Advertisers who are cutting back on newspaper advertising are less effective, according to new research released today.
The new study, conducted by effectiveness consultancy Benchmarketing for Newsworks and covering 500 econometric models, shows that advertising with newspapers increases overall revenue return on investment by three times.
Senior clients and agency figures welcomed the findings of the study, which indicate that advertisers wanting to maximise effectiveness need to return to 2013 levels of expenditure.
Lorna Tilbian, executive director and head of media at Numis Securities, said: "The pendulum has swung too far and, just like records and books, it will find its equilibrium in the middle - digital is everything, but everything is not digital!"
Presented at Newsworks' first Effectiveness Summit this morning, the new ROI study provides hard evidence of the impact newsbrands have on advertising campaigns. The results show that newspapers increase overall campaign effectiveness as well as boosting other media - TV's effectiveness doubles, while online display becomes four times more effective.
Claire Harrison-Church, VP marketing at Asda, said: "Newsbrands are a crucial part of Asda's marketing mix because they provide us with an influential and flexible platform that we use to inform and inspire our customers. The ultimate goal of our comms is to deliver returns and this large-scale study allows us to continue to invest with confidence. Retailers know that adding newsbrands to a campaign increases the effectiveness of other media - here we have the evidence to prove it."
Tom George, chairman of the IPA Media Futures Group and chairman of UK and Northern Europe for MEC, said: "It is good to see the newspaper industry collaborating on this important issue and undertaking research to defend itself against some of the entrenched negativity in the market. There is a real appetite for evidence of the effectiveness of newsbrand advertising."
Rufus Olins, CEO, Newsworks, said: "Advertisers who want the best return on their investment should study this data. It is clear that newspaper brands boost other media as well as performing a powerful role in their own right. Running a campaign without newspapers is like trying to bake a cake without baking powder."
On a sector by sector basis, the research found that adding newspapers to a campaign increases effectiveness by 5.7 times for finance; three times for travel; 2.8 times for retail; 1.7 times for automotive; and 1.2 times for FMCG.
The ROI study forms part of Newsworks' wider effectiveness programme, which includes analysis of the IPA Databank by Peter Field, multi-platform tests into brand health conducted by BDRC Continental, plus a dedicated effectiveness microsite. The three studies were released at Newsworks' Effectiveness Summit held at the Ham Yard Hotel this morning, Wednesday 13 July.
The study was conducted by Benchmarketing, part of Omnicom Media Group, led by respected effectiveness expert Sally Dickerson. It comprised of meta-analysis of the data from over 500 econometric models built over the last five years, covering six different categories.
For more information please contact Liz Jaques on 020 7747 2133