Xerox Belgium sent out invitations today to announce the launch of their Lab 1:1 on March 17. Lab 1:1, which already exist in Canada and the USA, assists brand owners in developing innovative and personalised multi-media solutions. With the help of a team of Direct Marketing experts from the Belgian Post results will be analysed.
Digital natives are changing many habits. One of these habits involves our fingers, the thumb is taking over the role from the index finger as it is used a lot for texting and playing. They are also showing all of us that multi-tasking is perfectly possible given information is presented in bite-size formats and in digital format. The downside of the multi-tasking was shown in a recent study by a British professor. He concluded that multi-taskers who continuously switch between responding emails, phone calls, text messages and chat sessions, have a 10 point lower IQ score (which is the equivalent of missing a night sleep). The compulsion to answer emails immediately was found with 60% of the workers. The stress of multi-tasking is putting a strain on the effectiveness of workers which is why certain companies are installing quiet time, time to think and read offline.
This week marks the Magazine Week in the UK featuring a "buy one, get one half price" promotion, a poll on Britain's favourite cover and various promotional activities in retail stores. The theme of the PPA is "Indulge your passion.. try another magazine today". For the advertisers and media agency there are plenty of facts that support the strong position of magazines: consumers spend ₤ 2 billion on magazines each year, more of the internet generation read consumer magazines than any other age group, average reading time of a magazine is 50 min. and a magazine is picked up 5.4 times before it is finished with. I'm wondering whether the consumer and b2b sides of this campaign are compelling and unique enough to be convincing.
In the US the Magazine Publishers of America (MPA) also launched a B2B campaign titled "Under the influence of magazines". This campaign consists of magazine ads, online ads and a website and is directed at the marketers and advertising agency industry. Key message is the sales impact magazines have. A separate website covers the research that supports this claim. The US magazine market also shows a decline in the number of ads placed. Over the first half of 2008 the decline was 7.4%. The initiative comes just a couple of days prior the the annual magazine conference titled Unleash the Power.
Claiming results to sell media space is also the message of online advertising and was the message of TV advertising. Despite the convincing facts it remains uncertain whether magazines will become HOT again among planners and advertisers thanks to this $ 1 million campaign.
This week I went to the Euro Effie awards in Brussels. At a ceremony that was not as well organised as other years, Audi was again awarded with the Sappi Print Media Efficiency Award. The company introduced the highly successful R8 model with an integrated campaign consisting of approximately 45% print media. Audi used magazines, newspapers, outdoor posters, direct mail and POS material in conjunction with a dedicated website and television. The campaign made the R8 the most desirable sportscar in Europe and almost closed the gap in new car registrations with the longstanding No.1 sportscar Porsche. With these results the campaign also won a Bronze Euro Effie. Grey EMEA was for the fourth time in a row awarded Agency of the Year. This year thanks to Effies for P&G, GlaxoSmithKline and Coca Cola. Carolyne Carter and her men were exhilarated.
I sat in a presentation some weeks ago about the effectiveness of newspapers. InBev, BrandScience and Nielsen presented their findings on the ROI of newspaper advertising. All of them used econometric models to demonstrate the value of newspapers (otherwise they would not have been invited to do their presentation). The presentation pointed out some stimulating data. BrandScience used a database of 200 cases including newspaper campaigns, the average Revenue Return on Investment ranked as follows: inserts topped the list followed by newspapers, magazines, radio, online, direct mail, outdoor, television sponsorship and television.
A case study on the support for the Jupiler Blue brand showed also the superior ROI of the combination of newspaper and outdoor advertising. The result mentioned a poor 8,8 % - 9,8% contribution of advertising to total sales of the brand.
In driving back to the office I thought about two things: one, where does the creativity of the ads gets into the equation? What is the role of the Cannes Advertising Festival and all other creativity awards, when everything can be modelled without taking into account creativity. In a world of product parity, creativity and design can call for premium prices and consumer interest. And two, when advertising contributes less than 10% to total sales, is that because we do not spent enough time, money and energy on creativity and design? The jury of the Effie Awards will be able to judge whether we have used the right mix of econometric modelling and creativity. If not we probably should be more humble about our role as communication specialists.
At the recent ON DEMAND conference the US Direct Marketing Association (DMA), mentioned five key themes that will emerge in the next years. Some of these themes have been around, other will certainly gain interest.
1. It's a multi-channel world, no real news though, we all know that the age of commercials -broadcast on one TV station and reach 80% of the audience- are over.
2. It's a data-driven world, also no real news, but possibilities keep on increasing.
3. It's a personalised world that requires relevance and timing, these are interesting concepts that gain interest. For example personalised URL's (pURL) allow advertisers to become personal with their offer online as a response to a hard copy mailing.
4. It's a world of accountability, this is becoming center-stage as marketing ROI needs to be delivered. Plenty of companies are delivering solutions that integrate the creative, delivery, production, procurement, asset management and evaluation part of online and off-line media mailings and brochures. And these will help to boost the integration of online and off-line media.
5. It's good to be green, with the combination of digital print and multi-channel communication. I'm not yet convinced that the digital printing process is greener compared to traditional printing. However waste management for example is becoming an issue for high volume printing and digital printing might therefore be a solution.
When magazines are added to a mix of online and television advertising purchase intention increases with 7% (vs TV and online 5.6%), brand favourability increases with 7.3% compared to 4.5% with TV and online. On other brand metrics as aided brand awareness and advertising awareness the effect of adding magazines is important but less impressive.
Recent research of 32 cross-media campaigns across ten categories by Dynamic Logic (a Millward Brown research company) provides strong evidence for the use of a mix of different media. And the important role magazines play in the effectiveness of advertising investments. Magazine effectiveness represent for example 62 % of the combined effect on brand favourability. The research also shows the limited value of online advertising on the five metrics. The incremental effect of the online investment tops at 22% of the combined effect.
This is the second analysis made by Dynamic Logic, I have reported on earlier research (17 cross-media campaigns) in the Sappi publication Life with Print. Comparing both pieces of research the striking decline of effectiveness of online media becomes apparent. Online advertising' share topped at 38% on the brand favourability metric.
It seems that this new research -based upon more cases- includes the effects of diminished newness and therefore attention of online media.
At the Euro Effie Awards the special Sappi Print Media Efficiency Award went to the launch campaign for the Audi Q7. The campaign won also a Gold Effie Award.
The Sappi Award goes to Effie winning campaigns that spent a dominant part of their media mix on print media. The Audi campaign integrates print, TV internet and CRM activities with a 40% budget allocated to print. The campaign demonstrates the increased importance of well planned and structured integration of media. Print and TV to create awareness and traffic to the website and highly personalised direct mail to follow-up visitors of the website. This approach resulted in a 10,2% higher sales result than originally planned. When checking the media strategy from the other Effie Gold winners (Adidas and Nike) the point about integration was confirmed. Both campaigns make use of a broad spectrum of media albeit with a lower percentage allocated to print media. But Nike for example achieved over 800 press articles by a very intense PR campaign. When I talked with Marco Eikelenboom, Sappi's European Marketing and Sales Director, he concluded that these results confirm the efficiency of print media.
