Tuesday, 28 February 2012

The Sun on Sunday

Last Sunday, February 26th, saw the launch of News International’s widely anticipated replacement for the News of the World – The Sun on Sunday. Whilst the launch has been predicted for some time, staff at NI had originally been told to expect a first issue at the end of March, so even they were caught on the hop when Rupert Murdoch himself arrived at their Wapping offices a couple of weeks ago and made the announcement he was bringing it forward. Given this short notice and to ease pressure on the sales team, advertisers were asked to commit to booking three out of four weeks. Seemingly, this did little to deter major brands, with space in the paper selling out by last Thursday. Among those who appeared in the first issue were British Gas, Morrisons, Three and Halifax.

We were told to expect editorial that was family and female focussed, with the paper’s style to be similar to the regular Sun’s but “crisper and cleaner” (and, like the Saturday version, without a page 3 girl). To target male readers, the sports section will be extensive, which means the demands on the sports editorial team, who already produce a huge football section on Mondays, will be substantial.
An aggressive TV campaign, starting with 10” spots during the BRIT Awards on ITV and ramping up to 60” spots by Saturday triggered a response from rival papers the Sunday Mirror and Daily Star Sunday, who went to air with TV ads of their own. The Daily Star Sunday even cheekily claimed to deliver “the news of your world”. These two papers also reduced their cover price to 50p to match the Sun on Sunday’s, as they battled to hold on to the c.1 million rise in circulation they have gained since the News of the World’s demise.

The first issue has been met with mixed reactions from those within the industry, with some describing it as a damp squib, lacking the NOTW’s clout and investigative journalism. The decision to run with the story of Amanda Holden’s recent difficult birth to her baby daughter has formed part of that criticism, with many viewing it as a rather soft front page for a launch issue. However, if the Sun on Sunday is set to target a family, female readership, then it has to be said the choice does seem a good fit. With Murdoch claiming the first issue sold 3.26 million copies, more than the 2.7 million its predecessor was managing and well up on the 2 million he claimed he would be happy with, the launch appears to have been successful.

It will be very interesting to keep track of what the circulation settles down to over the coming weeks and months, with the first ABC figures due in April. Even more interesting is the potential impact on the Sunday market as a whole, with the Sunday Mirror alone rumoured to have lost a massive 450,000 from its circulation last weekend. As ever, we’ll keep you abreast of all the changes, so stay tuned.

Kyle Seeley
Senior Planner Buyer

Tuesday, 14 February 2012

‘Why i? - It’s all in the ABCs’

The latest paper circulation figures for January have been released in the last few days. As we all know the national press has had a turbulent time over the past year and in particular with the News of The World closing there was much speculation as to where all that paper’s readers would go.

At least for now it seems the dust is starting to settle with the Sunday Mirror absorbing a large number of those left seeking an alternative to their Sunday spread. Figures show the Sunday Mirror has enjoyed an almost 36% year on year increase in circulation of approximately 700,000.

A big question is where have all the others readers gone? The News of The World closed with 2.6million loyal followers, which means that there should be a huge opportunity for the Sundays. However, even the Sunday Express only managed to take over a small proportion of this with a 100,000 increase in sales which seems to indicate there are a lot of people who simply don’t want to buy and read a Sunday paper anymore.

This raises some other questions. With the scandal at The Sun on-going, will people start to turn their backs on brands they’ve remained loyal to years? Will they choose a different medium to absorb the daily headlines or are people simply not that interested in the world around them anymore?

The January circulation figures show that there is only one daily paper to see a marked increase - the i. The i being the sister paper of the Independent, aimed at readers and lapsed readers of all ages, and commuters with limited time, launched on 26th October 2010. This is another strong month for the i backed by a considerable spend on TV which has resulted in a 40% year on year increase and improvements in circulation every month. The i sells for only 20 pence, 30% cheaper than The Sun and 80% cheaper than The Times. Therefore it appears the formula is right, a quick, quality read at an affordable price.

What will be interesting is how other titles react? There are rumours circulating that The Sun may launch a new Sunday alternative and will some of the other Daily papers follow the same route of producing a low cost alternative like the I? It remains to be seen…

*ABC- Audit Bureau of Circulations

Tuesday, 31 January 2012

ROI Under the Spotlight

Social media seems to have become a buzzword. Most modern marketers would find the question “Do I need a social media strategy?” a no-brainer – as much as the noughties equivalent: “Does my company need a website?”

But what place does such a qualitative, PR-based medium have in the world of Direct Marketing? Any company writing about their latest social media success tends to talk about it in terms of top-line figures: numbers of followers, re-tweets, the number of fans accumulated within X number of hours etc. The success of social media campaigns tends to be measured from the outside, the end result. But why? Because it’s just so difficult to justify how you got there!

However, despite the fact that few marketers seem to be brave enough to utter the terms “ROI” and “social media” in the same sentence, there are platforms emerging which allow the creation and strategic tracking of social network campaigns. One such platform has been developed by the Oxford-based company EngageSciences. The software was developed from two simple premises: the first, based on market research by IBM and Experian Hitwise, is that those who ‘Like’ fan pages on social networks are most likely to do so if they know they’re getting something in return; and secondly, that successful harnessing of social media is achieved by identifying the greatest influencers amongst existing fans. A good campaign will therefore identify and maximise individual channels of potential.

In return for offers and vouchers, the individual is invited to 'Like' a Facebook page, by their friends or by the company, which then subsequently allows the EngageSciences software to track their level of interaction with the fan page and the extent to which they share this activity with their friends. Both of which, of course, vary hugely from user to user, meaning that the most ‘generous’ fans may then be segmented for targeted messaging and offers.

It does seem then that marketers are beginning to harness social media by understanding consumer motivation and embracing the mechanism upon which social networks thrive.

So, are there any other learnings to be taken from this? The day appears to have arrived where a direct marketer is forced to acknowledge the value of earning attention from its customers. ROI is increasingly becoming a reflexive concept: it is no longer the concern solely of the marketer, as customers have a greater range of brands than ever to choose from, each with a similar offering.

From here on there are two routes: the first is increasingly targeted marketing; the product of more and more sophisticated insight. And the second? Attention earned through knowing exactly what your customers will listen to. In an increasingly cluttered marketplace, it’s worth learning a thing or two about the latter.

Sarah Greaney
Analyst

Monday, 16 January 2012

It’s not austerity, it’s intolerance

We live, allegedly, in a world of austerity. It is accepted wisdom that all consumers are wearing hair shirts, spending no money and are as miserable as sin.
No marketing activity can overcome this. Especially on Blue Monday

From where we sit that’s patently not true. Reviewing client results this morning we see clients with 60%, 15% and 30% growth year on year. Consumers will spend, and spend on high ticket products or services. Absolute cost isn’t an issue. Perceived value is.

There isn’t universal austerity, but there is universal intolerance of poor value. And that covers relative value for prices that can be easily bench-marked, or perceived value of less easily bench-marked services.

There are obvious messaging implications of this consumer behaviour, but there are also media implications. Once again this stresses the need for an integrated media campaign to demonstrate value. Broadcast media have a role to engage consumers emotionally and break inertia; print and digital media provide rational support to the value message; and social media provide a comfort blanket of the “wisdom of crowds” reinforcing that buying decision.

That implies higher risks and bigger capital investments. But the rewards are there, even on Blue Monday!

Mike Colling
Managing Director

Tuesday, 3 January 2012

MC&C 2012 Predictions

Bearing in mind prediction is very difficult, especially about the future; who could have foreseen the demise of the News of the World in such torrid circumstances, it’s still worth a crack.

So here are a few pretty safe 2012 predictions - famous last words! Not surprisingly, it’s going to be a big year for TV. London 2012 Olympics, Paralympics, Euro 2012, and the digital switch over are going to make 2012 a particularly interesting year. Adam Crozier is talking down the revenue uplift but I’d have thought that they will add significantly to ITV’s coffers to enable him to make new investments in programme production. Radio and outdoor will do okay again through the Olympics’ effect although community radio will have a devil of a time surviving, however, press will continue to fall as retail continues to feel the strain. Only the Metro is in for an Olympics windfall possibly in the region of £5m.

One thing that won’t be difficult to predict is that there will a lot of happy people at Facebook. The likely $100bn internet public offering will make 1,000 people into millionaires. Thinking about social media, multi social media networks will become more popular. The improved quality of cameras in mobile phones will make the video and visual communication more compelling than just 140 characters. More significantly there will be greater convergence between social media activity and mobile devices and the need for clients’ web sites to be mobile friendly will move from a ‘nice to have’ to an absolute necessity.

Have a great 2012!

Ian Prager, Planning Director

Thursday, 17 November 2011

Keeping things simple not simpler!

I attended the Financial Services Forum annual conference this Monday and found it really inspiring. A lot of what was said, although aimed at financial services clients, can be applied to most businesses.

Dave Trott creative legend who brought us the brilliant Hello Tosh campaign in the 80s talked about making things simple. To him this means talking in the language of the “punter” not the marketer. He is right when he says it’s a mark of a really clever person to take complex ideas and make them simple.

Even those who work in the world of data and analytics can learn a lot from this. This is not dumbing down but helping to formulate effective/workable communication plans based on walking in the audience’s shoes.

The next point to remember is that the marketing communication process is simple. Get noticed (impact) ask for something (communicate) and give reasons why (persuade). In these days where people receive 1,000 to 10,000 messages a day, being noticed is a massive challenge. In media planning circles coverage, frequency and continuity tend to take priority, especially for direct response products, over impact.

So, even the biggest advertiser’s share of voice in the great scheme of things is tiny. Try remembering two advertising messages from yesterday without thinking too long. It isn’t that easy is it? So let’s hear it for Dave the voice of reason in a frantic world.

Ian Prager, Planning Director

Tuesday, 8 November 2011

Overhauling the DM Industry

It was announced last week that the Direct Marketing Association (DMA) has agreed, with government body DEFRA, to implement a range of measures aimed at cutting down on the amount of waste produced by direct mail.

The main change will be to the way in which people are able to opt-out of receiving advertising through their letterboxes. The current system offers consumers three options – the Mail Preference Service, the DMA’s door to door initiative and the Royal Mail equivalent – all of which will be consolidated into one website (although consumers will still need to register twice to stop both addressed and unaddressed advertising mail).

Other commitments include:

• DMA members being asked to produce all direct mail from recyclable paper that has originated from a certified sustainable source, or made from recycled paper

• The development of a carbon calculator for paper direct marketing material by the end of 2013 so that businesses can see the carbon footprint of the DM they produce

• 40% of all DM produced will have to conform to the requirements of a new industry environmental standard that will replace the BSI-endorsed waste standard PAS 2020

The commitments are in the wake of a “responsibility” deal agreed with DEFRA, following increased criticism of so-called “junk-mail” by environmental groups and will be intended by the DMA to stave off the threat of statutory regulation, which could have a highly damaging affect on mail volumes.

In our opinion, measures that will improve the perception of advertising mail in the public’s eye are to be welcomed. They should also lead to improvements in the accuracy of targeting - after all, it is in advertisers’ interest to target just those who are potential customers, rather than opting for blanket coverage. By not dropping to uninterested or actively-opposed households, we should be cutting down on wastage, saving on costs and improving ROI. We already work closely with our clients to make sure we are doing this, using up-to-date and relevant data to target just those most likely to respond. Any further improvements in targeting accuracy created by the opt-out website can only be a good thing for our clients and the industry as a whole.

Kyle Seeley
Senior Planner Buyer