An econometric modelling study by Nielsen, a global performance management company, found investment in magazine advertising is both cost effective and delivers a solid return on investment (ROI).
Using data across the past three years, the study looked to determine whether replacing average readership data with real-time weekly data available from MAPP (Magazine Audience Performance Predictor) would impact on the ROI magazines delivered.
By adjusting this variable for magazines and bringing it in line with the standard reporting periods of competing marketing channels, the results uncovered a dramatic shift in the ROI for the three brands that were studied, with key findings including:
- Magazine’s ROI moved from the lowest at 0.34 to the highest at 0.91- up 168 per cent
- Magazine’s contribution to sales more than doubled from 10 per cent to 23 per cent
- When magazines and TV were layered together, TV’s ROI improved by 18 per cent, Online Video and Digital Display improved by 13 per cent.
The study was done on three leading FMCG brands from hair care, healthcare and cleaning categories.
Head of client solutions at Nielsen, Andrew Palmer said, “The case study results bring home the importance of clean, comprehensive input data, in order to get the most accurate output from the modelling to make the right business decisions. It was not surprising that when we use data that better reflects how magazines are read by consumers, that we see a corresponding lift in the ROI.”
Mary Ann Azer, MPA director said, “We are very pleased with the results, it was a risk to do this study as we didn’t know what the outcome would be, but it has confirmed our belief that reach is not the critical measure of success; what’s critical is the business results like sales contribution and ROI, which magazines clearly continue to deliver.”