MAGAZINES
the medium of action

   a comprehensive guide and handbook 2009/10 www.magazine.org
Top Reasons to Advertise in Magazines

Magazines and magazine ads garner the most attention:
BIGresearch studies show that...
Top Reasons to Advertise in Magazines

Magazine advertising is relevant and targeted: Consumers consider
magazine advertis...
Top Reasons to Advertise in Magazines

Magazines improve advertising ROI: Based on a recent analysis of cross-media
accoun...
CONTENTS                                 1 Top Reasons to Advertise in Magazines

                                        ...
31   Consumers Enjoy Magazine Ads More Than Other Media             60   Luxury Goods: Buyers More Likely to Use Magazines...
Photography courtesy of Getty Images

INSIDE FRONT COVER

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AA033268/Photodisc/H...
Readership Trends                                                                                             7
Magazine R...
Number of Magazine Titles                                                                                           8
A Ma...
Number of Magazines with Websites                                                                                    9
Mag...
Magazine Website Traffic                                                                                                  ...
New Magazine Launches                                                                                                     ...
Percent of Total Editorial Pages by Subject                                                                        12
Maga...
Editorial/Advertising Ratios                                                                      13
Editorial and Adverti...
Circulation Mix                                                                                                           ...
Number of Magazine Titles by Circulation Size                                                                             ...
Average Single Copy/Subscription Price                                                                         16
Consumer...
Circulation Revenue                                                                                        17
Bulk of Paid...
Location of Single Copy Purchases                                                     18
Consumers Rely on Multiple Outlet...
Magazines at Retail                                                                                                       ...
Magazine Revenue Mix                                                                                 20
Advertising and Ci...
Public Place Readership                                                                                               21
P...
Magazine Ad Pages and Revenue Trend                                                                        22
Magazine Adv...
Third

Forth                                       28%


        Magazine Spending by Quarter                             ...
Advertising Share of Market: All Media                                                                24
Magazines’Share o...
Magazine Advertising Categories                                                                                         25...
Top 50 Magazine Advertisers                                                                                            26
...
Readership by Advertising Unit Type                                                                                       ...
Readership by Advertising Unit Size                                                                                       ...
In an Age of Interruption, Magazines Engage                                                                               ...
In an Age of Interruption, Magazines Engage                                                                               ...
In an Age of Interruption, Magazines Engage                                                                               ...
In an Age of Interruption, Magazines Engage                                                                               ...
In an Age of Interruption, Magazines Engage                                                                               ...
In an Age of Interruption, Magazines Engage                                                                               ...
In an Age of Interruption, Magazines Engage                                                      35
Consumers Trust Magazi...
Accountability: Magazines Get Results                                                                                     ...
Accountability: Magazines Get Results                                                                                     ...
Accountability: Magazines Get Results                                                                             38
Reade...
Accountability: Magazines Get Results                                                                                     ...
Accountability: Magazines Get Results                                                                                     ...
Accountability: Magazines Get Results                                                                                     ...
Accountability: Magazines Get Results                                                                                     ...
Accountability: Magazines Get Results                                                                                 43
M...
Accountability: Magazines Get Results                                                                                     ...
Accountability: Magazines Get Results                                                                                     ...
Accountability: Magazines Get Results                                                          46
Magazine Readers Are Sup...
Accountability: Magazines Get Results                                                                                     ...
Accountability: Magazines Get Results                                                                                48
Ma...
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
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Top Reasons to Advertise in Magazines
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Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
Top Reasons to Advertise in Magazines
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Top Reasons to Advertise in Magazines

  1. 1. MAGAZINES the medium of action a comprehensive guide and handbook 2009/10 www.magazine.org
  2. 2. Top Reasons to Advertise in Magazines Magazines and magazine ads garner the most attention: BIGresearch studies show that when consumers read magazines they are much less likely to engage with other media or to take part in non-media activities compared to the users of TV, radio or the internet. According to research from JackMyers, when consumers were asked to rate media based on how likely they are to pay attention to the advertising messages, magazines ranked at or near the top of the list. — see pages 30 and 32 Magazine advertising is valuable content: Consumers value magazine advertising, according to numerous studies. Yankelovich and Dynamic Logic both report that consumers are more likely to have a positive attitude toward advertising in magazines compared to other media. In addition, consumers are more likely to turn to magazines to search for information across a variety of categories compared to the internet, based on research from MediaVest — see pages 31, 54, 55, 57 and 66 Magazines supply credibility: Consumers trust and believe magazines and magazine advertising more than other media. Simmons Multi-Media Engagement Study shows magazines score higher on being “trustworthy” compared to TV or the internet. Other independent research confirms that consumers place significant trust in magazine advertising. — see pages 29 and 35 Magazine print and digital audiences are growing: The number of magazine readers as well as the average number of magazine issues read in the past month has grown over the past five years. In addition, magazine website usage is growing faster than web usage overall. — see pages 7 and 10 www.magazine.org/handbook
  3. 3. Top Reasons to Advertise in Magazines Magazine advertising is relevant and targeted: Consumers consider magazine advertising more relevant than advertising in other media.With a range of titles that appeal to a wide variety of demographics, lifestyles and interests, advertisers can hone in on targets that fit their needs. — see pages 34 and 12 Magazines are a leading influence on word-of-mouth: Magazine readers are more likely than users of other media to influence friends and family on products across a variety of categories. Magazines are also most likely to complement the web in reaching social networkers, whom marketers increasingly favor in generating buzz. — see page 73 Magazine audiences accumulate faster than you think— and with lasting impact: The average monthly magazine accumulates approximately 60% of its audience within a month’s time, and the average weekly magazine accumulates nearly 80% of its audience in two weeks. — see page 74 Magazine advertising sells: Several studies demonstrate that magazines are generally the strongest driver of purchase intent. Perhaps this is because more than half of all readers act on magazine ads, according to Affinity Research. — see pages 36 and 42 www.magazine.org/handbook
  4. 4. Top Reasons to Advertise in Magazines Magazines improve advertising ROI: Based on a recent analysis of cross-media accountability studies, Marketing Evolution found magazines most consistently generate a favorable cost per impact throughout the purchase funnel. Multiple studies confirm that allocating more money to magazines in the media mix improves marketing and advertising ROI across a broad range of product categories. — see page 43 and 44 Magazine advertising drives web search, traffic and action taking: BIGresearch proves that magazines lead other media in influencing consumers to start a search for merchandise online, ranking at or near the top by gender as well as by age. In addition, studies from Marketing Evolution, JupiterResearch and the OPA show that ads in magazines or on magazine websites boost web traffic, spur online purchase and offline behavior. — see pages 70 – 72 Magazine advertising drives effectiveness throughout the purchase funnel: Magazines generally contribute more than other media when looking at consumers’ purchase decision-making process. As a result, magazines boost the effectiveness of other media at all stages of the funnel. — see pages 41 and 42 Magazines deliver reach: Across major demographic groups, the combination of the top 25 magazines delivers considerably more rating points than the top 25 TV shows. — see page 75 www.magazine.org/handbook
  5. 5. CONTENTS 1 Top Reasons to Advertise in Magazines Magazine/Audience Metrics 7 Magazine Readership Remains Strong 8 Number of Magazines 9 Magazine Websites Continue to Grow 10 Magazine Website Usage is Growing Faster than Web Usage Overall 11 Magazines Continue to Target Consumers’ Interests 12 Magazines Inform and Entertain THE MAGAZINE 13 Editorial and Advertising Contribute to the Reader Experience HANDBOOK 2009/10 Circulation Metrics www.magazine.org/handbook 14 Magazines Let Consumers Choose 15 Magazines Reach Mass and Niche Audiences 16 Consumers Invest in Their Magazines A Comprehensive Guide 17 Bulk of Paid Circulation Revenue is Subscription Based for Advertisers, Advertising 18 Consumers Rely on Multiple Outlets to Buy Their Magazines 19 Magazines Make the Cash Register Ring Agencies and Consumer 20 Multiple Sources Contribute to a Magazines Bottom Line Magazine Marketers 21 Public Place Copies Have Great Appeal Advertising Metrics 22 Magazine Advertising Rate Card Revenue Exceeds $23 Billion 23 Magazine Spending by Quarter 24 Magazines’ Share of Media Spending Stays Strong 25 The Top 12 Advertising Categories 26 Top 50 Magazine Advertisers Magazine Publishers of America 27 Recall of Magazine Advertising by Type of Unit, Color and Position 810 Seventh Avenue, 24th Floor 28 Unit Size Affects Ad Impact New York, NY 10019-5818 Magazine Engagement The Magazine Handbook © Copyright 2009 29 Magazines Are #1 Medium of Engagement Magazine Publishers of America, Inc. 30 Consumers Pay Attention to Magazines
  6. 6. 31 Consumers Enjoy Magazine Ads More Than Other Media 60 Luxury Goods: Buyers More Likely to Use Magazines and Web 32 Consumers Like and Pay Attention to Magazine Ads 61 Packaged Goods: Influencing Consumer Purchasing Decisions 33 Consumers Feel Positive About Magazine Advertising 62 Packaged Goods: Magazines Boost ROI/Target Shoppers 34 Magazines Provide a Relevant Advertising Experience 63 Pharmaceutical: A Prescription for Positive Results 35 Consumers Trust Magazine Advertising the Most 64 Pharmaceutical: Magazines Are a Top Healthcare Resource 65 Pharmaceutical: Magazines Lead in Driving Purchase Intent Magazine Advertising Accountability 66 Pharmaceutical: Magazines Provide Healthy Ad Results 36 Magazine Advertising and Editorial Gets Readers to Act 67 Retail: Magazines Improve ROI and Influence Purchases 37 Magazine Ad Effectiveness Continues to Grow 68 Technology: Magazines Target Key Purchase Influencers 38 Readers Value and Respond to Magazines 69 Travel: Magazines Are A Destination for Travel Aficionados 39 Magazines Deliver More Ad Impressions Than TV or Web 70 Magazines Excel in Driving Web Search 40 Magazines Lead in Ad Influence Relative to Time Spent 71 Magazine Ads Build Web Traffic across Purchase Funnel 41 Magazines Boost the Power of Other Media 72 Magazines Prompt Online Action Taking 42 Magazines Drive Results Through the Purchase Funnel 73 Magazines Influence Word of Mouth 43 Magazines Improve Marketing and Advertising ROI 74 Magazines Accumulate Reach Faster Than Commonly Believed 44 Magazines Consistently Produce a Low Cost per Impact 75 Magazines Provide Better Reach Compared to TV Accountability by Category Reader Characteristics 45 Magazines Influence Purchase Behavior Across Categories 76 Magazine Readers are Innovators 46 Magazine Readers Are Influential Consumers Across Categories 77 Magazines Appeal to Younger Adults 47 Auto: Magazines Play a Major Role in Auto Purchase 78 Magazines Appeal to Diverse Readers 48 Auto: Magazines Are More Efficient Than Other Media 79 Magazine Reading by Location 49 Auto: Magazines Deliver ROI Across the Purchase Funnel 50 Auto: Magazines Communicate the Benefits for Brands Creative Effectiveness 51 Auto: Magazines Exert Sizable Influence on Purchasers 80 Magazines Link Ad Engagement and Ad Effectiveness 52 Electronics: Magazines Generate Results and Influence 81 Engagement Findings Can Predict Creative Impact 53 Entertainment: Magazines Play a Leading Role in Results 82 Including a URL in Magazine Ads Increases Web Visits 54 Consumers of Entertainment Products Choose Magazines 83 Magazines Show Immunity to Ad Wearout 55 Fashion/Beauty: Making Ad Results More Attractive 56 Financial: Magazines Pay Dividends on Media Investments Case Studies 57 Food: Magazines Spice Up Results 84 The 28th Annual Kelly Award Winners 58 Green: Targeting Environmentally Conscious Consumers 87 Resources 59 Home Improvement: Magazines Motivate Consumers to Act 88 MPA Resources
  7. 7. Photography courtesy of Getty Images INSIDE FRONT COVER dv1284046/Digital Vision/Flying Colours Ltd AA033268/Photodisc/Hoby Finn 200486521-001/Riser/Leon Special thanks to NewPage for 10159978/Riser/China Tourism Press contributing the paper for this year’s edition BACK COVER of the Magazine Handbook. dv819005/Digital Vision 200211974-001/Photodisc/David De Lossy dv342083/Photodisc Sterling® Ultra 200513227-001/Riser/ Thomas Northcut COVER : 120 lb. dull TEXT : 80 lb. dull
  8. 8. Readership Trends 7 Magazine Readership Remains Strong More then 4 out of 5 U.S. adults Magazine Readers (000) 2004 2008 Adults 18+ 179,373 189,681 read magazines. Index to 2004 100 106 Adults 18 – 34 58,916 60,461 Magazine audience —including readership Index to 2004 100 103 among younger adults — has remained strong over the past five years despite Average Issues/Month Adults 18+ 11.0 11.5 the growth of new media options. Index to 2004 100 105 Adults 18 – 34 12.1 13.1 Index to 2004 100 108 Coverage Adults 18+ 84% 85% Index to 2004 100 101 Adults 18 – 34 88% 88% Index to 2004 100 100 Base: Magazine Readers, U.S. Adults 18+, 230 Measured Magazines Source: MRI, Fall Studies 2004 and 2008 www.magazine.org/handbook
  9. 9. Number of Magazine Titles 8 A Magazine for Everyone Reading a magazine is an Number of Magazines 1999 – 2008 intimate, involving experience year total* consumer 1999 17.970 9,311 that fulfills the personal needs 2000 17,815 8,138 and reflects the values of the 2001 17,694 6,336 reader. This is one reason the 2002 17,321 5,340 average reader spends over 43 2003 17,254 6,234 minutes reading each issue. 2004 18,821 7,188 2005 18,267 6,325 For a list of the number of magazines by category, visit www.magazine.org. 2006 19,419 6,734 2007 19,532 6,809 2008 20,590 7,383 *Includes, but is not limited to, consumer magazines in North America regardless of publishing frequency. Source: MRI Fall, 2008, National Directory of Magazines, 2009 www.magazine.org/handbook
  10. 10. Number of Magazines with Websites 9 Magazine Websites Continue to Grow Even as Print Magazines Are Valued The number of consumer magazine Number of Magazines websites has increased 78% since 2005, with Websites 2005 – 2009 extending the reach and influence of year total consumer only magazines’ editorial and advertising 2005 10,131 4,712 messages to an even wider audience. 2006 10,818 5,395 Consumers who use both magazine 2007 11,623 5,950 websites and their print counterparts 2008 13,247 6,453 overwhelmingly state that the printed 2009 15,204 7,473 magazine still has value. Source: MediaFinder, 2009 (data as of March, 2009) Keep up with the latest magazine digital initiatives at www.magazine.org/digital. Dual Magazine-Website Users Value Print by percent % strongly agree: “Online version could easily replace print version in next five years” Fashion/Beauty 15% Entertainment 13 Health & Wellness 12 Food/Cooking 10 Base: Dual users of magazine related website (by genre) Source: MediaVest Print/Digital Study, 2008 www.magazine.org/handbook
  11. 11. Magazine Website Traffic 10 Magazine Website Usage is Growing Faster Than Web Usage Overall Magazine Website Growth unique visitors reach sessions total minutes (millions) (percent) (millions) (billions) Fourth Quarter 2006 62.5 39% 386.6 1.7 Fourth Quarter 2007 67.5 42% 434.3 1.8 Fourth Quarter 2008 75.0 45% 546.2 2.4 Percent of Change 2008 vs. 2006 20% 15% 41% 41% U.S. Web Growth 2008 vs. 2006 4% First Quarter 2007 63.2 40% 427.7 1.9 First Quarter 2008 70.7 43% 497.3 2.2 First Quarter 2009 75.8 45% 538.4 2.3 Percent of Change 2009 vs. 2007 20% 13% 26% 21% U.S. Web Growth 2009 vs. 2007 7% Source: Nielsen Online analysis, based on quarterly averages of 476 magazine brands online, Q4 2008, Q1 2009 www.magazine.org/handbook
  12. 12. New Magazine Launches 11 Magazines Continue to Target Consumers’ Interests Every year a plethora of new magazines New U.S. Magazine Launches by Category in 2008 are introduced to satisfy consumers’ 18 Metropolitan/Regional/State 2 Art growing need to be informed and 18 Sports 2 Bridal entertained. 14 Crafts/Games/Hobbies/Models 2 Children’s 13 Automotive 2 Comic Technique/Comics The variety of new magazine titles 11 Home/Home Service 2 Computers 9 Epicurean 2 Dressmaking launched each year is a testament to the 9 Nature/Ecology 2 Entertainment / P erforming Arts magazine industry’s commitment to 9 Special Interest 2 Gaming meeting the needs and interests of 8 Fashion/Beauty/Grooming 2 Gay/Lesbian consumers. 8 Women’s 2 Military/Naval 7 Political/Social Topics 2 Motorcycles New magazine launch announcements 5 Fitness 2 Photography are highlighted on a monthly basis at 5 Health 2 Science/Technology www.magazine.org/launches. 5 Religion 2 Sex 4 Black/Ethnic 1 Fishing/Hunting 3 Boating 1 Gardening 3 Business/Finance 1 Men’s 3 Camping/Outdoor Recreation 1 Mystery 3 Dogs/Pets 1 Teen 3 Literary/Reviews/Writing 1 Travel 3 Music 195 Total New Magazine Launches Note: This list represents weekly, bi-monthly, monthly, and quarterly titles only. Source: Samir Husni’s Guide to New Consumer Magazines, 2009. www.magazine.org/handbook
  13. 13. Percent of Total Editorial Pages by Subject 12 Magazines Inform and Entertain In 2008, the 160 magazines measured by Hall’s Magazine Reports showed that the top three subject categories were Entertainment/Celebrity, Wearing Apparel/Accessories, and Travel/Transportation. Number of Editorial Pages 2008 type of editorial pages percent type of editorial pages percent Entertainment/Celebrity 28,496.0 15.8% General Interest 6,825.0 3.8% Wearing Apparel/Accessories 21,835.6 12.1 Self-Help/Relationships 5,257.4 2.9 Travel/Transportation 15,178.4 8.4 Building 4,641.7 2.6 Home Furnishings/Management 14,998.0 8.3 Personal Finance 4,483.7 2.5 Food & Nutrition 12,943.4 7.2 Fitness/Beauty 3,726.0 2.1 Culture 11,279.1 6.3 Global/Foreign Affairs 2,408.9 1.3 Business & Industry 10,281.1 5.7 Gardening & Farming 2,380.3 1.3 Sports/Recreation/Hobby 8,367.6 4.6 Children 2,287.7 1.3 Health/Medical Science 7,934.3 4.4 Consumer Electronics 1,743.6 1.0 Beauty & Grooming 7,350.3 4.1 Fiction 618.0 0.3 National Affairs 7,030.7 3.9 Total Editorial 180,066.8 100.0% Source: Hall’s Magazine Reports, 2009 www.magazine.org/handbook
  14. 14. Editorial/Advertising Ratios 13 Editorial and Advertising Contribute to the Reader Experience Editorial vs. Advertising Pages 1999 – 2008 year % editorial % advertising 1999 50.6 49.4 2000 49.7 50.3 2001 54.9 45.1 2002 53.4 46.6 editorial pages 53.8% advertising pages 46.2% 2003 52.1 47.9 2004 51.9 48.1 Most magazines contain both editorial 2005 52.8 47.2 and advertising content. Over the past 2006 53.0 47.0 ten years, the ratio of editorial and advertising content has remained 2007 52.9 47.1 relatively equal. 2008 53.8% 46.2% Source: Hall’s Magazine Reports, 2009 www.magazine.org/handbook
  15. 15. Circulation Mix 14 Magazines Let Consumers Choose Subscription/Single Copy Sales 1999 – 2008 year subscription single copy total 1999 310,074,081 62,041,749 372,115,830 2000 318,678,718 60,240,260 378,918,978 2001 305,259,583 56,096,430 361,356,013 2002 305,438,345 52,932,601 358,370,946 subscription 88% single copy 12% 2003 301,800,237 50,800,854 352,601,091 2004 311,818,667 51,317,183 363,135,850 While some consumers prefer the 2005 313,992,423 48,289,137 362,281,559 convenience of home or work delivery, others choose to buy copies of their 2006* 321,644,445 47,975,657 369,062,102 favorite magazines at supermarkets 2007* 322,359,612 47,433,976 369,793,587 and other retail outlets. In 2008, 88% 2008* 324,818,012 43,664,772 368,363,773 of total circulation was from magazine *Paid and Verified -Effective 2006, ABC established verified subscription circulation as a category. subscriptions, while single copy sales Source: Averages calculated by MPA from each year's ABC Publishers Statements,1999-2008. accounted for the remaining 12%. Comics, annuals and international editions are not included. www.magazine.org/handbook
  16. 16. Number of Magazine Titles by Circulation Size 15 Magazines Reach Mass and Niche Audiences Magazines with circulation ranging from 750,000 to 4.9 million represent more than half of total reported circulation. Total Paid and Verified Circulation 2008 Magazines by Circulation Size Groups MAGAZINES TOTAL CIRCULATION circulation size # in Group % of total for group % of total circ. Over 10,000,000 2 0.3% 44,495,582 13.2% 5,000,000 – 9,999,999 3 0.5 21,023,504 5.7 2,000,000 – 4,999,999 33 5.6 93,329,504 25.3 1,000,000 – 1,999,999 55 9.3 77,121,142 20.9 750,000 – 999,999 34 5.7 30,226,207 8.2 500,000 – 749,999 56 9.5 34,866,999 9.5 250,000 – 499,999 90 15.2 32,357,727 8.8 100,000 – 249,999 139 23.5 22,867,641 6.2 Under 100,000 180 30.4 8,075,849 2.2 Totals 592 100.0% 368,363,773 100.0% Source: Averages calculated by MPA from Audit Bureau of Circulations Publishers Statements, 2008. Comics, annuals and international editions are not included. www.magazine.org/handbook
  17. 17. Average Single Copy/Subscription Price 16 Consumers Invest in Their Magazines Over the years, consumers have Cost of Magazines 1999 – 2008 average price average price 1-year proven their commitment to year single copy basic subscription magazines by spending their 1999 3.44 24.83 hard-earned money to purchase 2000 3.83 24.41 them on the newsstand and/or 2001 3.88 25.30 2002 4.11 25.70 by subscription. 2003 4.22 26.55 2004 4.40 25.93 2005 4.40 26.78 2006 4.46 27.30 2007 4.53 27.83 2008 4.70 28.01 Sources: Averages calculated by MPA from ABC Publishers Statements, 1999-2008 www.magazine.org/handbook
  18. 18. Circulation Revenue 17 Bulk of Paid Circulation Revenue is Subscription Based In 2008, subscriptions accounted for 68% of total paid circulation revenue, while single copy sales accounted for the remaining 32% Paid Circulation Revenue 2008 Subscriptions $ 6,703,555,697 Single Copy $ 3,116,510,643 Total $ 9,820,066,340 Source: Averages calculated by MPA from ABC Publishers Statements, 2008. Verified circulation is not included in revenue calculations. subscription 68% single copy 32% www.magazine.org/handbook
  19. 19. Location of Single Copy Purchases 18 Consumers Rely on Multiple Outlets to Buy Their Magazines The top three newsstand outlets account for more than 60% of retail sales Retail Sales by Channel 2008 by percent Supermarkets 37% Supercenters 15% Drugstores 11% Bookstores 9% Discount Stores 8% Terminals 5% Convenience Stores 5% Newsstand 2% Club-Bargain 3% Others 6% Source: Harrington Associates, 2009 www.magazine.org/handbook
  20. 20. Magazines at Retail 19 Magazines Make the Cash Register Ring Magazines (in dollars) Magazines (by percent) .58 80% Snacks Candy, Gum, Mints .34 73 Gum Snacks .27 56 Candy Beverages .12 50 Carbonated Beverages Gift Cards .08 34 Source: Willard Bishop Grocery Super Study, 2007 Base: U.S. Adults 18+ Source: WSL Strategic Retail, Magazine Purchaser Survey, 2007 www.magazine.org/handbook
  21. 21. Magazine Revenue Mix 20 Advertising and Circulation Revenue Contribute to a Magazine’s Bottom Line Magazine Revenue 2006 2007 Advertising 57% 59% Subscriptions 31% 28% Single Copy 12% 13% Source: PriceWaterhouseCoopers Financial Survey, conducted for MPA, 2008, 2007 www.magazine.org/handbook
  22. 22. Public Place Readership 21 Public Place Copies Have Great Appeal Public Place Copies Build Audience • 80% of all adults have read magazines in a public place at some time in the past month • Public place magazines generate an average of 19 readers per copy per month Public place readers have positive Public Place Readers Are Engaged Readers attitudes about the experience public place total mag readers readers • 87% pay the same or more attention to magazines read in a public place Time spent reading magazines per month (hours) 6.4 5.9 compared to non-public place reading Number of individual titles read 5.1 4.6 • 68% look for their favorite magazines Number of magazines purchased per month 2.3 2.3 when visiting public places Source: McPheters & Co. AudienceLab, 2008 • 52% use the opportunity to try magazines they don't ordinarily read www.magazine.org/handbook
  23. 23. Magazine Ad Pages and Revenue Trend 22 Magazine Advertising Rate Card Revenue Exceeds $23 Billion Ad pages and revenue are updated Magazines Ad Pages and Rate Card Revenue 1999 – 2008 quarterly on the MPA website at year pages rate card revenue www.magazine.org/pib. Revenue 1999 255,383 $ 15,508,357,011 is reported at one-time open rate 2000 286,932 17,665,305,333 card rates. 2001 237,612 16,213,541,737 2002 225,619 17,254,061,740 2003 225,831 19,216,085,358 2004 234,428 21,313,206,734 2005 243,305 23,068,182,388 2006 244,907 23,996,768,141 2007 244,737 25,501,793,278 2008 220,813 $ 23,652,018,530 Note: Sunday supplements excluded. Source: PIB (data as of January 2009) www.magazine.org/handbook
  24. 24. Third Forth 28% Magazine Spending by Quarter 23 Magazine Advertising Rate Card Revenue is Highest in the Second and Fourth Quarters Percent of Total by Quarter Magazine Rate Card Revenue 2008 billions First Quarter $ 5.3 4th 1st Second Quarter 6.3 Third Quarter 5.5 3rd 2nd Fourth Quarter 6.6 Total $ 23.7 first quarter 22% Note: Sunday supplements excluded. second quarter 27% Source: PIB (data as of January 2009) third quarter 23% forth quarter 28% www.magazine.org/handbook
  25. 25. Advertising Share of Market: All Media 24 Magazines’Share of Media Spending Stays Strong Only three media showed increases of one point or more for 2008 vs. 2004: consumer magazines, cable TV and internet Share of Advertising Dollars by Medium 2004 2005 2006 2007 2008 Consumer Magazines 15.1% 15.8% 15.8% 16.7% 16.3% Sunday Magazines 1.1 1.2 1.3 1.3 1.3 Local Magazines 0.3 0.3 0.3 0.3 0.3 Hispanic Magazines 0.1 0.1 0.1 0.1 0.1 B-to-B Magazines 3.7 3.4 3.0 2.7 2.7 Network TV 16.5 16.1 15.9 15.5 16.3 Cable TV 10.4 11.2 11.5 12.5 13.6 Spot TV 13.2 11.7 12.5 11.3 11.7 Syndicated TV 2.8 2.9 2.8 2.7 3.1 Spanish Language TV 1.9 2.1 2.2 2.3 2.5 National Newspapers 2.3 2.3 2.3 2.2 2.0 Local Newspapers 17.4 17.1 15.9 14.9 13.8 Hispanic Newspapers 0.2 0.2 0.2 0.2 0.2 Network Radio 0.7 0.7 0.7 0.7 0.7 National Spot Radio 1.8 1.8 1.8 1.6 1.5 Local Radio 5.2 5.1 4.9 4.7 4.4 Internet 5.1 5.7 6.4 7.7 6.9 Outdoor 2.3 2.4 2.5 2.6 2.7 Total 100.0 100.0 100.0 100.0 100.0 Source: TNS Media Intelligence (data as of March 2009) www.magazine.org/handbook
  26. 26. Magazine Advertising Categories 25 TheTop12 Advertising Categories Account for 87% of All Spending In 2008, Toiletries & Cosmetics was the Magazine Advertising Rate Card Reported Revenue largest magazine advertising category, Top Categories 2007/2008 followed by Drugs & Remedies, and category 2007 2008 Food & Food Products, according to the Toiletries and Cosmetics $ 2,575,541,213 $ 2,476,298,686 Publishers Information Bureau (PIB). Drugs and Remedies 2,599,844,272 2,223,066,800 Food and Food Products 2,124,215,174 2,099,542,708 Magazine rate card reported revenue Apparel and Accessories 2,175,732,680 2,035,274,756 by class is made available quarterly at www.magazine.org/pib. Retail 1,897,826,789 1,881,949,565 Media and Advertising 1,781,356,052 1,743,892,205 Direct Response Companies 1,824,735,774 1,670,112,388 Automotive 2,015,547,632 1,602,279,970 Home Furnishings and Supplies 1,564,281,317 1,384,338,034 Financial, Insurance and Real Estate 1,383,329,587 1,231,277,017 Public Transportation, Hotels and Resorts 1,170,687,367 1,152,174,703 Technology 1,079,264,176 974,403,735 Top Categories Total $ 22,192,362,033 $ 20,474,610,567 Note: Sunday supplements excluded. Source: PIB (data as of January 2009) www.magazine.org/handbook
  27. 27. Top 50 Magazine Advertisers 26 Leading Marketers Depend on Magazines Top 50 Marketers’ Spending Equals 33% of Overall Magazine Revenue 1 Procter & Gamble Co $ 899,693,375 26 GE General Electric Co $ 113,279,308 2 General Motors Corp 432,953,105 27 Nestlé SA 111,210,484 3 Kraft Foods Inc 389,597,247 28 Estée Lauder Cos Inc 108,931,283 4 Johnson & Johnson 364,117,555 29 Hearst Corp 106,389,891 5 L’Oréal SA 312,704,476 30 Target Corp 104,004,022 6 Unilever 199,530,830 31 Merck & Co Inc 103,897,553 7 Time Warner Inc 195,088,460 32 Astrazeneca PLC 103,297,354 8 GlaxoSmithKline PLC 187,975,032 33 Bayer AG Group 101,993,804 9 LVMH Möet Hennessy Louis Vuitton SA 184,548,006 34 Sony Corp 99,510,541 10 Pfizer Inc 172,862,312 35 Verizon Communications Inc 97,033,997 11 Campbell Soup Co 172,368,799 36 CitiGroup 93,573,650 12 Walt Disney Co 171,013,429 37 Bose Corp 88,495,725 13 Advance Publications Inc 165,923,523 38 Bristol-Myers Squibb Co 84,945,883 14 Joh A Benckiser GMBH 163,652,993 39 Iovate Health Sciences Inc 84,599,147 15 PepsiCo Inc 162,702,663 40 Women’s Marketing Inc 84,440,921 16 Clorox Co 145,582,421 41 Synergistics Marketing Inc 83,563,067 17 Nissan Motor Co LTD 141,503,333 42 Cerberus Capital Mgt LP 80,447,184 18 Toyota Motor Corp 139,185,348 43 GAP Inc 77,022,474 19 Honda Motor Co LTD 137,838,336 44 Church & Dwight Co Inc 76,854,990 20 Wal-Mart Stores Inc 134,363,337 45 Sanofi-Aventis 75,289,904 21 Mars Inc 132,383,906 46 Bradford Exchange LTD 74,353,465 22 US Government 128,933,377 47 Coca-Cola Co 73,022,332 23 Berkshire Hathaway Inc 118,467,058 48 Dillards Inc 71,813,286 24 Kellogg Co 117,455,436 49 Media Networks Inc 71,559,003 25 Ford Motor Co 117,106,223 50 Abbott Lab 71,279,716 Note: Sunday supplements excluded. Total Top 50 Rate Card Reported Spending $ 7,728,359,564 Source: PIB (data as of January 2009) www.magazine.org/handbook
  28. 28. Readership by Advertising Unit Type 27 Recall of Magazine Advertising by Type of Unit, Color and Position A compilation of studies done by Affinity Impact of Magazine Ads (average) Research shows that creative execution type of magazine advertisement recall index affects recall, as seen in the data for unit UNIT * Full page 100 size and paper stock. Inside front cover 109 Inside back cover 106 Comparable recall rates among readers Back cover 116 for ads in both the first half and second Multiple-page units 115 half of magazine issues demonstrate that Two-page spread 109 a reader’s interest in the magazine is Less-than-full-page 84 sustained throughout the entire issue. COLOR Black and white 100 Spot color(s) 96 *4-Color 108 POSITION Second half of issue 100 First half of issue 102 PAPER STOCK Regular Paper 100 **Heavy Paper 118 0> 100 > *Four color, (including 5th color or metallics) ** “Heavy” defined as any paper weight heavier than run-of-book stock Source: Affinity Research VISTA Print Rating Service, 2009 www.magazine.org/handbook
  29. 29. Readership by Advertising Unit Size 28 Unit Size Affects Ad Impact MRI Starch finds that unit size has an Readership of Multiple-Page Ads – Averages Indexed vs 4-Color Spread Ads impact on advertising results. MRI Starch’s noted associated read some read most data show that, as ad size increased, so Spread 100 100 100 100 did readership. “Noted” and “read some” 2-page insert* 105 106 108 107 scores generally show greater increases than “read most” scores as the number of 3-page run-of-book 116 115 124 93 ad pages increased. This indicates that, 3-page insert 120 121 137 121 though readers may elect not to read a 3-page gatefold 124 125 139 143 longer advertisement in its entirety, it still has positive impact. 4-page run-of-book 124 123 139 121 4-page insert 118 115 134 121 4-page gatefold 124 127 137 136 6-page run-of-book 136 146 155 129 8-page run-of-book 151 125 197 121 8-page insert 127 127 147 136 * Differs from a spread in that an insert is on a single page but comprises both sides of the same page. Note: Read Most scores are based on ads with 50+ words only. Source: MRI Starch In-Person Studies (January 2004 – December 2007) www.magazine.org/handbook
  30. 30. In an Age of Interruption, Magazines Engage 29 Magazines Are #1 Medium of Engagement — Across All Dimensions Measured New data from Simmons’ Multi-Media Comparing Media Channels magazines Average engagement dimension scores television Engagement Study find magazines internet ( 100 = least engaged / 500 = most engaged ) continue to score significantly higher Ad Receptivity than TV or the Internet in ad 286 receptivity and all of the other 212 234 engagement dimensions, including Trustworthy “trustworthy” and “inspirational.” 337 279 318 Life-Enhancing 304 217 279 Social Interaction 315 285 288 Personal Timeout 312 311 260 Inspirational 284 250 232 100 150 200 250 300 350 www.magazine.org/handbook Source: Simmons Multi-Media Engagement Study, 2008 Full-Year Study
  31. 31. In an Age of Interruption, Magazines Engage 30 Consumers Pay Attention to Magazines BIGresearch found that magazine Consumers Pay Attention to Magazines by percent Percent of consumers who regularly engage in non-media activities while readers are least likely of all media using media. Lower percentage = better performance. users to engage in other (non-media) listen to radio 27% activities while reading. go online 25% In addition, their data show that when watch tv 20% consumers read magazines, they are read newspapers 10% much less likely to engage in other read magazines 9% media. Only 9% of magazine readers will Source: BIGresearch Simultaneous Media Usage Study, 2008 simultaneously go online, only 14% will listen to the radio, and only one in four Consumers Pay Attention to Magazines by percent (23%) will watch TV. Lower percentage = better performance. regularly engage in other read watch listen to read go medium when you... magazines watch tv radio newspapers online See page 80 for research that links reader read magazines n/a 23% 14% n/a 9% engagement to increased ad recall and action taking. read newspaper n/a 28 16 n/a 11 go online 8 41 25 13 n/a listen to radio 10 11 n/a 15 21 watch tv 12 n/a 6 14 30 Source: BIGresearch Simultaneous Media Usage Study, 2008 www.magazine.org/handbook
  32. 32. In an Age of Interruption, Magazines Engage 31 Consumers Enjoy Magazine Advertising More Than Advertising in Other Media Yankelovich reports that magazines Top 5 Ranking (of 16 Media) on Key rank #1 out of 16 media for consumers Ad Performance Areas: having a positive impression of Advertising made a positive 1 Ads (in this medium) made magazines impression advertising. This may be because a positive impression: 2 in-store Magazines 3 tv 68% magazines are second only to video 4 newspapers TV 58% games for consumers enjoying the 5 radio content at the time they saw the ad. Radio 55% Enjoying content (in this medium) 1 video games Magazines also rank very highly for at the time I saw the ad: Email 2 magazines 34% 3 radio the relevance of information in the Internet Banner 4 30% tv medium and consumers’ overall 5 newspapers Social Networking Site 28% opinion of the medium (see page 34). Source: The Futures Company Yankelovich MONITOR/Sequent Partners, 2008 Source: Yankelovich Monitor/Sequent Partners, 2008 Similarly, magazine readers have a Very/somewhat positive attitude toward advertising positive attitude to the advertising in the magazines 54% medium, according to research from tv 52% Dynamic Logic. radio 44% internet 24% Source: Dynamic Logic AdReaction 4, 2007 www.magazine.org/handbook
  33. 33. In an Age of Interruption, Magazines Engage 32 Consumers Like and Pay Attention to Magazine Ads When consumers were asked to rate Attention to Advertising media based on how likely they are to 35% magazines Age 18–64 pay attention to the advertising messages Age 18–24 40% within their respective environments, magazines were number one for total television 27% adults (age 18-64) and a close number two 34% among adults 18-24. Younger adults (age 18-24) proved to be more attentive than radio 34% adults (age 18-64) to ads in all media. 41% People are more likely to agree that the advertising in magazines enhances their internet 30% overall media experience, more so than 36% advertising on TV or on the Internet. Note: Adults who use medium and say they are likely to pay attention to advertising. Source: JackMyers Emotional Connections Survey, 2007 Ads Enhance Overall Enjoyment of magazines 22% tv 12% online 7% Source: Time, Inc., Magazine Experience Study, 2007 www.magazine.org/handbook
  34. 34. In an Age of Interruption, Magazines Engage 33 Consumers Feel Positive About Magazine Advertising Consumers—including younger consumers Consumer Experiences with Advertising by percent —consider magazine advertising useful Positive Drivers age magazines tv radio newspapers internet and valuable. Ads provide useful 18+ 48% 55% 38% 50% 36% information about 18–24 42 52 37 42 34 Consumers more strongly attributed new products/services negative attributes to advertising in Ads provide information 18+ 39 40 30 40 26 broadcast media and the Internet: about product use 18–24 37 38 30 35 31 • Print advertising, including magazines, of other consumers intruded the least and was considered the most trustworthy Negative Drivers • Consumers viewed advertising on TV, Ads have no credibility 18+ 17 33 24 16 31 radio and the Internet as repetitive 18–24 24 33 30 21 36 and inconvenient Ads appear at 18+ 19 54 38 16 47 • TV, radio and Internet advertising did inconvenient moments 18–24 25 49 19 20 49 not stand out—30% or more of all All ads are alike 18+ 23 32 30 21 30 consumers believed that “all ads in this 18–24 28 36 38 28 38 medium are alike” Ads are repeated 18+ 27 64 47 21 43 too often 18–24 30 57 50 26 45 Source: MRI, Fall 2008 www.magazine.org/handbook
  35. 35. In an Age of Interruption, Magazines Engage 34 Magazines Provide a Positive and Relevant Advertising Experience Opinions of General Ad Formats Relevance of Ads in Various Media 56% Newspaper Ads 62% 53 Magazine Ads 57 50 TV Ads 58 48 Billboard/Outdoor Ads 50 43 Radio Ads 47 39 Cinema Ads 39 33 Opt-in Email Ads 35 30 Direct Mail 38 27 Product Placement 26 26 Online Search Ads 30 24 Online Ads 26 11 Ads on Mobile Devices 11 7 Non-Opt-In Email Ads 8 0 20 40 60 80 100 0 20 40 60 80 100 Very/Somewhat Positive Neutral Very/Somewhat Negative Very/Somewhat Relevant or Useful Neutral Not Very/Not at All Relevant or Useful Source: Dynamic Logic AdReaction Study, 2007 www.magazine.org/handbook
  36. 36. In an Age of Interruption, Magazines Engage 35 Consumers Trust Magazine Advertising the Most Magazine advertising is more trusted than advertising in other media, regardless of age Percent of Adults Age 18 – 54 Who Trust Advertising in Medium magazines 48% television 40% internet 40% Source: Time Inc. “Storytelling in a Multiplatform World,” 2008 Percent of Millennials* Who Trust Advertising in Medium magazines 20% television 13% radio 11% internet 6% *Consumers born between 1977 and 1996 Source: MORI Research, 2006 www.magazine.org/handbook
  37. 37. Accountability: Magazines Get Results 36 Magazine Advertising and Editorial Get Readers to Act More than half (56%) of readers Actions Readers Took or Plan to Take as a Result took action on magazine ads or had of Exposure to Specific Magazine Ads a more favorable opinion about the Consider purchasing the advertised product or service 21% advertiser because of magazine Have a more favorable opinion about the advertiser 12 advertising, according to the latest Gather more information about advertised product or service 12 research from Affinity’s VISTA Print Visit the advertiser’s website 11 Effectiveness Rating Service. Visit a store, dealer or other location 9 An analysis of Affinity data over the past Purchase the advertised product or service 8 four years shows magazine advertising Save the ad for future reference 7 recall and action-taking have increased Recommend the product or service to a friend, colleague or family member 5 during this time (see page 37). Took any action (net) 56 Similarly, more than two out of three Actions Taken as a Result of Reading (68%) readers took action based on Specific Features/Articles editorial content. The research shows Saved article for future reference 29% that magazine engagement goes far Passed article along to someone 24 beyond just “feeling”— it prompts Gathered more information about the topic 15 consumers to act. Visited a related website 12 Took any action (net) 68 Source: Affinity’s VISTA Print Effectiveness Rating Service, 2008 www.magazine.org/handbook
  38. 38. Accountability: Magazines Get Results 37 Magazine Ad Effectiveness Continues to Grow Magazine ad effectiveness hit Magazine Advertising Recall 2005 53% 100 an all-time high in 2008. 2006 53% 100 Two measures of ad effectiveness for 2007 55% 104 magazines—ad recall and actions taken as a result of seeing an ad—both 2008 56% 106 continue to grow, according to Affinity’s VISTA Print Effectiveness Rating Service. Magazine Advertising Actions Taken 2005 51% 100 • Ad recall has increased by 6% over 2006 51% 100 the past four years 2007 54% 106 • Action-taking (based on readers 2008 56% 110 recalling specific ads) increased Note: Actions taken based on readers recalling specific ads. by 10% Source: Affinity’s VISTA Print Effectiveness Rating Service, 2005 – 2008 www.magazine.org/handbook
  39. 39. Accountability: Magazines Get Results 38 Readers Value and Respond to Magazines Regardless of How They Acquire the Magazine Actions Taken or Plan to Take in Response to Magazine Advertising by percent paid nonpaid pass-along total readers Consider purchasing the advertised product or service 21% 19% 20% 21% Have a more favorable opinion about the advertiser 12 11 11 12 Gather more information about product or service 12 12 12 12 Visit the advertiser’s website 12 10 11 11 Visit a store, dealer or other location 9 8 8 9 Purchase the advertised product or service 9 7 8 8 Save the ad for future reference 7 6 7 7 Recommend the product or service 5 5 6 5 Took any action (net) 57 55 56 56 Base: Actions taken based on respondents recalling specific ads Source: Affinity's VISTA Print Effectiveness Rating Service, 2008 www.magazine.org/handbook
  40. 40. Accountability: Magazines Get Results 39 Magazines Deliver More Ad Impressions Than TV or Web in Half-Hour Period New research from McPheters & Company Magazines Deliver More Ad Impressions than TV shows that for each half-hour spent with or the Internet in a Half-hour Period the medium: no. of ads no. of ads exposed absorbed • Magazine readers are exposed to twice Magazines (full-page, 4C) 65.1 24.4 as many ads as internet users and four times as many as primetime TV viewers TV (30-second primetime) 16.2 11.7 • As a result, magazines effectively Internet (standard banner) 27.8 3.8 deliver more than twice the number Source: McPheters & Company, 2009 for Condé Nast Publications & CBS-TV of advertising impressions as TV and six times the number of ad impressions as the internet This study demonstrates that time spent with a medium is not a good predictor of advertising effectiveness. www.magazine.org/handbook
  41. 41. Accountability: Magazines Get Results 40 Magazines Lead in Ad Influence Relative to Time Spent Magazines outperform other Time-Ad Impact Ratio The ad influence of a medium relative to time spent with that medium media when looking at the magazines 5.5 “Time-Ad Impact Ratio.” newspapers 4.9 A new analysis of time spent with media internet 2.5 focuses on the influence of advertising in television 2.3 a medium relative to the more common radio 1.1 metric of time spent. This analysis, Time-Ad Impact = Media Influence/Share of Total Time Spent dubbed the “Time-Ad Impact Ratio,” is Sources: MRI MediaDay, 2008. Deloitte “State of the Media Democracy” Study, 2008 made up of two components: • Share of time consumers spend with each medium in an average day, and By dividing a medium’s influence by the share of total time spent • The percentage of U.S. consumers who with that medium, a Time-Ad Impact Ratio can be calculated. said advertising in a medium has the Results show advertisers that magazines’ ratio is more than two most influence on their buying time higher than that of TV or the internet and more than five decisions times higher than that of radio. www.magazine.org/handbook
  42. 42. Accountability: Magazines Get Results 41 Magazines Boost the Power of Other Media Dynamic Logic’s analysis revealed that magazines play a leading role in boosting overall advertising effectiveness. The combination of TV and magazines provided significantly more lift (versus TV alone) than did TV plus online. Cumulative Effects of Different Media Combinations Pre/Post Point Change (Index versus TV alone; TV alone = 100) Aided Brand Awareness 100 149 175 224 tv only tv + online tv + tv + mags tv only mags + online tv + online tv + magazines Advertising Awareness tv + magazines + online 100 145 218 230 Brand Favorability 100 155 352 407 Purchase Intent 100 122 252 274 Note: Results reflect the impact of different media combinations expressed as an index with TV as the base medium. Results are an aggregate of 32 studies. Source: Dynamic Logic/Millward Brown CrossMedia Research, 2007 www.magazine.org/handbook
  43. 43. Accountability: Magazines Get Results 42 Magazines Excel at Driving Results Through the Purchase Funnel, Especially at Key Lower Stages In an analysis of 32 client-commissioned studies, media research firm Dynamic Logic found that magazines, in a media mix that included online and TV, contributed: • 45% of overall effects, indexing 118 compared to TV and 265 compared to online • 62% of the total increase in brand favorability (7.3% of a total 11.8% shift) • 56% of the total increase in purchase intent (7.0% of a total 12.6% shift), nearly three times stronger than TV’s influence and seven times stronger than online’s influence Incremental Effect Across Incremental Effect of Medium on Brand Metrics: Overall Studies Purchase Funnel Overall Average Percentage Point Increase Over Unexpected (Control) Baseline aided brand awareness tv online 7.6 3.7 5.7 17.0 magazines ad awareness 9.8 4.4 8.3 22.5 message association 3.9 1.7 3.4 9.0 magazines 45% brand favorability television 38% 7.3 11.8 2.9 1.6 online 17% Base: 32 Studies purchase consideration Source: Dynamic Logic/Millward Brown CrossMedia Research Studies, 2004 – 2007 4.6 1.0 7.0 12.6 Base: 32 Studies www.magazine.org/handbook Source: Dynamic Logic/Millward Brown CrossMedia Research Studies, 2004 – 2007
  44. 44. Accountability: Magazines Get Results 43 Magazines Improve Marketing and Advertising ROI For many of the accountability studies it conducted, Marketing Evolution made recommendations to marketers to reallocate their media mix. They advised that: • Share of spending for magazines should increase as much as 30 points in 11 of the 16 studies (69%) • Share of spending for online should increase as much as 10 points in 7 of the 16 studies (44%) • Share of spending for TV should increase as much as 10 points in 3 of the 16 studies (19%) When marketers implemented Recommendation for Reallocation of Media Spending Percentage of studies where spending should increase for medium the recommended reallocation magazine 69% of media, their average return on online investment (ROI) increased 23% 44% at comparable budget levels. tv 19% Source: Marketing Evolution, 2006 www.magazine.org/handbook
  45. 45. Accountability: Magazines Get Results 44 Magazines Most Consistently Produce a Low Cost per Impact Throughout the Purchase Funnel When analyzing ROI across 38 cross- Aggregate Trends Across the Purchase Funnel media accountability studies, Marketing Cost Per Impact (CPI) television Evolution found: Brand Awareness magazines $0.98 online • TV leads in cost efficiency for brand $1.08 awareness with magazines a close second $1.97 • Magazines generated a superior cost- Brand Familiarity per-impact for brand familiarity with $2.61 $1.40 TV and online performing at almost $2.58 double magazines’ CPI Purchase Intent • For purchase intent magazines $1.77 yielded a far more efficient cost per $1.23 impact than TV or online $2.61 Aggregate of 38 studies. Source: Marketing Evolution, 2008 Magazines outperformed TV and online when looking at the # 1 ranking as well Overall Media Performance Across Categories for CPI as the combined ranking for # 1 and 2 Based on number of times each medium ranked # 1, 2 or 3 throughout the purchase funnel across the individual categories studied— media rank #1 #2 #3 auto (page 48), electronics (page 52), TV 5 6 3 entertainment (page 53), and pharma- ceuticals (page 66). Magazines 8 5 2 Online 2 4 6 Base: Automotive, Electronics, Entertainment and Pharmaceutical categories. Source: Marketing Evolution, 2008 www.magazine.org/handbook
  46. 46. Accountability: Magazines Get Results 45 Magazines Influence Purchase Behavior Across Categories When looking at a variety of product Top Media That Influence Purchase by Age and Category categories, BIGresearch found that total adults age 18–24 age 25 – 34 magazines are one of the top four Apparel/ magazines 25% magazines 35% Magazines 29% out of 17 possible media choices Clothing newspaper 23 email 25 broadcast tv 24 broadcast tv 21 broadcast tv 25 Email 23 influencing the purchases of U.S. email 19 Internet 23 Internet 19 adult consumers. The categories include apparel, home improvement, Home broadcast tv 20% broadcast tv 20% broadcast tv 20% Improvement magazines 19 magazines 17 magazines 17 car/truck, medicines and electronics. newspaper 19 cable tv 16 cable tv 15 cable tv 14 newspaper 14 newspaper 13 The finding holds for the 18-to-24 and 25-to-34 year-old segments even Car/Truck broadcast tv 20% broadcast tv 19% broadcast tv 21% though such youth-centric media as newspaper 19 newspaper 19 newspaper 17 magazines 15 magazines 17 magazines 15 text messaging, video on cell phones, radio 13 cable tv 17 radio 15 instant messaging and online video game advertising were included among Medicines broadcast tv 14% broadcast tv 14% broadcast tv 14% magazines 9 Cable TV 12 cable tv 10 the 17 media studied. cable tv 9 magazines 10 magazines 9 newspaper 9 newspaper 8 newspaper 7 Electronics broadcast tv 27% broadcast tv 32% broadcast tv 29% magazines 23 internet 33 internet 25 newspaper 22 radio 32 email 24 internet 22 magazines 30 magazines 23 www.magazine.org/handbook Source: BIGresearch, Simultaneous Media Usage Survey (SIMM13), December 2008
  47. 47. Accountability: Magazines Get Results 46 Magazine Readers Are Super Influential Consumers Across Categories Across 60 product categories, magazines Number of times medium ranks and the internet most often rank #1 #1 or #2 among Super Influential or #2 (out of six media) in delivering Consumers across 60 product categories the highest concentration of Super Magazines 51 Influential Consumers. Internet 54 “Super Influentials” are defined by MRI Outdoor 19 as the people who have great experience Newspapers 4 in this product area and whose advice on Radio 1 this category is trusted by friends and Television 0 family members. Top Quintile of Usage for Each Medium Source: MRI, Fall 2008 The next 24 pages will delve deeper into individual product categories to show how magazines are both effective and efficient in driving ad results. Product category information is updated throughout the year and available at www.magazine.org/advertising. www.magazine.org/handbook
  48. 48. Accountability: Magazines Get Results 47 Magazines Play a Major Role in Auto Purchase The Time Inc. /CNW Purchase Process Study shows that there is a handoff of information sources as automotive purchase intenders move from stage to stage. Magazine ads form an integral part of influencing the buyer’s auto consideration set by playing a key role in both the upper and middle funnel stages. Primary Source of Information — Top 5 of 25 Sources Upper Funnel Middle Funnel Lower Funnel 6 – 5 months prior to purchase 4 – 2 months prior to purchase 4 – 2 weeks prior to purchase Television Ads 15.1% Third Party Sites* 11.9% Local Newspaper Ads 13.4% Magazine Ads 10.3 Television Ads 11.4 Consumer Reports 10.3 Friends / Relatives 10.3 Magazine Ads 11.0 Friends / Relatives 10.1 Manufacturer Websites 9.7 Consumer Reports 10.1 Dealer Websites 8.6 Consumer Reports 7.3 Manufacturer Websites 7.4 Manufacturer Websites 8.1 *Third Party Sites: i.e. Edmunds, Kelley, AOL Auto, etc. Reports include both print and digital versions. Consumer Magazines, Local Newspapers and Consumer Source: Time Inc. / CNW Marketing Purchase Process Study, 2008 www.magazine.org/handbook
  49. 49. Accountability: Magazines Get Results 48 Magazines Are More Efficient Than Other Media at Critical Lower Stages of the Auto Purchase Funnel Across six studies encompassing Cost Per Impact (CPI) by Medium by index television TV = 100. Lower Index = Better Performance. magazines domestic and imported cars and trucks, online including new launches and repositioning Brand Familiarity $7.20 100 of existing brands, analysis by Marketing Evolution showed: $2.45 34 • Magazines had a superior cost per $3.92 54 impact (CPI) for brand familiarity— two-thirds that of TV and nearly 40% Purchase Intent less than online $7.60 100 • Magazines also had the lowest CPI $1.84 24 for purchase intent—three-quarters $2.65 35 that of TV and about one-third the Aggregate of 6 studies. CPI of online Source: Marketing Evolution, 2008 To see how magazines produced the lowest cost per impact throughout the purchase funnel across 38 cross-media accountability studies, see page 44. www.magazine.org/handbook
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