The Newspaper

Re-imagined

The Newspaper

Re-imagined

AGENDA

• What is 3V ®?

• How it all began

– Research

– Production

– Editorial

– Advertising

– Marketing

• Early Results To Date

(Half A Year)

3V®

(Three Around Printing System)

What is 3V ®?

• Multiple section product with

a 14” – 15.7” cutoff

• Compact, convenient for the

reader

3V®

Three Around Format

How is it achieved?

It utilizes existing cylinder geometry

• Broadsheet is two pages around a

44.12-inch circumference cylinder

• New format is three pages on the

same cylinder, hence the name

OLDFORMAT

NEWFORMAT

3V®

Three Around Format

Advantages

• Reduced installation costs by maintaining

existing geometry and, thus, eliminating need to

change or modify side frames, drives, ink trains,

dampening systems, etc. etc.

• Theoretical newsprint savings of 33%

– More to come on this later

• Maintain distinctive sections

– Don’t lose section identities or multiple back

page sales opportunities

3V®

Three Around Format

Advantages

• Pressroom productivity gains of 50%

– Improving deadlines

– Reducing the number of presses needed

Current A1

Last broadsheet

edition of The

Columbus Dispatch

was printed Sunday,

January 27, 2013

A1 3v size

First-in-the-world

3V® edition of The

Columbus Dispatch

was printed Monday,

January 28, 2013

How It All Began…

Testing The Concept With Readers

Listening to the news consumer

– Two phase research

• Four focus groups (March 2011)

• 300 prototypes tested with current Dispatch readers (June 2011)

Testing designs and verifying news consumer attitudes

– Response again overwhelmingly positive

• Provide the Editorial team feedback from our readers and allow them to create

the best product in the new format

• Provide marketing with key copy points

Ad Impact/Recall Study

– Mid-March research; sample size = 600

• 14 ad units tested

• Compare impact/recall of same ad unit—broadsheet vs. new format

Very Pleased

37%

Pleased

46%

Displeased

14%

Very Displeased

2%

Base: Total Readers/Subscribers, 213 initial returns; #1. When you first examined the prototype, what was your first reaction?

More than

80% positive

response

Initial Reaction to Prototype is Very Positive

#20. How would you rate the prototype in comparison to the existing versions of the CD? Would you say that the…Base: Total Readers/Subscribers, 213 initial returns

An Overwhelming Majority Rated The Prototype Better Than Broadsheet

Prototype Better 70%

Existing Dispatch

Better

17%

Makes Little Difference

13%

Base: Total Readers/Subscribers, 213 initial returns; #21 Obviously, some readers will like the new prototype and other will prefer the

existing format. Suppose more readers prefer the format that you do NOT prefer, how likely are you to continue reading CD?

Most Readers Prefer The Prototype And Assure Us They Would Stay With The Columbus Dispatch

Even If A NEW FORMAT Is Adopted.

Very Likely Continue

74%

Probably Continue

23%

Probably Discontinue

3%

Very Likely Discontinue

0%

Premium

Frequency Ads

Impact Ads

Dominant Ads

Overall Recall

35%

21%

37%

57%

40%

41%

22%

38%

60%

43%

New Format Broadsheet

(Full Page & 3/4 page)

(1/2 page & 1/3 page)

(1/10 page)

(Skybox & front page banner)

Source: Mulder Solutions LLC; March 2012. 394 total respondents; 13 same share of voice ad units tested

Advertisements In The New Format Had Similar Or Better Recall

* Statistically Significant

“If you don’t like

change, you’ll like

irrelevancy even less.”

General Eric Shinseki

A WHOLE NEW EXPERIENCE For Readers

Key Subscriber/Reader Benefits

• More convenient, manageable,

portable format

EASIER TO READ

• Pull-out, more relevant stand-alone

sections catering to individual reader

taste

• Reader research supporting content

decisions

Providing coverage around topics that

are important to consumers

• Same uncompromised editorial

quality and breadth of coverage

A WHOLE NEW EXPERIENCE For Advertisers

Advertiser Benefits

Increased circulation and increased readership

Enhanced reader experience and a more

engaged audience

More contemporary & convenient format –

in sync with the tablet generation

More Sections

More section fronts & backs

More targeted advertising opportunities

Modular ad units create a better looking paper

leading to a more engaged audience

Allows for easy translation across all print

products

No changes to preprint advertising opportunities

No change to rate structure

The Production Story

Two Distinct Production Projects

Larger Internal Project

(11 months)

• Convert ad sizes

• Literally re-design the paper

• Adjust press and circ schedules

• Market research and marketing promotion

Production Equipment

Installations & Conversions

• Needing your car to commute but rebuilding it at the same time

• Three Step Process: • Step 1: Get all new pre-press equipment and one around plate completed

• Step 2: Install and test folders

• Step 3: Integrated testing of editorial, pre-press, press, and the mailroom

• Actual start to finish was 16 months (done in 15, but waited for the New Year) • Original ROI Just under two years

Production Changes

Complete re-make from end to end

• Fuji/Krause: Plate making

• Nela: Benders, plate stacking system, cylinder filler bars and lock-ups

• Foldex: NJ2C Folder

• Quipp: 600 Stackers

• Schur: Palletizer modifications

ALL VENDORS WERE INSTRUMENTAL TO OUR SUCCESS!!!!

Current A1

The Editorial Story

The Redesigned Product

Destination Pages Page Two (Of Var ious Sect ions)

Key Lessons From Editorial

• The process demands that we not just turn what we do today into a future

mini-version. This is a new era in newspapering, and any attempt to

simply "mini-size” today’s broadsheet will surely fall flat.

• Education is an ongoing must. It isn’t easy to get a bunch of journalists to

think differently about their processes. It’s a new day! And that mantra

needs to be repeated often from start to finish.

• The chance to “reinvent the wheel” invigorated the Editorial staff, with 50-

plus people involved in organized discussions about content and

presentation.

The Advertising Story

Advertising Department Plans

Setting The Stage

• Solution & audience based selling

• Ad Units

• Pricing Strategies

• Mgmt. Team Engagement & Buy-in

3V Training

• Intensive training & certification curriculum

• Sales & Marketing collateral

• Advertising opinion leaders’ response

Go-To Market Strategy

• Reiterating redesign & format benefits

• Selling sponsorships, adjacencies & premium positions

• Reinforcing “Frame of reference” & Ad-impact in new format

• Customer Events & Additional Messaging

Implementation

• Account migration plans by manager/rep

• Structured client meetings (1-stage / multi-stage – based on client status)

• Extensive tracking & monitoring of individual migration plans

4 Implementation Steps

Special Sales Process

Appointment Setting

Introduce the Redesigned

Product

Get Customer to Be the Reader

Share Features & Benefits of the Redesign

Client Needs Analysis/Trial

Balloon

Solution Selling

Proposal Close

The Marketing Story

Unique Marketing Opportunity

A “once-in-a-lifetime,

first-in-the-world” opportunity!

• Time is more precious. Choice is more prevalent. Portability is paramount.

Convenience is king.

• The newspaper needed to grow and stay connected to our subscribers,

readers and advertisers.

• The newspaper needed to change after 141 years!

• A sectioned newspaper with the compact feel of a tablet.

• A front page with more entry points to the paper than a broadsheet.

• A newspaper people are excited about.

Promotional Campaign For The New Format

Campaign Reach among Columbus market

adults 85%

Our average frequency 11.05

Total Spend $260,473.50

A Newspaper Re-Imagined … Re-Invented

Contemporary, Compact, Convenient

• Designed to appeal to today’s “smartphone and tablet” sensibility

• Designed to bring the newspaper into the modern era

• A sectioned newspaper with the compact feel of a tablet

AFTER LAUNCH

AFTER LAUNCH

The Newspaper

Is Cool Again

Flurry Of Positive Reader Feedback

New Format Attracting &

Engaging New Subscribers!

• & 38% more voluntary

starts YoY

46% more younger

subscribers with the new

format

7% more total starts YoY

16% less total stops YoY

21,600 Reader

Rewards members

AFTER LAUNCH

VOLUNTARY STARTS = HIGH QUALITY SUBSCRIBER

• Voluntary Starts up 38% YOY

• Acquired a younger, more affluent audience than traditional subscriber

(compared to subscribers gained through other direct marketing efforts)

Younger. A third of those subscribers are under the age of 50

More affluent. 58% have a HHI higher than $75K per year

More likely to have children. Nearly half of these new subscribers have

children compared to less than a third of our more tenured subscribers

Impact On Subscription Sales Half Year After Launch

Year-over year comparison of starts (compared to same week last year)

TOTAL STARTS WERE UP 16% IN FIRST QUARTER SINCE LAUNCH:

TOTAL STARTS WERE UP 4% IN SECOND QUARTER SINCE LAUNCH

YEAR-OVER-YEAR, TOTAL STARTS ARE UP 7% A HALF YEAR AFTER LAUNCH

BEST WEEKS: • 13% in week one

• 25% in week three

• 30% in week four

• 30% in week five

• 29% in week eight

• 25% in week nine

• 25% in week ten

• 26% in week eleven

• 17% in week fourteen

• 22% in week nineteen

• 11% just two weeks ago

28,806 starts in 26 weeks since launch vs.

26,992 starts during those same 26 weeks in 2012

Impact On Subscription Sales Half Year After launch

Year-over year comparison of starts (compared to same week last year)

VOLUNTARY STARTS WERE UP 56% IN FIRST QUARTER SINCE LAUNCH:

VOLUNTARY STARTS WERE UP 24% IN SECOND QUARTER SINCE LAUNCH

YEAR-OVER-YEAR, VOLUNTARY STARTS ARE UP 38% A HALF YEAR AFTER LAUNCH

BEST WEEKS:

• 142% in week one

• 60% in week two

• 81% in week five

• 62% in week six

• 77% in week seven

• 90% in week eight

• 75% in week nine

• 72% in week ten

• 63% in week fourteen

• 55% in week nineteen

• 34% two weeks ago

6,254 voluntary starts in half year since launch vs.

4,529 voluntary starts during same half year in 2012

Impact On Subscription Sales Half Year After launch

More than 1,500 former subscribers came back

home in first six weeks.

We sent out 1,000 free week-long trial samples at start &

11% subscribed in that first week trial.

Scarborough Research shows:

Daily Readership Reach Up 29% In First Quarter

Sunday Readership Reach Up 10% In First Quarter

Impact On Customer Service Half Year After launch

CUSTOMER REACTION/RESPONSE:

• 1,967 compliments on the new format

• 1,534 complaints on the new format

• More than 60% of all comments came in first week

• 890 subscribers have cancelled

(a stop rate under .4%; more than

half of cancellations happened in

first three weeks)

We lose more subscribers when we endorse a Republican candidate for President. We expect to win them back!

Despite Production Issues And Late Deliveries

192,006

191,446

190,977

191,874

191,348

189,032

192,006

191,537

191,104

191,376 191,440

189,617

January February March April May June

Sunday HD

Actual

Estimated

1.3% per week increase in permanent stops

Inserts Response Rate down 30% YOY

Direct Mail down 18% from campaigns prior to and at launch

Kiosk fielding complaints instead of selling

Despite Production Issues And Late Deliveries

1.3% per week increase in permanent stops

Inserts Response Rate down 30% YOY

Direct Mail down 18% from campaigns prior to and at launch

Kiosk fielding complaints instead of selling

106,115

104,913 104,822

105,810 105,913

104,526

106,115

105,663

106,510

108,706

110,389

110,971

January February March April May June

Daily HD

Actual

Estimated

Verbatim Reader Feedback

Just wanted to tell you that after a week of reading the new format on

my iPad. I also love it. I was curious as to how it would translate to the

digital edition and I think it’s a definite winner. And thanks for having it

ready for me to read each morning just like my carrier did. Only now I

don’t have to walk out on a cold, snowy driveway to get my daily “fix”.

After almost a week of the “new” Dispatch, I’ll have to

say I am really impressed. For some reason, the new

format makes me feel compelled to read more stories.

Another plus - I can see my husband’s face over the

sports pages! Can't wait to see what the Sunday edition

will look like. The only drawback will be that wrapping

up the turkey carcass at Thanksgiving might become a

bit more challenging! After trying out the new format for a week, we’d like to report that we

love it. The physical size is much easier to handle. The format makes

more sense because the sections are a little more rational and we like

that there is a real business section. The “indexes” of top stories at the

top of each section have been very well done. And we like not seeing

references to stories we can find in the e-edition while reading the hard

copy that we pay for. Lastly, the puzzles, except for the challenger, are

bigger and thus a lot more usable and fun. GOOD JOB!

5 stars! Really liked the larger crosswords and the word search.

Helped these aging eyes a lot. Keep up the good work!

WOW! I really like the new format. The

paper is so easy to handle. I love the

color and the more clearly organized

sections. Thank you for making reading

The Dispatch even more interesting and

fun!

Love the new format! Aside from the fact

that I do not have to wrestle with the paper

anymore, I love the organization of the

sections.

Congratulations on shrinking the page!

The compact format’s all the rage,

And content kept its newsy punch –

Can be digested over lunch.

And I can store it in my purse,

Refer to it when I converse.

Competitors will take a look

And understand the sweat it took.

Our Dispatch is now copacetic

And makes a reader wax poetic.

250 Readers At Event With Positive Feedback

Feb 5 at Columbus Blue Jackets

• 96% were “pleased/very pleased” with the new

format

• 81% said that the new format was better than

previous broadsheet

• Ratings on all attributes of the paper tested very

positive

– 95% good/very good overall rating

Total of 120 responses

Better ROI For Advertisers With New Format

Macy’s ad recall: Broadsheet format: 51%

New format : 58%

IT’S ABOUT SUBSCRIBERS

• It’s about our number of SUBSCRIBERS

• It’s about Print + Digital

• It’s about Relevance

• It’s about a shift from marketing products to

MARKETING BRANDS

• Our relation with subscribers transcends

platform . . . . but PRINT is a significant portion

of that relationship AND 3V® is our path

to success with the print audience.

THANKS . . . . QUESTIONS?

For more information, contact:

Phil Pikelny, Chief Marketing Officer

THE DISPATCH PRINTING COMPANY

ppikelny@dispatch.com or 614/461-5222

Joe Gallo, EVP and CIO

jgallo@dispatch.com or 614/461-8787