Building Readership 2006 Targeting our Best Customers

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Building Readership 2006Targeting our Best
Customers
Prepared by M. Harris, V. Thomas G. Bright
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A Generation is composed of people whose common
location in history lends them a collective
persona
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Why target Baby Boomers?Significant Purchasing
Power

• They control over half the discretionary income
  in the U.S. but receive less than 10 of all ad
  messages
• Between 2005 and 2010, adults 45 and older will
  outspend younger adults by 1 trillion
• 70 the nations net worth is in their hands
• 78 million strong, Baby Boomers are the largest,
  most influential, best educated and most affluent
  generation in American history
• Locally median household income is 40 higher
  than the market average

Sources U.S. Census, U.S. Federal Reserve Board,
Ageless Marketing David Wolfe 2003, 2005 MA Study
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The second reason High Growth

• Every 7.5 seconds someone in America turns 50.
  10,000 Boomers turn 50 every day
• In 2006, the U.S. Census Bureau estimates that
  Baby Boomers will turn 60 at the rate of over
  7,900 every day and 330 every hour
• In Arizona, the 50-65 age segment will grow by
  83 between 2000 and 2020 while 25 to 44 segment
  is projected to grow 32
• They represent a significant part of our core
  products yet there is significant opportunity to
  grow

Sources U.S. Census,2005 Audience Aggregation
Study
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Demographics Geography How important are Baby
Boomers to the market? What makes them unique?
Where can you expect to find them?
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Baby Boomers 1 out of 3 Phoenix adults and 1 out
of 3 area head of households
Adult Population (2.8 million)
Occupied Households (1.4 million)
Source 2005 Audience Aggregation Study, Maxx
Database
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Baby Boomer Republic Subscribers More Affluent

• Even Better Educated 59 have a college degree
  or higher vs. 46 for all Baby Boomers
• Even Higher Income Median HH income of 81,100
  vs. 65,300 for all Baby Boomers
• Same Low Presence of Clt18 63 do not have
  children lt18equal to the market and Baby Boomers
• Lower Hispanic Penetration Only 9 of
  subscribers are Hispanic vs.15 of all Baby
  Boomers
• Greater Homeownership 90 own their home vs. 83
  of all Baby Boomers
• Even Less Likely to Move 78 been in their homes
  gt3 years vs. 73 for all Baby Boomers

Source 2005 Audience Aggregation Study
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Readership
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Because While Nationally Readership Has Fallen
Percent Reading Newspapers Every Day
Source General Social Survey 1972-2004
Source General Social Survey 1972-2004
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Baby Boomers Readers Were Reading in Greater
Numbers When They Were Young Adults and Erosion
Has Been More Gradual
Source General Social Survey 1972-2004
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And over the past 4 years Boomer readership both
continues to lead the market and been more stable

Boomer Sunday
Total Sunday
Boomer Daily
Total Daily
Source Scarborough
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But its essential to find more of our best
customers because only 1 out 4 adults will
reading the daily in 3 years if we do nothing
Sunday reach
Daily reach
Source Scarborough, Internal Estimate
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Circulation Trends

• What is our current subscriber penetration of the
  target group?
• Where are they?

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Household penetration of the target exceeds the
market by 29 but still an opportunity to
acquire more than 66 of Baby Boomer households
Market
Baby Boomers
Source Maxx Database
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Circulation Segmentation - Acquisition /
Retention Grid
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Circulation Segmentation Opportunities by
Quadrant
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Profile of Subscribers by Lifestage/Quadrant
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Todays Focus Mature Years (Our Core
Subscribers)
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Overall Market Size by PRIZM/Lifestage with
Subscribers added
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Overall Market with Ability to Attract index Added
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Attraction index color coded by Quadrant
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FINAL TARGET GROUPS
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Top 50 zip codes 90,966 Households
Source Maxx Database
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High income Baby Boomer Opportunity (by ZIP code)
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The End