The Power of Industry-Specific Business Magazines Overview ABM engaged Forrester Consulting to complete an independent research study of the trends and impact of B2B media on both end-users/decision makers and marketers. The findings and analysis of this study indicate: 2 • That industry specific magazines continue to be an important communications tool and play a critical role in business decisionmaking and purchase processes. • The integrated use of industry-specific business media – and industry-specific magazines in particular -- is the most effective way to help decision makers evaluate purchases, grow professionally, and improve their businesses. Entire contents © 2007 Forrester Research, Inc. All rights reserved. Summary of survey findings • Despite the growth in digital media use, industry-specific magazines continue to be an important communication tool: – Business decision makers (BDMs) rank industry-specific magazines among the top 5 media they use on the job – BDMs find industry-specific magazines highly valuable for validating and informing purchase decisions – Similarly, B2B marketers find industry-specific magazines are more effective at reaching BDMs and generating leads than general business media • Industry-specific magazines help BDMs do their jobs better and grow professionally. • BDMs – and top executives in particular – are highly involved and engaged with industry-specific magazines, and their involvement has remained consistently high since 2001. • The unique strengths of industry-specific magazines make them a valuable component of an integrated communications plan. • Despite evidence of their unique value, B2B marketers underutilize industryspecific magazines in their current trade marketing spending. • Even though BDMs indicate that industry-specific magazines will continue to play an important communications role in 2009, B2B marketers underutilize industryspecific magazines in their future spending plans. 3 Entire contents © 2007 Forrester Research, Inc. All rights reserved. With digital media’s growing importance, do business decisionmakers (BDMs) continue to read industry-specific magazines and use them on the job? Do BDMs rely on industry-specific magazines in making purchase decisions? Do B2B marketers find that industry-specific magazines are more effective at reaching business decision makers and generating leads compared to magazines? 4 Entire contents © 2007 Forrester Research, Inc. All rights reserved. For doing their jobs, BDMs rank industry-specific magazines their #2 choice among all media – and rank them ahead of general business magazines “Which B2B media do you use or interact with to do your job?” Email or electronic newsletters 76% Industry-specific business magazines 69% Peer advice, word of mouth 67% Vendors’ Web sites 66% Industry-specific conferences 65% Industry-specific trade shows 62% Web portals (e.g. Google) 57% Industry-specific Web sites 55% General business magazines 55% Newspapers 54% Web-based events 52% Direct mail General business magazine Web sites 51% 45% Base: 878 B2B decision makers Fewer than 45% of respondents chose the following media: Specialized business Web sites, Online video or rich Internet apps, Custom media, Online forums/communities/social networks, TV, Mobile/wireless devices, Listings in online directories, B2B blogs, Radio, Outdoor, Podcasts, and Syndicated content feeds/RSS. 5 Entire contents © 2007 Forrester Research, Inc. All rights reserved. When making purchase decisions, BDMs rely on industry-specific magazines – and media – more than general business media “Which business-related media are most effective at informing or validating your firm's business purchase decisions?” Base 48% 48% Peer advice, word of mouth Vendors’ Web sites 584 582 Industry-specific trade shows 45% 544 Industry-specific Web sites Industry-specific conferences 45% 44% 485 569 Industry-specific business magazines 40% 609 Email or electronic newsletters 40% 37% 666 37% 354 Web-based events Specialized business Web sites (e.g. IT Toolbox) General business magazines General business magazine Web sites Web portals (e.g. Google) Direct mail Newspapers 27% 26% 484 26% 500 23% 23% Online videos or rich Internet applications 17% 458 395 447 348 478 Fewer than 40% of respondents chose the following media : Custom media, Online forums/communities/ social networks, TV, Mobile/wireless devices, Listing in online directories, B2B blogs, Radio, Outdoor, Podcasts, and Syndicated content feeds/RSS. 6 Entire contents © 2007 Forrester Research, Inc. All rights reserved. B2B marketers agree that industry-specific magazines reach decision makers and generate leads better than general business magazines Reach Decision Makers Effectively • 327 agree industry-specific magazines reach BDMs effectively • 126 agree general business magazines reach BDMs effectively • 132 – or 67% more – agree that industry-specific magazines are better at reaching BDMs than general business magazines. Generating Leads Effectively • 260 agree industry-specific magazines generate leads effectively • 173 agree general business magazines generate leads effectively • 87 – or 50% more – agree that industry-specific magazines are better at generating leads than general business magazines. 7 Entire contents © 2007 Forrester Research, Inc. All rights reserved. How do industry-specific magazines help BDMs on the job or in their careers? In light of their busy schedules – and the availability of online content – do BDMs spend time reading magazines? Do BDMs visit industry-specific magazine Web sites as well? How has their time spent with industry-specific magazine titles and Web sites changed over time? Do BDMs find industry-specific magazines more engaging than general business magazines? 8 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Industry-specific magazines provide information BDMs can trust and use to grow professionally – when used alone or with other industry-specific media Percentage of business decision makers who chose the following media as the best medium for the following statements: Industryspecific magazines Industryspecific Web sites IndustrySpecific Tradeshow Provides objective information 25% (2) 27% (1) 9% (4) Provides information that I can trust 26% (1) 25% (2) 10% (4) Vendor Web site = 12% (3) Keeps me ahead of the competition 20% (2) 24% (1) 14% (3) Gen’l business magazine Web site = 9% (4) Helps me do my job better 20% (2) 22% (1) 11% (3) Web portals =10% (4) Helps me advance my career 19% (2) 22% (1) 14% (3) General business magazine = 10% (3) Helps me grow my business 18% (2) 21% (1) 15% (3) Gen’l business magazine Web site = 8% (4) Helps me become aware of new products or services 19% (2) 17%(3) 22% (1) Vendor Web site = 16% (4) Response Base: 878 Business decision makers Other media General business magazine = 11% (3) Key: Percentage of respondents selecting each medium (Overall rank in parentheses) Q11 Decision Makers survey: Please indicate which of the following media best helps you do the following activities. 9 Entire contents © 2007 Forrester Research, Inc. All rights reserved. BDMs are highly-involved with industry-specific magazines ► 64% of BDMs read 3 or more industry-specific business magazine titles in the last month. ► Even more top executives (67%) read 3 or more titles in the last month. ► 44% of BDMs spend 3 or more hours reading industry-specific magazines per week. This rate has more than doubled from 20% of BDMs in 2001.* ► Even more top executives (51%) spend 3 or more hours reading industryspecific magazines per week. *In 2001, ABM engaged Yankelovich Partners and Harris Interactive to complete an independent research study of the role of B2B media on fulfilling 505 executives’ information needs. The 2001 trend data is taken from the findings of this survey available at: http://www.americanbusinessmedia.com/abm/Yankelovich.asp?SnID=395133682. 10 Entire contents © 2007 Forrester Research, Inc. All rights reserved. BDMs are also highly-involved with industry-specific magazine Web sites ► 54% of BDMs visited 5 or more industry-specific magazine Web sites in the last month. ► This rate has more than tripled from just 16% of BDMs visiting industryspecific magazine Web sites in 2001.* ► In 2007, even more top executives (61%) visited 5 or more industryspecific magazine Web sites last month. ► 47% of BDMs spent 3 hours or more visiting industry-specific magazine Web sites per week ► This rate has increased from just 29% of BDMs visiting industry-specific magazine Web sites 3 hours or more in 2001.* *In 2001, ABM engaged Yankelovich Partners and Harris Interactive to complete an independent research study of the role of B2B media on fulfilling 505 executives’ information needs. The 2001 trend data is taken from the findings of this survey available at: http://www.americanbusinessmedia.com/abm/Yankelovich.asp?SnID=395133682. 11 Entire contents © 2007 Forrester Research, Inc. All rights reserved. In fact, top executives read more titles – and spend more time reading – industry-specific magazines compared to other decision makers ► Top executives are 2 times more likely to read 6 or more industry-specific magazine titles per month than other BDMs. ► Top executives are more than twice as likely to spend 6 or more hours reading industry-specific magazine titles in the past week when compared to other BDMs. 12 Entire contents © 2007 Forrester Research, Inc. All rights reserved. The majority of BDMs find industry-specific content and advertising more engaging than general business media Statement Agree When reading or interacting with industry-specific magazines, I find that I spend more time reading or thinking about the editorial content and product/service messages than with other general business media 80% Base: 878 B2B decision makers What’s more, 85% of senior-most executives agree with this statement compared to 79% of other BDM titles. 13 Entire contents © 2007 Forrester Research, Inc. All rights reserved. When used together with other industry-specific media, do industry-specific magazines help BDMs recognize brands and products better? Do they help B2B marketers attract more qualified buyers? Are B2B marketers spending plans keeping pace with the value decision makers get from industry-specific magazines? 14 Entire contents © 2007 Forrester Research, Inc. All rights reserved. When used together, B2B magazines and other B2B media help BDMs recognize brands and B2B marketers find more qualified buyers B2B Decision Makers Agree It is easier for me to recognize or remember a company’s brand or products/services when I see messages about it in multiple media such as magazines, online, or at events 91% Base: 878 Business decision makers B2B Marketers Agree Our firm gets more qualified buyers when we integrate industry-specific B2B media like magazines and events with online media like Web ads and sponsored links. Base: 816 B2B marketers Q14 Decision Makers survey: Please rate your level of agreement with the following statements: Q9: Marketers survey; Please indicate your level of agreement with the following statements 15 Entire contents © 2007 Forrester Research, Inc. All rights reserved. 85% B2B marketers rank industry-specific magazines among the top 3 media tactics they use in their marketing programs “Which B2B media or trade marketing tactics does your company use in the past 12 months?” Corporate Web site 79% Industry-specific trade shows 71% Industry-specific business magazines 63% Industry-specific conferences 63% 62% Direct mail 61% Email or electronic newsletters 56% Public relations 49% Custom media 44% Web-based events 42% Newspapers 41% Web portals (e.g. Google) Product listings/ads in online directories 40% General business magazines 40% 39% Industry-specific Web sites Base: 816 B2B marketers Fewer than 39% of respondents chose the following media: Online video/rich Internet apps, Specialized Web sites, B2B blogs, TV, General business magazine Web sites, Outdoor, Radio, Online forums/communities/social networks, Mobile/wireless devices, Syndicated content feeds/RSS, and Podcasts. 16 Entire contents © 2007 Forrester Research, Inc. All rights reserved. While BDMs rank industry-specific magazines #2 of all media they use for doing their job, B2B marketers spend a significant percentage of their budgets on media that BDMs use or rely on less, such as general business media and traditional broadcast Reported % trade marketing budget spent on each marketing tactic in 2007 Base: 816 Marketers 17 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Will BDMs continue to use industry-specific magazines in 2009? Will B2B marketers’ spending plans for advertisements in industry-specific magazines keep pace with BDMs expected use of industry-specific magazines? 18 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Industry-specific magazines will continue to be more important for BDMs than general business media in 2009 “How will your use of business-related media change in the next two years (2009)?” % who say their use of tactics will “increase” or “increase significantly” in 2009. Web-based events 66% 63% Industry-specific Web sites Web portals (e.g. Google) 59% Email or electronic newsletters 58% Vendors’ Web sites 58% Industry-specific conferences 45% Industry-specific trade shows 45% Industry-specific business magazines 44% Peer advice, word of mouth 43% 39% General business magazine Web sites General business magazines Direct mail 29% 22% Newspapers 22% Base: 878 business decision makers, Q10 Decision Makers survey: How will your use of traditional media change in the next two years (2009)? 19 Entire contents © 2007 Forrester Research, Inc. All rights reserved. Similarly, B2B marketers expect to increase their spending on industryspecific magazines more than on general business magazines “How do you expect your spending on business-related media to change in the next two years (2009)?” Corporate Web site 31% Industry-specific trade shows 44% Industry-specific conferences Email or electronic newsletters Industry-specific Web sites Web portals (e.g. Google) Public relations 32% 16% 27% 9% 26% 22% 37% 17% 13% Spend about the same on this tactic in 2009 Base: 816 B2B marketers 12% 31% 41% 33% 15% 33% 30% 34% Entire contents © 2007 Forrester Research, Inc. All rights reserved. 8% 35% Spend significantly more on this tactic in 2009 20 15% 27% 28% Direct mail Key: % of respondents who say: 12% 32% 44% 34% Newspapers 12% 30% 34% General business magazine Web sites General business magazines 24% 28% 42% Industry-specific business magazines Web-based events 39% 10% 10% 6% 6% Spend somewhat more on this tactic in 2009 Despite evidence of persistent value, B2B marketers’ budget plans will underutilize industry-specific magazines in 2009 “In 2009, how will your spending on – or use of – the following marketing tactics change compared with 2007?” % who say their use of these tactics will “increase” or “increase significantly” in 2009 Media/tactic B2B Decision Makers B2B Marketers Industry-specific trade shows OR conferences 58% 40% Industry-specific business magazines 44% 35% Industry-specific Web sites 63% 45% Corporate Web site 58% 62% Email or electronic newsletters 58% 47% Public relations 43% 42% General business magazine Web sites 39% 36% Traditional broadcast 33% 35% General business magazines 29% 23% Direct mail 22% 32%* Base: 816 B2B marketers, 878 business decision makers 21 Q3: Marketers survey Q10: BDM survey Entire contents © 2007 Forrester Research, Inc. All rights reserved. * = over-utilized