Consumer Marketing:

Media Trends and Insights

March 15, 2010

Overview

• Media Consumption – 5 year trend

Women

Men

• Media Usage

Women

Men

• Ad Spend Overview

Overall

HBA Industry

• A Look at Individual Mediums

• What’s Next

Consumption changes over last 5 years

Women 18-54

Source: GfK MRI Fall 2006-2010; Average units consumed. Internet was not measured in 2006

-0.78%

1.65%

-9.14%-9.83%

-7.93%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

5 Year Trend

Consumption changes over last 5 years

Women 55+

Source: GfK MRI Fall 2006-2010; Average units consumed. Internet was not measured in 2006

-1.00%

5.87%

-8.23%

-1.79%

-4.54%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

5 Year Trend

Consumption changes over last 5 years

Men 18-54

-12.50%

5.67%

-11.61%

-8.95%

-4.62%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

5 Year Trend

Source: GfK MRI Fall 2006-2010; Average units consumed. Internet was not measured in 2006

Consumption changes over last 5 years

Men 55+

-3.30%

2.32%

-0.94%

-3.24% -3.10%-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

5 Year Trend

Source: GfK MRI Fall 2006-2010; Average units consumed. Internet was not measured in 2006

How much are they consuming now?

Source: GfK MRI Fall 2010; Average units consumed.

Media Women 18-54 Men 18-54

MagazinesIssues a month

12.80 9.80

TV½ Hours per week

55.40 55.90

InternetHours per week

15.60 17.60

Radio½ Hours per week

31.80 37.30

NewspapersIssues a month

15.60 17.30

OutdoorMiles driven per week

128.80 167.30

How much are they consuming now?

Source: GfK MRI Fall 2010; Average units consumed.

Media Women 55+ Men 55+

MagazinesIssues a month

9.90 8.80

TV½ Hours per week

81.20 74.90

InternetHours per week

13.50 14.20

Radio½ Hours per week

30.10 31.50

NewspapersIssues a month

21.90 23.90

OutdoorMiles driven per week

103.10 137.70

Source: Kantar Media Jan-Dec 2010

2010 Ad Spend Allocation - Overall

51%

19%

13%

8%

6%3%

TV

Magazines

Newspapers

Internet

Radio

Outdoor

Total 2010 media spend increased 5.5% vs. 2009

• TV increased 9.8% $68,051,019,000

• Outdoor increased 9.6% $ 3,770,146,200

• Radio increased 7.6% $ 8,150,009,500

• Magazines increased 2.3% $25,007,256,000

• Online increased 1.4% $11,016,058,200

• Newspaper decreased 3.6% $18,060,165,000

TOTAL: $134,054,654,000

Source: Kantar Media 2010 vs. 2009; Total 2009 spend was $127,028,968,400

Online measures display only (captures banners and buttons of all shapes/sizes and some rich media units)

Ad Spend Per Medium

2010 HBA media spend increased 1.13% vs. 2009

• Newspaper increased 27.2% $ 426,432,200

• Outdoor increased 13.0% $ 32,107,500

• Magazines increased 8.8% $ 5,127,464,100

• TV decreased 2.8% $7,622,287,500

• Radio decreased 4.6% $ 200,289,400

• Online decreased 16.4% $ 635,412,400

TOTAL: $14,044,293,100

Source: Kantar Media 2010 vs. 2009. HBA Category includes: Cosmetics & Beauty Aids; Personal Hygiene & Health; Hair Products & Accessories; Toiletries, Hygienic

Goods & Skin Care-Men; Medicines & Proprietary Remedies; Eye Glasses, Medical Equip & Supplies; Pharma Houses; Fitness & Diet Programs & Spas;

Ad Spend Per Medium – HBA Industry

Source: MediaFinder; Forrester Research ; Deloitte’s "State of the Media Democracy"

• 193 new magazines launched while 176 ceased publication in 2010

Food category had 28 new titles

Home category closed 13 titles

• Overall circulation for consumer magazines decreased 1.2%

Newsstand sales dropped 7.3%

Subscriptions fell 1.2%

• Introduction of tablets – 82 million Americans will be using tablets by 2015

• 70% of Americans enjoy reading printed magazines even though they know they

could find most of the same information online

Magazines

• Marketers will spend $28.5 Billion on Internet in 2011

• Breakout of $25.8 Billion 2010 Internet Spend

Search $12.4B (48%)

Banner Ads $ 5.9B (23%)

Classifieds $ 2.5B (10%)

Rich Media $ 1.6B (6%)

Video $ 1.4B (5%)

Lead Generation $ 1.3B (5%)

Sponsorships $ 0.5B (2%)

Email $ 0.24M (1%)

• Facebook accounts for 12.3% of time spent online – up from 7.2% a year ago

Source: eMarketer, comScore

Online

• More than 75% of consumers between the ages of 18 and 44 view video online

• In 2011, 68.2% of US internet users will be watching video content online each

month. By 2015, that figure will increase to 76%

• Consumers are growing increasingly more comfortable with the advertising included

in streaming video:

• 80% of viewers under the age of 40 are comfortable watching advertising in

online videos

• 60% of viewers under 40 are “not bothered” by “must-watch” in-stream ads that

preface online video

• Nielsen research shows that women 18-49 have greater recall from online video

than TV

Source: eMarketer

Online Video

Social

• 58 million women (37% of US women) read blogs every month

• More women visit Facebook each month than use Gmail and Hotmail…combined

• 47% of women say that social sites influence their decision to purchase

• Women-centric social communities will have the greatest impact on brand trust

• 54% of marketing executives say that Facebook is the #1 biggest digital opportunity

today, followed by mobile (36%)

• 55% read emails from health & beauty brands

• 72% of online consumers think more positively of brands that allow sharing and foster

community

Sources : Technorati; GfK MRI Spring 2010; eMarketer ; BlogHer; L2 Think Tank

• 33% of American households own a smartphone – up 11% from last year – and 40%

of those that do not own a smartphone are likely to purchase one in the near future

• Smartphone sales will surpass those of computers in 2012

• 49 million consumers have engaged with a mobile ad and 12 million have clicked on

an ad and purchased a product

• $1.1 billion will be spent on mobile advertising in 2011 - up 48% from 2010 - and will

grow 130% more by 2014 to $2.5 billion.

• 74% of women carry their cell phone with them wherever they go

Source: Tremor Media and DM2PRO; Morgan Stanley 2010; eMarketer; GfK MRI Spring 2010

Mobile

Outdoor

Source: Kantar Media; OAAA 2010

• Ad spending on out-of-home advertising has increased by almost 10% in the

past year

• It’s not just about billboards anymore: Street furniture, transit, alternative, and

cinema formats comprise 35 percent of total out of home advertising revenue in

the US

• There are more than 2,100 operators in out-of-home media in America, with

hundreds of thousands of options

Source: Deloitte’s "State of the Media Democracy"

• 71% of Americans rate watching TV on any device among their favorite media activities

• 75% of American’s are multi-tasking while watching TV…

• 42% of US viewers are online

• 29% are talking on cell phones or mobile devices

• 26% are sending instant messages or text messages

• 86% of Americans said that TV advertising still has the most impact on their buying

decisions

Television

Radio

Source: RAB; GfK MRI Spring 2010

• Today’s radio landscape:

• 11,000 on-air stations

• 1,000 streaming

• more than 1,800 digital stations

• 14% of Americans have Sirius or XM radio – more than double the 6% from 5 years ago

• Car is where radio is listened to most often

• HD Radio has been the most significant advancement in radio broadcasting since the

introduction of FM stereo more than 50 years ago

what’s next

Source: QRaware; Mobio Identity Systems Inc.

QR Codes

What is it?

A QR Code is a 2-D code that can be scanned by a smart phone, to connect an

engaged consumer with additional, relevant content.

• 52% of Consumers are currently aware of QR Codes

• 42% of Americans now have smart phones

• 28% of Consumers have actually scanned a QR Code

• 6% of Consumers say a QR Code led to an eventual Purchase

During the last six months of 2010 QR code scanning increased 1,200 percent

across North America

ShopText

Source: ShopText internal data

Engage consumers, drive sales….

• ShopText is a mobile performance platform

• Drives leads/sales with in-ad call to text message

• Used for sweepstakes entry, sampling, coupons,

rebates and purchase

• Ad response / conversion measured in real time

• 85% completion rate for first-time users

• Response rate up to 15x greater than traditional

direct response

Source: Forrester Research

Tablets

• There are 100+ tablets in the marketplace currently

• Only about a quarter of MRI-measured magazines are

currently published via iPad apps

• 82 million Americans will be using tablets by 2015

• iPad2 released March 11th

Interactive TV

• Pause & rewind live TV

• T-commerce: You can order a pizza without dialing a phone!

• Click on advertisements to get more info

• Click stream analysis - Capture behavior data, just like the web. Every click of

your remote can be analyzed

• Google TV

Apps, web, search engine, channels. Search all of them simultaneously

Use your Android phone as a remote

Conclusion

• Traditional media is performing well

• Online and mobile will grow rapidly over the next few years

• New media formats emerging as technology evolves

• Must connect with your consumers in their comfort zone

THANK YOU!

RICH ZELDES

203.256.4154

RZELDES@WOMENSMARKETING.COM