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ClickNew How to insert Heading Zealanders use Catalogues: Qualitative research findings The Real Media Collective Presenter: Laura Demasi, General Manager, Social and Consumer Trends, Roy Morgan February 27, 2019 Click to edit Master text styles
In today’s Click presentation to insert Heading Our approach Insights from qualitative research: • Perception of different types of Direct Mail, where catalogues sit in the media universe • The role of catalogues: Price vs Inspiration drivers • The role of catalogues on the Path to Purchase Click to edit Master text styles 3
Our ClickApproach to insert Heading Purpose of the Methodology Target Sample Size Questionnaire research Timing Audience & Source Length Qualitative focus Catalogue readers Two groups, mixed Explore catalogue groups gender conducted usage in New Zealand, - Heavy during December, following recent work - Medium 2018 conducted in Australia - Light and new quantitative Made a purchase in - Auckland metrics launched in AU last 4 weeks - Wellington market Click to edit Master text styles 4
Click to insert Heading Setting the scene… • Perception of different types of Direct Mail • Where do catalogues sit in the broader marketing channel universe? • How consumers use catalogues and Electronic Direct Mail together Click to edit Master text styles
How consumers perceive different types of Direct Mail Click to insert Heading Catalogues Brandzines Addressed / non addressed mail “Catalogues are “I keep these the ones you “These usually ones for a few get all the time, go straight into weeks, put every week or the recycling. them on the every few Sometimes I’ll coffee table.” weeks.” open the charity ones.” We call them “catalogues” too We call “magazines” We call “junk mail” • Very useful • Not as useful • Considered shopping tool • Considered ‘marketing’ • Clear & transactional relationship – I give • What’s in it for me? Benefits unclear my attention in exchange for discounts Click to edit Master text styles 6
As fewer bills arrive via the letterbox its role is evolving intoClick to insert a shopping Heading channel, which catalogue lovers regard with anticipation “I describe my letter box as a place for….” “Exciting “Potential wish “Management specials” list” and organiser” Click to edit Master text styles 7
In an era of multi-tasking, distraction and short attention Click spans to insert have catalogues Heading become a powerfully intimate way to engage Consumers perceive catalogues as one of the few marketing channels where they retain full control, engaging when they choose Engaging on my own terms “I like to sit down and read the catalogues when it suits me. I get to pick and chose the ones I’m interested in. I’m in control of what I choose to look at.” Click to edit Master text styles 8
Catalogues are uniquely placed in the marketing channel Click to insert Heading universe Catalogues drive purposeful, welcome engagement, in contrast to television and online advertising which consumers described as ‘intrusive’ or ‘background noise’ easily ‘zoned out’ from or ‘ignored’ Catalogues EDM Digital catalogues Online TV “In the “Useful tool” background” “Focused” “Helpful when “Easy to get “Ads intruding” “Doing other things “Gives me ideas” “A break from delivery doesn’t sidetracked” at the same time” screens” come” “I ignore the ads” “Sharable” “Too much clicking” “Zone out” Click to edit Master text styles 9
Catalogues are a valued tool in the modern shopping Click ‘tool kit’ –towhich insert Heading mixes digital and traditional channels Consumers use Electronic Direct Mail and Catalogues together to get the best savings Catalogues Electronic Direct Mail Catalogues prompt me to buy things and EDM shows me more of what I already show me things I didn’t know I wanted know I like “They are all handy – online catalogues, catalogues in the mail, the “I like the catalogues because you see emails you get. The emails are good new things. Often things you weren’t because they know what you like to thinking of buying before you saw them buy already so they are really relevant in the catalogue.” to me.” Click to edit Master text styles 10
It’s important that retail experience doesn’t disappoint Click to insert Heading us by failing to deliver on the catalogue’s promise “It annoys me when they say till ‘stocks last’ and they don’t tell you that there’s only 10 of them, so by the time you get there they’re all sold out. It’s like they bait you to get you into the store.” Click to edit Master text styles 11
Click to insert Heading The role of catalogues Click to edit Master text styles
Inspiration and price saving Click are the to insert key Heading drivers of catalogue engagement Relaxation & ritual Surprise & delight Inspiration Price Favourite brands Window Shopping cheaper Leisure Planning & budgeting Feel in Transactional: my attention control of my in exchange for discounts spending Click to edit Master text styles
We read catalogues Click to insert Heading to relax “Reading through the catalogues are my way to unwind. I’m a school teacher “It’s enjoyable. It’s light so at the end of the day I like reading, I don’t have to to read something that it isn’t think too hard.” too demanding.” Click to edit Master text styles 14
We read catalogues to take a break from screens Click to insert Heading “I still read catalogues. Computers are a means to an end for me – for business and to get things done. I don’t spend time on the computer to relax. I’d much rather flick through a catalogue for that.” Click to edit Master text styles 15
WeClick readto catalogues to give insert Heading us ideas and inspiration “They give you ideas. Like the Harvey Norman catalogue. I “I love the recipes in the supermarket was looking for a catalogues, they lounge and I loved the give me ideas and way the whole living inspiration for what room was set up in the to cook.” catalogue, I wanted to buy all of it.” Click to edit Master text styles 16
We read catalogues to help us save money on daily Click to insert Heading essentials “I run a household of 6 “I shop at all three supermarkets. I kids so I need to shop like to see what’s on special so I smart. I use the read the catalogues first. Pak’n’Save catalogues for price doesn’t have a catalogue, which is a comparison.” shame.” Click to edit Master text styles 17
Catalogues remind us of what we need to buy and Click to insert send us instore Heading “I read the supermarket “When I have something catalogues religiously. in the back of my mind They prompt me for the that I know I need to buy, things I need to buy.” like I need a new phone at the moment, if I see it in a catalogue it reminds me, so it gets me into the stores to look.” Click to edit Master text styles 18
We love to share our favourite catalogue finds via Click DIY to insert Social, Heading making catalogues message and mobile friendly “I take photos of the “My daughter lives in Sydney and she “I just enjoy it, I like to recipes in the sends me photos of sit down and read supermarket things in catalogues them with a cup of tea catalogues and she wants for her to unwind.” send them to my birthday or sister.” Christmas.” Click to edit Master text styles 19
We use catalogues as general Click to insert Heading research and to discover things we didn’t know we needed or wanted “You see things and you “Catalogues are an easy get ideas. Things you didn’t “I like to know what things way to research. I like to even know you needed or cost so I know I’m not see what’s available out wanted – the fish smoker I being ripped off.” there to buy and how much just bought.” it costs.” Click to edit Master text styles 20
Catalogues aren’t just about specials, they can be Click to insert Heading useful reference guides we like to hang on to “I love the Milly’s Kitchen catalogue. It’s really comprehensive. You see things in it you wouldn’t see in “.” the store because the store is so big and there are so many products. I like to look at the catalogue first to research, to see what the new products are, so then I know what to look for when I got to the store. It’s not the type of catalogue you read for specials, it’s a reference guide.” Click to edit Master text styles 21
Catalogues reach everyone in the household, there’s Click to insert Heading something for everyone “In my house we divide up the catalogues when they arrive. I go through them and give“ all of the car, electrical and hardware ones to my husband and he goes through them and usually goes up to the stores to stock up on what’s on special. I keep all of the ones I like – the supermarkets, the cooking stores. I give the jewellery and fashion catalogues to my daughter.” Click to edit Master text styles 22
Including the kids, who love Click to insert Heading reading catalogues too “My 11 year-old likes to “The kids love reading the read the catalogues, she toy catalogues. I don’t marks the things she mind the kids going wants. It’s her form of through them - it gets window shopping.” them away from screens.” Click to edit Master text styles 23
We sometimes seek out Click to insert Heading digital catalogues but we prefer to read them in hard copy “I like to read online “I love the Bunnings “I look at the PDFs of the catalogues too but they are catalogue. I like the catalogues online but it’s hard to use; hard to look at on hardcopy, so I can keep it just not the same. I like the your phone, the formatting is for reference later when I feel of paper in my hands.” hard to flick through, it’s hard need something.” to turn the pages.” Click to edit Master text styles 24
Catalogues show Click to insert us products in context Heading “Ezibuy – I love it. I like to see how the whole outfit looks. I’d rather buy from the catalogue than the shop.” Click to edit Master text styles 25
We like Click totoinsert take Heading our catalogues with us instore “I like to go through and circle what I want. I “ take the catalogue with me to the store to show the person exactly what I want, so I don’ t have to find it myself.” Click to edit Master text styles 26
Catalogues can trigger a more protracted customer Click involving journey to insert an Heading intense research phase “I needed a new sound system so I started “It’s much easier to do collecting all of the research with the electrical catalogues and catalogues. I wouldn’t start studied them. Then I by going to the stores called the stores to ask first.” questions. It started the research process for me.” Click to edit Master text styles 27
Catalogues Click to create desire insert Heading “Catalogues are an awareness thing for me, they bring things to mind. I was looking at the Countdown “.” catalogue and they had“ prawns on special. I wasn’t looking to buy prawns but it put the thought in my mind and I thought, mm.. they look good, so I went up and bought some.” Click to edit Master text styles 28
Click Butto insert if we can’tHeading find the sale date it annoys us “It’s really annoying when “Sometimes I’ll see something in you can’t find when the sale a catalogue and make a trip to ends. It’s usually on the top the store to buy something and or bottom corner they say, ‘oh sorry, the sale somewhere, it’s hard to find. doesn’t start still Tuesday,’ and I don’t understand why they they’ve sent me the catalogue do it. That’s the whole point the week before and there’s no of the catalogue, to buy the obvious sale date on it.” thing when it’s on sale.” Click to edit Master text styles 29
Click to insert Heading Catalogues on the path to purchase Click to edit Master text styles
Catalogues on the path to purchase Click to insert Heading Purchase Read catalogue Path 1: Straight to store - Most likely for supermarket Call store or visit - Wait until weekly shop website to check Share with friends / - Special visit to store availability family Path 2: Detour via online Purchase research Visit store, sometimes - Major purchase checkout - Unintended purchase competitor Visit competitor websites Search for online stores Visit brand website for price comparison product reviews for more details No purchase -Not in stock Read catalogue Purchase -Disappointing retail Path 3: A need to experience; can’t fulfill find item, staff not -Specific need, ‘I need Visit store, knowledgeable a new dryer’ sometimes -Competitor offered cheaper -Catalogue part of checkout price ‘research’ phase of competitor -Product quality disappointing Visit competitor websites Search for online the customer journey stores -Out of colour, style, size etc for price comparison product reviews Read catalogue Purchase Path 4: Inspiration -Triggering desire -Often based on price No purchase -Not in stock -Often medium-major -Product quality disappointing purchase -Out of colour, style, size etc Call store or visit Share with friends / -Sometimes buy something else -Novelty purchase, eg website to check Visit store family Aldi availability Click to edit Master text styles 31
Click to insert Heading Click to edit Master text styles 1
ADVERTISING REVENUE $1,000 $900 $800 Television $700 Newspaper $600 Digital $500 Radio $400 Magazines $300 Outdoor $200 Cinema $100 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Advertising Standards Authority annually reported spend 2003 - 2017
Short-termism on the rise
Peter Field “There is a major price to be paid for [a focus on short-term activations] in terms of reduced long-term growth and profitability.”
The Ad Contrarian “As an ad medium, the web is a much better yellow pages and a much worse television.”
REALITY PERCEPTION EBIQUITY REPORT
WHAT ADVERTISERS & AGENCIES ARE SAYING What advertisers and agencies say 1 TV 48.9 2 Online video 41.6 3 Social media 41.3 4 Out of home 39.6 5 Cinema 39.1 6 Radio 38.9 7= Newspapers 36.3 7= Direct mail 36.3 9 Online display 35.5 10 Magazines 35.1 Base: All n=116, each respondent rated 2 attributes RE-EVALUATING MEDIA
OVERALL PERFORMANCE RANKING What the evidence says 1 TV 107.1 Digital 2 Radio 103.2 £5.3bn TV 3 Newspapers 87.8 £5.0bn 4 Magazines 79.5 5 Out of home 71.7 DM Newspapers Expenditure 6 Direct mail 67.0 £1.7bn £1.7bn OOH Media expenditure 7 Social media 65.8 £1.1bn 8 Cinema 61.4 Mags Radio Media Cinema £0.6bn £0.6bn 9 Online video 57.6 £0.3bn 10 Online display 50.0 Performance rank Rank Performance Performance rank RE-EVALUATING MEDIA
FOUR MAIN DRIVERS FOR MEDIA SELECTION 1. Clear Targeting 2. Ability to show strong ROI 3. Emotional response to a message 4. Increased brand salience
BRANDS & AUDIENCES 3M New Zealanders have read our magazines in the past year and Bauer digital network has 1.4M visitors per month MASS WEEKLIES FEMALE LIFESTYLE PREMIUM LIFESTYLE SOURCE: NIELSEN CMI (OCT17-SEP18). GOOGLE ANALYTICS OCT 18.
HOW NEW ZEALANDERS are connecting with us Bauer Media cross platform touchpoints – 4,570,000 +9.5% 1,474 1,296 1,091 1,307 Social Media & EDM Unique Website Viewers 1,786 1,789 Readership Oct 16 – Sept 17 Oct 17 – Sept 18 (Oct 17 Digi) (Oct 18 Digi) SOURCE: GOOGLE ANALYTICS JULY16 VS JULY18, UNIQUE AUDIENCE FIGURES DUPLICATED. SOCIAL AND EDM NUMBERS TO JULY18. NIELSEN CMI (APR15-MAR16 VS. APR17-MAR18). SINGLE ISSUE REACH BAUER CONSUMER TITLES, LIKE WITH LIKE TITLES MEASURED. SOURCE: GOOGLE ANALYTICS DEC16 VS DEC17, UNIQUE AUDIENCE FIGURES DUPLICATED. SOCIAL AND EDM NUMBERS TO DEC17. NIELSEN CMI (JAN-DEC16 VS. JAN-DEC17). SINGLE ISSUE REACH BAUER CONSUMER TITLES, LIKE WITH LIKE TITLES MEASURED.
THERE HAS BEEN A SHIFT IN THE TYPE OF CLIENTS WE’RE WORKING WITH SPLIT OF TOTAL ADVERTISING REVENUE FROM CLIENTS 2011 - 2018 Agency Direct 62% 61% Direct Agency 38% 39% 2011 2012 2013 2014 2015 2016 2017 2018 Source: Nielsen AIS 2011 - 2018 Nielsen AIS 2010 - 2018
THEN NOW BRAND AD BRAND ADS NATIVE ADVERTORIALS SPONSORED CONTENT DIGITAL DISPLAY/CONTENT LIVE EXPERIENCES SAMPLING COMPETITIONS COOK BOOKS INFLUENCERS VIDEO DIGITAL PLATFORMS ONE SHOTS CATALOGUES EVENT MANAGEMENT INSIGHTS GOODIE BAGS LICENSING AND MORE
HP SPECTRE 360 DESIGN MUSIC FASHION MATERIAL CREATIVE SACHI HARMAN GRUBISA
REINVENTING DESIGN MAT E R I A L C R E AT I V E
R EINVENTING MUSIC SACHI
R E I N V E N T I N G FA S H I O N HAR MAN GR UB ISA Reach goals were exceeded by an ave rage of 10.13% dwell times averaged all over 2 mins Our bi gge st KPI we re 30” completed views (very hard target) - exceeded these by an ave rage of 13.2% across the board Ove ral l we se cure d a 60% growth in search traffic for HP Spectre
The Atlantic In 2006, The Atlantic derived 86% of its revenue from print, including both ads and subscriptions. In 2017, print accounted for 19% of The Atlantic’s revenue. Its live events business now hosts nearly 150 events a year and accounts for 16% of the brand’s revenue. Digital took over from print in 2011 and made up the vast majority of revenue, around 60% of it from native campaigns, and it also created a digital consulting business that accounts for about 10%.
Bob Cohn, chair “A crisis is a terrible thing to waste.”
The age of diversification
Complex Media
Buzzfeed
Metro Beer Shoes Books Urbanaut Allbirds R O T Y r e c i p e s , To p 5 0
Custom publishing
> BAUER MEDIA NEW ZEALAND – INSIGHTS IQ THE INSIGHTS POWERHOUSE • Deep understanding of New Zealand and Australian consumers is part of our DNA. • Trans-Tasman team of 14 • Proprietary Research panels; - All Woman Talk & His Call 10,000+ New Zealanders • - The Insiders- 10,000+ Australians. • Multi-channel recruitment strategy to drive representativeness. • 10 year knowledge bank with an average of 150 studies per year.
> BAUER MEDIA NEW ZEALAND – INSIGHTS IQ PROVEN PARTNERSHIPS Showcasing Our Client Work Successful insights relationships with many well known New Zealand brands
Howard Luck Gossage “The real fact of the matter is that nobody reads ads. People read what interests them, and sometimes it’s an ad.”
Ziera
Affiliate Marketing Across our network we are writing custom stories every day around Lifestyle, Food, Homes, Current Affairs, Fashion, Beauty and Travel content. When advertisers become an affiliate partner we can place buy buttons on relevant product mentions that click through to advertisers sites and generate new leads and online sales.
Shoppable Imagery
Loyalty NZ
Mary Direen “There’s nothing quite like having something physical in your hands that you can look through and our research shows that families will sit down and go through the guide and circle the things they want and the kids can pick out the toys they might want for Christmas.”
Gary Vaynerchuck “Jab, jab, jab, right hook. Provide value, provide value, provide value, ask for the sale.”
Resene
Kia Ora
Carly Wigley “It’s a really, really important touch point and a reflection of who we are and what we represent. It’s [predominantly] an entertainment piece, but it also give us the opportunity to engage with our customers and share our stories with them.”
OurAuckland launch
Rory Sutherland “There is no sensible distinction to be made between value created in a factory and value created in an advertising agency … Our perception of, and reaction to, reality is subjective. How you feel about products, or even about your life, is at least as important, and probably much more important, than the product or your life’s objective characteristics.”
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