2012 Media Plan

Cathy Chao, Yuting Jiang, Kris Mattera and Monica Zurlinden

Company overview

• Founded 1999• $307.7 million in net revenues in 2010• Constantly growing, year-over-year• 4.1 Million customers• Almost 9.2 Million orders• Average order of $32.88

Products

• Personalized products and services (PPS)GROWING

• Prints (includes 4x6 prints, 5% of total rev)GROWING(4x6 prints = DECLINING)

• Commercial PrintingSTEADY

72%

27%

1%

PPS Prints Commerical

PPS – 72%

• Photo books• Cards & stationary• Calendars• Photo gifts• Home decor

Business

• Return customers = 72%• New customers = 17%

Q4 is Peak season – December is busiest month• 54% of 2010 revenue• 40% of orders• 56% of customers ordering• Higher average order ($44.41)

Partnerships

Industry and Competition

Objective 1

Marketing• Gain market share,

through growing brand awareness and increased product use/purchase of PPS, specifically custom photo books

Media• Reach the target

audience using broad reach media to increase national awareness.

• Leverage current relationships with other businesses to gain new customers and grow market share.

Objective 1, con’t

Marketing• Gain market share,

through growing brand awareness and increased product use/purchase of PPS, specifically custom photo books

Media• Direct media weight to

those moms (CMOs) most likely to be important targets.

• Additionally support opportunity markets representing greatest volume and growth potential.

Objective 2

Marketing• Position Shutterfly as

a premium online photo service focused on preserving memories and publishing high-quality, customized printed materials.

Media• Use media vehicles that

align with and reinforce Shutterfly’s premium brand message.

Objective 3

Marketing• Ensure Shutterfly

remains top-of-mind and within the consideration set during key periods.

Media• Use a strong effort

through high frequency media bursts, especially in the mid- to late- fourth quarter to achieve high levels of reach and awareness Shutterfly and its high quality photo books.

Targeting Strategy

Who Shutterfly Targets

“…what we call the 'CMO,' the Chief Memory Officer of the family. They're the ones responsible for capturing and sharing and telling the stories.”

- Shutterfly’s President & CEO, Jeffrey Housenbold

4 target types that overlap

CMOs (W21-54)• Bundle of Joy: W21-40,

married, HHI $50K+ with a child under 2 years of age

• Soccer Moms: W25-54, married, HHI $50K+ with a child between the ages of 6-11

4 target types that overlap

Happily Ever After• W18-34, engaged/recently

married (or close to someone who is), HHI $45K+

• Brides, MOB, MOG, Bridesmaids, friends

Bon Voyagers• A25-34, HHI $50K+, who

travel often

Media Target: CMOs

Greater population – current and potential• Current photo books users: 15.1 Million

women who have participated in photo album/scrapbooking in the last 12 months.

• Potential photo book users: 24 Million family households with kids under 18 (with parents 25-44)

• CMO life events (kids) mean they are more likely to be repeat customers.

CMO Demographic

Middle to upper-class• Indexes high with HHI of $50K+• 36% more likely to have a HHI above $150K

Ages 18-44• 38% more likely be 25-34

CMO Demographic/Life EventUsers have younger children• Child age: <12 months 122

Child age: 12-23 months 124 Child age: <2 years 120Child age: <6 years 125 Child age: 2-5 years 125 Child age: 6-11 years 109

CMO Psychographics

• Time with family• Preserving memories, having keepsakes,

documenting the past

CMO PRIZM – F2

“Young Accumulators”• Ethnically diverse• College educated• White-collar/professional jobs • Suburban and exurban areas• Large families• Upscale lifestyles• Includes: Upward Bound, Beltway Boomers, Kids & Cul-de-Sacs, Fast-

Track Families, and American Dreams

CMO PRIZM – F3

“Mainstream Families”• Middle- and working-class• At least one child• 25-54 years old• Lifestyles befitting large families in small

towns• Includes: New Homesteaders, Big Sky Families, White Picket Fences, Blue-

Chip Blues, Kid Country, USA, Shotguns & Pickups, Suburban Pioneers, Multi-Culti Mosaic

Venn Diagram

Women(18+):116,722,000

Women, principle shopper, married:67,915,000

Women who made photo

books/scrapbooked in the last year: 15,168,000

Targeting strategy

Geographic Recommendations

• National• MRI data shows users are more likely to be in

the West and Mid-West Census regions.

Geographic Recommendations

Anchorage, AK Salt Lake City, UT Las Vegas, NV Houston, TX Los Angeles, CA Chicago, IL Sacramento et al, CA Miami-Ft. Lauderdale, FL Bakersfield, CA Dallas-Ft. Worth, TX Honolulu, HI San Diego, CA Baltimore, MD Laredo, TX Washington et al, DC-MD F2 Young Accumulators

Geographic Recommendations

F3 Mainstream Families

Heavy-up Markets

• High indexing F2/F3 cities• Supported by MRI data (West, Mid-West)

Spending Strategy

Nationally – Defensive

Local- Opportunity

Scheduling

Shopping patterns

• Steady through Q1, Q2 and Q3• Peak season in Q4• December is busiest month

Q1 Q2 Q3 Q4

Media Consumption

• Busy moms on the go• Heavier readers of magazines (Q1-118, Q2-117)• Heavier Internet users (Q1-113, Q2-132, Q3-129)• Moms are prevalent in social media• Heavier consumers of OOH• Moderate consumers of newspapers• Lower consumers of Radio and TV• Media with shelf life/catalog value

Customer rituals

• Every year, pulls together a collection of photos for gifts and holiday cards to share with friends and family.

Breakfast, take kids to daycare

Work, check emails

Browse travel sites on lunch break

Go to work, catch up on favorite

blogs with Mobile apps. Yahoo!

Mobile for news

5:30 -7:00 P.M.

Read bedtime stories. No TV

for kids

Day in the Life

5pm: Pick up the kids 6PM:Cook dinner

and enjoy it with family

7pm: Bath time

9:00PM

Relaxed in bed, read

Real Simple, while

husband watches TV

Schedule strategy

• Concentrate on peak season, generating awareness early on to drive sales.

• Less of a focus during the off-season• Flighting

Q1 Q2 Q3Q4Q4

Media Strategy

Objectives and Strategy

• During the fourth quarter, use magazines to effectively extend reach to target CMOs on a national basis.

• During the fourth quarter, as budget permits, efficiently provide additional support via use of local magazine ad networks in key opportunity markets to extend reach and build impressions and awareness among CMOs in these important markets.

• Employ digital banner ads on select websites, including Facebook to efficiently deliver impressions nationally and to achieve adequate reach and frequency levels for high awareness among key user groups.

Objectives and Strategy

• Employ search engine marketing (contextual based search engine ads) to effectively reach CMOs who are in the consideration stage of the CDJ on a national basis.

• During the second and third quarter, use out-of-home placement in key market(s) frequented by the target to achieve awareness, generating awareness in the off-peak season.

Tactical Plan

OOHDigital/Online

Magazines

Out of Home Media

• 5% of Budget• $50,000• Flighting Q2

Out of Home: MCO

Billboards/Posters in Orlando International Airport (MCO) and around Orlando

• Big family tourist destination – where memories are made.

• 13th busiest airport in USA – 16.1 Million boardings

• Average HHI of passengers: $75,736

• 40% of passengers are 25-44Billboards & PostersTotal Cost: $50,000

Magazines

• 67% of budget• $666,630• Q4 only

MNI Family Network

• November, P4CB• American Baby, Disney

FamilyFun, Parenting: Early Years, Parents

• Can’t afford all pubs on a national level. Local buy targets opportunity markets. Increases awareness as peak season begins.

1 Ad - P4CB RHPCirculation: 980,510CPM: $170.58Total Cost: $167,255

MNI Family Network

• Atlanta, GA 119,370 $21,705 • Dallas/Ft. Worth 152,260 $27,685• Houston, TX 124,350 $22,610 • San Antonio, TX 108,630 $20,530 • LA Metro, CA 281,410 $44,185 • Chicago, IL 194,490 $30,540TOTAL 980,510

$167,255

Real Simple

• December -50 gifts for under $50 issue

• Rationale: 176 Index, 43% have kids

• Audience details here

1 Ad - P4CB RHPCirculation: 1,991,108CPM: $88.04Total Cost: $175,300

Disney FamilyFun

• December – Holiday Issue

• Rationale: 155 Index, 75.6% have kids

• Audience details here

1 Ad - P4CB RHPCirculation: 2,117,635CPM: $85.51Total Cost: $181,075

Everyday with Rachael Ray

• December – Holiday Issue

• Rationale: 144 Index, 53% have kids

• Audience details here

1 Ad - P4CB RHPCirculation: 1767409CPM: $80.91Total Cost: $143,000

Digital

• 28% of budget• $283,370 Total

Consisting of:• Banner Ads• Search Engine Marketing (Google AdWords)• Facebook advertising

Digital – Banner Ads

• Q4, increasing from Oct – Nov, peaking 4 weeks prior to Christmas.

Standard IAB sizesTotal Cost: $100,000

Digital – Banner Ads

Digital – Search Engine Marketing

• Q2 (15K) • Q3 (15K) • Q4 (100K), increasing

from Oct – Nov, peaking 4 weeks prior to Christmas.

Character limit, Text basedTotal Cost: $133,370

Digital - Facebook

• Q3 (10K) and Q4 (40K)• 153 index• 1,505,720 women in

the US, 21-44, college grad, who list “my kid,” “family,” “children” or “being mom” as interests/likes Character limit,

Text based & 1 imageTotal Cost: $50,000

Schedule goes here

• Cathy’s

Budget breakdown

5%

10%

13%

5%67%

OOHBanner AdsSEMFacebookMagazines

Overall reach

Total impressions (conservative)• 6,856,662 • Does not include Digital or OOH.

Thank you!

• Kristin• Monica• Cathy• Yuting