1. QSR Category March 13, 2013

2. GMG: A Better Media Partner

3. QSR Media Strategy ROI Focused Transactionally Dependent Immediate Results

4. QSR Media Strategy Media Tactics – Newspaper – Shared Mail – Direct Mail – Alternative Distribution – Broadcast – Out of Home Integrate Digital, Mobile, Social whenever possible

5. Media Planning Strategies & Challenges Consumers & Content: (Choices) 3

6. Media Planning Strategies & Challenges “When airplanes were invented, trains didn’t go away. When TV was invented, radio didn’t go away. Various media work together and reach consumers at different times.” Charlie Brown NCH Vice President of Marketing

7. Media Planning Strategies & Challenges Insight for you… and a thought to consider – Point of Sale holds the category back, but over time this will change POS Tracking keeps media channel performance insight at surface level for most mature brands – As tracking improves, your ability to have “performance skin in the game” is going to be vital Data commoditizes media pricing “Don’t step over a dollar to protect a quarter of margin”

8. The Newspaper Role Opportunities & Challenges (glass is half full) I.You deliver two different targets – bundle them more effectively II.Your TMC program should be sold with every in- paper media tactic III.The category’s core is not your sweet spot – this is good for offer-specific messaging programs I.They don’t want to trade-down core audience transactions/you deliver strong secondary targets IV.Price it like you want it – it is a procurement driven world due to the recession and it is not going to change

9. The Newspaper Role Opportunities & Challenges (glass is half full) I.Two Targets: Offline and online selling process integration… getting better, keep focusing on it I.Different agencies require different strategies II.TMC Content: It is king, always look to improve it I.Readership reverses commoditization and improves results (remember the “skin in the game” point) III.Each brand has multiple targets – connect the dots deeper than “brand usage” I.Core offering, health initiatives, kids programs, new product innovation IV.This might be one of the most important categories to have in your publication – remember the 3 R’s! I.Readership = Response = Revenue

10. Some Category Insights

11. 1/3 of All US Adults Are Obese Regulation – initiatives target QSR First Lady focus; South LA ordinance; NYC/Bloomberg

12. What Are QSRs Doing? The category spend is driven by TV and the health initiative is fueling the growth 2012 QSR Total Spend > +3.5%  TV = 84% of the spending… while audience is eroding (sound familiar?) SOURCE: Kantar Media

13. Sub-Category Conflict Know your categories and where the battles exist before speaking with a client – The battle for share crosses over Casual Dining, Fast Casual and QSR with the trend being “trading down” 85% of adults eat at Fast Casual 1X+ per month – 36% are making “lower calorie” selections 82% of adults eat at Casual Dining 1X+ per month – Driven by culinary innovation and choices SOURCE: 2/13 Technomic, Inc. “Future of Casual Dining Trend Report”

14. Economic Challenges = Opportunities Frugal Consumers = Media Opportunities “Regular” use of coupons = 4 of 5 adults (79.7%) – Pre-recession = 63.6% SOURCE: NCH 2012 Coupon Fact Report

15. Economic Challenges = Opportunities

16. We Are Holding Our Own x

17. The Triggers Indicate An Uptick

18. Consumers Want QSR Coupons Con

19. Consumers 50+ are growing in annual visits and are showing the strongest growth in visits with an associated coupon, but how does this impact share of visits? QSR, traditionally dominated by 18-34… however, from 2007-12, QSR Share among consumers 50+ has grown from 24% to 31%, while consumers 18-34 have declined from 28% to 24%. The Senior Phenomenon The 50+ Phenomenon

20. Only Time Will Tell “This recession will be compared to the Great Depression and the impact it had on two generations. Consumers have been taught to use technology and resources to make purchasing decisions. Everyone knows someone one-to-two degrees of separation who faced hardship.” John Cayne Coupon Media Connoisseur

21. Thank You