APA Advantage Study

1
APA Advantage Study

• Brief overview of the aggregate findings Non -
  Members version
• Automotive Sector
• September 2007

2
Programme objectives

• The primary research objectives of the Advantage
  study were defined as
• To establish a means of quantifying the effect of
  customer magazines
• To provide an industry standard for benchmarking
• To build return on investment (ROI) evidence for
  the marketing community
• In addition
• To provide comparisons with the effectiveness of
  other media
• To provide readership and demographic data

3
Research Methodology

• For each title involved a magazine and control
  sample are interviewed
• Magazine 200 client Customers who received the
  customer magazine
• Control 100 Client Customers who do not
  receive the customer magazine
• The magazine sample is asked a ten minute
  questionnaire and the Control sample a five
  minute questionnaire
• All interviewing is computer aided Telephone
  interviewing (CATI)
• Fieldwork starts around 2 - 3 weeks after the
  magazine mailing date

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We interview exposed and unexposed groups to
determine the customer magazine effect
The magazine and control sample split
Customers of the brand
Magazine Cell
Control Cell
Magazine - Control Customer Magazine Effect
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Categories Covered by the initial 61 titles
Results released so far are based on 61 titles
Since this cut of the data more titles have taken
part
Automotive (15) Retail (8) Finance
(13) Transport/Travel/Leisure (6) IT (4) Business
to Business (6) Other (9)
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Across the 61 titles to date, customers have
clearly spent some time with the magazines and
have read much of their content
7
Automotive magazines tend to hold readers
attention for longer than other sectors with an
average reading length of 30 minutes
How long spent in total looking at or reading the
magazine?
How much did you read of the last ____ magazine?
Study Average
AutomotiveAverage
Study Average
AutomotiveAverage
All of it Most of it About half A little None of
it
12 21 24 30 12
Under 5 mins 5 - 10 mins 10 - 20 mins 20 - 30
mins 30 - 1hr 1 - 2 hrs More than 2 hrs
14 20 20 16 15 8 4
57
54
(10550)
24 mins (10550)
Average
30 mins (2771)
(2771)
8
The majority of automotive respondents keep hold
of a magazine for a week or more and most access
it 1-2 times, picking up the magazine, in
general, more than the study average
How long do you usually keep an issue of the
magazine?
How many times do you usually pick up the
magazine by the time you have finished with it?
StudyAverage
AutomotiveAverage
StudyAverage
AutomotiveAverage
0 1 - 2 3 - 4 5 - 9 10 - 14 15 or more
16 45 24 8 2 2
About a day A few days One to two weeks A
month Over a month
14 18 30 16 21
59
67
Base
(10550)
(2771)
Base
(10550)
(2771)
9
This engagement with the magazines has a positive
impact on customers relationships with the
brands, as witnessed in the Brand Equity Pyramids
10
Brand Equity Pyramids
Affinity
Do you have a good knowledge of the brand and
what it offers and higher than average
consideration?
Appeal
Does it offer something more than competitors?
Acceptance
Would you not reject the brand?
Awareness
Are you aware of the brand?
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The brands in the study have stronger Appeal and
Affinity amongst customers who are exposed to the
magazines
CustomerMagazine effect
Magazine
Control
Affinity
Appeal
Acceptance
Awareness
Base 7 titles low base size
12
Appeal and Affinity are also stronger amongst
customers who are exposed to the magazines in the
Automotive Sector
h
Automotive sector
Customer magazine effect
Magazine
Control
Affinity
Appeal
Acceptance
Awareness
Base 7 titles - Not enough Automotive studies
conducted using the new style questions,
therefore data from old style of questioning
included.
13
...and those exposed to the magazines are likely
to spend a greater proportion of their category
expenditure on that brand
14
The Customer loyalty score - the probability that
the customer will choose you rather than
competitors at next purchase occasion
This is derived from Millward Brown
validated purchase consideration scale
15
It has been empirically shown that the CL score
predicts actual buying behaviour very accurately
40
Correlation 0.96
30
Share of Expenditure From Panel Data
20
10
0
40
0
10
20
30
Consumer Loyalty Score (CL)
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The Customer Loyalty Score the probability that
the customer will choose you rather than
competitors at next purchase occasion
Those who receive customer magazines (automotive
and in general) are more likely to stay loyal to
the brands, choosing them at the next purchase
occasion
Sector averages
Automotive Magazine Control 60 55
Magazine Control 53 48
Study average
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Additionally, there are impressive levels of
active response to short term calls to action
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Around a third of readers of Automotive
titlestake some form of action having read the
magazine.
Level of active response
Study Average Automotive sector average Talked
about BRAND with a friend or colleague Purchased
or renewed BRANDS club membership Visited the
BRANDs dealer Visited the website Requested a
brochure or test drive Entered a
competition Phoned the call centre
Best performer
Base Magazine sample
(2771)
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Summary

• The research shows that automotive customer
  magazines have a positive impact on consumer
  relationships with a brand, resulting in stronger
  loyalty. They are also, evidently, an excellent
  method of getting closer to consumers by
  communicating new products and services given the
  amount of time that recipients spend with the
  magazine.
• At 30 minutes, the average reading length of
  automotive magazines is longer than the study
  average for all sectors
• As well as being more extensively read,
  automotive magazines are kept for longer and
  picked up on more occasions
• Automotive magazines additionally clearly drive
  an emotional connection with the brand, building
  levels of Appeal and Affinity
• They also effectively result in an active
  consumer response, often encouraging word of
  mouth about a brand or other enquires into a
  brand such as visiting a website or requesting a
  test drive