They Add Value for Advertisers. Newspaper Readership...

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1 2008 Edition NEWSPAPERS They Add Value for Advertisers Contents Introduction... Highlights... Related Reports on naa.org Readership... Universal Coverage Delivering the Best Prospects Targeting Opportunities ( Section Readership) Adding Value for Advertisers Reaching Food Buyers A Cut Above the Rest Reaching Car Buyers Media Consumption and Product Usage Advertising... Most Find Ads Useful Best Ad Source for Bargains Web Sites Most Likely Web Site Visitors Key Benefits of Ads Immediacy of Ads s: Reaching Tomorrow s Customers

2 2008 Edition NEWSPAPERS HOME Introduction Consumers feast on a vast menu of media sources to assist them in their daily lives. This challenges advertisers to select the most appetizing media mix to reach their customers. is an essential ingredient in any successful media mix. s reach shoppers everyday, providing them with useful advertising information when they re in the market for a broad range of products and services. s also deliver the demographic cohorts that advertisers see as their strongest prospects. Universal audience coverage and utility are the driving forces behind newspapers. And that is why they add value for advertisers. 2

3 2008 Edition NEWSPAPERS HOME Highlights The compelling facts below underscore the strength of newspapers: 48 percent of adults read a newspaper on an average weekday. 54 percent of adults read a newspaper on an average. 67 percent of adults read a daily newspaper in the past five days. 69 percent of adults read a newspaper in the past month. Customers for many products and services are also the heaviest newspaper readers. sections provide advertisers with unique targeting opportunities. The newspaper is the most used advertising source for coupons. The newspaper is read by the majority of consumers planning their next vehicle purchase. Web site users are prime prospects for advertisers. 3

4 Readership Universal Coverage The newspaper reaches 48 percent of adults in the U.S. on an average day. This reach increases significantly over five weekdays and over four s. Readership Average weekday 48% Over five weekdays 67% Readership Average 54% Over four s 69% readership is strong among men and women. Gender Readership Readership Men 50% 53% Women 45% 55% maintains a significant presence among adults of all ages. And as adults mature, readership increases. Age Readership Readership years 33% 38% years years years years years Delivering the Best Prospects Buying power generally rises among consumers with higher household incomes, higher levels of education and more job responsibility. delivers these prospects to advertisers. As household income rises, so does newspaper readership. Income Readership Readership $75,000 or more 54% 61% $50,000 or more $40,000 or more Less than $40, Average Household Income $83,779 $82,708 Median Household Income $66,976 $66,504 readership increases with education. Education Readership Readership Post Graduate 61% 66% College Graduate Some College High School Graduate Less Than High School Graduate 30 32

5 Readership The newspaper reaches adults in various professions, as readership increases with more job responsibility. Occupation Readership Readership Management/Business/Financial Operations 52% 58% Professional/Related Occupations Sales and Office readership increases among consumers living in highervalued homes. Home Value Readership Readership $500, % 65% $300,000 - $499, $200,000 - $299, Less than $200, Average Home Value $369,624 $362,953 Median Home Value $287,149 $281,966 s are a mainstay for consumers with strong community ties, as readership increases with length of residency. Length of Residency Readership Readership Less than one year 33% 39% 1 year to less than 3 years years to less than 5 years years to less than 10 years years or more Targeting Opportunities The newspaper provides readers with a rich editorial environment and various sections suited to their individual interests. Advertisers can place their messages where they will have the highest likelihood of being read and acted upon by their target audience. Section Readership Among Adults Percent of Weekday Audience Sections Adults Men Women Advertising Circulars/Inserts/Fliers 55% 51% 58% Editorial/Opinion Fashion Home and Garden Movie Listings and Reviews Science and Technology Business/Finance Classified Advertising Comics Entertainment/Lifestyle Food/Cooking Local News Main News/Front Page International/National News Sports TV or Radio Listings

6 Readership Section Readership by Education Percent of Weekday Audience High School Some College Post Sections Graduate College Graduate Graduate Advertising Circulars/Inserts/Fliers 58% 55% 53% 49% Editorial/Opinion Fashion Home and Garden Movie Listings and Reviews Science and Technology Business/Finance Classified Advertising Comics Entertainment/Lifestyle Food/Cooking Local News Main News/Front Page International National News Sports TV or Radio Listings Section Readership by Household Income Percent of Weekday Audience HHI HHI HHI HHI Less Sections $75K+ $50K+ $40K+ Than $40K Advertising Circulars/Inserts/Fliers 52% 53% 53% 58% Editorial/Opinion Fashion Home and Garden Movie Listings and Reviews Science and Technology Business/Finance Classified Advertising Comics Entertainment/Lifestyle Food/Cooking Local News Main News/Front Page International/National News Sports TV or Radio Listings

7 Adding Value for Advertisers Reaching Food Buyers The newspaper reaches the majority of consumers with short and long grocery receipts. / Amount Spent On Groceries Past 7 Days Readership Less Than $30 Dollars 59% $30 - $49 Dollars 62 $50 - $74 Dollars 64 $75 - $99 Dollars 65 $100 - $149 Dollars 64 $150+ Dollars 64 A Cut Above The Rest When it comes to saving money, most consumers turn to the newspaper for their coupons. Coupon Source Percentage of Adults s 57% Mail 37 In-store Coupons 34 Product Packages 17 In-store Circulars 23 Magazines 15 Preferred Customer Card 25 Other Source 4 Internet 12 Reaching Car Buyers readership is healthy among car owners. Adults Readership Readership HH Owns/Leases Any Domestic Car 48% 55% HH Owns/Leases Any Foreign Car 49% 55% reaches the majority of consumers planning their next, new-vehicle purchase. New Vehicle Purchase Planned Next 12 Months / Readership Plan to pay under $15,000 52% Plan to pay $15,000 - $24, Plan to pay $25,000 - $34, Plan to pay $35,000 or more 68 also reaches most consumers planning their next used-vehicle purchase. Used Vehicle Purchase Planned Next 12 Months / Readership Plan to pay under $15,000 57% Plan to pay $15,000 - $24, Plan to pay $25,000 - $34, Plan to pay $35,000 or more 64 7

8 Adding Value for Advertisers The newspaper is still the number one advertising medium for auto dealers. Medium Used Percent of Total Ad Expenditures 27.3% Radio 18.1% Television 19.5% Source: Automotive Executive (NADA Data) National Auto Dealers Association Direct Mail 10.2% Internet 11.5% Other 13.4% Top Quintile Indices* Financial/Investment Television Radio Individual Retirement Account Money Market Account Home Improvement Loan Certificates of Deposit Home Equity Loan Sporting/Leisure Activities Past 12 Months Tennis Golf Gardening Travel Any Airline Travel Past 12 Months Any Upscale Hotel/Motel Past 12 Months *Index for total adults in top quintile (20%) = 100. Only the top quintile is used in this analysis because it represents those people who account for the most newspaper reading, television viewing, or radio listening. Media Consumption and Product Usage Consumers of many products and services are also heavy newspaper users. This makes newspaper a stronger medium for advertising messages aimed at prime prospects. Top Quintile Indices* Credit Cards Used Past 3 Months Television Radio American Express (any) MasterCard Gold/Platinum VISA Gold/Platinum Discover Gas Credit Card Major Department Store Cards

9 Advertising Most Find Ads Useful Most consumers in various demographic groups find newspaper ads useful for things they might want to buy. Advertising Adults/Principal Shoppers Somewhat/Very Useful Total Adults 51% Men 48 Women 54 Working Women 56 Total Principal Shoppers 52 Household Income $30, % $40, $50, $60, $75, $100, Advertising Occupation Somewhat/Very Useful Management/Business/Financial Operations 56% Professional/Related Occupations 58 Sales/Related Occupations 52 Home Value Under $200,000 54% $200,000 - $299, $300,000 - $399, $400,000 - $499, $500, Source: Mediamark Research Inc., Doublebase 2007 Education High School Graduate 50% Some College 51 Bachelor s Degree 57 Master s Degree 61 9

10 Adding Value for Advertisers Best Ad Source For Bargains Consumers place great value on their newspaper as a shopping guide. So, it should come as no surprise that newspapers are the primary source for bargains among consumers of various products. Ads in newspapers Ads in television Ads on the radio Ads on the Internet Ads in magazines provide me with provide me with provide me with provide me with provide me with useful bargain useful bargain useful bargain useful bargain useful bargain Products Purchased information information information information information Any Audio Equipment Bought in Last 12 Months 66% 49% 40% 29% 43% Bought Any Camera Past 12 Months Any MP3 Players Bought Last 12 Months Any PDA/Handheld Computers Bought Last 12 Months Any Video Game Systems Bought in Last 12 Months Bought Any Television Past 12 Months Any Men's Clothing Purchased Last 12 Months Any Women's Clothing Purchased Last 12 Months Any Athletic Clothing Bought Past 12 Months Any Shoes Bought Last 12 Months Any Fine Jewelry Bought Last 12 Months Any Big Ticket Household Furnishings Bought Last 12 Months Any Low Ticket Household Furnishings Bought Last 12 Months Family Restaurants/Steak Houses Bought at Last 6 Months New Vehicle Bought in Past 12 Months Used Vehicle Bought in Past 12 Months Source: Mediamark Research Inc., Doublebase

11 Adding Value for Advertisers Web Sites Web sites have broadened media usage for consumers, as advertising information becomes one of the top reasons they visit. Top Reasons Visited Web Site Percentage of Adults Local or Regional News 80% National News 66 Advertising 62 Weather 57 Movie Listings/Entertainment 46 Source: NAA s 2006 Consumer Usage of Advertising, Conducted by Mori Research Most Likely Web Site Visitors Consumers who are young, educated and affluent are more likely to visit newspaper Web sites than adults in general. Any Web Site Index of Most Likely Visited Past 7 Days Web Site Visitors (Total Adult Index = 100) Adults Post Graduate Degree 189 Household Income $75, Home Value $500, Professional/Related Occupations 170 Key Benefits of Ads offers advertisers significant benefits: Small-space ads scattered throughout the issue attract the greatest number of different readers simultaneously. Continuity schedules that build reach over time. Schedules that reinforce an advertiser's key selling season. Blockbuster spreads that command immediate attention. magazines or free-standing inserts to complement the regular newspaper buy. Detailed, up-to-date information that enables consumers to make informed buying decisions. Immediacy of Ads newspapers have relatively short lead times for ad insertion. This is a major benefit to advertisers who need to move fast. Shorter lead times provide these and other benefits to advertisers: Quick response for product and service announcements, quick testing and shifting of ad pressures. Marketing tie-ins with newspaper s extensive, next-day editorial coverage of sporting events, political elections and other special events; such as awards ceremonies, etc. Weather tie-ins triggered by weather-related events; the first snowfall, heavy rainfall etc. 11

12 Adding Value for Advertisers s: Reaching Tomorrow s Customers The newspaper reaches the majority of consumers planning purchases within the next year. Here s a snapshot: 22 million adults are planning to buy furniture in the next year; 63 percent of these consumers read a daily or newspaper. 15 million adults plan to buy a computer in the next year; 61 percent read a daily or newspaper. 15 million adults are planning to buy a mattress in the next 12 months; 62 percent of them are newspaper readers. 14 million adults plan to buy a high definition television in the next year; 66 percent of these consumers read a daily or newspaper. 12 million adults plan to buy a major appliance in the next year; 64 percent are newspaper readers. 12 million adults plan to purchase a digital camera in the next 12 months; 62 percent of these consumers read a daily or newspaper. 7 million adults plan to buy a wireless/cellular service in the next year; 61 percent of these consumers read a daily or newspaper. 7 million adults plan to buy an MP3 player (IPod, etc.) in the next 12 months; 59 percent of these consumers read a daily or newspaper. 6 million adults plan to buy a video game system in the next 12 months; 58 percent of these consumers read a daily or newspaper. 5 million adults plan to buy a DVD player in the next 12 months; 62 percent of these consumers read a daily or newspaper. s universal coverage allows advertisers to reach the majority of consumers when they re in the market for their next purchase. 12

13 Related Reports on naa.org HOME Footprint: Total Audience in Print and Online Snapshots: Looking at 's Reach Among Service and Retail Customers : The Source For Bargains Targeting Teen Consumers and Audience Product Category Reports 's Reach: The Competitive Edge

14 NAA Marketing Department John E. Kimball Senior Vice President/Chief Marketing Officer NAA Business Analysis & Research Department James Conaghan Vice President/Business Analysis and Research William A. Johnson Manager of Research and Product Development/Business Analysis and Research David Asher Manager/Business Analysis and Research The information contained in this report was compiled by NAA s Business Analysis and Research Department. For more information, contact William A. Johnson, Manager of Research & Product Development, at (571) kb/dr