Newspaper Creative Benchmark Report Coles February 2011 It’s a component of the Newspaper Effectiveness Metric which is run by the newspaper industry marketing body, The Newspaper Works. A monthly study designed; • To measure and identify the effectiveness of newspaper creative • To help improve understanding of how to use newspapers effectively • To improve the understanding of the roles newspaper advertising can play • To improve the standard of newspaper creative • To provide a consistent metric that is accepted as the industry standard Coles was included in the February 2011 study Comparison of creative against category averages Pre/post effectiveness studies, measuring in-market effects and how newspaper work with Television The Newspaper Works’ effectiveness partner: Comprehensive analysis of how newspapers can best be used to influence purchase behaviour Recognised industry measures + Newspaper measures Ad Recognition Brand Linkage Message Comprehension Brand Equity Impact Role Map Action Map Newspaper Creative Diagnostics Proprietary newspaper measures The Newspaper Works’ effectiveness partner: First the back story Coles vs Woolies ads over time November 2008 – A direct comparison of Coles template vs Woolworths Market: Perth Size: FP Position: EGN Tested: November 2008 Market: Adelaide Size: FP Position: EGN Tested: November 2008 Retail Average Coles was at or below retail averages, while Woolworths was at or above. May 2009 – Coles launch highly effective new strategy Market: Sydney Size: DPS Position: EGN Tested: May 2009 Retail Average The new Coles approach of feeding the family for under $10 worked strongly on every level. A ground breaking strategy. March 2010 – Both Coles and Woolworths responded to concerns over shelf prices Market: Sydney Size: FP4C Position: EGN Tested: Mar 10 Market: Sydney Size: FP4C Position: EGN Tested: Mar 10 Retail Average Both ads worked beyond traditional retail roles, while Woolworths also linked well with TV activity and drove call to action Current retail activity benchmarked • Coles was one of three ads tested in Melbourne • Sample: Australians 16+ • Sample size: 111 • Fieldwork: 15–21 February 2011 • Conducted online by Ipsos MediaCT • Benchmarks used: Retail Average (see appendix for details) Market: Melb Size: DPS Position: EGN Tested: Feb 2011 Market: Melb Size: DPS Position: EGN Tested: Feb 2011 +11 +25 Woolworths/ Safeway +17 * * Caution – small sample size | Brand linkage sample size: n=29 (Coles), n=30 (Woolworths) Retail Average Significantly different to Retail Average at 90% c.l. The two ads are scoring well on topline measures, in particular generating strong interest, with Coles the second highest scoring retailer ad tested on this measure. Note: Ad Recognition and Brand Linkage can be affected by weight of campaign and timing of research **New measure introduced in March 2010, norms are not available The half price message is coming through clearly from both ads. People are also picking up on the secondary double vouchers messaging from the Coles ad, which may help to explain the strength of its ‘interest’ score. **New measure introduced in March 2010, norms are not available Retail Average The ads have a classic retail footprint, with the half price message appearing to generate a particularly strong call to action. % scores **New measure introduced in March 2010, norms are not yet available The ads are suggesting strong store visitation and interest in the products featured. Coles is the highest retailer ad tested to date (of 19 ads) on intention to buy/try. Retail Average Both ads feature a wide range of product and price information in a clear and visually appealing manner. +11 Retail Average Significantly different to Retail Average at 90% c.l. +18 +19 The ads are similarly strong in building brand equity, primarily via relevance, but also creating familiarity. How the ads compare to previous Coles ads Comparison with previous price/range activity Market: Sydney Size: Full page Position: EGN Tested: March 2010 Market: Sydney Size: Full page Position: EGN Tested: May 2009 Retail Average Both ads are strong performers, Super Specials providing a stronger call to action, Same Low Prices” meeting the retail average but also generating Reappraisal. Retail Average Both ads have a classical retail footprint, delivering strongly on call to action. How the ad compares to other strong retail ads The Interest comparison Interest Coles have the top 3 ads tested to date among retailers for generating interest. As at February 2011 (updated monthly) . 65 retailer ads tested to date. 3.1x 5.7x 1.7x 2.2x 4.4x 3.8x Higher than retail average Higher than retail average Higher than retail average Higher than retail average Higher than retail average Higher than retail average February 2011 (Updated monthly) The Call to Action comparison Coles now have two of the three strongest Call to Action ads among retailers. As at February 2011 (updated monthly) . 65 retailer ads tested to date. The Information comparison Effective information delivery can help an ad perform well in other roles. These top scoring retailer ads all perform well on Call to Action, Coles scoring highly across the board on all roles. As at February 2011 (updated monthly) . 65 retailer ads tested to date. The Public Agenda comparison Top scoring ad on Public Agenda overall Leveraging an issue of concern to the public can help an ad perform well in other roles, which these retail ads all achieve. Ads in other categories have achieved higher scores on Public Agenda. As at February 2011 (updated monthly) . 65 retailer ads tested to date. • Coles and Woolies are both strong retail ads, performing to a similar level. • Both communicate a compelling “half price” message in a clear and visually appealing way • The Coles ad is the second best ad we have tested from any retailer on call to action – Coles also hold top spot with ‘Four Meals for Under $10’ • Coles secondary messaging relating to double vouchers may be a contributing factor to its strong scores on Interest and Call to Action • Both ads are contributing to brand equity, particularly through driving relevance • The current Coles ad compares favourably to previous price/range focused Coles ads, which have also performed well • Coles advertising has improved and the ads we have tested in the last couple of years have been on a par with Woolworths • Established in 2006 by the major Australian newspaper publishers: – News Limited – Fairfax Media (including Rural Press) – APN News and Media – West Australian Newspapers • Represents paid national, metropolitan, regional and community titles. • Primary aims: – To promote newspapers as a powerful medium for advertisers – To ensure that newspapers are perceived as being contemporary and relevant in a transforming media landscape • • • • • • Testing of randomly selected and hand picked newspaper display ads Over 7,000 ad observations in total 36 test ads (27 randomly selected, 9 hand picked) 100+ observations per ad Population representative sample of the five mainland state capitals Conducted online by Ipsos Media CT, July-August and October – November 2008 • Sample size 2,475 Newspapers are a powerful medium to utilise across a broad range of strategic roles. Six strategic advertising roles have been validated both qualitatively and quantitatively, resulting in the creation of Role Map, one of two proprietary newspaper metrics. Role Map demonstrates how consumers connect with newspaper advertising across the six roles, comparing the performance of creative against a footprint of all ads tested. Statements are tailored to be appropriate to the advertising category. All newspaper norm Newspapers are recognised as an effective medium for delivering a Call to Action. Action Map, the third proprietary newspaper metric, expands on this strategic role to provide an understanding of the types of action a newspaper ad inspires. Measured via forced exposure, people are asked about the actions they would consider taking (or have taken) as a result of seeing the ad. New measure introduced in March 2010, norm not yet available. Another proprietary newspaper metric provides a set of creative diagnostics unique to the attributes of newspaper advertising. They’ve been developed to help identify areas for improvement where results across other brand and advertising measures may require further analysis and interrogation. Statements are tailored to be appropriate to the advertising category. All newspaper norm