CJ Media Better Data = Smarter Marketing

1. BETTER DATA = SMARTER MARKETING Presented to AAF-Louisville July 29, 2015

2. Agenda Introductions So, what is data? Data Approach National Data Local Data Proprietary Data Our Louisville So, what is marketing? StorytellingThrough Data #AAFLOUPD

3. Introductions Nancy Jo Trafton, Senior Marketing Manager - Client Strategy I have 30 years of media sales and marketing consulting experience specializing in effective broadcast buys, event marketing and research utilization. I have helped businesses, from the smallest retail shop to large multi-national increase their market share through analysis of audience and market conditions and developed innovative marketing solutions including print, digital and event marketing opportunities. @njtrafton Christy Belden, Digital Director I have been in marketing for 12 years, working with clients on traditional and digital marketing. Before coming to Courier- Journal Media, I was VP of Media + Marketing at LEAP, a full- service digital advertising company. I also write and speak on various marketing topics, specifically digital marketing, and I am an adjunct professor teaching digital marketing. I have an MBA from the University of Louisville. @christy_belden #AAFLOUPD

4. SO, WHAT IS DATA?

5. So, what is data? #AAFLOUPD

6. Not everythingthat counts can be counted, and not everything that can be counted counts. - Albert Einstein #AAFLOUPD

7. Data Defined data /dad,dd/ noun facts and statistics collected together for reference or analysis. #AAFLOUPD

8. DATA APPROACH

9. 4 Q

10. Who? are your best customers? spends more than other customers? buys more products? buys packages? are the most loyal? are coupon users? shops more frequently than average? #AAFLOUPD

11. Where? do you draw customers from? are the neighborhoods with the greatest opportunities for growth? are the neighborhoods with the greatest number of lookalikes? are your competitors located relative to your customers? #AAFLOUPD

12. big ticket items do your customers own? products do they have in their cabinets? activities do they participate in? media do they read, listen to, watch, surf? digital sites draw the most similar customer types? What? #AAFLOUPD

13. How can we help? Integrated media campaign newspaper, digital advertising, native advertising, direct mail, video development PPC advertising, SEO, website redesign Store location, layout or inventory Staff training on customer acquisition and retention #AAFLOUPD

14. NATIONAL DATA

15. National Data The 10,000 foot view Best for overall trends or industry overviews Provides insights and direction for local data Compare your market or client to national trends Do you index above/below Are you a market leader or are you lagging behind Identify opportunities #AAFLOUPD

16. National Example Data is from the March 2014 Crowdtap report titled "Social Influence: Marketing's New Frontier" conducted by Crowdtap and Ipsos MediaCT in partnership with Social Media Advertising Consortium (SMAC). 839 US adults ages 18-36 were surveyed online during January 2014. Crowdtap is a social marketing platform. #AAFLOUPD

17. LOCAL DATA

18. Local Data The 100 foot view Local view of community or category performance Compare your market or client to national trends Do you index above/below Are you a market leader or are you lagging behind Identify opportunities Government data typically free, others may require subscription Different data types empirical versus extrapolated #AAFLOUPD

19. Local Example 15% 30% 31% 38% 38% 45% 48% 66% 0% 10% 20% 30% 40% 50% 60% 70% Social Media Internet Ads Radio Magazine Newspapers Television Online Review Sites Internet Search Sources Millennials find give good information on Products/Services Sources Millennials find give good information on Products/Services Nielsen Profile Ranking Index, Nielsen Neighborhood Demographics 2015, GfK Mediamark Research & Intelligence DoubleBase 2014, Louisville CBSA, adults 18-34 #AAFLOUPD

20. Local/National Comparison 17 -16 11 -6 -6 -11 -35 -40 -30 -20 -10 0 10 20 Louisville CBSA Millennial Product Information Source % Difference from US Millennial Average Social Media Sites Internet Ads Radio Newspaper/Magazines Television Online Reviews Online Search #AAFLOUPD

21. PROPRIETARY DATA

22. Proprietary Data The 10 foot view Owned data Customer databases Website analytics Purchase data Service/complaint history Data is only as good as you make itgarbage in/garbage out Holy GrailMost valuable data but often overlooked or misunderstood Businesses are starving for information on how to leverage their own data #AAFLOUPD

23. Where are your customers and who are they? Index based on Louisville KY CBSA Metro base geography. Lifestage Groups Customers % of Customers Index Mainstream Families 10,312 18% 121 Cautious Couples 8,683 15% 120 Midlife Success 6,947 12% 86 Young Accumulators 6,522 11% 153 Conservative Classics 6,097 11% 102 Sustaining Seniors 4,745 8% 93 Young Achievers 3,846 7% 99 Sustaining Families 3,404 6% 110 Striving Singles 2,701 5% 47 Affluent Empty Nests 2,574 5% 87 Accumulated Wealth 1,311 2% 56 Louisville Market Source: Analysis of Customer database using Nielsen Media Research PRIZM Segmentation system #AAFLOUPD

24. k n o w t h e a u d i e n c e Myspouse and Iliveinamodestly priced home withour big family. Because we have alarge household,we also ownfourcars. We love sportsand electronic toys. We shop inbulkand liketo watchTV. Know the Audience Mainstream Families WHO ARE THEY? Mainstream Families refers to a collection of eight segments of middle-class and working-class child-filled households. While the age range of adults is broad--from 25 to 54--these are households with at least one child under 18 still at home. And residents in this exurban group share similar consumption patterns, living in modestly priced homes--including mobile homes--and ranking high for owning three or more cars. As consumers, Mainstream Families maintain lifestyles befitting large families in the nation's small towns: lots of sports, electronic toys, groceries in bulk, and televised media. 2015 STATISTICS Households: 114,736 (16.4% of market) Average Household Income: $61,009 (Compared to market average of $60,397) HOW THEY SPEND THEIR TIME ACTIVITIES & LEISURE Enjoys photography and crafts. Plays basketball and gardens. Loves going to theme parks such as Kings Island and Holiday World. The KY State Fair and Louisville Zoo are favorites as well. TRADITIONAL MEDIA Average TV viewer watching 4.8 hours a day on average. Favorite programming is kids shows, movies and comedies. Listens to drive time radio and half of them read Courier- Journal content regularly. ONLINE HABITS Strong Internet users, Heavy for Facebook and online bill pay. 9 in 10 own a mobile device and are more likely to own one. 95% own a desktop or laptop computer Visit Pinterest, WebMD and USAToday web sites. Source: Nielsen 2014 LouisvilleDMA; Avg HH Income based on Nielsen Scarborough 2014 R2, Louisville DMA #AAFLOUPD

25. k n o w t h e a u d i e n c e Myspouse and Iliveinamodestly priced home withour big family. Because we have alarge household,we also ownfourcars. We love sportsand electronic toys. We shop inbulkand liketo watchTV. Media Habits Mainstream Families Source: Nielsen Scarborough Research, 2014 R2 Louisville DMA MRI Research and PRIZM Segmentation Print Television OnlineRadio Watches an average of 4.8 hours ofTV a day, same as market average. More likely to be satellite subscribers. Feel thatTV ads are repeated too often. Favorite networks includeWLKY,WDRB, A&E,TBS, USA, Discovery & ABC Family. Enjoy watching movies, dramas, mysteries & science fiction. 48% readCourier-Journal newspaper content every week. Find magazine ads amusing. Favorite magazines includeTodays Woman & Southern Living. Reads main news, ad inserts & comics newspaper sections. Listens to 2.0 hours of the radio every day.On par with market average. More likely to listen to internet radio like Pandora. Favorite genres: country, classic hits & contemporaryChristian. Strong online consumers. Spending on average, 10 hours a week online compared to market average of 8 hours. 87% own a mobile device. (index of 116) SEARCH is the #1 smartphone activity. 63% regularly use Facebook. #AAFLOUPD

26. How it Will Work for You Uncover consumer insights from those who have purchased from the business. Gain a deeper understanding of where year visitors are coming from across the region. Discover what their digital and traditional media habits are. Now that we know more about your consumers, well know how to executive an efficient, targeted, integrated marketing campaign to them. #AAFLOUPD

27. Website Analytics #AAFLOUPD

31. OUR LOUISVILLE Correlating local and national data in our market

32. Our Town Total population: 1,325,917 Total households: 533,121 Median age: 38.9 (National: 37.9) Average household size: 2.44 (National: 2.57) Total effective buying income: $29.8 billion Median household income: $42,987 (National: $45,448) Median owner-occupied housing value: $158,475 (National: $191,227) Source: 2015 The Nielsen Company Geography: Louisville 13-county MSA #AAFLOUPD

33. Our Population & Race Louisville CBSA Market Index to Total US 2010 Census 1,235,708 2015 Estimate 1,275,797 2020 Projection 1,315,719 Growth 2010-2015 3.24% 93 Growth 2015-2020 3.13% 89 White 80.91% 107 Black/African-American 14.79% 99 American Indian 0.20% 22 Asian 1.86% 29 Native Hawaiian 0.06% 30 Other 0.15% 62 Two or More Races 2.03% 77 Source: 2015 The Nielsen Company#AAFLOUPD

34. Our Sex & Age Source: 2015 The Nielsen Company Louisville CBSA Market Index to Total US Male 48.9% 99 Female 51.1% 101 0-17 23.05% 99 18-34 21.77% 94 35-54 27.03% 103 55-64 13.42% 106 65+ 14.74% 100 Average Age 39 103 #AAFLOUPD

35. Our Education Source: 2015 The Nielsen Company Louisville CBSA Market Index to Total US Less than 9th Grade 6.01% 102 Some HS, no diploma 8.18% 102 High School Graduate 28.56% 101 Some College, no degree 21.67% 102 Associate Degree 7.96% 101 Bachelors Degree 17.49% 97 Masters Degree 7.21% 95 Professional School Degree 1.77% 52 Doctorate Degree 1.16% 93 #AAFLOUPD

36. Our Occupation Source: 2015 The Nielsen Company Top 10 Louisville occupations and how we index against the national average TOP 10 LOUISVILLE OCCUPATION CATEGORIES Louisville CBSA Market Index to Total US Office/Admin Support 14.96% 110 Sales/Related 10.78% 98 Transportation/Moving 8.84% 144 Management 8.65% 90 Production 7.78% 130 Health Practitioner/Tech 6.56% 117 Food Prep/Serving 5.59% 97 Edu/Training/Library 5.34% 88 Business/Financial Ops 4.64% 98 Construction/Extraction 4.22% 84 #AAFLOUPD

37. Our Households Source: 2015 The Nielsen Company Louisville CBSA Market Index to Total US 2013 Est. Average HHI $68,075 92 2013 Est. Median HHI $50,632 94 Owner Occupied 68% 105 Renter Occupied 32% 91 Median All Owner- Occupied Housing Value $158,989 83 2013 Est. Average HH Size 2.43 95 Households with Children under 18 32.32% 97 #AAFLOUPD

38. Louisville CBSA Market Index to Total US 2015 Est. Average HHI $68,001 92 2015 Est. Median HHI $50,698 94 2015 Est. Average Effective Buying Income $55,898 92 2015 Est Median Effective Buying Income $42,987 94 2015 Est. Agg. Effective Buying Income $29,800,607,500 2020 Proj. Average Effective Buying Income $60,743 94 2020 Proj. Median Effective Buying Income $46,063 96 Our Effective Buying Income Source: 2015 The Nielsen Company#AAFLOUPD

39. Our Consumer Spending Source: 2015 The Nielsen Company Geography: Louisville 13-county MSA Louisville MSA 2015 Annual Average per Household 2015 Market Index to US TOTAL CONSUMER EXPENDITURES $51,595 94 Food at Home (Total) $5,658 93 Prepared Foods $1,179 98 Food Away from Home $3,069 92 Apparel (Total) $3,887 91 Womens Apparel $1,307 92 Mens Apparel $759 90 Footwear $561 93 Personal Care Products & Services $993 95 Prescription Drugs $2,775 104 Housekeeping Supplies $389 99 #AAFLOUPD

40. Our Retail Growth Source: 2015 The Nielsen Company Geography: Louisville 13-county MSA 2015 Demand 2020 Demand Demand Growth 2015 Market Index to US Total Retail Sales & Eating, Drinking Places $27,506,496,000 $29,504,951,000 7.26% 94 Grocery Stores $4,142,839,000 $4,412,926,000 6.51% 96 Pharmacies & Drug Stores $2,840,140,000 $3,098,668,000 9.10% 104 Restaurants $1,364,789,000 $1,465,911,000 7.4% 91 Department Stores $3,426,359,000 $3,929,703,000 14.6% 92 #AAFLOUPD

41. YTD June 2014 YTD June 2015 % Change Houses Sold 6,796 7,633 12.32% Average Selling $174,678 $190,625 9.13% Median Selling Price $141,000 $155,000 9.93% # of Active Listings Placed into Pending Status During June 1,437 1,767 22.96% Active Listings at June 15 6,944 5,781 -16.75% Our Real Estate Market Louisville continues to experience a shortage of housing inventory and remains a sellers market Source: Greater Louisville Association of Realtors #AAFLOUPD

42. SO, WHAT IS MARKETING (MORE IMPORTANTLY STRATEGY)?

43. So, what is strategy? #AAFLOUPD

44. STRATEGY

45. If you knowthe enemy and knowyourself you need not fear the results of a hundred battles. - SunTzu The Art ofWar #AAFLOUPD

46. Strategy Defined strategy /stradj/ noun a plan of action or policy designed to achieve a major or overall aim. #AAFLOUPD

47. #AAFLOUPD

48. Data: Opponent is right-handed and has a weak backhand #AAFLOUPD

49. Scenario Goal: Build brand awareness #AAFLOUPD

50. #AAFLOUPD

51. Scenario Goal: Build brand awareness of moms 18-32 #AAFLOUPD

52. #AAFLOUPD

53. Scenario Goal: Build brand awareness of moms 18-32 Data: 90% of millennial moms own a smartphone today - Source: 2015 State of Modern Motherhood IAB and BabyCenter Study #AAFLOUPD

54. #AAFLOUPD

55. STORYTELLING WITH DATA

56. Baby Boomers Adults 55-64 James & Mary

57. Lifestyle Habits Belong to civic clubs and church boards Attend live theater Visit museums Participate in gardening & read books Play golf Attend U of L basketball games Go to arts and crafts festivals Attend Louisville Orchestra performances Go to St. James Art Festival Grocery shop at Walmart, Value Market & The Fresh Market Shop at Oxmoor Center, The Paddock, Westport Village & Macys Be influenced by "What's Hot and What's not" Play sports Be sensitive to healthy food Go to bars or nightclubs Go to sporting events Attend KDF events Belong to a health club Grocery shop at GFS, Save-a-Lot & Meijer Shop at Mall St. Matthews, Jefferson Mall & Dixie Manor More likely to. Less Likely to. Baby Boomers: Age 55-64 Louisville population 158,173 Average income $65,000 Employment status Full-time 41% Part-Time 7% Not employed 52% Occupation summary White collar 32% Blue collar 17% Source: Louisville Scarborough & Nielsen Pop-Facts 2015 research. 2014 R2 and Nielsen PRIZM households and MRI 2015 projected to Louisville NDM Understanding the lifestyle and demographic habits of Baby Boomers between the ages of 55-64 can help you better understand your audience

58. Baby Boomers: Age 55-64 Health Habits Highest indexing medical services received in past 3 years Louisville Index Source: Louisville Scarborough research. 2014 R2 and Nielsen PRIZM households and MRI 2015 projected to Louisville CBSA. Understanding the health traits of Baby Boomers between the ages of 55-64 can be vital to gaining a better understanding of your audience and how you can reach them. 1. Eye doctor (39%) 2. Other specialist (32%) 3. Skin doctor (19%) 4. Cardiologist (18%) 5. Foot doctor (8%) Specialist seen in the past year Top of mind health issues for Louisvilles Baby Boomer generation Heart health and maintenance Foot care Weight management Blood pressure control Arthritis Diabetes Breast, Lung, Prostate & Colon cancer Headache and Migraine 130 129 128 125 112 100 91 Neurology Cardiac care Orthopedics Other medical service Any overnight stay procedure Cancer/oncology Cosmetic surgery More likely to describe their health as poor or fair.

59. Local Media Habits Source: Louisville Scarborough research. 2014 R2 and Nielsen PRIZM households and MRI 2015 projected to Louisville CBSA. Observing the local media habits of Baby Boomers between the ages of 55-64 in the Kentuckiana market, helping to drive your marketing strategy Print Television OutdoorRadio Strong TV viewer watching 5.6 hours of TV a day, above the market average of 4.8 hours. More likely to be a cable subscriber Program highlights: The Good Wife, Kentucky Derby, 60 Minutes, Miss Universe Pageant, Olympics & Golden Globe Awards Feel that TV ads are repeated too often but give good info on new products Favorite networks include WLKY, WHAS, FOX News Channel, TV Land, Golf, HLN & Hallmark Enjoy watching Religious, Daytime soaps and national news 56% read Courier-Journal newspaper content every week Majority believe Newspapers give good info on bargains Find magazine ads give good info on new products Favorite magazines include American Legion, AARP, Wall Street Journal, Louisville Magazine & Southern Living Reads Main news, sports & ad inserts newspaper sections Listens to 2 hours of the radio every day. On par with market average Feel that radio ads are repeated too often More likely to listen to Satellite radio Favorite genres: News/talk, classical & Oldies Dont walk long distances. 68% walk less than 1 mile a week in a downtown area Do not use bus or carpool 29% travel 200+ miles a week in a vehicle compared to the market average of 34% Baby Boomers: Age 55-64

60. Online and Mobile Habits Source: Louisville Scarborough research. 2014 R2 and Nielsen PRIZM households, MRI 2015, and Nielsen Mobile Habits projected to Louisville CBSA Online usage is a huge part of everyones lives today and understanding the online habits of your audience is key to reaching them in the right places on the internet both at home and on the go. Online Mobile On average, spend 6 hours a week online, below the Louisville average of 8.3 hours Less likely to be social media users. 55% use social media sites on the internet Heavy email users More likely to look for recipes & financial information online More likely to own a desktop PC, tablets & Kindles Utilize the internet to track investments, make travel plans & find medical info Popular websites include Trip Advisor, Mapquest, White Pages, Facebook, Weather.com, YouTube & Yahoo! 64% own a smartphone or tablet device but are 14% less likely to own one than the general market population Android is the #1 Mobile OS used followed by Apple iOS Less likely to be social media users on mobile Top mobile activities besides calls are email & internet Majority use social media on mobile less than once a week Types of mobile websites visited most are Weather, Search and news Do not play games Have visited Open Table, Fox News, AOL Mail, Business news & Trip Advisor mobile sites Baby Boomers: Age 55-64

61. Geographic Breakdown Source: Nielsen PRIZM segmentation research. Population of A55-64. projected to Louisville CBSA Gaining a better understanding of where Baby Boomers age 55-64 are most likely to live within the metro market Louisville Metro Market by Zip Code LOW HIGH Likely to be Baby Boomers age 55-64 105-158103-10599-10293-997-92 Index How to read: An index of 100 is the Louisville market average. Therefore any region of the map with a color corresponding go an index above 100 means Adults 55-64 are more likely to live in that region Baby Boomers: Age 55-64

62. Jefferson County Up Close Jefferson County by Census Block Gaining a better understanding of where Adults 55-64 are most likely to live within Jefferson County. Source: Nielsen PRIZM segmentation research. Population of A55-64. projected to Jefferson County KY How to read: An index of 100 is the Louisville market average. Therefore any region of the map with a color corresponding go an index above 100 means Adults 55-64 are more likely to live in that region Baby Boomers: Age 55-64 LOW HIGH Likely to be Boomer Busters age 55-64 117-219103-11793-10381-930-81 Index

63. SO, WHAT DOES THIS ALL MEAN?

64. Better Data = Smarter Marketing #AAFLOUPD

65. Get your factsfirst then you can distort them as you please. - MarkTwain #AAFLOUPD

66. THANK YOU

CJ Media Better Data = Smarter Marketing

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