Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Brand science by printpower

ROI of advertising could be much higher with a better budget allocation. More print in the media mix means more return of your advertising investment

  • Login to see the comments

Brand science by printpower

  1. 1. MEASURING THE EFFECTIVENESS OF PRINT MEDIA IN AN INTEGRATED MEDIA PLAN BRUSSELS, MAY 2014 THE RESULTS OF AN ANALYSIS OF 500 + ECONOMETRIC EVALUATED CAMPAIGNS
  2. 2. 2   WHAT IS META ANALYSIS? META ANALYSIS is the “analysis of individual analysis results”, pooled and re-analysed so as to gain deeper insights from wider experience. Using the BrandScience results vault of previous econometric model studies, we can: •  Understand how different print media deliver for clients across different categories •  Understand how different print media affect the performance of a campaign •  Identify the rules to improve the use of print media in future campaigns
  3. 3. OBJECTIVES 3   WHICH RESULTS CAN BE GENERATED? •  Typically return on investment (ROI) measures the incremental profit generated by €1 investment •  Reported in ROI; sales generated from €1 invested, medium by medium •  So a €1 ROI means that €1 invested in media will generate €1 incremental profit return. A higher than €1 ROI means immediate payback of the investment •  However, the BrandScience Results Vault measures Revenue ROI (RROI) as it is often hard to get profitability information from clients •  So, a €5 RROI means each €1 invested in advertising delivers €5 of incremental revenue •  Effectiveness of newspapers magazines, direct mail and door drops •  Compare the effectiveness of these print media to other media •  Consider the impact that the weight of print media has on its effectiveness and overall campaign effectiveness •  Understand how this has changed over time
  4. 4. 4   THE EFFECTIVENESS (RROI) OF MEDIA TYPES IN DIFFERENT PRODUCT CATEGORIES
  5. 5. 5   EFFECTIVENESS ALL MEDIA Total FMCG Category – Europe  1.51      1.86      0.90      1.55      3.31      1.61      2.30     €0.0   €0.5   €1.0   €1.5   €2.0   €2.5   €3.0   €3.5   TV   Radio   Outdoor   Online   Cinema   Newspaper   Magazine   Door  drops   Direct  mail   Revenue  ROI  
  6. 6. 6   EFFECTIVENESS ALL MEDIA Total Services Category – Europe  11.57      7.41      8.43      9.93      5.71      9.43      8.29      3.78      4.91     €0   €2   €4   €6   €8   €10   €12   €14   TV   Radio   Outdoor   Online   Cinema   Newspaper   Magazine   Door  drops   Direct  mail   Revenue  ROI  
  7. 7. 7   EFFECTIVENESS ALL MEDIA FMCG - Food and Drink Category - Europe  1.76      2.48      0.99      1.58      3.10      1.85      3.27     €0.0   €0.5   €1.0   €1.5   €2.0   €2.5   €3.0   €3.5   TV   Radio   Outdoor   Online   Cinema   Newspaper   Magazine   Door  drops   Direct  mail   Revenue  ROI  
  8. 8.  8.07      7.86      7.45      9.71      9.08      8.80      8.48      6.33      5.33     €0.0   €2.0   €4.0   €6.0   €8.0   €10.0   €12.0   TV   Radio   Outdoor   Online   Cinema   Newspaper   Magazine   Door  drops   Direct  mail   Revenue  ROI   8   EFFECTIVENESS ALL MEDIA Retail Category - Europe
  9. 9. 9   EFFECTIVENESS ALL MEDIA services Technology Category – Europe  2.44      1.21      0.71      1.97      3.10      2.21      4.62      2.66      3.80     €0.0   €0.5   €1.0   €1.5   €2.0   €2.5   €3.0   €3.5   €4.0   €4.5   €5.0   TV   Radio   Outdoor   Online   Cinema   Newspaper   Magazine   Door  drops   Direct  mail   Revenue  ROI  
  10. 10. 10   WHAT IS THE OPTIMAL SHARE FOR PRINT MEDIA?
  11. 11. 11   EFFECTIVENESS NEWSPAPERS FMCG - Europe Newspapers RROI by tertile – best at 5-12% Example: when newspapers advertising represent 5-12 % of the media mix the RROI is 1.71  1.29      1.71      1.34     €0.0   €0.5   €1.0   €1.5   €2.0   Low   Medium   High   1  –  5%   5  –  12%   12  –  55%  
  12. 12. 12   EFFECTIVENESS MAGAZINES FMCG - Europe Magazines RROI by tertile – use limited budget 1  –  4%   4  –  10%   11  –  36%    1.98      1.44      1.76     €0.0   €0.5   €1.0   €1.5   €2.0   €2.5   Low   Medium   High  
  13. 13. 13   EFFECTIVENESS NEWSPAPERS Services - Europe 1  –  7%   7  –  17%   18  –  61%    4.33      6.05      14.60     €0.0   €2.0   €4.0   €6.0   €8.0   €10.0   €12.0   €14.0   €16.0   Low   Medium   High   Newspapers RROI by tertile – use substantial budget
  14. 14. 14   EFFECTIVENESS MAGAZINES Services - Europe 0  -­‐  2%   2  -­‐  3%   4  –  11%    2.15      3.81      4.58     €0.0   €0.5   €1.0   €1.5   €2.0   €2.5   €3.0   €3.5   €4.0   €4.5   €5.0   Low   Medium   High   Magazines RROI by tertile - ideal more than 4%
  15. 15. 15   EFFECTIVENESS DIRECT MAIL Total Services - Europe 1  –  5%   6  –  11%   11  –  29%    4.88      4.11      4.41     €3.6   €3.8   €4.0   €4.2   €4.4   €4.6   €4.8   €5.0   Low   Medium   High   Direct mail RROI by tertile – go niche or over 11%
  16. 16. 16   EFFECTIVENESS DOOR DROPS Total Services - Europe 8  –  12%   12  –  14%   15  -­‐  25%   2.49   3.34   5.34   €0.0   €1.0   €2.0   €3.0   €4.0   €5.0   €6.0   Low   Medium   High   Door drops RROI by tertile – best over 15%
  17. 17. 17   HOW NEWSPAPERS AFFECTS TOTAL CAMPAIGN EFFECTIVENESS FMCG - Europe 1  –  5%   5  –  12%   12  –  55%   0.78    1.50      1.18      0.86     €0.0   €0.2   €0.4   €0.6   €0.8   €1.0   €1.2   €1.4   €1.6   No  newspapers   Low   Medium   High   At any budget tertile newspapers increase the campaign effectiveness
  18. 18. 18   HOW MAGAZINES AFFECTS TOTAL CAMPAIGN EFFECTIVENESS FMCG - Europe 0  –  4%   4  –  9%   10  –  26%    0.83      1.33      1.37      1.11     €0.0   €0.2   €0.4   €0.6   €0.8   €1.0   €1.2   €1.4   €1.6   No  magazines   Low   Medium   High   At any budget tertile magazines increase the campaign effectiveness
  19. 19. 19   HOW NEWSPAPERS AFFECTS TOTAL CAMPAIGN EFFECTIVENESS Total Services - Europe 0  –  7%   7  –  17%   17  –  59%    3.87      3.13      5.12      9.51     €0.0   €2.0   €4.0   €6.0   €8.0   €10.0   No  newspapers   Low   Medium   High   Over  double  increase  of  RROI   at  highest  terNle  of   newspaper  use  in  campaign  
  20. 20. 20   HOW MAGAZINES AFFECTS TOTAL CAMPAIGN EFFECTIVENESS Total Services - Europe 0  -­‐  1%   1  -­‐  3%   3  –  42%    6.80      2.57      3.47      7.06     €0.0   €1.0   €2.0   €3.0   €4.0   €5.0   €6.0   €7.0   €8.0   No  magazines   Low   Medium   High   Spend  nothing  or  at  least  3%  
  21. 21. 21   HOW MAGAZINES AFFECTS TOTAL CAMPAIGN EFFECTIVENESS FMCG - UK 1  –  4%   4  –  7%   9  –  12%    0.76      0.70      1.75      1.54     €0.0   €0.4   €0.8   €1.2   €1.6   €2.0   No  magazines   Low   Medium   High   Spend  at  least  4%  of  budget  
  22. 22. 22   HOW NEWSPAPERS AFFECTS TOTAL CAMPAIGN EFFECTIVENESS TOTAL SERVICES - UK 1  –  4%   4  –  7%   9  –  12%    3.28      5.21      7.53      10.45     €0.0   €2.0   €4.0   €6.0   €8.0   €10.0   €12.0   No  newspapers   Low   Medium   High   Always  include  newspapers,   the  more  the  beTer  
  23. 23. 23   HOW DIRECT MAIL AFFECTS TOTAL CAMPAIGN EFFECTIVENESS TOTAL SERVICES - UK 1  –  14%   15  –  18%   18  –  39%    7.83      8.74      5.18      3.05     €0.0   €2.0   €4.0   €6.0   €8.0   €10.0   No  direct  mail   Low   Medium   High   Best  spend  between  1-­‐14%   of  budget  
  24. 24. 24   CLEAR EVIDENCE THAT USING ANY PRINT IMPROVES CAMPAIGN EFFECTIVENESS Optimal use of Print media will deliver more revenue, but using it at any level of investment is always beneficial to a campaign Overall  campaign  effecNveness  always  higher  when   magazines  are  used   Including  newspapers  always  improves  overall   campaign  effecNveness  
  25. 25. 25   THE IMPACT OF PRINT MEDIA ON THE EFFECTIVENESS OF OTHER MEDIA TYPES
  26. 26. 26   PRINT’S IMPACT ON TV EFFECTIVENESS FMCG - Europe  0.95      1.53      1.74      1.77      0.87      1.37      1.61      1.50     €0.00   €0.20   €0.40   €0.60   €0.80   €1.00   €1.20   €1.40   €1.60   €1.80   €2.00   TV  alone   TV  with  print   TV  with  online   TV  with  online  and  print   Revenue  ROI   TV  RROI   Total  Comms  RROI  
  27. 27. 27   PRINT’S IMPACT ON TV EFFECTIVENESS FMCG - Europe 5.15    11.32      7.75      8.81      7.66      9.46      6.34      7.64     €0.00   €2.00   €4.00   €6.00   €8.00   €10.00   €12.00   TV  alone   TV  with  print   TV  with  online   TV  with  online  and  print   Revenue  ROI   TV  RROI   Total  Comms  RROI  
  28. 28. 28   NEWSPAPERS IMPACT ON TV EFFECTIVENESS FMCG - UK  4.82     7.59   €0.0   €1.0   €2.0   €3.0   €4.0   €5.0   €6.0   €7.0   €8.0   No  newspapers   With  newspapers   TV  RROI  
  29. 29. 29   MAGAZINES IMPACT ON TV EFFECTIVENESS FMCG - UK 0.89    1.18     €0.0   €0.2   €0.4   €0.6   €0.8   €1.0   €1.2   €1.4   No  magazines   With  magazines   TV  RROI  
  30. 30. 30   NEWSPAPERS IMPACT ON ONLINE EFFECTIVENESS UK 6.41   9.61   €0.0   €2.0   €4.0   €6.0   €8.0   €10.0   €12.0   No  newspapers   With  newspapers   Online  RROI  
  31. 31. 31   ADDITIONAL REVENUES WITH AN OPTIMAL BUDGET ALLOCATION FOR NEWSPAPERS AND MAGAZINES
  32. 32. 32   BUDGET ALLOCATION EUROPE 1000+ cases – Services technology - FMCG - Europe 31%   15%   15%   16%   16%   16%   10%   11%   1%   5%   6%   27%   31%   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   FMCG   Services  -­‐   Technology   TV   Online   Newspapers   Magazines   Door  Drops   Direct  Mail   Other  
  33. 33. 33   BUDGET ALLOCATION OPTIMISATION FMCG - Europe 15%   6%   16%   12%   10%   28%   27%   13%   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   Average   OpNmal   Other   Direct  Mail   Door  Drops   Magazines   Newspapers   Online   TV  31%   40% Increase print share from 26% to 41%
  34. 34. 34   THE REVENUE INCREASE WITH OPTIMISED PRINT ALLOCATION FMCG - Europe Europe FMCG campaigns deliver €0.64m incremental revenue with €1 mio investment and €0.75m additional revenues when print media investment is optimised (+17%) 1.00   1.64   1.75   0.00     0.20     0.40     0.60     0.80     1.00     1.20     1.40     1.60     1.80     2.00     Inv/Revenue,  m   Investment   Revenue*   OpNmised   Revenu  
  35. 35. 35   BUDGET ALLOCATION OPTIMISATION Services Technologies - Europe 16%   20%   16%   15%  11%   3%  5%   12%  6%   20%  31%   5%   0%   10%   20%   30%   40%   50%   60%   70%   80%   90%   100%   Average   OpNmal   Other   Direct  Mail   Door  Drops   Magazines   Newspapers   Online   TV   15% 25% Increase print share from 38% to 50%
  36. 36. 36   THE REVENUE INCREASE WITH OPTIMISED PRINT ALLOCATION Services Technology - Europe  €  1.00      €  2.35      €  2.63      €  -­‐          €  0.50      €  1.00      €  1.50      €  2.00      €  2.50      €  3.00     Inv/Revenue,  m   Investment   Revenue*   OpNmised   Revenue   Europe Services Technology campaigns deliver €1.35m incremental revenue (with investment of €1m), with optimised print budget the additional revenues are €0.28m (+ 21%)
  37. 37. 37   APPENDIX
  38. 38. 38   METHODOLOGY OF THE META ANALYSIS Meta analysis is the “analysis of individual analysis results”, pooled and re-analysed so as to gain deeper insights from wider experience Using the BrandScience results vault of previous econometric model studies as our universe it is possible to: •  Understand how different print media deliver for clients across different categories •  Understand how different print media affect the performance of a campaign •  Identify the rules to improve the use of print media in future campaigns Market mix modelling is a statistical method for examining the relationship between one dependent variable and a set of several explanatory variables •  Originally used to analyse the economy, now to analyse marketing mix •  Create a formula or recipe for your sales: •  Sales = C + X*Distribution + Y*Price + Z*Market trend + W*Advertising + … •  Help understand all the factors driving sales (not just communications), not just factors under your control
  39. 39. 39   ECONOMETRIC MODELS NEED TO CONSIDER ALL THE FACTORS THAT COULD INFLUENCE THE KPI Advertising New product/ packaging changes Price mix/ promotions Competitors External coverage/ PR/WOM Availability/ distribution Economic/ market trends Your Brand Key Metric
  40. 40. 40   METHODOLOGY OF THE META ANALYSIS Individual econometric models from Ominicom media clients FMCG Europe •  Av spend = x •  % Print = y •  TV RROI = z Services UK •  Av spend = x •  % Print = y •  TV RROI = z Goods Europe •  Av spend = x •  % Print = y •  TV RROI = z
  41. 41. 41   SAMPLE SIZES AND INFORMATION ON COUNTRIES IN THE ANALYSIS ANY PRINT RROI NEWSPAPER RROI MAGAZINE S RROI DOOR DROPS RROI DIRECT MAIL RROI Europe 377 337 99 27 42 UK 123 112 19 27 30 Germany 31 20 16 Belgium 4 4 Czech Republic 6 6 Denmark 91 83 25 1 Spain 32 32 7 2 Finland 7 4 3 France 7 7 Ireland 5 5 Italy 4 4 Norway 40 39 18 1 Portugal 3 1 3 Sweden 24 20 8 8
  42. 42. 42   RESULTS AVAILABLE BY MARKET AND CATEGORY CATEGORY EUROPE UK GERMANY FMCG + + + SERVICES - - + GOODS + SUB CATEGORY EUROPE UK GERMANY HOUSEHOLD - HEALTH AND BEAUTY + FOOD/DRINK + + AUTOMOTIVE - FINANCIAL SERVICES - LEISURE & ENT - RETAIL + _ TECHNOLOGY + + TRAVEL + +
  43. 43. 43   More information: Ulbe Jelluma ulbe.jelluma@printpower.eu www.printpower.eu #printpower #ulbe Print Power Ltd Icon Centre Eastern Way Daventry NN11 OQB United Kingdom

×