Combined services

Combined services

Finance, Retail, Telecoms, Travel, Media, Government/Social/Political, Other services

Newsbrands are an important advertising medium for many types of service brands, the third biggest channel for this group of sectors. Advertisers invested an average of 11% in newsbrands in 2015 (figures sourced from SMI and include digital). This has fallen from 19% in 2011. The main winner has been digital which has grown from 22% in 2011 to 31% in 2015.

  • Current investment levels

    Of the 11% invested in newsbrands in 2015, the majority of spend was in print (9.3%).

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

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

    Current combined services invesment levels

  • Print newsbrands make TV spend work twice as hard

    Optimum investment for combined services

    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 combined services 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 between 13% and 26% – although it is better to spend higher than that, rather than lower. Another way of looking at this is brands need to return to 2013 levels of spend as a minimum, when just over 16% was invested in print newsbrands.

    One compelling reason is that TV – which accounts for the highest spend levels – is twice as effective when print newsbrands are in the mix.

Conclusion

Print newsbrands should form between 13% and 26% of the budget – although it is better to spend higher than that, rather than lower.

 

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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.