Overview Proving newsbrands deliver business results We know
Overview Proving newsbrands deliver business results We know that sales are relatively easy to achieve. Profitable sales that build brand value on the balance sheet are far harder to achieve The focus of the research: The effectiveness of both print and digital newsbrands To separate out the impact of digital advertising in newsbrands instead of lumping it in with all digital display A focus on profit To look at how newsbrands contribute to overall campaign success, through assessing their impact on a campaign’s profitability Wider market coverage than any other study To provide actionable insights and bespoke learnings to advertisers in as many categories as possible, through the use of ‘super-categories’ Source: Planning for profit, Newsworks, 2018
Highlights Brands are missing out on £ 3 billion of campaign profit through under-utilising newsbrands in both print and digital Increasing print newsbrands’ share of budget to the optimal level would more than double current campaign PROI* *profit return on investment The importance of context has never been greater. Increased spend in digital newsbrands will result in higher campaign profit levels to the tune of £ 300 million Source: Planning for profit, Newsworks, 2018
Introducing the super-categories
EVERYDAY PICKUPS REFRESH AND REVIVE LEISURE AND PLEASURE SHINY NEW THINGS GROWN UP STUFF Frequent, habit driven purchases. Brands are generally favoured by default rather than thought. Low cost Choice is often welcomed and purchases are more considered, providing valued moments of ‘me time' or family time. Purchased relatively frequently at low-medium value Goods and services that are bought weekly (more or less). Medium brand consideration and medium value Goods and services mostly purchased or reviewed on an ad-hoc basis, the use of which often bring enjoyment. Quite high brand consideration and medium value Purchased roughly annually (sometimes more, sometimes much less). Varying degrees of interest but often significant spend and therefore often highly researched Examples – confectionery & sweets, household supplies, media e. g. newspapers or magazines Examples – restaurants & coffee shops, drink – nonalcoholic like fizzy drinks, food, charities, beauty & personal care, health & medical, pharmaceuticals (not an advertised category in the UK) Examples – alcoholic, gambling, National Lottery, entertainment & leisure, supermarkets Examples – computers & software, toys, games & consoles, clothing & accessories, consumer electronics, telecoms, retail (non-grocery) Examples – government and public sector, insurance, other offline services, other online services, travel & transport, energy & utilities, business services, motors, finance BSILC (banking, savings, investments, loans, cards) Source: Planning for profit, Newsworks, 2018
Nuts and bolts Benchmarketing conducted a meta-analysis of 684 econometric models from 2011 -2017, across a number of different sectors ‘Super-categories’ mean wider category coverage Looking at 30 individual categories, analysing characteristics such as purchase behaviour as well as how they behaved in relation to response to advertising investment, Benchmarketing developed five ‘super-categories’ as distinct segments. These categories cover an impressive 86% of the total UK advertising market The impact of both print and digital newsbrands This work addresses the measurement of digital newsbrands separately from the amorphous mass of online display. For the first time we are able to quantify the impact of including both print and digital newsbrands on overall campaign e�ectiveness Measuring profit return on investment (PROI) PROI is the revenue generated by advertising campaigns divided by the profit margin for each client over the short to medium-term. It takes into account the media investment and the cost of goods or services, so provides a much clearer guide to advertising payback than simply looking at the revenue generated. Benchmarketing’s analysis looks at the short to medium-term PROI, with an average of three – six months post-campaign e�ect. Benchmarketing's assessment of the long-term e�ect is twice the short to medium-term PROI, although this can vary by category Source: Planning for profit, Newsworks, 2018
Everyday pickups
Everyday pickups covers low cost items we buy very frequently, out of habit. It includes impulse treats, such as crisps, magazines and chocolate bars that we buy from a shortlist of favourite brands. It also includes routine household essentials, such as loo paper, where we don’t usually spend time pondering each purchase. Source: Planning for profit, Newsworks, 2018
Super-category summary: Everyday pickups ‘Everyday pickups’ clients are losing out on £ 15. 8 million potential profit through underinvesting in newsbrands In order to maximise campaign profit return on investment (PROI) for brands: § an average of 7% of the total media budget should be allocated to print newsbrands § an average of 1. 4% of the total media budget should be allocated to digital newsbrands Source: Planning for profit, Newsworks, 2018
Total digital share of total EVERYDAY PICKUPS media budget now stands at 36%. Only OOH and cinema have maintained share Print newsbrands Digital newsbrands 2017 0. 9% 49. 7% 8. 0% 1. 1% 1. 4% 2016 52. 9% 2015 2. 9% 2. 2% 2. 0% 21. 8% 1. 2% 0. 9% 57. 4% 2. 2% 63. 1% 2. 1% 18. 5% 1. 4% 2. 8% 2013 TV Cinema OOH Radio Magazine 1. 2% 5. 6% Print newsbrands Digital newsbrands 1. 7% 13. 8% 1. 1% 1. 8% 1. 6% 2. 6% 0. 9% 2. 0% 6. 5% 1. 1% 5. 4% 65. 6% 7. 0% 0. 8% 7. 4% 1. 1% 7. 5% 0. 6% 9. 8% 1. 3% 2014 25. 9% 8. 2% 11. 5% 2. 2% 4. 1% Digital display other Source: Benchmarketing analysis of SMI (Standard Media Index) UK Pool, 1 Jan 2013 to 31 Dec 2017 0. 9% Digital video 6. 1% 1. 0% Digital search
Newsbrands’ share of total EVERYDAY PICKUPS media spend has traditionally been low, so has been less affected by the move to digital than other media 5. 0% Share of media spend 0. 9% 3. 8% 3. 9% 3. 5% 3. 0% 1. 2% 1. 1% 0. 6% 0. 8% 4. 1% 2. 6% 2013 2014 Print newsbrands % 2. 8% 2015 2. 9% 2. 2% 2016 2017 Digital newsbrands % Source: Benchmarketing analysis of SMI (Standard Media Index) UK Pool, 1 Jan 2013 to 31 Dec 2017
The peak level of campaign profit return on investment for the EVERYDAY PICKUPS super-category occurs when print newsbrand investment is between 3% and 17% of the total media budget Campaign PROI vs print newsbrand usage Print newsbrands' current average share of budget: 2. 9% 0. 41 0. 29 0. 12 Low 1. 0% - 3% Medium 3% - 17% High 17% - 23% % print newsbrand spend Source: Benchmarketing 2018. Base: 25 cases using print newsbrands
The peak level of campaign profit return on investment for the EVERYDAY PICKUPS super-category occurs when digital newsbrand investment is between 0. 7% and 2. 1% of the total media budget Campaign PROI vs digital newsbrand usage Campaign PROI Digital newsbrands' current average share of budget: 0. 6% Digital display overall is 26. 5% 0. 37 0. 35 0. 32 Low 0. 1 - %0. 3 % Medium 0. 3 - %0. 7 % High 0. 7% - 2. 1% % digital newsbrand spend Source: Benchmarketing 2018. Base: 46 cases using digital newsbrands
Print newsbrands’ optimal share EVERYDAY PICKUPS: Recommended % spend in print newsbrands 11% 9% £ 1 m £ 2 m £ 3 m 8% 8% 8% £ 4 m £ 5 m £ 6 m 7% 7% 7% £ 7 m £ 8 m £ 9 m £ 10 m £ 15 m £ 20 m £ 25 m £ 30 m £ 35 m £ 40 m £ 45 m £ 50 m Total annual campaign budget (£ millions) Digital newsbrands’ recommended share of budget: Source: Benchmarketing 2018 1. 4%
Brands are missing out on potential profit of £ 15. 8 million in the EVERYDAY PICKUPS super-category by underinvesting in newsbrands Current 'everyday pickups' super-category spend = £ 554 m Current investment in print newsbrands 2. 9% = £ 16. 1 m Current investment in digital newsbrands 0. 6% = £ 3. 3 m Total missing profit Campaign profit £ 16. 1 m x £ 0. 12 = £ 1. 9 m Campaign profit £ 3. 3 m x £ 0. 32 = £ 1. 1 m £ 15. 8 m Recommended average investment in print newsbrands 7. 0% = £ 38. 8 m Recommended average investment in digital newsbrands 1. 4% = £ 7. 8 m Potential campaign profit £ 38. 8 m x £ 0. 41 = £ 15. 9 m Potential campaign profit £ 7. 8 m x £ 0. 37 = £ 2. 9 m Missing profit £ 15. 9 m - £ 1. 9 m = £ 14 m Missing profit £ 2. 9 m - £ 1. 1 m = £ 1. 8 m Sources: Benchmarketing 2018 PROI analysis, SMI and Nielsen 2017 spend data
Confectionery and snacks brands are missing out on £ 5. 8 million potential profit using the same calculation, which is a lot of chocolate bars!
% weekly carry-over Audio-visual channels have strong adstocks in the fast-moving low value EVERYDAY PICKUPS super-category. Print newsbrands have value as a supplementary medium 77% 76% 63% 66% 36% 25% TV Cinema OOH Radio Magazine Print newsbrands Digital display 57% 52% Digital video Digital search 46% Estimated 2017 share of media budget 49. 7% 8. 0% 1. 1% 1. 4% Based on 71 cases in the UK 26. 5% 0. 9% 2. 9% 7. 5% 2. 0% Source: Planning for profit, Newsworks, 2018
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