Sophistication in Circulation MUG - March 27, 2006

Presented by:

Harmony Crawford

Business Intelligence Manager,

Circulation

Sophistication in Circulation:

Segmentation: What, Who, How

Targeted Sampling

Segmentation at The Seattle Times

What is “Segmentation”?

What/who are the Segments?

How we are using them?

BEHAVIOR

Hours online/week

Frequency of reading …

Seattle Times,

Seattle P-I and

Sunday Times/P-I

NEWS and

INFORMATION

ATTITUDES

14 Measures

DEMOGRAPHICS

Gender

Age

Education

What is Segmentation?

Describes orientation to Seattle Times Company news and information brands

Provides a strategic basis for content development

Provides a common marketing language

Who are the Segments?

MORI Segmentation

15%

18%

12%

13%

9%

12%

12%

9%

Net and Newspapers

Youngest group, active on

the Internet and loyal to

newspapers, but infrequent

readers

Hard News Hungry

Men with interest in hard

news & read Times &

nationals

Newspapers for Life

Women with broad interests who

are strong Times readers &

positive about newspapers

Suburban Roots

Strongest readers of suburban

dailies, localized interests &

less sophisticated

Fun and Family

Young women; TV-oriented.

Are interested in ads and

“Go-Do” features

Hard Wired

Most educated; high

interest in news but use

Internet as main medium

Not About News

Disconnected from the

news-not interested in

much & prefers TV

Go-Do Guys

Men with weak newspaper

habit, soft news interests &

TV-oriented

Who are … Newspapers For Life (15%)

MORI Segmentation

Demographics – Female (gender opposite of Hard News Hungry); older (46%

55+); well-educated (37% college grad); affluent (Median

Income $68.7K, 79% homeowners)

Media Usage – Strong Times Readers – 80% ST past 7; 66% ST yesterday;

97% Sun. T/P-I past mo; 58% say ST is main weekday paper

Weak online (11 hrs) – 24% visited ST.com past mo; ST.com

users also read weekday ST

Strong TV – 90% watch TV news, esp. KING 5 (NBC)

News/Internet Attitudes – Strong for paper value; informed; useful info; serious issues

Strong Sunday newspaper habit

Strong TV consumers, but TV not adequate for news

News Interests – Top news interests: City/town; neighborhoods; medicine;

greater Seattle; health care; nat’l politics; int’l; crime

Greater than Average: Travel; gardening; fitness; schools; PS

growth; store ads; consumer info; latest trends

Newspapers for Life are

boomer/mature women who regard

newspapers as an important daily

ritual. They are upscale, have the

highest percentage of homeowners,

and have lived in the region a long

time. Newspapers for Life consider

newspapers a great value and want

to be well informed. They welcome

advertising and would be lost

without their Sunday paper.

Who are … Hard News Hungry (18%)

MORI Segmentation

Demographics – Male (gender opposite of Newspapers for Life); middle-age

(50% 35-54); well-educated (46% college grad); most affluent

(Median Income $74.1K, 75% homeowners, 39% in city)

Media Usage – Read Times and Nationals – 76% ST, 42% daily national past

7; 46% say ST is main weekday paper

Average online (13 hrs) – 33% visited ST.com past mo; go

online for news, sports & business

Strong Radio & TV – 74% heard radio news past mo, esp

KIRO-AM & KOMO-AM; 87% watch TV news

News/Internet Attitudes – Strong for in-depth news; stay well-informed; paper value

Strong Sunday newspaper habit

Strong radio/TV consumers, but TV not adequate for news

News Interests – Top news interests: Nat’l politics; city/town; neighborhoods;

international; state gov’t; county; major sports; business.

Greater than Average: Science, personal tech; HS Sports

Hard News Hungry are boomer/

mature men who avidly seek hard

news and sports in metro and

national newspapers. They are the

most upscale, well educated, and

homeowners, with many living in the

city. Hard News Hungry crave in-

depth news and analysis, and are

more inclined than other segments

to “read” their news.

Who are … Net and Newspapers (12%)

MORI Segmentation

Demographics – Mostly female (74%); young (58% 18-34); somewhat-educated

(53% started college); families (48% have kids)

Media Usage – News seekers – 62% ST past 7, 38% P-I past 7; 29% daily

national past 7; buy single copy and pass-along;

Strong online (23 hrs) – 44% visited ST.com past mo; go

online for news & entertainment

Strong TV & weeklies –95% watch TV news; 6-in-10 use local

weekly paper for news

News/Internet Attitudes – Strong for stay well-informed; latest news; useful

information; paper value

Buy only on days want paper

Can’t imagine life without the Internet

News Interests – Top news interests: City/town; neighborhoods; crime;

nat’l/int’l; county; entertainment & arts

Greater than Average: State; race/gender; parenting; décor.

Net and Newspapers are mostly

busy, young women who are more

likely to go online for news and

information. Roughly half are college

educated, married, have kids and

own homes. Net and Newspapers

want breaking news and seek deals,

finding newspaper advertising very

useful. Single copy readers during

the week, over half are Sunday

subscribers.

Who are … Hard Wired (13%)

MORI Segmentation

Demographics – 2/3 male; half 18-34; 2/3 college grad+; Median Income $71.6K

Media Usage – Most wired – 25 hrs online; 50% use ST.com, 24% use PI.com

Cutting back print – 40% say weekday; 1/3 Sunday read less;

1/3 use ST.com/not printed paper

Modest newspaper reading – 24% ST or nat’l weekday paper ;

36% read Sunday T/PI past month

ST.com top source for news/info, followed by NPR

News/Internet Attitudes – Strong preference for online vs. print; newspapers outdated

Want in-depth reporting

Not TV oriented; prefer to read

Weak Sunday newspaper habit

No interest in subscribing; buy paper when wanted

Lesser interest in entertaining stories or “fun and games”

News Interests – Top Tier: National/International most important; city/town;

greater Seattle; state politics; county news; environment

Greater than Average: Commentary/editorials; personal

technology; race/gender issues; Puget Sound growth

Hard Wired are mostly men who

satisfy virtually all their news and

information needs online. They are

the most educated segment and a

close second to Hard News Hungry

in household income. Hard Wired

surf for in-depth news and analysis

and have lost interest in

newspapers.

Who are … Suburban Roots (9%)

MORI Segmentation

Demographics – Mostly female (70%); oldest (64% 55+); suburbanites (44%

north; only 15% city)

Media Usage – Suburban dailies dominate – 63% sub. daily in past 7, 18%

ST; 54% say sub. daily is main weekday paper

Weakest online (7 hrs) – 10% visited ST.com past mo

Strong Radio & TV – 75% heard radio news past mo, esp

KIRO-AM & KOMO-AM; 88% watch TV news

News/Internet Attitudes – Positive for news; advertising; subscribing – but not as

strong as others

Interests are in serious issues

Weakest to prefer entertaining sources

News Interests – Top news interests: Neighborhoods; city/town; county; nat’l

pol.; medicine; health care; crime; state politics

Greater than Average: Gardening; editorials; store ads

Suburban Roots are mostly mature-

generation women who are devoted

to their suburban communities and

newspapers. They’re married (or

have been married), are

homeowners, and have the deepest

regional roots. Suburban Roots want

to be well informed, and nearly half

live in Snohomish County.

Who are … Go-Do Guys (12%)

MORI Segmentation

Demographics – Male; young (half 18-34); least educated (58% HS or less);

downscale (Median Income $47.3K)

Media Usage – Weak newspaper habits – 60% read ANY weekday paper in

past week; 35% read ST; 42% read Sun. T/P-I

Weak online (8 hrs) – 19% visited ST.com past mo

Rely on TV –96% watch TV news; 40% want news presented

News/Internet Attitudes – Prefer entertaining & fun news sources

TV news is adequate for high interest in fun & games vs.

serious issues

Buy paper just when they want it

News Interests – Top news interests: City/town; neighborhoods; crime; rec &

major sports; int’l.

Greater than Average: Travel outside WA; classifieds, biz

Go-Do Guys are active, younger men

who gravitate toward entertaining

news sources such as TV. They have

the least education and the second-

lowest household income. About half

are single and renters. Go-Do Guys

want breaking news and prefer “fun

and games” to serious issues. Deals

are desirable. Most avoid the Web.

Who are … Fun and Family (12%)

MORI Segmentation

Demographics – Female; young (55% 18-34); less educated (43% HS or less);

least affluent (Median Income $45.3K); parents (51% have

kids)

Media Usage – General lack of interest in news – Half read ANY paper in past

week; 22% read ST; 39% read Sun. T/P-I in past mo

Weak online (8 hrs) – 23% visited ST.com past mo

Weak radio; Average TV– 40% heard radio news past mo;

84% watch TV news

News/Internet Attitudes – Weak for in-depth news; stay well-informed; paper value

TV is adequate; prefer fun & entertaining news sources

General mistrust of media

News Interests – Top news interests: City/town; county; crime; medicine;

home improvement; state gov’t; things to do

Greater than Average: Classifieds; ads; trends; decorating

Fun and Family are busy, young

women who rely on TV for news and

information. They have the lowest

household income and are the most

likely to have children. Fun and

Family want useful information,

especially if it’s fun or not too

serious. They are bargain hunters

and tend to mistrust the media.

Who are … Not About News (9%)

MORI Segmentation

Mostly middle and lower middle class,

Not About News men and women are

not seekers of news and information.

Many express interest in fun and

games and have moderate viewership

of local TV news. A few read The

Stranger. This segment is most

distrustful of the media.

Demographics – “Average”; slightly younger; slightly downscale

Media Usage – Weak newspaper readers – 1/3 ST past week; 1/2 Sunday

past mo; Single copy buyers

Average online but not ST.com;

Low news interest – only 40% radio news past 4 weeks;

weakest TV news segment; 2/3 easily get along w/o paper

News/Internet Attitudes – Weak newspaper attitudes toward in-depth content and value

Low interest – well-informed; latest news; useful info

High interest – fun and games

Buy paper specific days; TV is adequate

Use online as much as paper in past four weeks

News Interests – Neighborhoods; city/town; county; things to do; crime; major

sports; entertainment/arts – top list, but “average” overall

So…we have segments.

Now what?

New tables in MaaX:

ASEG, ISEG

And a file we call CSEG…which never comes back

into MaaX, but populates our subscriber database

(DISCUS) with segmentation information.

DISCUS Modification

How our customer reps at

APAC use this segment

information:

ePac Modifications: The opening

7_ 7_ 2_

•Testing scripting

•Measuring stop-saves

•Gathering feedback from reps

•Fine tuning and tweaking scripts

How it’s working

•Acquisition campaigns

•Retention efforts •Billing

•Renewal pricing strategy, chain discounting

•Loyalty campaigns

Other opportunities:

More sophistication in our 3rd party programs:

Targeted sampling…

Paid Sampling Program

Price Sheet

Zip code distribution:

2500 + papers = $0.21 per delivery

Target marketing:

2,500 to 10,000 papers = $0.30 per delivery

10,000 + papers = $0.26 per delivery

*all costs include creating, printing and distributing

Hi Amy,

I have a potential client who is interested in reaching

the following profile in 98103, 98105, 98107, 98115

and 98117. Can you please tell me how many non-

subscribers are in each zip code? Thanks!

•Existing homeowners

•Owned for at least two years

•Appraisal value of their home $400,000

Thanks,

Cathy

NoMatch 0 98103 North Seattle 2,102

98087 Lynnwood 0 98105 University Dist. 1,382

98001 Auburn 3 98107 Ballard 690

98002 Auburn 3 98115 NE Seattle 2,704

98003 Federal Way 333 98117 Ballard 1,438

98004 Bellevue 1650 Total: 8,316

98005 Bellevue 1216

98006 Bellevue 2641 Domain History:

98007 Bellevue 596 Table AMST, Query "[AMST.QY_HGC NONACTIVE SFDU ADDRESSES 01-26-06] = 1" : 1220739

98008 Bellevue 1528 Combine with "QY_HGC NO ADDRESS ERROR CODE02-03-06" ( And ) : 1142387

98009 Bellevue PO 0 Combine with "[AMST.BN_HGC CDS DELIVERY TYPE 02-02-06] = "SF RESIDENCE"" ( And ) : 1067605

98010 Black Diamond 0 Combine with "[DEMO.BN_DEMO TABLE RENTERS AND OWNERS RBS 05-17-05] = "OWNERS"" ( And ) : 478575

98011 Bothell 491 Combine with "(Modified) [DEMO.BN_LENGTH OF RESIDENCE RBS 05-17-05 2] IN "2 TO 5 YEARS","6 TO 9 YEARS","10 TO 1..." ( And ) : 425202

98012 Mill Creek 1791 Combine with "[DEMO.Z_MEDIAN_HOME_VALUE] > "249"" ( And ) : 83470

98013 Burton Vashon Is. PO 0

98014 Carnation 626 Crosstab History:

98015 Bellevue PO 0 BN_RBS ZIPS AND NEIGBORHOODS 01-03-06

98019 Duvall 817

98020 Edmonds 1016

We’ve come a long ways…

Route Manager -- Phase I

Development of Route Manager Phase I

• A collaborative effort involving Home Delivery,

IT and CIT to develop Route Manager began

in 2004

• Feedback was gathered from carriers, field

staff and other Newspapers

• Route Manager Phase I will be completed in

March 2006

Route Manager Phase II

• What will we gain by investing in Route Manager II –We will be able to produce a single route list with

both subscribers and non-subscribers

–We will be able to create ad-hoc delivery routes

–We will be able to keep track of non-subscribers that receive a sample paper

–We will be able to automate the process of crediting carriers for paid sample delivery

–We will be able to create billing statements for advertisers who pay for paid sample delivery

• Phase II should be completed by the fourth quarter of 2006

The Seattle Times Company Today List With Sample Delivery List updated: 04/16/2006 5:10:02 PM

Good for delivery: 04/17/05

This route list is provided for your information only and does not suggest a required delivery order. As an independent contractor, you control the delivery sequence of the route.

Alt P T

Draw

Serv

Unit

Start Route: FACTORIA WAREHOUSE

LEFT OUT OF FACILITY SE 26TH ST

TURN LEFT ONTO RICHARDS RD SE

STAY STRAIGHT ON (0.25 MILES) RICHARDS RD SE

MERGE ONTO I-405

VEER RIGHT ONTO RAMP EXIT #9 TO 112TH AVE SE

STAY STRAIGHT ON (0.81 MILES) LAKE WASHNGTON BLVD SE

98056

►6416

►6420S P ►6428

◄6929

►6432S ◄6945

70 TH

ST

98056

P ►1900 D103

► “ “S ► “ “

► “ D201S D206

P ► “ G301S T ► “ S302

74 TH

ST

98056

►2100

►2106S ◄2109

S ►2110

►2114

SAM SAMPLE: 4/17 PORCH

LAZY-BOY WRAP

DS SIDE DOOR PORCHP

P

MF PORCH

T SAM SAMPLE: 4/17 PORCH

LAZY-BOY WRAP

WSJ

U-TURN AT LOCATION

TURN RIGHT ONTO 72ND AVE SE

P DS TUBE ON MAILBOX

SE RENTON

SAM SAMPLE: 4/17 PORCH

LAZY-BOY WRAP

FT D0 APT DOOR

T HANG ON DOOR KNOB

T DS APT DOOR

T SAM SAMPLE: 4/17 PORCH

LAZY-BOY WRAP

WSJ MF APT DOOR

VEER RIGHT ONTO MAIN AVE SE

CROSS OVER SE 19T H ST

DS APT DOOR NOTE:

“CANTEBURY LANE APTS”

NE RENTON

T SAM SAMPLE: 4/17 PORCH

LAZY-BOY WRAP

WSJ MF MILK BOX ON PORCH

T BDS FRONT DOOR

SAM SAMPLE: 4/17 PORCH

LAZY-BOY WRAP

NY DS PORCH

CROSS OVER 113T H AVE SE

TURN RIGHT ONTO SE 64T H ST

RENTON

P mf UNDER MAT NOTE:

“WANDERING CREEK”

Sequenced

LK WASHINGTON BLVD SE

Route

E13501

Thank you!