Lake Street Council Meeting

1. Lake Street Council Meeting 10/09/09

2. Marketing In A Challenging Economy Presented by: Joe Allen Duchesne Drew Charlie Hoag

3. The MarketWhat condition is the market in? Employment – U.S. vs. Minnesota Minnesota added 10,300 jobs in July – the first monthly employment gain since August 2008 U.S. unemployment rate 9% in July Minnesota’s unemployment rate fell three-tenths of a point to 8% in July Eight of the state’s 11 industry sectors gained employment in July led by Leisure and Hospitality Home sales Closed sales of existing homes up 15% in August from last year – 9th consecutive month of year-over-year gains Year-to-date closed sales up 14% Number of listings available end of August down 20% from last year Retail sales Retail sales down 0.1% in July Core sales continued to disappoint setting up weak third quarter for consumption outside auto sector Consumer confidence Consumer confidence rose almost 7 points in August – not a huge jump but the first increase in three months 0 These are the stark realities – now, what are we going to do about it?These are the stark realities – now, what are we going to do about it?

4. “The ice machine ate my advertising”. Lease Help Inventory/Product Utilities Advertising? So many expenses, some unforeseen, it’s easy but dangerous to cut your marketing budget

5. Advertising In A Down Market More than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling Conversely, a vast majority perceives businesses that continue to advertise as being competitive or committed to doing business Your brand needs to remain visible to grow share when the economy turns around People need to know you before they need you Now more than ever, offer driven marketing and perceived value for consumer dollars are key Talk about data that links top-of-mind awareness to market share (Kleenex, Kodak, Tylenol) Talk about data that shows top-of-mind awareness drives better results when you promote sales End with: Okay, as a small business I need to advertise – now what? Talk about data that links top-of-mind awareness to market share (Kleenex, Kodak, Tylenol) Talk about data that shows top-of-mind awareness drives better results when you promote sales End with: Okay, as a small business I need to advertise – now what?

6. A Crowded Field – How Do You Make Informative Decisions With So Many Choices

7. Consider The Following Changes In Newspaper Newspaper More than 104 million adults read a print newspaper every day – more people than watch the Super Bowl (94 million), American Idol (23 million) or that typically watch late local news (65 million) Average weekday newspaper readership declined 1.8% between 2007 and 2008 compared to 10% decline seen in primetime TV audience in 2007 alone Google reported that 56% of consumers researched or purchased products they saw in a newspaper – 52% are more likely to buy products if they see it in a newspaper Newspapers allow you to advertise in the geographic zone where prime audience resides Star Tribune’s integrated readership combining newspaper and online reach 67% or over 1.6+ million Twin Cities adults

8. Consider The Following Changes In Radio Radio Twenty-six FM and 20 AM stations in the Twin Cities market for a total of 46 radio stations fragmenting the market Satellite radio eroding broadcast audience (XM Radio with 170 channels and Sirius Satellite Radio with 130 channels) all commercial free Continued growth in usage and ownership of digital audio platforms including online radio, iPod/MP3 players and podcasting, Pandora

9. Consider The Following Changes In Broadcast TV Broadcast TV Percent of total TV viewers tuned to one of the news programs during the late news time slot fell 15% from Feb-2007 to Feb-2008 Average rating for late night TV news programs dropped 11% during the same time slot Currently 11% of U.S. households have a DVR (expected to reach 37% of homes by 2010) Streaming Netflix , AppleTV, Youtube

10. Consider The Following Changes In Cable TV Cable TV Minneapolis/St. Paul ranks 51 among the 81 markets measured by Scarborough for percent of households that subscribe to cable Seventy-eight non-premium cable stations available in Twin Cities Digital Video Recorders (TIVO), video-on-demand, Internet/TV multi-tasking are causing greater audience erosion and diminishing the impact of cable TV advertising With fragmentation an advertiser would have to run 1 spot during evening primetime on all 78 non-premium cable stations to reach 15% of Twin Cities adults Cable: 44% of Twin Cities DMA households do not subscribe to cableCable: 44% of Twin Cities DMA households do not subscribe to cable

11. Consider The Following Changes In Yellow Pages Yellow Pages Often the biggest marketing expense for small businesses Approximately 85 directories in Hennepin County alone creates highly fragmented solution Being Replaced by Search Engine Marketing (Google, Yahoo, Ask, MSN and more) YP publishers force advertisers to buy several categories People call an advertiser if they know them not because they have a larger ad People already know who they want to call – they use the YP to look up a phone number YP publishers force advertisers to buy several categories People call an advertiser if they know them not because they have a larger ad People already know who they want to call – they use the YP to look up a phone number

12. Why Star Tribune?

13. Consumers Act on Newspaper Advertising 92% of Consumers Took Action on an Ad in a Newspaper in Past 90 Days ¾ of all U.S. adults read a newspaper in print or online in the past week. Those 170 million adults do more than read, they are actively engaged with advertising in it. If you want both reach and engagement, you want newspapers today.    ¾ of all U.S. adults read a newspaper in print or online in the past week. Those 170 million adults do more than read, they are actively engaged with advertising in it. If you want both reach and engagement, you want newspapers today.    

14. Shoppers See Newspaper Advertising As Providing What They Want to Help Them Shop

15. Newspaper Advertising Is Cited More Often Than Any Other Ad Source As Prompting Consumers To Make A Purchase

16. Consumers Rank Newspapers As The Most Useful Advertising Source

17. The value of newspaper digital media to an advertiser is that newspaper is the trusted local connection to an attractive audience. Newspaper media offers advertisers what I will refer to as the 4 C’s. A unique combination of attributes that advertisers value in choosing from digital alternatives. Community Connection It’s all about local Content relevance Customized targeting Consumer activation The value of newspaper digital media to an advertiser is that newspaper is the trusted local connection to an attractive audience. Newspaper media offers advertisers what I will refer to as the 4 C’s. A unique combination of attributes that advertisers value in choosing from digital alternatives. Community Connection It’s all about local Content relevance Customized targeting Consumer activation

18. Popularity Of Newspaper Websites People still read, respect and even treasure reading newspapers.  Scarborough Research reports that more than 100 million adults read a printed newspaper on an average weekday (and more than 115 million on Sunday).  Compare that to People still read, respect and even treasure reading newspapers.  Scarborough Research reports that more than 100 million adults read a printed newspaper on an average weekday (and more than 115 million on Sunday).  Compare that to

20. What Should You Do

21. Plan your work, work your plan Define your goals. Define your target audience. Define your footprint. Create ongoing awareness of your brand through repetition of message and consistency of brand Market the value of your products and services Unique proposition Compelling offers work now more than ever Use the same media consistently and make sure that it ties directly to what is above.

22. Summary The speed of change in media is accelerating Star Tribune solutions are responding to that change Create and invest in media solutions that meet you objectives.

23. How To Pitch A Story to the Newsroom

24. The Newspaper is only as interesting as the information we have to work with.So we need people to pitch stories to us. The news is shaped by the people in the room and the information we have to work with. So we need tips and story suggestions.The news is shaped by the people in the room and the information we have to work with. So we need tips and story suggestions.

25. Who’s the appropriate audience for the story?Folks in Minneapolis?The west metro?The entire region?People interested in:Business stories?Features stories?All of the above? Give some thought to who should care and why? Then design your pitch around them.Give some thought to who should care and why? Then design your pitch around them.

26. Where would you expect to find it? Think about which sections of the paper make the most sense for the story you’re going to pitch. Some stories could fit in more than one section, particularly if they’re framed the right way.Think about which sections of the paper make the most sense for the story you’re going to pitch. Some stories could fit in more than one section, particularly if they’re framed the right way.

27. Think broadly about placement 

28. What makes for a good story? Stories about real people working through issues of broad interest or concern. Stories about people and/or organizations making a difference in our community. Stories that expose injustice. Stories that help us better understand each other. Stories with visual elements get extra points. Pictures grab your attention and pull you in.

29. Key people in the newsroom John Oslund Assistant Business Editor 612-673-7206 joslund@startribune.com Paul Klauda Metro Editor 612-673-7280 pklauda@startribune.com Sam Barnes West Team Leader 612-673-7840 sbarnes@startribune.com Christine Ledbetter Assistant Managing Editor, Features 612-673-7918 cledbetter@startribune.com Glen Crevier Assistant Managing Editor, Sports 612-673-4748 gcrevier@startribune.com Duchesne Drew Managing Editor, Operations 612-673-7111 ddrew@startribune.com Letters to the editor and commentaries Tim O’Brien Letters Editor 612-673-4778 Opinion@startribune.com Doug Tice Commentary Editor 612-673-4456 dtice@startribune.com

30. Key People In Advertising