Unveiling the Value of Newspaper Advertising
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- Imogen Henderson
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From this document you will learn the answers to the following questions:
What was collected from the reader web panels?
What is the most effective investment in building a panel?
What medium can you easily get the data from?
Transcription
1 "Newspapers are still the best advertising medium!" Unveiling the Value of Newspaper Advertising Dr.Erik Wilberg Wilberg Management as Norway Advertising Innovation in the Press Palma de Mallorca March 26, 2004 aede Asociación de Editores de Diarios Españolas CV Erik Wilberg (b. 1951) Business education Norway 1974 (BBA) MBA Henley Management College, UK, 1985 Doctor of Business Administration (Henley, UK) Leadership in newspapers. Working with advertising and circulation in Norwegian newspaper Consultant for newspapers and media since 1985, specializing in strategy, leadership, quality development and market research. 1
2 Kingdom of Sweden: 9 mill inhabitants 168 newspapers 82% read a daily newspaper Source: Economist Scandinavians read a lot of newspapers Newspaper circulation per 1000 inhabitants (2002) Norway Japan Finland Sweden Switzerland UK Germany Denmark Netherlands USA Source: WAN
3 The growing RAM-family AdIT Ad Info Tool EdIT Editorial Info Tool QuIT Quality Information Tool Developments Editorial Super view Training Workshops Theory development Advertising Tables and analyses AdHoc 3
4 Knowing more about the effects of newspaper advertising: Developed over a 6 month period in Collaboration with advertising executives of newspapers. Main topic: How can we measure newspaper advertising response quickly, cheaply and with reliability? AdIT The web based system was introduced to the Swedish market in May Today used by more than 25 newspapers in Sweden and will be introduced to Norway this spring. Language adapted versions will be available Why choose a web reader panel? High internet penetration in all age groups in Sweden Quick and flexible fieldwork - automatic reporting. Few mistakes never touched by human hand Easy accessible and actionable data by web browser Reference data from other newspapers in the database Perpetuum mobile Building knowledge continuously Cost effective investment in building the panel but running costs are very low. 4
5 Reader web panels provide: Running, standardized panel measurements via web interface focusing on valid data like observation, reading and perceived value of ads. Background data about the panel respondent along with the data about the paper and the ad itself support excellent opportunities of analysis - both of the single ad observations and through the aggregated database. Database contains ad observations and counting Reader web panels provide: 3 stage ad recognition: First the front page of the newspaper The actual page The ad itself The web interface gives flexibility newspapers can decide to run an ad measurement an hour before fieldwork starts. Automatic standard reporting is done via Internet after 48 hours. 5
6 The sequence 1. Newspaper joins AdIT system 2. Building and testing panel. 3. Calibrating (demographics) 4. Running ad surveys 5. Results available after 48 hours 6. Diving into the database creating references and knowledge 6
7 Ad data Size, color, frequency, page, etc. Newspaper data Format, circulation etc. Aggregated database Panel respondent data Demographics, habits, etc. Research data Ad Observ 7
8 The nice smell of fresh bread. Overall Appealing Useful Observation level Advertiser recognition (brand) Interpreting through reference data Interesting Ad is compared to all other half page ads in the database 8
9 Classified ad for second hand cars.. Overall Useful Will visit dealer Product development of motor classified Real estate ad Overall Advertiser recognition (brand) 9
10 Customer development with clear results Obs = 67% Obs = 78% The five best ad observations in different ad sizes. % obs Best 2nd 3rd 4th 5th Full page Half page Quarter page 10
11 The five best full pages (observation %) 83 % 78 % 76 % 76 % 74 % Sidan Eftertext Sidan Sidan Sidan 9 The five best half-pages (observation %) 75 % 74 % 69 % 66 % 65 % Sidan Sidan SS Sidan Sidan 40 11
12 The five best quarter pages 58 % 54 % 53 % 45% 44 % Sidan Sidan Sidan SS1 Diving into the advertising observation database Presently more than individual ad observations in the base 12
13 Average ad observations by age Base: full page, half page and quarter page 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% Quarter page Half page Full page R 2 = R 2 = R 2 = Older 40 + Younger 25 + Age 60 % Average observation by age Base: all ads measured 55 % 50 % 45 % 40 % 35 % b/w 4 color 30 % 25 % Spot color 20 % 15 % Older Younger
14 60% Observation of display ads Base. Non repeated colour ads 50% 40% 30% 20% 10% 0% Small ads medium sized ads big ads % Observation of Classified ads Base. Non repeated ads 50% 40% 30% 20% 10% 0% Small ads medium sized ads big ads
15 Left or right? 37 % observation Right hand page is on average 2-3% more observed 39,5 % observation 70% Observation left or right hand page 60% 58% 55% 50% 40% 30% 29% 27% 34% 32% 41% 38% 48% 45% Left Right 20% 10% 0% 1 column 2 columns 3 columns 4 columns 5 columns 15
16 Average observation of ads from different industries 50 % 45 % 40 % 35 % 30 % 25 % 20 % 15 % 10 % 5 % 0 % Travel Restaurants Auto Theatres Clothes Furnitures Banks Events Food Household equipment DIY Real estate Shopping malls TV, Radio, DVD Male Female Ad observation and # of pages in the newspaper 60% 50% 40% 30% 20% 10% 0% # of pages in the newspaper 16
17 60 The broadsheet vs tabloid question? Average ad observations % BS Tab 0 Whole page Whole page colour Whole page b/w Does editorial environment matter? Average observation of half-page ads 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % Ad pages Feature pages News pages Other Page obs Ad obs 17
18 What about the editorial environment? 90 % 80 % Half page ad observation 70 % 60 % 50 % 40 % Ad observ Page obs 30 % 20 % 10 % 0 % Domestic Foreign Local News Sport Advertising Debate Business Last page Cars Weather Entertnm Food/wine Real estate adv Car adv Stock ex RB-rate Readership behaviours in different age groups LBI Poly. (LBI) R 2 = 0, Time spent on reading x percentage of paper read 18
19 Payday matters: When people have money to spend they also look for bargains.. Observation close to Payday increases observation 10-12% Bottom line for newspapers Increased knowledge of advertising effectiveness sought after by advertisers and media buyers. Optimizing of ad placements through knowledge of readership behaviour Tool for developing better and more creative advertising Renewed source of newspaper ad pricing structures Excellent sales tool the sales reps have a renewed repertoire and a base for dialogue with the advertiser From guesswork to knowledge increased sense of professionalism. A modern and quick approach fast results 19
20 Moving into editorial: Article readership Total M F Police chases killer "Newspapers are still the best advertising medium!" Thank you!! Main Square Drammen, Norway 20
21 Contact information: Schlumberger Infodata AB P.o. Box SE Stockholm Sweden tel: Website: Main contacts: Ola Friskopp Staffan Hultén Sanatorieveien 18 NO-3021 Drammen Norway Dr. Erik Wilberg tel: web: 21
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