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Table of Contents

CENTER ON ALCOHOL MARKETING AND YOUTH . . . . . . . . . . . . . .1

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

INTRODUCTION - TARGETING YOUTH . . . . . . . . . . . . . . . . . . . . . . .4

SECTION 1 - YOUTH SEE MORE BEER AND DISTILLED SPIRITS ADVERTISING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

SECTION 2 - MAGAZINES WITH YOUNG AUDIENCES AND HIGH ALCOHOL CONTENT . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

APPENDIX A - METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

APPENDIX B - GLOSSARY OF ADVERTISING TERMS . . . . . . . . . . . . .18

APPENDIX C - LIST OF MAGAZINES NOT MEASURED . . . . . . . . . . .19

September 24, 2002

Center on Alcohol Marketing and YouthGeorgetown University2233 Wisconsin Avenue, N.W., Suite 525Washington, D.C. 20007(202) 687-1019www.camy.org

OVEREXPOSED:Youth a Target of Alcohol Advertising in Magazines

Executive Summary

Youth See More AlcoholAdvertising than Adults

America's youth1 saw far more alcoholicbeverage ads in magazines in 2001 thandid people of legal drinking age. Thispattern of the alcohol industry expos-ing youth to more advertising thanadults cut across beverage types andbrands, with the notable exception ofwine. In effect, young people under thelegal drinking age of 21 were a majortarget audience for the industry's mag-azine advertising in 2001, despite theindustry's claims to the contrary.2 Thefollowing analysis shows where andhow the alcohol industry exposedyouth to its products.

Our key findings are:

· More beer and distilled spirits ads:Marketers of beer and distilled spiritsbrands delivered more advertising to

youth than to adults in magazines in2001 - 45% more for beer brands and27% more for distilled spirits brands.3

· More "malternative" ads: Marketersof low-alcohol refreshers, the so-called"malternatives" such as Smirnoff Ice,delivered 60% more advertising toyouth than to adults.

· Fewer wine ads: For wine, the secondleading alcohol advertising categoryin magazines, youth saw 58% lessadvertising than adults. The ability ofmost wine advertisers to reach anadult audience while minimizingreach to the underage audience showshow advertisers can reach an adulttarget audience without overexposingyouth.

· Only young adults see more ads thanunderage youth: Underage youth sawnearly as much advertising as youngadults ages 21-34. Adults ages 35+

were a distant third audience. Forexample, those ages 21-34 saw 16%more beer advertising than youth 12-20, while underage youth saw 95%more beer advertising than adults35+.

· Alcohol ad dollars follow youth audi-ences: Ten magazines with underageaudience compositions at or above 25%accounted for nearly one-third of allalcohol advertising expenditures inmeasured magazines. (In 1999 theFederal Trade Commission pointed to a25% underage audience as an effort bysome companies to limit underageyouth exposure.) In addition, morethan half of the money spent on alcoholmagazine advertising was in 24 maga-zines with youth audiences that exceed-ed 15.8%, the percentage of youth 12-20 in the U.S. population age 12 andover.4 In fact, twenty-five brands placedall of their magazine advertising inyouth-oriented magazines.

1 For this report, unless otherwise noted, "youth" are defined as persons ages 12-20, and "adults" are defined as persons ages 21and over.

2 Center on Alcohol Marketing and Youth. "The alcohol industry on record." September 2002. <www.camy.org>.3 Percentages represent product advertising per capita.4 Based on audience estimates for the MRI 2001 Teenmark Study and the MRI 2002 Spring Adult Study.

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less,10 and the American MedicalAssociation has called for a total ban onbroadcast alcohol advertising.11

But as this report shows, youth expo-sure to alcohol advertising in magazinesis widespread but probably not appreci-ated. In fact, policymakers and otherparents are likely to be surprised by theamount of magazine advertising totheir children and other youth. As thenumbers show, youth ages 12-20 aremuch more exposed to alcohol advertis-ing than adults over the age of 35.

An appreciation of how much tobaccoadvertising was reaching youth precipi-tated policy changes there. And evenafter the 1998 Master SettlementAgreement between the tobacco indus-try and the nation's state attorneys-gen-

Why the Concern aboutAdvertising

The consequences of underage drink-ing are real and tragic. Alcohol useplays a substantial role in all three lead-ing causes of death among youth -unintentional injuries (including motorvehicle fatalities and drownings), sui-cides and homicides.5 Children whobegin drinking before the age of 15 arefour times more likely to develop alco-hol dependence than those who waituntil the age of 21.6 In the most recentfederal survey of school children,16.6% of eighth graders reported hav-ing been drunk at least once in the pastyear, and by the tenth grade, that num-ber is 39.9%.7

Restricting access to alcohol and reduc-ing its appeal to underage youth are thefoundations of the public health strate-gy to reduce underage drinking. Toimplement the reduction in appeal,policymakers and advocates have pro-posed various standards to limit youth'sexposure to alcohol advertising andpromotion. In September 1999, theFederal Trade Commission issued areport reviewing the alcohol industry'sadvertising and marketing practices.The FTC report called on the industryto "raise the current standards to reduceunderage alcohol ad exposure,"8 notingthat some companies restrict advertis-ing to venues where the underage audi-ence is 25% or less.9 Mothers AgainstDrunk Driving has called for restrictingbroadcast alcohol advertising to showswith a youth viewership of 10% or

5 American Medical Association. "Research and Facts about Youth and Alcohol." <http://www.ama-assn.org/ama/pub/category/3566.html>.6 Grant, B.F., D.A. Dawson. (1997). "Age at onset of alcohol use and its association with DSM-IV alcohol abuse and dependence:

Results from the National Longitudinal Alcohol Epidemiologic Survey." Journal of Substance Abuse 9: 103-110.7 Johnston, L.D., P.M. O'Malley, et al. (2002). Monitoring the Future National Survey Results on Drug Use, 1975-2001. Bethesda, MD,

National Institute on Drug Abuse.8 Federal Trade Commission. FTC Reports on Industry Efforts to Avoid Promoting Alcohol to Underage Consumers: Self-Regulation

Can Be Effective, But Third-Party Review Needed. 9 September 1999. <http://www.ftc.gov/opa/1999/9909/alcoholrep.htm>.9 Federal Trade Commission. (September 1999). Self-Regulation in the Alcohol Industry: A Review of Industry Efforts to Avoid

Promoting Alcohol to Underage Consumers. Executive Summary: ii.10 Mothers Against Drunk Driving. MADD Online: MADD's Positions on Responsible Marketing and Service.

<http://www.madd.org/activism/0,1056,1621,00.html>.11 American Medical Association. "Alcohol Availability, Promotion, Taxation & Labeling." <http://www.ama-assn.org/ama/pub/arti-

cle/3342-3626.html>.

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eral, cigarette companies continued touse magazine advertising and exposedyouth to their advertising.12 In the wakeof criticism from the public health com-munity about that tactic, Philip Morris,for instance, ceased advertising in publi-cations where the composition of thoseyounger than 18 was 15% or more ofthe total readership, or where the audi-ence included more than 2 million per-sons younger than 18 years or age, basedon readership data.13

Because this report's data provides aclear picture of how overexposed youthare to alcohol advertising in magazines,the FTC should re-open its inquiryinto the industry's practices.

"Reverse Engineering"Alcohol Advertising

This report employs the same tools,syndicated data sources, and proce-dures utilized by media planners andbuyers to execute advertising cam-paigns. By "reverse engineering" theactual alcohol advertising in magazinesin 2001, this analysis sheds light on theinformation that is available to alcohol

industry marketers when they makedecisions about where and how tospend advertising dollars. Audiencedata for all of the advertising analyzedin this report is tracked by MediamarkResearch Inc. (MRI), the leadingsource of U.S. magazine audience esti-mates for consumer advertising.

Magazine Advertising inContext

Magazines are a uniquely flexible adver-tising medium. They offer advertiserssubstantial exposure to consumers,while still providing precise targeting bydemographic and lifestyle factors basedon specialized content.

Magazine advertising represented25.6% of total reported advertising foralcoholic beverages in 2001.14 This var-ied by beverage group, as distilled spir-its brands use magazines as a primarymedium (82.7% of their reportedspending in 2001), while beer and alebrands predominantly use television.Distilled spirits brands represent themajority of advertising exposures docu-mented in this report.

About This Report

This report analyzes $320 million inalcohol product advertising in maga-zines during calendar year 2001. Thisis all of the magazine expenditures innational magazines measured by MRI,the industry standard for magazineaudience measurement, totaling 80%of all alcohol product advertisingexpenditures in magazines in 2001.

The first section analyzes the amount ofmagazine advertising delivered to youthand adults by different alcoholic bever-age brands. For many beer and distilledspirits brands, the youth populationreceived more advertising than theadult population.

The second section looks at the size andconcentration of the youth audiences inthe magazines in which the alcoholindustry marketers placed ads in 2001.This same information, with all of itslevels of detail, is available to alcoholindustry marketers in making advertis-ing decisions.

tions organizations and marketers in awide variety of market segments andmedia. VMR was established in 1992to provide an independent researchfirm serving advertising agencies, andhas grown to service over 100 clientsacross the US and Canada, includingretail, publishing, financial, automo-tive, public health and other fields.

VMR adhered to industry-standardmethodologies in conducting thisanalysis, using standard industry

The Center on Alcohol Marketing andYouth at Georgetown University moni-tors the marketing practices of the alco-hol industry to focus attention andaction on industry practices that jeop-ardize the health and safety of America'syouth. Reducing high rates of underagealcohol consumption and the sufferingcaused by alcohol-related injuries anddeaths among young people requiresusing the public health strategies of lim-iting the access to and the appeal ofalcohol to underage persons.

The Center is supported by grants fromThe Pew Charitable Trusts and TheRobert Wood Johnson Foundation toGeorgetown University.

Virtual Media Resources

The Center commissioned VirtualMedia Resources to conduct this analy-sis. Virtual Media Resources is a mediaresearch, planning, market analysis andconsulting firm based in Natick,Massachusetts, serving communica-

Center on Alcohol Marketing and Youth www.camy.org

12 Turner-Bowker, D., W.L. Hamilton. (2000). "Cigarette Advertising Expenditures Before and After the Master Settlement Agreement:Preliminary Findings." Massachusetts Department of Public Health.

13 Philip Morris U.S.A. Our Responsibility-Responsible Marketing. <http://www.philipmorrisusa.com/DisplayPageWithTopics917.asp>.

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What does it mean to "target youth" orany audience? Advertisers seek to reachtheir target audiences by selectingmedia:

1) where their intended audiences arehighly concentrated;

2) that provide broad reach of theseaudiences;

3) that provide a supportive environ-ment for advertising messages;

4) that are priced to deliver these audi-ences efficiently.

In today's media-rich environment,advertisers can use demographicresearch to fine-tune their advertisingplans. This research allows advertisersto reach audiences that may be seg-mented by their interests, age, gender,income and numerous other factors.This is especially true in the publishingindustry, where magazine content existsfor a multitude of demographic andinterest-based segments, and whereaudience data are available from a num-ber of accepted industry-standard dataproviders.

How well a target audience is hit maythus be measured with precision.Advertising exposure is most common-ly measured in terms of reach, frequen-cy, impressions, rating points and audi-ence composition. Complete defini-tions are in the Glossary, but for read-ing this analysis the following summarydefinitions are provided:

· Reach is used to describe the percent-age of a given age group that has theopportunity to see an ad or a cam-paign ("75% reach of ages 12-20")through exposure to specific media.

· Frequency indicates the number oftimes individuals have an opportunityto see an ad or campaign throughexposure to specific media; it is mostoften expressed as an average numberof exposures. For example, an averagefrequency of 6.8 shows that, of thosereached, the average individual saw anad 6.8 times.

· An advertising impression is an expo-sure of a person to a publication inwhich an ad appears; impressions aretypically cited in relation to a specifictarget audience and usually includemultiple exposures.

· Rating points, or GRPs (GrossRating Points), are a measurement oftotal advertising impressions andreflect both reach and frequency.Rating points are the most generalmeasure of advertising exposure andare the measurement used most oftenin this report.

14 Expenditure data are from Competitive Media Reporting (CMR).

Introduction - Targeting Youth

sources, including CompetitiveMedia Reporting, Inc. (CMR), aservice that provides advertisingexpenditure and occurrence informa-tion to advertising agencies, theirclients and the media; andMediamark Research Inc. (MRI) andSimmons Market Research Bureau,Inc. (SMRB), services that provideaudience estimates for magazines andother media.

More information about the method-ology used to create this report isincluded in Appendix A.

AcknowledgementsThe Center on Alcohol Marketingand Youth would like to thank thefollowing researchers for their inde-pendent review of this report. Theopinions expressed in this report arethose of the authors and do not nec-essarily reflect those of the founda-tions or reviewers.

Robert A. FrydlewiczFormer Vice President, MediaResearch Director, Foote, Cone &Belding, New York and N.W. Ayerand Partners, New York

Stu GrayFormer Senior Vice President,Director of Media Resources, BBDONew York; Member of the Board ofDirectors of the Advertising ResearchFoundation

Michael Siegel, MD, MPHAssociate Professor, BostonUniversity School of Public Health

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Total youth exposure to beer and distilled spirits advertising in print in 2001 was systematic and pervasive. On average, youthsaw much more print alcohol advertising for a wide range of products than did the legal-age population of adults.

Section 1 - Youth See More Beer and Distilled Spirits Advertising

15 Though they are called "low-alcohol refreshers" by the alcoholic beverage industry, many of the beverages in this category contain5% alcohol, more than most beers.

16 CMR 2001, 2002

· For beer and ale, youth saw 45% more ads than adults (Table 1).

· For distilled spirits, youth saw 27% more ads than adults. This is particular-ly significant because distilled spirits ads accounted for 82% of all youth printalcohol advertising impressions.

· "Low-alcohol refreshers"15 was one of the fastest-growing alcohol advertisingcategories: in the first six months of 2002, measured ad spending across allmedia on these "malternatives" or "alcopops" was $85.2 million, compared to$35.4 million in the first six months of 2001.16 In this category, theyouth/adult reach disparity was greatest: 62% of the youth population wasreached in 2001, compared to only 44% of the adult population.

· Only among wine advertisers was the ratio clearly tilted towards legal-ageaudiences. On average, youth received 58% fewer wine magazine advertisingmessages than adults.

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In addition to the demographic split of 12-20 and 21+, which divides the legal drinking age population from the underage pop-ulation, an analysis was conducted of the audience exposure using other demographic splits, youth 12-20 vs. adults ages 21-34vs. adults ages 35 and older.

Underage youth saw nearly as much advertising as young adults ages 21-34. Adults ages 35+ were a distant third audience.

Brands Expose Youth to More Advertising

A number of beer and distilled spirits brands exposed significantly more youth than legal-age adults to their advertising. Ananalysis of brands with the most advertising directed at the youth audience in 2001 demonstrates this.

Nine of the ten beer and ale brands with the largest youth magazine audience in 2001 (Figure 2), exposed youth to more alco-hol ads than adults. In fact, the top four brands had youth ad exposure that was more than 70% higher than adult ad expo-sure. Miller Lite had the most beer advertising delivered to youth, with 76% more exposure to youth than to adults. OnlyMiller High Life in this analysis delivered more magazine advertising to adults than to youth.

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Those ages 21-34 saw 16% more beer advertising than youth ages 12-20, but youth ages 12-20 saw 95% more beer advertis-ing than adults over 35.

A similar set of analyses was conducted for distilled spirits brands with the most advertising directed at the youth audience in2001. Nine of the ten distilled spirits brands with the largest youth magazine audience more effectively reached youth thanadults in 2001. Kahlua and Amaretto, representative of several liqueur and cordial brands, delivered to youth at least 60% moreadvertising than to adults. Rum is another large category that delivered advertising to youth with brands including Bacardi,Captain Morgan, and the Commonwealth of Puerto Rico (promoting Puerto Rican rum). Absolut vodka delivered virtuallythe same amount of advertising to youth as to the adult population in 2001.

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Those ages 21-34 saw 26% more distilled spirits ads than youth 12-20, but youth saw 63% more distilled spirit ads than adultsover 35.

In contrast, only two of ten wine brands with the largest youth magazine audience in 2001- Luna Di Luna Wine and TaittingerChampagne - more effectively reached youth than adults.

Turning Leaf wine showed the most adult-oriented pattern of advertising of the brands examined, as youth were exposed to61% less advertising than adults.

Those ages 21-34 saw 126% more wine ads than youth, and adults over 35 saw 144% more wine ads than those ages 12-20.

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The ability of most wine advertisers to reach an adult audience while minimizing reach to the underage audience is an exam-ple of how magazine audience screening can reach a target audience without overexposing youth.

As mentioned previously, the "low-alcohol refresher" brands are significantly increasing their magazine advertising presence. Inthe first six months of 2002, total advertising dollars for these products increased 241% over the first six months of 2001.

In addition, a May 2001 poll by the Center for Science in the Public Interest found that, by a three to one margin, teens reportmore familiarity than adults with "alcopops," and 17- and 18-year-olds are twice as likely to have tried them.17 Though theyare called "low-alcohol refreshers" by the industry, many of the beverages in this category contain 5% alcohol, more than mostbeers.

The analysis of "malternatives" shows that all seven brands with magazine advertising in 2001 delivered more ads to youth audi-ences than to adult audiences.

17 Center for Science in the Public Interest. "Summary of Findings: What Teens and Adults are Saying about Alcopops." Booze News.May 2001. <http://www.cspinet.org/booze/alcopops_summary.htm>.

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Those ages 21-34 saw 20% more low alcohol refresher ads than youth ages 12-20, but youth saw 144% more low alcoholrefresher ads than adults over 35.

A population index greater than 100indicates that the audience is highlyconcentrated with a particular demo-graphic group, while an index below100 indicates that a group is under-rep-resented in a magazine's readership.Vibe is an example. The readership ofVibe has a youth 12-20 audience com-position of 41% and a populationindex of 261. As such, a media plannerwould consider Vibe a superior medi-um for reaching the youth population.

More than half of the money spent onalcohol magazine advertising in 2001was in 24 magazines with youth audi-ences that exceeded the proportion ofyouth in the population age 12 andover. Ten magazines with a youth audi-ence of more than 25%_Vibe, Spin,Rolling Stone, Allure, Car and Driver,Maxim, Glamour, Motor Trend, In Style,and Sports Illustrated_accounted fornearly one-third of alcoholic beverageadvertising in 2001 in measured maga-zines.

Advertisers typically seek magazineswith high concentrations of their targetaudience. By that standard, a maga-zine's audience concentration stronglysuggests the audience that its advertisers

intend to reach. A number of the mag-azines in which alcohol products wereadvertised in 2001 had especially highconcentrations of youth readers ages12-20.

Specifically, media planners look at the"audience composition" and "popula-tion index" of a magazine to determinehow effectively it will reach a particularaudience, such as youth 12-20.Audience composition is the percentageof the total readership of a magazinethat matches a particular demographicgroup. Population index is the ratio ofthe audience composition to the demo-graphic group's percentage in the gen-eral population.

Section 2 - Magazines with Young Audiences andHigh Alcohol Ad Content

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Table 3 shows 24 magazines with alcohol advertising in 2001 that had a youth readership composition of 16% or more. Theseexpenditures total more than $168 million - more than half of all alcohol industry expenditures in measured magazines.

12

An analysis of 43 magazines with more than $3 million each in alcohol advertising in 2001 found six magazines with very highconcentrations of youth readership versus adult readership.

Figure 10 shows the concentration of an age group in a magazine audience relative to the concentration of that same age groupin the base population of persons ages 12+. Take Sports Illustrated, for example. For Sports Illustrated, the 12-20 readership is24.8% of all readers, while this same age group represents only 15.8% of the population age 12 and over. Therefore, the rela-tive index of youth readers ages 12-20 is (24.8/15.8)*100 = 157. That is, Sports Illustrated has a youth audience that is 57%more concentrated than the general population.

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The following table lists the five most-advertised alcohol brands in the six magazines above:

14

Following where the alcohol advertising dollars were spent in 2001 also demonstrates the exposure of youth to the industry'sads. Of the top 10 magazines, ranked by alcohol ad dollars spent in 2001, eight of them had youth readerships above 15.8%(the concentration of youth ages 12-20 in the general population age 12 and over).

With the extent of audience research available, mar-keters who choose to advertise in Spin, Vibe, RollingStone, and Maxim know they will reach a large num-ber of youth ages 12-20.

Analyzing the percentage of ad spending that alcoholicbeverage brands place in youth-oriented magazines18

provides another insight. Seventy-two (72) of 205brands that advertised in measured magazines in 2001placed more than 50% of their advertising dollars inyouth-oriented magazines. Included in this group of72 brands were 25 brands that placed 100% of theirmagazine advertising in youth-oriented magazines(Table 6).

18 Youth-oriented magazines are magazines with an ages12-20 audience composition of greater than 15.8%. Inother words, these are magazines with youth audiencecomposition greater than the general population age 1and over.

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enforcement than is currently availablethrough the voluntary codes of theindustry. For instance, MothersAgainst Drunk Driving (MADD) hasasked that the industry refrain fromadvertising in venues where more than10% of the audience is under the legaldrinking age.22

From the evidence presented here, theCenter on Alcohol Marketing andYouth believes that the alcohol industryhas not heeded the recommendationsof the FTC, and therefore calls uponthe FTC to re-open its inquiry into thepromotion of alcohol to underage con-sumers.

In its 1999 report Self-Regulation in theAlcohol Industry: A Review of Efforts toAvoid Promoting Alcohol to UnderageConsumers, the Federal TradeCommission rightfully pointed out:"Underage alcohol use is a significantnational concern."19 Alcohol plays asubstantial role in the three leadingcauses of death among youth, and chil-dren who begin drinking before the ageof 15 are four times more likely todevelop dependence than young adultswho wait until age 21.20

To address underage drinking and theimpact of alcohol industry advertising,the Commission concluded "improve-ments are needed both in code stan-

dards and implementation to ensurethat the goals of the industry [voluntarymarketing] codes are met."21 Based onthe evidence presented in this report, itis apparent that when it comes to mag-azine advertising for alcohol, industryself-regulation is not working. Youngpeople are overexposed to alcoholadvertising, and numerous alcoholadvertisers have chosen to place theirpromotional messages in magazineswith disproportionately large youthaudiences.

In addition to the FTC, numerouspublic health and safety organizationshave called for stricter standards foralcohol advertisers, and for stronger

Conclusion

Appendix A - Methodology

19 Federal Trade Commission. (September 1999). Self-Regulation in the Alcohol Industry: A Review of Industry Efforts to AvoidPromoting Alcohol to Underage Consumers. Executive Summary: i.

20 Grant, B.F., D.A. Dawson. (1997). "Age at onset of alcohol use and its association with DSM-IV alcohol abuse and dependence:Results from the National Longitudinal Alcohol Epidemiologic Survey." Journal of Substance Abuse 9: 103-110.

21 Federal Trade Commission. (September 1999). Self-Regulation in the Alcohol Industry: A Review of Industry Efforts to AvoidPromoting Alcohol to Underage Consumers. Executive Summary: ii.

22 Mothers Against Drunk Driving. MADD Online: MADD's Positions on Responsible Marketing and Service.<http://www.madd.org/activism/0,1056,1621,00.html>.

Research Process

Our research methodology followed aprocess similar to that of a media plan-ner. We first investigated advertisingspending of all brands in each alcoholicbeverage category. We next used audi-ence research data to quantify thedemographic composition of audiencesreached with each brand's advertisingschedule.

Counting Ads - UsingCompetitive MediaReporting

Advertising occurrence data fromCompetitive Media Reporting (CMR)were used to identify brand advertisingby publication and date. CMR meas-ures over 300 publications in additionto television and other media. CMRand its predecessor companies havebeen an advertising industry standardreference for decades.

For this report, only alcoholic beverageproduct advertising in national or fulleditions of publications, as measured byMediamark Research Inc. (MRI), wasincluded.

We did not include non-product adver-tising.

Advertising in regional editions of mag-azines was omitted, as it is not practicalto assign a national audience estimateto ads appearing in only a portion of amagazine's circulation.

16

Only those publications reported ineither the MRI Teenmark 2001 or theMRI Spring 2002 surveys were includ-ed in the analysis.

By restricting this analysis to productadvertising in full-run circulation ofMRI-reported audiences, we tracked80% of magazine advertising expendi-tures in 2001.

Measuring Audiences

Sources of Magazine Audience DataMediamark Research Inc. (MRI), theleading source of U.S. magazine audi-ence estimates for consumer advertis-ing, conducts ongoing studies of adultsand teens to ascertain publication audi-ence readership. These data are pub-lished twice per year (for adults 18+)and annually (for teens). Audience esti-mates from the Spring 2002 AdultStudy (representing surveys fromMarch 2001 through March 2002) andthe Teenmark 2001 survey (represent-ing surveys from the summer of 2001)were used for this report. The AdultStudy was used for all 18+ estimates,and Teenmark for all age 12-17 esti-mates. While both the Adult Study andTeenmark measure ages 18-19; we usedthe more widely accepted Adult Studyas the source for ages 18-19.

Notes on Magazine Audience ResearchMethodologyThe adult survey methodology uses a"recent reading" technique that identi-fies readers in an average issue of each

publication. The teen survey method-ology, using a household sample drawnfrom the Adult Study, employs a "fre-quency of reading" process in whichrespondents indicate, for those publica-tions they have read or looked into atall within the past 6 months, how many(out of an average four issues) they haveread. The raw data are weighted suchthat a respondent claiming to have readone out of four issues is assigned a .25probability of being in the averageaudience for the magazine, two out offour a .50 probability, etc.

The two surveys represent differingmethodologies - a common feature ofadvertiser-supported media surveys -but they are also the most commonlyaccepted and used magazine audiencesurveys for their respective markets.MRI publishes a combined study of theages 12+ population ("MRITwelvePlus") using a narrow range ofselected magazines reported in both theadult and teen studies, but it does nothave the current data required for acomprehensive review of the alcoholicbeverage category; hence the use in thisreport of the most recent Adult Studyand Teenmark.

Ad Exposure MeasuresTo calculate audience delivery, we cred-ited publication audience estimates fordiscrete demographic cells for eachpublication issue in which a brand wasadvertised. We did not credit multiplebrand insertions within a single issue,for to do so would overstate audience

exposure. We did not differentiatebetween ad type (size, color, etc.), asdifferential advertising impact measuresbased on advertising unit are not uni-versally accepted.

Reach CalculationsAudience reach estimates were calculat-ed using IMS (Interactive MarketSystems) print media evaluation appli-cations and MRI Adult Study andTeenmark. IMS is the leading providerof print media evaluation software foradvertising.

SMRB CorroborationMRI Magazine audience profiles werecompared to those for SMRB(Simmons Market Research Bureau),an alternative source for magazine audi-ences, and were found to generally fol-low the pattern of MRI audience find-ings with normal exceptions based onsampling, timing and methodologyvariations. Were the analysis conduct-ed using SMRB rather than MRI data,the total measured audience exposurefor both underage and legal age popula-tions would have been less, while therelative exposure for underage vs. legalage audiences would have been greater.Since MRI is the industry standard formagazine audiences, it was used as thesource for audience estimates.

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Alcohol Category andBrand Classifications

Category and brand classifications weredefined by Impact, an industry refer-ence published by M. ShankenCommunications Inc., so that the cate-gories and brands represented in thisreport would be consistent with theclassifications used by the industry.

The industry itself is experiencing sig-nificant change, primarily through new"malternative" beverages, which arederived from different bases (mostcommonly malt). These are frequentlymarketed through joint agreementsbetween distillers and brewers, and aregrouped by Impact under a commonlabel: "low-alcohol refreshers."

Magazines and Ads NotCounted

Certain publications with significantalcohol advertising as tracked by CMRare not currently measured by MRI andwere therefore not included in thisanalysis. Of the 153 magazines withalcohol product advertising in 2001, 55were not measured for media audiencesby MRI. These publications represent$51 million in 2001 product advertis-ing for alcoholic beverages.

The magazines and associated alcoholadvertising expenditures not analyzedin this study because of this lack of dataare listed in Appendix C.

Certain other popular publicationswith substantial alcohol advertising arenot yet reported in the MRI teen study,and are only reported in the MRI studyof persons 18 and older. For publica-tions that were not measured or report-ed in the 2001 MRI TeenMark Study,we show no reported audience underthe age of 18. Because this analysis isbased only on published, industryaccepted survey data, we have notattempted to estimate the age 12-17audiences for those publications,although all may be presumed to haveat least some readership under the ageof 18.

The following table represents the different classes of alcohol productsaccording to Impact:

18

Advertising exposure is most commonly measured in terms ofreach, frequency and rating points. We have provided a glos-sary of terms for those unfamiliar with this terminology.

This report makes use of publication readership data, whichare based on audiences, not magazine circulation.Circulation refers to the number of issues purchased or dis-tributed; audience refers to the average number of readers,typically three to ten times as great as circulation.

Target Audience(s)The target audience for advertising provides a description ofthe demographics (age, gender, income, etc) of the people theadvertiser seeks to reach with its message.

ReachReach is used to describe the percentage of a target populationthat has the potential to see an ad or a campaign throughreadership of selected media.

FrequencyFrequency indicates the number of times individuals areexposed to an ad or campaign; it is most often expressed as anaverage number of exposures.

Rating PointsRating points, or GRPs (Gross Rating Points), is a measure oftotal advertising exposure and reflects both reach and fre-quency. One rating point equals the number of exposuresequivalent to one percent of a target population, and it mayinclude repeat exposures. In advertising math, reach x fre-quency = GRPs:

75 Reach (% of the potential audience)x 6.8 Frequency (average number of exposures)= 510 GRPs or Rating Points

CompositionComposition is a measure of audience concentration for aparticular demographic. If the 12-20 age composition ofVibe is 41%, this is a way of stating that 41% of Vibe's audi-ence is between the ages of 12 and 20.

Population IndexPopulation index (or audience concentration relative to pop-ulation) is a statistic that compares the demographic compo-sition of a magazine audience to the composition of the basepopulation. If a magazine's composition is greater than thepopulation for a particular age cell, the index is greater than100; if it is less than the population, it is less than 100.

Appendix B - Glossary of Advertising Terms

The formula is:

19

Appendix C - List of Magazines Not Measured

20

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