Why Magazines

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Why MagazinesThree Basic Reasons

• The relationship between the reader and the
  magazine
• Media planning considerations
• Proven ROI

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Media is everywhere!
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Too much information vying for consumer attention.
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Today, attention is the real currency of business
and individuals.
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Were not in the business of interrupting
consumers anymore. The whole goal is to engage
consumers as much as we can. The creative
contributes to that, but where that creative is
placed also contributes to that. Its not about
spots and dots anymore. Lorraine
HughesMarketing Magazine, July 29, 2003
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Magazines build relationships
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The Reader-Magazine Relationship
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The Reader-Magazine RelationshipReader
Involvement and Ad Impact

• Qualitative studies from around the world have
  shown and continue to show, that as Involvement
  measures increase, so too do measures of
  Advertising Effectiveness.

why magazines?
20 05
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Increased Involvement Means. . .
The Reader-Magazine RelationshipReader
Involvement and Ad Impact

• More interest in advertising (97) source 5
• More active responses to advertising (30-50 rule)
  source 10
• Higher ad recall scores (34) source 6
• Higher purchase intent (32) source 5

Source 1) TVQ (United States), 2) Publication Q
(UK), 3) Love Story (German), 4) Metropolitan
Areas Print Media Survey (South Africa), 5)
Study of the Relationship Between Interest in a
Publication and Interest in Products Advertised
in that Publication (Canada), 6) Starch Scores
by Interest Levels (Canada), 7) Leo Burnett
(United States), 8) Oglivy Mather (United
States), 9) The Effectiveness of the Medium
(Finland), 10) MRI (United States), 11) Roper
(Canada)
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Challenge
We know that increased involvement generates
increased advertising impact but . . . . . .
What is the best definition of reader involvement?
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The Reader-Magazine RelationshipReader
Involvement and Ad Impact
Knowledge Networks Study 2003 Objective
Determine which specific elements of magazine
involvement are the critical drivers of
advertising recall

• 31 Minutes Spent Reading
• Read At Home
• One of my Favourites
• Read 3 Days
• APX
• Read 4/4
• Primary Readers
• Took Any Action
• Considerable Interest in Advertising

Source Knowledge Networks, sponsored by The
Involvement Alliance (2003)
Took Any Action
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The Reader-Magazine RelationshipReader
Involvement and Ad Impact

• Knowledge Networks Study 2003
• The study found that the top 3 drivers of unaided
  
• advertising recall are
• Read 4/4 issues
• Read magazine for 31 minutes
• Rate magazine as One of my favourites

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Involvement Impact
The Reader-Magazine RelationshipReader
Involvement and Ad Impact
Knowledge Networks Study 2003
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The Reader-Magazine RelationshipReader
Involvement and Ad Impact
Involvement factors 4/4 Readers 51, 31 Min.
25, 8-10 Int. 24
Weighted by Population
PMB 2004 Two-Year Readership Database
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The Reader-Magazine RelationshipDimensions of
the Reader Experience

• Magazine Reader Experience Study 2003
• Objective
• Determine which reading experiences most drive
  magazine usage
• Determine which reading experiences most drive
  advertising impact

Source Media Management Center of Northwestern
University Commissioned by Magazine Publishers
of America and American Society of Magazine
Editors (2003)
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The Reader-Magazine RelationshipDimensions of
the Reader Experience

• Top Reader Usage Experiences
• I get value for my time and money
• It makes me smarter
• Its my personal time out
• I often reflect on it
• The stories absorb me
• I learn things first here
• Its part of my routine
• Its high quality/sophisticated
• I trust it
• I feel good when I read it

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The Reader-Magazine RelationshipDimensions of
the Reader Experience

• Top Ad Impact Experiences
• The stories absorb me
• I like some of the ads a lot
• Its high quality/sophisticated
• I often reflect on it
• It makes me smart
• I trust it
• I learn things first here
• It improves me, helps me try new things
• I feel good when I read it
• Its my personal time out

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The Reader-Magazine RelationshipDimensions of
the Reader Experience
How does Readers Digest Perform against the Top
10 Ad Impact Drivers?
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The Reader-Magazine RelationshipDimensions of
the Reader Experience
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Source Ipsos-Reid 2004
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The Reader-Magazine RelationshipCredibility and
Trust
Readers trust, along with readers commitment,
drives advertising effectiveness.
trust
commitment
action
Source Berlin Readership Symposium 1995
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The Reader-Magazine RelationshipCredibility and
Trust
Consumers Trust Believe in Magazine Ads
why magazines?
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Source Media Choices 2000, Feb00, Erdos Morgan
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The Reader-Magazine RelationshipCredibility and
Trust
Roper Trust Study 2004 A trusted magazine is
one that you believe is trustworthy and credible
with a good reputation. When you think of
magazines, which ONE magazine do you personally
trust the most? English Canada Readers Digest
17.2 1 French Canada Sélection du
RD 23.8 1
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The Reader-Magazine RelationshipActive
Involvement
Reading requires interest, energy and commitment.
Unlike television, magazines are an active
medium which require attention and involvement.
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The Reader-Magazine RelationshipActive
Involvement Climate for Learning
Magazines Are Actively Sought Out When Consumers
Are Ready-To-Buy
Most Informative Media Source ()
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Source Media Effectiveness Study, Thompson
Lightstone, 1995
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The Reader-Magazine RelationshipReceptivity
Consumers Pay Attention To Magazine Ads
Cable TV
Source Media Choices 2000, Feb00, Erdos Morgan
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The Reader-Magazine RelationshipReceptivity
Consumers Are Accepting of Magazine Ads
Source Media Choices 2000, Feb00, Erdos Morgan
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The Reader-Magazine RelationshipReceptivity
Response
Consumers Respond More to Magazine Ads
I often purchase a product or service as a
direct result of the advertising in or on. . .
Source Media Choices 2000 A Multi-Media
Involvement Study, Erdos Morgan, 1999
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The Reader-Magazine RelationshipReceptivity
Response
Consumers Respond More to Magazine Ads
I often purchase a product or service as a
direct result of the advertising in or on. . .
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Source Media Choices 2000 A Multi-Media
Involvement Study, Erdos Morgan, 1999
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The Reader-Magazine RelationshipPersonal
Relevance
Consumers Identify Most With Magazines
why magazines?
20 05
Source BBDO New York, Brand Fitness Study, 1999
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The Reader-Magazine RelationshipPersonal
Relevance
Magazines Are the Most Personal of All Media
Source Media Choices 2000, Feb 00, Erdos
Morgan
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The Reader-Magazine RelationshipPersonal
Relevance
Roper 2002 Which magazine would you most want
to be identified with? Readers
Digest 33 1 Which magazine do you feel best
meets your individual need and desires? Reader
s Digest 32 1
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The Reader-Magazine RelationshipPersonal
Relevance
Roper 2004 On a scale of 1-10 where 1 is Not
Very Relevant and 10 is Very Relevant, how
personally relevant do you find the following
publications to be?
Interpretation 23 of English Canadians rate
Readers Digest from 8-10 on 10 point Personal
Relevance scale.
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The Reader-Magazine RelationshipVolunteer
Audience

• Magazines are not an intrusive medium
• Readers are a volunteer audiencethey read the
  magazine because they want to they read the ads
  because they want to
• The stronger the bond between reader and the
  magazine, the greater the readership and response
  to both the editorial and the advertising within
  the magazine.

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The Reader-Magazine RelationshipTangibility

• Magazines communicate through tactility as well
  as visual means
• Tangibility is an intangible but a message is
  communicated from the fingertips to the brain
  when fingers come into contact with the magazine
  page.
• Evidence
• the need to hold the page when reading it
• the need to print out documents rather than read
  them off a computer screen.

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Media Considerations
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Media ConsiderationsMedia Fragmentation

• Declining Program Audience
• Declining Commercial Audiences
• PVRs

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Media ConsiderationsMedia Fragmentation
Declining TV Program Audiences
In the beginning when RCA and Dumont created
Television, the agreement was watch commercials
and the programs will be free. Confronted by a
cluster of commercialswell beyond the numbers
most consumers consider useful, or a reasonable
exchange for programsthat original deal is dead.
Viewers no longer believe viewing advertising
messages is a fair price to pay for free
TV. Erwin Ephron July 2004
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Media ConsiderationsMedia Fragmentation
Mass Marketing Model Breakdown
Mass marketing has long been the key to our
consumer economy because it doesnt simply target
users, it builds marketsfor packaged goods a CPM
of 15 means that 10 incremental purchases per
1,000 can pay for the advertising. . . . . .and
also pay for the cost of making 990 other people
aware of the brand. That is the mass marketing
model. More targeted marketing can make sales,
but it cant build brands. Erwin
Ephron July 2004
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Media ConsiderationsMedia Fragmentation
Example Toothpaste The media cost (CPM) is
15 Cost of one tube of toothpaste is
1.50 Ten additional purchases, over and above
what would have been purchased without
advertising, will pay for the advertising.
Meanwhile, 990 other people have been made aware
of the brand. In this way, mass marketing builds
brands.
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Media ConsiderationsMedia Fragmentation
75 Change Channels to Avoid TV Ads
why magazines?
People 12 Who Change Channels When An Ad Comes
On TV
Toronto 74.1 Vancouver 74.9
Audience (Ally McBeal, April 5, 1999)
Commercial Breaks
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Sources 1) Bureau of Broadcast Measurement
(BBM) RTS Study (Fall 1999 and
Spring 2000) as published by
Marketing magazine. 2) Nielsen
Media Research, analysed by
MediaVest Worldwide, as published by
Marketing magazine.
2100
2105
2110
2115
2120
2125
2130
2135
2140
2145
2150
2155
Time (minute by minute)
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Media ConsiderationsMedia Fragmentation

• Personal Video Recorders (PVRs)
• PVR Owners spend 60 of Total TV time viewing
  recorded or delayed programs
• Respondents watch only 8 of commercials in
  recorded programming
• Incidence currently at 5 will grow to 41
  within 5 years

Forrester Research 2004 (As reported in Media
Post, September 9, 2004
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Media ConsiderationsMedia Fragmentation
Magazines are a mass medium
Source Magazine Dynamics, 2005 (To be released)
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Media ConsiderationsMedia Fragmentation
Sources PMB 2001 Marketing Magazine Freeze
Frame Neilson Audience Data (Aug. 28/00-June
3/01 ranking by average-minute audience
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Media ConsiderationsMedia Fragmentation
Readers Digest Delivers Mass AudienceRD Vs. Top
English TV ProgramsCanada Sept. Nov. 2003
Source PMB 04, Marketing, Jan. 12/04 Nielsen
Media Research.
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Media ConsiderationsMedia Fragmentation
Readers Digest Delivers Mass AudienceRD Vs. Top
English TV ProgramsCanada Sept. Nov. 2003
Source PMB 04, Marketing, Jan. 12/04 Nielsen
Media Research.
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Media ConsiderationsMedia Fragmentation
Readers Digest Delivers Mass AudienceRD Vs. Top
English TV ProgramsCanada Sept. Nov. 2003
Source PMB 04, Marketing, Jan. 12/04 Nielsen
Media Research.
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Media ConsiderationsMedia Fragmentation
Five Episode Reach English Adults 25-54
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Source PHD Broadcast Buyers, BBM People
Meters (Fall 04), PMB 2004
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Media ConsiderationsAd Weight Distribution
Comparing TV-only and TV Magazines Strategies
Source KMR-SPC (BARB/TGI fused database, Mercury
software, November 2002
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Media ConsiderationsAd Weight Distribution
The Final 25 of Budget Use TV or
Magazines Gross Ratings Added
why magazines?
20 05
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Source KMR-SPC (BARB/TGI fused database, Mercury
software, November 2002
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Media ConsiderationsCommunication Synergy

• TV Print Combined
• Improve ad recall
• Improve attentiveness
• Generate higher levels of credibility
• Provide enhanced supplementary information
• Generate more precise recall (fewer incorrect
  product statements)
• Promote more active responses

Impact strongest when creative links are
complementary.
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Source The Multiplier Effect (Canada) 1989,
Multiplying the Media Effect (UK) 1987, Bild
(Germany) 1999
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Media ConsiderationsMultiple Exposures
The average page is exposed to the average reader
1.7 times70 more than PMB runs would
indicate (Audits Survey) Readers Digest MPX
Figure2.1 (MRI 2003) Readers Digest-Average
Occasions Read3.5 (PMB 2004)
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Media ConsiderationsImmediacy
When magazines are bought at appropriate weight
levels, they are as effective as television for
building reach and generating short-term sales.
Source FCB Media Research Report, Spring 2001,
Response Not Readership is Prints Problem,
Ephron 1997 Does STAS Only Work With Television
Advertising, Jones 1998 Note A 2004 PHD Analysis
shows that Magazines will deliver from 48-83
more GRPs than TV for the same level of
expenditure.
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Media ConsiderationsImmediacy
The Immediacy of Sales Impact is Similar for
Magazines TV
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Source Media Marketing Assessment (MMA ) 2001
Source Media Marketing Assessment (MMA), 2001
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Media ConsiderationsReach/GRP ROI
100 Magazines vs. 100 TV
Source PHD Canada, 2004 (Eng A25-54)
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Media ConsiderationsReach/GRP ROI
100 Magazines vs. 100 TV
Source PHD Canada, 2004(Eng M25-54)
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Media ConsiderationsReach/GRP ROI
100 Magazines vs. 100 TV
Reach
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Source PHD Canada, 2004(Eng W25-54)
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Media ConsiderationsTargeting
Magazines are considered the most targeted of all
media
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Media ConsiderationsTargeting
Why does targeting product/brand users work?
1) All current users are accounted for and
addressed within the media target.
Principal Shoppers Use Frozen Pizza Users in
Target vs. Users Outside Target
or 883 M
or 883 M
Pie represents Total Frozen Pizza Users
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Media ConsiderationsTargeting
Why does targeting product/brand users work?
2) Non-consumers do not dominate in the media
selection process.
Women With Children Frozen Pizza Users vs.
Non-Users Within the Target
Pie represents Total Demographic Target
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Media ConsiderationsTargeting
Why does targeting product/brand users work?
3) Current product/brand users are more
responsive to advertising.
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Media ConsiderationsTargeting
Why does targeting product/brand users work?
4) Product/brand users often represent the
desired demographic skews Demographic targets
are often based on skews derived from a
product/brand profile in the first place
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Media ConsiderationsTargeting

• Readers Digest reaches approximately one-third
  of current and competitive brand users.
• Retail value if Readers Digest readers who
  currently use product/brand made just one more
  brand purchase over the course of a year.
• Retail value if just a small percentage of
  Readers Digest readers who currently use a
  competitive brand made just one purchase of
  advertisers brand.

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Media ConsiderationsU.S. Spill
U.S. Titles in Canadian Top 100 U.S.
Titles in Top 25 1 U.S. Titles in Top
50 4 U.S. Titles in Top 75 9 U.S. Titles
in Top 100 12 U.S. Title (Rank)
21 National Geographic (364M) 55 Martha
Stewart Living (166M) 36 Cosmopolitan
(240M) 60 In Style (158M) 47 Womens
World (193M) 63 O, The Oprah Magazine (151M)
48 Maxim (184M) 92 First For Women (95M)
51 People (181M) 95 Sports Illustrated
(92M) 52 Prevention (179M) 99 Mens
Health (90M)
Source ABC December 2003
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Media ConsiderationsU.S. Spill
U.S. Spill Trends Average Circulation Spill per
Title
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Proven ROI
Proven ROI
Media Considerations
Reader-Magazine Relationship
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Proven ROI High Performance Option

• The High Performance Option (1965-1988)
• An analysis of the relationship between car sales
  and the ratio of advertising in magazines and
  television over two decades shows the following
• Sales were higher in years that advertisers
  invested more of the magazine-television budget
  in magazines.
• Sales also increased in years that advertising
  investment was fairly balanced between magazines
  and television.
• Sales or market share decreased in years that
  advertisers invested more of the budget in
  television.

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Source MPA 1989
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Proven ROI Family Circle Study (1990)

• Family Circle Study (1990)
• Using scanner data, sales of products advertised
  in Family Circle to Family Circle purchasers,
  were tracked before, during and after the
  campaign.
• Differences between Family Circle Households and
  Control Households were as follows
• Sales increased for 15 out of 22 measured
  products.
• Average sales increase was 20
• Advertised product categories experienced a sales
  increaseaverage 6

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Proven ROI J. Walter Thompson Study (1992)

• JWT Study 1992
• Selected areas exposed to both Magazine and TV
  advertising for high end packaged goods products
  in a very cluttered category. Other matched
  areas received only TV.
• Brand volumes sales in areas exposed to both
  magazine and television advertising outperformed
  sales in televisiononly regions by 14.
• Among the key target audience the mixed media
  campaign outperformed TV-only by a factor of
  nine.

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Proven ROI Kraft Study
Accountability The Addition of Magazines
Increases Sales Performance Krafts Kenco Instant
Coffee, a 100 TV user, conducted an 8-month TV
Magazine test along with a TV-only control group.
25 of the TV budget was shifted into
Magazines. Magazines are now a regular part of
the media mix for Kenco and other Kraft brands
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Source More Food for Thought, Alan Smith, Admap,
February 1997
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Proven ROI Millward Brown
Advertising Expenditures In Magazines Deliver
Higher Advertising Awareness Levels
Source Millward Brown Competitive Media
Reporting, 1998
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Proven ROI Millward Brown
Magazines, both individually and in combination
with television, contributed 64 of total brand
awareness, well in advance of magazines 23 of
the total advertising budget.
Millward Brown Competitive Media Reporting, 1998
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Proven ROI AC Neilson Homescan Study 1999

• Purchase Behaviour Of Consumers Exposed to
  Magazine Ads Versus Non-exposed consumers
• Based on 50,000 Households
• Magazine Exposed Households Were More likely To.
  . .
• Purchase The Advertised Product
• Show Greater Volume Sales
• Show Greater Sales
• . . . Than non-magazine exposed households.

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Proven ROI AC Neilson Homescan Study 1999
In the test period, sales increased by 14.8
and Market Share increased by 34.6, while Ad
Expenditures increased by only 7.9
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Proven ROI Proctor Gamble Canada

• Objective
• To determine the business potential that arises
  from replacing all or part of a TV buy with
  magazines
• Methodology
• Test (Edmonton) vs. control markets (Ontario
  Vancouver) in 1999
• Measured actual change in brand volume in
  response to media output, all other factors held
  constant
• Equivalent spending was maintained in test and
  control markets
• Measured by AC Neilson Marketplace Analytics

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Proven ROI Proctor Gamble Canada
Dental Laundry Care Categories
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Source Procter Gamble Inc., 1999
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Proven ROI Unilever Canada

• Objective
• Test to increase understanding of how magazines
  and television work together, versus TV in
  isolation, to impact sales response. (2002)
• Methodology
• Alberta (test) vs. Man/Sask (control)
• Measured by AC Nielson Marketplace Analytics
• Measured actual change in brand volume in
  response to media output, all other factors held
  constant
• Equivalent spending was maintained in test and
  control markets

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Proven ROI Unilever Canada
Food Category
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Source HYPN, 2002
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Proven ROI Dynamic Logic Cross Media Studies
2004

• Examined the branding impact of eight multi-media
  advertising campaigns (from various product
  categories including Household, Consumables,
  Health Beauty and Automotive)
• Methodology
• Established Unexposed (Control) baseline data for
  five metrics including Aided Brand Awareness, Ad
  Awareness, Message Association, Brand
  Favourability Purchase Intent
• Compared three groups of advertising exposed
  respondents to (unexposed) baseline on the five
  metrics. The three groups were
• 1) Respondents exposed to TV alone
• 2) Respondents exposed to TV and Internet
• 3) Respondents exposed to TV, Internet and
  Magazines
• The study reports on incremental increases over
  baseline data for the three groups of advertising
  exposed respondents.

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Proven ROI Dynamic Logic Cross Media Studies
2004
Interpretation Among respondents who were
exposed to TV alone, Aided Brand Awareness
increased by 5.5 over the control. Among
respondents exposed to TV and Internet, Aided
Brand Awareness increased by 11.6 (5.5
generated by TV and 6.1 generated by the
Internet.) Among respondents who were exposed to
TV and Internet plus Magazines, Aided Brand
Awareness increased by 16.7 (5.5 and 6.1
generated by TV and Internet respectively plus an
additional 5.1 generated by Magazines.)
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Proven ROI Dynamic Logic Cross Media Studies
2004

• Conclusions
• TV, Internet and Magazines produce similar
  increases in Aided Brand Awareness (5 to 6)
• TV and Magazine advertising both produce greater
  increments than online advertising in Advertising
  Awareness (11 versus 6)
• Magazines did not show as much impact on Message
  Association as TV and Internet (2.8 versus
  4.2 and 4.4 respectively).
• Magazines excelled at increasing Purchase Intent.
  Magazines incremental effect on Purchase Intent
  (7.2) is significantly higher than that of TV
  (2.6) or the Internet (1.3).

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PMB Brand Data
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Readers DigestA Media Planning Resource

• PMB
• Roper Reports
• Consumer TrendZ (Millward Brown Goldfarb)
• Statistics Canada
• Toronto/New York Marketing Media Library
• MSG/Marketing Services

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• They are in some ways, the original passionate
  medium. The very nature of the medium is that
  its one magazine speaking with one voice,
  speaking to one reader. I think that make
  magazines very special in the media environment.
• Karen Jacob,
• Executive VP and Media Director,
• Starcom MediaVest, Chicago 2003

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• The beauty of magazines is the emotion and
  passion that someone can pour into reading
  magazines. Its an active medium,. . . For our
  clients, the appeal of magazines is tapping into,
  trying to borrow from the reader, that passion
  for a particular magazine, and transfer it over
  to the brand.
• Steve Moynihan,
• Managing Director MPG Arnold 2003