Retail

Retail

Newsbrands are an important advertising medium for retailers, the second biggest channel for the sector. Advertisers invested an average of 18% in newsbrands in 2015 (figures sourced from SMI and include digital). This has fallen from over 30% in 2011. The main winner has been digital, which has more than doubled from 10% in 2011 to 21.5% in 2015.

  • Current investment levels

    Of the 18% invested in newsbrands in 2015, the majority of spend was in print (16.5%).

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

    The analysis shows that adding print newsbrands to the media mix in the retail category improves overall campaign revenue return on investment (RROI) by a factor of 2.8. And if you use more newsbrand channels the return from print increases even further.

    Current retail investment levels

  •  In retail the sweet spot for print newsbrands lies between 20% and 31% of total campaign spend

    Optimum investment level for retail 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 retail 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 20% and 31%, with the sweet spot at around 27%. Another way of looking at this that retailers need to return to 2013 levels of spend as a minimum, when just over 25% was invested in print newsbrands.

Conclusion

Print newsbrands should form between 20% and 31% of the budget, with the sweet spot at around 27%.

 

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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.