Magazine Accountability

1
Managing Mix in a Soft Economy
2
If You Build It They Will Come
3
Except when.

• Disposable Income
• Stock Market
• Employment Levels
• Consumer Confidence
• Willingness to Spend

4
Consumers Forced to Make Choices
What I need
What I want
5
The Struggle Within

• Soft Economy
• Ill buy Dunkin
• Ill buy store brands
• Im staying put
• Ill shop Wal-Mart
• Ill drive my old car

• Strong Economy
• I want Starbucks
• I want the best brands
• I want a new house
• I want Target
• I want a new car

6
The Marketing Challenge
7
The Components of Persuasion
Purchase Funnel
Brand Awareness
Ad Recall
Brand Imagery
Brand Familiarity
Purchase Intent
Drive to Web
8

• Maximizing Persuasion in the Lower Funnel

9

• Data Sources
• 52 Cross-Media ROI Studies
• 4 Auto Specific Studies
• All Funded by Advertisers
• 2 Auto Specific Surveys
• 3 Independent Digital Studies
• Media Neutral Formatting

10

• Persuasion
• Patterns

11
Media Impact Across the Funnel(Dynamic Logic)
Average Percentage Point Increases versus Control
TV
Aided Brand Awareness
Brand Favorability
Purchase Consideration
Source Dynamic Logic. 32 Cross-Media
Accountability Studies, 2004-2007
12
Media Impact in the Lower Funnel(Purchase
Consideration/ Dynamic Logic and Marketing
Evolution)
Average Percentage Point Increases versus Control
TV
Dynamic Logic
Marketing Evolution
Base 32 Studies Source Dynamic Logic/Millward
Brown, 20042007
20 Studies Source Marketing Evolution, 2005-2007
13

Media Impact in Automotive (Marketing Evolution)

Incremental Effect of Media on Brand Familiarity
Auto Brand Familiarity
Aggregate 4 studies. Pre/post point
change. Source Marketing Evolution, 4 Automotive
Cross-Media Accountability Studies, including
Asian, U.S. and European nameplates, 20042007
14
Media Impact in Automotive (Marketing Evolution)
Incremental Effect of Media on Purchase
Consideration
Automotive Purchase Consideration
Source Marketing Evolution. 4 Automotive
Cross-Media Accountability Studies, including
Asian, U.S. and European nameplates, 2004-2007
15
Media Influence on Brand Owners (Versus Budget)
Media Influence on Brand Owners (Versus Budget)
Source BIGresearch, 2008
16
Media Influence on Brand Owners (Versus Budget)
Media Influence on Brand Owners (Versus Budget)
Source BIGresearch, 2008
17
Media Influence on Brand Intenders (Versus
Budget)
Source BIGresearch, 2008
18

• The Connection Between Purchase Consideration and
  Web Traffic

19

• The Handoff

Source Time Inc. and CNW Research 2007
Automotive Purchase Process
20
Creating a New Car Shopping List
Information Stage
Awareness Stage
Decision Stage
Why is this important?
2007
6 mo. 5 mo. 4 mo. 3 mo. 2 mo. 1 mo. 2 wk.
Source Time Inc. and CNW Research 2007
Automotive Purchase Process
21

• By the third month, needs have been framed and
  competitive product attributes begin to dominate,
  with possible vehicle choices firming.
• Once this phase has passed, the ability to get a
  product added to the shopping list is difficult
  and expensive.
• Art Spinella, President CNW Marketing Research

Source Time Inc. CNW Research 2007
Automotive Purchase Process
22
The Hand-off

• To On-line Search

23
Initiating Online Searches
What medium influences you to start a search For
merchandise online?
Source BIGresearch In-Market Media Usage Survey
among 15,000 adults, ages 18 to 65, 2007
24
By Gender and Age
25
Initiating Online Searches by Gender and Age
What medium influences you to start a search
for merchandise online? ( By Medium)
Source BIGresearch In-Market Media Usage Survey
among 15,000 adults, ages 18 to 65, 2007
26
Qualified Searches
27
Initiating Qualified Online Searches
Percent Who Made Purchase After Seeing an Ad and
Conducting A Search
Source JupiterResearch In-Market Media Usage
Survey, 2007
28
Magazines Impact on Auto Specific Web Traffic
Percent Visiting Automotive Website After Seeing
Magazine Ad
Source Marketing Evolution. 3 Automotive
Cross-Media Accountability Studies, including
Asian, U.S. and European nameplates, 2004-2007
29
Digital Platforms
30
Websites That Are Effective Platforms for Video
Ads
Source Eyes On The Internet, Online Publishers
Association, June 2007
31
Why?
32
That Answer Starts With The Consumer

• Engages on Your Time
• Ads Part of the Experience
• Readers Opt In

• Time Compressed
• Push Back on Ads
• Catch me if you can

33
Conclusions

• In automotive, Marketplace Momentum is no
  longer a given
• More than ever, marketers will have to create
  momentum for their brands
• Lower funnel performance will be key
• Advertisers who manage mix to this new reality
  will be at an advantage
• Magazine brands can help create that advantage

34
Thank You!