Finance

Finance

Newsbrands are an important advertising medium for financial services brands, but spend has declined in recent years. Advertisers invested an average of 10% in newsbrands in 2015 (figures sourced from SMI and include digital). This has fallen from 15% in 2011. The main winner has been digital, which has increased from 29% in 2011 to 35% in 2015.

  • Current investment levels

    Of the 10% invested in newsbrands in 2015, the majority of spend was in print (7.7%).

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

    The analysis shows that adding print newsbrands to the media mix in the finance category improves overall campaign revenue return on investment (RROI) by a factor of 5.7. And if you use more newsbrand channels the return from print increases even further.

    Current finance investment levels

  • Print newsbrands boost overall campaign ROI by up to 5.7 times

    Optimum finance investment level

    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, the financial services cases in the study were divided into four groups, according to level of print newsbrand spend – none, low, medium and high.

    The chart shows the average revenue per £1 spent for each group. The analysis demonstrates that the investment level required to deliver the optimum RROI lies between 7% and 22%, with the sweet spot at around 21% overall and 13% for high spends of £40 million+.

    Print newsbrands also boost online RROIs by an average of 2.3 times in the finance category. These econometrics indicate that brands need to seriously reconsider investment in print newsbrands.

Conclusion

Print newsbrands should form between 7% and 22% of the budget, with the sweet spot at around 21% overall and 13% for high spends of £40 million+.

 

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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.