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How Consumers Use Media NAA’s 2003 Readership Conference January 7th Prepared for: Information Buffet © 2002 Knowledge Networks, Inc. Media Consumption Variables Content: News and Advertising Satisfaction/ Perception Involvement & Receptivity Media Consumption Drivers & Value

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how consumers use media

How Consumers Use Media

NAA’s 2003 Readership Conference

January 7th

Prepared for:

Information Buffet

© 2002 Knowledge Networks, Inc.

media consumption variables
Media Consumption Variables

Content:News and Advertising

Satisfaction/ Perception

Involvement

& Receptivity

Media Consumption Drivers & Value

Relevant Experience

the focus today
The Focus Today…
  • What’s happening in today’s newspaper world?
  • A snapshot of how different consumer segments use various media relying heavily on data from:
    • NAA
    • Readership Institute’s Impact Study of 37,000 people about consumers, media & U.S. newspapers in summer 2000
    • KN nationally representative panel of 40,000 people constructed with extensive profile database
    • Media data collected by KN/SRI
      • Multi-Media-Mentor, the leading tool for allocating media spending across mediums (TV, print, radio, internet)
      • “How People Use Media” capability for valuing media according to attentiveness and how it is consumed
additional focus today
Additional Focus Today….
  • How newspapers fit in the media mix
  • How advertisers can benefit by including newspapers in their plans
readership trends
Readership Trends

Newspaper Readership Among the Adult U.S. Population

Source: Newspaper Association of America

weekday readership has declined
Weekday Readership Has Declined
  • Faster Among Women — Down 27 Points

Source: Newspaper Association of America

and more women subscribe then men
And More Women Subscribe Then Men
  • While 56% of single copy weekday buyers are men
  • During the week and weekend the majority of newspaper subscribers are women
21 25 year olds reading daily
21 – 25 Year Olds (% Reading Daily)

Source: General Social Survey 2002

newspaper overview

Newspaper Overview

From KN 2002 Profile Data

& Readership Institute Data

are the standard demographic data helpful in turning around readership and frequency of consumption
Are The “Standard” Demographic Data Helpful In Turning Around Readership And Frequency Of Consumption?
newspaper readership frequency by ethnographic group
Newspaper Readership Frequency By Ethnographic Group

Read:

Once a Week or Less

More Than Once a Week

general news most widely read
General News Most Widely Read

But Differs By Income

$75+K

$30K or Less

Next Read

Read Business/ Finance

Editorial

importance of various story topics
Importance Of Various Story Topics
  • The most important topics for a paper’s magazine to cover, if they have one, according to the “very important” ratings of readers, are local news and local events and organizations, followed by historical events and incidents and national news.

Percent Very/Somewhat Important

Historical events and incidents

Local news

Local events and organizations

National news

Health and Fitness

The Arts

Science and Technology

Popular Culture

Local politics

Noted local residents

National politics

Travel

Fiction and Literature

Personal reflections

Food and Wine

Memoirs

Business and Finance

Design

Celebrities

Fashion and Style

Sports

performance vs importance top 2 box
Performance vs. Importance — Top 2 Box
  • The topics on which a newspaper stands to gain the most in more effective coverage are national news and politics, health and fitness, science and technology, and travel. These are the topics which are ranked relatively high in importance but relatively low in coverage.

80%

Local Events

and Organizations

The Arts

Local News

Food and Wine

Historical Events and Incidents

Fashion and Style

Celebrities

Local Politics

Popular Culture

Design

Performance

Health and Fitness

Travel

Personal Reflections

National News

Science and Technology

Memoirs

National Politics

Fiction and Literature

Sports

Business and Finance

50%

35%

95%

Importance

readership on line extended to other news sites
Readership On-Line Extended To Other News Sites
  • 33% of people under 44 read news on line at abcnews.com vs. only 15% at cbsnews.com or foxnews.com
  • 40% went to CNN.com and MSNBC.com
readers of a newspapers sunday magazine tend to read more magazines in general
Readers of a Newspapers Sunday Magazine Tend To Read More Magazines in General

Index to General Population

Source: Knowledge Networks’ Magazine Profile Survey on 100 major consumer magazines. “Magazines read frequently” are those for which respondent reads 3 or 4 out of every four issues.

old media old targets for advertisers
Old Media — Old Targets For Advertisers

CBS

NBC

ABC

TV

Newspapers

Woman’s

Day

Radio

Women 18 – 54

what s going on the context
What’s Going On– The Context
  • Fragmentation: Media options have increased exponentially making the complexity and promise of targeting greater
  • Effect On Advertisers: Cost of creating new products/brands almost cost prohibitive so advertisers need to accurately target established brand advertising
  • Speed: Time to get content and product ideas to market and proven much shorter but risk of targeting failure higher then ever
  • Technology: Has changed consumer access to information and therefore the reading/viewing/buying process
you wake up your day starts
You Wake Up, Your Day Starts …..
  • With 1440 minutes
  • You spend about 1000 minutes awake
  • And…..
daily media minutes 528
Daily Media Minutes = 528

Source: KN/SRI MultiMedia Mentor Adults 18 – 64

daily media reach
Daily Media Reach

Source: KN/SRI MultiMedia Mentor Adults 18 – 64

daily inter media reach among newspaper readers
Daily Inter-media Reach Among Newspaper Readers

Source: KN/SRI MultiMedia Mentor Adults 18 – 64; M-S 6A-12M

daily media reach 6am 9am
Daily Media Reach: 6AM – 9AM

Source: KN/SRI MultiMedia Mentor Adults 18 – 64+

media use illustrative targets
Media Use: Illustrative Targets
  • College Graduates
  • Owners of Brokerage Accounts
  • Women with Children
media minutes indexed
Media Minutes: Indexed

Newspapers Stronger Than TV Among College Graduates!

Source: KN / SRI MultiMedia Mentor Adults 18 – 64 = 100

media minutes indexed48
Media Minutes: Indexed

Among Owners of Brokerage Accounts Newspapers Pop!

Source: KN/SRI MultiMedia Mentor Adults 18 – 64 = 100

media minutes indexed49
Media Minutes: Indexed

Women 18 – 49 With Children Index High For Time Spent With Newspapers!

Source: KN/SRI MultiMedia Mentor Women 18 – 49 = 100

minutes per day spent with
Minutes Per Day Spent With…

Age < 23

Age 23 – 34

Age 35 – 54

Age 55 – 59

Age 60 +

Any Daily Newspaper

Magazines

Internet

Television

Radio

newspaper s show the highest rate of single tasking
Newspaper’s Show The Highest Rate of “Single Tasking”
  • 27% of all persons that read a newspaper never/rarely do other things at the same time
  • While only 12% of people never/rarely do something else when watching TV
  • This is terrific news for advertising sales
  • How does this differ by age group and compare to TV?
percent never rarely doing other tasks at the same time
Percent Never/Rarely Doing Other Tasks at the Same Time

Age < 23

Age 23 – 34

Age 35 – 54

Age 55 – 59

Age 60 +

Newspapers

Television

newspapers are differentiated vs other media
Newspapers Are Differentiated Vs. Other Media
  • 34% say newspapers are “extremely or very different” from TV
  • 46% say that versus the internet
  • How does this differ by age group?
percent saying newspapers are extremely or very different from competitive media
Percent Saying Newspapers Are “Extremely” or “Very” Different From Competitive Media

Age < 23

Age 23 – 34

Age 35 – 54

Age 55 – 59

Age 60 +

Television

Radio

Magazines

Internet

people have high newspaper satisfaction
People Have High Newspaper Satisfaction
  • 42% of all people rate newspapers “very good” or “excellent”
  • Only 5% gave them a “poor” rating
  • How does this differ by age group?
what have we seen thus far
What Have We Seen Thus Far…
  • Newspaper readership is declining but…
  • People view newspapers as “extremely / very different” from other media
  • Age and gender drive media consumption
  • Content matters
  • About 40% rate newspapers as “excellent / very good”
  • Quality of exposure to newspapers and its advertising could be greater then other media …
  • ….Let’s explore that using Media Scan and MultiMedia Mentor
media scan multimedia mentor

Media Scan & MultiMedia Mentor

An Intermedia Research and Strategic Planning Tool

context emerging or latent ad needs
Context: Emerging or Latent Ad Needs
  • Choosing media to actually reach the target consumers
    • Consumption of vehicles
    • Attention given vehicles
  • Selecting media vehicles which enhance the advertising’s effect on target consumers
  • Verifying the target consumers are actually receiving the planned volume of advertising
  • Verifying the Advertising has the expected emotional meaning and effect
  • Understanding the relationship between the media brand and its consumer
where does it fit in the tool box
Where Does It Fit in the Tool Box?
  • Strategic — The tool for designing the blueprint
  • The first tool … before the TV optimizer or other audience data analysis
database
Database
  • Intermedia usage: Single source, level playing field
  • 5 media: TV, radio, newspaper, magazine, Internet
  • Metric: Media use and time spent by daypart
  • Telephone: Random person
  • Sample size: Two waves — 5,000 annual
desktop software
Desktop Software
  • Media Scan
    • Time spent across media
    • Intermedia cumes
    • Simultaneous use
  • Media Mentor
    • Reach and frequency analysis
    • Intermedia optimization
    • Exposure weighting
applications
Applications
  • Multimedia plan development/evaluation
  • Target audience use patterns
  • R/F analysis
  • Changes in daypart/media mix, costs, budget, target specs, exposure values
  • Reach contribution of additional media
  • Optimization across media
  • Budget allocation across media
examine exposure quality and involvement
Examine Exposure Quality And Involvement
  • Factors affecting the probability of being exposed to advertising
    • Medium, environment, creative
  • Exposure values/involvement weights
    • Differ by product category and brand
    • Database + SRI HPU™ + You
  • A disciplined approach to valuing media
exposure quality factors
Exposure Quality Factors
  • For each media exposure
    • Location
    • Audience composition
    • Purpose
    • Other activities
involvement weights
“Involvement” Weights

Example

  • Audience composition
    • Alone = 1.00
    • w/other Adults = 0.75
    • w/Children = 0.50
surveyed advertising receptivity
Surveyed Advertising Receptivity
  • Overall and for each medium
    • Important info source for products in which interested?
    • Helps decide what to buy?
    • Usually pay attention?
    • Number of ads takes away from enjoyment?
ad receptivity weights
Ad “Receptivity Weights”

Example

  • Positive statement re advertising*
    • Agree strongly = 1.00
    • Agree somewhat = 0.80
    • Disagree somewhat = 0.60
    • Disagree strongly = 0.40
    • Don’t know/no opinion = 0.70

* Reverse scale for negative statements

newspapers are strongest information source for products in which interested
Newspapers Are Strongest Information Source forProducts In Which Interested

Percent Who “Agree Strongly”

Total Persons 12 +

vehicle provides information that helps decide what to buy
Vehicle Provides Information That Helps Decide What To Buy

Percent Who “Agree Strongly”

Total Persons 12 +

usually pay attention to ads
Usually Pay Attention to Ads

Percent Who “Agree Strongly”

Total Persons 12 +

number of ads takes away from enjoyment
Number of AdsTakes Away from Enjoyment

Percent Who “Agree Strongly”

Total Persons 12 +

average receptivity score advertising in general and by medium
Average “Receptivity” ScoreAdvertising in General and by Medium

Range: 1.6 to 4.0

Total Persons 12 +

media minutes adjusted for receptivity
Media MinutesAdjusted for “Receptivity”

Persons 12 – 34 Indexed To Persons 12 +

media minutes adjusted for receptivity95
Media MinutesAdjusted for “Receptivity”

Persons Of Hispanic Origin Indexed To Persons 12 +

what drives a newspaper s success
What Drives A Newspaper’s Success?
  • It isn’t the paper’s logo or motto:
    • All the news that's fit to print
    • The nation’s newspaper
    • Beyond words
    • We know where you live
    • We deliver
    • It’s what you need to read
    • Every day since 1829
newspaper success and importance drivers relative to other media
Newspaper Success and Importance Drivers Relative To Other Media
  • Quality of time spent with the media
  • Satisfaction
  • Involvement
  • Receptivity
  • Frequency of reading
  • Content
  • Examining how to target your readership
putting what we have discussed in an actionable context key trends
Putting What We Have Discussed In An Actionable Context: Key Trends
  • Shifts in the Competitive Environment
  • A Pluralistic Society
  • The Empowered Consumers
  • Fragmented Media Environment
  • Emerging Marketing Paradigms
  • New Agency Models
shifts in the competitive environment
Shifts in the Competitive Environment
  • Growth depends on increasing discretionary expenditures not population growth
  • Competitive advantage derives from better satisfying consumers’ wants rather than solely from economic or functional prowess
  • Brands have become the competitive battleground– in media and in other goods
a pluralistic society
A Pluralistic Society
  • Diverse cultures, lifestyles and values exist and are accepted
  • As consumers become increasingly disconnected from family and community, they define their identity through their expenditures rather than through their family
  • Media is one of their expenditures
  • Brands are symbols and experiences used to define the consumer’s identity
  • The media that consumers choose are brands
the empowered consumer
The Empowered Consumer
  • Consumers are sophisticated and discriminating
  • Time constraints force choices of how to allocate attention, money and energy
  • Choices made increasingly for emotional, non-functional benefits
  • Media become reified and personified as these are used to define the consumer’s identity
  • As media brands become social entities, consumers develop expectations for their “behavior and personality”
fragmented media environment
Fragmented Media Environment
  • Multiplicity of media and media vehicles has resulted in fragmented audiences
  • Fragmented audiences mandate more complex media plans – more media and more vehicles needed to cover a target population
  • Consumers have changed in how they consume and interact with media and vehicles. Consumers increasingly multi-task while consuming media
  • Consumers are more selective in both the time spent with various media/vehicles and the attention given any medium or vehicle
emerging marketing paradigms
Emerging Marketing Paradigms
  • Shifting from mass marketing toward one-to-one marketing
  • Corporate focus on brands as critical assets has effected all marketing/media plans
  • Valuing consumers based on their loyalty and commitment to the brand
  • Transformation of brands from objects into social entities
  • Focus on surrounding the consumer with communications
  • Adoption of integrated communications
new agency models
New Agency Models
  • The rise of the agency planners
  • The formation of media planning and buying companies as separate entities from their parent advertising agencies
  • Media strategy and planning expertise as differential advantages
newspapers importance to advertisers
Newspapers Importance To Advertisers
  • The cost of building a brand has skyrocketed as the proliferation of media have fragmented audiences without a proportional drop in cost
  • The cost of building a new brand makes the value of an established brand even higher
  • The high value of existing brands makes it worth spending large amounts of marketing/media money to maintain the brand
  • Newspapers can play a key role in delivering a high quality and attentive audience to advertisers
newspapers score high on media consumption variables
Newspapers Score High On Media Consumption Variables

Content:News and Advertising

Satisfaction/ Perception

Involvement

& Receptivity

Media Consumption Drivers & Value

Relevant Experience