Advertising in newspapers increases over all media campaign ROI three times

27 Oct 2016

Newspaper advertising increases a media campaign’s effectiveness and leads to a greater return on investment (ROI) for brands, according to recent research conducted by effectiveness consultancy, Benchmarketing, commissioned by Newsworks (UK) as detailed on warc. The new study, which covers 500 econometric models, shows that advertising in newspapers increases overall ROI three times. According to Newsworks, adding digital newsbrands to the mix boosts newspaper ROI by up to five times.

Presented at Newswork’s first Effectiveness Summit, the new ROI study provides hard evidence of the impact news brands have on advertising campaigns. The results show that newspapers increase overall campaign effectiveness as well as boost the ROI of other media when used in the media mix. Television’s effectiveness doubles, while online display becomes four times as effective and radio 10 times more effective. The study also measured the increase in effectiveness of adding newspapers to a campaign for different sectors, it was almost six times more effective for finance; about three times for retail and travel; almost twice for automotive; and 1.2 times for FMCG.

Rufus Olins, CEO of Newsworks, is quoted on warc , “It is clear that newspaper brands boost other media as well as performing a powerful role in their own right. Running a campaign without newspapers is like trying to bake a cake without baking powder.”

Benchmarketing’s ROI study presentation which can be downloaded from the Newsworks website represents an unprecedented insight into how advertising works for newsbrands. It is a bespoke analysis of Omnicom’s econometrics data vault which uses 500 statistical models and identifies immediate and longer term impact on revenue and ROI, using models across categories for the last five years combined with UK industry adspend (Standard Media Index and Nielsen). It focuses on the impact of newsbrands in a multimedia and increasing digital mix, in terms of incremental sales and ROI.

Over the last five years in the UK adspend on newspapers including print and digital has been decreasing, some of what has been lost to print has gone to digital, but overall there is still a decrease. Yet the data from this study shows that as the percentage of print newspaper advertising increases in the media plan mix, so does the effectiveness and ROI of the entire campaign. The results show that it is always best to have print newsbrands in the media mix.

Newsworks use all this data to work out how much a particular brand should spend on newspapers, they say that they know the ranges that deliver the optimum spend across difference categories, what the sweet spot is and how that differs by budget level.

Sally Dickerson, managing director of Benchmarketing, presenting the data at the Newsworks Effectiveness Summit in London, highlighted how some categories are significantly underspending on print. Finance brands should be allocating about 21% of their adspend to newspapers for maximum campaign effect, but in reality in the UK in 2015 the figure was closer to 8%. A similar trend was noticed for supermarkets which should be spending 27% of their budget on newspaper advertising and they were only allocating a little over half that amount. The sweet spot for the average spender in the automotive category is 11% on newspaper advertising, yet the actual spend sat at about 8%. Her conclusion was that the pendulum has swung too far for the decreased adspend on newbrands and advertisers are missing out by not allocating larger portions of their budgets to newspapers. Dickerson says, “It’s always better to spend in newspapers.”

This data is most relevant for the UK, however, Ads24 have media strategy consultants who can work out the optimum percentage of adspend that should be allocated to newspapers in the channel split for any given brand and budget; within a multi-platform journey. Agencies can ask Ads24 to find the sweet spot for client brands and for customised presentations that recommend not only the optimal percentage of adspend for newspapers, but lay out a tailored media plan.

Ads24 offer customised, granular presentations for specific clients to media agencies and non-agency clients. These will look at all the relevant ‘numbers’ with analysis of what will result in the best ROI and what is likely to lead to conversion. They will recommend which one or combination of Ads24’s Bundle offerings is most suited, considering the client’s place in the market. They will determine whether the client is aiming to entrench loyalty, launch a new product or enter a new market. A step-change requires repeated exposure and a different strategy to brand reinforcement. These presentations can include cost per point (CPP) comparisons as well as cost per 000s (CPT) for comparison across programmatic buying realm.

Ads24’s News Overall Bundle, which incorporates all their newspaper titles including their digital properties, resulted in a Total Cumulative Impact of 46.3 million. This figure includes all of Ads24’s audience communities or bundle options: Sunday Titles, Mass Market Titles, Afrikaans Titles and Local Titles. The Ads24 News Overall bundle has an Effective Reach Opportunity (with reach at +1) of 24.4 million and a Duplicated Reach (with reach at 3+) of 9.8 million.

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About Ads24

Ads24 reaches six in ten South Africans, including print and digital readers. Ads24 touches the lives of over a half of all South Africans adults. While it is important to identify the size and segment the audience, looking at how Ads24 engages with its readers, is equally as important.

Ads24 is part of the Media24 Group representing 97 newspaper titles. From Dailies to Sunday papers to locals, Ads24 reaches almost every target segment in South Africa, no small achievement in such a diverse country. The most exciting element is how these titles become part of the community that Ads24 serves.

A news reader is an engaged reader. Ads24 news brands play an important and unique role in the daily lives of their readers. Ads24 sees beyond the numbers, beyond the market segments, to connect with the people on a personal level. Ads24 has the stats, the numbers, but also the insights.

Issued on behalf of Ads24 by Stone Soup Public Relations
For further information, please contact Daya Coetzee
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