How Media Works: Advertising and the Purchase Funnel for Furniture, Mattress or Carpet/Flooring Store Advertising 1 A Yankelovich Study for the Television Bureau of Advertising

Study Objectives Determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand: The role of television advertising in driving consumer actions throughout the purchase decision process How television interacts with other media platforms, including new media such as the Internet How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle 2 Source: TVB/Yankelovich “How Media Works,” April 2009

MethodologyMethodology Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them. Interviews took place January 29 to February 10, 2009; Super Bowl Sunday was excluded. Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them. Each respondent then completed an ad survey for up to three of these categories. The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc. The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied. 3 Source: TVB/Yankelovich “How Media Works,” April 2009

One-Third of Respondents are In the Market 4 “Are you currently considering a purchase in the Furniture, Mattress, or Carpet/Flooring Stores Category?” (Asked of those who recalled seeing a TV ad for furniture, mattress, or carpet/flooring stores in the last 2 months) Source: TVB/Yankelovich “How Media Works,” April 2009

Customer Profile: Furniture, Mattress or Carpet/Flooring Store Advertising 5 Source: TVB/Yankelovich “How Media Works,” April 2009 Saw an Ad in This Category that Made an Impression Currently Considering a Purchase in this Category Made a Purchase in this Category in the Past 6 Months Made a Purchase in this Category in the Past 4 Weeks Male 43.6%36.2%37.6%29.3% Female 56.4%63.8%62.4%70.7% %35.7%36.1%26.8% %67.9%64.7%48.8% %66.3%60.9%43.9% %26.5%30.1%43.9% Urban 34.9%36.7%35.3%34.1% Suburban 43.8%42.9%48.1%53.7% Rural 21.3%20.4%16.5%12.2% HHI <$30K 24.4%23.0%21.1%19.5% HHI $30-$70K 41.4%37.2%37.6%46.3% HHI $70K+ 25.5%32.1%35.3%26.8% HHI $100K+ 11.8%17.3%19.5%7.3%

Over a Third of Consumers Recently Saw a TV Ad for a Furniture, Mattress, or Carpet/Flooring Store That Caught Their Attention 6 Saw an ad that got your attention: Source: TVB/Yankelovich “How Media Works,” April 2009

A Third of Those Who Recently Saw an Ad in This Category Say They Bought a Related Product/Service in the Past Year 7 Source: TVB/Yankelovich “How Media Works,” April 2009 Last time made a furniture, mattress or carpet/flooring store purchase: 32% of those who recently saw a furniture, mattress or carpet/flooring store TV ad made a purchase in the past year 42%

Two-thirds of Those Who Saw the Furniture, Mattress or Carpet/Flooring Store Ads Remember Them Positively 8 Source: TVB/Yankelovich “How Media Works,” April 2009 Type of impression made by furniture, mattress or carpet/flooring store TV ad: 65% of those who saw these advertisements rated them positively

Furniture Ads Are Seen as Informative and Attention-Getting 9 Source: TVB/Yankelovich “How Media Works,” April 2009 Ratings of Furniture/Mattress/Flooring Store Television Ads: Total Furniture How much did it get your attention? 54% total 47% furniture 43% total 34% furniture How relevant was it? 53% total 52% furniture How informative was it?

TV Ad Viewers Are Likely to Consider a Purchase, or Seek More Information 10 Source: TVB/Yankelovich “How Media Works,” April 2009 Actions Taken After Seeing TV Commercial for Furniture, Mattress or Carpet/Flooring Stores Furniture, Mattress or Carpet/Flooring Stores Any (Net)39% Considered purchasing the product or service18% Talked with others about the advertisement13% Remembered you had seen the product or service advertised before11% Went online to learn more about the product or service advertised9% Visited a store or location to learn more about the product or service7% Purchased the product or service in a store5% Tried to find the advertisement on the Web3% Looked in a newspaper or magazine to learn more about the product or service 2% Purchased the product or service online1% Contacted the company in the advertisement1% Sent someone an about the product or service1% Sent someone a Web-site link about the product or service1% Other action1% Did nothing61%

Nine-in-ten consumers who saw TV ads in this category report seeing the ads multiple times 11 Source: TVB/Yankelovich “How Media Works,” April 2009 Number of times saw furniture, mattress or carpet/flooring store TV commercial in past 2 months:

Multiple Exposure to TV Ads Leads to a Much Higher Purchase Consideration 12 Source: TVB/Yankelovich “How Media Works,” April 2009 Among those who recently saw a TV ad for Furniture, Mattress or Carpeting/Flooring store # TV Ad Exposures Furniture/Mattress /Flooring Store Recall 1-3 ad exposures Recall 4+ ad exposures Any (Net) 39%34%43% Considered purchasing the product or service 18%15%20% Talked with others about the advertisement 13%10%15% Remembered you had seen the product or service advertised before (i.e., the newspaper, radio, or the Internet) 11%7% 14% Went online to learn more about the product or service 9%8%9% Visited a store or location to learn more 7%6%8% Purchased the product or service in a store 5% 6% Tried to find the advertisement on the Web 3%4%3% Looked in a newspaper or magazine to learn more 2%3%2% Sent someone an about the product or service 1% Contacted the company in the advertisement 1% Sent someone a Web-site link about the product or service 1% Purchased the product or service online 1% 0% Other action 1%0%2% Did nothing 61%66%58% Actions taken after seeing a Furniture, Mattress or Carpet/Flooring Store TV ad

Those Who Saw TV Ads in the Furniture, Mattress or Carpet/Flooring Store Category Also Recall Newspaper Ads 13 Source: TVB/Yankelovich “How Media Works,” April 2009 Saw ad for same product or service in a media other than TV: Total Furniture/Mattress /Flooring Stores Index to Total Any (Net)46%42%91 On the Internet20%9%45 In a newspaper18%24%133 On the radio12% 100 In a magazine11%7%64 In an offer8%3%38 On a billboard or other outside sign7%4%57 Other media3% 100 Did not see, hear, or read in any other media35%41%117 Not sure19%18%95

Furniture/Mattress/Flooring Stores Advertising Impact at Various Stages of the Consumer Purchase Funnel 14 Source: TVB/Yankelovich “How Media Works,” April 2009 AwarenessInterestConsider Want toVisit Make Purchase Purchase Store/Website Purchase

Furniture/Mattress/Flooring Stores Media Impact at Various Stages of the Consumer Purchase Funnel 15 Source: TVB/Yankelovich “How Media Works,” April 2009 Media cited by less than 3% of respondents were incorporated into the total for “other.”

ConclusionsConclusions Over one-third of consumers are in the market for products in this category. This category is defined by a long purchase cycle; only 7% of consumers are in the purchase phase at any given time. Television advertising awareness is high, and TV ads are effective at creating consideration and conversation, and driving store traffic. TV is the dominant media driver, and is most effective mid-funnel, in the Consideration phase. Closing deals in this category happens in the showroom; driving consumers to the showroom is key. 16 Source: TVB/Yankelovich “How Media Works,” April 2009