AdValue research reveals magazines deliver ROI of £1.40 (€1.75)

New research into the effectiveness of magazines, launched on 15 November by IPC Media, has found that every £1 (€1.25) invested in magazine advertising generates an average ROI of £1.40 (€1.75).

The AdValue research study set out to understand the impact that magazine advertising has on driving sales. By analysing sales and media data using two different techniques – a panel-based and an econometrics based approach – AdValue was able to shed light on one of the industry’s most important matters.

IPC partnered with Nielsen to deliver independently verified ROI figures. Using their Homescan panel alongside AdDynamix data Nielsen were able to analyse the advertising campaigns of six FMCG brands – Lenor, Comfort, Flash Febreze, Hellmann’s, Colgate and Dove – and isolate the effect of the magazine advertising on household spend. Advertising spend data was then used to calculate the ROI.

The key findings of the research were:

  • Advertising in magazines led to an average increase of 8% in household spend
  • Every £1 invested in magazines generated an average ROI of £1.40

Simon Nudds, director of UK media analytics, Nielsen said: “AdValue demonstrates the ability of magazine advertising to increase sales and deliver measurable results.”

In addition to the Nielsen analysis, IPC Insight partnered with Mindshare on an econometric modelling project. This demonstrated that magazines deliver a higher ROI than TV and can be used to improve the efficiency of a campaign without increasing the total budget.

Amanda Wigginton, director, IPC Insight concluded: “We’re delighted to be able to provide the industry with new, independently verified data on how magazines are driving sales. AdValue provides compelling evidence that magazines are effective in delivering ROI and directly impact the bottom line. Econometric modelling has also been able to show that magazines are often being under-utilised too!”

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