Digital bootcamp

Agenda Importance of digital media Newspaper websites To our business To our advertisers Newspaper websites How you can sell digital Impressions Ad sizes Targeting Understanding share of voice Applying the sales process Q&A

Importance of digital media Why is digital media so important? In the next few slides we will first talk about what digital media means to our business and what it means for our advertisers.

Importance of digital media Overall ad spend is up Newspapers currently losing share to traditional and emerging media Growth in digital advertising spend represent and great opportunity for growth FOR OUR BUSINESS: - Final estimates show 2010 advertising spend showed 1.4% growth overall Newspaper spend -8% for 2010 (Gannett -5.2%) and - 6% for 2011 (Gannett budgeted -1.2%) Digital advertising up- Search and display both up in 2011 with continued projected growth for 2011 Means advertisers are shifting dollars, not stopping advertising More fragmentation Cable and tv (for the most part) have and will continue to see growth. Estimates based on prior year percentage growth.

Importance of digital media Overall ad spending expected to show steady but nominal growth through 2015 – total of 1% growth Online ad spending broke records in 2010 Digital expected to continue to take share from most traditional media, except TV TV represents biggest opportunity to shift share FOR OUR BUSINESS: US ad spending on television, internet, print, radio, directories and outdoor will reach $154.6 billion in 2011 and continue to make incremental gains through 2015. Closer look at spending shows -overall ad market is shifting -digital takes significant share mainstay advertising media - Overall dollars inching up just 1% Online ad spending broke records in 2010 Will do so repeatedly between 2011 and 2015. Internet ad dollars have already shot past newspaper spending, and will surpass all of print by 2013. Overall, digital is now a must-have for marketers Signs are not bad for all traditional media. Television ad spending will see healthy growth and maintain a market share of around 39% Tv’s ongoing slice of the advertising pie suggests TV is not being hurt by the transition to digital. Projected tv dollars project one of our greatest opportunities to shift share to digital without shifting share from print.

Importance of digital media In 2010, digital represented 11.6% of total advertising revenue for USCP To-date in 2011, digital represents 13.3% of total advertising revenue The goal is for digital to represent 20% of total advertising revenue FOR OUR BUSINESS: For the US Community publishing division, digital revenues represented 11.6% of all ad revenue in 2010. 13.3% year- to-date in 2011. South was at 12% for 2010 and 13% year-to-date for 2011. Overall goal is to get to digital ad revenue representing 20% of total, without coming at the expense of print.

Importance of digital media 1995: AOL introduces flat rate access to 16M users 1998: Google founded and accessed by 147M users 2006: 1 Billion online users 2010: 1.6 Billion online users Internet Users in the World: Growth from 1995 to 2010 FOR OUR ADVERTISERS:

Importance of digital media FOR OUR ADVERTISERS:

Importance of digital media The Internet’s impact on retail sales is not limited to what is bought online. Cross-channel shoppers are using the web as a product research tool, regardless of whether a purchase takes place on a website or in a brick-and-mortar establishment. In 2012 cross-channel sales is supposed to account for 38% of total U.S. retail sales.

Importance of digital media 57% of shoppers do their research using a combination of store visits & online investigation before making a purchase 57% What is most important during their online investigation: 54% cited retailer website 50% cited search engines Source: Multichannelmerchant.com; wholesalecentral.com

Importance of digital media 71% went to the store to shop 62% bought After online research Source: Multichannelmerchant.com; wholesalecentral.com

Newspaper websites Why is digital media so important? In the next few slides we will first talk about what digital media means to our business and what it means for our advertisers.

Newspaper websites Show high value to consumers for online local content The most used source for online local content Rank first among all sources for trustworthiness, credibility, and being the most informative place to find local content of all types – including news, information, entertainment, sports and classifieds content Consumers consider them the most trusted source of online advertising Advertising is perceived to be current, credible and relevant to them perceived to be more current, credible, and relevant to them

Newspaper websites One site versus many Local newspaper sites compete most closely with local TV station Most markets have one primary newspaper site but many have an abundance of TV station sites Diminishes the presence of each TV site, leaving the newspaper site as the clear leader for local online news

Newspaper websites Total newspaper.com users in the community: (Unique visitors) Newspaper.com is the #1 Source for online news and information in the community. 77%

Newspaper websites Minutes spent on our newspaper.com each month: (Insert total minutes) Newspaper.com users visit often, x times per month and are highly engaged, viewing x number of pages during each visit. Example only: Omniture GRAPH Total minutes Minutes per visit Visits per month

Newspaper websites An appealing audience Both men and women (50/50) Middle to upper incomes (7 in10 earn $50K+) Home owners (79%) Work in the community (83%) Several households with children Boomers account for 54% of all users on the site Young professionals account for 29% of all users Adults 55+ are the fastest growing segment (25%)

How to sell digital Why is digital media so important? In the next few slides we will first talk about what digital media means to our business and what it means for our advertisers.

How to sell digital A digital display/ banner ad is a graphic used as an advertisement. An impression is the number of times an ad is served and/or displayed on a page. When the entire page loads into your computer, we can deliver one ad impression per page view (set of eyeballs). A click through is when a site visitor clicks on a link or banner ad (request for information).

Sits on top/bottom of the Page How to sell digital The Leaderboard Size: 728 x 90 Sits on top/bottom of the Page

Sits on left or right rail; or Center of Content How to sell digital Skyscraper Size: 160 x 600 Sits on left or right rail; or Center of Content

Sits within Page Content How to sell digital Large rectangle/ Poster/ Island Size: 300 x 250 Sits within Page Content

How to sell digital Magazine Size: 300x600 High impact ad Sits within Page Content FLEX AD POSITION 300x600

Pencil/ Sliding Billboard How to sell digital Launchpad/ Pencil/ Sliding Billboard Size: 940x30 High impact ad Expands to 940x600 Pushes down content

Pencil/ Sliding Billboard How to sell digital Launchpad/ Pencil/ Sliding Billboard Size: 940x30 High impact ad Expands to 940x600 Pushes down content

What their interests are How to sell digital Where they are Who they are What their interests are Geography Zip, Age and Gender Section or niche site 26

How to sell digital Understand share of voice We are selling a piece of the pie Percentage of total impressions by section or site 3% to 5% frequency minimum recommended 10 to 15% frequency optimal for high impact 25%+ frequency is targeted section/ sponsorship- type