Magazine Advertising in a Recession
This presentation is the property of its rightful owner.
Sponsored Links
1 / 31

Magazine Advertising in a Recession PowerPoint PPT Presentation


  • 64 Views
  • Uploaded on
  • Presentation posted in: General

Magazine Advertising in a Recession . A summary of commercial behaviour in an economic downturn and brand and media recommendations for 2009. Why do advertisers cut back? . Because its easy and its quick. Lower than expected sales lead to lower profitability

Download Presentation

Magazine Advertising in a Recession

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Magazine advertising in a recession

Magazine Advertising in a Recession

A summary of commercial behaviour in

an economic downturn and brand and

media recommendations for 2009


Magazine advertising in a recession

Why do advertisers cut back?

Because its easy and its quick

  • Lower than expected sales lead to lower profitability

  • Reduced capacity means less volume to trade

  • Competitors reduce spend so Share of Voice is maintained with less

  • Direct costs of unit production increase

  • Marketing spend is unspent, uncommitted and vulnerable


Magazine advertising in a recession

Market Dynamics at q1 2008

House prices and share portfolios continue decade of increases

Easy credit and joint incomes have created a marketplace of discretional spending - dining out, premium food ranges, fashion upgrades, multiple short breaks, technology, telephony

Relatively inexpensive household essentials have been and over supplied. Multiple ownership of brown and white goods, cars, and holidays


Magazine advertising in a recession

Market Conditions at q1 2009

Discretional spending cut back

Renewal of essentials delayed

Employment decreasing

Value of assets reduced


Magazine advertising in a recession

Market Conditions at q1 2009

Need for brands to remain strong and front of mind to secure revenue from smaller pool

[Price Waterhouse Coopers]


Magazine advertising in a recession

We believe cutting back marketing spend is not the answer

79% believe marketing is no longer dispensable.

It is key part of the business plan

Marketing is seen as more of a solution to help than a budget line to cut

Strategy first: We set our advertising strategy to take advantage of opportunities

in the downturn, then try to come up with a budget to achieve the strategy

61%

27%

Budget first: We reduce our budget, then come up with a strategy to do the most we can with that budget

12%

Don’t know

[Advertising on the Edge. Economist Intelligence Unit Survey]


Magazine advertising in a recession

The importance of not cutting back

Because there are proven

negative impacts

on brand position and profitability if marketing expenditure is reduced during a downturn [Barwise,IPA,PIMS,Data2Decisions]

It’s a short-term fix

Brands that cut back emerge from the downturn weaker and less profitable

Long term profitability means maintaining Share of Voice above Share of Market


Magazine advertising in a recession

The importance of holding a long-term view

The benefits of advertising materialise in the longer term

50% achieved in year onewith the remaining 50% in years 2 to 4

The impact of advertising cuts may not be realised immediately. This may be misleading and harm the business in the long term

[Date2Decisions.[ROI defined as the incremental revenue generated from advertising per unit of spend]


Magazine advertising in a recession

The importance of not ‘going dark’

60% of brands which ‘go dark’ decline on at least one key brand metric

Two key brand relationship metrics

Usageand Image suffer

when brands “go dark” for six months or more

(See chart opposite)

There is also a danger that by falling silent a brands buzz scorewill decline, with the brand more likely to be judged

on-the-way-down

increase 11 22

decrease (24) (28)


Magazine advertising in a recession

The importance of ‘bonding’

There is a strong link between market share and brand-to-consumer bonding, an aggregate of brand-consumer metrics

Less investment in marketing communications leads to lower bonding and lower market share

[Millward Brown]


Magazine advertising in a recession

The importance of maintaining share of voice

Brands which cut their budget, relative to their competitors, have a higher chance of losing market share

When share of voice minus share of market is negative, a much higher percentage of brands lose market share

[IPA DataMine]


Magazine advertising in a recession

Because share of voice drives growth

Analysis of 880 case studies shows a correlation between share of voice and share of market gain or loss

As a rule of thumb, for every 10% points that share of voice exceeds share of market a brand can expect to gain one point of market share,

per annum

[IPA DataMine]


Magazine advertising in a recession

Evidence of brand value to advertisers

Coke’s market Cap including brand value

£120 billion

Coke’s market Cap not including brand value

£50 billion

[The Brand Gap]


Magazine advertising in a recession

The old dynamic

BrandRet ailerConsumer


Magazine advertising in a recession

The new paradigm

BrandRetailer Consumer

Direct supply, online shopping, alternative outlets, alternative

products, consumer product review forums, e-bay …


Magazine advertising in a recession

Brand strategies for 2009

Re-examine the role of advertising for your brand

Promote reasons for consumers to enter the market, before conveying your own brand attributes and benefits. Champion the categoryand be frontrunner in recovery

Re-ignite consumer satisfaction with the brand

Challenge consumer perceptions and behaviour toward the brand

Use insight to identify and promote the simple, but forgotten, pleasures associated with your brand

Focus on the personal connection through message and placement


Magazine advertising in a recession

Brand strategies for 2009

Reframe brand value

Convince consumers that a change of brand behaviour is not a compromise on quality

Find your brand’s compellingcentral truth and convey it. But consumers will shy away from brands which over claim


Magazine advertising in a recession

Communications Planning in 2009

Because despite the headlines its not all about

… well, not in the long term


Magazine advertising in a recession

Because value to consumers is not based on price alone

Bought goods …

other

6%

NOT price related

65%

on strength of brand

59%

Brand

important

84%

compromise of brand/price

Price related

35%

on price alone

10%

[Millward Brown, Brandz UK 2007]


Magazine advertising in a recession

Communications Planning in 2009

Select media which enhance the communication themes of your brand

and select an attentive and effectivemedium which delivers a breadth of proven ROI deliverables in sufficient size to provide the scale and economies for big brand media planning


Magazine advertising in a recession

Communications Planning in 2009

Does this support the brand?


Magazine advertising in a recession

Communications Planning in 2009

This does


Magazine advertising in a recession

Communications Planning in 2009

“Boosting search is key to our brands success”

Magazines lead in getting consumers searching

Which mediums influence you to start an online search?

[MPA]


Magazine advertising in a recession

Communications Planning in 2009

“I need more consumers to buy from my website”

Magazines excel at producing the traffic which converts to sales

% made purchase after conducting online search

Offline sources which drive qualified traffic to websites

[MPA]


Magazine advertising in a recession

Communications Planning in 2009

“I want buzz around my brands”

Magazines and web are key in reaching connectors

Magazines work well with web in reaching social networkers

Index based on Facebook & MySpace users

[MPA]


Magazine advertising in a recession

Communications Planning in 2009

“I want to reach positive communicators”

Magazines and web are key in getting to opinion formers

Influentials use magazines and web the most

Number of times medium ranked #1 among influentials across 60 categories

[MPA]


Magazine advertising in a recession

Communications Planning in 2009

“I have to improve opinions about my brand”

Magazines have a superior record in boosting brand favourability

Brand Favourability

Difference in exposed versus non-exposed consumers

[MPA]


Magazine advertising in a recession

Communications Planning in 2009

“I want get my brand mentioned”

Magazines and web are key in getting consumers talking

Magazines are strongest influence on personal recommendations

Percent saying magazines contributed to personal recommendations

[MPA]


Magazine advertising in a recession

Communications Planning in 2009

Driving purchase intent is critical for our success in 2009 Magazines rank #1 in lifting purchase intent

Media Impact on Purchase Intent

Difference in exposed versus non-exposed consumers

Cost per impact of Purchase Intent

Indexed to TV

$2.61

$1.77

$1.23

[MPA]


Magazine advertising in a recession

Communications Planning in 2009

Most things we ever buy, we buy regularly. Every week 22 million shoppers are in-market for fmcg products and in a mind-set to listen to advertisers in those categories. Small nudges replace big shouts

Using NRS Readership Accumulation [to plan weekly print ratings] magazine advertisers can meet them there

Needs fulfilled (out of the market)

Have

Week by week

Have not

Purchasing mode (in-market)

[NRS.IPC]


Magazine advertising in a recession

Advertising in 2009

For more information and usable charts please

contact [email protected]

020 3148 3639


  • Login