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The quality of the Advertising impact in

the Premium and Luxury campaigns

- FACTOR

Starting point

Consumers are deeply engaged in the new communications era: they

have access to more channels, more devices and “voices” at all times

and places.

Advertisers have to their avail more media, formats and ways to connect

with consumers. They can share their consumer journey thanks to

tecnhology and new touch points.

Media must anticipate change, react to it and become the best bridge

between the advertiser and the consumer, the official prescriber, the source

of information and reference in certain issues, our fields of expertise.

Our hypothesis

Given the current situation and the less than ideal economic times,

“efficiency” may sometimes be mistaken for “profitability” and we

forget the enormous power that media has on the message.

As a result, certain Premium and Luxury brands might be very

favorably communicated, or quite the contrary, when the media of

choice and the timing are not suitable.

Main Goals

This study focusses on “HOW” advertising has an impact on

consumers, rather than on “HOW MUCH” impact.

This is particularly applicable to luxury goods and premium

products campaign, when the buyer/consumer expects media

and message to be aligned in terms of tone, focus, setting and

timing for the connection to be fully effective.

Our main objective is to quantify the quality of the advertising

impact of traditional Media, focussing on these specific campaigns.

Methodology

An initial workshop to obtain a new insight on quality beyond the vision

of the commercial and marketing teams, by engaging a multidisciplinary

group (journalists, stylists, a sociologist…)

Through this session, we identified the real concept of receiving a high

quality impact from traditional media, considering not only the most

obvious and rational aspects, but also the emotional ones.

Based on this workshop, a 30 questions online questionnaire (18 min

aprox) was defined and shared with 1.500 consumers of all media in

March 2014 (on national basis).

WOMEN

Fashion &

Beauty

Magazines/

Websites

LIFESTYLE

& MEN

Magazines/

Websites

TRAVEL

Magazines

& Websites

DECORATION

Magazines

& Websites

In order to analyze the premium and luxury sectors, we considered interviewees

that had purchased and read “Specialized Magazines” (both high-end and mass-

market titles) in any format over the last 3 months 2014.

These 4 categories were particularly considered.

Methodology

1.- The Audience

Definition & Media habits

45%

28%

28% Yes

Along with other person

No

19%

32% 34%

15%

Secondaryeducation

Highereducation

College orEngineering

degree

MastersDegree

20%

31% 28%

21% 18 - 29 y.o.

30 - 39 y.o.

40 - 49 y.o.

50 - 65 y.o.

Sex Age

Level of studies

53%

47% Women

Men

Base: Total Sample of 1.500 people

Current work situation

14%

63%

23% I´m self employed

I´m employed

I´m not working

30%

17%

24% 22%

7%

Big Urbanarea (>1

million inhab.)

City (500.000- 1 milion)

Small cities(100.000 -500.000)

Big Towns(10.000 -100.000)

Rural areas(<10.000inhab.)

Habitat

Main income earner at home

8%

65%

42%

20%

4% 3%

They livealone

With theircouple

With children With parents With friend Otherrelatives

Type of family

Demographic variables

This sample represents the total spanish population who are readers of specialized magazines (EGM 3º acum 14)

92% read both print and digital magazines

and spend 3h/week on each format.

86% buy print magazines at least once a

quarter.

25% are subscribed to digital magazines,

the rest read non-exclusive online contents.

94% read print and digital newspapers.

80% buy the newspaper at least once a

quarter and 20% have a subscription.

They spend more time reading the digital

newspaper (4h /week) vs the print version

(3h)

MAGAZINES NEWSPAPERS

9

TV is the mass media par excellence. However,

audiovisual consumption online is growing

at 30% monthly.

32% own a SmartTV (20% connect to the

internet weekly).

They connect to the internet over multiple

devices : 9 out of 10 via smartphone and 6

out of 10 via tablet.

94% shop online, 92% access social

networks, 88% bank online and 58%

upload contents to blogs or personal

websites.

TELEVISION INTERNET

Media Habits


25%

28%

64%

89%

99%

6%

4%

5%

4%

3%

2%

66%

65%

29%

10%

1%

eBook

Smart TV

Tablet

Smartphone

Computer

Monthly Quarterly Less Frequency Never

48%

53%

83%

89%

10%

31%

5%

3%

6%

10%

2%

35%

6%

10%

8%

Upload contents

Shop online

Online banking

Social Networks


What devices do you use to access online contents? How frequently do you do the following on the

internet?

How frequently do you buy?

27%

29%

67%

68%

11%

13%

13%

17%

10%

10%

6%

7%

51%

49%

14%

8%

Online Music

Online movies

Print newspapers

Print Magazines


10


Media Habits

28%

53%

53%

57%

64%

66%

To keep abreast of currentevents

To kill time

To unwind

To learn

To be informed about myfields of interest

To find inspiration

Magazines

89%

21%

17%

53%

68%

17%

Newspapers

58%

66%

70%

29%

42%

22%

Television

People use Magazines as a source of inspiration, Newspapers as a source

of information and TV to unplug.


Main Findings

Motivation to contact these media in any format:

12%

29%

27%

47%

40%

7%

19%

28%

23%

27%

57%

5%

39%

4%

9%

22%

32%

28%

Watching TV Reading a Newspaper Listening to the radio Reading a Magazine

29%

5%

9%

28%

36%

38%

Any other task at the same time

Read Magazines (print or digital)

Read Newspaper (print or digital)

Other tasks unrelated to media

Play around with my smartphone

Listen to the radio

Watch a TV programme

12

Their undivided attention varies from one media to another.


Main Findings

What other tasks do you do while contacting these Media?

NOTA outdoor

4%

6%

7%

15%

15%

23%

30%

It interrumpts what I care about

I don´t like it, it bothers me

It is invisible to me

I like it if it adds any value

It is part of the content

It helps me on what to buy

It inspires me, I like it

TV Outdoor

6%

8%

18%

34%

18%

8%

8%

Newspapers

26%

16%

7%

12%

14%

11%

14%

19%

22%

16%

11%

11%

12%

9%

6%

11%

27%

11%

18%

7%

10%

General Internet

13

Magazines

Advertising is valued the most in Magazines, both as a source of inspiration and for shopping ideas.


Main Findings

What statement best summarizes what Advertising represents in?

36%

7%

15%

13%

9%

15%

16%

23%

16%

12%

36%

28%

17%

24%

29%

30%

16%

15%

20%

26%

28%

29%

33%

34%

I never do any of that

Become a follower of the brandon social networks

Discuss the Ad, product or brandwith other people

I plan to buy the product or anyother of the same brand

Participate in competitions orpromotions

I visit the store or the online shop

I search for further information

Go to the brand´s website

27%

12%

18%

17%

20%

17%

25%

26%

15%

29%

20%

23%

36%

23%

39%

47%

TV Outdoor Newspapers Internet

14

Magazines

Print & digital Magazines are the media that moves to action the most in connection with brands.


Main Findings

After seeing an Ad you liked on a given media, have you ever done any of the following?

Key Learnings about the Audience

We are reaching to multimedia, multichannel consumers.

Consumers can recognize the role played by each media in the

communication of contents and advertising.

They position print & digital magazines as their source of inspiration;

the media they pay more attention to and where advertising is most

effective in order to move them to action towards brands and purchasing.

Magazines, as a media, are “engaging”.

2.- The Real value of Magazines

Advertising is a crucial “contact point” between brand and consumer.

In the Luxury and Premium universe, advertising is even more

important. It is a key part of the brand experience, together with the

store location, the client service, the quality of the product, the story of

the company, the packaging, the designer´s talent, the raw materials, ...

Magazines (print & digital) are considered a valuable and engaging

media.

Is it possible to measure the real value of Magazines for luxury brands

in comparison with other traditional media?

Magazines and Advertising

What is a high-quality impact?

How can it be defined?

What variables does it include?

- FACTOR

1) QUALITY

Inherent quality

of the media

2) INSPIRATION

From the media towards

its audience

3)PRESCRIPTION

Based in media

authority and expertise

4)INTENTION

TO BUY

Actions linked to brand

commitment

Affinity between the

media and the brands.

Segmentation

Identification

Tips and ideas

More enticing products

Advertising adds value

Paper/production items

Contents/ visual images

Cover/ Contributors

Celebrities

Purchase consideration

Look for further info

about the brand and

products

Visit the store

Recommend the brand

Participate in contests

and promotions

Media reliability

Incentive to discuss

Greater attention

Trustworthy

Authority in specific

areas

Accurancy….


A quality impact is composed by 4 variables:

- FACTOR

The weigh of each variable is different because people are not really aware of how

much influence Advertising have on them.

That is why they give “Prescription” and “Buying Intention” lower scores.

QUALITY

35%

INSPIRATION

35%

PRESCRIPTION

15%

BUYING INT.

15%


= 100 % - FACTOR

37

25

21

10 7

QUALITY

Magazines

Newspapers

TV

General

internet

Outdoor

42

11 24

16 7

INSPIRATION

Magazines

Newspapers

TV

General

internet

Outdoor

23

31 22

18 6

PRESCRIPTION

Magazines

Newspapers

TV

General

internet

Outdoor

21

12

24

32

11

INTENTION TO BUY

Magazines

Newspapers

TV

General

internet

Outdoor

35% 35%

15% 15%

Quality and Inspiration are values they directly associate to Magazines.


7

17

19

22

34

0 10 20 30 40

Outdoor

General Internet

Newspapers (Print & Digital)

Television

Magazines (Print&Digital)

As a result of weighting the 4 variables and their

presence in each media we obtain a total ranking.

1,5

1,7

2

4,8


% People choosing which Media is the best to create a qualitative impact: Magazines are X times

more qualitative than

other media:

- FACTOR

19%

24%

29%

33%

41%

38%

28%

33%

32%

33%

43%

49%

39%

35%

26%

0% 20% 40% 60% 80% 100%

Outdoor

General Internet

Newspapers…

Television

Magazines…

A lot/ Quite Some Little/Nothing

Attention degree to Advertising Motivation to purchase an advertised product

16%

29%

22%

33%

37%

30%

31%

30%

38%

34%

54%

40%

48%

29%

30%

0% 20% 40% 60% 80% 100%

A lot/ Quite Some Little/Nothing

In Premium and Luxury campaigns, people pay most attention to

advertising in print & digital magazines.

It is the media which motivates to purchase in a higher proportion.


Main Findings

The Real value of “High-end Magazines”

100% of the sample read Specialized Magazines of the mentioned categories

(Women, Lifestyle, Travel and Decoration), but…

58% read “high-end” titles

where the four variables are

particularly looked after

42% read “mass market”

titles, segmented by subject of

interest, rather than target

audiences, focus, photography,

values…

25

Let´s see the different perceptions and behaviour of consumers of

these 2 types of “Specialized Magazines”.

Not all Magazines and their websites can offer the same editorial context

or surround the product of the desired values.


With regards to premium & luxury advertising, high-end magazines

consumers show a different attitude and opinion than mass-market readers.

67

50 45

50

30 25

0

10

20

30

40

50

60

70

80

Advertising should be

placed in an appropiate

context

Pay more attention to

advertising

Real purchases after

watching advertising

High-end Magazines/Sites readers

Mass-Market Magazines/Sites readers


Main Findings

% People who agrees :

24%

29%

33%

38%

49%

38%

29%

32%

31%

31%

38%

43%

35%

31%

20%

0% 20% 40% 60% 80% 100%

Outdoor

General Internet

Newspapers (print/digital)

Television

Magazines (print/digital)

A lot/Quite Some Little/Nothing

High-End Magazines Readers

12%

17%

23%

26%

30%

38%

26%

33%

33%

36%

50%

57%

44%

41%

35%

0% 20% 40% 60% 80% 100%

Mas- Market Magazines Readers


In attention paid to advertising, Magazines are the leader media for

both groups, althought with important differences in their scores.

Main Findings

41% was the

score to Magazines

for total audience

20%

32%

25%

37%

45%

31%

31%

32%

39%

31%

49%

37%

44%

24%

24%

0% 20% 40% 60% 80% 100%

Outdoor

General internet

Newspapers(print/digital)

Television

Magazines (print/digital)

Many times/Often Sometimes Few times/Never

10%

26%

17%

28%

25%

30%

30%

28%

37%

37%

61%

44%

55%

35%

38%

0% 20% 40% 60% 80% 100%

However, in motivations to purchase, high-end consumers show a clear

preference for Magazines.


Main Findings

High-End Magazines Readers Mas- Market Magazines Readers

37% was the

score to Magazines

for total audience

8

18

18

26

31

7

16

20

20

37

0 5 10 15 20 25 30 35 40

Outdoor

General Internet

Newspapers (Print & Digital)

Television

Magazines (Print&Digital)

Consumers of High-end Mag/Sites Consumers of Mass Market Mag/Sites


The total ranking of Media is headed by Magazines in

both groups , but with different scores:

1,8

1,8

2,3

5,2

Main Findings

High-end consumers

- FACTOR

However, it is concerning that both groups equally think that the natural

setting for a luxury brand may be both a high-end or a mass-market title?

Q- Factor shows that Print &Digital Specialized Magazines are the best

media to ensure the most qualitative impact for total audience and for

magazine readers (both groups).

This result is obviously linked to the best editorial and visual context

which surrounds advertising and the best timing for inspiration and

consumption we can find in Magazines.

Key Learnings about Magazines

Our main concerns

Are we slowly impairing the perception of consumers towards luxury brands,

its codes and values?

If this is so, will consumers be willing to pay the extra price for a luxury good

when the dream surrounding the brand has vanished in the quest for high reach

campaigns, inadequate contexts or aggresive CPT…?

Are we getting consumers used to find luxury brands in unsuitable settings?

Even being the context and timing important facts for them, is it becoming

less relevant for brands in their global communication strategies?

What have we learned from the

Premium and luxury brands should not follow “low-cost” media

strategies because they are definitely taking an enormous risk.

For this specific sector, the Specialized high-end Magazines and their

websites can best provide a high quality advertising impact which has a

clear effect in brand perception as well as in shopping behaviour.

Context and timing are very relevant factors when putting in contact

premium and luxury brands with their consumers.

- FACTOR

Thank you!

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