Advertisers who are cutting back on newspaper advertising are missing a beat. This is the message of a new study, conducted by effectiveness consultancy Benchmarketing for Newsworks, which claims that advertising with newspapers increases overall revenue return on investment by three times.
The ROI study covers 500 econometric models to provide evidence of the impact newsbrands have on advertising campaigns. The results show that newspapers increase overall campaign effectiveness as well as boosting other media - newspapers make TV twice as effective and online display four times more effective. It goes on to claim that using digital newsbrands boosts print ROI by up to five times.
The research comes off the back of challenging times in the print market, which has seen print advertising revenues decline at a rapid rate this year as advertisers are investing more digitally. Across all categories print newsbrand spend has declined since 2011, while digital channels accounted for a third of media spend in 2015.
The research hopes to prove once and for all the value of print advertising. It claims advertisers wanting to maximise effectiveness in their campaigns need to return to 2013 levels of expenditure, where investment in print was at 11.4 per cent. That figure has since dropped to 7.6 per cent in 2015.
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.
Rufus Olins, chief executive at 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.”
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.”