The Power of Two Presented for: The Ad Group Presented by: Aimee Ruhl Cheryl Riley Terry Wilson Lee Tank July 24, 2003 QCTimes.com

Description of Quad-City Market Study AREA COVERED:Quad-City Market Area, including Rock Island County, Illinois and Scott County, Iowa. RESPONDENTS:Men and women, age 18 or older. METHOD:Computer assisted telephone interviews (CATI) using a 20-minute questionnaire, plus a 12-page mail booklet. INTERVIEWING PERIOD:September 20 through October 30, Mail questionnaires through December 31, SAMPLE SIZE:680 telephone interviews. 391 completed self-administered questionnaires. SAMPLE DESIGN:Probability sample, using a systematic selection of telephone households and respondents within households. Both listed and unlisted telephone households included. Up to eleven attempts made to interview the selected respondent in each eligible household. POPULATION PROJECTION:232,000 adults, based on 2002 Experian estimates. SAMPLING TOLERANCES:Results based on 680 telephone interviews are accurate within a range of plus or minus 4 percentage points. Results based on 391 mail questionnaires are accurate within a range of plus or minus 5 percentage points. ABC CERTIFICATION:The study was conducted using the methodology approved by the Audit Bureau of Circulations for their Reader Profile Service.

Presentation Objectives  Provide newspaper readership facts based on Quad-City Times research information  Provide Sample TV media plan for the Quad-City market  Demonstrate how newspaper advertising complements television advertising  Demonstrate how newspaper advertising improves media delivery

Demographic Profile Total Adult Population230,142 Total Number of Households123,100 Population by GenderAverage Household Effective Buying Income Male Adults110,037 Scott County$43,015 Female Adults120,105 Rock Island County$41,776 AgeIncome %10%Under $20,00013%10% $20,000-$ 24, $25,000-$29, $30,000-$34, $35,000-$49, $50,000-$74, $75,000-$99, $100,000 and up Two-Income Household (Those Who are Married)County of Residence Two Incomes66%67%Scott51%69% Single Income3433Rock Island4931 Quad City Market Q-C Times Readers Quad City Market Q-C Times Readers

Readership  Quad-City Times Readership in Scott & Rock Island counties – 10/2002 –Daily in the past week – 123,500 adults aged 18+ –Saturday last week – 92,400 adults aged 18+ –Sunday last week – 113,700 adults aged 18+ Source: Belden Associates, 10/02

Newspaper Readership Source: Belden Associates, 10/02 Base: Adults in Scott & Rock Island Counties Any Newspaper Quad-City Times Moline Dispatch Rock Island Argus Other Daily Newspaper Weekday - Past 7 Days Any Newspaper Quad-City Times Moline Dispatch Rock Island Argus Other Sunday Newspaper Sunday – Past Month

Base: Adults in Scott & Rock Island Counties In a Typical Month, Half of Quad-City Adults Go Shopping or Make a Purchase as a Result of Seeing Advertising in the Quad-City Times. Source: Belden Associates, 10/02 Actions Taken as a Result of Seeing Quad-City Times Advertising: Past 30 Days Advertising Effectiveness 145,400 # of Adults 124,000 90,700 79,600 79,300 41,800 34,500 33,100 24,400 22,100

The Quad-City Times Delivers 61% of the Adults in Scott and Rock Island Counties and 679,000 Impressions in a Week. Weekly Reach & Impressions Base: Adults in Scott & Rock Island Counties Source: Belden Associates, 10/02 Quad-City adults read approximately 5 issues of the Quad-City Times during a typical week. Quad-City adults read approximately 5 issues of the Quad-City Times during a typical week.

The Power of Two  We’re not suggesting you stop advertising on television  We’re not asking you to increase your advertising budget  We’re going to show you how the Quad- City Times can enhance your reach and results

Reach & Frequency  Reach  How many different people see an advertisement  Frequency  How often these people see the ad  GRPs = Reach (in %) x Frequency

Grand Total: % Total Budget - $10,000 Total GRPs Total Reach % Avg. Frequency Cost per Thousand Reached - $70.32 TV DAYPARTS # SPOTS # GRPs GRPs By Daypart % Early morning/Daytime % Daytime/Early Fringe % Fringe/E News/E Prime % Late News % Sample 8 Week TV Schedule – KWQC Ch. 6 Source: Belden Associates, 10/02

Proposed Budget for Quad-City Times  Reduce TV budget by 30%  From $10,000 to $7,000  Replace with Quad-City Times advertising  Proposed budget  $3,000  Publish Four – 10 inch ads – Sunday non-Main insertions Four – 10 inch ads – Saturday non-Main insertions Eight – 10 inch ads – Wed. & Thurs. pick ups

Proposed Budget for Quad-City Times  What is the Effect?

TV Element $52.88$ 7,000 Newspaper $19.03$ 3,002 Grand Total: $51.04 $ 10,002 The Power of Two TV Only vs. TV + Newspaper More GRPs Greater Reach Higher Frequency Lower Cost per Thousand No Increase In Budget! Element # Messages GRPs % ReachFreq. Cost perBudget Thousand $ TV Only $ $10,000 The “Power of Two” Delivers: Source: Belden Associates, 10/02

Quintiles Source: New York DMA data; Media Mix software GRP’s

Quintile Analysis Demographic Comparisons Television Viewer TimeNewspaper Reader Quintile 1Quintile 5Quintile 1Quintile 5 HighestLowestHighestLowest Income Levels $100,000 + HHI $75,000 - $99,999 HHI $60,000 + HHI $50,000 + HHI $40,000 + HHI $30,000 + HHI $20,000 - $29,999 HHI Source - Simmons 1998 Interpretation A media audience is a mixture of heavy users to light users. Generally, as television viewing increases, income decreases. Conversely, as newspaper reading increases, income increases. Therefore, adding a newspaper audience to a reduced television buy will deliver more people financially able to consider the purchase of goods and services.

Summary  Even the best executed spot TV schedule provides incomplete reach  Reduction in spot TV to fund newspapers has little impact on TV reach or frequency  Newspapers complement TV by reaching light viewers of TV  Newspapers, when combined with TV, will repeatedly reach your most important prospects

…and that same radio buy is less than the reach you get with ONE Sunday ad in the Quad-City Times! Reach 113, ,900 Percent Reach49% 44% Quad-City Times 1 Sunday Ad Quad-City Times vs. All Radio Stations – Reach Comparisons Reach 94, ,900 Percent Reach 41% 44% ALL Individual Radio Stations in Quad City Market 16 Spots/Station 256 TOTAL SPOTS in 6-10 am Quad-City Times 1 Daily Ad You would need to buy 16 spots on each of the 16 radio stations during the 6 – 10 am time frame to equal the reach you get with ONE ad in the daily Quad-City Times … ALL Individual Radio Stations on Previous Graph 16 Spots/Station 256 TOTAL SPOTS in 6-10 am Base: Adults in Scott & Rock Island CountiesSource: Belden Associates, 10/02

Thank You!