The Value of Newspaper Media

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The Value of Newspaper Media
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It Begins With You

• What are your challenges?
• What are your opportunities?
• How can we help?

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Todays Challenges A Perfect Storm
Channel proliferation
Audience fragmentation
Intense accountability
Ad avoidance
Blinding clutter
Importance of word-of-mouth
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Todays 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

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Todays Challenges An Opt-Out World

• Channel surfing
• Commercial-free programming (i.e., HBO, PBS)
• DVRs
• Video-on-demand
• Satellite radio
• National Do Not Call list
• Web-firewalls and blockers

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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

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The Value of Newspaper Media Opt-In Advertising

• Where the advertising is a destination, not a
  distraction.

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Dont Just Take Our Word For It

• MORIHow America Shops Spends 2005Power User
  2004
• Millward Brown Media Engagement Study 2005
• Yankelovich Research 2004
• MRI Spring 2005
• Scarborough ResearchEngagement Study 2006
• The Media Audit 2005
• Nielsen/NetRatings 2005

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• Ads are an integral and desired part of the
  content of newspaper media

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Newspaper Media Is Accessible Where And When The
Consumer Wants
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Reaching ConsumersWhen and Where They Want
Newspapers have broadened their reach by
growing their audiences 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
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Newspaper Website Visitors

• In November 2005, newspaper website visits
  reached an all time high of 55 million users.
• 30 increase over the same time last year.
• 30 of all active internet users visited
  newspaper websites in November 2005.

Nielsen/NetRatings 2005
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Profile of an Online Newspaper User

• 84 recently shopped online
• 82 recently bought online
• 69 are online daily at work
• 63 check news daily
• 57 have home broadband

Mean Age 3854 College Educated HH Income
70,000 Hours Online/Week 19
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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

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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

Respondents who read one or more newspapers in
last 7 days) Respondents familiar with ad
circulars or flyers
Scarborough Research, Engagement Study 2006
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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

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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.

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Cooking Retailer Test
50 market, 3-week newspaper test Improved
competitive imagery and intent to visit versus
control group Drove above normal store
traffic Campaign offer produced 50 more
inquiries than expected Sales had a 1.4 million
lift among positive performing stores
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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.

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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

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The Value of Newspaper Media Opt-In Advertising
Where the advertising is a destination, not a
distraction.