Indian Magazine Congress

February 24, 2014

Had Newsweek been in India, print issue of Newsweek would have continued to thrive and grow.

Magazines in 2013 grew by 5%Print: 10%; Overall Advertising 11.1%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Proj0

200

400

600

800

1000

1200

1400

426491

581672 678

786

624

899

11501202

12621325

Source: Pitch Madison Media Advertising Outlook 2014

Global consumer magazine market US$81.9bn in 2012(CAGR of less than 1% over 5 years)

The largest market, USA, is expected to de grow (-1.3% CAGR over 2012-2017)

Emerging economies are growing at faster clip and proving to be resilient

Magazines are growing in emerging economies

South Africa

Brazil

China

Nigeria

Kenya

7

7

7

9

9

Magazine Expected CAGR Growth(2012- 2017)

Source: PWC – Global Entertainment and Media Outlook (2013- 2017)

One comes across many such remarks, indicating inherent strength in Indian Publishing Industry

Rising Incomes and Aspiration, are positive drivers for

magazine’s growth in emerging economies

5 insights, reinforce Magazines as a great medium

Magazinesare

#1in readerengagement

Social Interaction

Life-enhanching

Inspirational

Ad attention

0 20 40 60 80 100 120 140

106

111

112

116

96

103

95

95

101

89

99

96

TV Internet MagazinesSource: Experian Marketing Services, Simmons Multi-Media Engagement Study, Fall 2012

Insight # 1

Magazine

Newspapers

Websites

Radio

TV

0% 10% 20% 30% 40% 50% 60%

10%

11%

18%

23%

51%

““I often find the advertising annoying”

MagazineAds are

LeastAnnoying

Base: All aged 15+Source: Absorbing Media, 2002

Insight # 2

Magazines capture

undivided attention91% of consumers when they read magazines are least likely to engage in other activity

Radio

Online

TV

Magazines

0 10 20 30 40 50 60 70 80 90 100

73

75

80

91

Source: Simultaneous Media usage study

Insight # 3

Magazines Websites TV

I pay attention to or notice ads 145 85 90

Ads fit well with the content 139 96 86It is a way to learn about new products 135 100 77

Inspires me in my own life 135 96 88

Gets me to try new things 131 100 81

I get valuable info from the ads 130 96 83Ads help me make purchase decisions 130 100 85I am more likely to buy products in ads 125 95 85

Inspires me to buy things 122 109 78

I trust it to tell the truth 113 107 84

It is an escape for me 111 77 114

Magazinesads are

Noticed and

Influential

Source: Experian Marketing Services, Simmons Multi-Media Engagement Study, Fall 2012

Insight # 4

Magazinestalk toSuperInfluencers

Newspapers

TV

Radio

Internet

Magazines

0 5 10 15 20 25 30 35 40 45

2

4

30

38

42

Base: Top quintile of usage for each medium among adults with a HHI of $50K+Super influentials are defined as people who have great experience in this topic and whose advice on this topic is trusted by friends and family membersSource: GfK MRI, Fall 2012

Number of times medium ranks #1 or #2 among super influential consumers across 60 product categories

Insight # 5

1. # 1 in engagement – Thanks to segmented audience of magazines

2. Ads are least annoying – Increasing efficacy of advertisements

3. Undivided attention – Critical in today’s era of multi screen consumption

4. Ads are Noticed and Influential – Opinion Makers

5. Speak to influencers – In era of social media connectivity, amplification of those with social clout : Critical

Why magazines have an Edge5

WHY MAGAZINES SHOULD FEATURE IN MEGA MEDIA PLANS?

Key Finding of Madison’s M:Spectra Once 70 @1+ thru TV is achieved Incremental reach is cheaper by using other media than

TV Magazine could feature purely as cost efficient choice

once diminishing return sets in TV

M:Spectra is a Madison proprietary tool that estimates combined reach across media

A proxy for single source data that is unavailable in India

Magazines can deliver on media numbers for high reach plans

Similar findings from other marketsBARB/TGI using fused data discovered

Shifting 25% of budget from TV to Magazines resulted in• Increase in gross ratings from 400 to 493 amongst All Women• Increase in 1+ reach from 73% to 87% Amongst Light Viewers of TV, “TV alone” plan was inadequateAdding Magazines doubled Gross ratings and increased reach from 50 to 76 doubled amongst light viewers

TV only (100% of Budget)

All Women

Light Viewers

Gross Ratings 400 163

Net Coverage (1+) 73.2 50.9

TV 75% + Magazines 25%

All Women

Light Viewers

Gross Ratings 493 309

Net Coverage (1+) 86.7 75.8

BARB/TGI fusion, using KMR-SPC’s Mercury software.

However, selection criteria should not be only based on Maximizing media numbers

But Medium’s ability to improve brand scores on key parameters

Madison Touch Point Study points

A proprietary study to understand role and influence of different media in different categories

FMCG, Top 6 Metros, Female 25+, Sample Size : 200+

Paid Owned Earned

Magazines play a key role in amplifying “Suitable for my needs” and in helping make Final Decision

TV

Radio

Newspapers

Health/Women's mag cooking sections

Brand FB page/website

Product Packaging

WOM Diet/health expert

WOM health/Diet Bloggers

Recommendation by neighbours friends ,family collegues etc..

You tube videos

30.0

80.0

Gen Info pc Info Brand manages health & weight Suitable for my needs Make Final Decision

Important to note: Multimedia usage is important!

Paid Owned Earned

Cooking Oils could probably do without TV but NOT WITHOUT health/women’s magazines

TV

Radio

Newspapers

Health/Women's mag cooking sections

Brand FB page/website

Product Packaging

WOM Diet/health expert

WOM health/Diet Bloggers

Recommendation by neighbours friends ,family etc..

You tube videos

30

80

Gen Info Spc. Info Good for health/heart Brand suitable for me Convinces you to try

Important to note: Multimedia usage is important!

Paid Owned EarnedTV

Radio

Newspapers

Womens mag

Brand FB page/website

Product Packaging

Celebrity Endorser

WOM Beauty Bloggers

DOC/ Beauticien expert

Consumer reviews

30

80

Gen Info Spc Info Premium brand Brand suitable for me Trial

If Shampoo brands do not consider magazines, they are opting for a sub optimal strategy

Important to note: Multimedia usage is important!

Similar evidence from International Studies

• Study on how media impacts consumers as they go thru five identified stages of the buying process (purchase funnel)

• Studied impact across purchase funnel for• TV alone• Incremental impact of Online

to TV• Incremental impact of

Magazines to TV + Online

Process Impact of Magazine

Aided Brand Awareness

No significant difference

Ad Awareness -do-

Message Association TV showed the biggest percentage point change.

Brand Favorability Magazines held a significant leadcompared to either TV or online.

Purchase Intent/Consideration

Magazines significantly outperformed other media in driving positive shifts in purchase consideration/intent.Dynamic Logic, a company specializing

in advertising accountability aggregated 39 case studies for the study

Marketing Management Analytics (MMA), studied 186 brands across 13 different product categories

If brands increased allocation to magazines, effectiveness of TV increased.

Increase in brand metrics (awareness)

Diverting a portion of campaign budget to magazines improves effectiveness of lead media

0-4% 4-10% 10 + %

0.600000000000001

0.8

1.1

% of total spends of the campaign allocated to Magazines

Tele

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At Madison, we have seen it in action

• For Saffola, we used magazines (along with other media) for an important campaign

• Saffola’s score as an expert on heart case increased from 59% to 67%

• Media Impact Analysis study independently conducted by Millward Brown concluded Print contributed to more than 50% of the brand equity uplift.

We can garner more benefits by thinking “out of the box”

Sampling thru magazines is a “no brainer” Segmented audience Publishers need to find innovative

ways to minimize leakage

As with any media, it pays to be innovative

Being Innovative in magazine pays

Execution Index

Standard flat advertisement 100

Inserts – linked to ad 112

Innovation 120+

Sampling 141

Stop Watch research; Sampling Innovations commissionedresearch among readers of Marie Claire magazine.

Not just a round shaped ad instead of square one• Clutter breaking but limited shelf life

Sustainable Innovation is by leveraging inherent strengths of magazines• Leveraging Magazine credibility• Speaking to influencers• Precise message for segmented audience

Being Innovative

Magazines offer stature

TIME Person of the yearNo other media but only a magazine can create such an

Iconic propertyProperty has stature because it is from credible magazine and has been consistent since 1927

Requirements to create iconic properties: Appealing to core audience Being consistent (Femina Miss India has been running since 1964)

Marketers need to embrace partnership Not ride on established property but co-create and

invest over long horizon for maximum impact

By Co-creating iconic properties, marketers can build stature for their brands

For Marico, we took social media outside of online world

Brands can use magazines to talk to Influencers

Insight that drove Marico’s thought process

Magazines build buzz. They excel in reaching people who shape attitudes and behavior.

Source: GfK MRI Fall 2011

Skoda targeting small set with relevant message

Simply Superb with Mansworld Created a special section in the magazine

where the brand communication “Legend is Back” was integrated into the editorial content

Prominent individuals spoke about their rules/ formulas that have worked for them

The readers got an insight into personality’s life and their philosophy

Ride to Glory with Harper Bazaar• Taking the same idea forward, Superb

targeted successful woman from different fields who spoke about their mantra of success

• The shoot captured the space and features of the car along with editorial content

• Massive 20,000+ enquiries recorded after the launch

• The search on Google for the brand Octavia shot up by 550%

• Sale target set for 2 months was achieved in just 3 weeks; whopping 1000+ cars were sold

• The entire success of the launch got highly appreciated and recorded as best practices by the Skoda headquarters

Results

For Marico, we took social media outside of online world

Brands can use magazines to talk to Influencers

MANTRAS FOR MARKETERS

Magazine offer segmented audience Evaluate on Cost per incremental Output (sales/brand metrics) vs. CPT

Multimedia is the only sustainable approach to beat clutter Allocate 10% to magazines, it improves effectiveness of other 90%

Innovate Magazines remain the best media to speak to influencers Innovation pays. If it is safe, it is risky.

Partner with publishers Co-Create enduring properties building on credibility offered by

magazines

RECOMMENDATION TO MY PUBLISHER FRIENDS

Commission research to amplify efficacy Study and record engagement metrics (ad avoidance /

Influence in purchase decision) Segment audience well and be true to your customers

Embrace digital media. An opportunity not a threat Magzter – Early example of how magazines can benefit

from digital media/ mobile explosion Magazines have more to gain

• Content rules : Online or Offline• Credibility of your magazines cannot be easily replicated