Not investing enough in news brands could have negative results

Increasing investment in news brands versus other channels delivers the greatest gains to the bottom line, according to research from Newsworks.

Why it matters

News brands work effectively alongside other media, but can work harder. That is demonstrated in Newsworks’ figures showing that increasing investment from low levels boosted campaign PROI by 60% for print news brands and 62% for digital news brands. The latter figure is in stark contrast to general online display – what Newsworks’ Denise Turner calls “the run of the internet” – where boosting investment actually reduces PROI by 23%.

Takeaways 

• Over the last three years, brands have enjoyed a 10% profit boost by investing in news brands: £268m between 2017-2020 has the potential to become £1bn by 2025.
• In terms of broad categories that can benefit, the research highlights Leisure & Pleasure (including supermarkets), Shiny New Things (non-grocery retail) and Grown-up Stuff (finance and motors). 

Key quote

“There’s a certain proportion of investments that should go into news brands to deliver optimum profit to the bottom line. It’s not profit that comes back from news brands, it’s profit to the whole bottom line from advertising investment” – Denise Turner, Director of Research and Insight, Newsworks, speaking at the Festival of Marketing. 

Newsworks’ research is based on a decade (2011-2020) of effectiveness data and a meta analysis of 1012 econometric models. The trade organisation has also devised a profit calculator to enable advertisers to see how to optimise spend in news brands across specific categories and increase their campaign profit return.

Sourced from Newsworks