® 2007 vertis, inc. all rights reserved. vertis customer focus® retail 2008: media

® 2007 Vertis, Inc. All rights reserved.

Vertis Customer Focus®

RETAIL 2008: MEDIA

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CONSUMER INSIGHTSWe strive to know your customers as well as you do

• Proprietary Research – Client Specific Reporting Customer Focus Retail Customer Focus Direct Marketing Customer Focus Opiniones RISC (Research Institute on Social Change)

• Syndicated Research – Market and Zip-code Specific Scarborough MRI Simmons

• Custom Research Services – Affordable and Timely Return to Sample Focus Groups (traditional and Online) Telephone, Web Surveys

• DataDrivenDesign Customer, market and transaction specific targeting strategies based on consumer, behavioral, and

attitudinal data

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CUSTOMER FOCUS® BACKGROUND

• A comprehensive consumer survey analyzing consumer, demographic and media behavior

• Identifies sociodynamic profiles such as values, cultural characteristics and motivational attributes

• A powerful marketing tool to measure market fluctuations and refine marketing strategies

• Developed from interviews with leading national advertisers

The Customer Focus® survey is conducted by Marshall

Marketing & Communications, a leading field research

company.

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CUSTOMER FOCUS® INTERVIEW METHODOLOGY

• Telephone Survey: Random Digit Dialing 3,000 Adults 18+ 95% Reliability, 2% Differential Distributed proportionately

• Categories Home improvement, sporting goods, auto

aftermarket, electronics, appliances, fashion, footwear, grocery, drug, furniture, optical and more

• Retail Survey Dates: August/September 1997 August/September 1999 August/September 2001 August/September 2003 August/September 2005 August/September 2007


Inserts Capture Consumers’ Attention

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MEDIA ADVERTISING-7 DAYSIn the past 7 days, what advertising did you pay attention to? Was it...?

Total Adults 18 - 34 35 - 49 50+In an advertising insert or circular 47% 37% 51% 52%On prime Time TV 43% 51% 44% 37%On the page of a newspaper 38% 27% 38% 46%In a Magazine 29% 29% 29% 28%On the Internet (Web) 24% 37% 26% 15%On Morning Radio between 6-10am 24% 31% 27% 17%In Direct Mail 23% 24% 22% 22%On a Billboard 20% 26% 22% 15%On a cell phone 3% 5% 4% 1%None of these 14% 12% 11% 18%

Universe: Total Adults Source: © 2008 Vertis Customer Focus®: Retail 2008

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MEDIA ADVERTISING-7 DAYSIn the past 7 days, what advertising did you pay attention to? Was it...?Total Adults

36%

53%45%

36%

15%

31%25% 28%

47% 43%38%

29%24% 24% 23% 20%

In anadvertising

insert or circular

On prime TimeTV

On the page ofa newspaper

In a Magazine On the Internet(Web)

On MorningRadio between

6-10am

In Direct Mail On a Billboard

2003

2008


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MEDIA ADVERTISING-7 DAYSIn the past 7 days, what advertising did you pay attention to? Was it...?18 - 34

28%

52%

36% 40%

22%

37%

23%34%37%

51%

27% 29%37%

31%24% 26%

In anadvertising

insert or circular

On prime TimeTV




6-10am


2003

2008


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MEDIA ADVERTISING-7 DAYSIn the past 7 days, what advertising did you pay attention to? Was it...?35 - 49

39%

57%

43%36%

18%

34%28% 29%

51%44%

38%29% 26% 27%

22% 22%

In anadvertising

insert or circular

On prime TimeTV




6-10am


2003

2008


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MEDIA ADVERTISING-7 DAYSIn the past 7 days, what advertising did you pay attention to? Was it...?50+

40%50% 52%

33%

7%

24% 25% 23%

52%

37%46%

28%

15% 17%22%

15%

In anadvertising

insert or circular

On prime TimeTV




6-10am


2003

2008



Over 90% of Insert Readers are Using the Insert for more than Just Price

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OTHER THAN PRICE COMPARION-INSERT USAGEOther than for price comparisons, how do you use advertising inserts or circulars? Do you...?

Total Adults 18 - 34 35 - 49 50+Clip coupons 55% 48% 53% 60%Assist in making future shopping trip lists 51% 48% 50% 53%Browse for new products or styles 50% 54% 51% 47%Look for new ideas such as projects/meals/recipes 45% 45% 45% 44%Take it into store to help you shop 37% 32% 35% 42%Assist in making same-day shopping trip lists 37% 37% 36% 38%Register to win 16% 13% 16% 18%None of these 7% 8% 6% 7%

Universe: Insert Readers

Source: © 2008 Vertis Customer Focus®: Retail 2008

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Total Adults

Under $30K

$30-$50K $50-$75K$75K

+Clip coupons 55% 56% 56% 55% 51%Assist in making future shopping trip lists 51% 50% 50% 51% 52%Browse for new products or styles 50% 46% 48% 52% 56%Look for new ideas such as projects/meals/recipes 45% 43% 44% 43% 48%Take it into store to help you shop 37% 42% 37% 34% 35%Assist in making same-day shopping trip lists 37% 39% 37% 36% 36%Register to win 16% 20% 17% 14% 12%None of these 7% 8% 9% 6% 5%



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Total Adults

Urban / City Area

SuburbsA Rural

AreaClip coupons 55% 52% 59% 51%Assist in making future shopping trip lists 51% 50% 50% 53%Browse for new products or styles 50% 50% 52% 47%Look for new ideas such as projects/meals/recipes 45% 45% 44% 45%Take it into store to help you shop 37% 39% 36% 37%Assist in making same-day shopping trip lists 37% 38% 35% 38%Register to win 16% 16% 15% 17%None of these 7% 8% 5% 9%




Fewer Adults Under 50 Reading Newspapers

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NEWSPAPER READIn the past 7 days, did you read a...?

Total Adults

18 - 34 35 - 49 50+

Read Paper (combined) 76% 65% 75% 84%Weekday Paper (total) 66% 53% 63% 76%Daily City Newspaper (Monday-Saturday) 62% 50% 60% 71%Sunday Paper (combined) 60% 48% 59% 69%Sunday City Newspaper 56% 45% 54% 64%Suburban Newspaper (Monday-Saturday) 20% 13% 20% 24%A free city paper 18% 19% 19% 16%A Free Suburban newspaper 16% 12% 17% 17%Sunday Suburban Newspaper 13% 9% 14% 15%Did not read paper 24% 35% 26% 16%


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NEWSPAPER READIn the past 7 days, did you read a...?Total Adults

2004 2008

Weekday 72% 66%

Sunday 65% 60%

Did not read paper 20% 24%


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NEWSPAPER READIn the past 7 days, did you read a...?18 - 34

2004 2008

Weekday 62% 53%

Sunday 57% 48%



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NEWSPAPER READIn the past 7 days, did you read a...?35 - 49

2004 2008

Weekday 72% 63%

Sunday 62% 59%



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NEWSPAPER READIn the past 7 days, did you read a...?50+

2004 2008

Weekday 79% 76%

Sunday 73% 69%




Inserts Still Number one Buying Influence – Internet Growing, ROP Shrinking

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MEDIA INFLUENCE BUYINGWhich ONE of the following media most influences your buying decisions...?

Total Adults

18 - 34 35 - 49 50+

Advertising Inserts or Circulars 27% 21% 30% 29%TV 19% 24% 20% 15%Advertisements on the page of a Newspaper 12% 7% 11% 17%Internet 9% 17% 8% 5%Catalogs 6% 5% 5% 7%Direct Mail 5% 6% 6% 4%Magazines 4% 5% 3% 3%Radio 2% 3% 3% 2%E-mail 1% 2% 2% 0%Don't Know 2% 2% 3% 2%None of these 12% 7% 10% 16%


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MEDIA INFLUENCE BUYINGWhich ONE of the following media most influences your buying decisions...?Total Adults

2004 2008Advertising Inserts or Circulars 28% 27%TV 22% 19%Advertisements on the page of a Newspaper 18% 12%Internet 4% 9%Catalogs 6% 6%Direct Mail 4% 5%Magazines 5% 4%Radio 3% 2%E-mail 1% 1%Don't Know 1% 2%None of these 9% 12%


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MEDIA INFLUENCE BUYINGWhich ONE of the following media most influences your buying decisions...?18 - 34

2004 2008Advertising Inserts or Circulars 22% 21%TV 30% 24%

Advertisements on the page of a Newspaper 13% 7%

Internet 5% 17%Catalogs 5% 5%Direct Mail 5% 6%Magazines 6% 5%Radio 5% 3%E-mail 1% 2%Don't Know 0% 2%None of these 6% 7%


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MEDIA INFLUENCE BUYINGWhich ONE of the following media most influences your buying decisions...?35 - 49

2004 2008Advertising Inserts or Circulars 33% 30%TV 21% 20%

Advertisements on the page of a Newspaper 17% 11%

Internet 3% 8%Catalogs 6% 5%Direct Mail 4% 6%Magazines 4% 3%Radio 3% 3%E-mail 0% 2%Don't Know 1% 3%None of these 8% 10%


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MEDIA INFLUENCE BUYINGWhich ONE of the following media most influences your buying decisions...?50+

2004 2008Advertising Inserts or Circulars 27% 29%TV 17% 15%Advertisements on the page of a Newspaper 23% 17%Internet 2% 5%Catalogs 6% 7%Direct Mail 3% 4%Magazines 5% 3%Radio 1% 2%E-mail 0% 0%Don't Know 2% 2%None of these 13% 16%



Inserts and Internet Tied for #1 Place Consumers Turn to for Help with Buying Decisions – ROP Less Popular

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MEDIA TURN TO FIRSTWhen you are ready to make a purchase, which media do you turn to first to help you with your decision...?

Total Adults

18 - 34 35 - 49 50+

Advertising Inserts or Circulars 26% 21% 28% 28%Internet 26% 37% 29% 15%Advertisements on the page of a Newspaper 12% 7% 10% 17%TV 10% 14% 7% 8%Direct Mail 4% 4% 4% 3%Catalog 4% 2% 3% 5%Magazines 2% 2% 2% 3%Radio 2% 2% 2% 1%E-Mail 1% 1% 1% 0%Don't Know 2% 2% 2% 3%None 12% 7% 11% 16%


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MEDIA TURN TO FIRSTWhen you are ready to make a purchase, which media do you turn to first to help you with your decision...?Total Adults

2004 2008Advertising Inserts or Circulars 30% 26%Internet 15% 26%Advertisements on the page of a Newspaper 18% 12%TV 10% 10%Direct Mail 3% 4%Catalog 6% 4%Magazines 4% 2%Radio 1% 2%E-Mail 1% 1%Don't Know 2% 2%None 11% 12%


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MEDIA TURN TO FIRSTWhen you are ready to make a purchase, which media do you turn to first to help you with your decision...?18 - 34



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MEDIA TURN TO FIRSTWhen you are ready to make a purchase, which media do you turn to first to help you with your decision...?35 - 49



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MEDIA TURN TO FIRSTWhen you are ready to make a purchase, which media do you turn to first to help you with your decision...?50+




Grocery Inserts Increasingly Helping Consumers Decide where to shop

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INSERTS-DECIDE TO SHOPDo you use advertising inserts or circulars to decide where to shop for?

Total Adults 18 - 34 35 - 49 50+

Groceries 59% 54% 59% 63%



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INSERTS-DECIDE TO SHOPDo you use advertising inserts or circulars to decide where to shop for?Total Adults

2004 2008

Groceries 52% 59%



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INSERTS-DECIDE TO SHOPDo you use advertising inserts or circulars to decide where to shop for?18 - 34

2004 2008

Groceries 47% 54%



37

INSERTS-DECIDE TO SHOPDo you use advertising inserts or circulars to decide where to shop for?35 - 49

2004 2008

Groceries 51% 59%



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INSERTS-DECIDE TO SHOPDo you use advertising inserts or circulars to decide where to shop for?50+

2004 2008

Groceries 55% 63%




Printed and On-Line Inserts Remain Strong

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SHOPPING BEHAVIORWhich of the following statements describe your shopping behavior?

54%

18%

49%

19%

55%

21%

56%

15%

Research by printed circular Research by on-line circular

Total Adults

18 - 34

35 - 49

50+


41

SHOPPING BEHAVIORWhich of the following statements describe your shopping behavior?Total Adults

51%

16%

54%

18%


2004

2008


42

SHOPPING BEHAVIORWhich of the following statements describe your shopping behavior?18 - 34

47%

19%

49%

19%


2004

2008


43

SHOPPING BEHAVIORWhich of the following statements describe your shopping behavior?35 - 49

58%

20%

55%

21%


2004

2008


44

SHOPPING BEHAVIORWhich of the following statements describe your shopping behavior?50+

49%

11%

56%

15%


2004

2008


® 2007 vertis, inc. all rights reserved. vertis customer focus® retail 2008: media

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