A case for convergence marketing and how brands can make lasting brand impressions through...

A case for convergence marketing and how brands can make lasting brand impressions through integrated marketing Content Context and Communication October 18, 2012

Index PAGE 3 5 7 9 11 16 26 27 28 Todays Approach Why Hearst? The Power of Partnership Chron.com & Direct Energy Case Studies Custom Content Ideas Trends Our Digital Agency Content Marketing Capabilities 2

Ads P.R. SocialEmail Search Events DEATH BY SILOS 3 Todays Approach

3000 Branded messages a day that customers passively receive through a wide variety of diverse media. Why the siloed approach wont work 4 Convergence Of content, search, and social in order to create a strong mechanism for inbound marketing and lead nurturing. Native Advertising will be the norm. Conversations Happening online start with traditional media. Online thus becomes a validator for products and services and social, search and content create the necessary bridges.

5 Why Hearst? Hearst Corporation is one of the nation's largest diversified media companies. Our major interests include magazine, newspaper and business publishing, cable networks, television and radio broadcasting, internet businesses, TV production and distribution, newspaper features distribution and real estate.

6 As a media pioneer, Hearst is at the forefront of developments, experimentation, and best- practices in ever-evolving digital platforms. Ownership of 15 newspapers Publisher of 20 U.S. magazine titles and more than 300 international editionsthe largest global publisher of monthly magazines Entertainment/syndication, broadcasting, interactive media, business media, and more. 4 major dailies in the Texas market focusing on both the general and Hispanic markets We own Houston Our Texas Footprint Why Hearst?

7 Covering Houstons ups and downs for the past 125 years, The Houston Chronicle and Chron.com employ more journalists and deliver more localized content than any other local media source in Houston. This enables us to marry the art of editorial content creation with the science of real time insights and measurement. channels of content speak to topical points of interest million readers million total circulation million unique visitors* brand advertisers per year reach: print, web, mobile, tablet, social, experiential *Source: Omniture, July 2012 10 11+ 3700+ 360 2.2 1.1 + +

ROI-focused, tailored approaches that ensure maximum brand engagement Houston Chronicle Media Group 8 Combined power of print, web, mobile and social to reach the right audiences at the right time with the right message. Ability to scale up or down depending on client needs, budgets, and timelines. Custom Solutions Integrated Media Scalable Approach

9 Sponsorship Opportunities Develop a targeted path to new consumers by speaking to their interest points, and seamlessly align Direct Energys message with this content to create awareness for your brand attributes. To Follow: Content Spotlight, FuelFix: An overview of Chron.coms oil, gas, and energy industry hub. Content Spotlight, HealthZone: The Houston Chronicles newest resource for all things health and wellness related. Custom Content Features: Weekly series of custom content features that relate to Direct Energy Protects message. Program flight: November-December 2012. Houston Lights Up the Holidays: User-generated photo gallery of Houston exterior and interior holiday lights. Program flight: December 2012. Promotional Suite: A custom suite of promotional drivers will direct traffic to your campaigns. Houston Goes Green in 2013: Integrated digital campaign that blends relevant editorial with custom content, sponsor links, and interactive user experiences in a custom destination. Plus: high-impact monthly media campaigns, a Facebook engagement component, and experiential Earth Day events. Program flight: One year. Chron.com and Direct Energy + +

10 Opportunity Benefit Making the Most of Chron.com & Hearst Newspapers Leverage the mass reach of Chron.com and our partner sites to reach a significant target of consumers with purchase power, and keep Direct Energy at the forefront of their minds. Media campaigns will be customized and tailored to relevant site sections to make the most out of your banner presence, driving qualified consumers to your website. Houston Chronicle Media Group will devote extensive resources to your campaign to ensure smooth process and delivery, efficiency, and performance. Custom content including native copywriting with an emphasis on SEO. We will use our research capabilities, consumer understanding, and content knowledge to create interesting and optimized content. Assured Visibility: Our premium set of promotions blend into the Chron.com experience and drive to your content. Fostering community. Your campaigns are designed to not only build awareness, but get consumers talking about your brand. Their experience with your content, social conversation, and engagement opportunities on Chron.com are designed to cultivate dialogue and loyalty. Chron.com and Direct Energy

Case Study: FuelFix [B2B Industry Leader] 11 We Practice What We Preach Case Study: HealthZone [Consumer Focus]

12 Challenge Create a one of a kind Energy and O&G hub that serves as a day to day resource for industry insiders. Solution FuelFix - 1.2 mm page views As the Energy Capital of the world, Houston is the leader in new technologies for oil and gas production, alternative energy development, and energy conservation. Chron.com and Houston Chronicle readers count on FuelFix for the latest news and breakthroughs impacting the industry. M/F: 71.4%; 28.6% (Male Index: 144) HH Income $100,000+: 36.7% (Index: 147) Post-graduate degree: 12.5% (Index: 137) Own residence: 78.5% (Index: 112) Integrated Media FuelFix first launched as a digital only product in April of 2010, covering the Deepwater Horizon oil spill. Its overwhelming popularity led to its extension into print. FuelFix now appears in the Business section of The Houston Chronicle every Wednesday-Friday. Case Study: FuelFix Sources: Omniture, August 2012; Scarborough Sept. 2010-August 2011 Chron.com sites visited in the past 30 days: FuelFix.com

13 Premier Sponsor - Statoil Statoil is an international energy company with operations in thirty-six countries. As the premiere sponsor, Statoil receives a half-page, full color adjacency to this section once per month. Digitally, Statoil was so pleased with the success of their targeted media campaign, they extended their online commitment from one month to three, and increased their spend by 233%! Statoil has confirmed a significant lift in their brand recognition because of the campaign, and have also shared the successful strategy company-wide within their newsletter. Stat Oil Target 1. Visit FuelFix and encounter the Statoil brand 2. Return to FuelFix and be exposed the Statoil again 3. Read valuable content and relate it to Statoil 4. Share FuelFix with others thereby exposing Statoil to new targets Case Study: FuelFix

14 Challenge With 77% of our readers having used a hospital in the past three years there is an inherent interest in Health Content. Of the top 20 employers in Houston, 6 are medical institutions. Houston Chronicle wants to create the premier B2C and B2B health destination. Solution HealthZone on Chron.com - Launching October 28, 2012 Launching both in print and online on Chron.com, Healthzone will serve as the go-to resource for all things healthcare with participation from the healthcare community. Editorial Highlights October: Heart health, hearing breakthroughs, infant nutrition November: Guide to using defibrillators, day in the life of a trauma surgeon December: Managing stress. January: New Year exercise and diet tips, profile on running, and which medical test individuals should take at what ages. 2 Case Study: HealthZone

15 Memorial Hermann and St. Lukes Contributing Partners St. Lukes and Memorial Hermann Hospitals committed to a premiere sponsorship opportunity, including: Participation in content advisory group (opportunity to help set content agenda) Opportunity for additional content integration Full page, full color monthly print insertion 20% SOV of online inventory on HealthZone on Chron.com Press releases in Section under MedWire Press releases houses online in HealthZone Weekly email sponsorship Logo inclusion on all Healthzone marketing material Optional full-page recruitment ad with company profile and job listings 2 5 Case Study: HealthZone

Custom Content Ideas - Just for you 16 Custom Content Ideas

Direct Energy Challenges 17 Create market awareness for Direct Energy specifically around the DirectEnergyProtects Brand. Create a model for continuous, relevant, and contextual engagement in order to establish brand awareness. Develop strategies to entice targets to make purchase decisions. Continue to create value to create a mechanism for Customer Lifecycle Management. e Direct Energy Challenges ReachEngageConvert

18 2 3 5 Aligning With Relevant Content Designed in the look and feel of editorial, Hearst Media will build a custom content feature page that houses weekly custom content related to Direct Energy Protects.. Content examples include*: Home Holiday Prep: From heaters, plumbing checks, and surge protection, everything you need to make sure your home is ready for visitors. Let It Glow: Energy Efficient Holiday Lighting. Bright Lights, Big City: Tips for designing holiday dcor that stands out and lights up the neighborhood. Home Repair Cost Calculator: A birds eye glimpse of common home repair issues, and what they could cost you. New Years Resolutions for Your Home: Your checklist to making sure you are equipped for all home needs in 2013. Direct Energy Protects may supply relevant links to be integrated into custom content, extending your sponsor presence and driving traffic to desired URLs. Direct Energy Protects will benefit from the following integration: (1) Banner ad roadblock (2) Sponsored By ID and click-able logo (3) Custom content and image *Examples only. Final content TBD based on SEO research, consumer interests, and editorial guidance. 1 Sponsored By 1 2 Note: For visualization purposes only 3 Let It Glow! Energy Efficient Holiday Lighting Custom Content Ideas

19 2 User-Generated Photo Galleries Chron.com During the festive holiday season, Houstonians celebrate by making the city even brighter. Homes are transformed on the inside and out to commemorate the seasons nostalgia, with some of the most lavish light shows ranging from pure elegance to whimsical holiday fun. Leveraging the excitement behind holiday homes in Houston, Hearst Media Services will build a user-generated photo gallery that showcases the best holiday dcor. A call-to-action will entice Houstonians to upload images of the best lit houses in the metro area. To provide further incentive, The Houston Chronicle in partnership with Direct Energy Protects, will donate $1 for every photo uploaded to a selected relevant local charity. (Up to $2,000). Hearst Media Services will moderate and showcase the images in a beautiful gallery format that may include featured images, editor selections, exteriors, trees, and more. A suite of editorial and promotional traffic drivers will direct visitors to this fun experience sponsored by Direct Energy Protects! Facebook Chron.com editors and our social media director will select their favorite photos and catalogue them in a special photo gallery housed within the Chron.com Facebook page. Viewers will be able to explore and share the gallery, providing exposure on an additional social platform. Houston Lights Up the Holidays!

20 High-Impact Campaign Visibility Chron.com visitors will be driven to Direct Energy Protects user-generated photo galleries and custom content features through the following suite of promotional and editorial redirects that further your brands penetration into the Chron.com experience. Sub-Navigation Bar Listing When users scroll over the Lifestyle channel on Chron.coms navigation bar, the sub-navigation bar will appear, populated with channel sections. A Houston Lights Up the Holidays section will be added to the sub-nav bar in December. (User-generated photo gallery only) Index Page Tout A featured tout will be placed on the index page of a relevant channel (e.g. Lifestyle, 29-95, etc.). Tout may include an image and content headline. Home Page Presence Content listings may be built into the Hot Topics section on the Chron.com home page. Additional Promotions Custom, co-branded banner ad units redirecting users to each experience (built into media campaign). Monthly Facebook post on Chron.coms editorial page (non-sponsored). A custom email blast (50,000). *All promotions subject to editorial approval. Houston Lights Up the Holidays Note: For visualization purposes only. Promotional Suite

Brand Integration Hub A custom destinationHouston Goes Green will provide Direct Energy dynamic integration into relevant editorial. This highly designed template is easily navigated, and provides visitors with relevant editorial content, aligned with custom topical content, and Direct Energy supplied content, plus interactive experiences, all updated quarterly. Social Experience The Houston Goes Green content will be repurposed for a customized social experience on Facebook. Within a custom Houston Goes Green Tab on the Chron.com editorial page, users will be able to engage with content to earn a customized Green Houston badge to post to their wall. Earth Day Events Hearst Media Services will create two pop-up Earth Day block party events in a highly visited area of Houston and San Antonio. This specialized experience will include free food, games, and more, all to celebrate a pledge to sustainability. Additionally, street teams will be coordinated throughout Texas to distribute Direct Energy collateral. Program Overview In 2012 Forbes Magazine named Houston Americas coolest city. In 2013, Chron.com will make Houston even cooler by emphasizing civic responsibility and encouraging the community to commit to sustainable living. Chron.com will invigorate Houstons interest in and motivation for sustainable living by naming 2013 The Year We Go Green! Houston Goes Green in 2013 21

Custom Destination Experience How It Works The Houston Goes Green brand integration hub will be a one-stop destination for useful sustainability tips and fun experiences that extend Direct Energys relationship with Houston consumers. Custom created content, along with Direct Energy supplied links, with be directly aligned with editorial that is in keeping with your brand objectives. Plus, the hub will include two interactive elements that allow for further engagement. As the exclusive sponsor, Direct Energy will benefit from the following integration: (1) Banner ad roadblock (2) Sponsored By ID and click-able logo (3) Custom sponsored content (four articles per months; refreshed weekly) (4) Interactive elements (two; refreshed quarterly) May include: tips, supplied video, quiz, poll, image gallery, sweepstakes, game, Facebook links, etc.* (5) Editorial Features (four total; refreshed weekly) (6) Supplied Direct Energy links (six; refreshed quarterly) *Monthly interactive elements TBD based on final commitment. Hearst Media Services will design a calendar in partnership with Direct Energy to outline experiences. First to Market Opportunity! Sponsored By 1 5 Note: For visualization purposes only 1 4 6 2 Houston Goes GREEN in 2013! 3 Recycling 101: Starting Recycling Program in Your Home and Neighborhood Brand Integration Hub 22

Traffic Drivers How Do You Get There? Chron.com visitors will be driven to Direct Energys Houston Goes Green brand integration hub page through the following mix of promotional and editorial redirects.* This unprecedented site wide presence seamlessly integrates the program into the Chron.com in a high-impact manner certain to draw traffic. Sub-Navigation Bar Editorial Listing Editorial listing within Business channel.** When users scroll over the Business channel on Chron.coms navigation bar, the sub-navigation bar will appear, populated with channel sections. A Houston Goes Green section will be added to live in the sub-nav bar for the year. Index Page Tout Houston Goes Green tout featured on the Business channel index page. Tout will feature Sponsored By listing, image, and content headline; updated weekly. Fuel Fix Index Page Tout Houston Goes Green editorial listing in Hot Topics bar. Houston Goes Green features tout on index page, updated weekly. Additional Promotions Co-branded banner ad units redirecting to the hub (built into media campaign). Monthly Facebook post on Chron.coms editorial page (non-sponsored). A custom quarterly email blast (50,000). *All promotions subject to editorial approval. **Business may be replaced with Lifestyle channel. 2 3 5 Houston Goes Green Hot Topics bar listing Features tout on index page (with Sponsored By mention). Brand Integration Hub... contd 23

Custom Facebook Tab Community Expansion To extend the Houston Goes Green experience to multiple online touch points, Chron.com will design a custom, sponsored tab for Direct Energy on Chron.coms editorial Facebook page. The Houston Goes Green Facebook tab will include an interactive experience relating to the initiative (e.g. tips, quiz, supplied video, polls, sweepstakes, a coupon, photo uploads, etc.). Plus, we will design a Green Houston badge that users can add to their own Facebook page and share on their wall. The Facebook tab will be refreshed with a new experience quarterly. 2 5 First to Market Opportunity! 24 Social Experience

Earth Day Block Party Experiential Opportunity Houston Goes Green will hit the streets of a high-traffic metro area (e.g. downtown Houston, the Galleria, West Ave., City Centre) in an Earth Day celebration for the entire family. A corresponding event will also be executed in the San Antonio market, utilizing The San Antonio Express branding.* The four hour Earth Day Block Parties will include complimentary food and beverage, games, and informational opportunities to learn more about Direct Energy. Brand ambassadors will interact with the crowds and share product information. Meanwhile, street teams will hand out collateral on Direct Energy throughout Texas. *Subject to approval. Note: Direct Energy to supply on-site experts for event, collateral for distribution at events and for street teams, and any other giveaways. Total number of street teams based on commitment. 2 25 Earth Day Event

Custom content and experiences that resonate on multiple touch pointsweb, social, experientialthroughout the ENTIRE year Brand Integration Hub Custom Houston Goes Green destination. Includes custom content, interactive elements, supplied links from Direct Energy, and editorial features. Direct Energy will benefit from a suite of traffic drivers including a sub-navigation bar listing, Fuel Fix presence, a channel index page tout, co-branded banner ad units, custom email blasts, and Facebook posts. Social Experience Custom Facebook tab with featured interactive Houston Goes Green experiences. Earth Day Event Earth Day block party events in Houston and San Antonio, plus street teams in Houston and additional Texas markets. Hearst Newspapers Online Media Campaign Chron.com in DMA and out of DMA presence on additional Texas properties. A targeted media campaign will be designed on a monthly basis with prominent presence on relevant channels and sites. 26 Opportunity Summary

27 Native Advertising Contextual and timely Infographics In just 2 years, infographic search volume has increased by over 800% Near Field Communications The power of mobile will continue to influence how brands target and communicate Social Integration As of August 2012, 72% of marketers saw an increasing demand for social media services Content Marketing Trends Content Value Good content will continue to marry information with entertainment Measurement CPE model starting up

28 Brand Experience and Design Consumer Insights and Strategy Content Marketing - creation and alignment Display and Rich Media Search Marketing Mobile Design, development and marketing strategies Social Marketing Digital PR and Reputation Management Email Marketing and Management Analytics and Measurement Our Digital Agency Sandbox

29 Content Strategy Identifying the content your consumers will love, calendars, governances and policies, and promotions. SEO and SEM Implementing user insights and linguistic profiles to keywords and content and headlines that boost search. PPC campaigns to build traffic. Video & Images Custom production of video and/or photo shoots, coordination of relevant photo purchases, and animation, graphics, 3-D imagery, etc. Partnerships to ensure best in class delivery and user experience. Content Creation Co-branded content share, copywriting, advertorial, Spanish. Content Management Systems Best practices for business management and workflows. Unique marriage of The Hearst Corporation, The Houston Chronicle & Chron.com, and Hearst Media Services This advantageous partnership enables us to marry the art of editorial content creation with the science of real time insights and measurement Access to robust content libraries Creative composition of germane custom content Strategic placement of content, and expertise in seamless content extension in every applicable platform Content Marketing Capabilities

30 High Level Plan 1.One year plan; starting Dec 2012 - 55k to 70k per month = 660k - 840k 1.Digital 40k to 50k per month = 480k - 600k 2.Print 15k to 20k per month = 180k 240k 1. Digital Plan includes 1.Content Integration 12k-14k 2.Display (including retargeting using Simplifi and TruView) 7.5k -9k 3.Video (content creation and hosting on Chron.com) 7.5k-9k 4.Possible mobile tie-in with locations 5k-6k 5.Advanced reputation management (limited locations) 3k-5k 6.Social Compass 5k- 7k 2.Print plan: 1.Working with David Weiss 2.Any recommendations?

31 Assumptions and Questions 1.Assumption - SEO, SEM and landing pages/web site being designed/redesigned by DE in-house team (I can price these out separately, but I dont want to step into Adams territory) 2.Question This plan for one market only 1.Should we propose a 4 market strategy? I think we should. 2.What should the incremental costs be for three additional properties? 1.San Antonio 2.Midland 3.Beaumont

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