- Magazines provide high profit ROI, especially for beauty and finance brands, but receive only 3% of ad spending despite strong performance. - Analysis showed magazines were the top performer on channel profit ROI for beauty brands, driving 164% improvement, and increased profit ROI 68% for finance brands. - Increasing magazine investment across all markets by £220 million, or taking spending back to 2015 levels, could deliver optimal profit ROI across categories. - Magazines work well in combination with other channels like TV and online video, driving uplifts of 34-44% on business metrics. They are particularly effective for customer acquisition. - The conclusion is that advertisers could optimize campaign profit ROI by rebalancing media mixes

1. ANNA SAMPSON
Insight & Strategy Director -
Magnetic

2. Attention Pays:
Optimising for Profit

3. Effectiveness

4. Optimisation

5. Range of resources
Ongoing testing
Individualised strategies

6. Key questions answered
• What is the gap in investment across the market?
• What are optimum levels of investment for advertisers?
• How well do magazines perform on profit ROI?

7. Profit ROI analysis

8. You need to rebalance the media mix

9. We are going to focus on two
categories today

10. 164% improvement
in PROI

11. BEAUTY

12. Magazines are
the no. 1 channel
for profit ROI
for beauty
brands

13. Beauty brands are big supporters of magazines
£240k
a year
42%
Invest
Average investment

14. 0.25
0.49
£0.00
£0.10
£0.20
£0.30
£0.40
£0.50
£0.60
No Magazines Use Magazines
Campaign PROI for beauty brands
96%
Uplift

15. 5% of your
budget0.25
0.49
0.66
£0.00
£0.10
£0.20
£0.30
£0.40
£0.50
£0.60
£0.70
No Magazines Use Magazines Optimum Magazines
Campaign PROI for beauty brands
164%
Uplift
96%
Uplift

16. • Magazines top performer on channel profit ROI for beauty
• A beauty brand already investing in magazines can have
confidence in their decision
• Beauty brands not using magazines should move
investment into

17. 68% improvement in
PROI

18. Finance brands are currently less likely to invest in
magazines
£120k
a year
22%
Invest
Average investment

19. Finance brands are most likely to invest in TV,
Digital and Outdoor

20. Magazines drive profit ROI for finance brands

21. 0.25
0.33
£0.00
£0.05
£0.10
£0.15
£0.20
£0.25
£0.30
£0.35
No Magazines Use Magazines
Campaign PROI for finance brands
32%
Uplift

22. 6% of your
budget
0.25
0.33
0.42
£0.00
£0.05
£0.10
£0.15
£0.20
£0.25
£0.30
£0.35
£0.40
£0.45
No Magazines Use Magazines Optimum Magazines
Campaign PROI for finance brands
68%
Uplift
32%
Uplift

23. Magazines deliver quality attention at
exceptional value

24. Yet magazines only receive 3% of adspend
39%
29%
11%
9%
4%
3%
3%
1%
1%
TV
Digital Display
OOH
Digital Search
Newspaper
Radio
Magazine
Cinema
Digital Video

25. ‘Pay Attention’ raised the issue
that magazines are undervalued

26. A £220 million
increase in magazine
investment across the
market would deliver
optimum profit ROI

27. Taking magazine
ad spend back to
2015 levels 5%

28. Magazines work well in combination with
other channels
1.4
1.9
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
TV without magazines TV with magazines
Magazine multiplier effects with TV
Source: IPA Databank, 2012-2016 UK cases
Media combination
Uplift 34%
Avg.no.verylargebusinesseffects

29. Magazines work well in combination with
other channels
1.3
1.8
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
O/L Videos without magazines O/L Videos with magazines
Magazine multiplier effects with online video
Media combination
Source: IPA Databank, 2012-2016 UK cases
Avg.no.verylargebusinesseffects
Uplift 44%

30. Magazines really deliver on customer acquisition
42%
20%
17%
51%
35%
44%
0%
10%
20%
30%
40%
50%
60%
Sales gain Market share Customer acquisition
Detailed business effects uplifts
NOT using magazines Using magazines
Uplift
23%
%Reportingverylargebusinesseffects
Source: Bridging the long and short term divide, Peter Field, Magnetic 2017
Uplift
74%
Uplift
161%

31. Conclusions
• There is an opportunity to optimise campaign profit ROI
by investing 5% into printed magazines
• This is about re-balancing the media mix
• Beauty brands can be confident in their investment
• A strong case for finances brands to consider magazines