Your Challenge =

Your Opportunity
New York Press Association
Saratoga Springs, NY
March 26, 2010
 Who We Are

p2
I Am A Working Journalist
 IAB’s ~400 Members Represent 86% of
U.S. Interactive Ad Spend

p4
 IAB’s Focused Mission…

GROWTH

p5
 … Rests on Three Strategic Platforms

p6
 Interactive
Advertising Snapshot

p7
 2010 Themes
• Recession has hastened share shift from offline to
online, as marketers tap into the variety, reach,
targetability, and effectiveness of interactive media

• Increasing marketer comfort and agility with medium

generally and major platforms specifically

• Regulatory risks growing

p8
 Your Consumers Are Online

Source: USC Annenberg School Center for the Digital Future, The 2009 Digital Future Report, and previous
Digital Future Report releases.

p9
 Drivers of Internet Growth Include:
Ubiquity of Broadband…

74% 60%

Source: Pew Internet & American Life Project, Internet, Broadband, and Cell Phone
Statistics, Jan. 5, 2010
p 10
 … Mainstreaming of Digital Video…
US Monthly Video Streams Served
(Billions)

18%

52%

Key November 2009 Data

(Nielsen):
Streams Served: 11.2 billion
Source: “Nielsen: 9.5B Video Streams in November,” Unique Viewers: 138.4 million
NewTeeVee.com, Dec. 30, 2008; “Nielsen Online's VideoCensus:
Networks Failing To Reach Men Online,” MediaPost Onlline Streams/Viewer: 80.8streams
Media Daily, Feb. 15, 2008; Nielsen VideoCensus Summary
Report, Nov. 2009. Time per Viewer: 200.1 minutes
p 11
 … Growth of Social Media…
US Audience for Top 10 Social Networking Sites, December 2009
Monthly US Unique Visitors (in Millions)

•Total Social Media Audience: 162M, or 79% reach of

total US Internet audience
•Audience growth leaders include Facebook (105%
from Dec. 08-Dec 09); Betawave (401% growth);
Twitter (921% growth)

Source: comScore myMetrix, December 2009

p 12
 …And Rise of the Mobile Web

Source: eMarketer, October

2009

p 13
 Ad Spend Lags Consumer Adoption
Time spent vs. ad spend for major media types (2009) $30
billion
Time spent
opportu
Ad spend
39% nity

31%
28%
28%
26%

16%
13%
13%
12%
9%

Print Radio TV Online

Sources: Time spent is per NA Technographics (2009); Ad spend is per VSS (2009 Mid-Term Update); Opportunity is Yahoo! estimate.
 ...But Online Share Is Shift Speeding Up
Interactive Advertising Revenues, ‘08 vs. ‘09 (Jan. – June)

$14
$12 $11.5
-5.3% $10.9
$ Billions

$10 (-$600m)

$8 Total ad spend
declined 15.4%
$6
in 1H 2009 from
$4 2008 (Nielsen);
TNS estimates
$2 a 14.3%
$0 decline.

2008 1H 2009 1H
Source: IAB Internet Advertising Revenue Report, 2009 Second Quarter and First Six Months Results; Nielsen and TNS Press Releases

p 15
 The Local Opportunity

p 16
Local Advertising Is a Vast Market

$245B US Ad
Spend
All Media

Local represents 42% of Total Ad Spend

Borrell Associates, November 2009 & Yahoo!

 Interactive Is a Sales-Driving Medium
Category Share of Total Internet Advertising Spending

21%
20%
20%

16%
15%

13%
12% 12%
11%
10% 10%
10%
7%
6% 6% 6%

4% 4% 4% 4% 4%
3%

0%
Retail Telec om F inanc ial A utom otive Com puting Cons um er Leis ure Travel E ntertainm ent P harm a & M edia
(inc luding IS P s ) S ervic es P ac k aged Healthc are
G oods

2008 F irs t S ix -M onths 2009 F irs t S ix -M onths

Source: IAB Internet Advertising Revenue Report, 2009

18
Local Online Outlook: +32%
 ($ in Billions)
Te
lem
ar

$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
ke $50
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© 2009 Borrell Associates Inc. All Rights Reserved. Courtesy

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Ne ve
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Br rs
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dc
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There Are Untapped Opportunities

tT
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47.7
 Local Newspapers
Have a Claim to This
Goldmine

p 21
 Because Your Brands Are Strong
• 100+ million adult weekday readers

• 114+ million adult Sunday readers

• 75+ million unique Web site visitors

• Reach: 74% of adults in print or online during average

week

Source: Scarborough Research, R1 2009 & NAA 22

 Because You Drive Sales &
Consideration
Clipped a Coupon 61%
Visited a Store 52%
Bought Something Advertised 50%
Picked up Shopping Ideas 34%
Visited a Website to Learn More 33%
Tried Something for the First Time 27%
Used Search for More Information from Print Ad 21%
Bought Something Online 20%
Called for More Information 12%

Source: MORI Research & NAA 23

 Because Your Advertising Works

• Primary medium for consumers who shop ads

• Best for bringing sales to attention
• Most valuable for planning shopping
• Prefer for receiving ad information
• Spend most time reading
• Most believable and trustworthy
• Look forward to these type of ads
• Find to be least intrusive

Source: MORI Research & NAA 24

Because Your Web Sites Are Trusted
Please indicate the website on which you consider the advertising to be the most
trustworthy:

Preliminary Results

All 18-24
• Local newspaper site 36% 35%
• Local TV station site 23% 22%
• Online portal 12% 11%
• Specialty website 12% 13%
• Local radio site 6% 9%
• Social networking site 3% 5%

Source: ComScore & NAA

Base: Adults who say type of Web site influences advertising trustworthiness (40%)

25
 The Path Forward:
Innovation

p 26
Network for Strength

Regional Group

51% of all U.S. Sunday

circulation

45 media holding companies

821 local newspapers
 Alliance for Content
350K+ Contributors Analytics-Driven 2.0MM+ Large,
Who are our Contributors?
Tech Platform Profitable Library
• Individuals: pro, semi-pro or • Proprietary yield- • Professional, semi-
amateur content creators management system professional and UGC media
• Select media groups analyzes 20 most important • 75% text, 25% video,
interested in revenue and content-value indicators slideshows and audio
distribution • Real-time performance • Reactive and proactively
metrics of every content programmed content –
What do they do? variable for lifespan of each Assignment Desk
• Publish unique content content asset • Every asset is reviewed
assets on any topic, in any • Custom engineered tools for algorithmically, anti-
format content curation, collection, plagiarism screen and by a
• 2.0MM+ unique content management, presentation human being
assets submitted and distribution • Optimized for search and
• Publish > 10,000 new pieces • Patent-pending technology social networking distribution
content weekly algorithmically appraisals, • Media companies now
• Create content on topics of real-time valuations of distributing content through
their choice or, according to content, creators and topics and from AC
programming assignments
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Ultra-Serve Your Customers
Make Service Social
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Develop a Mobile App-etite
 Your Challenge Is Your Opportunity
• Network for strength
• Alliance for content
• Empower bloggers & go hyperlocal
• Make online advertising easy
• Make service social
• Strengthen community bonds
• Develop a mobile appetite