FMCG

FMCG

Newsbrands have not traditionally been a leading medium for FMCG brands, however they were often regarded as an important secondary medium. Advertisers invested an average of 7% in newsbrands in 2015 (figures sourced from SMI and include digital). This has fallen from 11% in 2011. The main winner has been digital, which has increased from 17% in 2011 to 27% in 2015.

  • Current investment levels

    Of the 7% invested in newsbrands in 2015, the majority of spend was in print (4.7%).

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

    The analysis shows that adding print newsbrands to the media mix in the food and drink category improves overall campaign revenue return on investment (RROI) by a factor of 1.2 (this is significant, given that these are often low margin products). And if you use more newsbrand channels the return from print increases even further.

    Current FMCG investment levels

  • Recommended spend in print newsbrands would be double current FMCG level of 5% for food and drink brands

    Optimum spend level for FMCG brands

    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 food and drink 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 required to deliver the optimum RROI lies around a sweet spot of 10%. Another way of looking at this is that brands need to return to 2013 levels of spend as a minimum, when just under 10% was invested in print newsbrands.

Conclusion

Print newsbrands should form around 10% of the budget for FMCG 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.