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2. C. Lee Smith President/CEO Ad-ology Research Westerville, Ohio

3. Who is Ad-ology? Ad-ology provides research to more than 2,000 agencies, marketers and media properties. We study the impact of advertising+marketing on purchase, forecast future marketing, and study ways for clients to “connect with the customer.” Launched in 2005. Parent company founded in 1989 in Columbus, Ohio. One of five Research Partners for 2010 AAF National Student Ad Competition.

4. What You’ll Hear Today 1. What Chief Marketing Officers are Saying About Advertising Agencies 2. What Consumers are Saying About Advertisers and Non-Advertisers 3. What Local Advertisers are Saying About Marketing, Local Media Sales Reps

5. What They Say About Agencies In January 2010, we asked 123 clients of agencies for their thoughts. Respondents must meet four (4) criteria: 1. Title: CMO, VP/Director of Marketing, CEO 2. Companies over $2 million in sales 3. Must employ at least 1 outside agency 4. Must be primary decision maker or one of the primary decision makers Here are a few of the highlights from this study...

6. What They Say About Agencies Attitudes on Advertising Agencies, January 2010, Ad-ology Research

7. What They Say About Agencies Top expected marketing budget gainers for 2010 (out of a list of 14 initiatives)...

8. What They Say About Agencies Top expected marketing budget gainers for 2010 (out of a list of 14 initiatives)... 1. Digital Marketing (46% will increase) 2. Creative (34%) 3. Branding (33%) 4. Market Research (33%) 5. PR/Media Relations (32%) Attitudes on Advertising Agencies, January 2010, Ad-ology Research

9. What They Say About Agencies Other than budget, what are your company's top five factors for selecting a new agency? (out of a list of 15 factors)

10. What They Say About Agencies Other than budget, what are your company's top five factors for selecting a new agency? (out of a list of 15 factors) 1. Quality of previous work (54%) 2. Creative capabilities (54%) 3. Industry experience (46%) 4. Responsiveness (44%) 5. Do they understand our customers? (43%) Attitudes on Advertising Agencies, January 2010, Ad-ology Research

11. What They Say About Agencies What are your biggest sources of frustration or aggravation with your agency/agencies? (out of a list of 15 factors)

12. What They Say About Agencies What are the biggest sources of frustration or aggravation with agency/agencies? (out of a list of 15 factors) The top four by far are: 1. Poor communication (38%) 2. More reactive than proactive (37%) 3. Lack of understanding of our company's business or industry (37%) 4. Lack of strategic thinking (31%) Attitudes on Advertising Agencies, January 2010, Ad-ology Research

13. What They Say About Agencies If you could offer one piece of advice to advertising/ marketing agencies, what would it be? “Make the effort to learn our... business product market customers” Attitudes on Advertising Agencies, January 2010, Ad-ology Research

14. What They Say About Agencies If you could offer one piece of advice to advertising/ marketing agencies, what would it be? “LISTEN!” “each of us (clients) is different” “be EXTREMELY attentive to our needs” “show your interest in us” “listen closely before preaching theories.” Attitudes on Advertising Agencies, January 2010, Ad-ology Research

15. What They Say About Agencies If you could offer one piece of advice to advertising/ marketing agencies, what would it be? “COMMUNICATE!” “don’t leave us in the dark wondering” “follow up, follow up, follow up” “we are partners, not a parent/child relationship” “Always try and show ROI for any advertising program” “Speak honestly and with integrity” Attitudes on Advertising Agencies, January 2010, Ad-ology Research

16. What They Say About Agencies Three sins of account service No communication, No insight, No listening Chief Marketer Forecast, January 2010, Ad-ology Research

17. Next... What Consumers are Saying About Advertisers and Non-Advertisers

18. What They Say About Advertisers In May 2009 and again in December 2009, we asked U.S. consumers for their perceptions of advertising and advertisers. Sample size in May 2009 was: 1,225 Sample size in December 2009 was 2,211 Margin of error: +/- 2.2% Here are a few of the highlights from this study...

19. What They Say About Advertisers 2010 Advertising+Media Perceptions Study, Ad-ology Research

20. What They Say About Advertisers 2010 Advertising+Media Perceptions Study, Ad-ology Research

21. What They Say About Advertisers 2010 Advertising+Media Perceptions Study, Ad-ology Research

22. What They Say About Advertisers 2010 Advertising+Media Perceptions Study, Ad-ology Research

23. What They Say About Agencies What are the top senior management mandates their marketing department has for 2010? 1. Grow or retain market share (of course) 2. Lower costs and improve go-to-market efficiencies 3. Improve customer insight and retention 4. Better define brand and value proposition 5. Expand into new product or service markets Chief Marketer Forecast, January 2010, Ad-ology Research

24. Lastly... What Local Advertisers are Saying About Media

25. What They Say About Media In November 2009, we asked 1,100 SMB owners in the United States for their thoughts. Respondents must meet three (3) criteria: Title: CEO, Owner, VP of Marketing/Sales Companies less than 100 employees Must be primary decision maker or one of the primary decision makers Here are a few of the highlights from this study...

26. What They Say About Media “Some 25% of small (and midsize)businesses surveyed by Ad-ology Research said they would spend more on social networking in 2009, beating the numbers who’ll spend more on e-mail, blogging or company websites.” USA TODAY 7/24/2009 What about 2010?

27. What They Say About Media 2010 Small Business Marketing Forecast, Ad-ology Research

28. What They Say About Media 2010 Small Business Marketing Forecast, Ad-ology Research

29. What They Say About Media 2010 Small Business Marketing Forecast, Ad-ology Research

30. What They Say About Media 2010 Small Business Marketing Forecast, Ad-ology Research

31. What They Say About Media 2010 Small Business Marketing Forecast, Ad-ology Research

32. What They Say About Media 2010 Small Business Marketing Forecast, Ad-ology Research

33. What They Say About Media 2010 Small Business Marketing Forecast, Ad-ology Research Online and Direct Mail are expected to be the biggest gainers.

34. What They Say About Media What are the biggest frustrations about the process of buying advertising?

35. What They Say About Media What are the biggest frustrations about the process of buying advertising? 1. Rate increases without justification or audience increases (51%) 2. Getting ad proposals that are not relevant to your business (37%) 3. Being able to justify cost/measure success (35%) 4. Ratings/Research that is confusing, outdated or misleading (31%) 2010 Small Business Marketing Forecast, Ad-ology Research

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37. Today’s Take-aways Most marketers, both big and small, say: they’ll have larger budgets in 2010 Most businesses say: Digital and direct marketing, and social media are top of mind Agency clients say: they’re most frustrated by three common sins of account service Local advertisers say: they want media sales reps who are trusted advisors that know advertising and their business Consumers say: cutting back on advertising sends a message of uncertainty Chief Marketer Forecast, January 2010, Ad-ology Research

38. FREE from Ad-ology 1. Ad-ology Insights monthly video briefing 2. MarketingForecast.com blog - updated several times daily 3. Marketing Forecast iPhone app (v2 and Android coming soon) 4. “Insights to your inbox” via Ad-ology Today daily email 5. Follow us on Twitter (@adology) and Facebook (facebook.com/adology).

39. CONNECT WITH THE CUSTOMER! Ad-ology Research Westerville, Ohio ad-ology.com