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EDITORIAL

THE MISSION

HealthyPet Magazine is a high quality, pro-humanitarian publication devoted to HealthyPet Magazine is a high quality, pro-humanitarian publication devoted to HealthyPetpromoting educated, responsible pet ownership.

OVERVIEW

• Written and delivered in partnership with veterinarians, HealthyPet is a trusted HealthyPet is a trusted HealthyPetand credible advisor to pet owners all over the U.S.

• With a BPA guaranteed rate base of 3,200,000 pet households per quarterly issue, HealthyPet is the nation’s widest read pet magazine, with 6,000,000 HealthyPet is the nation’s widest read pet magazine, with 6,000,000 HealthyPettotal readers.

• HealthyPet can help marketers leverage the emotional bond between owners HealthyPet can help marketers leverage the emotional bond between owners HealthyPetand their pets.

UNIQUE DISTRIBUTION METHOD

• “Controlled consumer circulation has become the new category to watch... Smart media buyers will fi nd that controlled consumer publications off er a laser-like way to reach readers in specifi c, desirable demographics”.

-DMNews, August 25, 2005 • Pet owners typically receive HealthyPet 2 to 4 weeks before visiting HealthyPet 2 to 4 weeks before visiting HealthyPet

their veterinarian.

EDITORIAL

THE MARKET PLACE

• America is Pet Crazy! 63% of American households have pets.

• In the United States, there are both more dogs and more cats than there are children.**

• Th e new “American Pet Family”: 75% of dog owners consider their pet like a child or a member of the family.*

• $38.5 billion was spent on pets in 2006 and it is projected to grow by 13% to $43.8 billion in 2008.*

• Pet owners are great consumers – they are better educated, hold better jobs and have higher household incomes. ***

0

20

40

60

80

100 In MillionIn Million100

80

60

40

20

00

73.5 74.874.8

88.388.3

Children DogsDogs Cats

* American Pet Products Manufacturers Association 2007-2008 National Pet Owners Survey** 2005 US Census Data*** MRI Spring 2006

EDITORIAL

INDUSTRY STATISTICS & TRENDS: PET SPENDING

Estimated 2008 Sales within the U.S. MarketOver the past 10 years, the amount of money that pet owners spent on their pets in the U.S. has almost doubled. For 2008, it is estimated that U.S. residents will spend over $43.4 billion on their pets.

2008 U.S. SALES (BILLIONS)

Supplies/Medicine $9.8

Veterinary Care $10.1

Food $16.2

*Unless otherwise stated, spending statistics are gathered by APPMA from various market research.

Pet Grooming & Boarding $3

Live Animal Purchases $2.1

EDITORIAL

PET SPENDING IS ON THE RISE

• Pet spending is expected to reach $43.4 billion in 2008, up from $36.3 billion in 2005, and compared to other 2005 consumer categories...

Category Retail Sales In 2005

Appliance, TV, and other Electric Stores* $77.5 billionUsed Car Dealers* $74.3 billionHome Furnishing Stores* $52.1 billionWomen’s Clothing Stores* $36.9 billion

• For 2006, it is estimated that Americans will have spent more on their pets than they spent on both jewelry and candy combined.

Beer, Wine and Liquor Stores* $34.4 billionSporting Goods Stores* $31.2 billionJewelry Stores* $28.2 billionDrinking Places* $19.0 billionHardware Stores* $18.7 billionHousehold Appliance Stores* $17.0 billionBook Stores* $17.0 billionCandy Spending*** 0$9.4 billion

Pet Related Spending** $36.3 billion

Sources: * U.S. Census Bureau, Annual Retail Trade Survey 2005, ** American Pet Products Manufacturers Association 2007-2008 National Pet Owners Survey, *** Th e Manufacturing Confectioner, January 2006

EDITORIAL

TRUSTED EDITORIAL CONTENT

• 8 years of credible edit – written from the perspective of the veterinarian with preventative tips that will extend and increase the quality of pet lives.

• HealthyPet Magazine provides readers with a balanced mix of general and HealthyPet Magazine provides readers with a balanced mix of general and HealthyPetseasonal veterinary topics as well as heart-warming stories of the human-animal bond and features on celebrities and their pets.

• Th e edit connects to the readers and reinforces their ideal of pets being a member of the family.

20%35%

30%15%

Human / Animal Bond

Seasonal Veterinary Topics General Veterinary Topics

Celebrity Pets & Entertainment

EDITORIAL

CREDIBILITY

• Next to the veterinarian, HealthyPet is the top choice of pet owners for getting HealthyPet is the top choice of pet owners for getting HealthyPetpet information.

Source Diet / Fitness Medications Health Care

Veterinarians 73.5% 88.7% 78.4%

Websites / Internet 21.2% 17.2% 25.2%Friends / Relatives 19.1% 13.6% 19.1%Other Publications 13.3% 9.2% 12.9%Pet Stores 17.1% 6.5% 11.8%Television 15.3% 8.5% 11.6%Newspapers 8.4% 3.9% 7.0%Other 2.6% 1.0% 1.6%

• Nothing even comes close to the credibility that HealthyPet and the HealthyPet and the HealthyPetveterinarian share!

HealthyPet 44.0% 30.1% 50.9%

Sources: MRI Spring 2006, 2007 HealthyPet Magazine Reader Profi le Study, MRI Market SolutionsHealthyPet Magazine Reader Profi le Study, MRI Market SolutionsHealthyPet

Where do pet owners usually get information on the following pet issues?

EDITORIAL

CELEBRITY COVERS QUICKLY ENGAGE THE READERS

Emma Roberts Dick Van Dyke Alison Sweeney Kaley Cuoco Erik Weihenmayer

Olivia Newton-John Sugar Ray Leonard Roma Downey James Brolin Melinda Clarke

EDITORIAL

FALL 2009 EDITORIAL CALENDARAdvertising Due:July 10, 2009; In-Home: September through November 2009

Celebrity Profi leSenior WellnessSmart Ways to Save on Pet Care Without Sacrifi cing Health or SafetyPet Care PartnershipsDoes Th is Collar Make Me Look Fat?Working Like a Dog

WINTER 2009 EDITORIAL CALENDARAdvertising Due:September 25, 2009; In-Home: December 2009 through February 2010

Celebrity Profi leDental CareDental TriviaMaking Pets Th inkCompassion Fatigue Life-Changing Events and Your Pet Cats: Indoor versus Outdoor

SPRING 2009 EDITORIAL CALENDARAdvertising Due:January 9, 2009; In-Home: March through May 2009

Celebrity Profi leHeartwormDewormingUnleashed Dog ParksTh e Complete Physical ExamDog Shows Preventing Zoonotic Disease: Focus on Dermatologic Diseases

SUMMER 2009 EDITORIAL CALENDARAdvertising Due:March 6, 2009; In-Home: June through August 2009

Celebrity Profi leFleas and TicksVeterinary TechniciansNow Ear Th is!Pet-Sitting and Boarding Options Pet Adoption InterviewsWhen Is a Cough Not Just a Cough?

ADVERTISING

2009 ADVERTISING RATES & PRINT SPECS

Net Rates:Full Page 4-Color Advertisement: $112,000*1/2 Page 4-Color Advertisement: $74,600*1/3 Page 4-Color Advertisement: $50,400**Based on a guaranteed circulation of 3,200,000 for 2009

Journal Trim Size: 8” x 10½ ”Binding: Saddle-stitchedLive Matter: Please keep all live matter 3/8” from the trim size.Printing: SWOP standards apply

Supported Data Formats: Hi-resolution PDF (at least 300 dpi), at 100% size, CMYK. Please include cropmarks and bleeds. Do not use Postscript Level 3. If you use Adobe Illustrator CS/CS2/CS3 to create the fi le, don’t export the PDF directly from Illustrator; use Adobe InDesign and place the Illustrator fi le in Adobe InDesign and export the hi-res PDF fi le from there instead.

ProofsFor 4-color, 3-color and 2-colorhads, contract color proof such as Matchprint, Kodak Approval or Epson is required. Proofs must be provided at 100% size.

Ship materials to:Blaine NovakHealthyPet Magazine1500 Olympic BlvdSanta Monica, CA 90404(310) [email protected] information on guidelines: www.quadarm.com/help/fi le_guidelines.asp

FULL-PAGE AD

Non-Bleed:7” x 9½ ”

Bleed: 8¼ ” x 10¾ ”

1/2 PAGE VERTICAL AD

Non-Bleed: 3¼ ” x 9½ ”

Bleed: 4” x 10¾ ”

1/2 PAGE HORIZONTAL AD

Non-Bleed: 7” x 4½ ”

Bleed: 8¼ ” x 5¾ ”

1/3 PAGE VERTICAL AD(Disclosures)

Non-Bleed: 2½ ” x 9½ ”Bleed: 2 ” x 10¾ ”

TWO-PAGE SPREAD ADNon-Bleed: 15” x 9½ ”Bleed: 16½ ” x 10¾ ”

Premium Position:Cover 2: +25%Cover 3: +15%Cover 4: +25%

Bleed: 2 ” x 10¾ ”5Bleed: 2 ” x 10¾ ”Bleed: 2 ” x 10¾ ”8Bleed: 2 ” x 10¾ ”Bleed: 2 ” x 10¾ ”

ADVERTISING

HEALTHYPET IS A GREAT PRINT OPTION

• 95% of HealthyPet readers own pets, compared to only 50.7% of readers at the HealthyPet readers own pets, compared to only 50.7% of readers at the HealthyPetleading 6 women’s service magazines.

• HealthyPet readers are also more affl uent, with a median HHI of HealthyPet readers are also more affl uent, with a median HHI of HealthyPet $76,900, compared to $53,100 for the women’s service titles.

Magazine (Avg. Pages) Reader: Time Spent Reading Each Issue

Reader: Time Spent Reading Each Page

2009 Open Net Rate

NetCPM

Better Homes & Gardens (270 pages) 36.6 minutes 8 seconds $386,410 $51Family Circle (215 pages) 34.8 minutes 8 seconds $210,120 $55Good Housekeeping (200 pages) 38.3 minutes 11 seconds $292,804 $64Ladies’ Home Journal (200 pages) 37.6 minutes 11 seconds $209,610 $55Redbook (250 pages) 35.1 minutes 8 seconds $125,970 $57Woman’s Day (200 pages) 35.1 minutes 11 seconds $214,531 $56

• HealthyPet has the lowest CPM by a signifi cant margin.HealthyPet has the lowest CPM by a signifi cant margin.HealthyPet

• HealthyPet readers spend nearly 8 times more reading each page of HealthyPet readers spend nearly 8 times more reading each page of HealthyPet the magazine.

HealthyPet (24 pages) 34.7 minutes 1 min., 26 sec.

Sources: MRI Spring 2006, 2007 HealthyPet Magazine Reader Profi le Study, MRI Market Solutions, Magazines’ published ratesHealthyPet Magazine Reader Profi le Study, MRI Market Solutions, Magazines’ published ratesHealthyPet

$112,000 $35

ADVERTISING

HEALTHYPET IS THE BEST PRINT OPTION!

HealthyPet readers can’t be reached through traditional print media.HealthyPet readers can’t be reached through traditional print media.HealthyPet

Magazine% of HealthyPet Readers That Regularly

Read These Magazines:

Better Homes & Gardens 26.5%People 20.2%Reader’s Digest 17.5%Good Housekeeping 15.2%Country Living 12.3%Family Circle 12.2%Time 11.9%Woman’s Day 11.1%O, Th e Oprah Magazine 07.9%Real Simple 05.6%Redbook 03.9%

HEALTHYPET READERS ARE ENGAGED:

• 90% of HealthyPet readers rate HealthyPet readers rate HealthyPet HealthyPet as informative/useful.HealthyPet as informative/useful.HealthyPet

• 73% of HealthyPet readers have taken action after reading HealthyPet readers have taken action after reading HealthyPet HealthyPet.Source: 2007 HealthyPet Magazine Reader Profi le Study, MRI Market SolutionsHealthyPet Magazine Reader Profi le Study, MRI Market SolutionsHealthyPet

ADVERTISING

HEALTHYPET ADVERTISING/EDIT RATIO

HealthyPet has the lowest ad/edit ratio, guaranteeing advertiser’s ads to stand out.

Better Homes & Gardens

Family Circle

Good Housekeeping

Ladies’ Home Journal

Redbook 0

Woman’s Day 0

55%

56%

56%

57%

54%

56%

45%

44%

44%

43%

46%

44%

Advertising Editorial


HealthyPet 25% 75%

ADVERTISING

HEALTHYPET HOSPITAL COVERAGE

Over 4,000 animal hospitals throughout the U.S. delivering 3,000,000 pet households each issue.

75%

45%

44%

44%

43%

46%

44%

ADVERTISING

75%

45%

44%

44%

43%

46%

44%

WEBSITEMAGAZINE

EMAIL

EVENTS

DIRECT MAIL

TELEPHONE

HealthyPet Magazine is a high quality, pro-humanitarian publication devoted to promoting educated, responsible pet ownership.

Opportunities: advertising pages, in-book sweepstakesAudience: 3.1 million circulation, 6.2 million readers

Healthypetunleashed.com is a one-stop destination for pet owners, complete with local information from each consumer’s animal hospital.

Opportunities: banner advertising, sweepstakes promotion, data collection

HealthyPet reaches consumers with personalized 75%consumers with personalized 75%communications via email.75%communications via email.75%Opportunities: sponsorship of newsletters, sponsorship of 45%newsletters, sponsorship of 45%e-reminders45%e-reminders45%

HealthyPet partners with major consumer and trade events in the pet

category to reach pet owners where they live.

Opportunities: co-sponsorship of events, product sampling

Targeted mailings that communicate directly to pet owners that visit their veterinarian on a regular basis. Mailings come direct from veterinarian with a personal recommendation.

Opportunities: direct mail off ers personalized to targeted consumers, access to purchase data history

HealthyPet has established trusting 43%HealthyPet has established trusting 43%relationships with clinics through our Account Management team.46%our Account Management team.46%Opportunities: utilize HP account management team to call attention to upcoming promotions, over 3500 44%to upcoming promotions, over 3500 44%vet clinics44%vet clinics44%

HEALTHYPET MARKETING CAPABILITIES

CIRCULATION & READERSHIP

Audience: 6,000,000 % COMP INDEX

Women 77.4 149Age: Median 48.9 yearsAge 25-49 49.1 101Age 25-54 64.0 111Age 35-54 51.0 130Household Income: Median $79,700HH Income $100,000+ 29.5 151HH Income $150,000+ 13.4 170HH Income $200,000+ 6.8 206Education & EmploymentAttended/Graduated College+ 79.8 152Graduated College+ 52.7 209Post Graduate w/ Degree 20.4 246Occupation: Mgmt., Bus./Prof. 56.6 160HomeOwn Home 87.9 124Value of Home $500,000+ 17.7 135Value of Home $750,000+ 7.9 152StatusMarried 67.8 120

READER DEMOGRAPHIC PROFILE: AN ATTRACTIVE AUDIENCE

HealthyPet Reader:Predominantly female, affl uent, well educated and professional. Th ey are married, own their own home and have an average of 3 pets.

Th ey are well balanced and more active than regular pet owners.

Owning a pet infl uences all aspects of the HealthyPet reader’s HealthyPet reader’s HealthyPetlife, including their purchasing habits.

Nearly 2/3 of HealthyPet pet owners HealthyPet pet owners HealthyPethave purchased a birthday/holiday present for their pet.

Sources: MRI Spring 2006, 2007 HealthyPet Magazine Reader Profi le HealthyPet Magazine Reader Profi le HealthyPetStudy, MRI Market Solutions – Indexed to U.S. Population


Participate in Last 12 Months % COMP INDEX

Dining Out 91.0 190Entertain at Home 74.6 186Reading Books 73.2 198Home Decorating/Furnishing 48.7 198Attend Music Performances 36.5 155Attend Dance Performances 12.5 329Go to Live Th eatre 35.2 267Go to Museums 35.2 293Photography 32.2 254Go to Bars/Nightclubs 27.9 154Picnic 23.0 228Adult Education Courses 16.9 268Go Dancing 15.8 166Attend Horse Races 04.1 152

READER DEMOGRAPHIC PROFILE: A BALANCED AUDIENCE

Sources: MRI Spring 2006, 2007 HealthyPet Magazine Reader Profi le Study, MRI Market Solutions – Indexed to U.S. PopulationHealthyPet Magazine Reader Profi le Study, MRI Market Solutions – Indexed to U.S. PopulationHealthyPet

HealthyPet Reader:Predominantly female, affl uent, well educated and professional. Th ey are married, own their own home and have an average of 3 pets.




HealthyPet readers may be “pet crazy,” but they also enjoy the fi ner things HealthyPet readers may be “pet crazy,” but they also enjoy the fi ner things HealthyPetand strive for balance in their lives.


Participate in Last 12 Months % COMP INDEX

Walking for Exercise 63.5 229Swimming 39.0 219Boating 17.6 309Bicycling 24.3 225Backpacking/Hiking 20.5 273Running/Jogging 17.7 175Golf 13.1 125Tennis 05.2 130

READER DEMOGRAPHIC PROFILE: AN ACTIVE AUDIENCEHealthyPet Reader:Predominantly female, affl uent, well educated and professional. Th ey are married, own their own home and have an average of 3 pets.




Sources: MRI Spring 2006, 2007 HealthyPet Magazine Reader Profi le Study, MRI Market Solutions – Indexed to U.S. PopulationHealthyPet Magazine Reader Profi le Study, MRI Market Solutions – Indexed to U.S. PopulationHealthyPet

HealthyPet readers are active consumers, and active consumers are better consumers!HealthyPet readers are active consumers, and active consumers are better consumers!HealthyPet


POISED FOR GROWTH

• HealthyPet Magazine has been growing over the past 10 years and has developed one HealthyPet Magazine has been growing over the past 10 years and has developed one HealthyPetof the largest reader bases for any specialty consumer magazine – 6 million readers.

• Currently partnered with 4,000+ animal hospitals in the U.S. with more hospitals joining the program everyday.

• BPA Audited and a guaranteed rate base of 3,200,000.

Sources: 2007 HealthyPet Magazine Reader Profi le Study, MRI Market Solutions, BPA June 2006HealthyPet Magazine Reader Profi le Study, MRI Market Solutions, BPA June 2006HealthyPet

0

500,000

1,000,000

1,500,000

2,000,000

2,500000

3,000,000

0

500000

1000000

1500000

2000000

2500000

3000000

3500000POISED FOR GROWTH

2004 2005 2006 2007

2,200,000

2,500,000

2,875,0003,000,000

3,000,000

500,000

1,000,000

1,500,000

2,000,000

2,500,000

00

3,500,000

2008

3,100,000

2009

3,200,000


THE HEALTHYPET READER IS THE “ALPHA” PET OWNER

Compared to U.S pet owners, the HealthyPet reader is the most desirable target.HealthyPet reader is the most desirable target.HealthyPet

U.S. Population% / Index

U.S. Pet Owners% / Index

HealthyPet Readers% / Index

Median HH Income $53,100 / 100 $63,600 / 120 $79,700 / 150HH Income $100,000+ 019.5% / 100 024.0% / 123 29.5% / 151HH Income $150,000+ 07.9% / 100 09.9% / 125 13.4% / 170HH Income $200,000+ 03.3% / 100 04.2% / 126 6.8% / 204Occupation: Mgmt., Bus./Prof. 35.4% / 100 38.8% / 110 56.6% / 160Any College 52.4% / 100 57.4% / 110 79.8% / 139Graduated College+ 25.1% / 100 28.1% / 112 52.7% / 188Post Graduate w/ Degree 08.3% / 100 09.0% / 109 20.4% / 227


®

January 29, 2007

What’s Next, Pup Tents in Bryant Park?

Designers are doing it doggy style.

With owners lavishing $44 billion on their pampered pooches – more that $1 billion of that on canine couture – it was only a matter of time before fashion-forward brands such as Ralph Lauren, Burberry, Juicy Couture and Kiehl’s went sniffing around four-legged divas. It seems that de-signers looking to expand their business, having exhausted options from teens and young children to babies, are now – yes, you saw it coming -- going to the dogs. The reason seemingly sane people snap up everything from puppy sandals to canine cashmere (go quick to pick up Ralph Lauren’s version on sale for $54.99 from $95 at Polo.com)

is clear: “Pets are acquiring a more significant role in the family, and with that, they are tend-ing to be treated more in human terms” said Bob Vetere, president of the American Pet

Products Manufacturers Association. Mr. Vetere cited baby boomers’ empty nests as well as the growing number of dual-income couples without kids as other explanations for the extra cash flowing toward pets. Packaged Facts, a division of Mar-ketResearch.com, predicts pet expenditures will grow to $52.4 billion by 2009. The allure of the rich bitch explains the more than 120 exhibitors clamoring to come to the second annual Pet Fashion Week, slated for Aug. 18, as well as the roughly 15,000 pet boutiques that have sprouted up all over the country. Even once-wary pet-apparel buyers are signing on.

“As more designers come into the marketplace with really unique designs, they catch the eye of someone who might not have bought dog clothes before, people who say to me, ‘I think this stuff is dumb normally,’” said Angie McKaig, CEO of PamperedPuppy.com. The 4-year-old site, which Ms. McKaig calls an online magazine and one-stop luxu-ry-pet-products portal, now gets as many as 300,000 visi-tors every month. A recent survey of those visitors found that more than 60% of them own a least four pieces of

clothing, four collars and 10 toys per pet, and that own-ers spend at least $50 on pet holiday gifts.

Cameron Woo, co-founder and publisher of Berkeley, Calif.-based Bark, had to admit that even his bling-averse readers, who he said “tend not to dress up their dogs in clothing,” are purchasing plenty of prod-

ucts, albeit ones with “more function than fashion.” Brands such as L.L. Bean and Orvis offer protective clothing such as raincoats, sweaters to ward off bram-bles and ticks, and booties to protect paws from salt, snow and gravel. But recently, he said, a quick sur-vey of his database of potential advertisers turned up a shocking number of companies in the apparel space. John Ryan, owner and publisher of Hollywood Dog and New York Dog magazines, agreed. “I swear 10 new companies are being launched every day that sell dog clothes,” he said. Mr. Ryan’s publications, kicked off two-and-a-half years ago when he began to commonly spot Burberry-clad dogs in Central Park, now bring in more than $100,000 in annual ad sales.

Ralph Lauren, Burberry, Jump Into $1 Billion Doggy-Couture Market BY THE NUMBERS

What owners spend to pamper pets

$44.3B

5.7%

$52.4B

2006 U.S. pet industry sales

Growth of pet-industry sales between 2005 and 2006

Expected U.S. pet-industry sales for 2009

Source: MarketResearch.com’s Packaged Facts

The Ralph Lauren tipping point Although much of that revenue has come from small companies (he notes a pat-tern of high-powered execs who have started up doggie-apparel businesses named after their pups), he said Ralph Lauren’s recent ad in Vanity Fair touting its $18,000 croc-odile-clad dog carrier was “the tipping point.” Following in the footsteps of John Paul Mitchell and others, L’Oreal-owned Kiehl’s in November launched its For Your Dog line of conditioner, shampoo and cleansing spritz after nu-merous requests from its customers, at least half of whom are dog owners, spokeswoman Amy Focazio said.

Saturday/Sunday, December 10 – 11, 2005

Calculating the True Cost of a PetIt’s Steeper Than You Think, but There are Ways to Avoid the Bite

THAT DOGGY in the window costs much more than you think.

How much? Almost $12,000 over a lifetime for a small dog that lives 15 years, and more than $23,000 for a larger breed that lives for 12. Those are just averages; the numbers grow quickly if, say, illnesses require trips to the vet.

These figures come from Jim Wilson, a vet-erinarian, lawyer and consultant who has cre-ated a detailed spreadsheet, down to the last chew toy, using data from the American Pet Products Manufacturers Association, the American Veterinary Medical Association and owners. Dr. Wilson crunched the numbers as part of his research into damages in lawsuits over pets and his work for a pet-insurance company.

Numbers like that might give anyone pause. “People think they can get the puppy from the pound for $125,” he says. “And they honestly don’t have a clue as to what the annual costs are going to be.”

Some highlights from the spreadsheet: “Destruc-tion of Household Items” averages $1,000 for a larger dog. Dr. Wilson knows of a Weimaraner that chewed up $3,500 worth of SUV dashboard. “Sometimes a tail takes out a whole table, and

then you have broken china, red wine stains,” he says. “Nobody takes that into account.”

Thinking about pets in these terms may make you feel danger-ously like the Grinch. In fact, it’s precisely because animals can end up playing such important roles in our lives that it’s crucial to consider the economic cost ahead of time. After all, once that pet becomes part of your house-hold – a playmate for the kids, a friend and companion – you’ll likely find yourself determined to spend whatever it takes to shield it from pain.

It’s the veterinary bills that can re-ally add up. These days it’s a snap to spend a four-figure amount or more on care that wasn’t even available a decade ago. That can lead, inevitably, to difficult choices. Trade journal DVM Newsmagazine asks vets every three years for the dollar amount at which most clients would stop treatment. In 2003, it stood at $961, up 67% from the 1997 figure. A 2004 American Kennel Club sur-vey of dog owners found that 14% said their current

ownership costs would deter them “significantly” or “quite a bit” from getting another one.

There are several things you can do to avoid finding yourself in that group. Before you buy, see a vet for a “pet selection” appoint-ment. Once there, ask about re-curring costs and potential genetic and behavior problems. Also set a realistic budget. Fran Hickman, a financial planner with JSF Fi-nancial LLC in Los Angeles, sets aside almost $14,000 annually for her African green parrot, two Jack Russell terriers and a horse named Temptation. Her advice? Be hon-est with yourself about what you’re willing to sacrifice for an animal (or a menagerie). “It impacts your family vacations when you spend $5,000 on an ill pet,” she says.

Finally, consider insurance. Some employers of-fer it, or you can buy it through outfits like Veteri-nary Pet Insurance Co. Deductibles and payment caps may apply, just as they would for humans.

A Pet’s True PriceThe lifetime cost of a dog starts around $10,000 and goes up. Some tips for planning ahead for any pet:

• Meet with a vet before you buy or adopt to research expenses

• Budget that money and cut elsewhere accordingly

• Consider pet insurance well in advance

Send your vet bill to [email protected]

Green Thumb / By Ron Lieber

Live vote

How much would you spend on medical care to keep your pet alive?

Less than $500

Up to $1,000

Up to $5,000

Up to $10,000

Up to $20,000

√MSNBC Updated: 9:00 a.m. ET March 14, 2007

An emergency visit to the vet: $700. A course of doggie chemotherapy: $3,000. Prolonging your beloved pet’s life: Priceless. At least, that’s what many MSNBC.com readers say. A recent article by the Associated Press highlighted the trend of Amer-ican spending more and more on pet health care, and readers were quick to tell us why they spend as much as they do.

“My dog is my baby. I love her like I would a child. I would take all the same measures to treat/ save her that any mother would take to save a child. She is family, and is just as important as any two-legged member!” Kris writes, echoing the sentiments found in the overwhelming majority of responses.

And an MSNBC.com poll on this topic seems to back up Kris. The majority of readers (54 percent) said they would spend upwards of $5,000 to keep their pets alive. A total of 35 percent said they would spend as much as necessary.

17%

22%

20%

5%

0.8%

As much as it takes 35%

Readers Willing to Pay up to Keep Pets Healthy

Extreme measures called for when furry pals are loved like family members

Published: April 2006

A Shaggy Dog Story: Pet Spending at All Time HighWhen creating a household budget, don’t forget the animal food—and the groomer and the veterinarian and even the massage therapist. The American Pet Products Manufacturers Association (APPMA) pet spending fig-ures prove just how much Americans love their pets. Based on figures so far, Americans’ spending on pets in 2006 is estimated at $38.4 billion.

The American Pet Products Manufacturers Association (APPMA), which has tracked pet industry stats for more than a decade, released new figures showing a contin-ued rise in pet expenditures. Pet spending has more than doubled from $17 billion in 1994 to an estimated $38.4 billion in 2006.

Projections for pet spending in 2006:

• $15.2 billion for food• $9.3 billion for supplies and over-the-counter medica-

tions • $9.4 billion for veterinarian care • $1.8 billion for live animal purchases • $2.7 billion for other services

According to the 375 page survey that tracks hundreds of pet ownership trends, 63% of American HH’s own a pet: approximately 73 million dogs, 90 million cats, 139 mil-lion freshwater fish, 9 million saltwater fish, 16 million birds, 18 million small animals and 11 million reptiles.

Total pet spending in 2005 was $36.3 billion. Both vet-erinary care and other services had stronger than an-ticipated performances in 2005. New and expanded veterinary services such as joint replacement surgeries, delicate eye procedures, and senior health care helped increase total spending by almost 8 percent over 2004.

Other innovative new services continue to increase mar-ket penetration with pet spas and hotels, grooming, pet therapy and related services. Pets today are definitely well pampered. “Pet ownership continues to increase especially among key demographic sectors including baby boomers and young professional couples,” said Bob Vetere, APPMA president. “It is interesting to note that food continues to show growth in the high-end ar-eas with vitamin fortified formulas, gourmet lines and natural/organic food.“

Vetere points to a trend in the humanization of pet prod-ucts. “Both baby boomers whose children have moved on with their lives and young professionals who are de-laying having families in favor of careers are turning to pets to fill the void at home,” he said. “With these fami-lies’ higher-than-average disposable incomes, their pets are enjoying elaborate high-end and high-tech products as well as innovative devices designed for convenience for the pet owner.”

Source: The American Pet Products Manufacturers Association (APPMA)

Controlled Consumer: A Challenge for Circulators, An Advantage for Advertisers

Ask anyone in the media business what the difference is between consumer and controlled magazines and you’ll hear a variety of answers. However, most will articulate that consumer is paid while controlled is free and usually business to business. But what happens when you introduce a title that doesn’t fall neatly into one or the other?

“Controlled consumer” circulation has become the new category to watch. Publishing companies and consumer marketers need to work together to acclimate

advertisers and readers to this concept. Smart media buyers will find that controlled-consumer publications offer a laser-like way to reach readers in specific, desirable demographics.

Publishers are realizing that controlled consumer provides a way to launch titles without direct mail

campaigns or negative remit business.To launch a controlled-consumer publication, it

behooves the circulator to educate his/her ad sales staff and help them work with buyers and potential advertisers. The circulator needs to convey clearly the facts about controlled-consumer circulation. It’s more arduous for the circulator than a magazine in the traditional circulation model.

To start, the circulation team will preselect names from its own files or outside sources. Because the publisher is using its own sources to choose the subscribers, it can cherry pick the readers who fall into the desired demographic. This way, media buyers are assured that their ads reach a highly targeted audience.

An important point is that the subscribers are people chosen specifically for their demographic data

and buying habits. The readers are a known entity and more likely to respond to the advertisers’ products and services.

Controlled-consumer circulation lets circulators set specific requirements for subscribers and continue to ensure that those requirements are met. Knowing the reader before launch also often helps the editorial staff mold the magazine around the exact reader surveys and feedback from the first few issues.

By delivering a quality reader and targeted product right at launch, the ad sales team has a strong value proposition from the start. Circulators of controlled-consumer publications will continue to serve their subscribers while converting them to requesters. Another challenge is “re-training” readers. Though good c o n t r o l l e d - c o n s u m e r publications exist, potential subscribers often are

looking for the catch when asked to fill out publication cards.

Marketers of controlled-consumer publications have the task of conveying the magazine’s value to potential subscribers while making them feel part of a specific club for which the magazine has been created. If the editorial quality is strong and the magazine’s content matches the needs and interests of the readers, they’ll become less skeptical and enjoy the publication as much or more than the others that they pay for.

A controlled-consumer publication that is doing its

job for advertisers hones its list to ensure that readers are members of the audience the advertisers want to reach. Circulators can save money by using traditional circulation devices like tip-ons, insert cards and even the editor’s letter so the message that this is a great product that’s free to an exclusive audience is continually conveyed in an economical fashion.

In controlled consumer, the readers are the publication’s most valuable asset and must be treated as such. Strong customer service and “subscriber-only” deals and offers are a way to enhance the relationship.

In addition to traditional advertising responses, controlled-consumer publications can help advertisers reach readers with value-added programs. These can include exclusive offers to their subscribers with advertising using techniques such as direct mail, events and e-mail offers that provide value to the reader. If demographics allow, location events are particularly useful in enhancing the reader’s experience with both the magazine and the advertiser.

As some of the larger magazine publishers begin to serve a combination of paid and controlled consumer, and the category becomes more widely accepted, it grows easier for publishers who want to launch with this kind of circulation. The category will get easier to manage as it grow, but the smartest circulators will understand that their mission is to continue to deliver a specific reader demographic to advertisers. They need to be vigilant about maintaining the quality of their subscriber list and continually devise new ways to attract qualified subscribers.

Debby Lowenstein is circulation director at Doubledown Media’s Trader Monthly, a strategy and lifestyle magazine for traders. Her e-mail address is [email protected].

By Debby Lowenstein

August 22, 2005

Debby Lowenstein

American Express publishes Departures for its Platinum and Centurion cardholders.

HealthyPet Magazine has received two Platinum awards from MarCom, for its consumer magazine and recently launched print advertisement.

The MarCom Awards recognize outstanding creative achievement by marketing and communication professionals. Administered and judged by the Association of Marketing and Communication Professionals, with more than 5,000 entries from around the world. Judges are industry professionals who look for companies whose talent exceeds a high standard of excellence and whose work serves as a benchmark for the industry.

“We are thrilled to receive the platinum award from MarCom in the consumer magazine category,” says Doug Drew, publisher of HealthyPet Magazine. “We take great pride in the content we provide and our readers are growing with more than 12 million pet parents receiving the publication from their veterinarian annually.”

HealthyPet received a second platinum award for its recent print ad which showcases HealthyPet’s effectiveness in helping readers stay informed and reminded about the importance of annual exams.

HealthyPet Magazine received an APEX Award of Excellence for Best Redesign. The APEX Awards are based on excellence in graphic design, editorial content and the ability to achieve overall communications excellence.

With the Spring 2007 issue, HealthyPet introduced an easier to navigate, contemporary design with a 70# cover and brighter, heavier pages. “The goal was to match the quality editorial with a bold and

fresh design,” says Doug Drew, publisher of HealthyPet Magazine. Response to the redesign has been great by both advertisers and consumers alike, with HealthyPet growing its BPA audited circulation to over 3.1 million pet households with each issue.

In addition to the redesign, HealthyPet increased the magazine folio by 33% and looks to increase it again in 2008. All of these changes have increased the consumer’s positive experience with the HealthyPet brand.

HealthyPet Magazine Wins Prestigious Awards

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