Know-How Exchange : Advertising/PR

First question is how targeted the readership of this magazine is to who you want to reach. Few magazines are well targeted to what the advertiser wants. Wouldn't surprise me if less than 1.3 of potential readers are in your target,

I generally stick to the print circulation numbers, not the pass through numbers. I've been both an advertiser and a magazine editor, and have learned there are some smoke and mirrors on the pass through quantities. But if they print and mail out 1.5MM copies, then that is a pretty safe number.

You say it is easy redemption process, but it sounds like they have to download an app to get these. That by itself will stop a lot of people from doing it (it would stop me).

And what is the real value to these $50 savings? Saving $50 off future purchases is not worth as much as getting $50 in cash. Depends on these future purchase - how desirable the products are, how the price with discount compares to other places they can buy it, etc.

So my guess would be to take 1.5MM and divide by say 1/3 as potential targeted readers, then multiply by a low conversion rate due to the challenges of redeeming and perceived low value of the offer. I would expect hundreds to single digit thousands of responses.

Of course, lots of guesses here, so I could be way off. If you could provide guidance on some of my questions, that may help get the number a little more accurate.

My gut reaction upon reading the initial message was 0.2-0.4% of published circulation, so my guess would be in the 5,000 range.

$50 in coupons for future purchase isn't nearly as attractive as $5.00 cash rebate. I'd be skeptical that people would download an app and redeem a bunch of coupons (adding more cash of their own) in any large numbers.

What's this based on? Years of experience with all kinds of offers -- including FMCG, H&BA, food/drug/mass products across a range of categories. Nothing scientific. Just educated guess.

Does the text link send a coupon to the customer's phone, which then can use at PoS? Or do they have to complete a rebate form (via app or via texting) after the sale? If the former, then if you assume that targeted customers both want the product and have comfort in texting, then your 0.3% is a good guess (unclear how many magazines have extra set of eyeballs, and if people waiting in doctor's office are looking for coupons, for example). If the latter, then you likely have a lower redemption rate - since there's 2 more steps involved. If, however, the product that's being rebated is a well-known product, then I'd expect numbers to be much higher - since the deal will be well-received. If it's an unknown beauty product, then perhaps less so with people who have strong brand allegiance.

Hello Peter:

Start by benchmarking how other rebates performed on this brand in the past, then adjust the redemption rate based on the relative offer strength and some of the factors that follow:

While that seems like a lot of effort to get a $2-3 rebate, the fact that you have a fairly strong brand, 75% ACV, it's a totally free after rebate offer and there are additional incentives available as well may all lift the redemption rate

I wouldn't necessarily dismiss the pass-along readership - especially when it's not a physical 'cut out the coupon/rebate' offer, which would have limited the offer to one user. However there are more considerations...

For example, while I'm assuming that the magazine is relatively targeted, I'd also factor in the size of the ad/offer and placement (i.e., Where is it in the magazine?, Is it next to relevant content?, etc.) as these could impact noticability/use.

For example, if it's toward that back of the magazine, someone waiting for an appointment a few minutes may not get to the end of the magazine - so while they're another reader, they never saw your ad.

Also consider whether the offer:
- can be spread virally (can people email it to others or otherwise redistribute it?)
- will be promoted via social media or other channels
- will be featured in store (on displays, etc.)

Good luck!

A crowd-sourced average estimate is more likely to be an accurate predictor than any single guess. Looking forward to the "real" answer when you have it.