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    Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

    Magazine PublishingPersonalized AdvertisingProgram

    Driving Consumer Relevance and Advertiser Value in Consumer Magazine Publishing

    Michelle Weir

    Market Development

    Hewlett Packard

    6/11/2012

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    Desperately Seeking Me

    Fastest growing magazine segments reflect increasing demand for rel

    tailored to individual interests

    Publishers in position to deliver on content and promotion personaliza

    Rank Category 2000 2010

    1 Ethnic 419 978

    2 Travel 669 829

    3 Regional Interest 794 939

    4 Medicine 959 1100 5 Real Estate 190 324

    6 College Alumni 442 569

    7 Bridal 40 150

    8 Nursing 130 187

    9 Golf 98 140

    10 Senior Citizens 105 146

    Fastest Growing Magazine

    Categories (ASME, 2010)

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    The Fact IsMagazines Remain Relevant

    More than 188 million American adultscurrently read print magazines.

    Readership high among both men andwomen. (84% of women and 80% ofmen say they read at least one magazinetitle.

    Average US consumer reads 6.1 differentprint magazine titles.

    Median age of adult readers: 45.9

    Median household income: $59.8K Source: mine Online, Magazine Readershi

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    As Does Magazine Advertising!

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    The Opportunity In the Online Paradox.

    We browse online with a purpose and

    consciously (try to) ignore ads.

    The evidence is in

    online ad click rates

    We read magazines

    for leisureand ads

    are part of the

    experience.Source: CMO Council, The Impact of Relevance in Publis

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    And In Cross-Media Consumers!

    87% of those interested in readingmagazines on a digital device still

    want a printed copy.

    Source: CMO Council, 2010

    75% of consumers feel content complements pr

    feel it replaces p

    Source: Harrrison GroupMEMS Technologies, 2

    87% want digital

    + print

    75% feel digi

    complements p

    25% feel

    digital replaces

    print

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    Making Print More Compelling

    63%

    37%

    Would you go online for more informationif the advertising in your printed

    subscription magazine was customized?

    Yes No

    69

    25%

    6%

    If a magazine publisher requesregarding your preferences andthem send you more customizeinformation, would you supply

    Yes Maybe

    Source: CMO Council, The Impact of Relevance in Publishing and Advertising, 2010.

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    The Keys to Personalization

    58% of respondents agree that ads are particularly enjoyable when relat

    60% agree that ads allow for more detailed information.

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    Hearst and HP Collaboration

    Popular Mechanics- October 2011

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    Approach

    A comprehensive program to permit customized ad insertion into magazine titles ba

    subscriber demographicsA new way to create consumer engagement

    An integrated approach to cross-media integrated consumer messaging

    Print

    Online

    Mobile

    What is involvedUses high-speed inkjet technology to produce highly-personalized ad content

    Matched mailing assembly or inline binding equipment used to ensure each subscrib

    the magazine with the correct advertising

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    Why Is It Important?

    Helps Hearst deliver more

    value to advertisers through: Targeting

    Personalization

    Measurement

    Response actions

    Increases the monetaryvalue of advertising

    Improves magazines

    competitive profile

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    The Enabler

    Convergence

    Technologies Converging

    Image/Code Read MobiHigh-speed inkjet web printing

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    The Enabler

    Convergence

    Whats Happening:1. Personalized content at high volume drives reader engagem

    2. Image links (QR codes or image/text strings) drive to web/mo

    3. Printed page becomes a portal to broader web content

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    HP Customized Ads

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    Polybagged Onsert for Popular Mechanics

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    What Was Customized?

    Image for each city (Regional)

    Name on mailboxGreeting above first paragraph

    Location of nearest store

    (Best Buy, Staples)

    Personal URL

    Personalized QR code

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    Connecting To Personalized Landing Page

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    HP / Popular Mechanics

    Results and Analysis

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    Personalized, Regional and Directed

    Program Overview

    300,000 Personalized Onserts packaged with 12 regional editions

    Mechanics mailed into major metropolitan regions New York, Boston, Philadelphia, Washington (DC), Atlanta, Dallas, Detr

    Minneapolis, Seattle, San Francisco, Los Angeles

    Include Personal URL and QR code interaction elements

    Only Geo selection for demographic targeting; no additional selects use

    16 page insert with QR codes on selected content

    Print Onsert: 4/4 on 80# Appleton Matte

    Insert: 4/4 on 70# Appleton Matte

    Popular Mechanics November Issue (Newsstand 1stWeek October)

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    HP Onsert and Insert

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    Highlights

    30 Day Results

    15,288 visits from 12,008 unique visitors in 28 days

    10,334 unique contest entries, an 86% visitor-to-entry rate 60.7% of visits within 10 days of program start; 87% within 17 da

    39% mobile participation rate

    All visitors monitored individually permitting comprehensive

    evaluation based on underlying reader demographics

    1,427 QR clicks from associated insert content links to web conte

    Visitor ConversionEntered Contest

    Visited w/o Entry

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    Rethink Direct Mail/Loyalty Marketing

    Imagine the Possibilities

    Permit advertiser to reach subscriber base with pinpoint accuracy

    Less expensive than standalone direct mail

    Build on inherent value of targeted magazine audience

    Common cohort now sub-segments able to enhance relevance

    Cross-referenced database content increases targeting potential

    Merge advertiser data with Hearst data to augment targeting value

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    Hearst and Neiman Marcus

    February 2012

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    Direct Marketing Comes Alive

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    The Challenge

    Promote new store opening.

    Promote Cosmetic/Fragrance campaign. Use cross-media marketing techniques to drive recipients to website t

    exclusive video, take advantage of campaign and shop.

    Use the info learned to measure recipients response to these promotio

    tactics.

    Engage recipients using 1:1 marketing approach.

    Th C

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    The Concept.

    Using recipients mailing addresstore location information w/in 5radius of store throughout the U

    Mailing list to be comprised of NMarcus card holders and Harpesubscribed readers. Using data

    target more affluent readers. Use QR code to drive recipients

    video from Harpers Bazaar editotrends.

    Th C i

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    The Creative

    Track clicks by individual, measactivity, identify platform and ge

    information. Monitor navigation patterns and

    commerce metrics.

    Insure that the data collected oprivacy guidelines, yet offers vamarketing data back to retailer

    Design as catalog/magazine suinsertion to allow for easy use bretailer & publisher mailings.

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    T ti i d i

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    Tactics in design

    Personali

    Closest Re Use of QR Readable

    Tablet dev

    Tactics in design

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    Tactics in design

    Personali

    Closest Re Use of QR GURL web

    Tactics in design

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    Tactics in design

    Personali

    Closest Re Use of QR GURL web Harpers Bfashion tr

    Tactics in design

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    Tactics in design

    Personali

    Closest Re Use of QR GURL web Harpers Bfashion tr Spotlight

    Tactics in design

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    Tactics in design

    The idea is simple ::

    + One-to-one Marke

    + Relevant Content/

    + Cross Media execu

    = Customer Engagem

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    Copyright 2012 Hewlett-Packard Development Company, L.P.

    The information contained herein is subject to change without notice.

    The LoraxHewlett-Packard, Graphic Solutions Business, Americas

    HP INSPIRE

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    Design

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    Design

    Components

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    Components

    Lesson Plans f

    Writing Contesstudents

    Scholarships' f

    Keepsake for P

    4

    Writing Contest

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    Writing Contest

    Writing Contest tied to HP INSPIRE that uses creative

    imagery from film to create a book

    Parents/Teachers asked to work with kids to write a story on

    sustainability and the environment

    Student writing contest with prizes including:

    $10,000 scholarship

    Lorax prizes plus HP computer and Envy printer

    Tactics in design

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    Tactics in design

    Offer Lesson P

    teachers Offer Writing C

    students

    Entry process

    Tactics in design

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    Tactics in design

    Offer Lesson P

    teachers Offer Writing C

    students

    Entry process

    Creation tool

    Tactics in design

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    Tactics in design

    Offer Lesson P

    teachers Offer Writing C

    students

    Entry process

    Creation tool

    Tactics in design

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    g

    Offer Lesson P

    teachers Offer Writing C

    students

    Entry process

    Creation tool

    Tactics in design

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    g

    Offer Lesson P

    teachers

    Offer Writing C

    students

    Entry process

    Creation tool

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    Highlights

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    115K Teacher kits were delivered to targeted schoolsfeaturing our curriculum and promoting the contest

    94 of teachers surveyed integrated the program intotheir lesson plans

    94 of teachers used or planned to use the onlinewriting tool with their class

    87 of teachers surveyed said they found the In-School print program to be useful

    93 of teachers said they want to use more programslike this in the future!

    g gEvery Inkling Makes a Difference program reached over 12

    Million kids and their families!!