Advertising in news titles has seen brands enjoy a 10% increase in their return on investment over the last three years, according to a study from news industry trade body Newsworks.
Newsworks calculates what it calls profit return on investment by multiplying the sales revenue from advertising and the profit margin (eg. 10%) of the revenue and then dividing it by the advertising spend with a newsbrand.
This follows on from its 2017 study ‘Planning for Profit’, which found that brands were missing out on £3 billion in profit return on investment by under-investing in news brands.
Jo Allan, CEO of Newsworks, said: “It’s great to see an impressive shift in the last few years, despite the knock-on effect of Covid. If advertisers continue to utilise news brands effectively, their bottom lines will only improve.
“This research offers compelling and tangible evidence for advertisers who are looking to increase profit return on investment and benefit from being in brand-safe, quality environment.”
Both studies were conducted by Benchmarketing, which is part of the Omnicom Media Group, using analysis from between 2011 and 2020.
Sally Dickerson, chief effectiveness officer at Benchmarketing, explained: “This project is unique in assessing news brands’ role in overall campaign effectiveness. With the rise of misinformation, digital news brands offer an attractive brand-safe environment for advertisers. This research proves that they also deliver solid business returns when utilised at the right level.”
Newsworks has also developed a profit calculator for advertisers to work out how to boost their spend in news brands and increase their profit return.
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