The implication is that magazines should be allocated a higher share of the advertising budget than they usually receive. While there are limits to how far print’s share can be increased, there are no limits to how far publishers’ digital platforms can accommodate additional ad investment.
An informative illustration of this is the AT&T case study published by the Mobile Marketing Association in the USA. AT&T ran a real life advertising campaign for its new Moto X smartphones. The main objective was to establish high awareness of the new product. 93 per cent of the budget was spent on TV, five per cent on desktop online, one per cent on mobile, and one per cent on print magazines.
In parallel, the target audience’s media exposure and their awareness of the Moto X smartphone was measured, using research firm Marketing Evolution’s single-source consumer panel SMoX (Smart Mobile Cross Marketing effectiveness research). The SMoX analysis is able to calculate the contribution of each medium to the observed campaign effects, and to model an optimum budget split between the media.
Marketing Evolution found that the return on investment (awareness generated per advertising dollar spent) of mobile was twice that of TV, and print magazines’ return on investment was four times that of TV.
The SMoX model was used to calculate an optimal allocation of the budget, in the light of these cost-efficiency results. The modelling takes account of diminishing returns to the use of an individual medium, which in this case applied heavily to the television expenditure.
The result was that the optimised allocation placed 72 per cent of the budget in TV (instead of the actual 92 per cent), five per cent to desktop internet (the same as the actual), 16 per cent to mobile (instead of one per cent), and eight per cent to print magazines (instead of one per cent).
That’s a great result for magazines, but I asked why were magazines not given more than mobile, since magazines’ cost-efficiency was twice that of mobile?
There are two reasons. One is the availability of inventory. For a campaign running for a limited time period there are only so many issues of each magazine which are published during that period. Additional titles might be added but there comes a point where the marginal titles are not very cost-efficient against the target audience. The second consideration is that print magazines may have a limitation on the reach they can achieve among the target audience, in some cases.
Thus there are real caps on the extent to which expenditure in print magazines might be increased.
What this underlines is the importance of publishers’ own digital offerings. While print could only have carried eight per cent of the budget in this AT&T case, magazine media publishers would go after some of the budget allocated to mobile, pitching for a share of the optimised 16 per cent rather than a share of the actual one per cent.
Magazine media publishers now have two strings to their bow. As budget-modelling improves it will demonstrate ever more clearly the effectiveness of publishers’ own mobile and other internet properties.
Publishers’ mobile offerings as star performers
While the AT&T study did not specifically identify magazine publishers’ mobile offerings as stars among mobile, there is plenty of evidence about it from elsewhere. One readily accessible source is my report for FIPP Proof of Performance: Making the case for magazine media (second edition), downloadable from www.fipp.com/POP.
New examples will be presented at FIPP’s Insight Forum in Amsterdam, The Netherlands, on May 18-19. A whole session will be devoted to papers on the power of publishers’ digital platforms: mobile and desktop websites; in-app tablet ads; native advertising; and the benefits of print and digital combined. For more information visit www.fippinsightforum.com.
More like this
In November 2018, we co-hosted an Insider event with FIPP in Argentina and Chile about the role and value of digital editions. Given the Latin American venue, I decided to use a local coming-of-age tradition - a quinceañero - the 15th birthday milestone when a girl transitions from a child into a young woman in the community.11th Apr 2019 Opinion
The acceptance of the need to turn data into valuable information has reached a tipping point and will accelerate in the next three years, writes Thomas Howie, COO of events software platform Evessio.11th Feb 2019 Opinion
Rumours of the death of print media have been greatly exaggerated. While online publications have been experiencing tremendous growth in recent years, the fact is that 58 per cent of subscribers still describe themselves as primarily print-oriented, and 60-80 per cent of publisher revenues are still generated from print. It’s true that the majority of print-first subscribers are older, but that doesn’t mean younger audiences won’t pay for print. They will, and they do.16th Jan 2019 Opinion
At UPM Communication Papers we have a long history of demonstrating responsibility for the environment. But few people know that our sustainability agenda extends to also include a commitment to taking care of people and society throughout the value chain whilst simultaneously creating value for our customers through delivering products with high sustainability credentials.26th Nov 2018 Opinion
For publishers, AI-driven tools have largely been used for editorial purposes, to write articles on themes like sports scores, weather forecasts and real estate sales. For example, Reuters uses an AI-based tool called NewsTracer to sift through millions of tweets in real time, to flag potential news stories, for its journalists. UK-based Reach does something similar, using an AI-based tool called Krzana to monitor 60,000 online sources to alert journalists to breaking news, and Forbes has tested an AI-based tool to draft stories for contributors. Publishers have also leveraged artificial intelligence to power content recommendations, to edit homepages, and for translation.10th Jun 2019 Features
For over 50 years, Rolling Stone has been iconic in its coverage of music and popular culture, political journalism and commentary. From the Beatles' Magical Mystery tour to Shawn Mendes, Rolling Stone has covered the greatest rockstars, the hottest celebrities, the biggest political stories. Called a 'counterculture bible' by The New York Times, the magazine has launched careers, defined what was cool, inspired a rock song, been embroiled in controversy, and over the last two years, found a new home with Penske Media Corporation.17th Jun 2019 Features
Despite popular belief, subscriptions and paywalls will not be the silver bullet most digital publishers have been waiting for. Instead, publishers should be exploring innovation in digital advertising formats, said Jessica Rovello, co-founder and CEO, Arkadium, USA, at this year's Digital Innovators' Summit in Berlin. She proposed four new formats as a good place to start.17th Jun 2019 Features
Martha Stone Williams, CEO of World Newsmedia Network, discusses how the media industry must adapt to embrace innovation, how data and measurement must be the cornerstone of strategy and direction, and successful media firms implement a culture of experimentation.10th Jun 2019 Features
Condé Nast International today announced the launch of Vogue Business Talent, a curated recruitment platform for professionals seeking opportunities with the world’s leading fashion brands. The new platform, launching with selected opportunities in London, New York, Paris, Milan and Hong Kong forms part of Vogue Business, the online B2B publication launched in January 2019.12th Jun 2019 Industry News
Visit our Youtube channelFIND OUT MORE
FIPP newsletters allow you to keep up with industry trends, research, training and events across the worldFIND OUT MORE
What’s happening now, what’s coming next