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Magonomics Presentation from James Papworth, presented at #PPAScotland's quarterly members meeting on 12 June.

Magonomics Presentation from James Papworth, presented at #PPAScotland's quarterly members meeting on 12 June.

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Magonomics Presentation Magonomics Presentation Presentation Transcript

  • Magazines &Brand MetricsThe impact ofinvestmentEconometrics& ROI
  • Magazines &the CustomerJourney -‘MAGNIFY’Magazines &Brand MetricsThe impact ofinvestmentEconometrics& ROI
  • Understanding the consumer journeyAWARENESSRESEARCH & FAMILIARITYOPINION & SHORT LISTCONSIDERATIONPURCHASEPRE-AWARENESSPURCHASEINTENTTRIGGER
  • ADVERTISING EDITORIALADVERTISING EDITORIALSOURCE: MAGNIFY1Magazine Influence
  • Purchase actionsHow magazines drive consumer behaviourEngagement Reference actionsADVERTISINGEDITORIALFAMILIARITY RESEARCH CONSIDERATION& PURCHASEImpact actionsBRAND ACTIVISMSOURCE: MAGNIFYRead mostRead AnyRead AnyRead MostGatheredmore infoVisited brandwebsiteCut out adUsed for ideasGatheredmore infoCut out edVisited brandwebsiteHave a morefavourableopinionRecommendedthe productDiscussed/referredPassedto someoneConsideringpurchasePurchasedConsideringpurchasePurchased1
  • Magazines &Brand MetricsThe impact ofinvestmentEconometrics& ROI234
  • What is ROI?2
  • BrandPyramidBrand LifestageTypologyBrandVoltageMINDSHARE/BRANDZBrandPersonality2
  • MINDSHARE/BRANDZ2
  • 7MINDSHARE/BRANDZ279887355
  • Magazines & Brand MetricsMINDSHARE/BRANDZ2
  • BrandZ Analysis136 brandsa COMPREHENSIVE UNDERSTANDINGOF MEDIA vs BONDING SCOREMINDSHARE/BRANDZ2
  • <£2mCampaign ValueMagazines & Bonding£2m – £10mCampaign Value25% 72%BrandZ: 136 Brands using magazines*Based on average share of spend of 7% in 2011: Source WARC/ AA2Magazine = ave. 7% of spend
  • 5876564585977574196276594711BrandZ: Face care, *Source: Nielsen AdDynamixMagazines & Brand Metrics 2
  • 243123184273426205344033248BrandZ: Haircare, *Source: Nielsen AdDynamixMagazines & Brand Metrics 2
  • How do magazinesperform ineconometrics?3
  • BasePrice / PromoIn StoreDMMediaComp. Price / PromoComp. LaunchesComp. MediaSeasonalitySalesMeasured level of base salesIsolating the media effectTimeSales
  • Isolating the media effectSOURCE: MINDSHARE/OHAL3
  • The ROI challenges for magazines3
  • The challenges for magazines81%GRPsTime (weeks)Week 1(On sale week)Incorrectly applied print models assumethe total audience is reached during the onsale weekIn four weeksSOURCE: NRS ACCUMULATION STUDY3
  • Analysis of 5FMCG campaigns…Without accumulationMagazine ROI is underestimatedOn average,accumulationdata showsan ROI upliftfor mags of..…19%SOURCE: MINDSHARE INPUT ANALYSIS OF 5 FMGC CAMPAIGNS - 20123Brand BBrand CBrand DBrand EBrand A
  • So how do magazines really stack up?1506013710399ROIMedianIndexperchannelSOURCE: MINDSHARE/OHAL META ANALYSIS OF 77 CAMPAIGNSINDEX OF MEDIAN PERFORMANCE OF EACH CAMPAIGN
  • 14
  • Use in channel selectionOptimising budget allocationMaximum potential salesSalespotentialSpend100kThe same investment can yield much higherreturns dependent on chosen media.In this illustration £100k invested in the yellowmedia can yield twice the sales of blue media100kYellowsales4
  • Use in channel selection% of maximumsales on themedia channel100%Weekly Media Spend90%80%70%60%50%40%30%20%10%0%£0 £500,000 £1,000,000 £1,500,000 £2,000,000Outdoor TV1 Magazines TV 2In this case,magazines areby far the mostunderinvestedmedium…… this appearsto be consistentacross mostcampaignsanalysedDiminishing Return Curve Analysis – Campaign A4SOURCE: MINDSHARE/OHAL
  • Budget ReallocationSOURCE: MINDSHARE DIMINISHING RETURN CURVE ANALYSIS OF 5 FMGC CAMPAIGNS - 2012The gains made by reallocating budget to magazines was fargreater than what was lost from the host medium4Analysis of 5FMCG campaigns…
  • By how much canmagazine budgetsbe increasedbefore it impactson ROI?4
  • The bottom line… budgets have to beat least doubledbefore magazine ROIreduced to the samelevel as TVSOURCE: MINDSHARE DIMINISHING RETURN CURVE ANALYSIS OF 5 FMGC CAMPAIGNS - 20124Analysis of 5FMCG campaigns…Brand ABrand BBrand CBrand DBrand EWhat changes in magazine investment are required to match TV ROI?
  • ROI in SummaryMagazines get consumerscloser to brands.Brands who are heavymagazine users enjoyhigher bonding scoresIt is easy tounderestimatemagazine ROIMagazines ROI isto be higher than allother media channelsTo address the levelof underinvestment inmagazines, budgetsneed to be morethan doubledbefore ROI startsdropping off
  • Magazines &Brand MetricsThe impact ofinvestmentEconometrics& ROI