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Newspapers Drive Sales

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Research shows that newspapers drive immediate 7% sales uplift

Research shows that newspapers drive immediate 7% sales uplift

Published in: Business, News & Politics

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  • People are responsive to newspaper advertising. The immediacy and high coverage of the medium means rapid sales success.  dunnhumby analysed the purchases of regular Tesco shoppers buying newspapers in Tesco containing the relevant ads and compared purchasing during and post campaign with a Control group who did not buy the newspapers (in Tesco) but were otherwise matched on category buying, brand buying pre-advertising, overall spending, TV region, lifestage demographics and lifestyle. The results are conservative, as Tesco accounts for only 9% of newspaper purchases so a proportion of people in the Control group may have seen and responded to the ads in newspapers they bought elsewhere. The newspaper sales are also in addition to any increases due to the TV, promotions etc.There was a minimum average 7% immediate sales increase due solely to newspaper advertising during the campaign, across the brands measured by dunnhumby in 2005-2012.
  • 4 years of studies have demonstrated that newspaper ad campaigns deliver sustained sales increases. The Post campaign analysis focuses on the 12 weeks post campaign end date. Again, these sales uplifts are conservative estimates and exclude increases due to TV and promotions.
  • 4 years of studies have demonstrated that newspaper ad campaigns deliver sustained sales increases. The Post campaign analysis focuses on the 12 weeks post campaign end date. Again, these sales uplifts are conservative estimates and exclude increases due to TV and promotions.
  • The econometric model demonstrated a clear sales impact with national newspapers responsible for a 10% sales uplift for Bakers Meaty Meals over and above the natural level of expected sales for the brand.In addition the model quantified the halo effect the newspaper campaign had on the overall Bakers brand. The newspapers increased total Bakers brand sales by 7% generating an increased revenue of £1m.
  • Transcript

    • 1. Newspapers drive sales 1 Summary of effectiveness test findings
    • 2. 2 Newsbrands drive sales • Advertisers recognise the potency of newspapers to drive sales – Retailers use the medium as a shop window on a daily basis • Proven sales effect every time – 23 sales uplifts across 23 Newsworks effectiveness case studies – Independent sales analysis from dunnhumby & TNS Worldpanel – Immediate 7% sales uplift – Newspapers deliver sustained sales uplift post campaign – Higher frequency delivers higher sales uplift – Newspapers drive penetration • Source: dunnhumby – Newspapers stronger than TV at stimulating full price sales (rather than promoted) • Source: TNS Worldpanel
    • 3. 3 Newspapers drive sales - major brands tested
    • 4. “Fundamentally (and importantly!) the ads helped shift boxes of cereal…” Phil Toms Product Group Manager Shredded Wheat. “…there was clear evidence that newspapers delivered incremental sales on top of TV and promotions.”Jon Goldstone Vice President of Marketing Walkers (now Premier Foods) “Results across two years show that newspapers …deliver a significant return on advertising investment.”Sam Mitchell Marketing Manager Philadelphia. “… the newspaper campaign boosted sales, bringing in new trialists during the campaign and for a short period afterwards .”Karine Chik Marketing Manager Dairylea Lunchables
    • 5. 5 The proof - dunnhumby
    • 6. 6 Adding newspapers produces 7.0% immediate sales increase Source: dunnhumby based on 18 brands 7.0 1.7 3.9 3.9 4.2 4.7 5.1 6.9 8.3 10.5 20.5 2.3 2.6 11.5 3.7 8.8 12.8 3.0 11.0
    • 7. 7 Newspapers sustain sales increases Source: dunnhumby based on 13 brands 5.2 1.9 3.0 3.5 3.9 5.1 7.6 8.4 19.4 1.2 4.1 5.8 2.9 3.7 1.9 % sales increase driven by newspapers - 12 weeks post campaign
    • 8. 8 6.9% Brand penetration increase Source: dunnhumby, based on 14 brands * Hovis only measured 6 weeks post campaign 6.9 1.3 4.7 6.1 6.1 6.7 6.8 10.0 16.2 17.0 2.3 2.7 12 5.1
    • 9. 9 11.7% higher sales at 3OTS during campaign Source: dunnhumby based on 11 brands 11.7 5.7 6.9 8.6 11.0 2.5 16.1 6.3 8.3 27.0 17.0 19.2
    • 10. 10 “dunnhumby’s loyalty programme data has again provided unique insights into the effectiveness of newspaper advertising. In particular we have seen that newspaper campaigns increase sales by driving new customers into the brand, and that multiple exposures lead to stronger effects.” Martin Hayward Director of Consumer Strategy and Futures dunnhumby
    • 11. 11 The proof – TNS/Kantar Worldpanel
    • 12. Kraft Philadelphia: TV + Newspapers drives sales uplift 63 x full page 370 GRPs 30 x half page 219 GRPs 24 x half page 239 TVRs 281 TVRs 30,20,10 secs. 305 TVRs 30,10 secs. 427 TVRs 30,10 secs. +26% +18.5% +16% Apr – May 2006 Mar – Apr 2007 Aug – Sep 2007 100 97 £ TV + NP uplift indexed vs 2006 112 Newspaper delivery TV delivery Source: TNS Worldpanel; 28 day sales effect
    • 13. Newspaper advertising influences up to 92% of sales uplift Incremental Philadelphia sales due to advertising, by media exposure 28 day sales effect 75% 48% 92% Apr/May 2006 14% 61% 25% 35% 13% 52% 43% 49% 8% Mar/Apr 2007 Aug/Sep 2007 TV + NP NP Solus TV Solus Source: TNS Worldpanel
    • 14. Kraft Philadelphia: Newspapers solus drive 43% of extra sales 43 35 14 NP solus share of total incremental sales 28 day sales effect Apr/May 2006 Mar/Apr 2007 Aug/Sep 2007 NP Spend Index vs 2006 Source: TNS Worldpanell
    • 15. Kraft Philadelphia: Newspapers deliver full price sales Incremental Sales - % normal price vs on promotion 68 4 66 38 26 32 96 34 62 74 100 Mar/Apr 2006 Apr/May 2007 Aug/Sep 2007 Mar/Apr 2007 Apr/May 2007 Aug/Sep 2007 Newspaper solus TV solus Normal Price On promotion (NP) Normal Price On promotion (TV) Source: TNS Worldpanel
    • 16. 16 “The ability to segment the 25,000-strong TNS Worldpanel by media use, allows clients to evaluate, in detail, how much each part of their media plan (singly or in combination) is contributing directly to sales. This means that the NMA is able to dig deeply into the impact that newspapers have on the share and value of brand sales and, importantly, is able to demonstrate newspaper ROI.”Simon Skeldon Director - Worldpanel UK TNS
    • 17. 17 The proof – client supplied data
    • 18. 18 Meaty sales with newspapers  An econometric analysis was undertaken for Bakers Meaty Meals by DDB Matrix on behalf of Nestlé  Newspapers delivered 10% sales uplift for the variant  Plus a further £1million halo effect on total Bakers sales Source: DDB Matrix 2005
    • 19. 19 Newspapers delivered a 10% sales uplift 160 120 80 20 0 MeatyMealsVolumeSales PressGPRs 40 60 100 140 180 200 Newspapers Contribution ‘Natural Growth’ +10 % for variant £1m halo effect for total Bakers Source: DDB Matrix 2005
    • 20. 20 Newspapers improved Andrex bottom line  Andrex Moistened sales rose 26% in two months as a result of adding newspapers to in-store promotions  Simultaneously 34% more households bought the brand as newspapers created the re-appraisal needed to attract new users Source: Kimberly Clark 2005