LOCAL Adding LOCAL to Your Media Arsenal Edward McLoughlin, Senior Partner Shawn Riegsecker, Founder & CEO Mark Naples, Managing Partner

Agenda 1.Local :: When and Why? 2.Evolution: Offline/Online Balance 3.Study Highlights // Trends 4.Challenges and Workflow

Local :: When and Why?

All Media is Local… The way it was… CDIs/BDIs/4Ps… The WWW is…err…global… Better data, better insight, better data driven planning

User Engagement Localized Content CONTENT NAT GEO TARGETING COMMUNITY/SN LOCALIZED NAVIGATION What is Local to Our Clients?

Benefits  Our ads work better in some markets than others…  Creative really does matter…  Contextual relevance really does matter  Localized advertising drives localized actions  Smaller or No Premiums vs. other local channels

Evolution, Offline/Online Balance

Fragmentation, or Accumulation?

95% of retail sales happen IN THE STORE** *BIGresearch, Simultaneous Media Usage Survey, 12/06 **Forrester Research US eCommerce: Five-Year Forecast, 10/06 92% of consumers research products ONLINE* Offline / Online Balance

The Internet Influence on In-store Sales *Jupiter Research, 2007 US Online Retail Forecast Increasing to a total of over $1 trillion of local in-store sales

93% of advertising spend 66% of media time* 7% of advertising spend 34% of media time* 92% research online** Influences 47% of total retail sales*** *Forrester, North American Benchmark Study ** BIGresearch, Simultaneous Media Usage Survey, 12/06 ***2011 projection, Jupiter Research The offline/online balance is out of whack

Selection Process ValuePortalNetworkVerticalLocal ReachExcellent PoorGood Targeted ReachExcellent PoorOkay Easy (media, traffic, billing) EasyVery EasyNeutralDifficult CPMsLowVery LowHighMedium Quality/ Environment PoorVery PoorExcellent ContextualPoorVery PoorGood BehavioralGood NonePoor ROI ProjectionGood PoorOkay Geo-CreativePoorVery PoorPoorExcellent 12 Local Selection Process

Selection Process ValuePortalNetworkVerticalLocal ReachExcellent PoorGood Targeted ReachExcellent PoorOkay Easy (media, traffic, billing) EasyVery EasyNeutralDifficult CPMsLowVery LowHighMedium Quality/ Environment PoorVery PoorExcellent ContextualPoorVery PoorGood BehavioralGood NonePoor ROI ProjectionGood PoorOkay Geo-CreativePoorVery PoorPoorExcellent 13 Local Selection Process

Selection Process ValuePortalNetworkVerticalLocal Sites ReachExcellent PoorGood Targeted ReachExcellent PoorOkay Easy (media, traffic, billing) EasyVery EasyNeutralEasy CPMsLowVery LowHighMedium Quality/ Environment PoorVery PoorExcellent ContextualPoorVery PoorGood BehavioralGood NonePoor ROI ProjectionGood PoorOkay Geo-CreativePoorVery PoorPoorExcellent 14 Local Selection Process

Local Evolution (Beyond National) Migration to local content: – As sites featuring local content become more robust traffic will continue to shift away from national online news providers to local National sites need to adopt local content – Top traffic drivers are integrating more local content into their site/network.

Local Impact on Campaign Goals Brand Support – Measurement of local impact on National efforts – Utilize market planning strategy to obtain optimal online frequency Local Augmentation Impact National Media Optimal Frequency Local planning augments national branding efforts while also driving in store sales

Evaluating Local Programs Scalable – Market by market flexibility Monitor SOV and market GRPs – Local creative opportunities Objective – Local branding – In store sales – Online sales Learnings – Opportunity for tracking Offline & online Measure impact on overall campaign goals Content/Targeting – Relevant content – Localized targeting Content/Targeting LearningsScalability

Study Highlights // Trends

Where does Local fit vs. National-Geo? Source: ComScore MediaMetrix – February 2008

“Web users now spend half their time visiting content, far outpacing time spent with search, communications and commerce.” – Online Publishers Association Study (2007) Source: Online Publishers Association, 2007 Local Audience Trends

“Content” versus “Technologies/Applications/Mail” True Content Technologies/Apps/Mail MediaMetrix 2008 comScore Network, February 2008 Why the Local Audience Matters Nationally (Quality Reach & Environment) Feb ’06 comScore

MediaMetrix 2008 comScore Network, February 2008 Vertical Targeting

Challenges and Workflow (how to scale local)

Challenges and Workflow Creative Tracking Measurement Opportunities Budget Customizing creative per market Implementing tracking tags per market Measuring impact of offline sales Local targeting opps in mid tail properties Budget allocation per market Dynamic online units 3 rd party tools catering more to local Unique store offers Utilize network IP targeting Population + results + web usage + GRPs Challenge Planning Stage Solution

Challenges in local online display…  Current conversion attribution favors national advertising due to higher frequency  National spillover to local bleed research  Customizing creative when offers  68 DMAs X 4 sites per market X 12 months of advertising = 3,264 invoices

Opportunities moving forward…  “Google-ize” Local display advertising  Better market by market audience research needed  $16Billion in spot television advertising

High Impact Local Creative

Nike ~ Cavs ~ Lebron James

Transformers ~ Reskin ~ LA.com

Coors ~ “At the Shore” ~ Philly Weekly

Coors ~ Happy Hour Reskin ~ Philly Weekly

Obama for America ~ Texas ~ Chron.com

Questions & Thank you!!