Media Research Blog

Media Research Blog

Do advertisers know well-targeted print ads can increase ROI 240%?

20 January 2013 · By Erik Grimm

Promising early research findings show that newspaper advertising campaigns can deliver good ROI on short notice and boost brand awareness for future sales.

Many news media are focused on new business models, profitability, and shareholders’ value. But in this quest for innovation and continuity, we might overlook one of the major assets of the news media: it’s advertisers’ value.

In tough economic times, with a critical look at diminishing advertising budgets, news media can still deliver excellent return on investment (ROI), even resulting in direct uplift at the counter.

In 2013 we expect to deliver some hard evidence of this belief.

Like everywhere in Europe, the Dutch news media, especially newspapers, are experiencing tough competition from other media channels. Most A-brand advertisers choose a multi-media approach, with TV and online as a base.

On top of that, newspapers, magazines, radio, or outdoor can play a secondary role. But they have to compete, even for a supporting role. 

The low gross rating point (GRP) prices of television in the Netherlands make this pitch extra difficult — particularly for retailers who need weekly impulse shopping traffic and still rely on regular newspaper advertising.

The advertiser’s focus on media ROI and direct sales also offers chances.

A dedicated panel of GfK Panel Services is a validated source for this type of metric. This panel consists of a few thousand consumers whose media and consumer behaviour are continuously tracked.

A German analysis in 2011 of more than 100 multi-media campaigns delivered some promising results. If we look at sales ROI of media campaigns, newspapers belong to the most remunerative media channels.

These positive insights encouraged the Dutch news media promoter Cebuco to initiate some ROI studies for their specific market. The organisation signed up for seven studies; the individual news media will account for three extra cases.

When transformed to showcases, these studies can be used as incentives for other A-brands. And an aggregated study of the individual cases — planned for mid 2013 — will be able to bring out some general lessons for a better advertising ROI. 

Of course, a secondary goal is to gain a fair share in the TV-dominated Dutch advertising market.

Halfway through this project, the first lessons are already emerging. And for news media, they appear to be very promising.

The provisionary conclusion is that TV is over-used. Because of the cheap tariffs and effectiveness promise, media campaigns are regularly depending on 1,000 GRPs or more.

On the other hand, print advertisement is limited to one shot or a few inserts. GfK found that the law of diminishing returns is clearly visible; the last flights of the TV commercials don’t contribute much to the ROI. 

On the other hand, the print ads are still on the progressive side of the curve; by adding more newspaper adds, the ROI will grow. By optimising the media strategy for the ratio of print to TV, the ROI can improve to 25%.

Although we’ll have to wait for the aggregated study to deliver the hard evidence, some results are worth mentioning in this “appetizer article”:

  • If well-targeted and well-created, the newspaper ad ROI can run up to 240% (even accounted with gross spending).

  • Of course, news sites can be effective, as well; beware that media campaigns should be well-targeted to perform above average.

  • TV loses effectiveness after too many encounters. Newspapers, meanwhile, can deliver growing ROI when inserted three or four times per campaign.

So news media can deliver an eminent ROI on short notice. But that is not the only achievement. Don’t forget the campaign contributes also to a stronger reputation and that is a basis for future sales.

In the course of this year, Cebuco expects to publish some eye-opening results and some long-term lessons for an effective (news media) campaign. Undoubtedly these findings will get to you through the familiar INMA channels.

In the meantime, be confident of the sales power your media have for your local advertisers.

print article send to friend


blog comments powered by Disqus
About this blog

The mission of the Media Research Blog is to highlight research done by newsmedia companies as an activity that should guide strategic and tactical decisions. At INMA we believe research is more vital than ever in understanding the complex calculus of audiences, advertising, and media platforms. To put it bluntly, we hope to inspire media researchers worldwide with this blog put together by the INMA Europe Research Committee.



Blog team

Gloria Arlini
Assistant Manager, Insights & Intelligence Unit,
Singapore Press Holdings, Singapore

Herve Barbot
Director of Research and Development, Ouest-France, France

Irene Fogarty
Research Executive, The Irish Times, Ireland

Wolfgang Granigg
Business Development, Styria Medien Group, Austria

Erik Grimm
Research Director, Cebuco, The Netherlands

Ilse Peeters
Research Manager, De Persgroep, Belgium

Bart de Proost
Manager Business Intelligence Center, De Persgroep, Belgium

Bernhard Sonntag
Head of Research & Project Manager, MINDS International, Vienna, Austria

Pia Stork
Research Manager, Ekstra Bladet, Denmark

Blog roll

FIPP
inPublishing
IPA
Mediaonderzoek.nl
OPA
research.
Researchblog
Sands Media Services
Scarborough Research
WARC


Blog archives

October 2014 ( 1 )
August 2014 ( 1 )
July 2014 ( 1 )
June 2014 ( 2 )
April 2014 ( 2 )
February 2014 ( 2 )
January 2014 ( 1 )
December 2013 ( 1 )
November 2013 ( 1 )
September 2013 ( 1 )
July 2013 ( 1 )
June 2013 ( 1 )
May 2013 ( 1 )
April 2013 ( 1 )
March 2013 ( 3 )
February 2013 ( 1 )
January 2013 ( 2 )
November 2012 ( 1 )
December 2011 ( 2 )
October 2011 ( 1 )



Join INMA Today
 
Upcoming Events
Mar
09
INMA Mobile Summit for Engagement and Profit
Austin, United States
09-10 March 2015
Mar
26
Big Data for Media Conference
London, United Kingdom
26-27 March 2015
Apr
08
INMA Augmenting Print with Digital Workshop
New Delhi, India
08 April 2015
Apr
24
INMA Ideas Day on Advertising
Paris, France
24 April 2015
May
10
INMA World Congress
New York, United States
10-12 May 2015
May
22
INMA Ideas Day on Marketing
Brussels, Belgium
22 May 2015
Jun
12

More Events

Member Profiles

  • Jorge Andres Springmuhl
    Guatemala


  • Kenneth Dowdell
    USA


  • Fergus Sampson
    South Africa



  • Bengt Ottosson
    Sweden


  • Elsa Falk
    Sweden


  • Carlos Bravo Aguilar
    Spain



©2014 INMA | Home | About | Contact | RSS | Privacy