1 (On sale week ) Using accumulation data which accurately reflects magazine audiences delivery improves stated ROI by 19% on average +19% ROI Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal Mismatch between when GRPs are expected and delivered

16. Magazines TV Online Newspapers Radio OOH 167 150 137 103 97 MAGAZINES SHOW THE HIGHEST ROI 60 ROI MEDIAN INDEX PER CHANNEL 60 Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal Across 77 FMCG campaigns Mindshare found that Magazines delivered the highest ROI of all media. But why to magazines perform so well? The answer is found in looking at diminishing return curves

17. DIMINISHING RETURN CURVES Maximum potential sales SALES POTENTIAL SPEND 100k Channels have an upper limit in sales potential. When a channel’s investment nears this limit, returns start to diminish, and reallocating budget to a different channel is more effective. This example shows that a 100k taken from Channel A and reinvested in channel B, would generate twice the amount of sales 100k Channel B Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal

18. UNDERINVESTMENT IN MAGAZINES SALES POTENTIAL 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 OutdoorTV (sat)MagazinesTV (ter) Initial investment in channels always generates the highest ROI, because it adds audience quickly with low frequency. Across the 5 test campaigns magazines were consistently underfunded, and only used for a fraction of their potential, delivering a high ROI as a result Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal

19. OPTIMISING BUDGETS +10% +30% +20% MAGAZINE BUDGET INCREASE PRODUCT SALES INCREASE +1% +2.6% +1.9% In the 5 test studies, modelling showed that increasing magazine budgets could boost overall sales by as much as 2.6% (bearing in mind that ATL media drives 10% of sales overall) Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal

20. ADDRESSING UNDERINVESTMENT Source: PPA Magonomics 2012, Econometric Modelling by Mindshare & Ohal Magazines TV Online Newspapers Radio OOH 167 150 137 103 97 ROI MEDIAN INDEX PER CHANNEL 60 x2 Modelling of the 5 test campaigns showed that magazine budges could at least be doubled before its ROI would drop to the same level as TV

21. MEDIA SYNERGY

22. MAGAZINES DRIVE TV SYNERGY Source: MPA & Nielsen MAPP % ROI IMPROVEMENT TO TV WITH SYNERGY When magazines and TV are layered together, TV’s ROI improves by 18%

23. CATEGORIES

24. ADVERTISING IN MAGAZINES INCREASES SALES Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit PERCENTAGE SALES UPLIFT BY CATEGORY Magazines deliver an average 11% sales uplift across all categories

25. ADVERTISING IN MAGAZINE MEDIA INCREASES SALES ROI BY PRODUCT CATEGORY Magazines deliver an average £7.45 ROI across all categories Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit

26. CATEGORY PERFORMANCE ROISales Lift FOOD £3.05 £1.46 £1.88 £7.23 £4 £16.36 £5.43 20% 22% 7% 2% 1% 3% 8% Baking Supplier Canned Vegetables Cheese Diary Food Products Soup (Iconic brand) £12.07 £1.16 £5.18 £1.86 5% 6% 1% 9% Juice Juice (2) Soup (2) Speciality Soup Category Ave. ROISales Lift Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit

27. CATEGORY PERFORMANCE ROISales Lift BEAUTY £7.21 £2.32 £8.58 £3.70 £3.19 £10.01 £7.49 £6.07 32% 16% 5% 36% 9% 5% 13% 17% Anti-aging cream Bar soap Body wash Lipstick Lotion Moisturizer Sunscreen Category Ave. ROISales Lift Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit

28. CATEGORY PERFORMANCE ROISales Lift HH Goods £1.66 £2.35 £9.78 £4.59 £8.43 £4.04 £4.96 £5.81 5% 3% 5% 4% 10% 4% 6% 7% Air Freshener Liquid Soap Toilet paper Category Ave. Feminine Care Mouthwash Decongestant Category Ave. ROISales Lift Healthcare Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit

29. CATEGORY PERFORMANCE Source: Meredith Corporation/Nielsen Catalina Solutions : 2009 - 2014 Original ROI stated in US Dollars – Expressed in sterling using original ratio of return per investment unit ROISales Lift Petcare £6.76 £13.44 £10.10 £18.59 £4.04 7% 8% 7% 4% Petcare 1 Petcare 2 Category Ave. Home Retailer Category Ave. ROISales Lift HH Retail