Magazine ads more RoI efficient than TV: IPC

MUMBAI: For magazine publishers, this is a research finding that would bring them cheer as they face dwindling subscriber and advertising numbers. According to UK-based IPC Media, magazine ads are more efficient than television in delivering return on investments (ROI).

The research, named AdValue and carried out in collaboration with Nielsen, shows that every pound invested in magazine advertising fetches an average RoI of ?1.40.

Advertising in magazines led to an average increase of eight per cent spend per consumer household spend.

Nielsen used its Homescan panel alongside AdDynamix data to analyse the advertising campaigns of six FMCG brands - Lenor, Comfort, Flash Febreze, Hellmann’s, Colgate and Dove - and isolate the effect of the magazine advertising on household spend. Advertising spend data was then used to calculate the ROI.

The AdValue research study aimed to understand the impact of magazine advertising on driving sales. This was carried out by analysing sales and media data using two different techniques – a panel-based and an econometrics based approach.

Nielsen UK media analytics director Simon Nudds said, “AdValue demonstrates the ability of magazine advertising to increase sales and deliver measurable results.”

IPC Insight also partnered with Mindshare on an econometric modelling project. This demonstrated that magazines deliver a higher ROI than TV and could be used to improve the efficiency of a campaign without increasing the total budget.

IPC Insight director Amanda Wigginton said, “We’re delighted to be able to provide the industry with new, independently verified data on how magazines are driving sales. AdValue provides compelling evidence that magazines are effective in delivering ROI and directly impact the bottom line. Econometric modelling has also been able to show that magazines are often being under-utilised too!”

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