GfK MRI StarchMetrix Sharpening the Focus of Magazine Accountability Context: The Advertising Spend Story •Concurrent with the downturn of the economy, the US saw major declines in advertising spending across all media between 2008-2009 •Stabilization and rebound have been slow, in particular for some media •Competition for advertising budgets has only increased Source: Barclays Capital, 2011 © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 2 The Print Industry Predicament Betsy Frank Chief Research & Insights Officer Time Inc. ARF Measurement 3.0 June 25, 2008 “The value proposition between consumers and magazine brands has never been stronger.” “Unless we find a way to communicate that value to advertisers, magazines will not survive as a viable and valued advertising medium.” “Without a system of measurement that is timely, accountable and most of all comparable to other media, we simply will not be able to communicate that good news.” © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 3 StarchMetrix solves three fundamental business problems facing the print publishing marketplace. The first is accountability. “It’s not just writing a check and hoping something good happens. Is there going to be a return on investment, and how will I know?” Paul Grogan CEO, Boston Foundation “With Starch AdMeasure, MRI has taken another big step towards helping to substantiate the power of print for marketers pursuing better proof of return on objectives.” Brenda White, Starcom USA © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 4 The second fundamental business problem facing the print publishing marketplace is comparability. Internet Changed the ROI game by offering ad performance metrics such as click-through and cost-per-click. Television In 2007, Commercial Ratings (C3) became the adbuying currency for the $70 billion TV market, replacing 65 years of program ratings. Outdoor Moving from an “opportunity to see” metric to a “likelihood to see” metric. © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 5 The third fundamental business problem solved by StarchMetrix is timeliness. New print ad readership data enters the marketplace every week, generating conversation. © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 6 StarchMetrix moves print measurement from vehicle exposure to advertising return on investment, enjoyed by other major mediums. Degree of relevance to advertisers Relevant measures Sales Response Ad-related purchase behavior Advertising Response Actions taken Advertising Persuasion How an ad influenced consumers who saw it Advertising Communication How well ad content is remembered Advertising Attentiveness Who paid attention to an ad Advertising Exposure Exposure to both vehicle and ad Vehicle Exposure Exposure to and attention paid to vehicle Vehicle Distribution Physical units by which ads are distributed © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 7 Ways to Leverage StarchMetrix Data ROI metric of a print campaign Learn how your ads performed in different magazines & different ad positions, as well as by size & color Determine how your ads/campaigns performed against those of your competitors/category Discover whether the number of ads in an issue affects readership scores See if within a competitive set, one title consistently outperforms others for certain brands Explore whether ad readership and actions taken scores differ by demographic Find out how readers feel about your brand (by publication) Determine if the additional costs of premium positions reflect higher noting or actions taken scores © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 8 GfK MRI Starch - Some Background Information (United States) For 85 years, the industry gold standard for print ad research with detailed ad readership metrics 2009 database of measured issues: 611 2010 -2012 – close to 200 titles, every issue, every national ad (1/3 page or larger) – approximately 3000 issues measured, ~150,000 ads (per year measured)! May 2011 – Starch began measuring digital magazine editions (tablet, eReader, Zinio/Coverleaf) GfK MRI brings together Starch data with audience data to provide ad audiences © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 9 GfK MRI StarchMetrix Methodology •All surveys conducted online •Online panel sources used for sample •In the US, 4 panels used (other countries have used different numbers of panels for sample) •125 completed surveys for every group of 25 ads measured •Respondents are pre-screened on title readership and then must qualify as having read the given issue •(in the US) Starch data weighted to GfK MRI National Study (print audience currency) © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 10 StarchMetrix: Main Metrics Noted – % of readers who remember having previously seen the ad in the study issue Associated – % of readers who not only Noted the ad, but also knew who the advertiser was Read Any – % of readers who read any part of the ad’s copy Read Most – % of readers who read more than ½ of the ad’s copy Reader Actions Taken – the number of Noters who took an action as a result of seeing the ad Brand Disposition – the extent to which readers of the publication are favorably disposed towards specific advertised brands Brand Influence – Recent brand purchase or recommended brand in last 2 weeks © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 11 Vanity Fair - May 2011 LOUIS VUITTON JEWELRY Category: Jewelry 1S4| Page 10 Issue Audience (000): 6,320 Noted Assoc. Read Any Read Most Advertiser 80% 74% 69% - AdMeasure Audience (000) 5,056 4,677 4,361 Issue Norm (60 Ads) 57% 51% 47% Issue Index 140 145 147 24% Comparable MRI Starch Adnorm: 1S4 - Jewelry Adnorm (132 Ads) 62% 53% 51% 25% Adnorm Index 129 140 135 NA Recommended the product/ service Considere d purchasin g the product/ service Purchased the product/ service Clipped/ saved the ad None Any Actions Taken Have a more favorable opinion Visited websit e Looked for more info about the product/ service Advertiser 50% 29% 17% 18% 10% 20% 3% 6% 50% Category Norm (1,080 Ads) 57% 22% 15% 16% 12% 20% 4% 8% 43% 88 132 113 113 83 100 75 75 116 Actions Taken by Those Who Noted the Ad Category Index Data based on 9 or fewer respondents are presented in red italics Positively disposed (Net) My favorite brand One of several brands I like Don’t use, but it’s worth trying Negatively disposed (Net) I use it but don’t particularly like it I don’t like it I’m unfamiliar with it Louis Vuitton Jewelry 75% 8% 28% 39% 25% 0% 9% 15% Category Norm (1,080 Ads) 53% 9% 22% 23% 47% 2% 3% 42% Brand Index 142 89 127 170 53 0 300 36 Brand Disposition The brand disposition information is asked at the beginning of the Starch survey, before respondents are asked about specific ads. The brand disposition questions do not reference an ad but rather ask the respondent about the brand itself. Actions Taken and Brand norms are based on major product category for all ads measured in 2010. [=] Ad has fewer than 4 words [-] Ad has fewer than 50 words | Adnorms Grp = Online11CT (1/2010-12/2010) | Run Date: Aug 10, 2011 8:22 PM © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 12 Current Starch AdMeasure Subscribers in the United States •Publishers •Condé Nast •Meredith Corporation •Rodale •Time Inc. •American Express Publishing •ESPN •Hearst Magazines •Bonnier Agencies Cont’d • OMD • UM • Zenith • Carat • The Martin Agency • MPG • PHD • Allscope Media • Kelly Scott Madison •Every Day with Rachael Ray •The Week •Johnson Publishing •Wenner Media •Smithsonian •Agencies Advertisers • Aveda • Purina • Sherwin-Williams • Progressive Insurance • Crate & Barrel • Michael Kors •Group M (Mindshare, Mediaedge, Mediacom) •Starcom •Mediavest © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 13 StarchMetrix In Other Countries •Canada – Syndicated study launched in the spring of 2011 •United Kingdom – Large-scale project conducted in early 2011, discussions continue about launching syndicated study •China – Test conducted in fall 2011 •Finland – Test conducted in fall 2011 •Czech Republic – Test launched March 2012 •Singapore – Test launched March 2012 •Hong Kong – Test launched March 2012 •Australia – Test planned for Q2 2012 © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 14 Presenter: Michal Galin michal.galin@gfkmri.com © GfK 2012 | Title of presentation | DD. Month 2012 ( update this line in view slide master) 15