Magazines remain the most effective advertising medium. A study by Marketing Evolution analyzed 20 independent studies and concluded that magazines on average produced the highest percentage-point increase in purchase intent—more than even television and online. Magazines also led in purchase intent across five major categories including:

• Automotive
• Entertainment
• Electronics
• General
• Pharmaceutical

But with the economic challenges ahead and the latest announcement regarding total advertising expenditures, magazines have to ensure they stay on top.  In fact for the first six months of 2008, TNS Media reported that total media expenditures declined by 1.6% while ad spending during the second quarter of 2008 was off 3.7% versus last year—the steepest quarterly drop since 2001.

Trends also show increased popularity among media targeted to specific audiences that ennable direct-response metrics such as Internet visits.  In fact marketers are prioritizing enhanced efficiencies for their brands and the ability to engage well-defined audiences to ensure ever greater return on investment. And magazines can help accomplish that important goal.

1. Magazines reach a specific community, engage readers and deliver online results

Some of the reasons magazines provide such fertile advertising ground is that they engage readers in a time-compressed world. While consumer dynamics present a “catch me if you can” marketing challenge, magazines are a vehicle consciously selected by readers. That’s why they lead the media pack in important areas such as initiating “qualified” online searches as well as searches by younger consumers.

• An award winning Leo Burnett campaign for Altoids illustrates magazines’ advertising power. Altoids wanted to leverage the brand equity of “curious strength” when launching its “Sours” product. The company targeted trend-setting urbanites to create buzz. A two-pronged approach that included a Teaser and Reveal stage was launched in cutting-edge magazines that positioned Sours with social and intellectual editorial. Within the first four weeks of the launch, more than 500,000 consumers visited their website. For more case studies on effective magazine advertising, visit Magazine Publishers of America.


2. A challenging economy: An opportunity for brands to stand out!

As the Branding Strategy Insider points out, “… the brands that continue to build their equity in the recession will be best placed to enjoy the fruits of their labor when the economy inevitably returns to growth.”

Need proof? Here are some interesting statistics provided by American Business Media from research conducted over the years:

• A Yankelovich/Harris study indicated the vast majority of executives agree that seeing a company advertise in a down economy makes them feel more positive about the company and keeps those companies top-of-mind when considering purchase decisions.
• McGraw-Hill Research’s Laboratory of Advertising Performance analyzed the performance of 600 b-to-b marketers and found that those maintaining or increasing their advertising budgets during a recession averaged sales growth of 275% over the preceding five years.
• An American Business Press study revealed that sales and profits can be maintained and increased in recession years, and in the years immediately following, by those who are willing to maintain an aggressive marketing posture.
• A Harvard Business Review report of 200 companies found the sales increases came from companies that advertised the most during the recessionary year.


3. Strategies to increase advertising revenue
   



• Focus on your existing advertisers. Everyone’s best source of new business is with existing customers. It’s especially true during slow economic times when budget-challenged advertisers turn to trusted sources for counsel.
• Know which advertisers have the best potential. Not every company does poorly in a down economy. Companies with products at either end of the spectrum—luxury or value-oriented—tend to fare best. Those in the middle suffer the most. On the business side, companies with offerings that create big efficiencies and impact fixed costs rise to the top, i.e. temporary services. Transformational industries such as pharma and energy also become more important in a slow economy. 
• Promote creative and impactful advertising options. Everyone wants to maximize ROI, so help your advertisers get out of the box with some inspirational ideas. For example, Scandinavian furniture and accessories retailer IKEA used a right-hand, fold-over page (single gatefold) to form the door of an armoire. Unfolding the page revealed the interior of the armoire and its contents—no doubt a great attention getter and traffic builder. Find out what successful, creative advertisers are doing and spread the word.



IKEA transforms a gatefold into an armoire

• Improve your advertisers’ target marketing. Increasing the precision of your advertisers’ campaigns helps them speak more personally to buyers and improve results. Print technologies from selective binding to inkjet imaging, as well as rapidly evolving variable-data digital-print solutions, enable advertisers to target the most appropriate segments of your subscriber database.
• Try inserts.  Inserts can also generate additional revenue and offer alternative options for advertisers.  They can be printed with colour-variable digital solutions and selectively inserted to speak personally to the advertiser’s target audience.
• Think metrics. Nothing draws advertising dollars like measurable returns. Make it easy and affordable for advertisers to include reply cards, bar-coded coupons and other devices that deliver sales and leads.
• Sweeten the pot. Entice an advertiser to consolidate or significantly strengthen a program by offering value-added solutions. Options like free list usage, publishers’ letters, access to market research and “intent-to-purchase” programs can deliver more return on your advertisers’ investments.


4. Magazine readership is growing

According to first-half figures provided by Media Research and Intelligence, magazine audiences continue to grow. Approximately 74% of the 95 leading consumer magazines saw their audiences increase a total of 4.3%, and the rest were either flat or experienced only moderate drops. Likewise, business magazines saw audiences grow in double digits even while their ad pages declined. The good news is that both consumer and business magazines remain popular with readers, which provides confidence that the industry still has a viable product worthy of investment by you and your advertisers.

5. Work with the right partners

So by all means look for ways to strengthen your rate base. Get creative with your circulation campaigns, segment your subscriber database and give your advertisers the audience they seek.  Work with partners who can offer you ideas and advanced technologies to help build advertising revenue.

Contact your Transcontinental representative to plan a presentation to your advertising sales team.