Advertising Effectiveness:Beer, Wine, & Liquor Stores

April 2011

Applying Advertising Effectiveness to Your Sales

Efforts ROI - at the forefront of our customer’s investment decisions. Our

key customers expect us to understand their business, provide ad design guidance and ROI metrics on their print investments.

Effective ads maximize ad recall and increase purchase consideration by the consumer. Maximize advertising momentum during prime selling seasons

when people are shopping for our customer’s products and services.

Do the math – calculate the local number of adults shopping or purchasing based on the market research. (See slide 4)

Understand the common elements that successful ads share: layout, deals, headlines, color and size.

For RAM testing markets, if your advertiser’s ad scores above or below the median, review those elements to understand performance.

Remove this slide if presenting deck to advertisers

Source: Estimates of Monthly Retail and Food Services sales by Kind of Business: 2009. 2010 U.S. Census Bureau.

Food Services Sales AreHighest in July and December

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$435Amount the average adult spends on alcoholic

beverages each year.

Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, October, 2010.

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67%Of consumers drink alcoholic beverages.

Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.

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Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.

Age Percentage of adults that drink alcoholic beverages

18-34 72%

35-54 72%

55+ 59%

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Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.

Household Income

Percentage of adults that drink alcoholic beverages

<$20K 46%

$20K-$29,999 51%

$30K-$49,999 66%

$50K-$74,999 78%

$75K+ 81%

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Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.

Education Level Percentage of adults that drink alcoholic beverages

High School Education or Less

58%

Some College 70%

College Graduate 79%

Post Graduate Degree

74%

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Men that drink alcohol

prefer beer over wine or

liquor.

Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.

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Women that drink alcohol

prefer wine over beer or liquor.

Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.

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Drinkers 55 and older choose wine as their

preferred beverage.

Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.

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Source: Nielsen Marketing Charts, 2009.

Store Type Beer Wine Spirits

Grocery 75% 62% 30%

Specialty Grocery 7% 16% 3%

Limited Grocery 2% 3% 1%

Club 22% 25% 17%

Drug Store 13% 9% 11%

Convenience Store 26% 3% 3%

Small Liquor Store 21% 22% 39%

Large Liquor Chain 12% 18% 31%

Mass Merchandiser 27% 19% 7%

Locations Where Surveyed Consumers Purchased Beer, Wine, and Spirits in 2009.

14

15

34

Monthly

Every Other Week

Weekly

Previous Knowledge of Your Business

Source: RAM 2009; Consumer previous knowledge scores based on advertising frequency testing over 13 weeks.

Use Smaller Frequent Ads Throughout the Year

8.8%compared to quarter page

22%compared to half page

Half Page Full Page

Arrow indicates variance between ad sizes 10/25/09-10/25/10US RAM Reference Data – 363 Quarter Pg; 435 Half; Pg 935 Full Pg

Ad Size Significantly Affects Ad Recall

Effective Ads Increase Ad Recall

Strong HeadlinesWell written, bold, and

prominent.

Advertisers are Easy to Identify

Sizable logos with good placement.

Clear Visual HierarchiesAds are centered around a primary focal point while

displaying secondary images.

Visual Layouts Organized Layouts Great Deals

Effective Ads Increase Ad Recall

Source: RAM US Data Alcoholic Beverages ROP Ad Recall Median of 44% based on 118 ads between 7/1/05 – 3/28/11

+14% above median

+18% above median

+14% above median

Methodology• RAM – Research and Analysis of Media - is a complete

research and analysis system to measure how newspaper ads and articles are read and understood.

• Measures include ad recall, brand, message, and purchase consideration of print and web advertising.

• Consists of a database of over 17,800 advertisement and news article references with survey interviews reaching 6.9 million adults. (RAM US Data October, 2010)

• Ongoing internet-based survey developed to measure print and online media’s effectiveness (advertising and news).

• Incentive based internet panels are made up of subscribers and non-subscribers (over 25,700 panelists in Gannett markets).

• Results are weighted based on gender, age and reader frequency of adults 18 and older in the market.