The ROI Study: Insights on Print Newsbrands' Impact on Total Campaign ROI

Analysis by Sally Dickerson from Benchmarketing reveals that print newsbrands significantly boost campaign ROI, making TV and online display more effective. The study recommends increasing spend on print newsbrands to previous levels for optimal returns, with further enhancements through digital newsbrands. The study covers six categories and provides data on adspend evolution over the past five years using SMI data.

• ROI Study
• Print Newsbrands
• Campaign Effectiveness
• Adspend Evolution
• Marketing Strategy

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1. The ROI study Sales return A meta-analysis of 500+ econometric models 201 2011 1 2016 2016

2. The ROI study The ROI study Analysis conducted by Sally Dickerson, managing director of effectiveness consultancy Part of the Omnicom Media Group A graduate in Mathematics from Oxford, Sally joined Mars UK as a market research analyst, later joining their Management Science division. She co-founded The Decision Shop, part of Bates/Cordiant then in 1999 joined the then OMD group and set up ROI (Return on Investment) focused on market mix modelling, which became OMD Metrics, then BrandScience, and is now Annalect Marketing Sciences. In 2016 Sally created a new consultancy business, Benchmarketing, running strategic quantitative consultancy projects using meta analysis. She has also contributed to over 30 IPA advertising effectiveness awards, been an IPA effectiveness award judge, and run marketing effectiveness masterclasses for the Marketing Society and Chartered Institute of Marketing. She was a judge on the inaugural Cannes Creative Effectiveness Lions panel, in 2011 and again in 2013.

3. 3 key questions 1 1 2 2 3 3 What proportion of the budget should be spent on print newsbrands to deliver optimum total campaign ROI? How effective are campaigns that use print newsbrands versus those that do not? What impact do print newsbrands have on the effectiveness of other media channels?

4. The evidence 1 1 2 2 3 3 Print newsbrands boost overall campaign ROI by three times on average Print newsbrands make TV twice as effective and online display four times as effective Spend on print newsbrands should return to 2013 levels, and can be boosted further by use of digital newsbrands Source: Benchmarketing analysis of 500+ econometric models

5. The study The study analysed analysed six categories six categories Finance Retail Automotive Combined services FMCG Travel & Transport

6. How has adspend evolved in the last five years?

7. SMI data provides a representative picture of actual media mix Actual media spend from booking data provided by 65% of UK agencies Detailed breakdown of digital spend across display, video and paid search Data across all above the line media Breakdown of newsbrand spend across print and digital Source: SMI (Standard Media Index)

8. Across all categories, total newsbrand spend has declined since 2011 15.4 15.4% % 14.4 14.4% % 13.7 13.7% % 11.9 11.9% % 9.7 9.7% % 2011 2012 2013 2014 2015 Source: Total available categories SMI 2011-2015

9. Digital channels accounted for a third of media spend in 2015 Digital channels accounted for a third of media spend in 2015 31.6% 43.0% 50 % 9.7% 12.6% 11.1% 9.4% 7.6% 5.8% 3.6% 3.4% 2.1% 1.4% 0% Magazines TV Cinema OOH Radio Print Online newsbrands Other digital display Digital video Search newsbrands Source: Total available categories SMI 2011-2015

10. Digital has grown from 21.7% in 2011 to 31.6% in 2015 % spend over the year % spend over the year - - All categories All categories TV Cinema OOH Radio Magazines Print newsbrands Online newsbrands Other digital display Digital video Search 2015 7.6% 2.1% 2014 9.6% 2.3% 2013 11.4% 2.3% 2012 12.5% 1.9% 2011 13.7% 1.7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Total available categories SMI 2011-2015

11. Across all categories print newsbrand spend has declined since 2011 13.7 13.7% % 12.5 12.5% % 11.4 11.4% % 9.6 9.6% % 7.6 7.6% % 2013 2014 2011 2012 2015 Source: Total available categories SMI 2011-2015

12. In retail, print newsbrands remain the #2 channel despite the decline 30.1% 30.1% 28.1% 28.1% 27.1% 27.1% 22.3% 22.3% 1 16.5% 6.5% 2013 2014 2011 2012 2015 Source: Total available categories SMI 2011-2015

13. In automotive, spend in print newsbrands has seen sharp decline 18.7 18.7% % 16.1 16.1% % 12.7 12.7% % 10.1 10.1% % 7.7 7.7% % 2013 2014 2011 2012 2015 Source: Total available categories SMI 2011-2015

14. In finance, spend in print newsbrands has declined less sharply 13.1 13.1% % 10.7 10.7% % 9.8 9.8% % 8.3 8.3% % 7.7 7.7% % 2013 2014 2011 2012 2015 Source: Total available categories SMI 2011-2015

15. Has the pendulum swung too far?

16. Our exploration

17. Econometrics identifying and assigning a weight to the ingredients driving sales Advertising x medium and message Advertising x medium and message PR, Media mentions, Buzz PR, Media mentions, Buzz Pricing Pricing vs vs competitors competitors Store universe changes Store universe changes Product/Range changes Product/Range changes Brand awareness/perceptions Brand awareness/perceptions Competitor marketing Competitor marketing Competitor routes to market Competitor routes to market Technological change Technological change Seasonality Seasonality Economic change Economic change

18. Base Channel 2 Distribution 1 Channel 3 Distribution 2 Channel 4 Promotions Channel 5 Channel 1 Calculating revenue return on investment (RROI)

19. Sales m due to spend Spend m RROI Calculating revenue return on investment (RROI) Channel 1 3.0 2.5 1.20 Channel 2 0.5 0.5 1.00 Channel 3 3.0 1.5 2.00 Channel 4 1.5 1.0 1.50 Channel 5 0.6 0.5 1.20 Total 8.6 6.0 1.43

20. A meta analysis of multiple econometric cakes

21. Defining the relationship between spend and revenue return 1.6 Each dot on the graph represents a case in our Results Vault 1.4 R = 0.9556 1.2 1.0 Revenue ROI Revenue ROI 0.8 0.6 Here the data suggests as the % of print newsbrands in the mix increases, so does effectiveness 0.4 0.2 0.0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Print newsbrands % of total communications spend Print newsbrands % of total communications spend This is an example chart, not real data

22. Creating tertile groups of cases shows the revenue return for low, medium and high spend levels 1.6 1.4 1.2 1.0 Revenue ROI Revenue ROI 0.8 0.6 0.4 0.2 0.0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% % of total communications spend % of total communications spend 1.5 1.0 0.5 0.0 Tertiles Tertiles of % of total communications spend of % of total communications spend This is an example chart, not real data

23. 1 1 How effective are campaigns that use print newsbrands versus those that do not?

24. 2015 spend levels 16.5% Retail 25.18 18.82 18.25 Print newsbrands boost total campaign ROI by 2.8 times 2.8 times, but the category is failing to spend at optimum levels Total campaign revenue 9.08 ROI High 31-100% Medium 20-31% No print newsbrand spend Low 2-20% Print newsbrand % of total campaign spend in retail Source: Benchmarketing/BrandScience Results Vault 2011 to 2015

25. Automotive 2015 spend levels 7.7% Automotive 5.55 4.81 4.55 Print newsbrands boost total campaign ROI by 70%, but advertisers are neglecting this at a cost to their business 3.25 Total campaign revenue ROI Medium 3-10% High 10-31% No print newsbrand spend Low 1-3% Print newsbrand % of total campaign spend Source: Benchmarketing/BrandScience Results Vault 2011 to 2015

26. Finance Automotive 2015 spend levels 7.9% Finance 2015 spend levels 7.9% 8.47 6.76 Print newsbrands boost overall campaign ROI by up to 5.7 times but advertisers are missing out on large additional revenues by not including newsbrands in the mix Total 3.91 campaign revenue ROI 1.49 Medium 7-22% High 22-37% No print newsbrand spend Low 2-5% Print newsbrand % of total campaign spend Source: Benchmarketing/BrandScience Results Vault 2011 to 2015

27. 2 2 What impact do print newsbrands have on the effectiveness of other media channels?

28. Combined services 12.22 10.82 Print newsbrands make TV spend work twice as hard 6.49 TV 5.72 revenue ROI Medium 10-12% High 12-18% No print newsbrand spend Low 2-10% Print newsbrand % of total campaign spend in combined services Source: Benchmarketing/BrandScience Results Vault 2011 to 2015. Combined services includes: Finance, Retail, Telecoms, Travel & Leisure, Media, Government/Social/Political, Other Services(Online & Offline)

29. Combined services 55.98 Print newsbrands boost online display and video by up to four times Online display revenue 20.96 17.42 ROI 12.46 Low 2-10% Medium 10-12% No print newsbrand spend High 12-18% Print newsbrand % of total campaign spend in combined services Source: Benchmarketing/BrandScience Results Vault 2011 to 2015. Combined services includes: Finance, Retail, Telecoms, Travel & Leisure, Media, Government/Social/Political, Other Services(Online & Offline)

30. Finance Automotive Finance 2015 spend levels 7.9% 13.33 12.10 8.28 Print newsbrands also boost online RROIs by an average of 2.3 times in finance Online display revenue ROI 4.84 Medium 10-12% High 12-18% No print newsbrand spend Low 2-10% Print newsbrand % of total campaign spend in finance Source: Benchmarketing/BrandScience Results Vault 2011 to 2015

31. Finance Automotive Combined Finance services 2015 spend levels 7.9% 55.82 40.45 Combined services: print newsbrands boost radio revenue by up to 10 times Radio revenue ROI 11.34 4.02 Medium 7-22% High 22-37% No print newsbrand spend Low 2-7% Print newsbrand % of total campaign spend in combined services Source: Benchmarketing/BrandScience Results Vault 2011 to 2015. Combined services includes: Finance, Retail, Telecoms, Travel & Leisure, Media, Government/Social/Political, Other Services(Online & Offline)

32. Finance Finance 2015 spend levels 7.9% 3.21 3.15 Radio revenue Print newsbrands boost radio revenue by up to 1.9 times in finance ROI 1.70 0.45 Medium 7-22% High 22-37% No print newsbrand spend Low 2-7% Print newsbrand % of total campaign spend in finance Source: Benchmarketing/BrandScience Results Vault 2011 to 2015

33. 3 3 What proportion of the budget should be spent on print newsbrands to deliver optimum total campaign ROI?

34. 900 Online Display The data from the meta analysis allows us to build response curves for each channel, by which we calculate the optimum split for any given budget TV Online Search Newspapers VOD Revenue m Outdoor Magazines Radio TV Sponsorship Cinema 0 80 Media investment m Source: BrandScience channel planning sales analysis 2015

35. Print newsbrands should form a significant proportion of the mix for all budget levels in supermarket retail Recommended % spend on print newsbrands to optimise total campaign ROI 27% 27% 26% 26% 26% 26% 24% 24% 22% 22% 21% 21% 20% 19% 13% 0% 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Total annual campaign budget m Source: BrandScience channel planning sales analysis 2015

36. Print newsbrand % spend for maximum campaign effect Print newsbrand spend % 2015 Typical spend p.a. m Category Retail Supermarkets 27% 16.5% 40m Source: Benchmarketing/BrandScience Results Vault 2011 to 2015 Source: BrandScience channel planning sales analysis 2015

37. Print newsbrands should form a significant proportion of the mix for finance brands Recommended % spend on print newsbrands to optimise total campaign ROI 62% 51% 34% 26% 21% 17% 15% 13% 12% 11% 5 10 15 20 25 30 35 40 45 50 Total annual campaign budget m Source: Benchmarketing/BrandScience Results Vault 2011 to 2015 Source: BrandScience channel planning sales analysis 2015

38. Finance Typical spend p.a. m Print newsbrand % spend for maximum campaign effect Print newsbrand spend % 2015 21% 13% for higher spends 25m (higher spends 50m) 8% Source: BrandScience channel planning sales analysis 2015

39. Print newsbrands should form at least 10% of the budget for automotive brands Recommended % spend on print newsbrands to optimise total campaign ROI 18% 17% 17% 15% 15% 14% 12% 12% 11% 11% 11% 11% 11% 10% 10% 10% 2 4 6 8 10 12 14 16 18 20 25 30 35 40 45 50 Total annual campaign budget m Source: BrandScience channel planning sales analysis 2015

40. Automotive Print newsbrand % spend for maximum campaign effect Typical spend p.a. m Print newsbrand spend % 2015 11% 20m 8% Source: BrandScience channel planning sales analysis 2015 Source: BrandScience channel planning sales analysis 2015

41. The pendulum has swung too far The pendulum has swung too far for print newsbrands for print newsbrands and advertisers are missing out are missing out and advertisers 13.7 13.7% % 12.5 12.5% % 11.4 11.4% % 9.6 9.6% % 7.6 7.6% % 2013 2014 2016 2017 2011 2012 2015 Source: SMI (Standard Media Index)

42. The evidence The evidence 1 1 2 2 3 3 Print newsbrands boost overall campaign ROI by three times on average Print newsbrands make TV twice as effective and online display four times as effective Spend on print newsbrands should return to 2013 levels, and can be boosted further by use of digital newsbrands

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