StarchMetrix

1. StarchMetrix GfK MRI Sharpening the Focus of Magazine Accountability

2. Context: The Advertising Spend Story • Concurrent with the downturn of the economy, the US saw major declines in advertising spending across all media between 2008-2009 • Stabilization and rebound have been slow, in particular for some media • Competition for advertising budgets has only increased Source: Barclays Capital, 2011

3. The Print Industry Predicament Betsy Frank Chief Research & Insights Officer Time Inc. ARF Measurement 3.0 June 25, 2008 “The value proposition between consumers and magazine brands has never been stronger.” “Unless we find a way to communicate that value to advertisers, magazines will not survive as a viable and valued advertising medium.” “Without a system of measurement that is timely, accountable and most of all comparable to other media, we simply will not be able to communicate that good news.”

4. StarchMetrix solves three fundamental business problems facing the print publishing marketplace. The first is accountability. “It’s not just writing a check and hoping something good happens. Is there going to be a return on investment, and how will I know?” Paul Grogan CEO, Boston Foundation “With Starch AdMeasure, MRI has taken another big step towards helping to substantiate the power of print for marketers pursuing better proof of return on objectives.” Brenda White, Starcom USA

5. The second fundamental business problem facing the print publishing marketplace is comparability. InternetChanged the ROI game by offering ad performance metrics such as click-through and cost-per-click. TelevisionIn 2007, Commercial Ratings (C3) became the ad-buying currency for the $70 billion TV market, replacing 65 years of program ratings. OutdoorMoving from an “opportunity to see” metric to a “likelihood to see” metric.

6. The third fundamental business problem solved by StarchMetrix is timeliness. New print ad readership data enters the marketplace every week, generating conversation.

7. StarchMetrix moves print measurement from vehicle exposure to advertising return on investment, enjoyed by other major mediums. Degree of relevance toadvertisers Relevant measures • Sales Response Ad-related purchase behavior • Advertising Response Actions taken • Advertising Persuasion How an ad influenced consumers who saw it • Advertising Communication How well ad content is remembered • Advertising Attentiveness Who paid attention to an ad • Advertising Exposure Exposure to both vehicle and ad • Vehicle Exposure Exposure to and attention paid to vehicle • Vehicle Distribution Physical units by which ads are distributed

8. Ways to Leverage StarchMetrix Data • ROI metric of a print campaign • Learn how your ads performed in different magazines & different ad positions, as well as by size & color • Determine how your ads/campaigns performed against those of your competitors/category • Discover whether the number of ads in an issue affects readership scores • See if within a competitive set, one title consistently outperforms others for certain brands • Explore whether ad readership and actions taken scores differ by demographic • Find out how readers feel about your brand (by publication) • Determine if the additional costs of premium positions reflect higher noting or actions taken scores

9. GfK MRI Starch - Some Background Information (United States) • For 85 years, the industry gold standard for print ad research with detailed ad readership metrics • 2009 database of measured issues: 611 • 2010 -2012 – close to 200 titles, every issue, every national ad (1/3 page or larger) – approximately 3000 issues measured, ~150,000 ads (per year measured)! • May 2011 – Starch began measuring digital magazine editions (tablet, eReader, Zinio/Coverleaf) • GfK MRI brings together Starch data with audience data to provide ad audiences

10. GfK MRI StarchMetrix Methodology • All surveys conducted online • Online panel sources used for sample • In the US, 4 panels used (other countries have used different numbers of panels for sample) • 125 completed surveys for every group of 25 ads measured • Respondents are pre-screened on title readership and then must qualify as having read the given issue • (in the US) Starch data weighted to GfK MRI National Study (print audience currency)

11. StarchMetrix: Main Metrics • Noted– % of readers who remember having previously seen the ad in the study issue • Associated– % of readers who not only Noted the ad, but also knew who the advertiser was • Read Any– % of readers who read any part of the ad’s copy • Read Most –% of readers who read more than ½ of the ad’s copy • Reader Actions Taken– the number of Noters who took an action as a result of seeing the ad • Brand Disposition– the extent to which readers of the publication are favorably disposed towards specific advertised brands • Brand Influence– Recent brand purchase or recommended brand in last 2 weeks

12. Vanity Fair - May 2011 LOUIS VUITTON JEWELRY Category: Jewelry 1S4| Page 10 Data based on 9 or fewer respondents are presented in red italics

13. Current Starch AdMeasure Subscribers in the United States • Agencies Cont’d • OMD • UM • Zenith • Carat • The Martin Agency • MPG • PHD • Allscope Media • Kelly Scott Madison • Advertisers • Aveda • Purina • Sherwin-Williams • Progressive Insurance • Crate & Barrel • Michael Kors • Publishers • Condé Nast • Meredith Corporation • Rodale • Time Inc. • American Express Publishing • ESPN • Hearst Magazines • Bonnier • Every Day with Rachael Ray • The Week • Johnson Publishing • Wenner Media • Smithsonian • Agencies • Group M (Mindshare, Mediaedge, Mediacom) • Starcom • Mediavest

14. StarchMetrix In Other Countries • Canada – Syndicated study launched in the spring of 2011 • United Kingdom – Large-scale project conducted in early 2011, discussions continue about launching syndicated study • China – Test conducted in fall 2011 • Finland – Test conducted in fall 2011 • Czech Republic – Test launched March 2012 • Singapore – Test launched March 2012 • Hong Kong – Test launched March 2012 • Australia – Test planned for Q2 2012

15. Presenter: Michal Galinmichal.galin@gfkmri.com