Previous Edition Analysis

1. VSS Communications Industry Forecast 2010-2014Now with Data and Analysis by BothRevenue Stream Sector & Industry Sector

2. Previous Edition Analysis • The VSS Forecast has historically viewed Communications spending by four Revenue Streams Forecast

3. Revenue Stream Sectors Institutional End-User Advertising Forecast Consumer End-User Marketing Services Marketing Services Consumer End-User

4. What is a Revenue Stream? • Revenue Stream: Broad-based, generic descriptions of different types of revenues that comprise the industry. E.g., Advertising and Marketing Services are commercially underwritten consumer and business media and end-user media is paid for by the person or company. • For example, one would think Videogames, a segment of the Entertainment & Leisure Media Industry Sector, would fall only into the Consumer End-User Revenue Stream. However, portions of Videogame spending (online & mobile gaming advertising, in-game advertising) fall into the Advertising Revenue Stream. • Similarly, portions of the Newspaper segment in the Traditional Consumer Advertising Media Industry Sector, has both Consumer End-User (which is paid for subscriptions and single copies) spending AND Advertising spending. Same goes for Consumer Magazines

5. Segments within Revenue Streams • TV programming, license fees & retransmission • B-to-b trade shows & mag subscriptions • Education & training • Biz & professional information • Biz & professional services • Newspapers • Broadcast television & radio • Cable & satellite television • Yellow pages • Internet & mobile • Consumer mags • B-to-B mags Institutional End-User Advertising Forecast • Cable & sat TV • Consumer books • Entertainment media • Internet & mobile access & paid content • Newspaper subs • Magazines subs • Direct marketing • B2B promotions • Consumer promotions • Branded entertainment • Outsourced custom pubs • PR & word-of-mouth Marketing Services Consumer End-User

6. Additional Perspective Was Needed… • Rapid changes in the media & information landscape has led VSS to incorporate an additional analysis of spending in the Communications Industry grouped by Industry Sectors • Because media owners, investors and top management require greater awareness of how their companies match up against their industry peers and other industry-specific spending patterns, VSS, for the 2010 Forecast, has added an entirely new and additional data perspective: Spending by Industry Sectors

7. Forecast Industry Sectors within Communications Marketing Media Business & Professional Info & Services Education & Training Media & Services Targeted Media Entertainment and Leisure Traditional Consumer Ad Media

8. Forecast Segments within Industry Sectors • Business and Professional Information • Business Information • Professional Information • Business and Professional Services • Business & Professional Processing Services • Business & Professional Technology Services • Consumer Promotion • Business-to-Business Promotion • Public Relations & Word-of-Mouth Marketing Marketing Media Business & Professional Info & Services • Direct Marketing • Direct Mail • Branded Entertainment • Outsourced Custom Publishing • Pure-Play Consumer Internet & Mobile Services • Business-to-Business Media • Education & Training Media & Services • Not-For-Profit College Instructional Media • K-12 Instructional Media • For-Profit Educational Services • Outsourced Corporate Training Education & Training Media & Services Targeted Media Entertainment and Leisure • Subscription TV • Entertainment Media • TV Programming • Home Video • Recorded Music • Videogames • Box Office • Consumer Book Publishing Traditional Consumer Ad Media • Broadcast Television • Newspaper Publishing • Consumer Magazine Publishing • Broadcast & Satellite Radio • Out-of-Home Media • Yellow Pages Directories More extensive information on each of the industry groupings can be found in the appendix.

9. Added perspective; greater depth and detail • Total Communications Spending is on pace to increase 3.5% in 2010 and grow at a CAGR of 6.1% in 2009-2014 period to $1.416 trillion, fueled by measured economic growth, digital technology advances, institutional spending on Business Information & Services and consumer spending on Entertainment & Leisure Media • Traditional Consumer Advertising Media will continue to decline in 2010 and 2011 as brands shift to alternative advertising and marketing strategies • Business & Professional Information & Services will be fastest growing Industry Sector in 2009-2014 with 8.2% CAGR • Entertainment & Leisure Media to remain largest of six major Industry Sectors, growing to $353.87 billion in 2014 • Institutional End-User to remain largest and fastest growing Revenue Stream, expanding at a CAGR of 7.3% to $661.48 Billion in 2014

10. Forecast 2009 Communications Industry Spending Communications Spending by Industry Sector Communications Spending by Revenue Stream Marketing Media 6.7% Business & Professional Info & Services 15.9% Advertising 17.1% Education & Training Media & Services 21.3% Institutional End-User 44.2% Marketing Services 18.0% Targeted Media 17.7% Forecast Traditional Consumer Ad Media 13.6% Consumer End-User 20.6% Entertainment and Leisure 24.7% 2009 Communications Industry Spending:$1,055.2 billion

11. Forecast 2014 Communications Industry Spending Forecast Communications Spending by Industry Sector Communications Spending by Revenue Stream Marketing Media 5.5% Advertising 16.8% Business & Professional Info & Services 17.8% Education & Training Media & Services 22.3% Institutional End-User 46.1% Marketing Services 16.3% Targeted Media 19.0% Forecast Traditional Consumer Ad Media 11.4% Consumer End-User 20.6% Entertainment and Leisure 25.3% 2014 Communications Industry Spending:$1,399.0 billion

12. Appendix (greater definition of Communications Industry Sectors) • Business and Professional Information & Services • Targeted Media • Marketing Media • Education and Training Media & Services • Entertainment and Leisure • Traditional Consumer Advertising Media • Examples of companies by Industry Sector

13. Business & Professional Information & Services Forecast • Business & Professional Information • Business Information • Marketing Information • Financial & Economic Information • Credit & Risk Information • General Industry News • Professional Information • Legal & Regulatory Information • Scientific & Technical Information • Health & Life Sciences Information • Business & Professional Services • Business & Professional Processing Services • Payroll & Human Resource Services • Financial Processing Services • Other Outsourcing Services • Business & Professional Technology Services • Institutional Internet Access • Wireless Data • SaaS & Licensed Software

14. Targeted Media Forecast • Direct Marketing • Direct Mail • Telesales • Catalog • E-Mail • Direct Response Television • Other Direct Marketing • Branded Entertainment • Consumer Events • Paid Product Placement • Outsourced Custom Publishing • Custom Magazines • Custom Newsletters • Custom E-Pubs • Custom Tabloids • Pure-Play Consumer Internet & Mobile Services • Pure-Play Internet Services • Pure-Play Internet Advertising • Pure-Play Internet Access • Pure-Play Paid Internet Content • Pure-Play Mobile Services • Pure-Play Mobile Advertising • Pure-Play Mobile Access • Pure-Play Mobile Paid Content • Business-to-Business Media • Trade Shows, Seminars & Conferences • Business-to-Business Magazines • Advertising • Paid Circulation • E-Media Advertising & Content

15. Marketing Media Forecast • Consumer Promotion • Point of Purchase • Coupons • Promotional Licensing • Premiums • Loyalty Programs • Product Sampling • Games, Contests & Sweeps • Business-to-Business Promotion • Promotional Products • Travel & Incentive Marketing • Public Relations & Word-of-Mouth Marketing • Public Relations • Word-of-Mouth Marketing

16. Education & Training Media & Services Forecast • Education & Training Media & Services • Not-For-Profit College Instructional Media • K-12 Instructional Media • For-Profit Educational Services • Outsourced Corporate Training

17. Entertainment & Leisure Forecast • Subscription TV • Subscription & Content • Advertising • License Fees • Entertainment Media • TV Programming • Home Video • Videogames • Recorded Music • Box Office • Consumer Book Publishing • New Books • Used Books • Audio Books • E-Books, Digital Content & Advertising

18. Traditional Consumer Advertising Media Forecast • Broadcast Television • Network & Local Station Advertising • Network Advertising • National & Local Spot • Online & Mobile Advertising & Content • Retransmission Fees • Newspaper Publishing • Daily Newspapers • Print Advertising • Print Circulation • Weekly Newspapers • Digital Advertising & Content • Consumer Magazine Publishing • Advertising • Circulation • E-Media and Mobile Platforms • Broadcast & Satellite Radio • Broadcast Radio • Radio Stations • Radio Networks • Satellite Radio • Online & Mobile Advertising & Content • Yellow Pages Directories • Print Yellow Pages • Telephone Company Publishers • Independent Competitive Publishers • Internet Yellow Pages • Out-of-Home Media • Traditional Out-of-Home • Digital & Alternative Out-of-Home

19. Examples of Companies by Industry Sector Marketing Media Business & Professional Info & Services Education & Training Media & Services Targeted Media Forecast Entertainment and Leisure Traditional Consumer Ad Media Please note, the VSS Forecast doesn’t not report or forecast any information regarding any specific company. The list above is solely for reference to ensure readers understand the composition of each Industry Sector.