Myth Busters: Ad impact, 2009

busting popular media myths

Ad impact:what you don’t knowcould hurt your bottom line

Updated Fall 2009

100

Base: Magazine Readers, U.S. Adults 18+ Source: MRI, Spring Studies 2005 and 2009

Magazine Readers (’000) Adults 18–34 2005 58,945

2009 60,017 102

100

102

Median Issues/Month, Adults 18–34 2005 8.4

2009 8.6

100

260

72

186

Sources: Carat Insight; Nielsen September 2007 – May 2008 (Prime regularly scheduled programs);MRI Fall 2008; MRI Twelveplus 2008

Gross Rating Points of Top 25 Magazines and Prime-Time TV Programsadults 18 – 34

teens 12 – 17

prime-time tv programs

magazines

5-Year Trend in Media Usage 2005 – 2009Total users in thousands ( % increase )

135,282

163,376

180,620

189,315

211,757

221,551

202,873

210,958

180,839

184,358

167,192

163,918

214,774

224,899

Source: MRI Spring studies 2005 and 2009

20052009

Internet

Magazines

Outdoor

Television

Radio

Newspapers

Total Adults

MYTH > NO ONE READS magazines,especially younger consumers.

REALITY > Magazine usage has grown over the past five years at ahigher rate than usage of all other media except the web

REALITY > Readership continues to be strong for adults 18-34

REALITY > Top 25 magazines outperform the top 25 primetimeTV programs in all major demos, including adults18-34 and teens

Aided Brand Awareness

Message Association

Brand Favorability

Purchase Consideration/Intent

Ad Awareness

}

3.6

4.6 4.7

% > 28 36 36 34 33 33 39 27 34 23 17 60 30 13 56

+12.9

}+23.0

}+10.8

}+10.9 }+11.9

7.8 7.5 7.7

4.2

2.93.7

2.51.9

6.5

3.6

1.6

6.7

• TV only • Incremental Impact of Online to TV • Incremental Impact of Magazines to TV + OnlineBase = 39 Studies. Source: Dynamic Logic 2009.

Poi

nt D

iffer

ence

>

Incremental Effect of Medium on Brand Metrics

Media Performance for Cost per Impact (CPI)Brand Awareness

Brand Familiarity

Purchase Intent

$0.98$1.08

$1.97

$2.61$1.40

$2.58

$1.77$1.23

$2.61Aggregate of 38 studies.Source: Marketing Evolution, 2008

television

magazines

online

magazine tv tv magazine tv + onlinetv only online only only + online + magazine + online + magazine

Aided Brand Awareness

Ad Awareness

Message Association

Brand Favorability

Purchase Consideration/Intent

Denotes most cost-effective medium for metricDenotes second most cost-effective medium for metric

Aggregate of 10 studies. Source: Dynamic Logic 2009

MYTH > Cutting my magazine budgetWON’T COMPROMISE ad results.

REALITY > Magazines perform best through the purchase funnel,especially in brand favorability and purchase intent

REALITY > Magazines are the most cost-effective medium throughoutthe purchase funnel, looking at two measures of ROI

> Magazines most consistently generate a low cost per impact

> For cost per person, the most efficient media combination always includes magazinesMost Cost Efficient Media Combinations Based on Average Cost per Person

For more information or to download these charts, go to www.magazine.org/accountability.Cover Photo: 200315774 – 001/photodisc /gettyimages

Media That Trigger an Online Search by Age and GenderMedium (percent) Total M F 18 –24 25 –34 35 –44 45 –54 55+

Magazines 44% 40% 47% 36% 44% 45% 45% 44%

TV/Broadcast 38 40 37 30 39 40 42 38

Newspapers 36 35 36 21 27 33 40 45

Face-to-Face 35 34 36 39 43 38 35 27

TV/Cable 32 35 28 37 42 34 29 23

Radio 27 30 25 22 34 32 29 21

Direct Mail 26 24 28 20 27 27 27 27

E-mail Ads 23 22 23 22 28 24 22 19

Internet Ads 21 23 18 26 26 22 20 15

Online Communities 11 10 12 23 19 12 7 4

Source: BIGresearch, Simultaneous Media Usage Study (SIMM14), June 2009

Magazine digital initiatives cover online and mobile extensions, and include partnerships with companies such as Facebook, Hulu, YouTube and Twitter. Source: MPA Information Center, 2009

2006

2007

2008

2009

Number of Magazine Digital Initiatives Jan-Sept 2006 – 2009% increase

90

169 +88%

197 +17%

254 +29%

Magazines

Newspapers

Radio

Television

Internet

Outdoor

Base: Top quintile of usage for each medium.Source: MRI, Spring 2009

140

84

104

62

175

113

Index Based on Percent of Consumers Using Facebook or MySpace in Last 30 Days

MYTH > Magazines aren’t KEEPING PACEin the digital age.

REALITY > Magazines rank #1 at influencing consumers to start a search online – higher than newer media options

REALITY > Magazines best complement the web in reachingsocial networkers

REALITY > Magazine digital initiatives have increased in double digits every year since 2006