1. What are the Trends among Members? Where are the Opportunities to Grow Revenue and Profits? What Does the Future Look Like for Inserts? 2014 NTMC Insert Program Survey

2. 32 NTMC Members Participated in the 2014 Survey

3. Following the NTMC Membership Pattern, Respondents were Heavily Weighted towards the Eastern Half of the Country

4. Some Survey Responses were Interpreted if we could not Verify

5. Standardizing Terminology in the Presenting the Survey Sunday Select vs Opt-In vs Requested Delivery. For simplicity we have adopted the term “Select” through the survey Other Survey Notes: 32 papers participated in the survey, not every question was answered by all TMC penetration numbers were calculated Newspapers supplied Select penetration percentages Respondents are anonymous!

7. Day of Week Insert Delivery and Paid Penetration

8. The Number of Days Inserts are Delivered is Dropping 53% of respondents deliver just 3 to 5 days a week 76% of respondents in 2008 delivered 6 or 7 days a week Is there money to be saved by cutting insert delivery to 4 or 5 days per week?

9. Newspapers have Pared Back Insert Delivery, Particularly on Monday and Saturday Most Popular 3 day delivery:Wed, Fri, Sun (3) Most Popular 4 day delivery:Tues, Thurs, Fri, Sun (3) Most Popular 5 day delivery: Tues, Wed, Thurs, Fri, Sun (5)

10. Average Sunday Subscriber Penetration is 18.4% with the Median at 21.5% “SELECT” appears to be a must to help advertisers reach their penetration targets 2008: 37.9% 2004 50.0% simple averages

11. Sunday Single Copy Sales Average 22.6% of Total Circulation Sunday Single Copy Sales Average 22.6% of Total Circulation 2012 ABC Single Copy Avg % of Circulation: Daily 13.4% Sunday 20.5%

12. A Very Wide Spread Average Number of Sunday Inserts Across Markets with the Average of 31

13. “Select” Delivery Programs

14. All Respondents Truly “Opt-In” at least 20% of Households for their Select Programs 2/3 Of Respondents Opt in 100% of their Select delivery households

15. 82% of Survey Respondents Reported having a Select Program Nearly 85% of programs are indeed on Sunday No responding papers gave details on a second day of week program

16. The Average Opt-In Delivery Quantity of Respondents is 116,387 81,099 The median Select quantity

17. Some Mid-Size Markets are More Aggressive with their Select Program Quantities Select quantities in some of these markets exceed or closely match subscriber counts

18. Select Penetration Averages 46% Across 24 Reporting Markets 2/3 have combined penetration of 40% or more

19. Less than 10% of Companies have more than One Select Wrap Zone, but Select Page Count Exceeds TMC 92% use a broadsheet format Average broadsheet page count 8.48 2/3 of Select wraps are 8 broadsheet pages or greater Average TMC wrap is 4.5 broadsheet pages

20. The Average Number of Inserts in a Select Program is 16, Median is 12 8 companies are enjoying 20 or more inserts in a package!

21. TMC Delivery Program Overview

22. Papers With Mid-Week TMC Appear to have a Higher Success Rate with Grocers Only 7 papers had a second day of week TMC Program

23. 72.4% of Participant TMC Programs have Penetration of 90% or more. Will this need for such high penetration targets continue? 95% The average TMC penetration in the 2004 survey 90% The average TMC penetration in the 2014 Survey

24. 59% of Respondents have Multiple Zones for their TMC Wrap Average zone size all papers 392,146 Average zone size only papers with multiple zones 154,484 Does revenue or profitability increase with zone size?

25. 77% of Respondents are using U.S.P.S for at Least Part of their TMC Deliveries A total of 14.8 million pieces per week A conservative annual spend with U.S.P.S of $154 million annually 614,492 Average Mail Quantity 475,551 Median Mail Quantity

26. 27% (8) of Respondents use 3 rd Party TMC Delivery. 5 use Alternate Delivery for 85% or more of Deliveries 8 plan changes to their delivery channels at time of survey

27. The Average Number of Inserts in a Member’s TMC Program is 13.9 The median is 11 What differentiates the 6 papers exceeding 20 or more inserts per week?

28. Other Survey Items of Note Less than 1/3 of respondents audit their TMC program 74% of respondents audit their Select program 80% of Respondents use Mail in their TMC Program 0% of responding papers use mail for Opt-In delivery Only 19% of respondents plan to change opt- in delivery methodology

29. What does the Future Hold for Insert Programs?

30. Some Insert Questions to Ponder? Some Insert Questions to Ponder? Will TMC penetration targets continue to maintain at 90%? Is there a bigger play in at least the short term with Select programs? Are newspapers building back penetration of Select programs as paid circulation declines? What can companies with fewer insert piece counts in their paid, TMC and Select programs learn from their more successful peers? Are papers leaving revenue on the table with large zones and small page count wraps? Will alternate delivery continue to play a bigger role in delivery of subscriber, TMC and Select delivery?