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Click to insert Heading - The Real Media Collective
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

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Click to insert Heading - The Real Media Collective
In today’s
Click      presentation
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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

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Our
ClickApproach
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                                                                                 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

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Click to insert Heading - The Real Media Collective
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

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How consumers perceive different types of Direct Mail
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                               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
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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”

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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.”

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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”

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Catalogues are a valued tool in the modern shopping
   Click
‘tool kit’ –towhich
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                    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.”

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It’s important that retail experience doesn’t disappoint
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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.”

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 The role of catalogues

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Inspiration and price saving
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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
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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.”

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We read catalogues to take a break from screens
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                                          “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.”

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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.”

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We read catalogues to help us save money on daily
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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.”

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Catalogues remind us of what we need to buy and
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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.”

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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.”

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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.”

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Catalogues aren’t just about specials, they can be
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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.”

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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.”

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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.”

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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.”

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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.”

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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.”

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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.”

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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.”

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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.”

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Click to insert Heading

Catalogues on the path to
purchase

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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
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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.”
50
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