1. MEETING THE ROI CHALLENGE
Delivering Results in a
‘Pay per Click’ World
Presented by Mark Hawley
Pennsylvania Newspaper Association
February 14-21, 2015
Winter Management Seminar

2. FOR THE NEXT 45 MINUTES…. Source: The New Yorker, 2008.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

3. AGENDA How did we get to this point? What’s the historical context?
What are the factors that are making marketing measurement so complex?
How do marketers define ROI and how is it measured?
Is newspaper advertising working as well as it used to?
What does research indicate?
How do other media compare?
What strategies can we proactively engage now in order to at least turn this challenge into a conversation instead of a demand?
How can we prepare for the future indicated by the trends we’re observing?
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

4. STARTING AT The beginning
SHORT TERM ROI
Incremental revenue ($)
x margin (%)
– marketing spend
marketing spend
=ROMI
LONG TERM ROI
Additional factors:
▪lifetime value
▪consideration
▪purchase intent
▪brand awareness
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

5. Marketing mix modeling (MMM)
Display - 1.1%
- 1.2%
Radio – 1.3%
Coupon – 1.9%
Print – 3.5%
TV – 4.0%
Trade – 10.0%
Base
77.0%
Incremental
23.0%
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

6. Changes in media
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

7. Changes in CONSUMER BEHAVIOR
Source: McKinsey & Company Consumer Decision Journey
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

8. Pressure for proof
Highly intuitive and interactive planning, mapping, and analytical functionality enables end-to-end print plan creation.
An interactive data retrieval and mapping tool that activates the Source database.
Source: The CMO Survey, Fall 2014.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

9. CONFUSION AT THE TOP Source: The CMO Survey, Fall 2014.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

10. The CAUSE OF THE CONFUSION
Source: The CMO Survey, Fall 2014.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

11. RUNNING FOR COVER Source: Hudson River Group website, 2015.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

12. THE MAKING OF THE BLACK BOX
Share of Average Time Spent per Day with Select Media by US Adults vs. US Ad Spending Share, % of total
Medium
Time Spent Share
Ad spending share
Digital
47.2%
30.5%
- Desktop/laptop
23.9%
19.1%
- Mobile
23.3%
11.4% TV
37.3%
41.2%
Radio
12.0%
9.3%
Print
3.5%
19.0%
- Newspapers
1.9%
10.0%
- Magazines
1.6%
9.1%
Source: e-Marketer, September 2014.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

13. Total US Coupon $ in Billions - First Half 2014
Coupon redemption on the rise
Total US Coupon $ in Billions - First Half 2014
Source: NCH Marketing, 2014.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

14. % of Total US Coupon Redemption Volume by Media Type First Half 2014
Source: NCH Marketing, 2014.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

15. Used in Past 7 Days for Planning Shopping or Purchases
STANDING OUT IN A CROWD
Used in Past 7 Days for Planning Shopping or Purchases
Medium
% Used
Newspapers (print and online)
57%
Newspapers (print only)
52%
In-store product displays
Direct Mail
48% TV
41%
Store or product
39%
Magazines
24%
Radio
22%
Ads on newspaper website
21%
Ads on general interest websites (MSN, AOL, Yahoo!, etc)
20%
Ads on social networking sites (Facebook, Twitter, LinkedIn, etc)
19%
Ads that appear when you’re using search engine (Google, Bing, etc)
17%
Ads on your smart phone
16%
Ads on your tablet (iPad, Kindle or similar device)
13%
Source: How America Shops and Spends, Base = total adults.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

16. Fully understand your local value proposition.
Knowledge = power
Be an industry expert.
Fully understand your local value proposition.
Speak the client’s language.
Tell them what they’re doing wrong.
No self-inflicted wounds.
Never stop selling your value.
Understand client types.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

17. UNDERSTAND WHAT THEY VALUE
Source: The Forum Corporation, Customer Value Study.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved

18. discussion Source: The New Yorker, 2008.
Confidential Copyright 2014 Newspaper Data Exchange LLC All rights reserved