1. Important advertising trends of
2011 — how you can fully
capitalize on today's marketplace
opportunities

2. Areas covered
• The current state of our economy – and what
that means to us as Advertisers.
• An in depth look at the common problems that
advertisers are facing – and what the smartest
ones are doing about them.
• An assessment of today’s key advertising
vehicles, what’s working, and what’s not
• Initial reactions to Digital – how is this
performing?
• Exploring proven mediums for reaching your
ideal clients.

3. Consumers are watching their spending
U.S. Consumer Spending 14-day rolling average
90
80
70
60
50
40
Source: Gallup Daily, http://www.gallup.com/poll/112723/gallup-daily-us-consumer-spending.aspx

4. Unemployment is up
Unemployment
16,000
14,000
12,000
Thousands
10,000
8,000
6,000
4,000
1999 2001 2003 2005 2007 2009 2011
Source: http://econ.economicshelp.org/2009_12_01_archive.html

5. Consumer confidence is low
• Consumers’ assessments of their
own financial situation have
remained quite dismal despite
the expectation of improvement
in the overall economy.
• Just 20% of all households
reported their finances had
improved in early March
2011, barely above the sixty year
low of 16% recorded in
November 2009.
Source: University of Michigan’s Survey of Consumers Report, March, 25 2011

6. Index of consumer confidence
U.S. consumer confidence
average since 1978
120
110
100
Index value (1066=100)
90
80
70
60
50
40
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2011
Source: University of Michigan’s Survey of Consumers Report, March,25 2011

7. It is tempting for companies to cut back on
marketing when sales go down…
• Multiple studies show that
companies who increase
their recession marketing
efforts experience higher
sales during and for years
after as compared to those
who don’t.
• Let’s look at some data…
Source: "How Advertising in Recession Periods Affects Sales," American Business Press, Inc., 1979 , Facts on the value of marketing during an
economic downturn/recession; http://www.coin-
op.org/pdfs/Facts%20on%20the%20Value%20of%20Marketing%20During%20an%20Economic%20Downturn Recession_Press%20Release.pdf,:4.
Kijewski, Dr. Valerie.

8. Maintained marketing spend
through 1974-1975 recession
• Companies during the
1974-75 recession who
did not cut marketing
budgets experienced
higher sales and net
income during those two
years and the two years
following than companies
that made cuts during the
same time period.
Source: ABP/Meldrum & Fewsmith study, 1979

9. Maintained or increased marketing budget
through the 1981 – 1982 recession
• 600 U.S. companies were
analyzed during the 1981-
82 recession and the three
years following.
• Companies that
maintained or increased
their advertising
expenditures enjoyed a
256% growth by 1985.
Source: CARR Report, Aug 13 2001

10. Snap, crackle, profits
• During the Great
$ $ $
Depression, Kellogg doubled its
$
advertising budget, and heavily $ $ $
pushed its new cereal, Rice $
Krispies.
• By 1933, even as the economy
cratered, Kellogg’s profits rose
30%.
• And became and what it also
remains today: the industry’s
dominant player.
Source: The New Yorker http://www.newyorker.com/talk/financial/2009/04/20/090420ta_talk_surowiecki

11. Consumers feel advertising
is a sign of stability
• 48% of adults believe lack Advertising in down economy
of advertising during a keeps company top of mind
recession indicates the
business must be
struggling.
• 86% of executives agree
advertising in a down
economy keeps a company 86%
at the front of the
audience’s mind.
Executive poll
Source: http://www.marketinginsightstoday.com/archives/1223;http://www.jjhill.org/resources/press_releases/WomenVenture_03_24_09.pdf;
http://mystrategicplan.com/resources/does-your-marketing-budget-makeyou-look-fat/l;Yankelovich/Harris Study 2008

12. Long term advertising
creates a lasting impression
• In 2007, 100 year old Avon Co.
increased its advertising by
21%. The result?
• A 2008 record-breaking revenue
of $9.9 billion and 20% increase
in sales.
• Sales have continued to increase
approaching $11 billion in 2010
• “We won’t manage this company
for the short-term. We all know
how that movie ends.”
Andrea Jung
CEO, Avon
Source: http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=75872

13. Even luxury brands flourish in
difficult financial years
• New York based Tiffany & Co. did
not cut its marketing spend at all
during the 2001 recession.
• Sales have increased 100% since
that time.
• “Tiffany is about things that last.
And that perspective is perhaps
more important today than at any
time in our history.”
Michael J. Kowalski
CEO, Tiffany & Co.
Source: JCK-Jewelers Circular Keystone 11/1/08

14. So, its makes sense to continue to
advertise – but there still is a huge
issue to deal with:

15. The commercial noise
today is almost deafening
• In the 1970s, consumers were
exposed to about 500 ads per
day.
• Today, the average consumer
receives up to 20,000
commercial messages each
day.
• And since consumers have a lot
more media options, your
audience is much harder to
reach.
• This is called fragmentation, and
it’s affecting every business in the
world.
Source: QRS: “Don’t Interrupt Your Consumer; Engage Them.” 2011. http://www.qsrmagazine.com/outside-insights/don-t-
interrupt-your-consumer-engage-them
The Washington Post, "Skip Past the Ads, But You're Still Being Sold." 2009; http://www.washingtonpost.com/wp-
dyn/content/article/2009/08/14/AR2009081401629.html

16. The number of media vehicles
has increased dramatically
Consumer magazines are up 52% since
1998.
The number of web sites has
skyrocketed by 6,381% since 1997.
75% more AM/FM radio stations exist
than in 1990.
New online radio stations go live every
minute.
There are 300% more television stations
than in 1999.
Source: Arbitron Infin http://www.fcc.gov/mb/audio/totals/bt050930.html; The Influential's ; Keller & Berry; /sizeofweb.html;
http://www.boutell.com/newfaq/misc; http://news.bbc.co.uk/2/hi/science/nature/1738496.stm; Source: American Society of
Magazine Editors. “Number of Magazine Titles: A Magazine for Everyone” (database accessed 5/24/2010)
http://www.magazine.org/ASME/EDITORIAL_TRENDS/1093.aspx, ite Dial 2010: Digital Platforms and the Future of
Radio, http://www.edisonresearch.com/infinite_dial_presentation_2010_revb.pdf

17. Cutting a path to your customer
• With all these
advertising
messages, it’s a
challenge to
reach your customers.
• Almost every form of
media is experiencing
challenges with
consumer
engagement.

18. Viewing habits and costs over 30 years: a cost per
thousand home increase of 499%
Households
Cost per Cost per
Viewing
30 Seconds 1000 Homes
Average Minutes
1980 15,240,000 $57,900 $3.79
1990 12,540,000 $122,200 $9.74
2000 6,134,000 $82,300 $13.42
2005 6,043,000 $129,300 $21.45
2009 4,562,000 $103,700 $22.70
2010 5,248,000 $103,600 $19.74
Source: Nielsen Media Research, February Each
Year, http://www.tvb.org/rcentral/adrevenuetrack/media/media.asp?c=1b

19. They’re not watching your ads
even when they are watching programs
• Commercial skipping
costs TV advertisers $4
billion dollars per year.
• 70% mute commercials.
• Time-shifting machines
in 40% of U.S. homes.
• 50% of DVR
subscribers skip
commercials.
“TV Ads Hit $69B In '10, Digital Viewing Up.” April 21, 2011:
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=149150&nid=126025
Source: “The DVR Dilemma: Managing Consumer Behavior”; www.jupiterresearch.com, http://www.ehomeupgrade.com/2006/05/05/dvr-
commercial-skipping-could-threaten-8-billion-in-tv-advertising/; http://blogs.zdnet.com/ITFacts/?p=10466

20. Television advertising costs are UP
while viewership is DOWN
• The average TV
audience in 2009
was 54% smaller
than 1965, yet
average cost of
advertising
increased 426%.
• 78% of advertisers
say TV advertising
has become less
effective.
Source: http://tvbythenumbers.com/wp-content/uploads/2007/09/broadcastnetworksharebyseason0828.jpg; Television
Bureau of Advertising, 2009, TV Costs and CPM Trends.
http://www.tvb.org/rcentral/adrevenuetrack/media/media.asp?c=1b

21. But . . . More people are paying attention to events
• In 2011 there were 111 million
people watching the Super
Bowl which is a 30% increase 5,000
4,500
from 2005. 4,000
• The first game of the NCAA 3,500
3,000
Men’s Basketball Tournament 2,500
posted 1.2 million 2,000
viewers, 13% more than 1,500
2010. 1,000
500
• The Golden Globes had 0
21,000 more viewers in
2011, increasing to 17 million.
• Grammy Awards had almost
26 millions viewers, an
increase of 800,000 from
2010.
Source: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=144456&nid=123511, Nielsen
http://blog.nielsen.com/nielsenwire/media_entertainment/academy-awards-who-will-win-how-many-will-watch,
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=146983&nid=124897

22. News Audience Trends
Audience
Percentage
Change
from 2009-2010
Source: State of the News Media 2011: http://stateofthemedia.org/2011/overview-2/key-findings/

23. Social Media Scoops Every Major Story
Worldwide: but there are challenges
• Details are scarce.
• Credibility is
questionable.
• Information is
contradictory.
• It’s all happening
real-time.
• Not seeing big wins
reported.

24. Average click rates on ads for
most websites are dismal
• Time on the Internet is Percentage of people who click on
increasing, but people Internet banners on average
just aren’t clicking on 1.20%
the ads. 1.00%
1.00%
• “I think it’s interesting
0.80%
(that) in the digital
age, a number of 0.60%
people are 0.40%
0.40%
connecting, but not Less than
0.20%
necessarily 0.02%
connected.” - Mary Beth 0.00%
West, CMO Kraft Foods 1997 2001 Today
Source: Source: ZSmart Business, Imedia Connection, 2010

25. Paywalls are being added every day
• Paywalls are popping
up at publishers
worldwide.
• Actually showing a
decrease in visitors.
• “NYT Pay Wall Cuts
Online Traffic By 5%-
15%.”
Source: MediaPostNews April 12, 2011: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=148517&nid=125672

26. iPad Magazine Apps are all over the board
• Cost structures are being
created and modified.
• Uncertainty still exists.
• Same content and layout as
print version or modified for
digital platform?
• Who’s advertising and what
are the guarantees?
• “Many of these apps are
evolving so quickly that
today's flaws could be erased
with tomorrow's update.” –
Barb Palser
Source: American Journalism Review, March 3, 2011: http://www.ajr.org/Article.asp?id=5027

27. A lot of people talk about digital advertising
• Spending on digital
surpassed newspapers
for the first time in
2010.
• But … digital still does
not have proven ROI
and many think it never
will.
Source: Internet Ad Revenues Rebound to Record High in 2010. http://www.marketingprofs.com/charts/2011/4847/internet-ad-revenues-rebound-
to-record-high-in-2010?adref=nlt041511

28. Step back and take a look
at one company’s case study
• 2009 – Company pulled all
National TV Advertising to
move to digital.
• Hoped to catch attention of
home buyers.
• Didn’t see results and ended
up changing overall ad spend.
• “We thought it was time to
clarify what we are and what
consumers feel about us. So it
was time to go back into the
consumer space with all
media.“ – Beverly Thorne, Chief
Marketing Officer, Century 21
Source: Advertising Age, March 28, 2011: http://adage.com/article/news/century-21-back-big-tv-buys-2012-super-bowl-spot/149615/

29. Internet advertising still unproven
• Time on the Internet is increasing, but
people just aren’t clicking on the ads.
• In 2009, companies spent about $22.7
billion on Internet advertising, yet
click-through rates are averaging only
0.2% of viewers.
• Internet ad CPMs have decreased
over 50% since last year, acquisition
costs are high, and most websites
aren’t even achieving a 2% conversion
rate.
Source: Source: ZSmart Business, Imedia Connection,
2010 http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100504;; Grab Stats:
http://www.grabstats.com/statcategorymain.asp?StatCatID=4; http://www.i-advertising.com/

30. Direct Mail is tougher than ever
• The average American
receives 560 pieces of
direct mail each year.
• 44% goes in the
garbage unopened.
• 97% to 99% of
recipients never
respond.
Source: Proven Ways To Increase Sales And Boost Direct Mail Response Rates, August 2009, Articlesbase, by Andrea Ratajczak; and
Direct Mail Statistics You Can Use, By Andrew Michaels | Article Abstract, http://www.articlesphere.com/Article/Direct-Mail-
Statistics-You-Can-Use/150454, February 2010.

31. The radio audience
is increasingly fragmented
Source: Arbitron, “The Infinite Dial 2010: Digital Platforms and the Future of
Radio,”http://www.arbitron.com/downloads/infinite_dial_presentation_2010_reva.pdf; Bridge Ratings, “Satellite Radio Brand
Appeal,” November 2009 http://www.bridgeratings.com/; Federal Communications Commission, Licensed Broadcast Station
Totals (1990 to Present) http://www.fcc.gov/mb/audio/totals/index.html

32. As radio advertising becomes
less effective, revenues slide
Source: Radio Advertising Bureau, “Radio Revenue Trends,” http://www.rab.com/public/pr/yearly.cfm

33. There’s one medium you
can use to take full
advantage of your media
budget?
Newspapers

34. We all need media that
reaches our audience
• Would you like to
advertise in media
that reaches more
than 50% of U.S.
adults every day?
Source: Clark, Martire & Bartolomeo, Inc. Survey October 2007,
http://www.nynewspapers.com/Libraries/PDF_s/Newspaper_Drives_Online_12-7.sflb.ashx, MRI 2009, : “
Scarborough: Most Americans Still Read Newspapers” Newspaperproject.org 11/18/2009)
34

35. Reach customers who can
afford your products
• Would you like to
advertise in media
that reaches 57% of
the population with
incomes over
$75,000?
Source: Newspaper Association of America, Daily Newspaper Section Readership Report, 2008.
http://www.naa.org/docs/Research/Daily-Readership-Active.pdf
35

36. Pinpoint specific local
audiences across the country
• Look for a media
vehicle that reaches
the majority of
homes...
• A media that enables
you to reach people
both locally and
across the country.
Source: Newspaper Advertising - Advantages & Disadvantages, by Mike Brassi,
http://www.websitemarketingplan.com/small_business/newspaper.htm
36

37. Reach your audience
when they are receptive
• Look for a media
where your ad can be
examined at leisure
without limited
exposure.
• Where your audience
can take their time.
Source: Newspaper Advertising - Advantages & Disadvantages, by Mike Brassil
http://www.websitemarketingplan.com/small_business/newspaper.htm
37

38. People take their time reading the paper
• Time spent reading Sunday
print paper
– Over 60 minutes: 45%
– 30 to 60 minutes: 32%
• Time spent reading daily print
paper
– Over 30 minutes: 45%
– 16 to 30 minutes: 34%
Source: Newspaper Association of America, http://www.naa.org/docs/Research/newspaper-reader-engagement-06.pdf

39. Survey respondents who read newspaper
preprints account for 87% of all adults
Regularly check Sunday inserts from store categories
Grocery or food stores 80% Question:
Department stores 69 Please tell me if
Discount stores 63 you regularly
Drug stores 53 check Sunday
inserts from any
Home electronics stores 49
stores from the
Home building centers 43 following general
Office supply stores 39 categories.
Computer stores 38
Home furnishings stores 33
Sporting goods stores 33 Base = Adults who ever
Appliance stores 25 read or look at newspapers
advertising inserts
Cell phone stores 11 (87% of sample)
Source: How America Uses Advertising 2009 Prepared by MORI Research and NAA

40. People read on-page
advertising as they browse
• As a matter of routine, 8 in 10
newspaper readers scan on-page ads
as they page through the newspaper.
• Two-thirds (63%) of newspaper
readers say they usually read
advertising as they page through the
newspaper.
• Scanning becomes reading when
they come across something that is
relevant to them in a substantive
way, or has interesting creative
content, or both.
Source: How America Shops & Spends 2011 Prepared by Frank N. Magid Associates and NAA

41. Associated Context can be very effective
• You can tie your ad to
the content on the
page.
• Health, sports, travel,
beauty are all
possibilities.
• Positive associations
trigger better response
rates and recall ability
among consumers.

42. While doing your planning, know that print and
the Internet work well together
• Time after time, marketers
have proven that even when
Internet advertising is
appropriate, print is the “push”
that complements the web’s
“pull.”
• A print piece not only drives
additional traffic to the
website, it increases the
amount that people spend
when they arrive.
Source: Deliver magazine, July 2010

43. Newspapers are driving online traffic
• Newspaper websites continue to grow rapidly, reaching 83.7 million unique
visitors in April 2010, a 57% increase from 2004.
• “As the industry continues to expand its digital portfolio, readers are visiting
newspaper websites in record numbers for in-depth news and information
as well as hyper-local information.”
-John F. Sturm, CEO & President, Newspaper Association of America
Source: 2010 - “Newspaper web Traffic in Top Markets Leaps To An All-Time High.” http://www.nnnlp.com/news/news-05-24-
10.php, Newspaper Association of America. Newspaper websites Custom Chart. http://www.naa.org/TrendsandNumbers/Newspaper-
websites.aspx . BizReport.com “record visitor numbers,” July 24, 2007
http://www.bizreport.com/2007/07/online_newspapers_experience_record_visitor_numbers.html#, Newspaper National Network.

44. Newspapers drive online action
• 73% of readers visited Web Percent of consumers
acting on print ads
sites, used online search, or 90
made an online purchase in 80
following up on advertising 70
they saw in a newspaper in 60
the previous month. 50
• In 2009 the number was 39% 40
but in less than two years 30
people have become much 20
more engaged in the online 10
research and taking action
0
based on seeing
2011 2009
advertisements in the paper.
Source: How America Shops & Spends 2011 Prepared by Frank N. Magid Associates and NAA

45. Summary of Findings:
• The best companies of our time continue to
advertise, regardless of the economy.
• To break through fragmentation and manage your
budget, you need to use the vehicles that reach your ideal
client.
• Unproven advertising vehicles need time to prove
themselves and when used right, prove to complement
traditional media
• The right advertising in the right medium is key to building
successful campaigns
• As digital continues to grow, smart companies are using
traditional vehicles to increase impact, create more
traffic, and strategically grow their business

46. Who is Mediaspace?
• Mediaspace Solutions is a privately-held company
headquartered in Norwalk, CT. We also have
offices located nationwide in Atlanta, Chicago, Los
Angeles, Minneapolis and New England.
• With expert service and custom-built technology
systems, we help national and regional
advertisers maximize their print and interactive
advertising budgets.
• We have an experienced and sophisticated
management team focused on serving you and
negotiating the best possible rates and
placements.
46

47. We help companies
keep their eye on the ball
• 75% of companies who outsource important
functions to other companies “significantly
outperform their peers on three key business
metrics:”
– Reduced administrative expenses
– Increased growth in return on assets
– Higher growth in earnings before interest
and taxes
• No one knows your business better than you.
But by focusing on your core strengths and
your customers, you have time and resources
to stay on top of your customers’ needs.
47
Source: Business impact of outsourcing—a fact-based analysis, IBM Global Services, 2006 [ABA2 100]

48. Why wouldn’t you rely on experts?
• A good advertising
solutions partner already
knows the ropes, the
organizations and the
personalities.
• Is it really worth the
training time, personnel
and resources to do all
this yourself?

49. American Express Success Study
• Newspaper programs used in past for AMEX
proved ineffective at producing desired results
and they needed a change – They called
Mediaspace.
• We implemented a new approach using
newspapers and delivered more highly
visible, guaranteed ad placements – where their
clients were reading.
• We also saved them $300,000/drop.
• A year later, they raised their newspaper spend by
1,000%; within 18 months, over 1,500% - and are
now well into an 8 figure spend.
• Clearly, this change in strategy is working.

50. Jessica Birk says it best…
“As the leader in accountable media
solutions, ID Media looks for
partners like Mediaspace Solutions
that can save our clients like
American Express over 85% off on
their media while finding ways to
provide added value, exceptional
positioning, and improved ROI.”
Jessica Birk
Vice President of ID Media

51. U.S. Census Success Study
• This critically important newspaper plan in
2010 required both deep analysis and deep
discounts to achieve their required results.
• They needed to reach everybody – in large
and small markets, with a tight budget.
• Plan recommendations involved both large
and small market newspapers, often with
comprehensive ZIP analysis.
• Newspapers contributed to their overall
success – 72% response vs. 64% in
previous campaign.
• Newspapers proved to STILL be their key
vehicle for success!

52. Takeda Success Study
• Takeda’s largest competitor
was about to receive an FDA
warning announcement which
was sure to make big news
• Actos wanted its brand’s
safety message in key
markets ASAP as consumers
read headlines/looked to
switch Rx
• Within 48 hours of getting go-
ahead, a 150+ newspaper
plan was fully executed with
low CPMs/100% FDA
compliance

53. Let our Total Solutions Team
work for your success
• When clients work with us they are
assigned an entire Total Solutions
Team
– Account development
– Ad operations
– Finance
• You will receive regular and clear
reports on your advertising activity.
• You can call anyone on your team
directly for any answers you need.
• We provide customized solutions for
YOUR business.

54. Just a few of our other clients

55. Suggested next steps…
• For a limited time, Mediaspace Solutions is offering a
complete audit of all of your newspaper and advertising
activities.
• Our experts will reveal what we believe to be your
opportunities, and advise you on areas that you could be
doing even better.
• We will show you our detailed Case Studies, and explore
where we can create similar success for you and your
company.

56. Best Pricing
Best Placement
Best Targets
Best Service
GUARANTEED!

58. Share of total ad spend by
medium in 2010
Percent of Total Ad Spend
40.00%
35.00%
30.00%
25.00% Print is 23% of
20.00%
15.00% all ad spend
10.00%
5.00%
0.00%
Source: Forecast: TV Regains Hefty Ad Levels; http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=147613&nid=125220, March 2011