Retail

Retail

overview

Newsbrands are an important advertising medium for the retail category and in fact are the second biggest channel behind TV, with an average of 18% being invested annually (2015 figures from SMI, includes digital). Of that 18% the majority is delivered in print (16.5%). Our evidence from 121 econometric models demonstrates that adding print newsbrands to the media mix in the retail category can improve revenue return on investment by a factor of 2.7. Online display spend in newsbrands will increase the return from newsbrands even further.

  • 1

    Current Investment Levels

    Digital media spend has been growing at the fastest rate of any channel for retail. TV is still the biggest channel, despite a drop from 47.3% in 2011 to 43% in 2015. Newspapers are still the second most important channel for this category.

    increase

  • It is always best to have newspapers in the mix and return is strong at all levels but 20 to 30% mix produces the highest campaign ROI

    chart

    Source: Results Vaults 2011 to 2015 – excludes outliers and incomplete models

    2

    Optimum Investment Levels for Total Campaign

    In order to understand the optimum investment levels for newspapers, we divided all the retail cases into four groups, according to level of newspaper spend – no, low, medium and high. For each group we then analysed the Revenue Return on Investment – both total revenue and average revenue per £1 spent.

    The analysis demonstrates that the investment level required to deliver the optimum Revenue Return on Investment lies between 20% and 31%, with the sweet spot at around 27%. This suggests that the proportion of spend in the retail category should return to 2013 levels as a minimum, when just over 25% was invested in print newsbrands.

  • 3

    Newspapers supercharge other media

    Not only do newspapers improve the total campaign RROI when they are included in the media mix, they also have a positive impact on other media too. For the total services category (of which retail is an important part), they increase TV RROI by a factor of up to two times, online display by up to four times and radio by up to 10 times.

    Retail – Total Comms Revenue vs Newspaper % of Spend

    Source: Results Vaults 2011 to 2015 – excludes outliers and incomplete models

Conclusion

Return on investment factor of 2.7