Meredith Corporation’s magazine division is now offering marketers a “guaranteed increase in sales for their advertising investment in Meredith magazines.” The new product unveiled Monday (7/25) is called The Meredith Engagement Dividend.
“This is truly groundbreaking within the magazine media industry. In an era of increased expectations for accountability, Meredith magazines are delivering sales increases and improved return on investment (ROI) across the board. We believe The Meredith Engagement Dividend will significantly change how marketers measure and evaluate performance among magazine brands,” said Tom Harty, President, Meredith National Media Group. (That’s the magazine division. The TV division is called Local Media Group.)
The Nielsen Company plays a big role in this new guarantee. It is based on analytics from Nielsen’s Homescan service, following a study that Nielsen conducted for Meredith. Using analytics from Homescan and Meredith’s database of 85 million consumers for its leading magazines, Meredith and Nielsen measured how advertisers in categories such as beauty, household goods, OTC drugs, and food were able to increase their product sales an average of 10 percent.
The research study was conducted over a 52-week period measuring ROI for higher frequency advertising campaigns that ran in Meredith magazines during 2009 and 2010. In addition to increasing product sales the research also revealed that among product purchases for several brands, as many as two-thirds of buyers were new purchasers of the brand.
According to Randall Beard, Global Head of Advertiser Solutions for Nielsen, most of the past research done for magazines tended to focus on areas such as purchase intent or brand engagement but not on determining a specific sales ROI. “This is a unique breakthrough in our how industry leading Nielsen information matched with the demographic, psychographic, and buying behavior data from leading Meredith magazine brands can prove the sales value of magazine advertising for marketers,” he said in the announcement released by Meredith.
“The ROI for advertiser investment was significant,” says Richard Porter, President, Media Sales, Meredith National Media Group. “As marketers look to invest their dollars wisely in today’s highly competitive environment, improved sales performance is exactly what they want to see on their bottom line and we will guarantee them results.”
In order for advertisers to participate in The Meredith Engagement Dividend© utilizing Nielsen analytics, marketers must commit to a minimum level of advertising impressions over a 12-month period across several Meredith titles. The commitment is based on category, with minimum thresholds for frequency and can only be applied for marketers with national advertising schedules.
“Meredith will work with a limited number of partners this year as we bring the product to market,” noted Porter.
RBR-TVBR observation: Meredith is certainly putting its money where its mouth is. The company had already been doing better than most magazine publishers during the recent advertising recession, due to its focus on titles oriented to women.