WHY CONTENT MARKETING BUILDS TRUST
The Power of Customer Publishing




Brussels
March 2010
The APA :
  “Customer publishing is a rapidly growing industry where brands are using
 editorial content, irrespective of ...
The industry:

• Fourth biggest media – spend £904m*

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

• Agency not med...
An overview of the UK market:


                              92 launches
         16% growth
                            ...
Key reasons for growth:

• The changing media marketing place:
     • 1,000‟s of ways to reach consumers
     • Difficult ...
Effectiveness - engagement is key:
  “Long copy - and prolonged leisurely engagement - are often
 out of fashion in an adv...
Proving the power of customer magazines:
APA/Millward Brown Advantage Study:
   • 21,000 consumer interviews

Key findings...
Engagement = loyalty:
Customer magazines drive response:
   • On average 44% of consumers who receive a customer magazine ...
Retail titles:                                          Level of active response
                                         ...
Finance titles:                          Level of active response
                                                    %
  ...
Level of active response
Automotive titles:                                          %
                              Study...
The power of posted magazines in driving loyalty:
• Receiving a magazine through the post does have a positive impact on
e...
Posted Magazines Research results: Online Activity”
          “Posted Magazines Drive

• Over a third (39%) of consumers t...
“Posted Magazines to Engage Youngest Audience”

• Posted customer magazines engage the 18 – 24 year olds more than any oth...
asos.com – the history
 asos.com launched in 2000.

 Awarded Retail Week Rising Star 2005.

 Drapers Etailer of the Yea...
Communication

  Newsletter: generated 8% of company sales.

  Analytics: Refining processes to maximise conversion.

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

  On average visitors return 2.5 times a month.

  41% of “best ...
asos.com magazine – the history
  Launched in September 2006 as a 3 month trial.

  Objective to showcase product, drive...
What they think of asos magazine

  “I thought, oh god it’s going to try to make me buy things, but I actually really
    ...
asos.com magazine – the original brief

                               Driving traffic/ sales/
                           ...
asos.com magazine – our findings

   Active customers‟ response rate was up 8.5% on dormant and 2.3% on lapsed
    custom...
asos.com magazine – the brief redefined


                       Driving traffic/ sales/
                       conversion...
asos.com magazine – today

   Asos magazine glossy monthly fashion magazine
    with more readers than leading titles Com...
asos.com magazine – supplement activity

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

...
asos.com magazine – launched standalone menswear issue


    Due to the success of the women‟s magazine menswear titled l...
“Editorialised content is now a hygiene factor in the
building of relationships between brands and consumers.
However the ...
And what about
BELGIUM ?

      In association with De Post/La Poste
Belgian cases
 Presented by CUSTO




         In association with De Post/La Poste
CUSTO          The Belgian Federation of Customer Media professionals


CUSTO

  Set and defend high standards for real ...
CUSTO            The members

 Agencies with CUSTO Quality Label
       AA DOCK‟S Customer Media

       DECOM

      ...
Belgian cases




            In association with De Post/La Poste
In association with De Post/La Poste
colora is a shop concept of
Boss Paints, with almost 40
branches




                              In association with De ...
colora distinguishes itself from its
competitors by the personal
advice it gives on technical
aspects and colors




     ...
colora-magazine is distributed by
the Belgian Post 3 times a year
with a print run of 300 000 copies




               In...
colora-magazine creates and maintains a strong
        relationship between brand and customers




Main aim of the magazi...
colora-magazine creates and maintains a strong
        relationship between brand and customers




Most importantly: it i...
colora-magazine steps away
from pure selling




                             In association with De Post/La Poste
       ...
colora-magazine steps away
from pure selling




                             In association with De Post/La Poste
       ...
tries to make people dream and shows
colora as someone who can make those
dreams come true




                           ...
How the magazine creates a bond
(Custometer, 2009)



                     90% of the respondents does “something”
       ...
How the magazine creates a bond
(Custometer, 2009)
Some other results



                     For 90% of the readers the m...
AND…
 it‟s a very effective tool to boost sales




*turnover is confidential



                                         ...
If you know a magazine that…


1   perfectly reflects the brand image;


2   demonstrates the know-how of its employees;

...
then you’ve read A.S.Magazine.

                Inspiring travel articles &
                product information

         ...
Engaging the reader = building trust
              Custometer survey results for A.S.Magazine


Reading time: a new bench...
Engaging the reader = building trust
        The Explore More loyalty programme takes
   A.S.Magazine’s editorial approach...
Building trust stimulates sales

 A.S.Magazine stimulates sales
   79.2 % of readers “was inspired to buy products”

 Ex...
Conclusion
A.S.Adventure found its best clients
      and is talking to them.




                            In associati...
TRUST SUPERIOR
QUALITY IN CUSTOMER
       MEDIA


        In association with De Post/La Poste
Why Content Marketing Builds Trust
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Why Content Marketing Builds Trust

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Julia Hutchinson – COO – APA, the Association of Publishing Agencies UK - presenteerde deze case tijdens de Marketing Day 2010. De presentatie werd geïllustreerd met twee succesvolle Belgische magazines: AS Adventure en Colora.

Wanneer een merk aan de hand van redactionele inhoud communiceert, slaagt het erin om complexe waarden en boodschappen over te brengen en oprecht en daadkrachtig met de consument in dialoog te treden.
Editorialised branded content has flourished in recent years and is set to continue to enjoy this success, with recent research estimating that the industry will continue to outperform almost all other disciplines. This success lies in the opportunity it provides for brands to communicate complex values and messages through content which genuinely and powerfully engages the consumer. A raft of research projects show that this success is for a large part founded in the medium’s ability to build trusted relationships.
The APA is the trade association for producers of editorialised branded content in the UK, with members ranging from customer publishers to pureplay digital agencies. Julia Hutchison, COO, APA will discuss the rise of cross-media editorialised branded content, citing specific case studies and indepth research to illustrate how UK and Belgian brands are using the medium to engage consumersmore deeply, for longer.

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Why Content Marketing Builds Trust

  1. 1. WHY CONTENT MARKETING BUILDS TRUST The Power of Customer Publishing Brussels March 2010
  2. 2. 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: Research Persuade: ASK – new business service Proclaim: Events – training and awards Protect: Environment/ lobbying
  3. 3. 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
  4. 4. An overview of the UK market: 92 launches 16% growth 323,000 average circulation £904m spend 33/100 circulation titles 45% of client work is cross media 70% posted 20% income from 3rd party advertising In association with De Post/La Poste
  5. 5. 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
  6. 6. Effectiveness - engagement is key: “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 Sutherland Vice-Chairman, Ogilvy Group UK
  7. 7. 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
  8. 8. 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
  9. 9. Retail titles: Level of active response % Study Average 44 Retail Average 78 Best performer Tried a recipe 63 Visited store/branch 62 Bought a new product/used a new service 51 Used a voucher 47 Showed the magazine to a friend or relative 29 Entered a competition 25 Recommended the store to a friend 21 Visited the website 21 Enquired about a specific product/service 16 Visited a department you would not usually shop in 15 Carried out an idea 9 Used a service you would not usually use 7
  10. 10. Finance titles: Level of active response % Study Average 44 Financial sector average 23 Called the company for more info 15 Entered a competition 10 Enquired about a specific product/service 9 Visited a website 8 Visited a store/branch 6 Bought a new product/used new service 5 Added to an existing product owned 4 Used a voucher 2 Responded to an offer 1 Base: Magazine sample (915)
  11. 11. Level of active response Automotive titles: % Study Average 44 Automotive sector average 30 Discussed with friend/colleague 23 Visited store/branch 14 Visited the website 13 Enquired about a specific product/service 13 Called/visited dealership 12 Given copy to interested friend 12 Called the company for more info 10 Bought a new product/used new service 8 Entered a competition 7 Requested a test drive 7 Bought a winter service 5 Requested a brochure 4 Responded to offer 2 Used a voucher 1 Contacted the featured insurance company 1 Base: Magazine sample (1529)
  12. 12. 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. .
  13. 13. Posted Magazines Research results: Online Activity” “Posted Magazines Drive • 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
  14. 14. “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
  15. 15. 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.
  16. 16. 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.
  17. 17. 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
  18. 18. 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.
  19. 19. 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
  20. 20. asos.com magazine – the original brief Driving traffic/ sales/ conversion Driving traffic/sales/ conversion Reactivation Awareness Loyalty and Frequency Loyalty and Awareness Loyalty and Reactivation Awareness Frequency Frequency Lapsed/ New Active Dormant  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.
  21. 21. 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.
  22. 22. asos.com magazine – the brief redefined Driving traffic/ sales/ conversion Driving traffic/sales/ conversion Reactivation Awareness Loyalty and Frequency Loyalty and Awareness Loyalty and Reactivation Awareness Frequency Frequency Lapsed/ New Active Dormant
  23. 23. 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.
  24. 24. 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.
  25. 25. 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.
  26. 26. “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 Ward Managing Partner Partners Andrews Aldridge
  27. 27. And what about BELGIUM ? In association with De Post/La Poste
  28. 28. Belgian cases Presented by CUSTO In association with De Post/La Poste
  29. 29. CUSTO The Belgian Federation of Customer Media professionals CUSTO Set and defend high standards for real professional customer publishing = CUSTO Quality Label Promote customer media by unlocking expertise and best practices Providing efficiency benchmarks and ROI proof through neutral and independent research = CUSTO-meter www.custo.be In association with De Post/La Poste
  30. 30. CUSTO The members  Agencies with CUSTO Quality Label  AA DOCK‟S Customer Media  DECOM  HEAD OFFICE  HEADLINE Publishing Agency  HET SALON  JANSEN & JANSSEN  MEDIAPARTNERS  PROPAGANDA  ROULARTA Custom Media  SQILLS  VIVIO In association with De Post/La Poste
  31. 31. Belgian cases In association with De Post/La Poste
  32. 32. In association with De Post/La Poste
  33. 33. colora is a shop concept of Boss Paints, with almost 40 branches In association with De Post/La Poste
  34. 34. colora distinguishes itself from its competitors by the personal advice it gives on technical aspects and colors In association with De Post/La Poste
  35. 35. colora-magazine is distributed by the Belgian Post 3 times a year with a print run of 300 000 copies In association with De Post/La Poste
  36. 36. colora-magazine creates and maintains a strong relationship between brand and customers Main aim of the magazine is to inspire, help and incite people to (re)decorate their homes In association with De Post/La Poste In association with De Post/La Poste
  37. 37. colora-magazine creates and maintains a strong relationship between brand and customers Most importantly: it is perceived as a non-commercial medium, where the company translates marketing objectives into accessible content. In association with De Post/La Poste
  38. 38. colora-magazine steps away from pure selling In association with De Post/La Poste In association with De Post/La Poste
  39. 39. colora-magazine steps away from pure selling In association with De Post/La Poste In association with De Post/La Poste
  40. 40. tries to make people dream and shows colora as someone who can make those dreams come true In association with De Post/La Poste In association with De Post/La Poste
  41. 41. How the magazine creates a bond (Custometer, 2009) 90% of the respondents does “something” with the information: 48% of the readers saves the magazine or part of it 43% of the readers gives the magazine or part of it to someone else In association with De Post/La Poste
  42. 42. How the magazine creates a bond (Custometer, 2009) Some other results For 90% of the readers the magazine incites them to paint For 96% of the readers colora-magazine gives them new ideas 88% looks forward to reading the next edition In association with De Post/La Poste
  43. 43. AND… it‟s a very effective tool to boost sales *turnover is confidential In association with De Post/La Poste
  44. 44. If you know a magazine that… 1 perfectly reflects the brand image; 2 demonstrates the know-how of its employees; 3 became the cornerstone of an extensive loyalty programme; and thus is a real TRUST builder; In association with De Post/La Poste
  45. 45. then you’ve read A.S.Magazine. Inspiring travel articles & product information 150.000 copies in-store distribution 4 issues / year In association with De Post/La Poste
  46. 46. Engaging the reader = building trust Custometer survey results for A.S.Magazine Reading time: a new benchmark A.S.Magazine: 39min14sec >< APA average: 25min Overall rating: high 72,4% gave the magazine an 8+ score A.S.Magazine proves that A.S.Adventure… … is worth my trust > 80.1 % … offers quality products and services > 84 % … communicates openly > 82,5 % In association with De Post/La Poste
  47. 47. Engaging the reader = building trust The Explore More loyalty programme takes A.S.Magazine’s editorial approach one step further and sends to A.S.Adventure customers personalized and relevant content by e-mail Explore More e-letters opening rates of 35 % to 55 % Explore More triggermails opening rates of 75 % to 99 % In association with De Post/La Poste
  48. 48. Building trust stimulates sales  A.S.Magazine stimulates sales 79.2 % of readers “was inspired to buy products”  Explore More members are A.S.Adventure’s best clients top 30 % clients account for more than 70 % of Explore More turnover  Explore More Members are bigger spenders Average basket: +/- 100 € (non members: 70 €) In association with De Post/La Poste
  49. 49. Conclusion A.S.Adventure found its best clients and is talking to them. In association with De Post/La Poste
  50. 50. TRUST SUPERIOR QUALITY IN CUSTOMER MEDIA In association with De Post/La Poste

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