1. CONFIDENTIAL AND PROPRIETARY Copyright 2008 by Frank N. Magid Associates, Inc. Any duplication, reproduction, or usage of this document or any portion thereof without the written consent of the firm is prohibited. Presentation to: Millennial Strategy Program ® American Tapestry: The Millennial Generation News21 – Carnegie-Knight Initiative for the Future of Journalism December 05, 2008

2. © 2008 Frank N. Magid Associates, Inc. 1 Frank N. Magid Associates, Inc.  Fifty years as leading media, communications, and entertainment research and strategy firm with clients in the U.S., Europe, and Asia  More than 300 employees serving clients from New York, Los Angeles, London, Minneapolis, and Cedar Rapids, Iowa  Large, experienced team of M.A. and Ph.D. analysts: social scientists, statisticians, and communication experts  Large consulting team with expertise in corporate strategy, brand development, communications plans and both traditional and new media strategies  Interviewed over 1 million consumers by phone, online, and in-person in 2007. Conducted thousands of B2B executive and professional interviews. March 05, 2006 Business and Technology January 22, 2006 Business and Finance October 19, 2005 Business and Finance

3. © 2008 Frank N. Magid Associates, Inc. 2 MSP® Engagements  ABC-Disney Television Group  ABC Family  Anheuser-Busch, Inc.  AOL  Bonneville International  CBS Television Distribution  Clear Channel Communications  Comcast Cable  Condé Nast  Country Radio Broadcasters Assoc  Cox Enterprises, Inc.  Current TV  Dale Carnegie Foundation  DirecTV  The Dispatch Printing Company  Evening Post Publishing  Fisher Communications  Fleishman-Hillard  General Growth, Inc.  Hearst Corporation  Lee Enterprises  Media General  Meredith Corporation  Microsoft  NBC  The New York Times Company  News Corporation  Saban Capital Group, Inc.  Sony Pictures Television  Sony PlayStation/SCEA  Tribune Interactive  Washington Mutual  Wrigley – USA  Wrigley International

4. © 2008 Frank N. Magid Associates, Inc. Research Methodology Quantitative  Every other month  Online survey  20-25 minutes  Sample size ~ 2,000 Millennials, 500 Gen Xers, 500 Baby Boomers  Random sample representative of the national online population and weighted to match the U.S. Census  Surveys are conducted in the English language Quantitative  Every other month  Online survey  20-25 minutes  Sample size ~ 2,000 Millennials, 500 Gen Xers, 500 Baby Boomers  Random sample representative of the national online population and weighted to match the U.S. Census  Surveys are conducted in the English language 3 Qualitative  Focus groups  Ethnographic exploration  1-on-1 interviews  Friends groups  Conducted every other month Qualitative  Focus groups  Ethnographic exploration  1-on-1 interviews  Friends groups  Conducted every other month

5. © 2008 Frank N. Magid Associates, Inc. 4 1945196519771996 Generation X Born: 1965-1976 Children of the Silent Generation Births per year decreased to 3.4 M per year Major Events/Issues: Watergate Oil Crisis Cable television Generations Are Defined By Birthrates And Common Experiences Millennials Born: 1977-1996 Major Events/Issues: Clinton Impeached 9/11 The Internet Children of the Baby Boomer Generation Births increase to 3.8 M per year Millennial Strategy Program® Baby Boomers Born: 1945-1964 Children of the G.I. Generation Births increased from 2.6 M to 3.9 M per year Major Events/Issues: Vietnam War Civil Rights Movement Television

6. © 2008 Frank N. Magid Associates, Inc. Millennial Difference: Size B oomers X ERS Millennials 78 million 86 million 48 million 5 5 Millennial Strategy Program™

7. © 2008 Frank N. Magid Associates, Inc.  The Millennial Generation will continue to become even more diverse due to immigration Millennial Difference: Diversity Millennial Strategy Program® Source: US Census, 2006 6 6

8. © 2008 Frank N. Magid Associates, Inc. 7 Millennial “Elevator Pitch” Collaborative * Optimistic * Influential Millennial Strategy Program®

9. © 2008 Frank N. Magid Associates, Inc. Millennials Born: 1977-1996 “You’ve Got Mail” “Girls Rule” Major Events/Issues: Clinton Impeached 9/11  Collaborative team players who think in groups and are hyper-connected to their “circle”  They’re optimistic about their place in the world  They are influential – they influence their friends, family, and the world at large due to their cohort perspective and size 8 Millennial Strategy Program® 8

10. © 2008 Frank N. Magid Associates, Inc. 9 1976 Gymboree Opens  Collaborative, hyper-connected, and exhibit an unfailing, inclusionary group mindset  Play group expectations  Emergence of the ‘active dad’  Birth of the Millennial social network Societal Events That Helped Foster The Millennial Mindset

11. © 2008 Frank N. Magid Associates, Inc. 10 Adult Millennials Drive Social Network Use Based on weekly or more frequent users, ranked by Adult Millennials  General or broad social networking sites 52%  Niche or focused social networking sites 25%  Social play sites 28% Gen Xers  General or broad social networking sites 29%  Niche or focused social networking sites 14%  Social play sites 13% Boomers  General or broad social networking sites 13%  Niche or focused social networking sites 7%  Social play sites 9% Millennial Strategy Program® Wave VIII Q. 40-42 The following are types of social sites online. How often, if ever, do you use the following online sites – accessing the Internet with any device (computer, laptop, smartphone, PSP, etc)?  General or broad social networking sites 44%  Niche or focused social networking sites 19%  Social play sites 29% Pre-Teens/Teens Adult Millennials

12. © 2008 Frank N. Magid Associates, Inc. 11 Adult Mills Spend Substantial Time Communicating With Others Based on Adult Millennials, minutes based on those who participate in behavior weekly Average minutes per day Percent participating in behavior weekly Texting E-mail Playing games Using the calendar Talking Internet browsing Checking weather Listening to music Reading news Adult Millennials Checking sports Millennial Strategy Program® Wave VII – see Appendix for percentages for each behavior Q. 20 During a typical week, Sunday through Saturday, which of the following do you engage in on your cell phone/smartphone? Q. 21(A-S) During a typical day how many minutes, on average, do you spend using your cell phone/smartphone for the following?

13. © 2008 Frank N. Magid Associates, Inc. Millennials Leverage Their Social Circle To Reduce Costs Millennial Strategy Program® Wave VIII Q. 28 Overall, which of the following, if any, have you done to reduce costs, save money or make more money in the past 12 months? Sharing costs with friends … Borrowing rather than buying what I need … 28% Vs. 15% Gen Xers 10% Boomers 19% Vs. 10% Gen Xers 8% Boomer 12

14. © 2008 Frank N. Magid Associates, Inc. 13 1971 Title IX  Optimistic and confident about their place in the world  Trickle down to young-girl athletic opportunities  Gender-gap reduction  Traditional barriers were not a significant part of the Millennial youth – dawning of girl power movement Societal Events That Helped Foster The Millennial Mindset

15. © 2008 Frank N. Magid Associates, Inc. Confident About Their Place In The World Adult MillennialsGen X Boomers Confident that “I will always”… (top 2 box) Have an interesting and fulfilling career 45% 36% 33% Be able to find good jobs throughout my career 443632 Be well off enough financially during my career to live comfortably while working 4032 Have the right amount and quality of education to allow me to succeed in life 513844 Things in my life are… Generally moving in the right direction 69% 66% 62% Pretty much off track192224 Don’t know12 14 Millennial Strategy Program® 14

16. © 2008 Frank N. Magid Associates, Inc. 15 Demonstrate High Workplace Expectations – Especially Millennial Women  Pay Me Well  73% of Adult Millennial women  67% of Adult Millennial men  Respect Me  59% of Adult Millennial women  47% of Adult Millennial men  Give Me Good Benefits  40% of Adult Millennial women  30% of Adult Millennial men  Make My Work Environment Fun  36% of Adult Millennial women  31% of Adult Millennial men Millennial Strategy Program Wave VI Q. 10M – The three best ways to keep me happy at my job are… Based upon those employed or looking for a job.

17. © 2008 Frank N. Magid Associates, Inc. 16 They Believe They Can And Should Tackle Big Issues Based on Adult Millennials. somewhat or strongly agree with statement (4+5) Agree My responsibility to improve environment 79% Feel like my generation left with problems 75 Too much talk not enough action 74 I can have positive impact 73 I want to be part of the solution 73 I am knowledgeable about environmental issues 67 More likely to watch/listen to/read story if involves environment 60 I research issues to see if they are true 51 I understand “carbon neutral” 44 No longer pay attention to news about environmental issues 33 Confident most issues solved in my life 32 Too much fuss made about environmental issues 31 Millennial Strategy Program Wave VII Q.73(A-L) How much do you agree or disagree with each of the following statements? Base = Split sample. Adult Millennials only. Agree (4+5)

18. © 2008 Frank N. Magid Associates, Inc. 17 1974 AYSO Expands  Influence their circle and the world at large  The first “family” sport  Soccer moms and mini-vans  Birth of the don’t keep score, trophies for everyone phenomenon Societal Events That Helped Foster The Millennial Mindset

19. © 2008 Frank N. Magid Associates, Inc. 18 Word-Of-Mouth Dominates As Source Of Coolest, Hottest, Latest Based on Adult Millennials who say the source applies to them Q. 60(A-L) How important are each of the following in helping you keep up with the latest trends, the coolest things to do, or the hottest things to buy? *Asked of those 18 or older with kids My friends My kids* My parents Magazines Web sites Programs on Cable TV Programs on Network TV Social networking sites TV commercials Newspapers Blogs Billboards

20. © 2008 Frank N. Magid Associates, Inc. 19 Millennials Wield Significant Influence Within Their Families  Boomers and Xers say their Millennial children are more important sources of cool/hot/trendy information than their non-Millennial children Parents Non- Millennial kids 65% Millennial kids 48% Influence 9500001 Q. 60 How important are each of the following in helping you to keep up with the latest trends, the coolest things to do, or the hottest things to buy? Percent of parents saying “my kids” are important source

21. © 2008 Frank N. Magid Associates, Inc.  Millennials continue to be more likely than other generations to use the Web for political involvement Top Campaign Interactions Include Peer Persuasion And Visiting Candidate Websites Based On Total Sample; Ranked By Millennials 20 Q. 19 Which of the following, if any, have you done as it relates to the 2008 Presidential campaigns, for any candidate? Base=Adults 18-62 Tried to convince friends, family to vote for a candidate Visited a candidate’s official Web site Posted online opinions or comments about a candidate Placed a candidate’s bumper sticker on car, sign in yard or similar Visited the candidate’s page on a social networking site such as MySpace Commented about a candidate on my Web page such as on MySpace Fewer than 10% across all generations have: worked/volunteered on a campaign attended a fundraiser met a candidate posted online video about a candidate added candidate materials to their Web page “friended” a candidate on a social network site

22. © 2008 Frank N. Magid Associates, Inc. Millennials Born: 1977-1996 “You’ve Got Mail” “Girls Rule” Major Events/Issues: Clinton Impeached 9/11 Financial Crisis 2008  Collaborative team players who think in groups and are hyper-connected to their “circle”  They’re optimistic about their place in the world  They are influential – they influence their friends, family, and the world at large due to their cohort perspective and size 21 Millennial Strategy Program® 21

23. © 2008 Frank N. Magid Associates, Inc. 22 Lindsay Schutte Director, Millennial Strategy Program® Frank N. Magid Associates, Inc Direct: 818-263-3315 Mobile: 323-445-3879

24. © 2008 Frank N. Magid Associates, Inc. 23 Appendix Millennial Strategy Program®

25. © 2008 Frank N. Magid Associates, Inc. Famous Faces – Millennial Strategy Program® Alum Millennial Makeover: MySpace, YouTube, and the Future of American Politics named Top 10 Book Of The Year “In what turns out to have been a highly prescient book, the two authors predicted that 2008 would be a ‘change’ election, informed by new technology and by the outlook of a new generation of Millennial voters, who tend to be more inclusive, optimistic and tech-savvy than their elders.”  Michiko Kakutani, New York Times lead book reviewer 24 What The Authors Are Saying Now: “ Millennials remade U.S. politics in 2008, a happening we forecast in Millennial Makeover. But the Millennial Generation, the largest ever in American history, is not through changing the country. In the years just ahead, Millennials will completely reshape all of our society and economy--its corporations, workplaces, media, and marketing. -Michael D. Hais ” Millennials remade American politics this year, as predicted would happen in Millennial Makeover. But the impact of America's largest generation in history, Millennials, will be felt in areas far beyond politics in the years to come. This optimistic, group-oriented generation of young people will completely transform how companies make decisions, motivate their workforce, reach their customers, and promote their brands. -Morley Winograd “ ”

26. © 2008 Frank N. Magid Associates, Inc. It’s “Cool”  49% of Millennials think volunteering for local organizations is “cool.”  Nearly 60% of Millennial females think volunteering is “cool.” And They Do It  48% of Millennials have volunteered for a local organization.  A teen thing: 53% of 12- to 17- year-olds have volunteered locally. Millennials Get Involved Locally... Millennial Strategy Program® 25

27. © 2008 Frank N. Magid Associates, Inc. Global Activism  40% of Millennials think it is “cool” to be involved with an organization that deals with global issues. The Environment  47% of Millennials think caring about environmental issues is “cool.”  42% have actively supported an environmental issue.... And Globally Millennial Strategy Program® 26

28. © 2008 Frank N. Magid Associates, Inc. 27 Baby Boomers Most Reliant On Traditional Sources 67 34 42 57 59 65 69 71 83 53 34 0%20%40%60%80%100% Local TV News Friends, family, or coworkers Local Print Newspaper National Network TV News Radio Web Portals Cable TV News National Morning Network Show Website for National TV News Local TV Website Local Newspaper Website Search Engines 9500021A Q. 11(A-Z) On weekdays, Monday through Friday, how often do you read, see, or hear news and information from the following? Based upon: Weekly Tier 1 Tier 2 Tier 3 Baby Boomers (N=511) New Media Traditional Media

29. © 2008 Frank N. Magid Associates, Inc. 28 Gen Xers Use A Mix Of New & Traditional Media 52 54 56 61 65 73 77 48 37 34 29 0%20%40%60%80%100% Gen Xers (N=510) Friends, family, or coworkers Local TV News Search Engines Web Portals Radio Local Print Newspaper National TV News Cable TV News National Morning Network Show Website of National TV News Local Newspaper Website Local TV Website 9500021A Q. 11(A-Z) On weekdays, Monday through Friday, how often do you read, see, or hear news and information from the following? Based upon: Weekly Tier 1 Tier 2 Tier 3 New Media Traditional Media

30. © 2008 Frank N. Magid Associates, Inc. 29 Adult Millennials Are Most Reliant Upon Emerging Sources 50 52 55 56 58 68 69 75 81 39 40 42 Friends, family, or coworkers Search Engines Web Portals Local TV News SNS Local Print Newspaper Cable TV News Radio National TV News Website National TV News Satirical/Humorous Show Late Night Talk Show Adult/Millennials (N=1,157) 0%20%40%60%80%100% 9500021A Q. 11(A-Z) On weekdays, Monday through Friday, how often do you read, see, or hear news and information from the following? Based upon: Weekly Tier 1 Tier 2 Tier 3 New Media Traditional Media

31. © 2008 Frank N. Magid Associates, Inc. 30 On Environmental Problems Millennials Are The Most Likely To Believe Individuals Should “Step Up” Based on Adult Millennials Millennial Strategy Program Wave VII Q. 77 Which of the following do you feel is responsible for any current environmental problems in the U.S.? Q. 78 Going forward, which of the following do you feel is responsible for correcting or preventing environmental problems in the U.S.? Adult MillennialsGen XersBoomers CauseFixerCauseFixerCauseFixer Public/ Individuals 64% Public/ Individuals 67% Corporations/ Business 70% National Government 74% Corporations/ Business 74% National Government 71% Corporations/ Business 62% National Government 65% Public/ Individuals 63% Public/ Individuals 68% National Government 61% Corporations/ Business 66% National Government 58% Local/State Government 59% National Government 62% Corporations/ Business 65% Public/ Individuals 57% Public/ Individuals 65% Local/State Government 50% Corporations/ Business 54% Local/State Government 53% Local/State Government 65% Local/State Government 49% Local/State Government 62% Private Organizations 43% Private Organizations 49% Private Organizations 47% Private Organizations 54% Private Organizations 40% Private Organizations 54% Environmental Problems