Planning for Profit

Newsworks

 

Benchmarketing’s meta-analysis of 684 econometric models conducted for clients between 2011 and 2017, shows that brands are losing out on £3 billion of potential campaign profit by underinvesting in newsbrands. In an industry first, Benchmarketing were able to demonstrate that not all digital is equal when it comes to effective impact on profits. The contribution to overall campaign profit return on investment of digital newsbrands was identified separately from the amorphous mass of digital display. Results showed that, even at current modest levels of investment – between 0.8% and 4.1% of total media budgets, depending on category – digital newsbrands deliver strong profit returns. Boosting investment to the optimum level across categories would result in higher profit levels of as much as £300 million. Echoing recent Ebiquity studies for other UK trade bodies, Benchmarketing found that cuts to print newsbrand budgets had reduced overall campaign PROI. If print newsbrands’ share was re-instated at the optimal level for the category (as has recently been the case with Tesco), overall campaign profit return would more than double.

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