Advertisers could increase ad revenues with 17% by adding print

Submitted by: Print Power 20/05/2014

     

Online, social media, apps – they are all here to stay. The reason why there is an ever growing opportunity for brands in the printed channel than ever before, because what digital is doing is allowing us to look at and use all the other channels. Foolhardy therefore for advertisers to be solely focused on digital, forgetting the power of print. Recent research commissioned by Print Power backs this claim. A media mix with optimised use of newspapers, magazines, door drops and direct mail will increase advertising revenues with 17% for FMCG campaigns in Europe.

BrandScience analysis of over 500 brand case studies finds that FMCG brands across Europe are not spending their advertising budget in the most optimal way. Every €1 spend on advertising in the FMCG category could deliver €0,17 more by adding or increasing the budget for newspapers and magazines.

BrandScience analysed 500+ econometric cases from 13 European countries in order to define the role of print in achieving RROI (Revenue Return on Investment)*.

The findings point to an important role of newspapers and magazines for many sectors. Not only do these media have a strong RROI, they also increase the effectiveness of TV and online and they boost overall campaign revenues.

When comparing campaigns including or not including magazine advertising, one notices a striking difference in ROI. Campaigns not including magazines attain a RROI of 0,83. When magazines were added to the mix, even when their share of the mix was limited to 5%, the RROI increased with 83% and even 134% when the budget represented between 5-12%. With a share of 12-55% there was an increase of 70%.

The BrandScience research has reached some definitive conclusions which could help advertisers in the future to innovate further by bringing in new print solutions that build brands, create relationships and raise their RROI.

1. Magazines and newspapers are very strong media throughout Europe in the FMCG and FMCG Food Drinks category. Revenues for magazines are the highest of all media in the FMCG F&D category and among the top 4 (behind Cinema and Radio) in the overall FMCG category.

       

2. In the Services and Retail category newspapers and magazines are among the top media (behind TV, online and outdoor)in terms of revenues.

3. Direct mail use is clearly underestimated in the Technology category with the second best RROI (just behind magazines). Also door drops are an effective medium with the fourth best RROI score.

4. When evaluating the optimal share of total budget the analysis shows that adding magazines and newspapers will, at any level of investment, deliver more revenues in the FMCG category. Adding newspapers and magazines will regardless of the budget spend increase the overall RROI.

      

5. Spending for, example, between 1-5% of total budget on newspapers will double the campaign RROI in the FMCG category.

6. Spending 17-59% of total budget on newspapers increases the RROI for Services almost 2,5 times. In the UK the RROI increase is 300%.

7. When adding 1-14% of the total campaign budget on direct mail, one euro investment will deliver an additional €0,89 in the Service category in the UK.

8. Magazines and newspapers strengthen the effectiveness of TV and online in campaigns for FMCG and Services. For example, the RROI of TV in a TV + print campaigns increases with 61% compared to a TV only campaign, whereas the total campaign RROI increase only with 44%.

9. Adding newspapers to an online campaign in the UK will add 50% to the RROI of online.

    

10. A media mix with an optimal use of print media (newspapers, magazines, door drops and direct mail) will generate an additional 17% RROI for FMCG brands and 21% more revenues for Services Technology brands.

     

*RROI is used as a measure for effectiveness as ROI figures (based upon profits) are often not available via the cases obtained.

Over 500 cases were used of which 377 had RROI figures. The majority of the cases included magazines and newspapers. Door drop and direct mail cases were predominantly from the UK.

For the full report please click here.