1、Magazine Advertising in a Recession A summary of commercial behaviour in an economic downturn and brand and media recommendations for 2009Why do advertisers cut back? Because its easy and its quickLower than expected sales lead to lower profitability Reduced capacity means less volume to tradeCompet

2、itors reduce spend so Share of Voice is maintained with lessDirect costs of unit production increase Marketing spend is unspent, uncommitted and vulnerableMarket Dynamics at q1 2008 House prices and share portfolios continue decade of increases Easy credit and joint incomes have created a marketplac

3、e of discretional spending - dining out, premium food ranges, fashion upgrades, multiple short breaks, technology, telephonyRelatively inexpensive household essentials have been and over supplied. Multiple ownership of brown and white goods, cars, and holidays Market Conditions at q1 2009 Discretion

4、al spending cut backRenewal of essentials delayed Employment decreasing Value of assets reduced We believe cutting back marketing spend is not the answer 79% believe marketing is no longer dispensable. It is key part of the business planMarketing is seen as more of a solution to help than a budget l

5、ine to cutStrategy first: We set our advertising strategy to take advantage of opportunities in the downturn, then try to come up with a budget to achieve the strategy Budget first: We reduce our budget, then come up with a strategy to do the most we can with that budgetDont know 61% 27%12%Advertisi

6、ng on the Edge. Economist Intelligence Unit SurveyThe importance of not cutting backBecause there are proven negative impacts on brand position and profitability if marketing expenditure is reduced during a downturn Barwise,IPA,PIMS,Data2Decisions Its a short-term fix Brands that cut back emerge fro

7、m the downturn weaker and less profitableLong term profitability means maintaining Share of Voice above Share of MarketThe importance of not going darkTwo key brand relationship metrics Usage and Image suffer when brands “go dark” for six months or more (See chart opposite) There is also a danger th

8、at by falling silent a brands buzz score will decline, with the brand more likely to be judged on-the-way-down60% of brands which go dark decline on at least one key brand metric increase 11 22 decrease (24) (28) The importance of bondingThere is a strong link between market share and brand-to-consu

9、mer bonding, an aggregate of brand-consumer metricsLess investment in marketing communications leads to lower bonding and lower market share Millward BrownThe importance of maintaining share of voiceBrands which cut their budget, relative to their competitors, have a higher chance of losing market s

10、hareIPA DataMineWhen share of voice minus share of market is negative, a much higher percentage of brands lose market shareBecause share of voice drives growth Analysis of 880 case studies shows a correlation between share of voice and share of market gain or lossAs a rule of thumb, for every 10% po

11、ints that share of voice exceeds share of market a brand can expect to gain one point of market share, per annumIPA DataMineEvidence of brand value to advertisers Cokes market Cap including brand value120 billion Cokes market Cap not including brand value50 billion The Brand Gap The old dynamic Bran

12、d Ret ailer Consumer Re-ignite consumer satisfaction with the brand Challenge consumer perceptions and behaviour toward the brandUse insight to identify and promote the simple, but forgotten, pleasures associated with your brandFocus on the personal connection through message and placement Brand str

13、ategies for 2009 Re-examine the role of advertising for your brand Promote reasons for consumers to enter the market, before conveying your own brand attributes and benefits. Champion the category and be frontrunner in recovery Brand strategies for 2009 Reframe brand valueConvince consumers that a c

14、hange of brand behaviour is not a compromise on quality Find your brands compelling central truth and convey it. But consumers will shy away from brands which over claimBecause value to consumers is not based on price alone NOT price related65% Price related35% otheron strength of brand59%compromise

15、 of brand/priceon price alone6%10%Brand important84%Millward Brown, Brandz UK 2007 Bought goods Select media which enhance the communication themes of your brand and select an attentive and effective medium which delivers a breadth of proven ROI deliverables in sufficient size to provide the scale a

16、nd economies for big brand media planning Communications Planning in 2009Does this support the brand? Communications Planning in 2009This doesCommunications Planning in 2009“Boosting search is key to our brands success”Magazines lead in getting consumers searching Which mediums influence you to star

17、t an online search?MPACommunications Planning in 2009% made purchase after conducting online search Offline sources which drive qualified traffic to websites“I need more consumers to buy from my website”Magazines excel at producing the traffic which converts to sales MPACommunications Planning in 20

18、09Influentials use magazines and web the most Number of times medium ranked #1 among influentials across 60 categories “I want to reach positive communicators”Magazines and web are key in getting to opinion formers MPACommunications Planning in 2009“I have to improve opinions about my brand” Magazin

19、es have a superior record in boosting brand favourabilityBrand FavourabilityDifference in exposed versus non-exposed consumersMPACommunications Planning in 2009Driving purchase intent is critical for our success in 2009 Magazines rank #1 in lifting purchase intent Media Impact on Purchase IntentDifference in exposed versus non-exposed con