Metro Users 2014

Industry Challenges and Opportunities through the

Eyes of an Ad Guy

The

Story

POLITICO

PrintPOLITICO’s newspaper is as vibrant and prosperous as ever. Why? Put simply, members of Congress and their staff still read it voraciously, as they await votes or sit through committee hearings and floor debates

who reads politico?With the largest distribution of any Capitol Hill news publication, POLITICO distributes over 35,000 copies of its newspaper five days a week when Congress is in session. Copies go to:House & Senate | Federal Agencies | White House | Supreme CourtLobbyists | Special Interest Groups | Think Tanks | Media Companies | Wall Street160 Vending Boxes and 100 Starbucks Locations in the D.C. AreaDelta and American Airlines Shuttle Locations  at DCA and LGA

Audience Fragmentation Affecting Everyone

Source: Nielsen

In 1983, the M.A.S.H final episode was viewed by

121.6 million or 52% of the population.

This year’s Super Bowl was viewed by 111.5 million or

only 35% of U.S. population

Source: 2013 (r2) Scarborough USA Database

Newspaper Audience

Today newspapers still reach 153 million or 63% of U.S. adults

in an average week

Sources: Nielsen, U.S. Census Bureau

22 million view the evening news 6:30-7 pm on the three big

networks COMBINED out of 317 million people in the U.S.

Evening News

Source: 2014 Scarborough Report (r1)

1.8 million of Tampa Bay DMA adults every Sunday read a newspaper out

of 3.6 million adults

Newspaper Audience

Our Audience is Telling Us

More than half (56%) ALWAYS use the printed product compared to the

newspaper’s other offerings

Source: 2014 RAM Engagement Study

56%

9%

5%

4%

4%

3%

3%

The majority of readers (63%) are reading the printed product in some form every day

Source: 2014 RAM Engagement Study

0

10

20

30

40

50

60

70

Daily 5-6 days aweek

2-4 days ofweek

One day aweek

Less thanone day a

week

Never

63%

11% 13%

5% 4% 3%

Readers continue to spend more time with the Sunday product than any other day of the week

Source: 2014 RAM Engagement Study

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less than10 minutes

10 to 15minutes

16 to 30minutes

31 minutesto 1 hour

More than 1hour

Do not read

10%9%

5%

21%19%

9%

31%

28%

21%

34%

23%24% 25%

6% 6% 6%

14%

9%

Monday-Friday Saturday Sunday

Readers still feel that the newspaper updates them on things they want to know and that it

is part of their habit

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

None of these

I lose myself in the pleasure of reading thisnewspaper

Read the newspaper makes me feel like abetter citizen

This newspaper has columns and features thatgive me good advice

I use the advertising information to be a bettershopper

It's my civic responsibility to keep informed onissues and happenings around me

Reading this newspaper gives me somethingto talk about with others

Read this newspaper makes me more a part ofmy community

The coupons and ads save me money

It's a habit/Been doing it a long time

This newspaper updates me on things I try tokeep up with

Source: 2014 RAM Engagement Study

73%78%

62%

67%

53%49%

45%49%

41%47%

40%47%

35%34%34%

41%30%

38%26%

34%

4%3%

2014 2013

Newspapers are still considered a more reliable source over other media

0% 10% 20% 30% 40% 50% 60% 70%

Friends and Family

Magazines and Periodicals

Online or Digital Media

Television

Radio

Newspaper (Print, Digital or E-editions)

Source: 2014 RAM Engagement Study

16%63%

17%

25%53%

8%

30%53%

36%40%

32%45%

6%

50%24%

4%

8%

5%

Sometimes reliable Usually reliable Always reliable

Local News continues to be the most looked at content

Source: 2014 RAM Engagement Study

Total Men Women

Local News 83%

National/International News 68%

Features-Arts & Entertainment 63%

Coupons 61%

Editorials/Opinions 55%

Medical & Health Information 55%

Local News 81%

National/International News 69%

Sports – Pro 64%

Politics 60%

Business 60%

Features-Arts & Entertainment 56%

Local News 86%

Coupons/Advertising Inserts 71%

Features-Arts & Entertainment 70%

National/International News 67%

Special Features and Sections 63%

Medical & Health Information 62%

Most readers still feel they get good value from the money they pay for the newspaper

Source: 2014 RAM Engagement Study

0%

10%

20%

30%

40%

50%

60%

Outstanding Good Fair Poor

29%

22%

49%51%

18%

23%

3%5%

2013 2014

Where is the Money?

Local Media Five-Year Forecast

U.S. $Billions

Source: BIA/Kelsey’s U.S. Local Media Forecast (2012-2017)

$120.0

$125.0

$130.0

$135.0

$140.0

$145.0

$150.0

$155.0

2012 2013 2014 2015 2016 2017

$132.7

$136.6

$139.5

$145.2

$148.8

$132.5

Local Ad Market Less Dominated by Traditional Media

2012 and 2017 U.S. Local Media Revenues

2012

Direct Mail

Newspapers

Television

Radio

Online/Interactive

Yellow Pages

Out-of-Home

Cable

Magazine

*ERPM

Mobile

Source: BIA/Kelsey’s U.S. Local Media Forecast (2012-2017)

$132.5 Billion

2017

Direct Mail

Newspapers

Television

Radio

Online/Interactive

Yellow Pages

Out-of-Home

Cable

Magazine

*ERPM

Mobile

$148.8 Billion

27.0%

17.0%

15.7%

8.2%

5.8%

5.5%5.1%

2.4%1.2%

0.9%

25.0%

11.9%

15.2%11.5%

10.6%

3.7%

6.0%

6.0%

2.0%

2.0%

6.1%

11.2%

Steady Shift Toward Digital Media

Source: BIA/Kelsey’s U.S. Local Media Forecast (2012-2017)

17.4% 19.4% 21.3% 23.7% 25.5% 27.6%

82.6% 80.6% 78.7% 76.3% 74.5% 72.4%

Traditional Online/Digital

Metro Comparative Report through Q1

• Retail (4.2%)

• National (2.2%)

• Automotive (20.6%)

• Real Estate (4.3%)

• Employment (15.3%)

• Classified (10.5%)

• Total Advertising Revenue (7.1%)

• Total Newspaper Revenue (3.5%)

Customers Are Telling Us……

• ROI

• Dark Cloud over our Industry

• Pressure to Move Towards Digital

• Branded Edition Abuse

• Opt-in Program Abuse

• AAM Confusion

Stand Your Ground

Our Enormous Assets

• Brand Identity

• We Generate Most of the Content

• Thud Factor

• Feet on the Street

• People Actually Want Our Ads!

Innovative Revenue Growth

Video

• While TV holds the largest share of ad spending

worldwide, online video is becoming a viable

alternative……

TV and Video Viewing Habits are Changing

Source: AYTM Market Research May 2013

Among Internet Users who Have a Cable TV Subscription

May 2013

60%Cable TV

23% Had in past

17% No

With rising online video viewing, nearly one-fourth no longer have a cable TV

subscription

Online Video Offers Better Engagement Opportunities

Pay Per Lead Program

Pay Per Lead Program

• 11,152 calls in past 12 months

• 214 calls per week

$500,000 in New Money!

Source: Call Source Report

Native Ad Content

Digital Services

Extension Selling

Don’t Look Past The Obvious

• Know who is on your Media Kit

• Implement an ISS Team

• B-2-B Marketing

How You Can Help

• Address Specific

• Products to Households