Magazine Handbook 2009 (source: MPA) by Robert Witteman

MAGAZINES the medium of action a comprehensive guide and handbook 2009/10 www.magazine.org

Top Reasons to Advertise in Magazines

Magazines and magazine ads garner the most attention: BIGresearch studies show that when consumers read magazines they are much less likely to engage with other media or to take part in non-media activities compared to the users of TV, radio or the internet. According to research from JackMyers, when consumers were asked to rate media based on how likely they are to pay attention to the advertising messages, magazines ranked at or near the top of the list. — see pages 30 and 32

Magazine advertising is valuable content: Consumers value magazine advertising, according to numerous studies. Yankelovich and Dynamic Logic both report that consumers are more likely to have a positive attitude toward advertising in magazines compared to other media. In addition, consumers are more likely to turn to magazines to search for information across a variety of categories compared to the internet, based on research from MediaVest — see pages 31, 54, 55, 57 and 66

Magazines supply credibility: Consumers trust and believe magazines and magazine advertising more than other media. Simmons Multi-Media Engagement Study shows magazines score higher on being “trustworthy” compared to TV or the internet. Other independent research confirms that consumers place significant trust in magazine advertising. — see pages 29 and 35

Magazine print and digital audiences are growing: The number of magazine readers as well as the average number of magazine issues read in the past month has grown over the past five years. In addition, magazine website usage is growing faster than web usage overall. — see pages 7 and 10 www.magazine.org/handbook

Top Reasons to Advertise in Magazines

Magazine advertising is relevant and targeted: Consumers consider magazine advertising more relevant than advertising in other media.With a range of titles that appeal to a wide variety of demographics, lifestyles and interests, advertisers can hone in on targets that fit their needs. — see pages 34 and 12

Magazines are a leading influence on word-of-mouth: Magazine readers are more likely than users of other media to influence friends and family on products across a variety of categories. Magazines are also most likely to complement the web in reaching social networkers, whom marketers increasingly favor in generating buzz.

— see page 73

Magazine audiences accumulate faster than you think— and with lasting impact: The average monthly magazine accumulates approximately 60% of its audience within a month’s time, and the average weekly magazine accumulates nearly 80% of its audience in two weeks.

— see page 74

Magazine advertising sells: Several studies demonstrate that magazines are generally the strongest driver of purchase intent. Perhaps this is because more than half of all readers act on magazine ads, according to Affinity Research. — see pages 36 and 42

www.magazine.org/handbook

Top Reasons to Advertise in Magazines

Magazines improve advertising ROI: Based on a recent analysis of cross-media accountability studies, Marketing Evolution found magazines most consistently generate a favorable cost per impact throughout the purchase funnel. Multiple studies confirm that allocating more money to magazines in the media mix improves marketing and advertising ROI across a broad range of product categories. — see page 43 and 44

Magazine advertising drives web search, traffic and action taking: BIGresearch proves that magazines lead other media in influencing consumers to start a search for merchandise online, ranking at or near the top by gender as well as by age. In addition, studies from Marketing Evolution, JupiterResearch and the OPA show that ads in magazines or on magazine websites boost web traffic, spur online purchase and offline behavior. — see pages 70 – 72

Magazine advertising drives effectiveness throughout the purchase funnel: Magazines generally contribute more than other media when looking at consumers’ purchase decision-making process. As a result, magazines boost the effectiveness of other media at all stages of the funnel. — see pages 41 and 42

Magazines deliver reach: Across major demographic groups, the combination of the top 25 magazines delivers considerably more rating points than the top 25 TV shows. — see page 75

www.magazine.org/handbook

CONTENTS

THE MAGAZINE HANDBOOK 2009/10 www.magazine.org/handbook

A Comprehensive Guide for Advertisers, Advertising Agencies and Consumer Magazine Marketers

Magazine Publishers of America 810 Seventh Avenue, 24th Floor

1 Top Reasons to Advertise in Magazines

7 8 9 10 11 12 13

Magazine/Audience Metrics Magazine Readership Remains Strong Number of Magazines Magazine Websites Continue to Grow Magazine Website Usage is Growing Faster than Web Usage Overall Magazines Continue to Target Consumers’ Interests Magazines Inform and Entertain Editorial and Advertising Contribute to the Reader Experience

14 15 16 17 18 19 20 21

Circulation Metrics Magazines Let Consumers Choose Magazines Reach Mass and Niche Audiences Consumers Invest in Their Magazines Bulk of Paid Circulation Revenue is Subscription Based Consumers Rely on Multiple Outlets to Buy Their Magazines Magazines Make the Cash Register Ring Multiple Sources Contribute to a Magazines Bottom Line Public Place Copies Have Great Appeal

22 23 24 25 26 27 28

Advertising Metrics Magazine Advertising Rate Card Revenue Exceeds $23 Billion Magazine Spending by Quarter Magazines’ Share of Media Spending Stays Strong The Top 12 Advertising Categories Top 50 Magazine Advertisers Recall of Magazine Advertising by Type of Unit, Color and Position Unit Size Affects Ad Impact

Magazine Engagement 29 Magazines Are #1 Medium of Engagement 30 Consumers Pay Attention to Magazines

31 32 33 34 35

Consumers Enjoy Magazine Ads More Than Other Media Consumers Like and Pay Attention to Magazine Ads Consumers Feel Positive About Magazine Advertising Magazines Provide a Relevant Advertising Experience Consumers Trust Magazine Advertising the Most

36 37 38 39 40 41 42 43 44

Magazine Advertising Accountability Magazine Advertising and Editorial Gets Readers to Act Magazine Ad Effectiveness Continues to Grow Readers Value and Respond to Magazines Magazines Deliver More Ad Impressions Than TV or Web Magazines Lead in Ad Influence Relative to Time Spent Magazines Boost the Power of Other Media Magazines Drive Results Through the Purchase Funnel Magazines Improve Marketing and Advertising ROI Magazines Consistently Produce a Low Cost per Impact

45 46 47 48 49 50 51 52 53 54 55 56 57 58 59

Accountability by Category Magazines Influence Purchase Behavior Across Categories Magazine Readers Are Influential Consumers Across Categories Auto: Magazines Play a Major Role in Auto Purchase Auto: Magazines Are More Efficient Than Other Media Auto: Magazines Deliver ROI Across the Purchase Funnel Auto: Magazines Communicate the Benefits for Brands Auto: Magazines Exert Sizable Influence on Purchasers Electronics: Magazines Generate Results and Influence Entertainment: Magazines Play a Leading Role in Results Consumers of Entertainment Products Choose Magazines Fashion/Beauty: Making Ad Results More Attractive Financial: Magazines Pay Dividends on Media Investments Food: Magazines Spice Up Results Green: Targeting Environmentally Conscious Consumers Home Improvement: Magazines Motivate Consumers to Act

60 61 62 63 64 65 66 67 68 69 70 71 72 72 74 75

Luxury Goods: Buyers More Likely to Use Magazines and Web Packaged Goods: Influencing Consumer Purchasing Decisions Packaged Goods: Magazines Boost ROI/Target Shoppers Pharmaceutical: A Prescription for Positive Results Pharmaceutical: Magazines Are a Top Healthcare Resource Pharmaceutical: Magazines Lead in Driving Purchase Intent Pharmaceutical: Magazines Provide Healthy Ad Results Retail: Magazines Improve ROI and Influence Purchases Technology: Magazines Target Key Purchase Influencers Travel: Magazines Are A Destination for Travel Aficionados Magazines Excel in Driving Web Search Magazine Ads Build Web Traffic across Purchase Funnel Magazines Prompt Online Action Taking Magazines Influence Word of Mouth Magazines Accumulate Reach Faster Than Commonly Believed Magazines Provide Better Reach Compared to TV

76 77 78 79

Reader Characteristics Magazine Readers are Innovators Magazines Appeal to Younger Adults Magazines Appeal to Diverse Readers Magazine Reading by Location

80 81 82 83

Creative Effectiveness Magazines Link Ad Engagement and Ad Effectiveness Engagement Findings Can Predict Creative Impact Including a URL in Magazine Ads Increases Web Visits Magazines Show Immunity to Ad Wearout

Case Studies 84 The 28th Annual Kelly Award Winners 87 Resources 88 MPA Resources

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Readership Trends

Magazine Readership Remains Strong More then 4 out of 5 U.S. adults

Magazine Readers

read magazines.

Adults 18+

Magazine audience —including readership

(000)

2004

2008

179,373

189,681

Index to 2004

100

106

Adults 18 – 34

58,916

60,461

Index to 2004

100

103

among younger adults — has remained strong over the past five years despite

Average Issues/Month

the growth of new media options.

Adults 18+

11.0

11.5

Index to 2004

100

105

Adults 18 – 34

12.1

13.1

Index to 2004

100

108

Coverage Adults 18+

84%

85%

Index to 2004

100

101

Adults 18 – 34

88%

Index to 2004

100

Base: Magazine Readers, U.S. Adults 18+, 230 Measured Magazines Source: MRI, Fall Studies 2004 and 2008

www.magazine.org/handbook

Number of Magazine Titles

A Magazine for Everyone Reading a magazine is an intimate, involving experience that fulfills the personal needs and reflects the values of the reader. This is one reason the

Number of Magazines 1999 â&#x20AC;&#x201C; 2008 year

total*

consumer

1999

17.970

9,311

2000

17,815

8,138

2001

17,694

6,336

2002

17,321

5,340

average reader spends over 43

2003

17,254

6,234

minutes reading each issue.

2004

18,821

7,188

2005

18,267

6,325

2006

19,419

6,734

2007

19,532

6,809

2008

20,590

7,383

For a list of the number of magazines by category, visit www.magazine.org.

*Includes, but is not limited to, consumer magazines in North America regardless of publishing frequency. Source: MRI Fall, 2008, National Directory of Magazines, 2009

www.magazine.org/handbook

Number of Magazines with Websites

Magazine Websites Continue to Grow Even as Print Magazines Are Valued The number of consumer magazine websites has increased 78% since 2005, extending the reach and influence of magazines’ editorial and advertising messages to an even wider audience. Consumers who use both magazine websites and their print counterparts overwhelmingly state that the printed magazine still has value.

Number of Magazines with Websites 2005 – 2009 year

total

consumer only

2005

10,131

4,712

2006

10,818

5,395

2007

11,623

5,950

2008

13,247

6,453

2009

15,204

7,473

Source: MediaFinder, 2009 (data as of March, 2009)

Keep up with the latest magazine digital initiatives at www.magazine.org/digital.

Dual Magazine-Website Users Value Print by percent % strongly agree: “Online version could easily replace print version in next five years”

Fashion/Beauty

15%

Entertainment

Health & Wellness

Food/Cooking

Base: Dual users of magazine related website (by genre) Source: MediaVest Print/Digital Study, 2008

www.magazine.org/handbook

Magazine Website Traffic

Magazine Website Usage is Growing Faster Than Web Usage Overall Magazine Website Growth unique visitors

reach

sessions

total minutes

(millions)

(percent)

(millions)

(billions)

Fourth Quarter 2006

62.5

39%

386.6

1.7

Fourth Quarter 2007

67.5

42%

434.3

1.8

Fourth Quarter 2008

75.0

45%

546.2

2.4

Percent of Change 2008 vs. 2006

20%

15%

41%

U.S. Web Growth 2008 vs. 2006

First Quarter 2007

63.2

40%

427.7

1.9

First Quarter 2008

70.7

43%

497.3

2.2

First Quarter 2009

75.8

45%

538.4

2.3

Percent of Change 2009 vs. 2007

20%

13%

26%

21%

U.S. Web Growth 2009 vs. 2007

Source: Nielsen Online analysis, based on quarterly averages of 476 magazine brands online, Q4 2008, Q1 2009

www.magazine.org/handbook

New Magazine Launches

Magazines Continue to Target Consumers’ Interests Every year a plethora of new magazines are introduced to satisfy consumers’ growing need to be informed and entertained. The variety of new magazine titles launched each year is a testament to the magazine industry’s commitment to meeting the needs and interests of consumers. New magazine launch announcements are highlighted on a monthly basis at www.magazine.org/launches.

New U.S. Magazine Launches by Category in 2008 18 Metropolitan/Regional/State

2 Art

18 Sports

2 Bridal

14 Crafts/Games/Hobbies/Models

2 Children’s

13 Automotive

2 Comic Technique/Comics

11 Home/Home Service

2 Computers

9 Epicurean

2 Dressmaking

9 Nature/Ecology

2 Entertainment / P erforming Arts

9 Special Interest

2 Gaming

8 Fashion/Beauty/Grooming

2 Gay/Lesbian

8 Women’s

2 Military/Naval

7 Political/Social Topics

2 Motorcycles

5 Fitness

2 Photography

5 Health

2 Science/Technology

5 Religion

2 Sex

4 Black/Ethnic

1 Fishing/Hunting

3 Boating

1 Gardening

3 Business/Finance

1 Men’s

3 Camping/Outdoor Recreation

1 Mystery

3 Dogs/Pets

1 Teen

3 Literary/Reviews/Writing 3 Music

www.magazine.org/handbook

1 Travel 195

Total New Magazine Launches

Note: This list represents weekly, bi-monthly, monthly, and quarterly titles only. Source: Samir Husni’s Guide to New Consumer Magazines, 2009.

Percent of Total Editorial Pages by Subject

Magazines Inform and Entertain In 2008, the 160 magazines measured by Hallâ&#x20AC;&#x2122;s Magazine Reports showed that the top three subject categories were Entertainment/Celebrity, Wearing Apparel/Accessories, and Travel/Transportation. Number of Editorial Pages 2008 type of editorial

pages

percent

type of editorial

pages

percent

Entertainment/Celebrity

28,496.0

15.8%

General Interest

6,825.0

3.8%

Wearing Apparel/Accessories

21,835.6

12.1

Self-Help/Relationships

5,257.4

2.9

Travel/Transportation

15,178.4

8.4

Building

4,641.7

2.6

Home Furnishings/Management

14,998.0

8.3

Personal Finance

4,483.7

2.5

Food & Nutrition

12,943.4

7.2

Fitness/Beauty

3,726.0

2.1

Culture

11,279.1

6.3

Global/Foreign Affairs

2,408.9

1.3

Business & Industry

10,281.1

5.7

Gardening & Farming

2,380.3

1.3

Sports/Recreation/Hobby

8,367.6

4.6

Children

2,287.7

1.3

Health/Medical Science

7,934.3

4.4

Consumer Electronics

1,743.6

1.0

Beauty & Grooming

7,350.3

4.1

Fiction

618.0

0.3

National Affairs

7,030.7

3.9

Total Editorial

Source: Hallâ&#x20AC;&#x2122;s Magazine Reports, 2009

www.magazine.org/handbook

180,066.8

100.0%

Editorial/Advertising Ratios

Editorial and Advertising Contribute to the Reader Experience Editorial vs. Advertising Pages 1999 â&#x20AC;&#x201C; 2008

editorial pages 53.8% advertising pages 46.2%

Most magazines contain both editorial and advertising content. Over the past ten years, the ratio of editorial and advertising content has remained relatively equal.

year

% editorial

1999

50.6

49.4

2000

49.7

50.3

2001

54.9

45.1

2002

53.4

46.6

2003

52.1

47.9

2004

51.9

48.1

2005

52.8

47.2

2006

53.0

47.0

2007

52.9

47.1

2008

53.8%

46.2%

Source: Hallâ&#x20AC;&#x2122;s Magazine Reports, 2009

www.magazine.org/handbook

% advertising

Circulation Mix

Magazines Let Consumers Choose Subscription/Single Copy Sales 1999 â&#x20AC;&#x201C; 2008

subscription 88% single copy 12%

While some consumers prefer the convenience of home or work delivery, others choose to buy copies of their favorite magazines at supermarkets and other retail outlets. In 2008, 88% of total circulation was from magazine subscriptions, while single copy sales accounted for the remaining 12%.

www.magazine.org/handbook

year

subscription

single copy

total

1999

310,074,081

62,041,749

372,115,830

2000

318,678,718

60,240,260

378,918,978

2001

305,259,583

56,096,430

361,356,013

2002

305,438,345

52,932,601

358,370,946

2003

301,800,237

50,800,854

352,601,091

2004

311,818,667

51,317,183

363,135,850

2005

313,992,423

48,289,137

362,281,559

2006*

321,644,445

47,975,657

369,062,102

2007*

322,359,612

47,433,976

369,793,587

2008*

324,818,012

43,664,772

368,363,773

*Paid and Verified -Effective 2006, ABC established verified subscription circulation as a category. Source: Averages calculated by MPA from each year's ABC Publishers Statements,1999-2008. Comics, annuals and international editions are not included.

Number of Magazine Titles by Circulation Size

Magazines Reach Mass and Niche Audiences Magazines with circulation ranging from 750,000 to 4.9 million represent more than half of total reported circulation. Total Paid and Verified Circulation 2008 Magazines by Circulation Size Groups MAGAZINES # in Group

circulation size

Over 10,000,000

TOTAL CIRCULATION

% of total

0.3%

for group

% of total circ.

44,495,582

13.2%

5,000,000

–

9,999,999

0.5

21,023,504

5.7

2,000,000

–

4,999,999

5.6

93,329,504

25.3

1,000,000

–

1,999,999

9.3

77,121,142

20.9

750,000

–

999,999

5.7

30,226,207

8.2

500,000

–

749,999

9.5

34,866,999

9.5

250,000

–

499,999

15.2

32,357,727

8.8

100,000

–

249,999

139

23.5

22,867,641

6.2

Under 100,000

180

30.4

8,075,849

2.2

Totals

592

100.0%

368,363,773

Source: Averages calculated by MPA from Audit Bureau of Circulations Publishers Statements, 2008. Comics, annuals and international editions are not included.

www.magazine.org/handbook

100.0%

Average Single Copy/Subscription Price

Consumers Invest in Their Magazines Over the years, consumers have

Cost of Magazines 1999 â&#x20AC;&#x201C; 2008 average price single copy

average price 1-year basic subscription

1999

3.44

24.83

hard-earned money to purchase

2000

3.83

24.41

them on the newsstand and/or

2001

3.88

25.30

by subscription.

2002

4.11

25.70

2003

4.22

26.55

2004

4.40

25.93

2005

4.40

26.78

2006

4.46

27.30

2007

4.53

27.83

2008

4.70

28.01

proven their commitment to

year

magazines by spending their

Sources: Averages calculated by MPA from ABC Publishers Statements, 1999-2008

www.magazine.org/handbook

Circulation Revenue

Bulk of Paid Circulation Revenue is Subscription Based In 2008, subscriptions accounted for 68% of total paid circulation revenue, while single copy sales accounted for the remaining 32% Paid Circulation Revenue 2008 Subscriptions

$ 6,703,555,697

Single Copy

$ 3,116,510,643

Total

$ 9,820,066,340

Source: Averages calculated by MPA from ABC Publishers Statements, 2008. Verified circulation is not included in revenue calculations.

subscription 68% single copy 32%

www.magazine.org/handbook

Location of Single Copy Purchases

Consumers Rely on Multiple Outlets to Buy Their Magazines The top three newsstand outlets account for more than 60% of retail sales Retail Sales by Channel 2008

by percent

37%

Supermarkets 15%

Supercenters 11%

Drugstores Bookstores

Discount Stores

Terminals

Convenience Stores

Newsstand

Club-Bargain

Others

6% Source: Harrington Associates, 2009

www.magazine.org/handbook

Magazines at Retail

Magazines Make the Cash Register Ring

Magazines

(in dollars)

(by percent)

80%

.58 Snacks

Candy, Gum, Mints .34

Gum

73 Snacks 56

.27 Candy

Beverages .12

Carbonated Beverages .08

Gift Cards

Source: Willard Bishop Grocery Super Study, 2007

Base: U.S. Adults 18+ Source: WSL Strategic Retail, Magazine Purchaser Survey, 2007

www.magazine.org/handbook

Magazine Revenue Mix

Advertising and Circulation Revenue Contribute to a Magazineâ&#x20AC;&#x2122;s Bottom Line Magazine Revenue

2006

2007

Advertising 57% 59% Subscriptions 31% 28% Single Copy 12% 13% Source: PriceWaterhouseCoopers Financial Survey, conducted for MPA, 2008, 2007

www.magazine.org/handbook

Public Place Readership

Public Place Copies Have Great Appeal Public Place Copies Build Audience • 80% of all adults have read magazines in a public place at some time in the past month • Public place magazines generate an average of 19 readers per copy per month Public place readers have positive attitudes about the experience • 87% pay the same or more attention to magazines read in a public place compared to non-public place reading • 68% look for their favorite magazines when visiting public places • 52% use the opportunity to try magazines they don't ordinarily read

www.magazine.org/handbook

Public Place Readers Are Engaged Readers public place readers

total mag readers

Time spent reading magazines per month (hours)

6.4

5.9

Number of individual titles read

5.1

4.6

Number of magazines purchased per month

2.3

Source: McPheters & Co. AudienceLab, 2008

Magazine Ad Pages and Revenue Trend

Magazine Advertising Rate Card Revenue Exceeds $23 Billion Ad pages and revenue are updated quarterly on the MPA website at www.magazine.org/pib. Revenue is reported at one-time open rate card rates.

Magazines Ad Pages and Rate Card Revenue 1999 â&#x20AC;&#x201C; 2008 year

pages

rate card revenue

1999

255,383

$ 15,508,357,011

2000

286,932

17,665,305,333

2001

237,612

16,213,541,737

2002

225,619

17,254,061,740

2003

225,831

19,216,085,358

2004

234,428

21,313,206,734

2005

243,305

23,068,182,388

2006

244,907

23,996,768,141

2007

244,737

25,501,793,278

2008

220,813

$ 23,652,018,530

Note: Sunday supplements excluded. Source: PIB (data as of January 2009)

www.magazine.org/handbook

Third Forth

28%

Magazine Spending by Quarter

Magazine Advertising Rate Card Revenue is Highest in the Second and Fourth Quarters Percent of Total by Quarter

Magazine Rate Card Revenue 2008 billions

4th 3rd

1st 2nd

First Quarter Second Quarter

6.3

Third Quarter

5.5

Fourth Quarter

6.6

Total

first quarter 22% second quarter 27% third quarter 23% forth quarter 28%

www.magazine.org/handbook

$ 5.3

Note: Sunday supplements excluded. Source: PIB (data as of January 2009)

$ 23.7

Advertising Share of Market: All Media

Magazinesâ&#x20AC;&#x2122;Share of Media Spending Stays Strong Only three media showed increases of one point or more for 2008 vs. 2004: consumer magazines, cable TV and internet Share of Advertising Dollars by Medium 2004

2005

2006

2007

15.1%

15.8%

16.7%

16.3%

Sunday Magazines

1.1

1.2

1.3

Local Magazines

0.3

Hispanic Magazines

0.1

B-to-B Magazines

3.7

3.4

3.0

2.7

Network TV

16.5

16.1

15.9

15.5

16.3

Cable TV

10.4

11.2

11.5

12.5

13.6

Spot TV

13.2

11.7

12.5

11.3

11.7

Syndicated TV

2.8

2.9

2.8

2.7

3.1

Spanish Language TV

1.9

2.1

2.2

2.3

2.5

National Newspapers

2.3

2.2

2.0

17.4

17.1

15.9

14.9

13.8

Hispanic Newspapers

0.2

Network Radio

0.7

National Spot Radio

1.8

1.6

1.5

Local Radio

5.2

5.1

4.9

4.7

4.4

Internet

5.1

5.7

6.4

7.7

6.9

Consumer Magazines

Local Newspapers

Outdoor Total Source: TNS Media Intelligence (data as of March 2009)

www.magazine.org/handbook

2008

2.3

2.4

2.5

2.6

2.7

100.0

Magazine Advertising Categories

TheTop12 Advertising Categories Account for 87% of All Spending In 2008, Toiletries & Cosmetics was the largest magazine advertising category, followed by Drugs & Remedies, and Food & Food Products, according to the Publishers Information Bureau (PIB). Magazine rate card reported revenue by class is made available quarterly at www.magazine.org/pib.

Magazine Advertising Rate Card Reported Revenue Top Categories 2007/2008 category

2007

2008

$ 2,575,541,213

$ 2,476,298,686

Drugs and Remedies

2,599,844,272

2,223,066,800

Food and Food Products

2,124,215,174

2,099,542,708

Apparel and Accessories

2,175,732,680

2,035,274,756

Retail

1,897,826,789

1,881,949,565

Media and Advertising

1,781,356,052

1,743,892,205

Direct Response Companies

1,824,735,774

1,670,112,388

Automotive

2,015,547,632

1,602,279,970

Home Furnishings and Supplies

1,564,281,317

1,384,338,034

Financial, Insurance and Real Estate

1,383,329,587

1,231,277,017

Public Transportation, Hotels and Resorts 1,170,687,367

1,152,174,703

Toiletries and Cosmetics

Technology Top Categories Total Note: Sunday supplements excluded. Source: PIB (data as of January 2009)

www.magazine.org/handbook

1,079,264,176

974,403,735

$ 22,192,362,033

$ 20,474,610,567

Top 50 Magazine Advertisers

Leading Marketers Depend on Magazines Top 50 Marketers’ Spending Equals 33% of Overall Magazine Revenue

1 Procter & Gamble Co

$ 899,693,375

2 General Motors Corp

432,953,105

27 Nestlé SA

111,210,484

3 Kraft Foods Inc

389,597,247

28 Estée Lauder Cos Inc

108,931,283

4 Johnson & Johnson

364,117,555

29 Hearst Corp

106,389,891

5 L’Oréal SA

312,704,476

30 Target Corp

104,004,022

6 Unilever

199,530,830

31 Merck & Co Inc

103,897,553

7 Time Warner Inc

195,088,460

32 Astrazeneca PLC

103,297,354

8 GlaxoSmithKline PLC

187,975,032

33 Bayer AG Group

101,993,804

9 LVMH Möet Hennessy Louis Vuitton SA

184,548,006

34 Sony Corp

99,510,541

10 Pfizer Inc

172,862,312

35 Verizon Communications Inc

97,033,997

11 Campbell Soup Co

172,368,799

36 CitiGroup

93,573,650

12 Walt Disney Co

171,013,429

37 Bose Corp

88,495,725

13 Advance Publications Inc

165,923,523

38 Bristol-Myers Squibb Co

84,945,883

14 Joh A Benckiser GMBH

163,652,993

39 Iovate Health Sciences Inc

84,599,147

15 PepsiCo Inc

162,702,663

40 Women’s Marketing Inc

84,440,921

16 Clorox Co

145,582,421

41 Synergistics Marketing Inc

83,563,067

17 Nissan Motor Co LTD

141,503,333

42 Cerberus Capital Mgt LP

80,447,184

18 Toyota Motor Corp

139,185,348

43 GAP Inc

77,022,474

19 Honda Motor Co LTD

137,838,336

44 Church & Dwight Co Inc

76,854,990

20 Wal-Mart Stores Inc

134,363,337

45 Sanofi-Aventis

75,289,904

21 Mars Inc

132,383,906

46 Bradford Exchange LTD

74,353,465

22 US Government

128,933,377

47 Coca-Cola Co

73,022,332

23 Berkshire Hathaway Inc

118,467,058

48 Dillards Inc

71,813,286

24 Kellogg Co

117,455,436

49 Media Networks Inc

71,559,003

25 Ford Motor Co

117,106,223

50 Abbott Lab

Note: Sunday supplements excluded. Source: PIB (data as of January 2009)

www.magazine.org/handbook

26 GE General Electric Co

Total Top 50 Rate Card Reported Spending

$ 113,279,308

71,279,716 $ 7,728,359,564

Readership by Advertising Unit Type

Recall of Magazine Advertising by Type of Unit, Color and Position A compilation of studies done by Affinity Research shows that creative execution affects recall, as seen in the data for unit size and paper stock.

Impact of Magazine Ads

(average)

type of magazine advertisement UNIT *

recall index

Full page 100 Inside front cover 109 Inside back cover 106

Comparable recall rates among readers for ads in both the first half and second half of magazine issues demonstrate that a reader’s interest in the magazine is sustained throughout the entire issue.

Back cover 116 Multiple-page units 115 Two-page spread 109 Less-than-full-page

Black and white 100

COLOR

Spot color(s)

*4-Color 108 POSITION

Second half of issue 100 First half of issue 102

PAPER STOCK

Regular Paper 100 **Heavy Paper 118

0> *Four color, (including 5th color or metallics) ** “Heavy” defined as any paper weight heavier than run-of-book stock Source: Affinity Research VISTA Print Rating Service, 2009

www.magazine.org/handbook

100 >

Readership by Advertising Unit Size

Unit Size Affects Ad Impact MRI Starch finds that unit size has an impact on advertising results. MRI Starch’s data show that, as ad size increased, so did readership. “Noted” and “read some” scores generally show greater increases than “read most” scores as the number of ad pages increased. This indicates that, though readers may elect not to read a longer advertisement in its entirety, it still has positive impact.

Readership of Multiple-Page Ads

– Averages Indexed vs 4-Color Spread Ads

noted

associated

read some

read most

Spread

100

2-page insert*

105

106

108

107

3-page run-of-book

116

115

124

3-page insert

120

121

137

121

3-page gatefold

124

125

139

143

4-page run-of-book

124

123

139

121

4-page insert

118

115

134

121

4-page gatefold

124

127

137

136

6-page run-of-book

136

146

155

129

8-page run-of-book

151

125

197

121

8-page insert

127

147

136

* Differs from a spread in that an insert is on a single page but comprises both sides of the same page. Note: Read Most scores are based on ads with 50+ words only. Source: MRI Starch In-Person Studies (January 2004 – December 2007)

www.magazine.org/handbook

In an Age of Interruption, Magazines Engage

Magazines Are #1 Medium of Engagement — Across All Dimensions Measured New data from Simmons’ Multi-Media Engagement Study find magazines continue to score significantly higher than TV or the Internet in ad receptivity and all of the other engagement dimensions, including “trustworthy” and “inspirational.”

Comparing Media Channels

magazines television internet

Average engagement dimension scores ( 100 = least engaged / 500 = most engaged ) Ad Receptivity 286 212 234

Trustworthy 337 279 318

Life-Enhancing 304 217 279

Social Interaction 315 285 288

Personal Timeout 312 311 260

Inspirational 284 250 232 100

www.magazine.org/handbook

150

200

250

Source: Simmons Multi-Media Engagement Study, 2008 Full-Year Study

300

350

In an Age of Interruption, Magazines Engage

Consumers Pay Attention to Magazines BIGresearch found that magazine readers are least likely of all media users to engage in other (non-media) activities while reading.

Consumers Pay Attention to Magazines by percent Percent of consumers who regularly engage in non-media activities while using media. Lower percentage = better performance. listen to radio

27% 25%

go online

In addition, their data show that when consumers read magazines, they are much less likely to engage in other media. Only 9% of magazine readers will simultaneously go online, only 14% will listen to the radio, and only one in four (23%) will watch TV.

watch tv

20% 10%

read newspapers read magazines

Source: BIGresearch Simultaneous Media Usage Study, 2008

Consumers Pay Attention to Magazines regularly engage in other read magazines medium when you...

See page 80 for research that links reader engagement to increased ad recall and action taking.

watch watch tv

listen to radio

read newspapers

go online

read magazines

n/a

23%

14%

n/a

read newspaper

n/a

go online

n/a

listen to radio

n/a

watch tv

n/a

Source: BIGresearch Simultaneous Media Usage Study, 2008

www.magazine.org/handbook

by percent

Lower percentage = better performance.

In an Age of Interruption, Magazines Engage

Consumers Enjoy Magazine Advertising More Than Advertising in Other Media Yankelovich reports that magazines rank #1 out of 16 media for consumers having a positive impression of advertising. This may be because magazines are second only to video games for consumers enjoying the content at the time they saw the ad. Magazines also rank very highly for the relevance of information in the medium and consumersâ&#x20AC;&#x2122; overall opinion of the medium (see page 34).

Similarly, magazine readers have a positive attitude to the advertising in the medium, according to research from Dynamic Logic.

Top 5 Ranking (of 16 Media) on Key Ad Performance Areas: Ads (in this medium) made magazines Advertising made a positive 1impression a positive impression: Magazines

2 3 4 5

TV Radio Enjoying content (in this medium) at the time I saw the ad: Email

68% 58% 55%

1 video games 2 magazines 34% 3 radio 4 30% tv 5 newspapers 28%

Internet Banner Social Networking Site

Source: Yankelovich The FuturesMonitor/Sequent Company Yankelovich MONITOR/Sequent Partners, 2008 Source: Partners, 2008

Very/somewhat positive attitude toward advertising 54%

magazines tv

52% 44%

radio internet Source: Dynamic Logic AdReaction 4, 2007

www.magazine.org/handbook

in-store tv newspapers radio

24%

In an Age of Interruption, Magazines Engage

Consumers Like and Pay Attention to Magazine Ads When consumers were asked to rate media based on how likely they are to pay attention to the advertising messages within their respective environments, magazines were number one for total adults (age 18-64) and a close number two among adults 18-24. Younger adults (age 18-24) proved to be more attentive than adults (age 18-64) to ads in all media.

Attention to Advertising magazines

35%

Age 18â&#x20AC;&#x201C;64

40%

Age 18â&#x20AC;&#x201C;24

television

27% 34%

radio

34% 41%

People are more likely to agree that the advertising in magazines enhances their overall media experience, more so than advertising on TV or on the Internet. Ads Enhance Overall Enjoyment of magazines tv online

22% 12%

Source: Time, Inc., Magazine Experience Study, 2007

www.magazine.org/handbook

internet

30% 36%

Note: Adults who use medium and say they are likely to pay attention to advertising. Source: JackMyers Emotional Connections Survey, 2007

In an Age of Interruption, Magazines Engage

Consumers Feel Positive About Magazine Advertising Consumers—including younger consumers —consider magazine advertising useful and valuable. Consumers more strongly attributed negative attributes to advertising in broadcast media and the Internet: • Print advertising, including magazines, intruded the least and was considered the most trustworthy • Consumers viewed advertising on TV, radio and the Internet as repetitive and inconvenient • TV, radio and Internet advertising did not stand out—30% or more of all consumers believed that “all ads in this medium are alike”

Consumer Experiences with Advertising

by percent

Positive Drivers

radio

Ads provide useful information about new products/services

18–24

Ads provide information about product use of other consumers

18–24

18+

magazines

newspapers internet

48% 42

55% 52

38% 37

50% 42

36% 34

39 37

40 38

30 30

40 35

26 31

17 24

33 33

24 30

16 21

31 36

19 25

54 49

38 19

16 20

47 49

23 28

32 36

30 38

21 28

30 38

27 30

64 57

47 50

21 26

43 45

Negative Drivers Ads have no credibility

18+ 18–24

Ads appear at inconvenient moments All ads are alike

18+ 18–24 18+ 18–24

Ads are repeated too often Source: MRI, Fall 2008

www.magazine.org/handbook

age

18+ 18–24

In an Age of Interruption, Magazines Engage

Magazines Provide a Positive and Relevant Advertising Experience Relevance of Ads in Various Media

Opinions of General Ad Formats 56%

Newspaper Ads

Magazine Ads

TV Ads

Billboard/Outdoor Ads

Radio Ads

Cinema Ads

Opt-in Email Ads

Direct Mail

Product Placement

Online Search Ads

Online Ads

Ads on Mobile Devices

7 0

62%

Non-Opt-In Email Ads 20

Very/Somewhat Positive

60 Neutral

Source: Dynamic Logic AdReaction Study, 2007

www.magazine.org/handbook

100

Very/Somewhat Negative

8 0

Very/Somewhat Relevant or Useful Not Very/Not at All Relevant or Useful

80 Neutral

100

In an Age of Interruption, Magazines Engage

Consumers Trust Magazine Advertising the Most Magazine advertising is more trusted than advertising in other media, regardless of age Percent of Adults Age 18 – 54 Who Trust Advertising in Medium 48%

magazines television

40%

internet

40%

Source: Time Inc. “Storytelling in a Multiplatform World,” 2008

Percent of Millennials* Who Trust Advertising in Medium magazines

20%

television

13%

radio internet

11% 6%

*Consumers born between 1977 and 1996 Source: MORI Research, 2006

www.magazine.org/handbook

Accountability: Magazines Get Results

Magazine Advertising and Editorial Get Readers to Act More than half (56%) of readers took action on magazine ads or had a more favorable opinion about the advertiser because of magazine advertising, according to the latest research from Affinity’s VISTA Print Effectiveness Rating Service.

Actions Readers Took or Plan to Take as a Result of Exposure to Specific Magazine Ads

Visit a store, dealer or other location

An analysis of Affinity data over the past four years shows magazine advertising recall and action-taking have increased during this time (see page 37).

Purchase the advertised product or service

Save the ad for future reference

Similarly, more than two out of three (68%) readers took action based on editorial content. The research shows that magazine engagement goes far beyond just “feeling”— it prompts consumers to act.

Actions Taken as a Result of Reading Specific Features/Articles

Consider purchasing the advertised product or service

21%

Have a more favorable opinion about the advertiser

Gather more information about advertised product or service

Visit the advertiser’s website

Recommend the product or service to a friend, colleague or family member 5 Took any action (net)

Saved article for future reference

29%

Passed article along to someone

Gathered more information about the topic

Visited a related website

Took any action (net)

Source: Affinity’s VISTA Print Effectiveness Rating Service, 2008

www.magazine.org/handbook

Accountability: Magazines Get Results

Magazine Ad Effectiveness Continues to Grow Magazine ad effectiveness hit an all-time high in 2008. Two measures of ad effectiveness for magazines—ad recall and actions taken as a result of seeing an ad—both continue to grow, according to Affinity’s VISTA Print Effectiveness Rating Service.

• •

Ad recall has increased by 6% over the past four years Action-taking (based on readers recalling specific ads) increased by 10%

www.magazine.org/handbook

Magazine Advertising Recall 2005

53% 100

2006

53% 100

2007 2008

55% 104 56% 106

Magazine Advertising Actions Taken 2005

51% 100

2006

51% 100

2007 2008 Note: Actions taken based on readers recalling specific ads. Source: Affinity’s VISTA Print Effectiveness Rating Service, 2005 – 2008

54% 106 56% 110

Accountability: Magazines Get Results

Readers Value and Respond to Magazines Regardless of How They Acquire the Magazine Actions Taken or Plan to Take in Response to Magazine Advertising paid

nonpaid

by percent pass-along

total readers

Consider purchasing the advertised product or service

21%

19%

20%

21%

Have a more favorable opinion about the advertiser

Gather more information about product or service

Visit the advertiserâ&#x20AC;&#x2122;s website

Visit a store, dealer or other location

Purchase the advertised product or service

Save the ad for future reference

Recommend the product or service

Took any action (net) Base: Actions taken based on respondents recalling specific ads Source: Affinity's VISTA Print Effectiveness Rating Service, 2008

www.magazine.org/handbook

Accountability: Magazines Get Results

Magazines Deliver More Ad Impressions Than TV or Web in Half-Hour Period New research from McPheters & Company shows that for each half-hour spent with the medium: â&#x20AC;˘ Magazine readers are exposed to twice as many ads as internet users and four times as many as primetime TV viewers â&#x20AC;˘ As a result, magazines effectively deliver more than twice the number of advertising impressions as TV and six times the number of ad impressions as the internet This study demonstrates that time spent with a medium is not a good predictor of advertising effectiveness.

www.magazine.org/handbook

Magazines Deliver More Ad Impressions than TV or the Internet in a Half-hour Period no. of ads exposed

no. of ads absorbed

Magazines (full-page, 4C)

65.1

24.4

TV (30-second primetime)

16.2

11.7

Internet (standard banner)

27.8

3.8

Source: McPheters & Company, 2009 for CondĂŠ Nast Publications & CBS-TV

Accountability: Magazines Get Results

Magazines Lead in Ad Influence Relative to Time Spent Magazines outperform other

Time-Ad Impact Ratio The ad influence of a medium relative to time spent with that medium

media when looking at the

magazines

“Time-Ad Impact Ratio.”

newspapers

A new analysis of time spent with media focuses on the influence of advertising in a medium relative to the more common metric of time spent. This analysis, dubbed the “Time-Ad Impact Ratio,” is made up of two components: • Share of time consumers spend with each medium in an average day, and • The percentage of U.S. consumers who said advertising in a medium has the most influence on their buying decisions

www.magazine.org/handbook

5.5 4.9 2.5

internet

2.3

television radio

1.1

Time-Ad Impact = Media Influence/Share of Total Time Spent Sources: MRI MediaDay, 2008. Deloitte “State of the Media Democracy” Study, 2008

By dividing a medium’s influence by the share of total time spent with that medium, a Time-Ad Impact Ratio can be calculated. Results show advertisers that magazines’ ratio is more than two time higher than that of TV or the internet and more than five times higher than that of radio.

Accountability: Magazines Get Results

Magazines Boost the Power of Other Media Dynamic Logicâ&#x20AC;&#x2122;s analysis revealed that magazines play a leading role in boosting overall advertising effectiveness. The combination of TV and magazines provided significantly more lift (versus TV alone) than did TV plus online. Cumulative Effects of Different Media Combinations Pre/Post Point Change (Index versus TV alone; TV alone = 100) Aided Brand Awareness 100

149

tv only

tv + online

175 tv + mags

224 tv tv tv tv

tv + mags + online

Advertising Awareness 100

145

only + online + magazines + magazines + online

218 230

Brand Favorability 100

Purchase Intent

100

155

122

352

252

274

Note: Results reflect the impact of different media combinations expressed as an index with TV as the base medium. Results are an aggregate of 32 studies. Source: Dynamic Logic/Millward Brown CrossMedia Research, 2007

www.magazine.org/handbook

407

Accountability: Magazines Get Results

Magazines Excel at Driving Results Through the Purchase Funnel, Especially at Key Lower Stages In an analysis of 32 client-commissioned studies, media research firm Dynamic Logic found that magazines, in a media mix that included online and TV, contributed: • 45% of overall effects, indexing 118 compared to TV and 265 compared to online • 62% of the total increase in brand favorability (7.3% of a total 11.8% shift) • 56% of the total increase in purchase intent (7.0% of a total 12.6% shift), nearly three times stronger than TV’s influence and seven times stronger than online’s influence Incremental Effect Across Purchase Funnel Overall

Incremental Effect of Medium on Brand Metrics: Overall Studies Average Percentage Point Increase Over Unexpected (Control) Baseline tv

aided brand awareness 5.7 17.0

3.7

7.6

online magazines

ad awareness 9.8

4.4

message association 3.9

magazines 45% television 38% online 17% Base: 32 Studies Source: Dynamic Logic/Millward Brown CrossMedia Research Studies, 2004 – 2007

www.magazine.org/handbook

1.7

3.4 9.0

brand favorability 2.9

1.6

7.3 11.8

purchase consideration 4.6 1.0

7.0 12.6

Base: 32 Studies Source: Dynamic Logic/Millward Brown CrossMedia Research Studies, 2004 – 2007

8.3 22.5

Accountability: Magazines Get Results

Magazines Improve Marketing and Advertising ROI For many of the accountability studies it conducted, Marketing Evolution made recommendations to marketers to reallocate their media mix. They advised that: • Share of spending for magazines should increase as much as 30 points in 11 of the 16 studies (69%) • Share of spending for online should increase as much as 10 points in 7 of the 16 studies (44%) • Share of spending for TV should increase as much as 10 points in 3 of the 16 studies (19%)

When marketers implemented

Recommendation for Reallocation of Media Spending Percentage of studies where spending should increase for medium

the recommended reallocation

magazine 69%

of media, their average return on investment (ROI) increased 23% at comparable budget levels.

online 44% tv 19% Source: Marketing Evolution, 2006

www.magazine.org/handbook

Accountability: Magazines Get Results

Magazines Most Consistently Produce a Low Cost per Impact Throughout the Purchase Funnel When analyzing ROI across 38 crossmedia accountability studies, Marketing Evolution found: • TV leads in cost efficiency for brand awareness with magazines a close second • Magazines generated a superior costper-impact for brand familiarity with TV and online performing at almost double magazines’ CPI • For purchase intent magazines yielded a far more efficient cost per impact than TV or online

Aggregate Trends Across the Purchase Funnel Cost Per Impact (CPI) television magazines

Brand Awareness $0.98

online

$1.08 $1.97 Brand Familiarity $2.61 $1.40 $2.58 Purchase Intent $1.77 $1.23 $2.61 Aggregate of 38 studies. Source: Marketing Evolution, 2008

Magazines outperformed TV and online when looking at the # 1 ranking as well as the combined ranking for # 1 and 2 across the individual categories studied— auto (page 48), electronics (page 52), entertainment (page 53), and pharmaceuticals (page 66).

www.magazine.org/handbook

Overall Media Performance Across Categories for CPI Based on number of times each medium ranked # 1, 2 or 3 throughout the purchase funnel media rank

Magazines

Online

Base: Automotive, Electronics, Entertainment and Pharmaceutical categories. Source: Marketing Evolution, 2008

Accountability: Magazines Get Results

Magazines Influence Purchase Behavior Across Categories When looking at a variety of product categories, BIGresearch found that magazines are one of the top four out of 17 possible media choices influencing the purchases of U.S. adult consumers. The categories include apparel, home improvement, car/truck, medicines and electronics. The finding holds for the 18-to-24 and 25-to-34 year-old segments even though such youth-centric media as text messaging, video on cell phones, instant messaging and online video game advertising were included among the 17 media studied.

www.magazine.org/handbook

Top Media That Influence Purchase by Age and Category total adults

age 18â&#x20AC;&#x201C;24

age 25 â&#x20AC;&#x201C; 34

Apparel/ Clothing

magazines newspaper broadcast tv email

25% 23 21 19

magazines email broadcast tv Internet

35% 25 25 23

Magazines broadcast tv Email Internet

29% 24 23 19

Home Improvement

broadcast tv magazines newspaper cable tv

20% 19 19 14

broadcast tv magazines cable tv newspaper

20% 17 16 14

broadcast tv magazines cable tv newspaper

20% 17 15 13

Car/Truck

broadcast tv newspaper magazines radio

20% 19 15 13

broadcast tv newspaper magazines cable tv

19% 19 17 17

broadcast tv newspaper magazines radio

21% 17 15 15

Medicines

broadcast tv magazines cable tv newspaper

14% 9 9 9

broadcast tv Cable TV magazines newspaper

14% 12 10 8

broadcast tv cable tv magazines newspaper

14% 10 9 7

Electronics

broadcast tv magazines newspaper internet

27% 23 22 22

broadcast tv internet radio magazines

32% 33 32 30

broadcast tv internet email magazines

29% 25 24 23

Source: BIGresearch, Simultaneous Media Usage Survey (SIMM13), December 2008

Accountability: Magazines Get Results

Magazine Readers Are Super Influential Consumers Across Categories Across 60 product categories, magazines and the internet most often rank #1 or #2 (out of six media) in delivering the highest concentration of Super Influential Consumers. â&#x20AC;&#x153;Super Influentialsâ&#x20AC;? are defined by MRI as the people who have great experience in this product area and whose advice on this category is trusted by friends and family members.

Number of times medium ranks #1 or #2 among Super Influential Consumers across 60 product categories Magazines

Internet

Outdoor

Newspapers

Radio

Television

Top Quintile of Usage for Each Medium Source: MRI, Fall 2008

The next 24 pages will delve deeper into individual product categories to show how magazines are both effective and efficient in driving ad results. Product category information is updated throughout the year and available at www.magazine.org/advertising.

www.magazine.org/handbook

Accountability: Magazines Get Results

Magazines Play a Major Role in Auto Purchase The Time Inc. /CNW Purchase Process Study shows that there is a handoff of information sources as automotive purchase intenders move from stage to stage. Magazine ads form an integral part of influencing the buyer’s auto consideration set by playing a key role in both the upper and middle funnel stages. Primary Source of Information — Top 5 of 25 Sources Upper Funnel

Middle Funnel

Lower Funnel

6 – 5 months prior to purchase

4 – 2 months prior to purchase

4 – 2 weeks prior to purchase

Television Ads

15.1%

Third Party Sites*

11.9%

Local Newspaper Ads

13.4%

Magazine Ads

10.3

Television Ads

11.4

Consumer Reports

10.3

Friends / Relatives

10.3

Magazine Ads

11.0

Friends / Relatives

10.1

Dealer Websites

8.6

Manufacturer Websites

8.1

Manufacturer Websites

9.7

Consumer Reports

7.3

Manufacturer Websites

Third Party Sites: i.e. Edmunds, Kelley, AOL Auto, etc. *Consumer Magazines, Local Newspapers and Consumer Reports include both print and digital versions. Source: Time Inc. / CNW Marketing Purchase Process Study, 2008

www.magazine.org/handbook

7.4

Accountability: Magazines Get Results

Magazines Are More Efficient Than Other Media at Critical Lower Stages of the Auto Purchase Funnel Across six studies encompassing domestic and imported cars and trucks, including new launches and repositioning of existing brands, analysis by Marketing Evolution showed: • Magazines had a superior cost per impact (CPI) for brand familiarity— two-thirds that of TV and nearly 40% less than online • Magazines also had the lowest CPI for purchase intent—three-quarters that of TV and about one-third the CPI of online To see how magazines produced the lowest cost per impact throughout the purchase funnel across 38 cross-media accountability studies, see page 44.

www.magazine.org/handbook

Cost Per Impact (CPI) by Medium TV = 100. Lower Index = Better Performance.

by index

television magazines online

Brand Familiarity $7.20

100

$2.45

$3.92

Purchase Intent 100

$7.60 $1.84

$2.65 Aggregate of 6 studies. Source: Marketing Evolution, 2008

Accountability: Magazines Get Results

Magazines Deliver ROI Across the Automotive Purchase Funnel Dynamic Logic examined the efficiency of each medium and combination of media for each stage of the purchase funnel for a Jeep product launch campaign. Their findings included: • Magazines in isolation or magazines plus online were the most efficient of the various media and media combinations • Except for unaided brand awareness, TV in isolation or in combination with other media was the least efficient medium for this campaign

Calculated Cost-per-Person (CPP) by Metric and Exposure Cell Lower Index = Greater Efficiency tv

mags

web

tv + mags

tv + web

mags + web

tv + mags + web

Unaided Brand Awareness

133

—

190

177

420

100

157

Aided Brand Awareness

236

100

131

314

282

133

207

Aided Ad Awareness

434

100

167

380

1666

147

212

Message Association

186

113

115

239

644

100

322

Brand Favorability

594

112

—

330

2496

100

317

—

1887

—

100

960

Purchase Consideration

Notes: Index of 100 represents the most efficient medium or media combination and all other costs were indexed against the most efficient cost. A dash means that the metric did not increase or the increase was under one percentage point. Source: Dynamic Logic, 2007

www.magazine.org/handbook

Accountability: Magazines Get Results

Magazines Contribute Significantly at Communicating the Benefits for Automotive Brands PointLogic’s independent automotive advertising research confirms that magazines contribute significantly at communicating both emotional and practical purchase stimulators at all stages of the auto purchase funnel. Emotional purchase stimulators include such factors as quality, level of trust,“fits my personality,” and appearance/style. Practical purchase stimulators include basic price, special offers and promotions, and equipment/features.

Purchase Stimulators for Automotive Brands Percent of consumers who indicated these information sources “perform well” for practical/emotional purchase indicators practical

33%

23%

Magazines

Newspaper

Radio

Loose Inserts or Flyers

Movie Theatre Advertising

Internet Advertising

Sponsorship Events

Outdoor

Public Transportation

Source: PointLogic M3 Automotive Survey, 2008

www.magazine.org/handbook

emotional

Television

Accountability: Magazines Get Results

Magazines Exert Sizable Influence on Auto Purchasers If you look at which media customers say influence them to purchase a car and then compare that to the allocation of advertising dollars, you will see auto makers are under-spending on magazines and the web, while over-allocating dollars to TV. Magazines command about 17% of the influence to purchase a car, but garner only about 12-13% of the ad budget. Above average users of magazines and the internet are more likely to be Super Influential Consumers for automotive purchases of friends and family, including cars, trucks/vans/SUVs, and aftermarket products.

4.25 x 1â&#x20AC;? perAdgroup box vs. Influence to Purchase Automotive Spending General Motors

Ford

by percent

Toyota

Magazine Spend

12 %

13 %

Magazine Influence

TV Spend

TV Influence

Internet Spend

Internet Influence

Source: BIGresearch, 2008 and analysis of AdAge Domestic Car Spending by Category, 2006

Super Influential Consumers for Auto Purchases Are Heavy Users of Magazines and the Web Automobiles 136 magazines 113 newspapers 110 radio 71 tv 163 internet Other Vehicles 133 102 129 88

For information on influencing the purchase of environmentally-friendly vehicles see page 58.

145 Automotive Products 131 106 79

122 146

www.magazine.org/handbook

Base: Top Quintile of Usage for Each Medium Source: MRI Fall 2008. Super Influentials defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members.

Accountability: Magazines Get Results

Electronics: Magazines 4.25Generate x 1â&#x20AC;? per group boxResults and Influence In eight cross-media accountability studies for electronics items ranging from cell phones to electric toothbrushes, Marketing Evolution found that magazines work with TV to improve results efficiently at all stages of the purchase funnel with their most magazines significant role at the bottom of the newspapers radio electronics purchase funnel. television internet

Heavy users of magazines and the internet are more likely to be Super Influential Consumers for electronics purchases from computers to mobile cell phones. Super Influential Consumers for Electronics Purchases Are Heavy Users of Magazines and the Web Home Electronics 155 magazines 112 newspapers 116 radio 64 tv 177 internet Computers

Electronics Cost Per Impact for Purchase Intent cpi /index

138 105 105

TV = 100. Lower Index = Better Performance.

59 191

Online

$ 3.80

494

Television

$ 0.77

100

Mobile Cell Phones 158 95 132

Magazines

$ 0.88

114

Source: Marketing Evolution, 2008

For more about how magazines produce the lowest CPI throughout the purchase funnel, see page 44. www.magazine.org/handbook

72 Base: Top Quintile of Usage for Each Medium Source: MRI Fall 2008. Super Influentials defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members.

179

4.25 x 1â&#x20AC;? per group box

Accountability: Magazines Get Results

Entertainment: Magazines Play a Leading Role in Producing Results Heavy users of magazines and the web are more likely to be Super Influential Consumers for the entertainment purchases of friends and family members.

Super Influential Consumers for Entertainment Purchases Are Heavy Users of Magazines and the Web Movies 150 magazines 96 newspapers 122 radio 87 tv

Magazines have a significantly lower cost per impact (CPI) for purchase intent of entertainment products (DVD releases, TV show promotions, and theatrical releases) than TV or online.

157 internet TV Shows 146 111 124 120 163 Music

143 98

Entertainment Cost Per Impact for Purchase Intent cpi /index

132 76 160

TV = 100. Lower Index = Better Performance. Online

$ 2.23

Other Entertainment

148

114

Television

$ 1.95

100

Magazines

$ 1.27

Aggregate of 20 studies. Source: Marketing Evolution, 2008

93 112 105 174 Video Games

147 80 128 68 172

Magazines produced the lowest CPI across the purchase funnel, see page 44. www.magazine.org/handbook

Accountability: Magazines Get Results

Consumers of Entertainment Products Choose Magazines Percent Using Each Medium Once a Week or More Often for Entertainment/Celebrity Information magazines internet

Among those who use each medium once a week or more for entertainment/celebrity information, more than half (55%) use magazines compared to 37% who use the internet.

55% 37%

Source: MediaVest Print/Digital Study, 2008

Magazines readers provide a key target for entertainment advertisers. Consumers of a variety of entertainment products tend to be above average magazine readers and below-average TV viewers. These consumers also tend to be heavy users of the Internet.

Top Media Quintiles for Entertainment Products magazines

by index radio

internet

Attended movies 2-3 times per month in last 90 days

129

126

Category influential consumers: movies

136

112

138

Prefer to see a new movie on opening weekend

131

100

130

Purchased 3+ video games in past 12 months

130

106

141

Likely to buy portable DVD player in next 12 months

121

114

108

Bought a home theatre/entertainment system in last 12 months

136

105

133

Bought 10+ pre-recorded CDâ&#x20AC;&#x2122;s /audio tapes in last 12 months

134

116

117

113

Base: U.S. Adults 18+ Source: MRI, Fall 2008

www.magazine.org/handbook

newspapers

4.25 x 1â&#x20AC;? per group box

Accountability: Magazines Get Results

Fashion/Beauty: Magazines Make Ad Results More Attractive Above average users of magazines and the web are more likely to be Super Influential Consumers for the fashion and beauty purchases of friends and family. Among those who use each medium once a week or more for fashion/beauty information, nearly half (47%) use magazines compared to 33% who use the internet.

Super Influential Consumers for Fashion/Beauty Purchases Are Heavy Users of Magazines and the Web Beauty 156 magazines 105 newspapers 125 radio 77 tv 182 internet Clothes 180 108 130 69

176

Shoes 167 113 123 72

Percent Using Each Medium Once a Week or More Often for Fashion/Beauty Information

Other Fashion 177 103

47%

magazines

177

114 187

internet

33%

Shopping 157

Source: MediaVest Print/Digital Study, 2008

103 108 82 165 Base: Top Quintile of Usage for Each Medium Source: MRI Fall 2008. Super Influentials defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members.

www.magazine.org/handbook

4.25 x 1â&#x20AC;? per group box

Accountability: Magazines Get Results

Financial: Magazines Pay Dividends on Media Investments Heavy users of print and the internet are more likely to be Super Influential Consumers for financial purchases, including investments, real estate and insurance. Heavy users of magazines are also more likely to be affluent investors. They index higher for having used any brokerage service in the past year and to have financial accounts with a total value of $250,000 or more. Affluent Investors Read Magazines â&#x20AC;&#x201D; in Past Year by index mags

web

121 Used any brokerage (full service, discount, other)

101

108

Value of total financial accounts $250,000+

102

100

116

Heavy media users. Base: Heads of House, HHI $100,000+ Source: Mendelsohn Affluent Survey, 2008

www.magazine.org/handbook

Super Influential Consumers for Financial Purchases Are Heavy Users of Magazines and the Web Finance/Investments 144 magazines 140 newspapers 118 radio 80 tv 195 internet Real Estate 139 140 108 95 181 Insurance 135 158 102 105 196 Base: Top Quintile of Usage for Each Medium Source: MRI Fall 2008. Super Influentials defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members.

4.25 x 1â&#x20AC;? per group box

Accountability: Magazines Get Results

Food: Magazines Spice Up Results Heavy users of magazines and the internet are more likely to be Super Influential Consumers for food purchases, including snacks, coffee, new food items, and grocery shopping.

Super Influential Consumers for Food Purchases Are Heavy Users of Magazines and the Web Grocery Shopping 144 magazines 113 newspapers 126 radio 90 tv 155 internet

Magazines are a leading source of food information according to a recent study from MediaVest. Among those who used each medium once a week or more for food information, more than one in three (35%) used magazines compared to 27% who used the internet.

New Food Items 140 102 116 96 136 Snacks 170 101

117

101 147 Soft Drinks 149 113

Percent Using Each Medium Once a Week or More Often for Food/Cooking Information magazines Internet Source: MediaVest Print/Digital Study, 2008

123 95 152 35%

Coffee 174

27% 65

118 118 164

www.magazine.org/handbook

4.25 x 1â&#x20AC;? per group box

Accountability: Magazines Get Results

Green: Magazines Target Environmentally Conscious Consumers Above average users of magazines and the web are most likely to be Super Influential Consumers for the purchase of green products by friends and family.

Environmentally-Friendly Consumers Use Magazines and Web Most Super influential consumer for environmentally-friendly products 111 radio

162 magazines 139 newspapers

69 tv

Likewise, in a segmentation based on environmental friendliness, heavy magazine readers and internet users index highest in the top two of six segments. Heavy TV viewers index highest in the least green segment. Segmentation by Environmental Friendliness by index mags

web

159

160

Green at Their Best

104

106

107

(least green)

Base: Top Quintile of Usage for Each Medium; six segments identified. Source: MRI Fall, 2008

www.magazine.org/handbook

My family/friends trust my advice on environmentally-friendly products 131 108 114 114 97 I participate in environmental groups/causes

Green Advocates

UnGreen

160 internet I have great experience in environmentally-friendly products 121 111 103 97 108

156 151 101 57 168 Agree completely: I buy vehicles that reflect my commitment to the environment 120 100 103 91 107 Base: Top Quintile of Usage for Each Medium Source: MRI Fall 2008. Super Influentials defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members.

Accountability: Magazines Get Results

Home Improvement: Magazines Motivate 4.25 x 1â&#x20AC;? per group box Consumers to Act Nearly half of all home improvers (45%) cited magazines as their primary source of motivation for beginning a new home improvement project. Magazine editorial (24%) and magazine advertising (21%) contributed almost equally.

Heavy users of magazines and the internet are more likely to be Super Influential Consumers for home improvement purchases, including home remodeling, household furnishings and interior decorating. Super Influential Consumers for Home Improvement Purchases Are Heavy Users of Magazines and the Web Home Remodeling

Consumers Who Source Home Improvement Ideas from Specific Media by percent

128 magazines 100 newspapers 121 radio

78 tv

136 internet

Magazine Editorial

24%

Magazine Ads

Home Show/Other Demos

Friend/Neighbor/Contractor

Household Furnishings 140 105 121 91 138 Interior Decorating 144

Retail Exposure

TV Program

TV Ads

Primary Sources of Home Improvement Projects. Source: Meredith Corporation & CNW Market Research, 2007

111 98 80 136 Gardening 127 115 108 89 141

www.magazine.org/handbook

Accountability: Magazines Get Results

Luxury Goods Buyers More Likely to Use Magazines and the Internet Heavy users of magazines and the internet are more likely to be Super Influential Consumers for luxury goods purchases, including fashion, beauty, and alcoholic beverages.

Super Influential Consumers for Luxury Goods Purchases Are Heavy Users of Magazines and the Web Fashion 174 magazines 109 newspapers 120 radio 68 tv 179 internet Beauty

Heavy users of magazines are also more likely to be affluent luxury goods buyers.

156 105 125 77 182 Alcoholic Beverages

Affluent Luxury Goods Buyers Spending in Past Year by index

153 121 119

spent /designer items

mags

web

$2,000+ Watches

167

107

153

$5,000+ Jewelry

162

117

128

$2,000+ Clothes

186

101

138

79 161 Interior Decorating 144

$1,000+ Day Spa

190

144

Any Cruise (14+ days)

156

119

Base: Top Quintile of Usage for Each Medium. Source: 2008 Mendelsohn Affluent Survey, Heads of House, HHI $100,000+

www.magazine.org/handbook

111 98 80 136 Base: Top Quintile of Usage for Each Medium Source: MRI Fall 2008. Super Influentials defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members.

Accountability: Magazines Get Results

Packaged Goods: Magazines Influence Consumers’ Purchasing Decisions In an analysis of cross-media accountability studies for the consumer packaged goods category, Dynamic Logic found magazines excelled at the critical bottom stages of the funnel: • Increasing brand favorability three times more than online and more than double that of TV • Boosting purchase intent/consideration the most, nearly double that of TV and three times that of online

Incremental effect of Medium on Brand Metrics: CPG Studies Percentage Average Percentage Point Increase Over Unexposed (Control) Baseline tv

Aided Brand Awareness 7.2

3.5

15.0

4.3

magazines

Ad Awareness 11.0

4.8

8.6

Message Association 6.3

1.8

3.8

11.9

Brand Favorability 2.6

2.0

7.1

11.7

Purchase Intent/Consideration 3.5

2.5

6.6

12.6

Base: 14 Studies Source: Dynamic Logic/Millward Brown CrossMedia Research, 2007

www.magazine.org/handbook

online

24.4

4.25 x 1â&#x20AC;? per group box

Accountability: Magazines Get Results

Packaged Goods: Magazines Boost ROI and Target the Right Shoppers Heavy users of magazines are more likely to be Super Influential Consumers for packaged goods purchases by friends and family members.

Super Influential Consumers for Packaged Goods Purchases Are Heavy Users of Magazines and the Web Cleaning Products 158 magazines 99 tv

Consequently, magazines provided superior ROI for two brands of a consumer packaged goods marketer. For Brand A, magazines performed three times more efficiently than TV; for Brand B, magazines provided a third better efficiency than TV.

119 newspapers 117 radio 137 internet

New Food Items 140 102 116

136 Snacks 170 101 117 101 147

ROI Effectiveness Score

magazines

Healthcare 156

119

Brand A 71

317 100

101 152

Products for Babies + Children 145

Brand B 131 100 Source: Marketing Management Analytics (MMA) presentation, 2006

www.magazine.org/handbook

103 103 97 124 Base: Top Quintile of Usage for Each Medium Source: MRI Fall 2008. Super Influentials defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members.

4.25 x 1” per group box

Accountability: Magazines Get Results

Pharmaceutical: Magazines Are a Prescription for Positive Results The MARS OTC/DTC study revealed that magazine readers are by far the most likely to take action on healthcare ads when compared to the users of any other medium. One example, magazine readers were twice as likely as the general public to discuss an ad with their doctor.

Actions Taken in Response to Healthcare Advertising Index of Heavy Media Users Compared to the General Public Discussed an ad with your doctor 201 magazines 112 newspapers 139 radio 104 tv 121 internet Called toll-free number to get information 202 148 164

In addition to the data presented on the chart, magazine readers were: • Two and a half times more likely to return a sample card • Nearly twice as likely to discuss an ad with a friend or relative compared to the general public

144 147 Switched to a different brand 186 145 143 117 110 Visited any website 154 105 133 122 185 Asked your doctor for a product sample of prescription drug 185 131 129 107 113 Source: MARS OTC/DTC Study, 2008

www.magazine.org/handbook

Accountability: Magazines Get Results

Pharmaceutical: Magazines Are a Top Healthcare Resource for Consumers Magazines — including both editorial content and advertising — are the leading sources of healthcare information for consumers.

Magazine Ads/Articles Are Top Resources for Healthcare Information Doctors

69%

According to MARS OTC/DTC Study: • Three of the top 15 most valued sources for healthcare information are magazine-related consumer media • Magazine articles surpass the editorial content of other consumer media as a leading source (except for brochures/ pamphlets in-office) • Magazine and television ads rank highest as top advertising resources (except for ads in doctors’ offices)

Pharmacists

Friends / Spouse / Other Relatives

Nurses / Physician Assistants

Ads / Brochures / Pamphlets / Wallboards in Doctors’ Offices

Medical Journals

Magazines in Doctors’ Offices

Magazine Articles

Product Packaging / Labels

Newspaper Articles

Internet- Other Health Websites

TV Programs or Reports

Magazine Ads

TV Ads

Internet- General Websites

very much/ somewhat

Source: MARS OTC/DTC Study, 2008

www.magazine.org/handbook

Accountability: Magazines Get Results

Pharmaceutical: Magazines Lead in Driving Purchase Intent Marketing Evolution found that magazines drove consumers’ pharmaceutical purchase consideration—based on intent to talk to a doctor/physician—more than TV or online. Pharmaceutical Purchase Intent Defined as intention to talk to doctor/physician Magazines

Affinity/VISTA surveyed consumers on their recall and response to pharmaceutical direct-to-consumer (DTC) ads seen in magazines and on television. The study found that: • Recall scores for magazine DTC ad campaigns skewed much higher than those for TV • Magazines indexed more than half again higher than TV for actions taken in response to DTC advertising, based on those who recalled the ad

pre-control

post-control point difference

Magazines Lead in Recall and Actions Taken for DTC

3 ad recall

recall index

action/recall percentage

action/recall index

Magazine Ads

50%

139

17%

155

TV Commercials

36%

100

11%

100

Television 2% 4% 2

Source: Affinity’s VISTA Print Effectiveness Rating Service, 2007

Online 6% 6% 0 Base: Aggregate of 2 studies. Source: Marketing Evolution, 2006

www.magazine.org/handbook

Accountability: Magazines Get Results

Pharmaceutical: Magazines Provide Healthy Ad Results and Are a Key Health Resource Marketing Evolution found that magazines’ average cost per impact for purchase intent —phrased as an intention to talk to a doctor/physician —was almost half that of TV.

Pharmaceutical Cost Per Impact

To see how magazines produced the lowest cost per impact throughout the purchase funnel across 38 cross-media accountability studies, see page 44.

online not significant

Magazines are a leading source of healthcare information according to a recent study from MediaVest. Among those who used each medium once a week or more for health and wellness information, 37% used magazines compared to 33% who used the internet.

Percent Using Each Medium Once a Week or More Often for Health & Wellness Information

www.magazine.org/handbook

index

Intent to talk to doctor/physician $19.05 100

television

$10.67 56

magazines

TV=100. Lower Index = Better Performance. Aggregate of 2 studies. Source: Marketing Evolution, 2008

magazines internet

37% 33%

Source: MediaVest Print/Digital Study, 2008

4.25 x 1â&#x20AC;? per group box

Accountability: Magazines Get Results

Retail: Magazine Ads Improve ROI and Influence Purchases Above average users of magazines and the internet are most likely to be Super Influential Consumers for retail purchases of friends and family.

Super Influential Consumers for Retail Purchases Are Heavy Users of Magazines and the Web Beauty 156 magazines 105 newspapers 125 radi 77 tv

Magazines were the most efficient medium for this retail brandâ&#x20AC;&#x2122;s core campaign objective: intent to purchase apparel. On a cost-per-impact basis,TV was three times more expensive and online was a third more expensive than magazines.

182 internet Clothes 180 108 130 69 176 Shopping 157 103 108 82

Retail Cost Per Impact for Purchase Intent* cpi/index

155 112 116

TV = 100. Lower Index = Better Performance. Television

$ 21.98

165

Home Electronics

64 177

100 Household Furnishings

Online Magazines

$ 8.54 $ 6.28

140

39 29

105

121

91 138

*Based on intent to purchase apparel. Aggregate of 8 studies. Source: Marketing Evolution, 2005

www.magazine.org/handbook

Accountability: Magazines Get Results

Technology: Magazines Target Key Purchase Influencers 4.25 x 1” per group box Two independent sources show that above average magazine readers are key influencers for technology products. IntelliQuest reports that heavy users of magazines are more likely to be decision makers for the purchase of their company’s technology products— even more so than heavy users of the internet. Heavy users of magazines and the web are also more likely to be Super Influential Consumers for technology purchases, including computers, mobile phones and new technology products and services. Decision Makers for Purchase of Company’s Technology Products

Super Influential Consumers for Technology Purchases Are Heavy Users of Magazines and the Web

% heavy users

New Technology

mags

web

34.9

12.9

30.1

Desktop + Notebook PC 33.6

15.4

25.6

149 magazines

Computer Servers

Handheld Devices Networking/Telecom

31.0 29.9

18.5 21.2

23.0

109 newspapers 112 radio 69 tv 206 internet Computers 138 105 105

27.4

59 191

Source: IntelliQuest Business Study, Spring, 2008

Mobile Phones 158 95 132 72 179 Base: Top Quintile of Usage for Each Medium Source: MRI Fall 2008. Super Influentials defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family members.

www.magazine.org/handbook

4.25 x 1â&#x20AC;? per group box

Accountability: Magazines Get Results

Travel: Magazines Are a Destination for Travel Aficionados Heavy users of print and the internet are more likely to be vacationers of all types: domestic, foreign and cruise. Magazine readers are also more likely to be affluent travelers, heads of house with household incomes of $100,000 or more who have traveled to Europe in the past three years or to Hawaii or Florida in the past year.

Magazines and Web Excel at Influencing Travel Purchases Agree completely/somewhat: Others ask my advice about vacation travel 115 magazines 105 newspapers 101 radio 92 tv 108 internet Very/somewhat likely in next 12 months: vacation within the U.S. 110 110 100 82 118 Very/somewhat likely in next 12 months: vacation abroad

Affluent Travelers Use Magazines Most index travel activity

mags

88 87

121 tv

web

Europe /past 3 years

140

113

Hawaii /past year

128

118

Florida /past year

120

100

106

Base: Top Quintile of Usage for Each Medium. Source: Mendelsohn Affluent Survey, Heads of House, HHI $100,000+

www.magazine.org/handbook

113 112

Very/somewhat likely in next 12 months: take a cruise (more than one day) 118 109 101 91 118 Base: Top Quintile of Usage for Each Medium Source: MRI Fall 2008

Magazines Role in Building Web Metrics

Magazines Excel in Driving Web Search Across Various Demographics Magazines perform best overall at influencing consumers to start a search for merchandise online —ahead of online media and word-of-mouth, according to the latest data from BIGresearch. What’s more, magazines rank among the top three media by gender as well as all age groups.

Media that Trigger an Online Search by Age and Gender medium (percent)

overall

18 – 24

25 – 34

35 – 44

45 – 54

55+

Magazines

42%

41%

43%

38%

39%

44%

45%

TV/Broadcast

Newspapers

Face-to-Face

TV/Cable

Radio

Direct Mail

E-mail Advertising

Internet Advertising

Outdoor Billboard

Online Communities

Blogs

Other

Source: BIGresearch Simultaneous Media Usage Study (SIMM13), December 2008

www.magazine.org/handbook

Magazines Role in Building Web Metrics

Magazine Ads Build Web Traffic Overall and Across the Purchase Funnel An analysis by Marketing Evolution showed more than a 40% lift in web traffic occurred after consumers were exposed to magazine advertisements compared to a control group of respondents who were not exposed to magazine ads.

Magazines contributed to building web traffic at each stage of the purchase funnel, especially excelling at influencing purchase intent, often considered the most important stage. These results parallel those seen in overall purchase funnel analysis. Percent of Group to Visit Brand Website at Each Stage of the Purchase Funnel Aware of product or brand 11%

Percent of Group to Visit Brand Website pre-control post-control

pre-control post-control point difference

13% 2

7% 10%

Intend to get more information 21%

point difference 3 Aggregated base sizes Control n = 21,410 Exposed n = 22,619 Source: Marketing Evolution, 2004â&#x20AC;&#x201C;2007

For insights on how including a URL in magazine ads can further boost web traffic, see page 82.

25% 4

Intend to purchase 30% 39% 9 Analysis completed at the individual respondent level. Control n = 4,260 Exposed n = 4,492 Source: Marketing Evolution, 2004 â&#x20AC;&#x201C; 2007

www.magazine.org/handbook

Magazines Role in Building Web Metrics

Magazine Ads and Magazine Websites Prompt Action Taking Online and Off The Online Publishers Association (OPA) found magazine websites were more likely than other media websites to prompt viewers to take some kind of action as a result of watching an online video ad. JupiterResearch showed magazine and newspaper ads are the most influential media at generating qualified traffic (consumers who made a purchase after conducting an online search). Offline Sources that Drive Qualified Traffic to Websites made purchase after conducting an online search

30%

Television Ad

Radio Ad

Billboard/Indoor/Sports Venue Sign

www.magazine.org/handbook

medium

by percent

checked out company websites

searched for info

clicked on banner ad

talked to friends or family

went/store to check product

Magazine Sites

Online Only News/Info Sites

Natl. Newspaper Sites

Natl. Broadcast TV Sites

Cable TV Sites

Portals

User-generated Sites

Source: Online Publishers Association, June 2007

percent

Magazine/Newspaper Ad

Source: JupiterResearch, 2007

Actions Taken from Viewing Online Video Ads

Magazines Role in Building Buzz

Magazines Influence Word of Mouth Magazines excel in reaching consumers who impact the attitudes and behaviors of people within their sphere of influence: • Based on an analysis of word-ofmouth influencers, heavy magazine readers are far more likely to influence family and friends across a range of product categories • Magazines are most likely to complement the web in reaching social networkers who build buzz

Word-of-Mouth Influencers for Family/Friends by Media Use Product category influenced — index vs. total adults Automotive 128 magazines 100 newspapers 103 radio 108 tv 96 internet Personal Finance 125 107 112 101 108 Food 112 102 99 98 104

Social Networkers by Media Use Used Facebook/MySpace in Past 30 Days – index

Magazines

149

Newspaper

Technology 120 101 101 103 119

Radio Television Internet Base: Top quintile of usage for each medium Source: MRI Fall 2008

www.magazine.org/handbook

113

Travel

105 97

181

93 103 Base: Top Quintile of Usage for Each Medium Source: MRI Omnibus Recontact Study, 2008

118

Magazine Reach

Magazines Accumulate Reach Faster Than Commonly Believedâ&#x20AC;&#x201D;and When Consumers Choose Magazine reach begins accumulating audience before the actual on-sale date. The average monthly accumulates approximately 60% of its audience within the first month. The average weekly magazine accumulates 80% of its audience within the first two weeks.

Magazine Audience Accumulation Over Time

Because consumers control their media experience with magazines, magazines provide â&#x20AC;&#x153;on-demandâ&#x20AC;? audience accumulation. Note: The on-sale date is the actual date the magazine will appear on the newsstand or is likely to arrive in subscriber households. For weeklies it is generally one week earlier than the cover date of the magazine. For monthlies, the on sale date is generally weeks ahead of the cover date. on-sale date

Source: MRI, Fall 2008

www.magazine.org/handbook

Magazine Reach

Top 25 Magazines Outperform Top 25 Prime-Time TV Programs in Reaching Adults and Teens

Magazines provide superior reach to TV programs for major g Points of Topcompared 25 Magazines Time TV Programs target audiences, including adults 140

114

18– 49, women 18– 49, African Americans prime-time 234 +94 18– 49 and teens 12– 17, when Carat’s tv programs magazines the top cross-media research compared 260 +160 25 prime-time TV programs and top 25 magazines. 236 +122

Gross Rating Points of Top 25 Magazines and Prime-Time TV Programs adults 18+ 140

prime-time tv programs

234

magazines

adults 18 – 34 100 260 adults 18 – 49 114 236 men 18 – 49

Note:258 Total GRPs equal the rating of each +156 of the top 25 vehicles of each medium added234 together. +156

$75K+

109

102 258 men 18 – 49 HHI $75K+ 109 234

138

women 18 – 49

318 +180

138 318

HI $75K+ 153

353 +200

women 18 – 49 HHI $75K+ 153

18 – 49 118

353 402 +284

african americans 18 – 49 118 402

186 +114 teens 12 – 17

t; Nielsen September 2007 – May 2008 (Prime regularly scheduled); welveplus 2008

www.magazine.org/handbook

72 186 Sources: Carat Insight; Nielsen September 2007 – May 2008 (Prime regularly scheduled programs); MRI Fall 2008; MRI Twelveplus 2008

Reader Characteristics

Magazine Readers Are Innovators Consumer Innovators are the consumers who are most open and most active in trying new products across a range of categories. According to MRI, above-average readers of magazines along with above-average users of the Internet are more likely than average consumers to be innovators overall and in all six product categories studiedâ&#x20AC;&#x201D;the only two media with this distinction. Early Adopters and Media Use product category

heavy media users (index =100) magazines

newspapers

radio

internet

Leisure

127

104

181

Food

117

101

104

113

Electronics

152

113

106

187

Financial

107

138

151

Home Appliance

112

134

Personal Care/ Health

122

105

101

105

Super Innovators (3+ segments)

140

112

102

184

Base: U.S. Adults, 18+ Source: MRI, Fall 2008

www.magazine.org/handbook

Reader Characteristics

Magazines Appeal to Younger Adults An analysis of MRI data demonstrates that: •

Adults under 35 years old read more issues per month than adults who are over 35

•

As a consequence, younger adults are more likely to be in the top quintile of magazine readership—the most avid or “heaviest” readers overall

Readership by Age MRI Issues Read/Past Month (median) Index “Heavy” Magazine Readers – Top Quintile Index Base: U.S. Adults 18+ Source: MRI, Fall 2008

www.magazine.org/handbook

Total

18 – 24

25 – 34

35 – 44

45 – 54

55 – 64

65 +

5.7

7.5

7.1

6.2

6.0

4.8

3.4

100

132

125

109

105

20.0

25.2

25.6

20.8

21.5

15.6

11.0

100

126

128

104

108

Reader Characteristics

Magazines Appeal to Diverse Readers The MPA Market Profiles offer an in-depth look at the African-American/ Black, Asian American, Hispanic/Latino and Teen markets. Each group is an important, growing segment of the U.S. population that uniquely redefines the culture of the United States in areas such as food, apparel and music. Not surprisingly, each group displays specific magazine readership patterns. For more on Market Profiles, visit www.magazine.org/marketprofiles. Source: MRI, Fall 2008; ABC; National Directory of Magazines; Oxbridge Communications, 2009; MRI Teenmark, 2008; Carat Insight, 2008

• More than eight out of ten African-American/Black adults (84%) are magazine readers. They read an average of 13.6 issues per month, compared to 9.7 issues per month for all U.S. adults. • More than two out of three African-American/Black adults (69%) who read magazines are between the ages of 18 to 49, compared to only 62% of the U.S. adult population. • There were on average over 100 titles targeting Asian-Americans in the five-year period from 2004 to 2008. • Asian-American magazine readers are younger, more affluent, and better educated than magazine readers overall. • More than 75% of adult Hispanic/Latinos read magazines. They read an average of 10.0 issues per month, slightly higher than the U.S. average. • From 2004 to 2008, the total paid and verified circulation for ABC-measured Hispanic/Latinos magazine titles grew by 22.6%. • Three-quarters of teens, 75%, read magazines. • A cross-media comparison conducted by Carat Insight found that the top 25 magazines lead the top 25 primetime TV shows in reaching teens age 12 to 17.

www.magazine.org/handbook

Reader Characteristics

The Portability of Magazines Allows Consumers to Read Them at Home or Away Magazine Reading by Location In Own Home

81%

Out of Home

Doctor / Dentist Office

Someone Elseâ&#x20AC;&#x2122;s Home

Newsstand / Store

Work

Beauty / Barber Shop

Library / Club / School

Somewhere Else

Airplane

Business / Reception Room

During Other Travel

Traveling To / From Work

Note: Percentages add up to more than 100% due to multiple responses. Source: MRI, Fall 2008

www.magazine.org/handbook

gather more information

Increasing Creative Effectiveness visit advertiser’s website

Magazines Show a Direct Link Between Ad Engagement and Ad Effectiveness

4.5 x 2 - box size

visit store/dealer/other

save ad for future reference

recommend product/service

Research from Affinity, using a battery of purchase considerationthat drove engagement in 26 key attributes a Study from Northwestern University*, purchase product/service confirmed that greater reader engagement is directly linked to increased advertising 0 4 6 recall and 2actions taken. agree with engagement statements Overall, compared to less engaged readers: disagree with engagement statements • Engaged recalled ads Top/bottom 2 box readers scores among total respondents Source: Affinity, 2006 22% more often • Engaged readers were 35% more likely to take action in response to magazine ads

Individual Actions Taken in Response to Magazine Advertising more favorable opinion gather more information 8 visit advertiser’s 10 website

visit store/dealer/other save ad for future reference recommend product/service

Overall Ad Recall and Actions Taken in Response to Magazine Ads

purchase consideration

ad recall

purchase product/service 56% 46%

actions taken

31% 23%

agree with engagement statements disagree with engagement statements

agree with engagement statements disagree with engagement statements Top/bottom 2 box scores among total respondents Source: Affinity, 2006

www.magazine.org/handbook

Top/bottom 2 box scores among total respondents Source: Affinity, 2006

*Findings from Northwestern University’s Magazine Reader Experience Study are available at www.magazine.org/research. Overall Ad Recall and Actions Taken

Engagement Findings Can Be Used to Predict Creative Impact

ct b = increase in impact

ereal

Increasing Creative Effectiveness

100

by index

Results tested in the lab and marketplace confirm that engagement 137 +37% attributes can be utilized to help 129 +29% understand and even predict the 142 +42% effectiveness of magazine advertising creative. Six brands — two from each of three different categories — were +61% used for testing in 161 the lab, while two brands — Bayer Aspirin and Lincoln — 129 +29% participated in marketplace tests.

product a = 100

product b = increase in impact

Beauty–Night Cream average recall

100 137 average actions taken

100 129 engagement rating

100 142

Packaged Foods–Cereal average recall

100

148 +48%

These results were utilized to develop a “Creative Diagnostic Tool,” available at 145 +45% www.magazine.org/accountability.

by index

161 average actions taken

100 129 engagement rating

100 148

141 +41% 131 +31%

Travel–Cruise Line average recall

100 145 average actions taken

100 141 engagement rating

100 131 www.magazine.org/handbook

Source: Affinity, 2006

Increasing Creative Effectiveness

Including a URL in Magazine Ads Increases Web Visits When a URL was included in the magazine advertising creative, the percent change in visits tripled from two to six points in Marketing Evolution’s research.

Affinity found that magazine ads with URLs are more likely to drive readers to advertiser websites across a range of magazine genres. Ads With URLs Compared to Ads Without URLs Drive Readers to Advertiser Websites by index ads WITHOUT web address

Percent of Group to Visit Brand Website

203

home 122

financial

NO URL included

pre-control post-control point difference

5% 7%

ads WITH web address

fashion

152 138

men’s

286

travel URL included women’s service

13% 19% 6 Analysis completed at the study level. 4 studies include URL and 5 studies do not include URL. Aggregated base sizes Control n = 21,410 Exposed n = 22,619 Source: Marketing Evolution, 2004 – 2007

www.magazine.org/handbook

163

women’s service

198 100

Action Index: Visit Advertiser’s Website Base: Actions taken based on respondents recalling specific ads Source: Affinity’s VISTA Print Effectiveness Rating Service, 2007

d ad occurences: 35

58% Increasing Creative Effectiveness

Magazines Show Immunity to Ad Wearout 61%

61%

59%

d ad occurences: 22 VISTA research, using examples from two

recent magazine ad campaigns where the same creative approach was employed 43% over an extended period of time, found 43% that the ads did not exhibit any 51% declines in effectiveness. measurable

Magazine Ad Recall and Actions Stay Strong Across Time Ambien CR Time Period: 4 quarters. Measured ad occurences: 35 average recall

Q1 Q2

alling Specific Ads ating Service, 2008

plan to ask doctor about the product

12% 58% 13% 61% 14%

61% 15%

59%

Johnsonâ&#x20AC;&#x2122;s Baby Oil Time Period: 3 quarters. Measured ad occurences: 22 average recall

Q1 Q2 Q3

plan to purchase the product 20% 43% 21% 43% 20% 51%

Base: Actions Taken Based on Readers Recalling Specific Ads Source: Affinityâ&#x20AC;&#x2122;s VISTA Print Effectiveness Rating Service, 2008

www.magazine.org/handbook

Case Histories: The 28th Annual Kelly Award Winners for Outstanding Advertising

Grand Prize Winner Goodby, Silverstein & Partners for the National Basketball Association

GRAND PRIZE

Goodby, Silverstein & Partners, NBA campaign,“There Can Only Be One,“ increased ratings by 61%

The MPA Kelly Awards recognize the best magazine advertising as defined by advertising that demonstrates creative excellence and produces positive marketplace results. All the Kelly Award winners and finalists campaigns are available for viewing in an interactive, virtual gallery at www.kellyawardsgallery.org. Case studies from nearly 250 previous years’ finalists are available at www.magazine.org/casestudies.

Case Histories: The 28th Annual Kelly Award Winners for Outstanding Advertising

Gold Award Goodby, Silverstein & Partners for Häagen-Dazs

G O L D AWA R D

Goodby, Silverstein & Partners for “Honey Bees” effort for Häagen-Dazs grew revenue by 7%

Best campaign-by-size winners included: F U L L PA G E

Ogilvy’s “IER” ads for Perrier lifted sales by 11% — beating a 15-year record SPREAD

Carmichael Lynch’s “Dark Custom” campaign for Harley Davidson led to a 24% jump in sales among young adults INSERT/OUTSERT

GSD&M Idea City’s “No” Booklet ad for BMW inspired 67,360 new vehicle sales — exceeding their goal by +6% www.magazine.org/handbook

Case Histories: The 28th Annual Kelly Award Winners for Outstanding Advertising

Silver Award Energy BBDO for Canadian Club

S I LV E R A W A R D

Energy BBDO’s Canadian Club campaign, “Damn Right Your Dad Drank It,” outpaced the category leader — producing results that led to a 4% sales bump in the first three months of the campaign

Winning campaign categories included: I N T E G R AT E D

McCann Erickson New York’s “Priceless Search” effort for MasterCard Worldwide increased brand awareness among their key target by 7% PUBLIC SERVICE

TBWA’s ads for The Ad Council’s US Olympic Committee “Don’t Be An Asterisk” campaign led to a 1,200% soar in web traffic from launch E F F E C T I V E N E S S AWA R D

brought to you by MRI Starch

BBDO New York’s “Laminate Flooring Campaign” for Armstrong generated a + 64% spike in brand awareness

RESOURCES

INDUSTRY PERIODICALS AND WEBSITE RESOURCES Advertising Age www.adage.com A leading authority on advertising, marketing and media news. Adweek www.adweek.com Featuring creative, client/agency relationships and advertising strategies. Audience Development www.audiencedevelopment.com Covers consumer marketing, retail and direct mail for magazines. Capell’s Circulation Report Newsletter of magazine circulation. Circ Matters Newsletter devoted to magazine circulation analysis. The Circulator A weekly e-newsletter from Circulation Management. Creativity Devoted to the most important element of advertising - the work. DM News www.dmnews.com The weekly "Newspaper of Record" for the direct marketing industry. Folio www.foliomag.com Strategies and tactics for magazine management.

Mediaweek www.mediaweek.com Targeting media specialists. Newsstand Resource www.NRMag.com Magazine for the newsstand industry. The New Single Copy www.nscopy.com News and trends about the retail environment.

Audit Bureau of Circulations (ABC) www.accessabc.com Audit organization for consumer periodicals. Business of Performing Audits Worldwide (BPAW) www.bpaww.com Auditing services for trade/business and consumer publications.

PrintCritic www.printcritic.com A resource covering innovative ads.

Columbia Journalism Review www.cjr.org Information about journalism and public policy including “Who Owns What,” a database of media owners.

Romenesko’s MediaNews www.poynter.org/ News from the Poynter Institute, a school for journalists.

Experian Simmons www.smrb.com Syndicated and custom research for publishers and advertising agencies.

RESEARCH/REFERENCE

Gebbie Press www.gebbieinc.com A media directory listing, for TV, radio, newspapers and magazines.

Affinity Research www.affinityresearch.net a marketing and media research company specializing in advertising effectiveness and media engagement. American Journalism Review www.ajr.org A joint venture of American Journalism Review and NewsLink Associates. Its website posts magazine and journalism listings. A.M.I.C. The Advertising Media Internet Center www.amic.com A collection of links to media-related resources, message boards, and research tools.

Hall’s Reports www.hallsreports.com Measurement of magazine editorial categories with ad/edit ratios. Ipsos Mendelsohn www.ipsosmediact.com/ A provider of affluent syndicated and custom research. Mediafinder www.mediafinder.com A comprehensive listing of magazines, newspapers, catalogs and newsletters.

Media Info Center www.mediainfocenter.org Northwestern University's Media Management Center website providing media management news.

D I R E C TO R I E S

Mediamark Research & Intelligence (MRI) www.mediamark.com Provider of research data and services for the advertising industry.

Benn’s Media Directory www.wbime.com/bennsmedia.htm Phone: 44-20-7549-8666

Mr. Magazine: Samir Husni www.mrmagazine.com Samir Husni is the Professor of Journalism at the University of Mississippi.The website tracks new launches of magazines monthly. Publishers Information Bureau (PIB) www.magazine.org/pib Tracks the amount and type of advertising in consumer magazines. PubList.com www.publist.com Contains over 150,000 print and electronic publications. Standard Rate & Data Service (SRDS) www.srds.com Publisher of media rates and data for magazines and other media. TNS Media Intelligence www.tns-mi.com A provider of strategic advertising intelligence.

Bacon’s Directories www.cision.com Phone: (312)-922-2400

Encyclopedia of Associations Thomson Gale www.gale.cengage.com Phone: 800-354-9706 Gale Directory of Publications and Broadcast Media www.gale.cengage.com Phone: 800-354-9706 LexisNexis Advertising Red Books www.redbooks.com Phone: 800-340-3244 National Directory of Magazines www.mediafinder.com Phone: 800-955-0231 Samir Husni’s Guide to New Consumer Magazines www.mrmagazine.com Phone: 662-915-1414 Standard Rate & Data Service (SRDS) www.srds.com Phone: 800-851-SRDS Ulrich’s International Periodical Directory www.Ulrichspub.com Phone: 866-737-4257

M PA R E S O U R C E S

ACCOUNTABILITY AND EFFECTIVENESS Case Studies Nearly 250 examples show how advertisers have successfully used magazines: www.magazine.org/casestudies. NEW! Category Fact Sheets downloadable one-sheets show how magazines drive results across 17 categories. Accountability Studies from Affinity Research, Dynamic Logic, Hudson River Group and more analyze media mix dynamics and provide compelling proof that magazines positively impact sales. PowerPoint slides highlighting magazines’ key role in driving consumer action are available online at www.magazine.org/accountability. Measuring Media Effectiveness Across the Purchase Funnel, research from Marketing Evolution, demonstrates magazines’ significant contribution across the purchase funnel. Creative Diagnostic Tool makes magazine creative accountable based on feedback from advertisers.The tool can provide insights quickly and detail the learning on media engagement. Quantifying Influentials’ Relationship with Magazines reveals that Influentials—the 21 million Americans who influence the decisions of the rest of the population—rank magazines as their key source of news and information and find magazine advertising valuable. NEW! Magazine Myths Versus Reality Third party research is used in these 3 toplines to debunk common misperceptions about media’s strengths in driving consumer action, media efficiency and magazines’ role at retail.

NEW! Time-Ad Impact Ratio links time spent with media to ad impact, using third party sources helps marketers evaluate time spent in a way that aligns with their desire for better results. Accountability II: How Media Drive Results and Impact Online Success A compilation of accountability research, based on multiple independent studies, the strengths of magazines and their role with other media. Accountability: A Guide to Measuring ROI and ROO Across Media examines accountability research across media.

C R E AT I V E Kelly Awards Gallery Guide, video and interactive online gallery (kellyawardsgallery.org) showcase the best magazine ads and the marketplace results they achieved. The Power of Print: Starch Ad Database and Tools is a presentation that surveys the usefulness of Starch Ad Readership studies and discusses the “Ten Principles for Effective Print Advertising.”

African-American/Black, Asian-American, Hispanic/Latino and Teen Market Profiles consolidate research on these targets.

E N G AG E M E N T Engagement: Understanding Consumers’ Relationships with Media a media-neutral approach that shows how consumers connect with advertising-supported media: television, newspapers, radio, the Internet and magazines. Understanding Magazine Circulation: A Guide for Advertising Buyers and Sellers offers insights on key strategic concepts in circulation to help facilitate communication between advertisers and publishers. Magazine Reader Experience Study examines what consumers experience when they read a magazine and how those experiences drive readership and advertising impact. The research, conducted by the Media Management Center at Northwestern University, offers significant insights for advertisers, consumer marketers, publishers and editors.

ENVIRONMENT READERS AND READERSHIP The Value of Magazine Readership: Reader Dynamics and Ad Impact on Readers of Pass-Along Copies shows that readers value pass-along copies and take action at a similar rate as readers overall. The Value of Magazine Readership: Reader Dynamics and Ad Impact Among Paid and Nonpaid Readers demonstrates that how much a consumer pays for a magazine or how the magazine was acquired does not affect the level of magazine engagement or likelihood to act on the advertising.

MPA Environment Handbook An in depth educational guide on environmental policies and procedures of interest to our magazines and companies. The handbook includes the many facets of magazine manufacturing — from harvesting trees, to the printing, distribution, and final disposition by our readers. Forest Certification An authoritative review and analysis of forest and forest product certification schemes in North America to help publishers understand paper purchasing considerations.

GENERAL 2008-2007 Handbook of Consumer Marketing Practices contains important information on effective circulation practices, the value of readership, subscription marketing regulations as well as overviews of the retail picture for magazines. Media Research Index puts more than 1,000 research studies from 1950 to 2003 at your fingertips. The index is available online at www.magazine.org/mediaresearchindex and free of charge to MPA members and advertisers. Listings are searchable by media type, study type, author, title or keyword. Also available in two-volume printed version.

M AG A Z I N E I N D U S T RY CO N F E R E N C E S A N D E V E N T S • Independent Magazine Group (IMAG) Conference • Lifetime Achievement Awards • Magazines 24/7— Digital Conference • Magazine Innovation Summit • MPA Kelly Awards for Outstanding Magazine Advertising (online only) • National Magazine Awards • Professional Development • Retail Conference: The Marketing of Magazines and Books

www.magazine.org/events

For all these resources and more, visit www.magazine.org or contact promotion@magazine.org.

Stay updated on how magazines can work for you Visit www.magazine.org

The MPA website offers information on a wide array of topics

central to consumer magazines, including advertising, circulation, editorial, government action, digital initiatives, finance and operations and industry events. You can download an electronic copy of the Handbook and access dozens of other resources with up-to-the-minute research and a myriad of facts and figures about the magazine industry.

Contact MPAâ&#x20AC;&#x2122;s Information Center

For MPA members, advertisers and their agencies

the MPA Information Center offers personalized research services. The staff can provide data on historical trends, industry statistics, news and much more. For more information, you can e-mail requests to infocenter@magazine.org or make an appointment to visit the Center in New York. Staff is available 9 a.m. to 5 p.m. Eastern time, Monday through Friday.

The Please Recycle initiative is an industry-wide public education campaign. For more information and to download the logo, visit www.magazine.org/environment.