1. CONSUMER & ADVERTISER COUPONS/DEALS SURVEY SEPTEMBER 27, 2011

2. Question: 28 Introduction The following slides represent a sample of results from surveys conducted by Borrell Associates and Presslaff Interactive through local media partners. These data point in the first set of slides represent what people who frequent local media websites think about deals and coupons programs. The last half of the slides feature results from a simultaneous survey that gauged what local advertisers think about these programs. The full data is available for a fee. Media companies that participated in the survey can also access the specific results from their markets. To access that data, contact Greg Harmon at gharmon@borrellassociates.com or Michelle Novak at mnovak@presslaff.com.gharmon@borrellassociates.com

3. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. And The Winners Are... Consumer Winner Masud Warid – Charleston, SC Advertiser Winner Carol Kirchner – president of Smart Feet, Savannah, GA

4. Question: 28 First, Coupons

5. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Consumer Survey Respondent Group Age Respondents = 39,040

6. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Respondent Group Respondents: Solicited through local media company websites. Total Number of Consumer Respondents: 39,040 Total participating media properties: 125 properties in 114 markets Conducted: Via online survey from August 1 – September 9, 2011 Incentive: $500 American Express gift card. Originating Media Site: Newspaper: 46% of respondents Radio: 44% of respondents TV: 10% of respondents

7. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. The Big Aha Consumers LOVE deals  44% of respondents have signed up for 4 or more email lists  91% said they’re likely to register for other deals sites Advertisers are getting results, and more may jump in  81% have NOT yet participated in a deals program yet.  The average deal brings 86 new customers to a business, and of those, 20 become higher-value repeat customers

8. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Coupons… Coupon Use refers to a free means of saving money on a product or service, versus Deals Certificates that require an upfront payment as a means to saving.

9. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Coupon Redemption for Past 2 Years Source question for this chart: “Thinking of the coupons that you have actually redeemed in the last two years, where did you find those coupons?” Respondents = 38,089

10. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Age Plays a Factor In Coupon Usage Source question for this chart: “Thinking of the coupons that you have actually redeemed in the last two years, where did you find those coupons?” Respondents = 38,089

11. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Frequency of Coupon Usage Source question for this chart: How often do you use coupons? Respondents = 29,594

12. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Use Coupons To … Source question for this chart: Do you use coupons to… Respondents = 37,924 Good for Marketing!

13. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Number of Coupon Email Lists Registered Mean Number 3.6 Source question for this chart: How many different email lists have you signed up for to get coupons, special offers, etc.? Respondents = 33,439

14. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Overall Email Registration Average 3.6 Lists Gender DifferencesAge Differences Source question for this chart: How many different email lists have you signed up for to get coupons, special offers, etc.? Respondents = 33,439

15. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Desired Frequency of Coupon Email Alerts Source question for this chart: How frequently do you prefer that any single source send you an email alerting you to coupon offers? Respondents = 26,382

16. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Coupon Emails Received On Daily Basis Source question for this chart: On average, how many coupon emails do you get on a daily basis? Respondents = 33,476 Mean Number 3.3

17. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Desired Frequency of Coupon Email Alerts Source question for this chart: How frequently do you prefer that any single source send you an email alerting you to coupon offers? Respondents = 26,382 Good for Strategic Planning!

18. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Younger/Female Get More Email Coupons Age DifferencesGender Differences Source question for this chart: On average, how many coupon emails do you get on a daily basis? Respondents = 33,476

19. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Source question for this chart: Have you ever printed and redeemed an online coupon for a local business? Respondents = 37,813 Coupons Redeemed for Local Business

20. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Seek Online Coupons Before Purchasing Source question for this chart: When buying a product or service, how frequently do you go online to look for coupons before actually purchasing from a store or business? Respondents = 19,085 Good for Marketing!

21. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Seeking Online Coupons Before Purchase By Demographics Source question for this chart: When buying a product or service, how frequently do you go online to look for coupons before actually purchasing from a store or business? Respondents = 19,085

22. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Coupon Usage Compared to a Year Ago Source question for this chart: Compared to a year ago, are you using coupons from any source more/less/the same than you did a year ago? Respondents = 32,291

23. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Opportunity For New Local Offerings Source question for this chart: If you found out about a new coupon service offering discounts for local merchants in your area, how likely is it that you would register for it? Respondents = 32,291 Good for Strategic Planning!

24. Question: 28 Now, Deals

25. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Deals Deals are the kind of programs that require an upfront purchase of a certificate in order to save money on a product or service.

26. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Registered for Deals Certificates Sites Source question for this chart: Which, if any, of the following have you ever registered for in order to purchase a Deals Certificate? Respondents = 38,089

27. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Women Are Into Deals Craze Source question for this chart: Which, if any, of the following have you ever registered for in order to purchase a Deals Certificate? Respondents = 38,089

28. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Frequency of Checking For Deals Checking Emails: 7 in 10 check the emails daily Source question for this chart: How often do you check a website for Deals Certificate offerings? Respondents = 31,136 Checking Website: 2 in 10 check the website daily

29. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Desired Frequency for Deals Email Source question for this chart: How frequently do you prefer that any single source send you an email alerting you to Deals Certificate offers? Respondents = 21,103 Good for Strategic Planning!

30. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Number of Deals Received Daily Source question for this chart: On average, how many different Deals Certificate emails do you get on a daily basis? Respondents = 31,246 Mean Number 3.3

31. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Purchased Daily Deals Sources Source question for this chart: Have you ever actually purchased a Deal Certificate from any of the following? Respondents = 30,501

32. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Impact of Age on Purchase Site Source question for this chart: Have you ever actually purchased a Deal Certificate from any of the following? Respondents = 30,501

33. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Media Source for Deal Purchase Source question for this chart: Have you ever actually purchased a Deal Certificate from any of the following? Respondents = 30,501

34. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Deals Purchased in the Past 6 Months Mean number 4.4 Source question for this chart: In the last six months, how many Deals Certificates have you purchased, from any deal certificate source? Respondents = 27,682

35. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Factor on Number of Purchased Deals Age DifferencesGender Differences Source question for this chart: In the last six months, how many Deals Certificates have you purchased, from any deal certificate source? Respondents = 27,682

36. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Purchase Deals Certificates To… Source question for this chart: Do you purchase Deals Certificates to... Respondents = 27,356 Good for Marketing!

37. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Opportunity for New Daily Deals Site Source question for this chart: If a new Deals Certificate website was offered in your area, how likely is it that you would register for it? Respondents = 31,398 Good for Strategic Planning!

38. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Top Deals Categories for Consumers Source question for this chart: From which type of businesses are you most interested in seeing Coupons or Deals Certificates? Respondents = 39,011

39. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Most Interested Categories MenWomen Diff Men:Women Food78%87%-9% Restaurants78%83%-6% Entertainment56%64%-8% Automotive53%47%6% Electronics49%32%17% Sporting events44%33%11% Clothing41%61%-20% Family Entertainment41%50%-9% Weekend getaways/Hotel40%46%-6% Online Stores38%40%-2% Home Services21%26%-5% Adventure packages20%23%-3% Pets services18%28%-9% Massage/Spas16%34%-18% Furniture13%18%-5% Fitness Clubs/Programs12%21%-10% Medical11%17%-6% Educational Classes11%20%-10% Photography6%11%-5% Professional Services6% 0% Other4% 0%

40. ADVERTISER RESULTS

41. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Respondent Group - Advertisers Respondents: Solicited through local media company client bases Total Number of Advertiser Respondents: 729 Total participating media properties: 20 Conducted: Via online survey from August 8 – September 9, 2011 Incentive: $500 American Express gift card. Originating Media Sites: 13 Newspaper 5 Radio 1 TV 1 Unclassified

42. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Advertiser Coupon Usage Source question for this chart: Are Coupons part of your regular advertising and marketing strategy? Respondents = 729 Distribution Models% Yes, distributed via mail 40% Yes, distributed in the newspaper 39% Yes, available on social media sites like Facebook and others 37% Yes, I include coupons in my company/store emails 34% Yes, I have coupons available on my company/store website 33% Yes, on a local media company's website 24% Yes, available on mobile devices (cellphones and smartphones) 21% Yes, through another coupon distribution type not listed here 21% Yes, on a national coupon service website 9% Respondents 290 ADVERTISER RESULTS

43. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. New Coupons Offered Source question for this chart: If Coupons are part of your advertising strategy, how often do you present a new coupon/offer? Respondents = 343 ADVERTISER RESULTS

44. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Reasons Coupons Are Used Source question for this chart: If Coupons are part of your strategy, are they for... Respondents = 329 ADVERTISER RESULTS

45. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Coupons and “Deals” One in five of responding advertisers reported diverting money from other models into coupons. Source question for this chart: Have you participated in a "Deal of the Day" or similar program where consumers purchase a certificate at a discount for your business? Respondents = 731 19% of responding advertisers participated in deal programs Source question for this chart: Over the last year, have you diverted marketing dollars away from other types of advertising in order to offer coupons? Respondents = 345 ADVERTISER RESULTS

46. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Deals Programs Used ADVERTISER RESULTS

47. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Satisfaction with Daily Deal Sites Coupon DistributorVery satisfied Somewhat satisfied NET Satisfied LivingSocial.com 40%23%63% Groupon.com 30%32%62% Other national deals program 16%40%56% Other local deals program 15%40%55% Sponsor Local media deals program 11%41%52% Woot.com 25% 50% Google Offers 0%47% Amazon Local 43%0%43% Restaurant.com 16% 32% Red Plum 0% ADVERTISER RESULTS Good for Strategic Planning!

48. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Marketing Strategy Drives Choice Source question for this chart: What is the main reason you chose the particular Deals program(s) provider you use/used? Respondents = 240 ADVERTISER RESULTS

49. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Measuring Deals Success Source question for this chart: What factors are most important in evaluating your success using a Deals program? Respondents = 226 ADVERTISER RESULTS

50. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Positive Results…. On Average How many Deals certificate programs has your business participated in over the last 12 months? 4.9 Among the programs you participated in, how many total Deals certificates were purchased for your business? 191 What percentage of the Deals redeemed spent more than the value of the certificate? 29% What percentage of the Deals redeemed were new customers? 45% What percentage of the Deals resulted in customers returning to do more business with you after they redeemed the offer? 22% Over the last year, have you diverted marketing dollars away from other types of advertising in order to participate in a Deals program? 19% ADVERTISER RESULTS Good for Marketing!

51. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. But, Not All Would Repeat… Source question for this chart: If you've participated in a Deals program, will you do so again? Respondents = 159 ADVERTISER RESULTS

52. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. The Opportunity Source question for this chart: What would make you interested in a new or different Deals program? Respondents = 232 ADVERTISER RESULTS

53. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Advertiser Comments “ Great deal for the customer, great deal for the program that runs it. Not a good deal for me. Customers tend to spend pennies more than the certificate, and many of them are irritated that they have to pay the sales tax and/or that they can't combine it with another in- store special. I don't think that this sort of bargain shopper is my target market.” ADVERTISER RESULTS “These "deal programs" can enhance business, if they are not used too much. If used too much they can devalue your product or service. It is a good way to get a "burst" of business then the business must sell itself to get the customer back at regular prices.”

54. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Observations/Recommendations  Consumers love deals/coupons programs.  A significant percentage of consumers say they use deals to try new products or services  The top 3 categories with the biggest opportunity are universal: Food/Groceries, Restaurants, Entertainment.  Consumers say they prefer weekly emails although they’re getting (and reading) them daily.

55. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Observations/Recommendations  How do you make your program stand out? Use the power of your Media marketing Focus on the look/feel of your email  Leverage the audience for your own benefit: With all that extra site traffic to the deals/coupons site – are you converting them back over to your website/publication/station? Cross promote on the site/in the emails. Brand your paper/station through these programs  Overwhelming majority of advertisers provide coupons, but have NOT participated in deals program. Get their business with: Better revenue split Bigger database—Get to work on growing it Better marketing—You can OWN that; it’s something the national programs can’t do

56. © Borrell Associates Inc. & Presslaff Interactive Revenue Coupons/Deals Survey September 2011. Public use of these slides is allowed as long as copyright credit is included. Questions? Contact: Greg Harmon Senior Research Analyst Borrell Associates, Inc gharmon@borrellassociates.com 415-566-4348 Michelle Novak Manager, Client Sales & Service Presslaff Interactive Revenue mnovak@presslaff.com 203-857-4277