Newspaper Value Proposition

The Value of Newspaper Media

It Begins With You

What are your challenges?

What are your opportunities?

How can we help?

Today’s Challenges: A Perfect Storm

Channel proliferation

Importance of word-of-mouth

Audience fragmentation Intense accountability

Ad avoidance Blinding clutter

Today’s Challenges: Channel Proliferation

From 3 TV networks to 100+ channels

From 18,000 to 45,000 magazine titles

From 18 to 40+ local radio stations

From 0 to 20+ million internet sites

From 3 TV networks to 100+ channels

From 18,000 to 45,000 magazine titles

From 18 to 40+ local radio stations

From 0 to 20+ million internet sites

Today’s Challenges: An Opt-Out World

Channel surfingCommercial-free programming

(i.e., HBO, PBS)

DVRsVideo-on-demand

Satellite radioNational “Do Not Call” listWeb-firewalls and blockers

“I need engagement! I need ROI! I need Impact! I have no budget!”

Charting a New Course

• Engage consumers when and where they are actively seeking advertising

• Leverage the viral power of word-of-mouth

• Influence people at the moment of decision

The Value of Newspaper Media:

Opt-In Advertising

Where the advertising is a destination, not a distraction.

Don’t Just Take Our Word For It

MORIHow America Shops & Spends 2005

Power User 2004

Yankelovich Research 2004

MRI Spring 2005

Scarborough ResearchEngagement Study 2006

The Media Audit 2005

Nielsen/NetRatings 2005

Nielsen/NetRatings 2006

Ads are an integral and desired part of the content

of newspaper media

“When I want a new car, I sit and wait for a car commercial on TV!”

Newspaper Media Is Accessible Where And When The Consumer

Wants

Reaching ConsumersWhen and Where They Want

“Newspapers have broadened their reach by growing their audience’s news consumption

from a print-only readership to an online edition, knowing that internet savvy users are sometimes

only consuming news online.”

Charles Buchwalter, VP Client Analytics, Nielsen/NetRatings

Newspaper Website Visitors

• In March 2006, newspaper website visits reached an all time high of 57 million users.

• 33% increase over the same time last year.

• 38% of all active internet users visited newspaper websites in March 2006.

Source: Nielsen//NetRatings, Q1 2006

Profile of an Online Newspaper User

– 91 percent recently shopped

online

– 89 percent recently bought

online

– 71 percent are online daily

@ work

– 64 percent recently checked

classifieds online

– 68 percent have home

broadband

Mean Age: 3952% College Educated

HH Income: $73,000

Hours Online/Week: 19

How America Shops & Spends, MORI Research 2005

Newspaper Web Sites Extend Reach of Key Demographics

The Desert Morning News ( Salt Lake City) 48.9 %

Daily Herald ( Arlington Heights, Ill.) 46.3 %

Tribune-Review ( Pittsburgh) 42.8 %

The Tampa Tribune 36.7 %

The Boston Globe 30.8 %

The Hartford ( Conn.) Courant 29.7 %

The Star-Ledger ( Newark) 26.8 %

The San Diego Union-Tribune 26.0 %

The Salt Lake Tribune 25.6 %

The Seattle Times 25.1 %

Percent* Increase in 25-34 Demographic

Newspaper

Source: Newspaper Audience Database/Scarborough Research

Based on net reach of 5 weekday/1 Sunday print readership vs. 5 weekday/1 Sunday print and 30-day Web usage

Charting a New Course

Engage consumers when and where they are actively seeking advertising

• Leverage the viral power of word-of-mouth

• Influence people at the moment of decision

Advocates In Action

Talk to family/ friends about items in the paper* 60%

Show circulars/flyers to family/friends** 75%

Give circulars/flyers to family/friends** 68%

Scarborough Research, Engagement Study 2006

*Respondents who read one or more newspapers in last 7 days)**Respondents familiar with ad circulars or flyers

“How do I become an influential?”

Charting a New Course

Engage consumers when and where they are actively seeking advertising

Leverage the viral power of word-of-mouth

• Influence people at the moment of decision

MORI Research 2005 “How America Shops & Spends”

Finding:

Almost one-third of “non-readers”

actually used the newspaper in

some way in the past 7 days!

Some “Non-readers” are “Users”

Q. “Even though you did not read a printed newspaper in the past 7 days, have you possibly used a printed newspaper in any of the following ways during the past week?”

"Non-Readers" Usage of Newspaper in past week (%)Checked sales in local stores 25Compare prices for an item 16Read a cartoon or comic strip 14Use a coupon 13Check weather forecast 12Used a classified ad 12Check sport scores 10Check horoscope 9Checked local TV listings 9Check movie listings 8Check local entertainment options such as concert/show 7Check stock prices 5Use a recipe 4

Net = 32%

Scarborough Research 2006 Engagement Study

Readers + Users

The Printed Newspaper

All Adults, Past 7 Days

Readers 75%

“Users” 8%

Total 83%

Not included:

only using newspaper websites

only reading specialized publications

Scarborough Research 2006 Engagement Study

Cases In Point• Newspaper Advertising improves awareness of fast

food product launch 28% vs. TV alone.• Store traffic increases for furniture retailer by 16%

after newspaper campaign. Awareness increased to 54% vs. 39% for Direct mail.

• CPG advertiser improves sales results after newspaper campaign by 15%

• Shoe retailer sees 33% lift in shopping rate with newspaper program.

• Telecom sees loyalty churn reduced by double digits after newspaper campaign.

Specialty Store ROP Test

• 8, 1/2 page color ads over 6 weeks (Jul/Aug/Sept ‘05).

• 22% more new customers in the ad stores during the test than in control stores.

• 44% more units sold and 44% higher average $ sale in ad stores

– 2.6 units per transaction for ad aware customers vs 1.8 for other customers.

– $98.00 average sale for ad-aware customers vs $68.00 average sale for other customers.

• No drain in overall margin as a result of offers.

– $1.00 higher average retail price per unit for ad-aware customers.

Charting a New Course

Engage consumers when and where they are actively seeking advertising

Leverage the viral power of word-of-mouth

Influence people at the moment of decision

The Value of Newspaper Media:

Opt-In Advertising

Where the advertising is a destination, not a distraction.