The power and value of using newspaper in your marketing mix

Areas covered

• Our economy: who is shopping and who is not• The continuing challenge to reach your ideal

buyers and avoid audience fragmentation• Common challenges and myths about the print

market• Assessing the audience strength that lies within

the print market• 10 Reasons why some of the biggest companies

in America are spending MORE on print – not less

• Strategies for you to consider in your marketing mix

• Conclusion Q & A 2

Who is shopping?

• Our economic recovery has largely left out the have-nots

• Households that earn less than $50,000 have been extremely downbeat

• Affluent households have been an important element in getting the economy back on its feet

• Just 18% of households earn more than $100,000 a year, but account for one-third of all household spending

Source: June, 2011: USA Today, Recovery helps affluent families while cash-strapped suffer http://www.usatoday.com/money/economy/2011-06-26-consumer-confidence_n.htm

3

It’s more important now than ever before that YOU REACH your

highly desired consumers..

But, there are challenges with that

4

The commercial noise today is almost deafening

• In the 1970s, consumers were exposed to about 500 ads per day

• Today, the average consumer receives up to 30,000 commercial messages each day

• And since consumers have a lot more media options, your audience is much harder to reach

• This is called fragmentation, and it’s affecting every business in the world

Source: QRS: “Don’t Interrupt Your Consumer; Engage Them.” 2011. http://www.qsrmagazine.com/outside-insights/don-t-interrupt-your-consumer-engage-themThe Washington Post, "Skip Past the Ads, But You're Still Being Sold." 2009; http://www.washingtonpost.com/wp-dyn/content/article/2009/08/14/AR2009081401629.html 5

The number of media vehicles has increased dramatically

Consumer magazines are up 52% since 1998

The number of web sites has skyrocketed by 6,381% since 1997

75% more AM/FM radio stations exist than in 1990

New online radio stations go live every minute

There are 300% more television stations than in 1999

Source: Arbitron Infin http://www.fcc.gov/mb/audio/totals/bt050930.html; The Influential's ; Keller & Berry; /sizeofweb.html; http://www.boutell.com/newfaq/misc; http://news.bbc.co.uk/2/hi/science/nature/1738496.stm; Source: American Society of Magazine Editors. “Number of Magazine Titles: A Magazine for Everyone” (database accessed 5/24/2010) http://www.magazine.org/ASME/EDITORIAL_TRENDS/1093.aspx, ite Dial 2010: Digital Platforms and the Future of Radio, http://www.edisonresearch.com/infinite_dial_presentation_2010_revb.pdf

6

Common Myths about Print Advertising

Myth:

1) Newspapers are dying

2) Nobody reads anymore

3) Everyone is going digital

Source: Scarborough Research: USA+, Release 2, 210, 12 months; Newspaper Myths, http://www.iowanewspaperconnection.com/newspaper-myths/; Advertising Age, March 28, 2011: http://adage.com/article/news/century-21-back-big-tv-buys-2012-super-bowl-spot/149615/

Reality:1) Of the roughly 1,400 American

dailies, 12 have gone out of business in the past three years. That’s well under 1%

2) 71% of adults, or 165.6 million people, read a newspaper in print or online in the past week

3) Businesses who have taken the plunge into digital only, have not seen the desired results.

7

Top 10 Benefits of Using

Print Advertising

8

#1: Super Bowl Sized Audience

• The 2011 Super Bowl had a record setting 111 million viewer audience

• On average, 152 million adults read newspapers weekly

• 105 million adults read the newspaper on Sunday

• Reality? You can reach a Super Bowl sized audience, every Sunday!

Source: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=144456&nid=123511, Scarborough Research: USA+, Release 2, 210, 12 months

9

#2: Core Audience Strength

Middle/high income coverage remains STRONG:

• 71.7% of individuals with a household income of $100-$250K read the newspaper this past week

• 52.6% read the Sunday newspaper

• 68.3% of individuals with a household income of $50-$99K read the newspaper this past week

• 47.9% read the newspaper Sunday

Source: Scarborough Research: USA+, Release 2, 210, 12 months10

#3: Trusted Source for News/Information

• Newspapers and newspaper websites rank #1 as a trusted, credible source for local news and information

• In a December 2010 study by Selzer & Co., newspapers scored higher than all other media with:– Connecting people to the

community– Connecting people to

businesses– Knowing what stories are most

relevant to the people in their community

– Providing the most complete news source for their community

Source: Newspapers still most trusted 04/2011; http://www.tnp.sg/content/newspapers-still-most-trusted. Newspaper Websites Reach Record Audiences 02/2011; http://townnewz.com/blog/newspaper-websites-reach-record-audiences/14; Newspaper Myths: http://www.iowanewspaperconnection.com/newspaper-myths/

11

#4: Proven Web Synergy/Halo Effect

7-in-10 (73%) newspaper readers visited a website, used online search, or made an online purchase following up on advertising they saw in the newspaper

Source: How America Shops & Spends 2011 Prepared by Frank N. Magid Associates and NAA12

#5: Weekly Reader Involvement

Source: How America Shops & Spends 2011 Prepared by Frank N. Magid Associates and NAA

65.1% of all adults read a printed newspaper within the past seven days

25% of adults visited a newspaper website

within the past seven days

13

#6: Stickiness/Time Spent with Medium

• Time spent reading Sunday print paper:– Over 60 minutes: 45%– 30 to 60 minutes: 32%

• Time spent reading daily print paper:– Over 30 minutes: 45%– 16 to 30 minutes: 34%

Source: Newspaper Association of America, http://www.naa.org/docs/Research/newspaper-reader-engagement-06.pdf

14

#7: Readers Read Ads

• 84% of adult newspaper readers within the past month look for both print ads (ROP) and preprints

• 63% of these readers look at ads while paging through the paper

• 21% of these readers planning to shop actively search ads within the newspaper

Source: How America Shops & Spends 2011 Prepared by Frank N. Magid Associates and NAA15

#8: Readers Take Action

• 8-in-10 (79%) adults respond to newspaper advertising and have taken some type of action as a result of seeing printed ads

• 48% made a purchase as a direct result of newspaper advertising

Source: How America Shops & Spends 2011 Prepared by Frank N. Magid Associates and NAA 16

#9: Proven Link to Retail

• Newspapers continue to lead as the destination for checking ads on items to buy

• 35% of adults actively choose to read the newspaper and purposefully check for advertisements and promotional messages

• 28% choose the Internet• 9% choose television Newsp

aper

Internet

Television

0%

5%

10%

15%

20%

25%

30%

35%

40%

Source: How America Shops & Spends 2011 Prepared by Frank N. Magid Associates and NAA17

#10: New Customer Acquisition

• Recent studies prove ROP ads/coupons are effective in generating trials, getting people to trade up/switch brands

• 69% of adults use coupons and newspapers are their preferred coupon source

• $75,000 - $99,999 income group leads all others in coupon usage

Source: Coupon Impact on Shopping Behavior Study Conducted by M/A/R/C Research, 12/2010; How America Shops & Spends 2011 Prepared by Frank N. Magid Associates and NAA

18

The smartest and most powerful companies are still using Newspaper to acquire Affluent attention…

American Express Success Study

• Newspaper programs used in past for AMEX

proved ineffective at producing desired results

and they needed a change – They called

Mediaspace

• We implemented a new approach using

newspapers and delivered more highly visible,

guaranteed ad placements – where their clients

were reading

• We also saved them $300,000/drop

• A year later, they raised their newspaper spend

by 1,000%; within 18 months, over 1,500% - and

are now well into an 8 figure spend

• Clearly, this change in strategy is working

20

Jessica Birk says it best…

“As the leader in accountable media solutions, ID Media looks for partners like Mediaspace Solutions that can save our clients like American Express over 85% off on their media while finding ways to provide added value, exceptional positioning, and improved ROI”

Jessica Birk

Senior Vice President of ID Media

21

U.S. Census Success Study

• This critically important newspaper plan in 2010 required both deep analysis and deep discounts to achieve their required results

• They needed to reach everybody – in large and small markets, with a tight budget

• Plan recommendations involved both large and small market newspapers, often with comprehensive ZIP analysis

• Newspapers contributed to their overall success – 72% response vs. 64% in previous campaign

• Newspapers proved to STILL be their key vehicle for success!

22

Takeda Success Study

• Takeda’s largest competitor was about to receive an FDA warning announcement which was sure to make big news

• Actos wanted its brand’s safety message in key markets ASAP as consumers read headlines/looked to switch Rx

• Within 48 hours of getting go-ahead, a 150+ newspaper plan was fully executed with low CPMs/100% FDA compliance

23

Summary of Findings:

• Today, its harder than ever to reach your ideal buyer

• The best companies are laser targeting their audience,

using proven vehicles like newspapers to get their

attention

• If you are targeting the affluent and semi affluent

audience, print gives you the best of all worlds

• Newspapers/Magazines give you specific core audience

attention from your target audience

• Print is clearly providing a “Halo” effect with your digital

efforts

• Print is STILL one of the most proven vehicles for direct

response/branding campaigns24

Who is Mediaspace?

• Mediaspace Solutions is a privately-held company headquartered in Norwalk, CT

• We also have offices located nationwide in Atlanta, Chicago, Los Angeles, Minneapolis, New York and New England

• With expert service and custom-built technology systems, we help national and regional advertisers maximize their print and interactive advertising budgets

• We have an experienced and sophisticated management team focused on serving you and negotiating the best possible rates and placements

25

We help companies keep their eye on the ball

• 75% of companies who outsource important functions to other companies “significantly outperform their peers on three key business metrics:”– Reduced operational expenses– Increased profits– MANY fewer headaches and frustrations

• No one knows your business better than you. But by focusing on your core strengths and your customers, you have time and resources to stay on top of your customers’ needs

Source: Business impact of outsourcing—a fact-based analysis, IBM Global Services, 2006 [ABA2 100]26

Why wouldn’t you rely on experts?

• A good advertising solutions partner already knows the ropes, the organizations and the personalities

• Is it really worth the training time, personnel and resources to do all this yourself?

27

Let our Total Solutions Team work for your success

• When clients work with us they are assigned an entire Total Solutions Team– Account development– Ad operations– Finance

• You will receive regular and clear reports on your advertising activity

• You can call anyone on your team directly for any answers you need

• We provide customized solutions for YOUR business

28

Just a few of our other clients

Best PricingBest Placement

Best TargetsBest Service

GUARANTEED!