ROI Bill Radcliffe

Advertising ROI Necessary or Not?William D RatcliffePresident, Millward Brown Canada bill.ratcliffe@ca.millwardbrown.comNewspaper '05: Delivering ChangeJune 2005: 

Advertising ROI Necessary or Not? William D Ratcliffe President, Millward Brown Canada bill.ratcliffe@ca.millwardbrown.com Newspaper '05: Delivering Change June 2005

Outline: 

Outline Who in the world is Millward Brown? What's happening in Media? Newspaper Advertising ROI: Proof or Consequences

Millward Brown: 

Millward Brown Global Brand and Marketing Research Learning how marcom build brands Brand Valuation and ROI services Named "Best of the Best" by the ARF David Ogilvy Annual Awards April, 2004

Perspective: 

Perspective National brand advertising NOT Local retail Classified Or DR sales ads (DELL, IBM, DMG)

Newspapers are Adapting - Earl Wilkinson : 

Newspapers are Adapting - Earl Wilkinson In the digital age Over supply of information Daily news is upstaged by "as it happens" news Classified, especially recruiting - going on line New value propositions Unique content Speedy news delivery Branding the Paper Is ROI worth paying attention to?

Newspaper share is Declining in Cdn: 

Newspaper share is Declining in Cdn Daily circulations are declining in mature markets!

US - Share of Media $s: 

US - Share of Media $s TV Growth Transition

TV's  "captive audience" has escaped!: 

TV's "captive audience" has escaped!

TV ad ROI – 10% decline in 3 years: 

TV ad ROI – 10% decline in 3 years 0% 60% Ad Awareness TV Spend 1997 1998 1999 $38.1m $41.1m $45.1m

What's Happening in Media?: 

What's Happening in Media? Still growing, but more choice Loss of faith in the 30" TV spot Are we reaching a TV Tipping Point? "The Money is Moving" - Unilever US

Slide11: 

"Clients don't like to make large sweeping movements in budget year to year… so their media mix allocations are NOT keeping up with overall media usage and fragmentation."

New Marketing Context: 

New Marketing Context Lean Marketing is coming Procurement Squeeze Sarbannes- Oxley ROI-based budgeting is coming

Upside: 

Upside Clients that show strong business results spend more on new and traditional advertising!

Newspaper ROI: 

Newspaper ROI Newspaper is falling behind Little Newspaper ROI being done Other media are doing ROI studies National advertisers - demanding it And there are new alternatives

Media as Brands: 

Weak Media as Brands Olympic Clean Slate Fading Star Classic Little Tiger Defender Specialist TV Internet Magazines Radio Outdoor Newspapers Branded Content Digital Signage

Advertising ROI Necessary!: 

Advertising ROI Necessary!

Appendix Charts: 

Appendix Charts

Two Paths: 

Two Paths ROI Connect the dots (investment to brand profits) Model the future based on the past Budget Planning What drives brand demand and triggers a purchase? Budget to suite

Sales: demand or promotion driven: 

Sales: demand or promotion driven

Marketing and Sales Promotion: 

Marketing and Sales Promotion

Brand associations come from . . . : 

Brand associations come from . . . Source: Millward Brown R&D Survey of Soft Drink Purchasers in Mexico

..from a range of media channels: 

..from a range of media channels Source: Millward Brown R&D Survey of Soft Drink Purchasers in Mexico