1. How Media Works: Advertising and the Purchase Funnel for Department/Discount Store Advertising A Yankelovich Study for the Television Bureau of Advertising

2. 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

3. 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

4. A Majority of Respondents are In the Market 4 “Are you currently considering a purchase in a Department or Discount Store?” (Asked of those who recalled seeing a TV ad for a department or discount store in the last 2 months) Source: TVB/Yankelovich “How Media Works,” April 2009

5. Customer Profile: Department/Discount Stores 5 Source: TVB/Yankelovich “How Media Works,” April 2009 Saw a Department or Discount Store Ad 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 last 2 weeks Male 44.7%42.4%44.4%44.7% Female 55.3%57.6%55.6%55.3% 18-34 31.8%35.2%32.9%30.5% 18-49 59.5%66.0%60.5%60.1% 25-54 54.2%58.5%55.0%57.2% 55+ 34.6%28.0%33.3%31.8% Urban 35.9%34.0%35.2%31.8% Suburban 42.7%41.2%43.1%45.0% Rural 21.4%24.8%21.7%23.2% HHI <$30K 24.8%25.4%23.9%25.1% HHI $30-$70K 40.1%40.6%40.7%38.6% HHI $70K+ 27.7%28.0%28.4%28.9% HHI $100K+ 10.0%10.4%10.2%10.3%

6. Four in Ten Consumers Saw an Advertisement for a Department or Discount Store That Caught Their Attention 6 Source: TVB/Yankelovich “How Media Works,” April 2009 Saw an ad that got your attention:

7. Those Who Saw Dept./Disc. Store TV Ads Were Likely to Have Made Recent Purchase 7 Source: TVB/Yankelovich “How Media Works,” April 2009 Last time made a department/discount store purchase:

8. Department/Discount Store Ads Made Positive Impressions on Consumers 8 Source: TVB/Yankelovich “How Media Works,” April 2009 Type of impression made by TV ad for department/discount store: 73% of those who saw these advertisements rated them positively

9. Department/Discount Store TV Ads Seen as More Relevant Than Average; Also Called Attention-Getting and Informative 9 Source: TVB/Yankelovich “How Media Works,” April 2009 Ratings of Department/Discount Store Ad: 53% total 55% dept./ discount How informative was it? How much did it get your attention? How relevant was it? 42% total 53% dept./ discount 54% total 53% dept./ discount Total Department/Discount Stores

10. Those Who View TV Ads in This Category are Likely to Consider or Make a Purchase, or Visit a Store 10 Source: TVB/Yankelovich “How Media Works,” April 2009 Actions Taken After Seeing TV Commercial for Department/Discount Stores Total Department/ Discount Stores Index to Total Any (Net)49%59%120 Considered purchasing the product or service17%24%141 Talked with others about the advertisement16%13%81 Went online to learn more about the product or service advertised14%10%71 Remembered you had seen the product or service advertised before11%8%73 Purchased the product or service in a store10%24%240 Visited a store or location to learn more about the product or service8%21%263 Tried to find the advertisement on the Web5%4%80 Looked in a newspaper or magazine to learn more about the product or service 4% 100 Purchased the product or service online3%4%133 Contacted the company in the advertisement3%1%33 Sent someone an Email about the product or service3%2%67 Sent someone a Web-site link about the product or service2%1%50 Other action3% 100 Did nothing51%41%80

11. Half of Respondents Saw The Same Ad 1-3 Times; Half Saw Ad 4 or More Times 11 Source: TVB/Yankelovich “How Media Works,” April 2009 Number of times saw TV commercial for department/discount store in past 2 months:

12. Increased Frequency = Greater Likelihood of Action: Higher Purchase Levels and Store Visits, and More 12 Source: TVB/Yankelovich “How Media Works,” April 2009 Among those who recently saw a TV ad for Department/Discount Stores # TV Ad Exposures Department or Discount Store Recall 1-3 ad exposures Recall 4+ ad exposures Any (Net) 59%56%63% Considered purchasing the product or service 24% 25% Purchased the product or service in a store 24%18%29% Visited a store or location to learn more 21%17%26% Talked with others about the advertisement 13%10%16% Went online to learn more 10%9%11% Remembered you had seen the product/service advertised before (i.e., the newspaper, radio, or the Internet) 8%6%11% Purchased the product or service online 4%3%5% Looked in a newspaper or magazine to learn more 4% Tried to find the advertisement on the Web 4% 3% Sent someone an Email about the product or service 2% Sent someone a Web-site link about the product or service 1%2%0% Contacted the company in the advertisement 1%0%1% Other action 3%2%4% Did nothing 41%44%38% Actions taken after seeing a Department/Discount Store TV ad

13. In Addition to TV Ads for Department/Discount Stores, Many Consumers Recall Newspaper and e-Mail Ads 13 Source: TVB/Yankelovich “How Media Works,” April 2009 Saw ad for same product or service in a media other than TV: Total Department/ Discount Stores Index to Total Any (Net)46%51%111 On the Internet20%15%75 In a newspaper18%30%167 On the radio12%7%58 In a magazine11%8%73 In an Email offer8%11%138 On a billboard or other outside sign7%3%43 Other media3%4%133 Did not see, hear, or read in any other media35%29%83 Not sure19% 100

14. Department/Discount 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 Index = 95 Index = 97 Index = 113 Index = 119 Index = 109

15. Department & Discount 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.”

16. ConclusionsConclusions A high percentage of consumers exposed to television ads in this category are in the market for Department and Discount Store shopping. Commercial awareness and recall are above average. Due to high levels of in-market consumers, ad relevance is highly rated. Television ads are major action drivers, leading to store and website visits and purchases. The greatest pay-off of higher frequency of exposure to TV ads was in the bottom of the purchase funnel: product purchase was much higher. 16 Source: TVB/Yankelovich “How Media Works,” April 2009