1. Online News Financial Independence Have the Business Models Come of Age? Presented by John Granatino 5th International Symposium on Online Journalism University of Texas, April 16, 2004

2. Agenda A bit about Belo Original registration goals Advertiser case study The results

3. A Bit About Belo Belo Interactive is the Internet subsidiary of Belo – the nation’s 9th largest media company with more than 150 years of building loyal audiences.

4. A Bit About Belo Local market dominance BI attracts on average 5.5 million visitors generating over 110 million page views a month. 1 DallasNews.com and projo.com are the most visited local news and information web sites for their markets. 2 The following Belo Interactive Web sites are the most visited local television-affiliated sites in their markets: 3 -azfamily.com, Phoenix- KGW.com, Portland -KING5.com, Seattle- KHOU.com, Houston -KVUE.com, Austin- KMOV.com, St. Louis 1. BI Web Logs, 2003 2. Nielsen//NetRatings Q2 2003 Custom Report 3. The Media Audit – Phoenix 4/03; Seattle 6/03; Austin 5/02; Portland 6/03; Houston 8/03; St. Louis, 7/03

5. A Bit About Belo Recognition from our peers 2004  Murrow Awards: KGW.com, WFAA.com, KTVB.com, KMOV.com, WVEC.com, WWL-TV.com  AP Regional Awards: Dallas, Norfolk, Portland 2003  Sigma Delta Chi: KGW.com  Online News Association: DallasNews.com  EPpy award: DallasNews.com  Murrow Awards: KGW.com and KREM.com  AP Regional Awards: DallasNews.com, KGW.com, Projo.com 2002  Murrow Awards: KREM.com, WFAA.com, KVUE.com, NBC6.com, WWL-TV.com  NAA Digital Edge Award: Projo.com  AP Regional Awards: DallasNews.com, WFAA.com, KGW.com, KVUE.com

6. Registration Goals 1. Identify and value customer segments 2. Increase audience loyalty and value 3. Migrate audiences 4. Increase advertising impact

7. Registration Goals October 2000: Planning May 2001: Launch August 2001: 1 st email sale February 2003: Audience management system May 2003: Offer targeted online advertising based on declared or behavioral data profiles September 2003: Launched broad suite of Precision Advertising Solutions October 2000: Planning May 2001: Launch August 2001: 1 st email sale February 2003: Audience management system May 2003: Offer targeted online advertising based on declared or behavioral data profiles September 2003: Launched broad suite of Precision Advertising Solutions

8. Goal 1: Identify & Value Customers Who are your heaviest users in recency, frequency and amount, and what do you know about them?  Represent 5% of total users  Consume 51% of page views  Tend to be higher income and slightly younger than print readers  Do not subscribe to the newspaper (94%)

9. Goal 1: Identify & Value CustomersInterests/HobbiesDemographics BI’s customer profile 6.3 million registrations 1.9 Million targeted email subscribers 6.3 million registrations 1.9 Million targeted email subscribers 62% 77%

10. Goal 2: Grow Audience Value New visitor/Trial Retention/Growth Loyal customer Grow loyalty/ usage News News Customer experience Customer experience Promotion Promotion

11. Goal 2: Grow Audience Value Full audience management Technology enables “behavioral” tracking on our websites Integrates registration data to enable demographic or interest category targeting Ad server designed to predict, deliver, report on audience segments REGISTER AUDIENCE DEFINE AUDIENCE GROUPS DELIVER TARGETED ADVERTISING Ad Serving System MEASURE BEHAVIOR Audience Management System

12. Goal 2: Grow Audience Value Online ads can be served based on: Content Section  News  Sports  Weather  Business  Entertainment Traditional site targeting Traditional site targeting Demographics  Gender  Income  Age Lifestyle/Interest  Entertainment  Shopping  Travel Purchase Intent  Real Estate  Employment  Automotive  Financial New targeting options

13. Goal 3: Migrate Audiences Dallas Morning News circulation (785,000) DallasNews.com registered users (1,825,000) Reach opportunity from online Reach opportunity for BI Frequency from duplicated audience (As of Jan, 2004)

14. Goal 4: Increase Advertising Impact Unleash the Internet’s power to deliver “one to one” or addressable marketing.  Define specific audiences – be like traditional media  Increase results – Relevance, efficiency, performance  Develop unique solutions – be different than traditional media

15. Goal 4: Increase Advertising Impact We are able to deliver targeted messages directly to advertisers’ most valuable customers, no matter where those customers travel throughout our sites.

16. Goal 4: Increase Advertising Impact Traditional placement: reach large groups with similar profiles

17. Goal 4: Increase Advertising Impact Client’s message will only reach most valued customer segment, no matter where customer travels on our site Precision placement hits the exact target every time

18. Goal 4: Increase Advertising Impact Targeted Segments: Visitors to the automotive section of DallasNews.com in the past 30 days Measurable Results: »Response rate of 7.7% »Credit applications doubled »Mitsubishi automobile searches increased by 17% on site »Campaign generated 44% of calls at a time when eight promotions were running in other media Targeted Segments: Visitors to the automotive section of DallasNews.com in the past 30 days Measurable Results: »Response rate of 7.7% »Credit applications doubled »Mitsubishi automobile searches increased by 17% on site »Campaign generated 44% of calls at a time when eight promotions were running in other media Targeted Campaign Yields Dramatic Results for Auto Dealer

19. Results: A Competitive Advantage Untargeted audiences: Commodity impressions Lower performance Low consumer relevance Unknown audience reach Targeted audiences: Powerful delivery combinations Efficiency Superior performance Audience relevance Reach and frequency

20. Results: More Efficiency for Advertisers Email revenue more than doubled in 2003  Since 2002, we have delivered more than 1,500 email campaigns  We now have over 700 email clients Average CPM for a targeted campaign is more than double an untargeted CPM  We have delivered more than 150 targeted campaigns  We now have over 50 targeted clients and 20 were new clients to Belo Interactive I can pay for a larger news staff  Belo spends its money disproportionately on journalists, so success in targeting leads to success in content

21. Results: More Money for the Web Site DallasNews.com targeting revenue grew 143% from the first quarter of 2003 to the last quarter

22. Online News Financial Independence Have the Business Models Come of Age? Presented by John Granatino 5th International Symposium on Online Journalism University of Texas, April 16, 2004