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Ad impact:
what you don’t know
could hurt your bottom line



busting popular media myths




Updated Fall 2009
MYTH >               NO ONE READS magazines,
                       especially younger consumers.
REALITY > Magazine usage has grown over the past five years at a
          higher rate than usage of all other media except the web
                       5-Year Trend in Media Usage 2005 – 2009
                       Total users in thousands ( % increase )
                                        135,282
            Internet 2005
                        2009            163,376

                                        180,620
        Magazines
                                        189,315

                                        211,757
           Outdoor
                                        221,551

                                        202,873
          Television
                                        210,958

                                        180,839
              Radio
                                        184,358

                                        167,192
        Newspapers
                                        163,918

                                        214,774
        Total Adults
                                        224,899
                       Source: MRI Spring studies 2005 and 2009




REALITY > Readership continues to be strong for adults 18-34
                       Magazine Readers (’000) Adults 18–34
                        2005            58,945                                                                                 100
                        2009            60,017                                                                                  102

                       Median Issues/Month, Adults 18–34
                        2005            8.4                                                                                    100
                        2009            8.6                                                                                     102
                       Base: Magazine Readers, U.S. Adults 18+
                       Source: MRI, Spring Studies 2005 and 2009




REALITY > Top 25 magazines outperform the top 25 primetime
          TV programs in all major demos, including adults
          18-34 and teens
                       Gross Rating Points of Top 25 Magazines and Prime-Time TV Programs
                       adults 18 – 34
                        prime-time tv programs                             100
                        magazines                                                                                                     260

                       teens 12 – 17
                                                             72
                                                                                                                         186
                       Sources: Carat Insight; Nielsen September 2007 – May 2008 (Prime regularly scheduled programs);
                       MRI Fall 2008; MRI Twelveplus 2008
MYTH >                         Cutting my magazine budget
                                 WON’T COMPROMISE ad results.
REALITY > Magazines perform best through the purchase funnel,
          especially in brand favorability and purchase intent
                                 Incremental Effect of Medium on Brand Metrics
                                                                      +23.0




                                                                 }
                                                                                                                                   +10.9                      +11.9




                                                                                                                                                          }
                                                                                                                             }
                                                                7.8     7.5   7.7

                                        +12.9                                                                                              6.5                        6.7
                                                                                                   +10.8
                                   }


                                                                                                 }
            Point Difference >




                                          4.6   4.7
                                                                                             4.2
                                  3.6                                                                        3.7                                        3.6
                                                                                                     2.9
                                                                                                                             2.5
                                                                                                                                     1.9
                                                                                                                                                               1.6

            %>                    28      36    36              34     33     33             39      27      34              23      17    60           30     13     56

                                 Aided Brand                       Ad                         Message                         Brand                     Purchase
                                  Awareness                     Awareness                    Association                    Favorability            Consideration/Intent

                                 • TV=onlyStudies. Source: DynamicofLogic 2009.TV • Incremental Impact of Magazines to TV + Online
                                 Base 39
                                           • Incremental Impact Online to

REALITY > Magazines are the most cost-effective medium throughout
          the purchase funnel, looking at two measures of ROI
        >                        Magazines most consistently generate a low cost per impact
                                 Media Performance for Cost per Impact (CPI)
                                 Brand Awareness                                                                                                                television
                                                                         $0.98
                                                                                                                                                                magazines
                                                                            $1.08
                                                                                                                   $1.97                                        online
                                 Brand Familiarity
                                                                                                                                            $2.61
                                                                                         $1.40
                                                                                                                                           $2.58
                                 Purchase Intent
                                                                                                           $1.77
                                                                                    $1.23
                                                                                                                                            $2.61
                                 Aggregate of 38 studies.
                                 Source: Marketing Evolution, 2008



        >                        For cost per person, the most efficient media combination
                                 always includes magazines
                                 Most Cost Efficient Media Combinations Based on Average Cost per Person
                                                                                                                           magazine             tv           tv              magazine   tv + online
                                                                                       tv only        online only            only            + online    + magazine          + online   + magazine

                                 Aided Brand Awareness
                                 Ad Awareness
                                 Message Association
                                 Brand Favorability
                                 Purchase Consideration/Intent
                                        Denotes most cost-effective medium for metric
                                        Denotes second most cost-effective medium for metric
                                 Aggregate of 10 studies. Source: Dynamic Logic 2009
MYTH >              Magazines aren’t KEEPING PACE
                      in the digital age.
REALITY > Magazines rank #1 at influencing consumers to start
          a search online – higher than newer media options
                       Media That Trigger an Online Search by Age and Gender
                       Medium (percent)                              Total          M              F           18 – 24        25 – 34        35 – 44        45 – 54           55+

                        Magazines                                    44%           40%            47%            36%            44%            45%            45%             44%
                       TV/Broadcast                                  38            40             37             30             39             40             42              38
                       Newspapers                                    36            35             36             21             27             33             40              45
                       Face-to-Face                                  35            34             36             39             43             38             35              27
                       TV/Cable                                      32            35             28             37             42             34             29              23
                       Radio                                         27            30             25             22             34             32             29              21
                       Direct Mail                                   26            24             28             20             27             27             27              27
                       E-mail Ads                                    23            22             23             22             28             24             22              19
                       Internet Ads                                  21            23             18             26             26             22             20              15
                       Online Communities                            11            10             12             23             19             12               7              4
                       Source: BIGresearch, Simultaneous Media Usage Study (SIMM14), June 2009




REALITY > Magazines best complement the web in reaching
          social networkers
                      Index Based on Percent of Consumers Using Facebook or MySpace in Last 30 Days
       Magazines                                                                                                                140
       Newspapers                                                                     84
             Radio                                                                                     104
         Television                                                    62
           Internet                                                                                                                                       175
          Outdoor                                                                                            113
                      Base: Top quintile of usage for each medium.
                      Source: MRI, Spring 2009




REALITY > Magazine digital initiatives have increased in double
          digits every year since 2006
                      Number of Magazine Digital Initiatives Jan-Sept 2006 – 2009
                      % increase
             2006                                              90

             2007                                                                                      169 +88%

             2008                                                                                                  197 +17%

             2009                                                                                                                              254 +29%
                      Magazine digital initiatives cover online and mobile extensions, and include partnerships with companies such as Facebook, Hulu, YouTube and Twitter.
                      Source: MPA Information Center, 2009




                      For more information or to download these charts, go to www.magazine.org/accountability.
                      Cover Photo: 200315774 – 001/photodisc /gettyimages

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Myth Busters: Ad impact, 2009

  • 1. Ad impact: what you don’t know could hurt your bottom line busting popular media myths Updated Fall 2009
  • 2. MYTH > NO ONE READS magazines, especially younger consumers. REALITY > Magazine usage has grown over the past five years at a higher rate than usage of all other media except the web 5-Year Trend in Media Usage 2005 – 2009 Total users in thousands ( % increase ) 135,282 Internet 2005 2009 163,376 180,620 Magazines 189,315 211,757 Outdoor 221,551 202,873 Television 210,958 180,839 Radio 184,358 167,192 Newspapers 163,918 214,774 Total Adults 224,899 Source: MRI Spring studies 2005 and 2009 REALITY > Readership continues to be strong for adults 18-34 Magazine Readers (’000) Adults 18–34 2005 58,945 100 2009 60,017 102 Median Issues/Month, Adults 18–34 2005 8.4 100 2009 8.6 102 Base: Magazine Readers, U.S. Adults 18+ Source: MRI, Spring Studies 2005 and 2009 REALITY > Top 25 magazines outperform the top 25 primetime TV programs in all major demos, including adults 18-34 and teens Gross Rating Points of Top 25 Magazines and Prime-Time TV Programs adults 18 – 34 prime-time tv programs 100 magazines 260 teens 12 – 17 72 186 Sources: Carat Insight; Nielsen September 2007 – May 2008 (Prime regularly scheduled programs); MRI Fall 2008; MRI Twelveplus 2008
  • 3. MYTH > Cutting my magazine budget WON’T COMPROMISE ad results. REALITY > Magazines perform best through the purchase funnel, especially in brand favorability and purchase intent Incremental Effect of Medium on Brand Metrics +23.0 } +10.9 +11.9 } } 7.8 7.5 7.7 +12.9 6.5 6.7 +10.8 } } Point Difference > 4.6 4.7 4.2 3.6 3.7 3.6 2.9 2.5 1.9 1.6 %> 28 36 36 34 33 33 39 27 34 23 17 60 30 13 56 Aided Brand Ad Message Brand Purchase Awareness Awareness Association Favorability Consideration/Intent • TV=onlyStudies. Source: DynamicofLogic 2009.TV • Incremental Impact of Magazines to TV + Online Base 39 • Incremental Impact Online to REALITY > Magazines are the most cost-effective medium throughout the purchase funnel, looking at two measures of ROI > Magazines most consistently generate a low cost per impact Media Performance for Cost per Impact (CPI) Brand Awareness television $0.98 magazines $1.08 $1.97 online Brand Familiarity $2.61 $1.40 $2.58 Purchase Intent $1.77 $1.23 $2.61 Aggregate of 38 studies. Source: Marketing Evolution, 2008 > For cost per person, the most efficient media combination always includes magazines Most Cost Efficient Media Combinations Based on Average Cost per Person magazine tv tv magazine tv + online tv only online only only + online + magazine + online + magazine Aided Brand Awareness Ad Awareness Message Association Brand Favorability Purchase Consideration/Intent Denotes most cost-effective medium for metric Denotes second most cost-effective medium for metric Aggregate of 10 studies. Source: Dynamic Logic 2009
  • 4. MYTH > Magazines aren’t KEEPING PACE in the digital age. REALITY > Magazines rank #1 at influencing consumers to start a search online – higher than newer media options Media That Trigger an Online Search by Age and Gender Medium (percent) Total M F 18 – 24 25 – 34 35 – 44 45 – 54 55+ Magazines 44% 40% 47% 36% 44% 45% 45% 44% TV/Broadcast 38 40 37 30 39 40 42 38 Newspapers 36 35 36 21 27 33 40 45 Face-to-Face 35 34 36 39 43 38 35 27 TV/Cable 32 35 28 37 42 34 29 23 Radio 27 30 25 22 34 32 29 21 Direct Mail 26 24 28 20 27 27 27 27 E-mail Ads 23 22 23 22 28 24 22 19 Internet Ads 21 23 18 26 26 22 20 15 Online Communities 11 10 12 23 19 12 7 4 Source: BIGresearch, Simultaneous Media Usage Study (SIMM14), June 2009 REALITY > Magazines best complement the web in reaching social networkers Index Based on Percent of Consumers Using Facebook or MySpace in Last 30 Days Magazines 140 Newspapers 84 Radio 104 Television 62 Internet 175 Outdoor 113 Base: Top quintile of usage for each medium. Source: MRI, Spring 2009 REALITY > Magazine digital initiatives have increased in double digits every year since 2006 Number of Magazine Digital Initiatives Jan-Sept 2006 – 2009 % increase 2006 90 2007 169 +88% 2008 197 +17% 2009 254 +29% Magazine digital initiatives cover online and mobile extensions, and include partnerships with companies such as Facebook, Hulu, YouTube and Twitter. Source: MPA Information Center, 2009 For more information or to download these charts, go to www.magazine.org/accountability. Cover Photo: 200315774 – 001/photodisc /gettyimages