- Magazines provide high profit ROI, especially for beauty and finance brands, but receive only 3% of ad spending despite strong performance.
- Analysis showed magazines were the top performer on channel profit ROI for beauty brands, driving 164% improvement, and increased profit ROI 68% for finance brands.
- Increasing magazine investment across all markets by £220 million, or taking spending back to 2015 levels, could deliver optimal profit ROI across categories.
- Magazines work well in combination with other channels like TV and online video, driving uplifts of 34-44% on business metrics. They are particularly effective for customer acquisition.
- The conclusion is that advertisers could optimize campaign profit ROI by rebalancing media mixes
6. Key questions answered
• What is the gap in investment across the market?
• What are optimum levels of investment for advertisers?
• How well do magazines perform on profit ROI?
16. • Magazines top performer on channel profit ROI for beauty
• A beauty brand already investing in magazines can have
confidence in their decision
• Beauty brands not using magazines should move
investment into
24. Yet magazines only receive 3% of adspend
39%
29%
11%
9%
4%
3%
3%
1%
1%
TV
Digital Display
OOH
Digital Search
Newspaper
Radio
Magazine
Cinema
Digital Video
28. Magazines work well in combination with
other channels
1.4
1.9
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
TV without magazines TV with magazines
Magazine multiplier effects with TV
Source: IPA Databank, 2012-2016 UK cases
Media combination
Uplift 34%
Avg.no.verylargebusinesseffects
29. Magazines work well in combination with
other channels
1.3
1.8
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
O/L Videos without magazines O/L Videos with magazines
Magazine multiplier effects with online video
Media combination
Source: IPA Databank, 2012-2016 UK cases
Avg.no.verylargebusinesseffects
Uplift 44%
30. Magazines really deliver on customer acquisition
42%
20%
17%
51%
35%
44%
0%
10%
20%
30%
40%
50%
60%
Sales gain Market share Customer acquisition
Detailed business effects uplifts
NOT using magazines Using magazines
Uplift
23%
%Reportingverylargebusinesseffects
Source: Bridging the long and short term divide, Peter Field, Magnetic 2017
Uplift
74%
Uplift
161%
31. Conclusions
• There is an opportunity to optimise campaign profit ROI
by investing 5% into printed magazines
• This is about re-balancing the media mix
• Beauty brands can be confident in their investment
• A strong case for finances brands to consider magazines