The power of magazines PPA

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The power of magazines PPA

  1. 1. The Power of Magazines
  2. 2. The Power of MagazinesThree key elementsBrand PowerThe consumer relationship with magazinesMagazines and RetailThe business case for magazinesMaking magazines work harder in the retail environmentWorking in Partnership to Grow the CategoryWhat can we do together?
  3. 3. Sources ReferencedNatMag Web Survey   Survey Interactive  Understanding Women IPC SouthBankTotal Market Report MarketforceTesco Research Marketforce/SPASpecialist Magazine Publishers Jim Bilton Wassenden/BrandlabPromotional Effectiveness Marketforce/SPAPPA Absorbing Media PPAMagazines in a Supermarket Economy Jim Bilton Wassenden/BrandlabMagazines and the Independent Retailer im Bilton Wassenden/BrandlabMagazines and the Multiple Retailer Jim Bilton Wassenden/BrandlabMagazine Town Research Jim Bilton Wassenden/BrandlabIPC Media Values IPC MediaIGD UK Grocery Outlook 2007 IGDHenley Centre, Magazines into 2000 Henley CentreHenley Centre, Delivering Engagement Henley CentreConvenience, What do shoppers want in‐store IGDABC Reports MarketforceA Case for Magazines at Retail Comag, Time Warner USPurchase Behaviour 2005 FrontlinePurchase Behaviour 2002 FrontlineMagazine Footfall DunhumbySupermarket Cross Purchase LMG NectarMarketforce Promotions Marketforce
  4. 4. Brand Power
  5. 5. “My magazine speaks to me in a way and at a time that no-one else can”Magazines Make People’s Lives Better
  6. 6. The biggest celebrities…the gossip…real life stories
  7. 7. Cool Chic Sexy
  8. 8. The fast& the furious
  9. 9. “Thanks for helping meunderstand andfeel safe…”Susan Carrington, Sussex
  10. 10. “I read yourarticle…Thanks forcaring….. “Tina Black, Bolton
  11. 11. “I used your week by week guide toteach my autistic son about our new arrival” Rebecca Bennett
  12. 12. “After 150 job applications you gave me theconfidence boost I needed to get on track” Anna Jakes, London
  13. 13. The only safe tan is a fake tan…thanks for lookingafter us! Cath, Kent
  14. 14. “I’ve been using somuch porn, I can’t facemy wife.Thanks for the sex tips”name not supplied!
  15. 15. “I was taking drugs at 13, aheroin addict by 18, clean at28, and now a runner. I havejust completed my firstmarathon”Jessica Stait chose LIFE
  16. 16. A trusted friend… 54% say that magazines  are a  source of information they  trust82% say that magazines are a useful source for ideas of what they should buy67% say that they are more likely to buy a product or service endorsed by a magazine
  17. 17. Can still be attractive in tough trading times • Recession can work in favour of magazines in a “stay at home” culture if  we get the messaging right. • An inexpensive indulgence • On average, read for two hours versus cinema costs of £9.50 and theatre of  £30 plus
  18. 18. Magazines and Retail
  19. 19. British shoppers spend £1.6 billion on magazines Consumers have a huge diversity of interests and passions 85% of adults read magazines; 80% men and 89% women 3,409 consumer magazines are published in the UK 80% of 15‐24s read one or more of these 78% of ABC1s read one or more of these (NRS) read one or more of these  An equally diverse magazine market caters for these needs
  20. 20. A communications tool reaching new audiences
  21. 21. Drive online business70% of online adults have been prompted to search by offline messaging (PPA Marketing ‘08) Magazines are the primary driver of online search  (RAMA ’07) In over 70% of product categories magazine  advertising is the primary driver of online purchase.  (PPA Marketing ‘08)
  22. 22. Our magazines drive shopper behaviour Advertising in this medium is helpful to guide buying M agazines 35% TV 24%Newspapers 22% Web 14%Supplements 13% Radio 6% Source: Absorbing Media 2002
  23. 23. Product launches in just 48 hours!
  24. 24. Magazines are the key footfall driver for non‐food More people buy magazines than other non‐food... 41.9% of all Tesco shoppers buy into the magazine category  – higher than Chocolate Bars, White Goods and Hardback Fiction White Goods 0.1% Chocolate Bars 35.3% Hard Back Fiction 7.2% Dunnhumby Previous Period: 26 weeks from 18‐Feb‐08 to 17‐Aug‐08 Most Recent Period: 26 weeks from 18‐Aug‐08 to 15‐Feb‐09
  25. 25. Magazines play an important role in top up shop (%) Total Total I am just picking up  Almost a 1/3 of magazine shoppers  one or two items are just popping to the kiosk area in store (e.g.  30 lunch/snacks/magazines/  (on a lunch time) papers/cigarettes etc) Main shop – I am  doing most of my food and  grocery shopping for this  36 week during this visit to the  store Top‐up shop – I am  picking up a few bits and  pieces for the household for  31 the next few days  Other 1 Source: Marketforce Promotional Effectiveness 2007
  26. 26. Magazines are highly cross purchased with other front of store categories… Since the beginning of the year  who’s being buying magazines  …? 48% of all                                               shoppers 44% of all                                                   shoppers 41% of all                                                        shoppers Source: LMG Nectar Jan – June 09
  27. 27. High frequency and repeat purchase (%) Total Total Once a week or more 38Over a 1/3 are buying  Once every couple of  14 weeksmagazines once a week  or more Once a month 30 Once every couple of  8 months Once every six months 2 Source: Marketforce Promotional Effectiveness 2007
  28. 28. Shoppers want a bigger area for magazines. They want to see them front of storeMagazine shoppers felt that alongside  making the newsstand easier to  browse and navigate, magazines  should be front of store in Tesco  Source: Research Now, Marketforce Online  % of respondents Survey June 2009 
  29. 29. Magazine shoppers are the most valuable… Magazine purchasers over index as  being 165 Tesco’s core Premium shoppers 160 (high frequency, high spend) 138 140 120 110 100 80 83 60 70 40 42 Premium Standard Potential Uncommitted Lapsing Gone‐aways Source: DunnHumby June 2008 MAT
  30. 30. …and they are also the most popular secondary purchase 21% Magazines are the most popular secondary purchase in  supermarkets, followed by flowers 10% 9% 8% 8% 5% 5% 4% 3% 3% 2% 1% 1% 1% 1% CDs/DVDs/Games Electrical products Confectionery Lottery Tickets Alcoholic drinks Greeting cards leisure products Newspapers Soft drinks Sandwiches Magazines Flowers Groceries Tobacco Books Outdoor and Source: PPA Project Newsstand 2006
  31. 31. Magazines and RetailIs there a correlation between range and market share? Tesco ranges almost 700 titles Sainsbury’s and Asda circa 500 titlesTesco’s share of the magazine market over indexes its share of the grocery market….. WHS stock over 2,100 titles and have the highest share in thehigh streetMartin Retail Group stock over 900 titles and out perform the traditional convenience sector
  32. 32. Enhancing the Retail Experience
  33. 33. Magazines make the shopping experience more enjoyable “Because the food shop is so  boring, I like to look at the  magazines first”82% of shoppers say that they enjoy the process of choosing which magazine to buy Survey Interactive May 2009
  34. 34. Magazines and Retail Generally people spend 4.4 minutes browsing 5.0 5.0 4.8 4.8 4.8 4.6 4.4 4.5 4.4 4.4 4.2 4.2 4.0 3.8  TOTAL  Young TV Trad Home Int Celeb Fashion & Women Guides Weeklies Weeklies Lifestyle Source: Understanding Women, IPC SouthBank 2005
  35. 35. Magazines make shopping more enjoyable52 % of respondents enjoyed shopping for magazines compared to:  • 39% in music & DVD’s • 49 % in health and beauty • 37% in beers, wines & spirits Survey Interactive May 2009
  36. 36. Magazines are essential for shopper satisfaction44% of respondents would be ‘likely’ or ‘very likely’ to switch to an alternative retailer if they could not find their favourite magazines.66% said they would go elsewhereSurvey Interactive 2009
  37. 37. The most enjoyable part of shopping… Enjoyment Of Store Areas (ASDA & Sainsbury’s)  Enjoy Enjoy Shopping Shopping There There Magazines 63 73% of respondents said that they bought  Magazines 63 magazines ‘on the spur of the moment “when  Bakery Bakery 49 49 they catch my eye” Music /DVD Music /DVD 48 48 Books Books 46 46 Fresh fruit & vegetables Fresh fruit & vegetables 42 42 Health & beauty Health & beauty 41 41 Beers, Wines & Spirits Beers, Wines & Spirits 36 36 Deli /Take-Away counters Deli /Take-Away counters 36 36 Fresh meat & poultry Fresh meat & poultry 31 31 Frozen food Frozen food 24 24 Source: Promotional Effectiveness / SPA 2007
  38. 38. Enhancing the Retail Experience Endorsing product choice Magazine brands edit choice for the consumer Products and services endorsed by trusted brands can increase  response rates by over 100%
  39. 39. Driving forward our shared goals Communicate key messages to 85% of the population Share customer research – co‐fund new research Cross‐sell and up‐sell more than any other category Help you champion magazines inside your business
  40. 40. The Power of Magazines

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