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Pesquisa Magonomics

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Apresentaçãp de Marius Cloete (Diretor de Pesquisa/ The Professional Publishers Association - GB) no VII Fórum ANER de Revistas

Published in: Business, News & Politics
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Pesquisa Magonomics

  1. 1. Magazines & Brand Metrics The impact of investment Econometrics & ROI
  2. 2. Magazines & the Customer Journey - ‘MAGNIFY’ Magazines & Brand Metrics The impact of investment Econometrics & ROI
  3. 3. Understanding the consumer journey AWARENESS RESEARCH & FAMILIARITY OPINION & SHORT LIST CONSIDERATION PURCHASE PRE-AWARENESS PURCHASE INTENT TRIGGER
  4. 4. ADVERTISING EDITORIAL ADVERTISING EDITORIAL SOURCE: MAGNIFY 1 Magazine Influence
  5. 5. Purchase actions How magazines drive consumer behaviour Engagement Reference actions ADVERTISINGEDITORIAL FAMILIARITY RESEARCH CONSIDERATION & PURCHASE Impact actions BRAND ACTIVISM SOURCE: MAGNIFY Read most Read Any Read Any Read Most Gathered more info Visited brand website Cut out ad Used for ideas Gathered more info Cut out ed Visited brand website Have a more favourable opinion Recommended the product Discussed/ referred Passed to someone Considering purchase Purchased Considering purchase Purchased 1
  6. 6. Magazines & Brand Metrics The impact of investment Econometrics & ROI 2 3 4
  7. 7. What is ROI? 2
  8. 8. MINDSHARE/BRANDZ 2
  9. 9. Brand Pyramid Brand Lifestage Typology Brand Voltage MINDSHARE/BRANDZ Brand Personality 2
  10. 10. Magazines & Brand Metrics MINDSHARE/BRANDZ 2
  11. 11. 7 MINDSHARE/BRANDZ 2 79 88 73 55
  12. 12. BrandZ Analysis 136 brands a COMPREHENSIVE UNDERSTANDING OF MEDIA vs BONDING SCORE MINDSHARE/BRANDZ 2
  13. 13. <£2m Campaign Value Magazines & Bonding £2m – £10m Campaign Value 25% 72% BrandZ: 136 Brands using magazines *Based on average share of spend of 7% in 2011: Source WARC/ AA 2 Magazine = ave. 7% of spend
  14. 14. 58 76 56 45 8 59 77 57 41 9 62 76 59 47 11 BrandZ: Face care, *Source: Nielsen AdDynamix Magazines & Brand Metrics 2
  15. 15. 24 31 23 18 4 27 34 26 20 5 34 40 33 24 8 BrandZ: Haircare, *Source: Nielsen AdDynamix Magazines & Brand Metrics 2
  16. 16. How do magazines perform in econometrics? 3
  17. 17. Base Price / Promo In Store DM Media Comp. Price / Promo Comp. Launches Comp. Media Seasonality Sales Measured level of base sales Isolating the media effect Time Sales
  18. 18. Isolating the media effect SOURCE: MINDSHARE/OHAL 3
  19. 19. The ROI challenges for magazines 3
  20. 20. The challenges for magazines 81% GRPs Time (weeks)Week 1 (On sale week) Incorrectly applied print models assume the total audience is reached during the on sale week In four weeks SOURCE: NRS ACCUMULATION STUDY 3
  21. 21. Analysis of 5 FMCG campaigns… Without accumulation Magazine ROI is underestimated On average, accumulation data shows an ROI uplift for mags of.. …19% SOURCE: MINDSHARE INPUT ANALYSIS OF 5 FMGC CAMPAIGNS - 2012 3 Brand B Brand C Brand D Brand E Brand A
  22. 22. So how do magazines really stack up? 150 60 137 103 99 ROIMedianIndexperchannel SOURCE: MINDSHARE/OHAL META ANALYSIS OF 77 CAMPAIGNS INDEX OF MEDIAN PERFORMANCE OF EACH CAMPAIGN
  23. 23. 1 4
  24. 24. Use in channel selection Optimising budget allocation Maximum potential sales Sales potential Spend 100k The same investment can yield much higher returns dependent on chosen media. In this illustration £100k invested in the yellow media can yield twice the sales of blue media100k Yellow sales 4
  25. 25. Use in channel selection % of maximum sales on the media channel 100% Weekly Media Spend 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% £0 £500,000 £1,000,000 £1,500,000 £2,000,000 Outdoor TV1 Magazines TV 2 In this case, magazine s are by far the most underinvested medium… … this appears to be consistent across most campaigns analysed Diminishing Return Curve Analysis – Campaign A 4 SOURCE: MINDSHARE/OHAL
  26. 26. Budget Reallocation SOURCE: MINDSHARE DIMINISHING RETURN CURVE ANALYSIS OF 5 FMGC CAMPAIGNS - 2012 The gains made by reallocating budget to magazines was far greater than what was lost from the host medium 4 Analysis of 5 FMCG campaigns…
  27. 27. By how much can magazine budgets be increased before it impacts on ROI? 4
  28. 28. The bottom line … budgets have to be at least doubled before magazine ROI reduced to the same level as TV SOURCE: MINDSHARE DIMINISHING RETURN CURVE ANALYSIS OF 5 FMGC CAMPAIGNS - 2012 4 Analysis of 5 FMCG campaigns… Brand A Brand B Brand C Brand D Brand E What changes in magazine investment are required to match TV ROI?
  29. 29. ROI in Summary Magazines get consumers closer to brands. Brands who are heavy magazine users enjoy higher bonding scores It is easy to underestimate magazine ROI Magazines ROI is to be higher than all other media channels To address the level of underinvestment in magazines, budgets need to be more than doubled before ROI starts dropping off

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