Automotive

Automotive

Newsbrands are an important advertising medium for automotive brands. Advertisers invested an average of 10% in newsbrands in 2015 (figures sourced from SMI and include digital). This has fallen from over 20% in 2011. The main winner has been digital, which has increased from 25% in 2011 to 33% in 2015.

  • Current investment levels

    Of the 10% invested in newsbrands in 2015, the majority of spend was in print (7.7%). Between January and May 2016 this slipped to 5.8%. There are large discrepancies between different car advertisers, with some maintaining print newsbrand spend and others reducing rapidly.

    The evidence from the Benchmarketing study conducted for Newsworks demonstrates that the exodus from newsbrands, and print in particular, has been overdone by some automotive advertisers. They are not getting the best return possible for their investment.

    The analysis shows that adding print newsbrands to the media mix in the automotive category improves overall campaign revenue return on investment (RROI) by 70%. And if you use more newsbrand channels the return from print increases even further.

    Current investment levels

  • Print newsbrands should form at least 10% of the budget for automotive brands  Optimum spend for automotive brands

    Recommended % spend on print newsbrands to optimise total campaign ROI

    How to get the best return

    Advertisers need to get the balance of media investment right to deliver the best possible return back to their business. Newsbrands boost overall campaign revenue as well as having a respectable return on investment (ROI) themselves. To calculate the sweet spot for investment, all the automotive cases in the study were divided into four groups according to level of print newsbrand spend – none, low, medium and high.

    The analysis demonstrates that the investment level in print newsbrands required to deliver the optimum RROI lies at around 10% of total campaign spend, but should be higher for lower-spending marques. Another way of looking at this is that brands need to return to 2014 levels of spend as a minimum, when just over 10% was invested in print newsbrands.

Conclusion

Print newsbrands should form at least 10% of the budget for automotive brands.

 

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The ROI study

by Benchmarketing

  ROI study

Using the results from over 500 econometric models over the last five years, Benchmarketing has proved that newsbrands continue to play a very important part in the modern media mix. As a result, advertising spend should return to 2013 levels for optimum effectiveness.