February 26, 2007

Magazines: A Mom's Best Friend
 
New info shows that media—especially magazines—play an important role in mothers’ lives. Moms read magazines frequently, feel positive about magazines and view magazine advertising as an important part of the magazine experience.
 
Moms: Frequent Magazine Readers
 
The Parenting Group’s "24/7 of Mom" research recently surveyed approximately 6,000 market-based panelists, all with children under the age of 12, to gain a better understanding of their media usage. The research found that moms use a variety of media for their informational and entertainment needs, turning to magazines quite frequently:
  		• 54% had read a magazine in the past day
  		• 88% had read a magazine in the past week
  		• 97% had read a magazine in the past 30 days
     
    Moms Trust and Relax with Magazines
     
    The "24/7 of Mom" research revealed that magazines rank high in trust with moms among 20 different channels of information. In addition, moms consider magazines the most relaxing medium.
     
    Medium "I trust as a source of information":
    Newspapers: 75%
    Magazines 61
    Internet Websites 54
    Radio: 53
    Doctors' Offices: 51
    Television: 51
    		 
    Medium that "helps me to relax:"
    Magazines 68%
    Internet blogs: 61
    MP3 Players: 55
    Radio: 50
    Newspapers: 47
     
    These results reinforce Northwestern University’s findings in the Magazine Reader Experience Study, which found that trust and relaxation were key magazine reading drivers for women. (See www.magazine.org/engagement for more on the Magazine Reader Experience Study.)

    Moms Accept Magazine Advertising
    The "24/7 of Mom" research study showed that moms feel positive about magazine advertising. For example:
    Medium where "ads don't bother me much:":
    Newspapers 58%
    Magazines 53
    Doctors' Offices 50
    Bus/Subway/Train 48
    Movie Theatres 47
    		 
    Medium where "I'd pay to eliminate ads:"
    Websites 27%
    E-mail 24
    TV 23
    Radio: 23
    Internet blogs 23
    Magazines 9
     
    Medium where "ads are disruptive:"
    Websites 52%
    E-mail 47
    Internet blogs 43
    Radio 38
    TV 36
    Magazines 17

    For more information on MomsConnection research, please contact Cheryl Wilbur, The Parenting Group’s Director of Research and Brand Development, at (212) 522-6408 or cheryl_wilbur@timeinc.com.

    For more information about this issue of SalesEdge, please contact Stephen Frost, Director of Research, Magazine Publishers of America, at sfrost@magazine.org.



    Measuring Accountability:
    Comparing Marketing Mix Modeling and
    Marketing Campaign Analysis


    Marketing mix modeling (MMM) has been in active use for the last 15 to 20 years, but more recently a second form of accountability research—marketing campaign analysis (MCA)—has also gained traction in the advertising community. This BTN compares how these two popular methods work, highlighting their similarities and differences.

    The factors that will be compared for marketing mix modeling and marketing campaign analysis include:
  		• Methodology
  		• Time Frame
  		• Inputs
  		• Strategic Uses
     
    Methodology

    Marketing mix modeling uses regression-based analysis to quantify how various factors (e.g., advertising by medium, promotion, competitive activity, pricing, and economic factors) contribute to return on investment (ROI). A multitude of variables can be analyzed simultaneously. The findings assess the impact of changes in the marketing mix during the period analyzed and how long the effect of each marketing element lasts in producing results. MMM offers insights into past marketing plans and provides a broad platform of knowledge to guide strategic thinking. MMM focuses heavily on the bottom of the purchase funnel: product purchase and sales.

    Marketing campaign analysis combines analytics with a survey-based technique that gathers people’s recollections of their advertising and purchase intent, continuously tracking these elements throughout the course of an advertising or marketing campaign. The survey is typically administered online, although supplemental studies can be administered to ensure a representative sample if needed. A control group (unexposed to the advertising campaign) is generally used to determine exposed versus non-exposed differences.

    MCA looks at the impact of marketing elements on consumer attitudes and response to advertising throughout the purchase funnel. Generally speaking, MCA has more of a media focus, although marketing mix modeling can shift its focus to media mix modeling.

    Time Frame

    Marketing mix modeling uses extended time periods, typically three or more years of data, although as little as one year of data can also be analyzed if there are sufficient data for meaningful analysis. As MMM is based on historical data, the models look retrospectively at past performance and try to explain as much as possible about what happened, e.g., to what extent the bottom line was impacted by sales or the degree to which marketing elements drove product purchase.

    Marketing campaign analysis uses shorter time frames because it generally measures only the current advertising/marketing campaign. MCA allows marketers to gauge how well their advertising message is being received while in market and adjust their marketing plans based on these findings. As such, it is particularly helpful in giving a quick read on new products and new campaigns where historical data are not available.

    Inputs

    As with any type of analysis, accurate and highly specific data are required to produce meaningful results in both MMM and MCA. Generally speaking, the more variables in a marketing mix modeling program, the more robust the analysis will be. Inputs can be of two types:
  		• Marketing specific variables, such as media, promotions, direct marketing activity, events or sponsorships, financial incentives)
  		• External factors or baseline elements, which are not directly attributable to marketing, such as competitive activity, seasonality, weather conditions, and the impact of special events like the Olympics or federal elections.

    Because of the longer time frame, MMM typically includes more factors and allows for “slicing and dicing” of data while maintaining data reliability.

    Conversely, because MCA is survey-based and takes place over a shorter period, it is harder to include a long list of different elements in this analysis. External factors are not typically included, although they may be inferred. The MCA survey methodology allows a marketer to probe for qualitative data such as brand attributes or image, which are usually lacking as an input for MMM. However, survey sample size often prevents these qualitative data from being segmented by multiple factors, such as looking at brand imagery using a combination of gender, age, income, geography, brand awareness, and purchase intent.

    Strategic Uses

    Because both MMM and MCA are a critical investment for obtaining marketing insights that can increase marketing accountability their use is growing. However, because they can be time-intensive as well as costly, few companies make the investment to do both on an ongoing basis.

    Marketing mix modeling and marketing campaign analysis can be viewed as complementary because of the different time frames, coupled with the amount and types of data with which each technique works. While both techniques share a common goal of providing accurate feedback on marketing effectiveness and ROI, each method has its own distinct advantages and uses.

  		• Marketing mix modeling looks at how a broader set of variables are paying off over a longer period of time.
  		• The findings from marketing campaign analysis can be quickly implemented to make short-term adjustments to marketing or advertising activity.

    As with any tool, the best use depends on the job that needs to be done. It is up to the marketer to determine which uses are best for his or her own particular needs and programs.


    For more information about this issue of Behind the Numbers, please contact Stephen Frost, Director of Research, Magazine Publishers of America, at sfrost@magazine.org.