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Putting Web Data

to Work

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“ Some may see the current slow advertising environment as confirmation of predictions that newspapers and print media are dying. We think that's wrong...

-- Gary Pruitt, McClatchy chairman and CEO

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Our portfolio strategy – combining the daily newspaper with leading websites, niche publications and direct marketing products – provides the best reach and results for local advertisers.”

– Gary Pruitt, McClatchy chairman and CEO

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Situation – Continuing Trends

• Increasing Media Fragmentation

– Opportunities made possible by broadband

• Shifting Share of Advertising Dollars

– Macy’s: Federated shift away from Newspapers

– Auto Category: Using more Internet

– Many categories are building 1-to-1 communications with customer base

Driving forces are:

• Consumer choice has been enabled by technology

• ROI of serving consumer desires through direct channels

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2005

• The Sacramento Bee employed MAAX to:

– Learn more about our current market position

– Learn more about market consumers

– Learn more about challenge and opportunities at a customer level

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2006

• The Sacramento Bee is using MAAX to act:

To execute programs from our learning

– Employing communication strategies

using web customer data

Incoming

Customer

Information

MAAX

Database

Out-going

Customer

Communication 1

2

3

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Learning From And Using Web Data

• Web Registration Data

• Street address/Zip code

• Email address

• Adding Value Through Database Integration (MAAX)

1) Intelligence for Senior Management

• Reveals view of web customer relationship with other product touch points

2) Revenue Opportunities

• 3rd Party Opt-In for a email specials from our local Advertisers (HOT sales item)

• Other segment messaging opportunities

3) User Communication Opportunities

• Newsletter sign-ups

• 3rd Party Opt-Ins

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Product Penetration By Age Segment

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0- 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65+

Direct Mail

Hispanic Publication only

Web Reg. & Hispanic Pub

Web Registrant

Print Sub & Web Reg.

Newspaper Subscribers

} Newspaper

Subscribers

Web site

Registrants }

Intelligence for Senior Management

Age of Head of Householder

Sacramento 4-County Region

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Life Stages Defined

Young Family Mature

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Sacramento Bee Product Propensity by Life Stage

Young Family Mature

UY Upper-Income Young UF Upper-Income Families UM Upper-Income Mature

MY Middle-Income Young MF Middle-Income Families MM Middle-Income Mature

LY Lower-Income Young LF Lower-Income Families LM Lower-Income Mature Wealth

Life Stage Groups

Sacramento 4-County Region 40 25 35 100%

The Sacramento Bee subscriber 27 21 52 100%

sacbee.com & Vida 40 32 28 100%

Young Family Mature

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Most Affluent Life Stage Segments

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Y1-Midlife Success F1/F2-Upper Income Families M1-Affluent Empty Nesters

Non-customer

Vida only

Vida & sacbee

sacbee only

Bee & sacbee

Bee only

Product Touch – Most Affluent Segments

42,718 Non-Customers

44,941 Total

Customers

51,069

31,000

46,741

19,230

Household Counts

Web customer

29,079, 65%

of all

customers

are on

sacbee.com

31,687, 62%

of all

customers

are on

sacbee.com

23,248, 50%

of all

customers

are on

sacbee.com

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Web Data

Goal

• Better understand these consumers/customers

• Use that understanding to communicate relevant information to them to build

stronger relationship

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Local Business

News Interests

Comics

Genealogy

News

Fitness

Weather

Astrology

Travel

Business

Entertainment

Co

nte

nt

Ava

ila

ble

to

User

Based on user interest data,

custom segments are created

that best describe groups of

users with like interests.

1 Segment Groups

Integrated

Into MAAX Once the segments are

determined, segment

groups are integrated

into MAAX.

2

Comics

Genealogy

News

Fitness

Weather

Astrology

Travel

Business

Entertainment

Tra

ck

ing

Wh

at

User

Vie

ws

Online Use Defines

Behavior Segment

Export Lists From

MAAX for

Communication Once in MAAX, we can cross-

reference with other data

points for the purpose of

developing relevant and

valuable communication

directed to these

individuals.

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25,025

individuals

How it works on sacbee.com

List of individuals created

can now be used for communication

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In MAAX – Communicate with Customers

Bee Print

Subscriber sacbee.com

Y1 - Midlife Success 14.8 18.7

Y2 - Young Achievers 10.1 17.6

Y3 - Striving Singles 1.9 4.0

F1 - Accumulated Wealth 6.4 7.7

F2 - Young Accumulators 9.2 13.1

F3 - Mainstream Families 4.2 7.2

F4 - Sustaining Families 1.5 2.8

M1 - Affluent Empty Nests 20.7 14.5

M2 - Conservative Classics 19.2 9.7

M3 - Cautious Couples 6.9 2.6

M4 - Sustaining Seniors 4.9 2.1

* *

* *

Communicate:

• Relevant Info

• During customer cycle

• Message on Invoice

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Web Data

Website Customers:

• Young and Affluent compared to the

market and the rest of our customers

• Of the high index life stage segments

that are registered online:

– 56% are also print subscribers and

44% are using us online only.

Mkt sacbee.com INDEX

Y1 - Midlife Success 14.9 18.7 126

Y2 - Young Achievers 18.1 17.6 97

Y3 - Striving Singles 7.3 4.0 55

F1 - Accumulated Wealth 4.0 7.7 191

F2 - Young Accumulators 9.4 13.1 139

F3 - Mainstream Families 7.2 7.2 100

F4 - Sustaining Families 4.5 2.8 63

M1 - Affluent Empty Nests 10.8 14.5 134

M2 - Conservative Classics 12.4 9.7 79

M3 - Cautious Couples 5.8 2.6 46

M4 - Sustaining Seniors 5.7 2.1 36

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Web Data

What do visitors use our Website for?

• 51,804 are also print subscribers to The Bee

• 125k+ registered customers we know something about

•E-newsletter sign-ups

•Behavioral segments

created by user page viewing

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Web Data

Action Opportunities

Examples -

• N-SacTicket: entertainment enewsletter

– Cross-marketing regarding our product improvements

• N-Travel: travel enewsletter

– New feature soliciting reader experiences on weekend travel

• T-Local News: local news frequent online readers

– Use known interests to communication with customer

throughout the customer cycle

• Tell them about upcoming coverage in THEIR areas of interest

• Print notes of interest on their bill:

Local Business – Expanded Market Growth

Don’t miss our expanded Metro section for all things local

And our upcoming special section on California Politics

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In MAAX – eMail Marketing for Advertisers

Communicate

Relevance

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Part of the Targeting Matrix SacBee developed

From the online customer data.

Note the number of print subscribers under each title.

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Looking Ahead

• Better Web Metrics

– Ultra important

– Need to attract users to visit NP Web Sites more frequently

– Permission marketing communications are vital

• Must:

Build Online Customer Base and Manage Audience Communication

– Use more relevant customer communication to build consumer value

– Differentiate in a time of information commoditization

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Norm’s Slides

Some maps

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25

26

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Newspaper Designated Market

Subscribers

116,767

92%

Online

19,528

15.4%

Both

9,512

7.5%

Unduplicated Reach: 126,783

Universe: 363,840 households All counts based on unique addresses

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CASS:

Address

quality

POBox

2.7%

Multi-Match

w/in Route

0.2%

Not CASS

Certified

16%

Firm

0.000%

Rural Route

0.1%

Highrise/

BusComplex

14%

General Delivery

0.008%

Street/

Residential

67%

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McClatchy states: pre-KR papers

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Contact info

Darrell Kunken

Sacramento Bee

Marketing Analysis Manager

(916) 321-1594

dkunken@sacbee.com

Norm Cloutier

McClatchy Interactive

Database Marketing

919-861-1249

ncloutier@mcclatchy.com