DIGITAL MAGAZINE MEDIA OFFER EXTRA BENEFITS

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2 CONTENTS 2-3 CONTENTS 4-5 DIGITAL MAGAZINE MEDIA OFFER EXTRA BENEFITS 6 DIGITAL PENETRATION: STATS AT A GLANCE 7 CANADIAN ONLINE USAGE 8 CANADIAN INTERNET ACCESS TREND 9 TIME SPENT CONNECTED TO TECHNOLOGY CANADA 10 TIME SPENT CONNECTED TO TECHNOLOGY REGIONAL 11 AFFLUENTS SPEND MORE TIME ONLINE 12 CANADIAN ONLINE USAGE DEMOGRAPHICS 13 CANADIANS ACCESS CONTENT ONLINE 14 CANADA IS THE FASTEST ADOPTER OF NEW MEDIA TECHNOLOGY 15 SMARTPHONE & TABLET BRANDS USED BY CANADIANS 16 TOP ONLINE AD FORMATS (US) 17 MOBILE APP VS. WEB USAGE GAP IS WIDENING 18 FINANCIAL IMPACT OF DIGITAL VISITORS 19 PENETRATION OF DIGITAL MAGAZINE ISSUES 20 PRINT MAGAZINES EXTEND THEIR BRANDS THROUGH DIGITAL CONTENT 21 CANADIAN MOBILE DEVICE USAGE 22 DIGITAL MAGAZINE MEDIA TOUCH POINTS & SERVICES 23 DIGITAL MAGAZINE MEDIA EDITORIAL-FOCUSED INITIATIVES 24 MAGAZINES LEAN TOWARDS NATIVE APPS 25 TABLETS & READERS 26 TABLET & EREADER OWNERSHIP IN CANADA 27 EREADER PENETRATION IN CANADA 28 PROJECTED TABLET OPERATING SYSTEM BASE 29 FREQUENCY OF MOBILE AD INTERACTION BY DEVICE 30 TABLET & SMARTPHONE USAGE LOCATIONS 31 WHEN, WHERE & HOW READERS CHOOSE TO READ DIGITAL EDITIONS 32 US TABLET OWNERS, BY MODEL 33 AD RECEPTIVITY BY LOCATION AND DEVICE 34 READERS WANT PRINT-LIKE EXPERIENCE ON TABLET 35 MAGAZINE READING HABITS ARE SIMILAR WHETHER DIGITAL OR PRINT 36 CONSUMERS WANT BOTH PRINT AND DIGITAL 37 TABLET USAGE IS FOCUSED AT HOME 38 MOBILE & TABLET OWNERS ACCESS MAGAZINE CONTENT AT HOME 39 TABLET OWNERS ARE YOUNGER & MORE TECHNOLOGICALLY SAVVY 40 OLDER DEMOS ARE ABLE TO READ EASIER ON TABLETS 41 MOBILE OWNERSHIP BY INCOME & EDUCATION 42 SIMULTANEOUS USAGE OF TABLETS & SMARTPHONES 43 TABLET OWNERS READ MAGAZINES 44 MAGAZINE READING BY MOBILE OWNERS 45 PREFERRED TABLET ACTIVITIES 46 REGULAR WEEKLY TABLET ACTIVITIES 47 FREQUENCY OF TABLET USAGE & CONTENT ACCESS 48 TABLET USAGE BY TIME OF DAY 49 PRODUCT CATEGORIES SEARCHED ON TABLETS 50 PRODUCT CATEGORIES PURCHASED ON TABLETS 51 ONLINE SHOPPER ATTITUDES TOWARDS TABLET USAGE 52 TABLET OWNERS LEARN ABOUT APPS VIA PRINT 53 TABLET OWNERS ARE MAGAZINE MEDIA READERS 54 CONTENT PURCHASED FOR TABLETS: MAGAZINES LEAD 55 TABLETS MAKE GREAT SHOPPING PARTNERS 56 AD RECEPTIVITY ON TABLETS BY AD TYPE 57 CLICK-THROUGH RATE BY DEVICE & SCREEN SIZE 58 SMARTPHONES 59 SMARTPHONE OWNERSHIP IN CANADA 60 SMARTPHONES DOMINATE CANADIAN PHONE OWNERSHIP 61 CANADIANS ACCESS INTERNET VIA THEIR MOBILE DEVICE 62 SMARTPHONE PENETRATION IN CANADA 63 SMARTPHONE ADOPTION BY COUNTRY 64 SMARTPHONE PLATFORM MARKET SHARE 65 U.S. SMARTPHONE SUBSCRIBER MARKET SHARE BY OEM 66 SMARTPHONE OWNERSHIP BY AGE & INCOME 67 MOBILE DEVICES: DEMOGRAPHICS BY BRAND 68 AD ENGAGEMENT AND ACTIONS TAKEN: TABLETS & SMARTPHONES 69 SMARTPHONE ACTIVITIES OF CANADIANS 70 WHAT SMARTPHONE MAGAZINE READERS WANT 71 MILLENIALS READ MAGAZINES ON SMARTPHONES 72 MILLENIALS & MAGAZINE ADVERTISING ON SMARTPHONES 73 MAGAZINE READING ON SMARTPHONES 74 MOMS TRUST MAGAZINES 75 AD RECEPTIVITY ON SMARTPHONES BY AD TYPE 76 2D CODES POINT TO E-COMMERCE OR BRAND SITES 77 2D CODE USAGE ON THE RISE IN PRINT 78 CONSUMERS ARE MORE LIKELY TO SCAN QR CODES FROM MAGAZINES 79 SOCIAL NETWORKING 80 GENDER, DEMOGRAPHICS FOR PINTEREST, INSTAGRAM & TWITTER 81 AGE DEMOGRAPHICS FOR PINTEREST, INSTAGRAM AND TWITTER 82 SOCIAL NETWORK USER PENETRATION 83 INSTAGRAM USERS BY DEMOGRAPHIC 84 SOCIAL NETWORKING AGE DEMOGRAPHICS 85 SOCIAL NETWORKING GENDER DEMOGRAPHICS 2

3 CONTENTS 86. BRAND PRESENCE ACROSS SOCIAL MEDIA PLATFORMS 87. MAGAZINE READERS ARE HIGHLY SOCIAL 88. MAGAZINE MEDIA READERS ARE MORE SOCIAL SAVVY THAN THE POPULATION 89. SOCIAL MEDIA ACTIVITY BY SEGMENT 90. SOCIAL MEDIA SHOPPING ACTIVITIES BY SEGMENT 91. SOCIAL MEDIA ACTIVITIES 92. MOMS TRUST IN SOCIAL & TRADITIONAL MEDIA 93. SOCIAL MEDIA ACTIVITY INVOLVING MAGAZINES 94. REASONS FOR VISITING A MAGAZINE'S FACEBOOK PAGE 95. FACEBOOK LIKES AND SOCIAL NETWORKS 96. CONTENT GROUPINGS POSTED ON PINTEREST 97. MAJOR CATEGORIES OF SOCIAL-TO-SALE PURCHASING 98. SOCIAL PURCHASERS 99. VIDEO 100. CONSUMERS ENJOY VIDEO CONTENT 101. FAST-MOVING CONSUMER GOODS AMONG TOP SOCIAL VIDEOS SHARED 102. CONSUMERS WATCH VIDEOS TO RESEARCH PRODUCTS 103. VIDEOS INCREASE CONFIDENCE IN PURCHASES 104. CONSUMERS ENJOY ADS THAT FEATURE VIDEOS 105. READER ACCEPTANCE 106. DIGITAL EDITIONS EARN HIGH READER SATISFACTION 107. PRINT MAGAZINES STILL TOPS WITH AFFLUENTS 108. WHY CONSUMERS APPRECIATE ONLINE ADVERTISING 109. CONSUMER & MARKETER VIEWS OF ONLINE ADVERTISING 110. INTERNET USERS "HATE" MAGAZINE ADVERTISING THE LEAST 111. TIME SPENT READING DIGITAL MAGAZINE ISSUES 112. MAGAZINE TITLES ON BOTH TABLETS & SMARTPHONES SEE INCREASED READING 113. TIME SPENT READING DIGITAL EDITIONS 114. DIGITAL READERS SPEND MORE TIME WITH ENHANCED ADS 115. READING PREFERENCES BY DEVICE 116. CONSUMERS ENJOY READING MAGAZINES ON TABLETS 117. CONSUMERS VIEWS ON PAYWALLS FOR DIGITAL CONTENT 118. DIGITAL MAGAZINES & PAYWALLS 119. DIGITAL MAGAZINE READER BENEFITS 120. CONSUMERS ENJOY ADS THAT FEATURE PHOTO GALLERIES 121. CONSUMERS USE MOBILE DEVICES TO READ NEWS 122. MEN ENJOY INTERACTIVE NEWSREADING EXPERIENCES 123. MAGAZINES INSPIRE MOMS IN THE KITCHEN 124. NEWS CONSUMPTION VIA BROWSERS VS. APPS 125. CONSUMERS GET NEWS THROUGH BOTH BROWSERS & APPS 126 DIGITAL READERS READ BOTH CURRENT & BACK ISSUES 127 READING OCCASIONS OF SAME DIGITAL MAGAZINE ISSUE 128 DIGITAL AD ENGAGEMENT MIRRORS PRINT 129 READERS ARE HIGHLY FOCUSED & ENGAGED ON TABLETS 130 TABLET USER ATTITUDES TOWARDS TABLET ADS 131 CONSUMER ENJOY ADS THAT FEATURE 3D PRODUCT VIEWS 132 CONSUMERS TAKE ACTION 133 DIGITAL MAGAZINES DRIVE READERS TO ONLINE ACTION 134 DIGITAL MAGAZINE ADS INCREASE ENGAGEMENT & KEY PERCEPTIONS 135 CONSUMERS RESPOND TO PERSONALIZED ADS 136 MAGAZINES SPUR CONSUMERS TO SHARE USING THEIR SMARTPHONE 137 DIGITAL READER ACTIONS AFTER DOWNLOADING MAGAZINE CONTENT 138 DIGITAL MAGAZINE READERS ACT AS KEY INFLUENCERS 139 DIGITAL MAGAZINE READERS HAVE AN ACTION ORIENTATION 140 DIGITAL SHOPPER SEGMENTS BY COUNTRY 141 READING PRINT ON A DEVICE IS A PRIMARY SHOPPING CATALYST 142 CONSUMERS INTERACT WITH ADS ON TABLETS 143 WEBSITE TRAFFIC FROM TABLETS AND SMARTPHONES 144 ACTIONS TAKEN AFTER VIEWING ADS ON A DEVICE 145 DIGITAL MAGAZINE READERS WANT ECOMMERCE FUNCTIONALITY 146 MOMS RESEARCH PRODUCTS ONLINE 147 PURCHASE SPENDING BY DEVICE 148 CONSUMERS USE TABLETS TO PURCHASE 149 THE POWER OF TABLETS IN THE PATH TO PURCHASE 150 INTERACTIVE MAGAZINE ADS OUTPERFORM STATIC DIGITAL ADS 151 ROLE OF CONNECTED DEVICES IN SALES FUNNEL 152 RECEPTIVITY TO MOBILE ADS BY AGE 153 MAGAZINES & SMARTPHONES 154 DIGITAL AD PERFORMANCE 155 MAGAZINE ADS CAN INFLUENCE AN AUTO PURCHASE IMMEDIATELY 156 PRINT + ONLINE WORK TOGETHER: TETLEY TEA 157 MAGAZINES + ONLINE WORK TOGETHER: DOVE 158 OTHER USEFUL INFO 159 ABOUT MAGAZINES CANADA 160 FACT BOOKS 161 CATEGORY QUICK HITS 162 U.S. SPILL RESOURCES 163 FASTFACTS 164 MAGAZINE ECO KIT & CARBON FOOTPRINT COMPENDIUM 165 ADDIRECT AD PORTAL 166 GOT QUESTIONS? CONTACT US 3 3

4 DIGITAL MAGAZINE MEDIA OFFER EXTRA BENEFITS Digital magazine media offer extra benefits to readers: Availability - Digital issues keep on giving. Current and back issues may be accessed immediately online. Dynamic - Digital magazines can be accessed and read on smartphones, tablets and ereaders, when and where you want. Interactive Extras - Digital issues provide access to videos, extra pictures and deeper reporting for heightened impact. Apps deliver added functionality. Timeliness - When time matters, digital magazines deliver time-sensitive information to readers quickly Search Engine Friendly - Readers looking for specific information can arrive at a digital magazine page just as easily as they may a web site. 4

5 DIGITAL MAGAZINE MEDIA OFFER EXTRA BENEFITS Magazine brands are rapidly extending to surround their target audiences where ever they live, work and play. Although printed magazines remain the consumer s number one reading choice, publishers are actively experimenting with digital content delivery that spans most every platform and device that consumers use. 360 Marketing Surround Magazine content is available wherever there is connectivity, serving the mass and niche needs of readers. Consumers can feed their needs and passions at the click of a mouse, the press of a key or the tap of a finger. Trusted Content Trusted, curated content never goes out of style. Now it s easier than ever to access information that you know is consistently reliable. Engagement Magazines have always been about high engagement at a very personal level. Add extra content and interactive features that digital provides, and a good thing just got even better. Digital media are the perfect complement to the printed page. 5

6 DIGITAL PENETRATION Stats at a glance 6

7 CANADIAN ONLINE USAGE Canada s online population leads the world in key online usage metrics: Average monthly hours per visitor (41.3); average monthly pages visited per visitor (3,731); average number of monthly visits per visitor (101). Average Online Usage Monthly Q LOCATION AVG. MONTHLY UNIQUE VISITORS (000) AVG. MONTHLY HOURS/VISITOR AVG. MONTHLY PAGES/VISITOR AVG. MONTHLY VISITS/VISITOR World-Wide 1,519, , China 342, , United States 188, , Japan 73, , Russian Federation 60, , Germany 52, , Brazil 45, , France 43, , United Kingdom 39, , Italy 28, , Canada 25, , Canadian Ranking #10 #2 #1 #1 7 Source: comscore, Media Metrix, WW, Home & Work, Persons: 15+, Monthly Q4 Average 2012

8 CANADIAN INTERNET ACCESS TREND Canadians internet access is relatively flat overall (86%) as is home access (80%) in However, mobile access continues to increase year-over-year, reaching 37% in Internet Access in Canada (%) % 86% 85% 89% 83% 86% 72% 71% 74% 78% 77% 82% 79% 79% 80% 76% 56% 56% 5% 67% 67% 71% 62% 20%21% 13% 10% 7% 24% 32% 33% 35% 37% Internet Access (all locations) Home Internet Access Mobile Internet Access 8 Source: Ipsos Reid, The Ipsos Canadian interactive Reid Report, 2012 Fact Guide

9 TIME SPENT CONNECTED TO TECHNOLOGY IN CANADA In a typical 24-hour day, Canadians spend an average of 9.9 hours connected to technology, slightly more than the global average. Canadian connectivity is slightly younger and less affluent but more broadly based. In a Typical 24-Hour Day, How Many Hours are You Connected to Technology (Online, Mobile, etc.) LOCATION GLOBAL (HOURS) CANADA (HOURS) Male Female Age < Age Age Low HH Income Medium HH Income High HH Income Married Other Low Education Medium Education High Education TOTAL LOCATION Chief Income Earner - Yes Chief Income Earner - No GLOBAL (HOURS) CANADA (HOURS) Employed Unemployed Business Owner - Yes Business Owner - No Sr. Exec or Decision Maker - Yes Sr. Exec or Decision Maker - No TOTAL Source: Social Media Survey, January

10 TIME SPENT CONNECTED TO TECHNOLOGY BY PROVINCE Time spent connected to technology is highest in BC and the Prairies and lowest in Quebec. In a typical 24-hour day, how many hours are you connected to technology (online, mobile, etc.)? BC Alberta Prairies Ontario Quebec Atlantic 10 Source: Social Media Survey, January 2012

11 AFFLUENTS SPEND MORE TIME ONLINE The affluent still love print but they spend more time online with apps, games and social networks. Tablet, smartphone ownership Own a tablet 9% 26% Have a tablet in the household 14% 47% Own a smartphone 45% 55% Have a smartphone in the household 61% 73% Average hours online per week Total affluents ($100,000+HHI) Ultra-affluents ($250,000+HHI) Participated in the following digital activities in past 30 days on computer, smartphone or table Playing games 55% 60% Using apps 38% 53% Social Networking 48% 57% Affluents spend more time on social networks 12% 18% 63% Average hours spent per week on Facebook 4.7 Twitter 6.8 LinkedIn 1.4 Facebook Twitter LinkedIn Source:. The digital media habits of the affluent, 2012 Mendelsohn Affluent Survey, Ipsos MediaCT. 11

12 CANADIAN ONLINE USAGE DEMOGRAPHICS Online usage is most prevalent across younger demos (under age 55) and split 50/50 by gender. However, household income skews substantially to the $40,000-$75,000 and >$100,000 demos. Age Gender Household Income 40 < 18 22% % 34% % % % 17% % 50% 50% Source: comscore, Media Metrix, WW, Home & Work, Persons: 15+, Monthly Q4 Average 2012

13 CANADIANS ACCESS CONTENT ONLINE Tablets and smartphones are used most to access online content daily, more so than laptops or desktops. Access media content on (device) several times a day Tablet Users 58% Smartphone users 56% Laptop/desktop users 41% Source: Mobext/InMobi, Consumer Adoption of Connected Devices and Impact on Media Planning, 2012

14 CANADA IS THE FASTEST ADOPTER OF NEW MEDIA TECHNOLOGY Canada s adoption of new media technology 47.7% 30.5% 2012: Canada is the 6 th highest ranked market in the world for adopting new media and the highest-ranked market from outside Western Europe. 2015: Canada is forecasted to be the 5 th highest-ranked market in the world in 2015, and the highest ranked market outside Western Europe to remain at the forefront of the adoption of new media technology Source: Zenithoptimedia publishers new media forecasts, 2013;

15 SMARTPHONE & TABLET BRANDS USED BY CANADIANS Smartphone Tablet Apple iphone 32% Apple ipad 45% Samsung 23% Blackberry 23% Samsung 13% Blackberry 16% 15 Source: Close to Half of Canadians Now Own a Smartphone, Ipsos, 2013;.

16 TOP ONLINE AD FORMATS (US) Search and display/banner ad formats continue to dominate the online space Ad Format Share of Revenue in % 5% 6% 8% 4% 4% 5% 22% 47% Search Display/Banner Classifieds Digital Video Lead Generation Mobile Reach Media Sponsorship 16 Source: IAB Internet Advertising Revenue Report, 2011 Full Year Results, April 2012 Note: Amounts do not total 100% due to rounding

17 MOBILE APP VS. WEB USAGE GAP IS WIDENING The average time spent per day with mobile apps compared to time spent consuming the web is widening as more time is being spent with mobile apps: 94 minutes with apps vs. 72 minutes with the web in Dec Mobile App vs. Web Consumption (minutes per day) Web Browsing Mobile Apps 0 Jun 2010 Dec 2010 Jun 2011 Dec Source: comscore, Alexa, Flurry Analytics, 2012

18 FINANCIAL IMPACT OF DIGITAL VISITORS When visiting websites in 2011, computer and tablet visitors delivered higher conversion rates of 2.5% and 2.3%, respectively, significantly higher than smartphone visitors (0.6%). At the same time, average order value (AOV) was highest for tablet visitors ($123). Conversion Rate by Device Used to Visit a Web Site Average Order Value by Device Used to Visit a Web Site % 2.3% $80 $102 $ % Smartphone Computer Tablet 0 Smartphone Computer Tablet 18 Source: Adobe Digital Marketing Insights: The Impact of Tablet Visitors on Retail Websites, 2012

19 PENETRATION OF DIGITAL MAGAZINE ISSUES 9% of magazine readers reported the purchase of a digital magazine in the past year while 14% plan to do so in the coming year. 9% of magazine readers reported having bought an electronic edition of a magazine 14% plan to do buy an electronic edition of a magazine in the next year 19 Source: Periodical Marketers of Canada (PMC), April 2012

20 PRINT MAGAZINES EXTEND THEIR BRANDS THROUGH DIGITAL CONTENT While 9 in 10 respondents publish in print, they are also using websites, digital editions, social media and newsletters to extend their brands. Currently Publish Will Publish in Future Newsletters 84% Newsletters 7% Social Media 86% Social Media 8% Website 94% Websites 3% Mobile Application (native application) 52% Mobile Application (native application) 27% Digital Edition (browser-based) 89% Digital Edition (browser-based) 4% Print Edition 92% Print Edition 1% Source: 2012 Publisher Monetization Survey, Godengo+texterity, An Exploration of Digital Content, Monetization, and Revenue,

21 CANADIAN MOBILE DEVICE USAGE Smartphones are well on their way to majority penetration among adult internet users in Canada. Tablet usage is also quickly growing. Smartphone usage has grown exponentially in the past 2 years. Tablet penetration about double over the past year. Internet Users in Canada Who Use Select Mobile Devices, Jan 2011-Jan 2013 % of respondents JAN 2011 AUG 2011 JAN 2012 AUG 2012 JAN 2013 Smartphone 23% 30% 34% 40% 47% Tablet 3% 6% 10% 15% 21% Ereader 4% 7% 10% 12% 14% 21 Source: Ipsos Reid, Mobil-ology, Feb 21, 2013;

22 DIGITAL MAGAZINE MEDIA TOUCH POINTS & SERVICES More and more, consumer and B2B magazine brands are extending their footprints to include a wide array of digital and social media touch points and services. DIGITAL MEDIA TOUCH POINTS CONSUMER B2B Facebook page(s) 90% 82% Website 89% 89% Twitter posts 70% 73% Online video 54% 61% Interactive digital editions 49% 56% YouTube 49% 49% RSS feeds 44% 57% QR codes 44% 54% Apps for Apple iphone 37% 38% ipad/tablet edition 35% 35% Online shopping consumer products 35% 9% Apps for Apple ipad 34% 40% Apps for Google Android phones 24% 27% Digital newsstand app 23% 13% Smart tags 15% 19% Flickr 14% 10% Virtual events 8% 30% Apps for BlackBerry 8% 13% 22 Source: Monetizing the Digital Revolution, CDS Global, 2011 (North American)

23 DIGITAL MAGAZINE MEDIA EDITORIAL- FOCUSED INITIATIVES Magazine media publishers are broadening their range of editorial-focused product offerings to make content and related services more accessible to readers. EDITORIAL-FOCUSED DIGITAL INITIATIVES CONSUMER B2B Archived content - articles 79% 87% enewsletters 73% 80% Blogs 68% 68% Content s 59% 72% Photo galleries 55% 32% Contests 52% 32% Online polls/surveys 49% 53% RSS feeds 42% 54% Archived content - videos 39% 54% User-generated content 28% 26% Online community 25% 32% Coupons 18% 8% Podcasts 16% 33% Webcasts/webinars 11% 55% Rating systems for users/readers 11% 13% Chat rooms 9% 14% MP3s 8% 10% Online games 8% 2% 23 Source: Monetizing the Digital Revolution, CDS Global, 2011 (North American)

24 MAGAZINES LEAN TOWARDS NATIVE APPS Magazines with their rich, visual content are more likely to invest in native app development. Fifty-eight percent of magazine respondents said they would continue using native apps compared to 32 percent of newspapers and 30 percent of business publications. 58% Magazine Publishers Prefer to Stick with Native Apps 60% 49% 32% 30% 30% 29% 30% 35% Consumer Magazines Newspapers Business Publications 20% 5% 3% Sticking with native apps Moving to HTML5 Moving to another technology Not sure Source: Magazines are more likely to invest in native apps, Susan Kantor, 2013.

25 TABLETS & READERS Print presents what is perhaps the clearest set of synergies with tablets. Print publishers are migrating to the tablet platform because it allows them to recreate a magazine experience with the ability to flip from article to article in a format much better suited than the web to long-form reading. Ads in print publication apps, like their print parents, are full pages that are displayed between articles and are fully interactive with video, games, and links to social media and other web activities. 25 Source: IAB Tablet Buyer s Guide, October 2011

26 TABLET & ereader OWNERSHIP IN CANADA Ownership of a touch screen tablet or e-reader has more than doubled from 9% to 21%. Canadian Ownership of Tablets/eReaders 25% 20% 21% 15% % 9% 10% % 0% 4% 3% 3% 2% 1% 1% 1% 1% 1% 0% 0% Any ipad Kobo BB Playbook 2% 3% Kindle Samsung Sony Other 26 Source: PMB 2013 Spring (2-year data)

27 ereader PENETRATION IN CANADA Kobo penetration (46%) leads the pack with Kindle following at 24%. However, intent to purchase an ereader in the coming year suggests that Kindle may close the gap with 53% intent to Kobo s 42%. ereader Penetration (%) ereader Purchase Intent in Future (%) 12% 5% 18% 46% Kobo Kindle Sony Other 53% 42% Kobo Kindle Other 24% 27 Source: Ipsos Read Mobil-ology, January 2012

28 PROJECTED TABLET OPERATING SYSTEM BASE ios growth through to 2016 is anticipated although its share of market is projected to decline as Android (Google and other proprietary Android) outpaces ios growth and given expected traction of Windows Metro. 800 Global Tablet Installed Base by Operating System (Millions) Windows Metro Proprietary Android Google Android ios Source: Forrester forecast, 2012 Note: Other tablet operating systems exclude due to negligible installed base share

29 FREQUENCY OF MOBILE AD INTERACTION BY DEVICE A majority of tablet users (77%) interact with ads compared to 53% of smartphone users. 57% of tablet users interact with ads at least weekly compared to 33% of smartphone users. In the past 3 months, how often would you say you typically interact with, tap, view, get more info or respond to an advertisement you see on your (device)? Select one % 40 Tablets Smartphones 30 24% 23% 23% % 14% 10% 10% 10% 11% 11% 8% 0 Once a day or more frequently A few times/week Once a week Once or twice/mos Less than once/mos Never Source: ABI Research Survey, June

30 TABLET & SMARTPHONE USAGE LOCATIONS Perhaps ironically, smartphones are most widely used at home, as are tablets. However, smartphone usage out of home generally exceeds that of tablets. Where have you used your (device)? Select all that apply % 91% Tablets Smartphones % 63% 40% 60% 35% 56% 28% 51% 23% 22% 0 At home In other locations out of the home While in the car While out shopping At work in a location outside the home While on public transportation 30 Source: ABI Research Survey, June 2012

31 WHEN, WHERE & HOW READERS CHOOSE TO READ DIGITAL EDITIONS Where magazines are read most SUBSCRIBERS DIGITAL ONLY PRINT ONLY Print Editions NEW CROSS- PLATFORM LOYAL CROSS- PLATFORM At Home 29% 79% 75% 76% Outside of the home 20% 20% 19% 19% Digital Editions At Home 56% 15% 38% 38% Outside of the home 43% 17% 53% 52% Source: Conde Nast Digital Subscriber Study, June Magazine Media MPA Factbook 2013/2014.

32 US TABLET OWNERS, BY MODEL ipads remain the dominant tablet model in homes. APPLE ipad 53% ipad mini 13% Total Apple 59% ANDROID Amazon Kindle Fire 31% Samsung Galaxy 19% Barnes & Noble NOOK HD/HD+ 8% Google Nexus 8% Asus Transformer 4% Other 10% Total Android 59% OTHER US Tablet Owners, by Model, 2013 % of total Microsoft Surface 5% Other 5% Total Other 10% Source: With More Models on the Market How Are Tablets Stacking Up?, emarketer, 2013.

33 AD RECEPTIVITY BY LOCATION AND DEVICE Ad receptivity is greatest during at home leisure time and while travelling via public transportation, those moments when device users are most relaxed and therefore receptive to advertising. How likely are you to tap, interact with, view, get more information or respond to an advertisement you see on your (device) in the following situations? RANKING BY LOCATION/DEVICE (1 TO 8) SMARTPHONE TABLET Most receptive: captive & relaxed Least receptive: distracted & stressed At home leisure time 1 1 On public transport 2 2 At home doing chores 3 4 While out shopping 4 3 Working at home 5 8 At work outside home 6 7 Other locations outside home 7 5 In car Source: ABI Research Survey, June 2012

34 READERS WANT PRINT-LIKE EXPERIENCE ON TABLET The ipad and other e-reader devices introduce the potential for quite a different reading experience one that closely resembles print, they offer an opportunity to replicate the lean-back experience of the print magazine. Percent of tablet news users with apps who prefer 43% read magazines on their tablet 40% 41% 60% 57% Interactive components with audio, video or other graphical features A traditional printlike experience Readers enjoy long-form, high engagement content on tablets More than 6 out of 10 ipad owners spend more than an hour a day on their ipad Under and Over 34 Source: emedia Vitals Publisher s Playbook: ipad Publishing Strategies; Tablet users even younger ones still prefer a print-like experience, Pew Project and The Economist Group, 2012; Readers Prefer Print like Newsreading Experience on Tablets, Mashable, 2012; comscore TabLens, 2012.

35 MAGAZINE READING HABITS ARE SIMILAR WHETHER DIGITAL OR PRINT Consumers enjoy relaxing with their magazines. 73% of tablet owners use the device while in bed and 96% use it on the sofa, mirroring the consumption habits familiar to printed magazines. 35 Source: Mobile News is Still Consumed at Home and at Habitual Times, October 1, 2012, Pew Research;.

36 CONSUMERS WANT BOTH PRINT AND DIGITAL Preferred device for getting U.S. news Consumers want their tablet editions to resemble print DEVICE % OF RESPONDENTS PREFERRING Desktop/laptop 19% Print publications 18% Tablet 5% Smartphone 4% All the same 8% Don t like ads on any 6% 60% under the age of 40 prefer a traditional, print-like news reading experience on tablets, free of interactive components like audio and video On the flip side Approximately 4 in 10 expressed a preference for interactive news-reading experiences 57% like the magazine s digital version to be just like the printed magazine 36 Source: Readers Prefer Print Like Newsreading Experience on Tablets, Mashable, 2012; Almost Two Thirds of Mobile Device Owners Are Reading Digital News, Pew Research, 2012.

37 TABLET USAGE IS FOCUSED AT HOME Tablet usage is predominantly rooted in the home, particularly weeknights, with the living room being the epicentre. Tablet usage in the home by location (%) % 75 65% 50 47% 25 0 Living room Bedroom Kitchen 37 Source: Gartner Inc., July 2012

38 MOBILE & TABLET OWNERS ACCESS MAGAZINE CONTENT AT HOME Consumers who access digital magazine content on their smartphone at home Downloaded 3+ apps Total respondents 86% 91% Where mobile news users tend to get news during the week Tablet Smartphone At home 85% 58% At work 11% 29% Commuting or in transit 3% 9% Somewhere else 1% 2% No answer - 2% Even more, 92%, tend to get news at home during the weekend. 38 Source: emedia Vitals Publisher s Playbook: ipad Publishing Strategies; Tablet users even younger ones still prefer a print-like experience, Pew Project and The Economist Group, 2012; Mobile News is Still Consumed at Home and at Habitual Times, October 1, 2012, Pew Research.

39 TABLET OWNERS ARE YOUNGER & MORE TECHNOLOGICALLY SAVVY Canadian tablet owners tend to be younger (12-49) and are more in tune with technology products, and mobile ownership among s is 66% higher than average. They are among the first to buy new electronics, are excited by them and are drawn towards technologically advanced products. Canadian Mobile Ownership by Age (Mobile defined as owner of smartphone or ipad) Canadian Tablet Ownership by Technological Affinity to to to to to First to own Excited by new new electronics technologies Like to buy products with latest technology 39 Source: PMB 2013 Spring (2-year data), PMB 2012 Spring (1-year data)

40 OLDER DEMOS ARE ABLE TO READ EASIER ON TABLETS Older readers have an easier time reading text on tablet computers than print on paper. These results are attributed to the bright, backlit screens, which enhance contrast and make it easier to distinguish text. When reading on a tablet, older readers. 3-4x Finished each page 3 to 4 times faster Used a lower level of brain activity required When reading on an ipad, older readers +42 wpm Gained at least 42 words per minute (WPM) in their average reading speed 40 Source: Tablets Provide Better Print Reader For Older Demos, MediaPost, 2013.

41 MOBILE OWNERSHIP BY INCOME & EDUCATION Mobile owners in Canada tend to be more highly educated with higher household income. Index of Tablet Owner Education vs. Population Index of Mobile Ownership vs. National Bachelor/Post-grad Some University Trade School High school No certificate Source: PMB 2012 Spring (1-year data), PMB 2013 Spring

42 SIMULTANEOUS USAGE OF TABLETS & SMARTPHONES 56% of device users claim to use their smartphone and tablet devices at the same time. Do you ever use the two devices simultaneously? 44% 56% Use devices simultaneously No use simultaneously 42 Source: ABI Research Survey, June 2012

43 TABLET OWNERS READ MAGAZINES Tablet users who read magazines via tablet IPAD ANDROID TABLET KINDLE FIRE NOOK TABLET TOTAL Almost every day 9.4% 10.4% 11.3% 9.4% 9.7% At least once a week 13.8% 12.7% 16% 15% 13.3% Once to three times throughout the month 17.1% 15.5% 16.6% 15% 16.7% Ever in month 40.3% 38.5% 43.9% 39.4% 39.6% GENDER % of audience Male 54.6% Female 45.4% AGE Demographic profile of tablet users who read magazines via tablet % % % % % % % HOUSEHOLD INCOME <$25K 7.8% $25K-<$50K 17.5% $50K-<$75K 19.4% $75K-<$100K 16.6% $100K+ 38.7% 43 Source: Device type demographics affect readership levels, emarketer, 2012.

44 MAGAZINE READING BY MOBILE OWNERS Canadians in the heavy mobile quintile also read magazines. Mobile owners read more on average than everyone else, dispelling the myth that print is dead. When last read a magazine Magazine issues read per month 84% 82% 82% % 77% 75% 3.5 Past Month Past 2 Months Past 3 Months All 12+ Mobile Owners Mobile Owners All Source: PMB 2013 Spring

45 PREFERRED TABLET ACTIVITIES Reading magazines, books and newspapers tops the list of preferred activities on tablet devices. SELECT ACTIVITIES ACCORDING TO TABLET USERS Read magazines, newspapers or ebooks 38% Read/check 33% Browse for/purchase new & interesting apps 32% Visit a social networking site 29% Play games 29% 45 Source: Rosetta, Consumers and Their Evolving Relationships with Tablets, February 2012

46 REGULAR WEEKLY TABLET ACTIVITIES 94% of tablet users regularly access content/information weekly followed by internet access (67%). Access has increased over the past year. Regular Weekly Tablet Activities (% of tablet users) Access content/info Access the internet Check Play games Use a social network Listen to music Read books Make purchases 87% 94% 63% 67% 64% 66% 58% 61% % 53% % 51% 42% 42% 31% 31% Source: OPA, A Portrait of Today s Tablet User Wave 2, June 2012

47 FREQUENCY OF TABLET USAGE & CONTENT ACCESS 60% of respondents claim to use their tablet and access content several times a day. 74% claim usage at least once a day. Frequency of Tablet Usage & Content Access (% of tablet users) % 60% 50 Any type of tablet use 40 Using tablets to access content % 13% 17% 15% 10 0 Several times a day Once a day Several times a week 3% 5% 3% Once a week Once a month or more 3% 1% 2% 2% 2% Less than once a month Never 47 Source: OPA, A Portrait of Today s Tablet User Wave 2, June 2012

48 TABLET USAGE BY TIME OF DAY 5pm to 11pm is the most active usage period of the day for tablet users, averaging above 50%. On average, one-third of tablet users use their devices during the work day (8am-5pm). Tablet Usage by Time of Day (% of tablet users) 2-5am 5% 5-8am 18% 8-11am 11am-2pm 33% 34% 2-5pm 42% 5-8pm 59% 8-11pm 53% 11pm-2am 22% Source: OPA, A Portrait of Today s Tablet User Wave 2, June 2012

49 PRODUCT CATEGORIES SEARCHED ON TABLETS Tablet users search broadly across a wide array of product categories. Electronics (37%), restaurants (36%), media/entertainment (35%) and retail (35%) top the list. Products Researched on Tablet in Past Six Months (% of tablet users) Consumer Electronics Restaurants & Fast Food Media & Entertainment Retail & Apparel Food & Beverage Sports/Recreation Hobbies Travel Service Personal Care & Beauty Automotive Health/Healthcare/Pharma Financial Services Telecom Services Home Furnishings 37% 36% 35% 35% 30% 30% 30% 28% 25% 24% 23% 22% 21% Source: OPA, A Portrait of Today s Tablet User Wave 2, June 2012

50 PRODUCT CATEGORIES PURCHASED ON TABLETS Tablet users purchase a wide array of products using tablets. Media/entertainment (22%) account for the highest level of purchase followed by retail (21%), consumer electronics (19%), personal care & beauty (17%) and restaurants (16%). Products Purchased from Tablet in Past Six Months (% of tablet users) Media & Entertainment Retail & Apparel Consumer Electronics Personal Care & Beauty Restaurants & Fast Food Food & Beverage Travel Service Sports/Recreation Hobbies Financial Services Home Furnishings Health/Healthcare/Pharma Telecom Services Automotive 22% 21% 19% 17% 16% 15% 13% 11% 10% 10% 9% 9% 7% Source: OPA, A Portrait of Today s Tablet User Wave 2, June 2012

51 ONLINE SHOPPER ATTITUDES TOWARDS TABLET USAGE Online shoppers who own a tablet use their device to research products and services. Attitudes Towards Researching Products via Tablets* (%) Tablet is an ideal tool to research products before making final purchases Use tablet to research products prior to a store visit Tablet is an ideal tool for browsing digital catalogues from favourite retailers/brands Use tablet device to research products then purchase online via computer The ability to see the product better on my tablet makes me want to shop more via this device Tablet is an ideal toolfor purchasing from favourite retailers/brands Ability to use tablet to interact more with the product (zoom, rotate, touch for additional info) means I purchase more product Portability of tablet means I purchase nore product via this device Tablet is a device where I download shopping apps from my favourite retailers 43% 42% 40% 36% 36% 34% 48% 50% 50% Use tablet to research products during a store visit Only shop via tablet when I am away from home 29% 29% Source: Local Corporation and the e-tailing group, April 2012 * Base: Online shoppers who own tablets and who chose strongly agree or somewhat agree

52 TABLET OWNERS LEARN ABOUT APPS VIA PRINT App reviews and ads in magazines are among the most popular ways that tablet owners find out about apps. Browsed through/searched in App store/featured in App store 80% Reviews in magazines & newspapers 55% Link within another app Advertisements on the Internet Friends & family recommendations Advertisements on TV Advertisements in magazines Advertisements in newspapers Advertisements on radio 24% 23% 21% 16% 12% 8% 7% Source: Gfk MRI ipanel, September 2011

53 TABLET OWNERS ARE MAGAZINE MEDIA READERS Tablet owners who read magazines Almost every day 10% At least once a week 13% 1-3 times a month 17% Once a month 40% Source: comscore Tablets, 3 month average ending August Magazine Media MPA Factbook 2013/2014.

54 CONTENT PURCHASED FOR TABLETS: MAGAZINES LEAD Tablet users are more likely to buy digital magazines (39%) on their devices over e-books, digital newspapers, movies or TV shows. Content Purchased for Tablet (%) of tablet users Any kind of content 61% Magazine Digital book 35% 39% Digital newspaper subscription 15% Full length movie 26% Full length TV show 18% Source: Yahoo! & Ipsos, Mobile Modes: How to Connect with Mobile Consumers, August 2011 Note: Ages 13-54

55 TABLETS MAKE GREAT SHOPPING PARTNERS Tablets enable shopping primarily because of their convenience and users desires for inspiration to help make a purchase. Tablet owners tend to be more spontaneous in their shopping habits, even self-described addicts to shopping, than those who don t own tablets % Convenience of shopping 29% Browse sites hoping to be inspired to make a purchase Like the ease of making a transaction Shopped with a specific product offer in mind Shopped because of an ad for a product 13% 11% 14% 24% % 9% 3% Own a tablet Don't own a tablet Ease of sharing products/deals via social networks 9% Spontaneous shoppers Addicted to shopping 55 Source: Zmags, Equation Research, November 2011

56 AD RECEPTIVITY ON TABLETS BY AD TYPE Tablet users are most receptive to ads for something they are shopping for, coupons, ads for favourite brands and ads that are fun. What kinds of ads are you most likely to respond to on your tablet? (Ranked 1 to 13 with 1 representing most responses by ad type) ALL IOS ANDROID WINDOWS Ads related to something you are shopping for Ads for coupons relating to something you are shopping for Ads relating to your favourite brands Ads that you think are fun Ads related to sites you ve visited online or an app you use Ads related to your daily routine Ads located to your location Ads related to recent online purchases Ads related to recent TV/radio viewing Ads based on info you give the ad at the beginning Ads related to your age/gender, if you have kids or other demo info Ads based on info that you have shared via Facebook, Twitter, etc Some other type of ad Source: ABI Research Survey, June 2012

57 CLICK-THROUGH-RATE BY DEVICE & SCREEN SIZE Device screen size doesn t necessarily predict click-through-rate (CTR) performance. The Kindle Fire ereader has the highest CTR followed by the ipad tablet and the iphone smartphone. B&N s Nook takes last spot of devices measured. This suggest that features and functionality may be a greater predictor of CTR. Click-Through-Rate by Mobile Device & Screen Size (%) DEVICE SCREEN SIZE (INCHES) CLICK-THROUGH-RATE % Kindle Fire % Apple ipad % Apple iphone % Samsung Note % Samsung Galaxy S % Samsung Galaxy Tablet % Xperia Mini % Barnes & Noble Nook % 57 Source: Jumptap MobileSTAT, June 2012

58 SMARTPHONES Smartphones, typically always within reach of users, help users stay in touch with what matters, wherever and whenever. They double as an entertainment hub providing access to favourite magazine apps and other preferred content. Magazine apps facilitate access to social media, targeted internet browsing, shopping and, of course, companion reading activity. Your favourite magazines easily go where you go. 58

59 SMARTPHONE OWNERSHIP IN CANADA Mobile phone ownership in Canada continues to increase with smartphones, approaching half the market. Canadian Ownership of Smartphones & Cellphones PMB 2012 SPRING PMB 2013 SPRING DIFF % % Cellphone Smartphone Total Source: PMB 2013 Spring (1-year data)

60 SMARTPHONES DOMINATE CANADIAN PHONE OWNERSHIP Total mobile subscribers rose by 10 percentage points in the country, while smartphone subscriptions rose by 17 percentage points. The highest concentration of mobile phones was in the Ontario region, accounting for 41% of the market. Mobile Phone Users in Canada, by Device Type, Dec 2011 & Dec % 45% Smartphone Feature Phone 38% 62% Smartphone Feature Phone Dec 2011 Dec Source: Smartphones Take the Lead in Canada, emarketer, Mar 26, 2013.

61 CANADIANS ACCESS INTERNET VIA THEIR MOBILE DEVICE Those in the heaviest quintile use their mobile device for 16 hours of Internet access per week. Canadian Mobile Device Usage by Quintile (Hours) Light Med-Light Medium Med-Heavy Heavy 61 Source: PMB Spring 2013

62 SMARTPHONE PENETRATION IN CANADA Smartphone penetration has reached 54% of the Canadian mobile market. The Prairies, Ontario and British Columbia have the highest penetration while Quebec has the lowest. Smartphone Penetration as a Percent of the Canadian Mobile Market % 54% 58% 56% 46% 53% National BC Prairies Ontario Quebec Atlantic 62 Source: comscore, Inc., MobiLens, CA, Persons: 13+, June 2012

63 SMARTPHONE ADOPTION BY COUNTRY Smartphone Penetration by Country Spain UK Canada 62% 66% 64% France Italy Germany 53% 53% 51% Japan 30% 63 Source: Mobile Future in Focus 2013, February 2013, ComScore.

64 SMARTPHONE PLATFORM MARKET SHARE 100% 90% 80% 70% 60% 50% 40% 30% 20% Other Smartphone HP Blackberry Symbian Windows ios Android 10% 0% Japan Spain Germany France UK Canada Italy 64 Source: Mobile Future in Focus 2013, February 2013, ComScore.

65 U.S. SMARTPHONE SUBSCRIBER MARKET SHARE BY OEM 14% 8% 7% 9% 39% Apple Samsung HTC Motorola LG Other 23% Source: comscore Mobilens, 3 month average ending May 2013; Magazine Media MPA Factbook 2013/2014.

66 SMARTPHONE OWNERSHIP BY AGE & INCOME Smartphone owners in Canada skew age 18 to 49 with a predominance of 18 to 34 versus cellphone owners who skew versus the general population. Smartphone owners tend to have higher household income. Cellphone and Smartphone Owner Age vs. Population (Index) Index of Smartphone Owner Hhld Income vs. Population <$25K $25K-$35K $35K-$50K $50K-$75K $75K-$100K $100K Cellphone Owners Tablet Owners 66 Source: PMB 2012 Spring (1-year data)

67 MOBILE DEVICES: DEMOGRAPHICS BY BRAND Device users, on the whole, are higher educated and higher income earners. Thus is particularly true for Apple & BlackBerry device owners whereas Android-powered devices (smartphones and tablets) are less educated and affluent. Household Income Level (%) Education Level (%) ipad 39.1% 60.9% ipad 51.3% 48.7% Android Large Media Tablet BlackBerry iphone 61.5% 41.3% 38.5% 38.5% 58.7% 61.5% <$75,000/Year >$75,000/Year Android Large Media Tablet BlackBerry iphone 36.0% 36.1% 43.7% 64.0% 63.9% 56.3% No University Degree 4-Year & Advanced Degree Android Smartphone 63.9% 36.1% Android Smartphone 32.8% 67.2% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 67 Source: Donald W. Reynolds Journalism Institute, Missouri School of Journalism, University of Missouri, 2012

68 AD ENGAGEMENT AND ACTIONS TAKEN: TABLETS & SMARTPHONES Tablet users tend to engage more often in advertising on their devices and take greater action after seeing those ads than smartphone users. % of (device) users that engage in an ad more than once a week % of device users who took action after engaging with an ad Smartphones 25% Smartphones 80% Tablets 47% Tablets 89% Source: IAB Mobile Marketing Centre of Excellence, Mobile s Role in the Consumer s Media Day, 2012

69 SMARTPHONE ACTIVITIES OF CANADIANS Mobile Activities of Smartphone Users in Canada DEC 2011 DEC 2012 Weather 59% 60% Search 48% 57% Bank accounts 29% 33% Entertainment news 29% 30% Movie information 26% 28% General reference 25% 28% Food recipes/cooking tips 20% 21% Credit cards 16% 19% Electronic payments 15% 16% Online retail 11% 15% Source: Smartphones in the hands of majority of consumers in Canada while feature phones lag, emarketer, 2013

70 WHAT SMARTPHONE MAGAZINE READERS WANT Total respondents / Downloaded 3+ apps 77% 79% Pictures and photo galleries enhance my experience 65% 68% I want to be able to archive an article or entire issue 66% 68% Having the ability to forward an article or issue to someone else would be a plus 60% 64% I prefer short videos (less than one minute) rather than longer videos 50% 56% I would like to see more smartphone newsstands that offer a variety of different downloadable magazines 42% 50% I would like to see more videos in the magazines on my smartphone 37% 39% I prefer to pay just for the magazine content that I choose to access vs. an all access plan 36% 44% I would like more music content in the magazines on my smartphone 70 Source: Magazine Media Readers and Smartphones, MPA, 2012.

71 MILLENIALS READ MAGAZINES ON SMARTPHONES Among adults ages 18-34: % 83% have accessed or downloaded a magazine branded app via a digital newsstand Have downloaded an average of 2.6 magazine apps More than 35% use a newsreader to view magazine digital content 43% read content on their smartphones at work 86% have accessed digital magazine content on their smartphone from home 31% read content on their smartphones on their commute 71 Source: Millenials Read Mags on Smartphones, Mediapost, 2012

72 MILLENIALS & MAGAZINE ADVERTISING ON SMARTPHONES Among adults ages 18-34: 66% read or tap on advertisements appearing in digital magazines on smartphones 3 out of 10 respondents said they would like to be able to buy products and services directly from articles and features on smartphones 65% have snapped QR codes, Microsoft Tags or other links in response to ads The first week of October 2012, 13 of the 15 highest-grossing ipad lifestyle apps were from magazines 72 Source: Millenials Read Mags on Smartphones, Mediapost, 2012;

73 MAGAZINE READING ON SMARTPHONES The incidence of magazine reading among smartphone owners closely mirrors that of the general population although the volume of reading is above average, 4.2 titles per month vs. 3.7, a 14% increase. Readership of PMB Titles (%) Number of PMB Titles Read per Month % 79% 80% 83% 83% 85% In past month In past 2 months In past 3 months 0 All readers 12+ Tablet owners All Readers12+ Smartphone Owners 73 Source: PMB 2012 Spring (1-year data)

74 MOMS TRUST MAGAZINES Moms are the most powerful consumer group in Canada, with 90% of them either leading or co-leading all purchase decisions. The vast majority of moms, 91%, make regular use of social media. Smartphone Owners in Canada Weekly Social Networking Visits For Moms 50% Moms 40% General Population Facebook 81% YouTube 46% Google+ 32% Pinterest 23% Twitter 14% LinkedIn 11% Google Video 10% MySpace 9% Instagram 6% Moms are now more likely than the average Canadian to own a smartphone. Moms are early adopters of devices. Moms who are also heavy social networks are more likely to shop online for clothing, portable devices, baby supplies and home and garden products. 39% of moms think magazine ads help them with awareness of brands 74 Source: Canadian Digital Mom 2012 Report, Mom Central Consulting, 2012; Moms Utilize Social Media, Online Spending, Online Media Daily, 2013.

75 AD RECEPTIVITY ON SMARTPHONES BY AD TYPE Smartphone users are most receptive to coupons, ads for something they are shopping for, ads for favourite brands and ads that are location relevant. What kinds of ads are you most likely to respond to on your smartphone? (Ranked 1 to 13 with 1 representing most responses by ad type) ALL IOS BLACKBERRY ANDROID WINDOWS Ads for coupons related to something you are shopping for Ads relating to something you are shopping for Ads relating to your favourite brands Ads located to your location Ads related to sites you ve visited online or an app you use Ads that you think are fun Ads related to your daily routine Ads related to recent online purchases Ads based on info you give the ad at the beginning Ads related to recent TV/radio viewing Ads related to your age/gender, if you have kids or other demo info Ads based on info that you have shared via Facebook, Twitter, etc Some other type of ad Source: ABI Research Survey, June 2012

76 2D CODES POINT TO E-COMMERCE OR BRAND SITES A majority (78%) of Canadian shoppers are aware of QR Codes and other similar technologies. 41% of the 2D codes lead readers to content with a sales focus, such as brand homepages or commerce-oriented websites that enabled visitors to buy a product or service. An additional 25% of all landing pages featured video content in some form. 23% of the ads led to sites with a branding and engagement focus. QR Code Awareness 2D Code Destinations in % 78% Aware of QR Codes Unaware of QR Codes 23% 11% 41% Brand homepage/ecommerce Video Branding & engagement Other 25% Source: BrandSpark, Canadian Shopper Study, 2012 Source: Competitrack, What s Black & White & Read All Over,

77 2D CODE USAGE ON THE RISE IN PRINT Retail and technology ads are more likely to contain a 2D code, predominately a QR Code or Microsoft Tag. % of All Print Ads Containing a 2D Code in 2011 Retail 21.9% Technology 13.6% Financial services 6.7% Cosmetics & personal care 6.3% Food & beverage 5% Apparel 4% Automotive 3.8% Publishing & communications 3.4% Telecom 3.4% Health care services 3% % of 2D Codes by Code Type in % 10.8% 0.4% 0.4% 0.3% 0.1% 77 Source: Competitrack, What s Black & White & Read All Over, 2011

78 CONSUMERS ARE MORE LIKELY TO SCAN QR CODES FROM MAGAZINES Consumers are most likely to scan a QR code from a printed magazine. Young adults in the US who have scanned a QR code 39% 36% 35% 38% 36% 32% 31% % 21% 17% 16% 14% 12% 9% Magazine Poster Mail Packaging Website TV Source: Consumers most familiar with QR codes on magazines printed materials, emarketer,

79 SOCIAL NETWORKING Social media platforms help to connect readers with relevant magazine content on Facebook, follow the magazine, its readers, its writers and editors on Twitter, follow a magazine or re-pin favourite content on Pinterest and view magazine content videos on YouTube. 79

80 GENDER DEMOGRAPHICS FOR PINTEREST, INSTAGRAM AND TWITTER Internet Users by Gender 25% 17% 15% 16% Male 10% Female 5% Twitter Instagram Pinterest 80 Source: Twitter Pinterest and Instagram are popular with differing demographics, emarketer, 2013.

81 AGE DEMOGRAPHICS FOR PINTEREST, INSTAGRAM AND TWITTER Internet Users by Age 27% 28% Twitter Instagram Pinterest 19% 19% 16% 14% 10% 12% 3% 2% 2% 4% Source: Twitter Pinterest and Instagram are popular with differing demographics, emarketer, 2013.

82 SOCIAL NETWORK USER PENETRATION Canada and the U.S. rank highest globally in social media usage with nearly 50% of the population using social media, more than twice that of the global average. Social Network User Penetration for Select Countries & Regions, 2012 % of Population Worldwide US Canada Eastern Europe Western Europe Latin America Asia-Pacific Middle East & Africa 11.2% 15.8% 20.4% 32% 37.0% 35.1% 49.9% 49.3% Source: emarketer, February 2012 Note: Internet users who use a social network site via any device at least once per month.

83 INSTAGRAM USERS BY DEMOGRAPHIC Instagram resonates more with millennial consumers than other age groups. Gender Female 16% Male 10% Age % % % 65+ 2% Total 13% Source: Engagement is heavily concentrated among certain brands, emarketer, 2013.

84 SOCIAL NETWORKING AGE DEMOGRAPHICS The demographic leads the way in social networking usage, driven by 18 to 24 year olds, in average hours spend and average number of pages visited. Average Hours per Visitor by Age on Social Networking Sites Average Pages per Visitor by Age on Social Networking Sites < <18 1, , , Source: comscore, Media Metrix, Home & Work, Persons: 15+, 3 Mo. Avg. Q4 2011, 84

85 SOCIAL NETWORKING GENDER DEMOGRAPHICS Females spend the most time and visit more pages than men by 35% and 29%, respectively. Average Hours per Visitor by Gender on Social Networking Sites Average Pages per Visitor by Gender on Social Networking Sites Females 8.8 Females 999 Males 6.5 Males ,000 1, Source: comscore, Media Metrix, Home & Work, Persons: 15+, 3 Mo. Avg. Q4 2011,

86 BRAND PRESENCE ACROSS SOCIAL MEDIA PLATFORMS Percent of the Top 100 Brands Worldwide that Have a Profile on Select Social Networks, Nov 2012 & Feb 2013 Facebook Twitter 98% 99% 98% 97% Google+ Pinterest Instagram 67% 70% 63% 69% 54% 59% Nov-12 Feb Source: Engagement is heavily concentrated among certain brands, emarketer, 2013.

87 MAGAZINE READERS ARE HIGHLY SOCIAL Individuals who describe themselves as avid magazine readers are overdeveloped, vs. the general population, in their use of social media brands. 100 Which, if any, of the following forms of social media are you currently using? 91% 90% % 61% 46% 40% 39% 33% Total Respondents Avid Magazine Readers 28% 24% 24% 26% 15% 15% 12% 12% 9% 9% 3% 4% 0 87 Source: Adobe Digital Marketing Insights: The Impact of Tablet Visitors on Retail Websites, 2012

88 MAGAZINE MEDIA READERS ARE MORE SOCIAL SAVVY THAN THE POPULATION Avid magazine readers are more social media savvy than the general population. AVID MAGAZINE READERS ARE MORE ENGAGED WITH SOCIAL MEDIA TOTAL RESPONDENTS AVID MAGAZINE READERS I like to share information about my daily activities with my family and friends 47% 66% The experience of interacting with media is generally enhanced when shared with others Magazines for me are one of the most highly credible sources of information for the area that I am personally interested in I trust the opinion of a magazine editor SHOPPING ACTIVITIES (FREQUENTLY/SOMETIMES) Download coupons from a company s Facebook page Enter contests on Facebook or Twitter to win products or receive discounts Redeem an offer from a check-in service such as Foursquare Redeem an offer from a company s Twitter feed or Facebook page Seek the opinion of your Facebook friends before buying a product Tell your friends on Facebook or Twitter about a special sale that you heard about AGREEMENT WITH SOCIAL MEDIA INVOLVEMENT STATEMENTS I love to share articles or products that I see in magazines immediately with others I like to use social media to talk about what I am reading in magazines It is important to me to be able to engage with a magazine brand on social media platforms Source: Magazines and Social Media, GfK MRI/MPA, The Marketing Democracy, Magazine Media MPA Factbook 2013/2014.

89 SOCIAL MEDIA ACTIVITY BY SEGMENT Individuals who define themselves as avid magazine readers respond more positively overall to statements about media. Agreement with the following statements about media, by segment AGREEMENT: TOP TWO BOX I believe technology has improved the experience of accessing various media The more media I can access to learn about a story or topic, the better informed I become TOTAL RESPONDENTS AVID MAGAZINE READERS 3+ SOCIAL MEDIA USERS* 68% 81% 71% 62% 79% 65% I consider myself a media multi-tasker 50% 71% 60% I like creating my own media schedule and use technology to customize what I read/watch on my terms 50% 69% 56% I like to share info about my daily activities with family/friends 47% 66% 53% The experience of interacting with media is generally enhanced when shared with others 48% 67% 56% I am an avid magazine reader 38% 100% 43% Magazines to me are one of the most highly credible sources of info for areas that I am personally interested in 33% 62% 37% When I read a magazine, I tune out all other media 33% 51% 36% I trust the opinion of a magazine editor 30% 54% 36% 89 Source: MPA, Magazine Readers are Social, 2012 * Use 3 or more social media network brands

90 SOCIAL MEDIA SHOPPING ACTIVITIES BY SEGMENT Avid magazine readers use social media for shopping activities and like to get something for their social involvement, responding well to contests, discounts and special offers. Agreement with the following shopping activities engaged in AGREEMENT: TOP TWO BOX Enter contests on Facebook or Twitter in order to win products or receive discount TOTAL RESPONDENTS AVID MAGAZINE READERS 3+ SOCIAL MEDIA USERS* 59% 66% 69% Download coupons from a company s Facebook page 53% 63% 61% Tell your friends on Facebook or Twitter about a special sale that you d heard about 53% 62% 66% Redeem an offer from a company s Twitter feed or Facebook page 51% 61% 61% Seek the opinion of your Facebook friends before buying a product 50% 62% 61% Share a Groupon or similar daily deal with your friends on Facebook 44% 56% 53% Complain about a product/service to your friends on Facebook or Twitter Check a company s Twitter feed for complaints before buying a product or service 44% 53% 54% 34% 47% 43% Redeem an offer from a check in service such as FourSquare 29% 41% 39% Tweet a complaint to a company s Twitter feed or Facebook page 29% 39% 37% 90 Source: MPA, Magazine Readers are Social, 2012 * Use 3 or more social media network brands

91 SOCIAL MEDIA ACTIVITIES Avid magazine readers use social media while reading magazines and watching television. Agreement with the following statements regarding social media involvement AGREEMENT: TOP TWO BOX TOTAL RESPONDENTS AVID MAGAZINE READERS I often use other media while watching TV 55% 66% 60% I use the internet and any other resource to engage with brands that are really interesting or important to me 3+ SOCIAL MEDIA USERS* 52% 65% 59% I use social media to enhance my experiences with other media 39% 55% 49% I love to share articles or products that I see in magazines immediately with others 35% 54% 42% I like to use social media to talk about what I am watching on TV 34% 47% 43% I interact with my favorite media brands across multiple social media platforms 34% 53% 45% I often use other media while using magazines 36% 50% 43% I don t like to be distracted by other media while I am reading a magazine 32% 42% 32% I don t like to be distracted by other media while I am watching TV 30% 39% 29% Chatting with friends via social media while watching TV is almost as good as having them here 30% 46% 38% I like to use social media to talk about what I am reading in magazines 29% 47% 39% It is important to me to be able to engage with a magazine brand on social media 27% 46% 36% 91 Source: MPA, Magazine Readers are Social, 2012 * Use 3 or more social media network brands

92 MOMS TRUST IN SOCIAL & TRADITIONAL MEDIA Trust of advertising in social is increasing among moms. While trust in most traditional advertising, newspaper and TV, are significantly diminishing, magazines remain resilient. Trusted Social and Traditional Media Sources According to Mom Internet Users in Canada, 2011 & 2012 % of respondents Brand advertising on social networks like Facebook Brand pages/feeds on social networks like Facebook Radio commercials 48% 48% 52% Friend's comments/updates on social networks like Facebook 63% Magazine ads TV Commercials Newspaper ads 52% 53% 53% Source: Moms in Canada Rely on Digital Media, emarketer, 2013.

93 SOCIAL MEDIA ACTIVITY INVOLVING MAGAZINES Avid magazine readers and 3+ social media users consistently over-index on social media with magazines. How often do you engage in the following social media activities before, during or soon after reading printed or digital versions of magazines? Agreement: Top Two Box Total Respondents Avid Magazine Readers 3+ Social Media Users* Follow a magazine on Twitter 56% 69% 58% Follow a magazine on Pinterest or re-pin content from a magazine 56% 65% 58% Like a magazine on Facebook 52% 67% 61% Re-tweet an article from a magazine s Twitter feed 51% 66% 53% Use hashtags created by a magazine/magazine editor or create your own, to refer to an article 49% 67% 51% Follow a magazine editor or columnist on Twitter 49% 65% 50% Post a magazine article to Facebook 47% 62% 58% Post other magazine content to Facebook 45% 59% 54% Chat with friends on Facebook while reading a magazine and share what you are reading Become a subscriber of a magazine editor or columnist on Facebook 42% 57% 50% 40% 55% 47% Upload content (such as recipes) to a magazine s Facebook page 33% 46% 40% Post photos to a magazine s Facebook page 32% 44% 39% 93 Source: MPA, Magazine Readers are Social, 2012 * Use 3 or more social media network brands

94 REASONS FOR VISITING A MAGAZINE S FACEBOOK PAGE Relevant content is the primary reason for visiting a magazine s Facebook page. Only 15% of total respondents cited reasons for not visiting a magazine s Facebook page. For which of the following reasons have you visited or would visit a magazine s Facebook page? AGREEMENT: TOP TWO BOX TOTAL RESPONDENTS AVID MAGAZINE READERS 3+ SOCIAL MEDIA USERS* The content is relevant to me 59% 64% 66% Foe special contests and games 41% 45% 46% To check out ideas like recipes and photos posted by other readers or the magazine 39% 41% 45% To see what other people have to say 35% 41% 42% To get additional magazine content that is not available in print or digital versions 35% 42% 42% For special offers from advertisers or the magazine 32% 33% 37% To comment 26% 34% 35% To interact with other readers 15% 21% 20% No particular reason 18% 19% 18% 94 Source: MPA, Magazine Readers are Social, 2012 * Use 3 or more social media network brands

95 FACEBOOK LIKES AND SOCIAL NETWORKS 69% Consumers use social media 83% Marketers use social media Have you ever liked something on social media on behalf of a brand or product you enjoy? Which of the following would you do if you saw a friend like a product on social media or social networking site? Yes No 35% 43% 57% 66% Marketers Consumers 1/3 of all likes on Facebook now occur via a mobile device De-friend that person on social media Purchase the product Recommend the product to others Hide that person from your social media newsfeed Comment' on the product Like' the product Other Visit the product's social media page Visit the product's website I do not visit social networking sites Check out the product None 1% 2% 2% 2% 4% 5% 6% 11% 14% 20% 29% 35% 95 Source: State of Online Advertising, Adobe, 2012; Smartphones and Tablets Though Mobile Require Sparate Ad Approach, MediaPost, 2013.

96 CONTENT GROUPINGS POSTED ON PINTEREST Food (recipes) is the number one content grouping on Pinterest, followed by home and décor. Pinterest not only raises awareness of products given 25% of Pinterest users reported purchasing a product or service after discovering it on Pinterest. Interactive Types of Items Found on Pinterest % of Respondents Pinterest as Purchase Driver % of Users Buying after Discovering on Pinterest(%) Food Home 40% 57% % Arts & crafts Style/fashion Products Vacation/temporary Humour 34% 30% 26% 25% 25% % 17% Travel Inspiration/education Children 22% 20% 14% All Male Female 96 Source: Compete, Online Shopper Intelligence Survey, July 2012

97 MAJOR CATEGORIES OF SOCIAL-TO-SALE PURCHASING To the best of your recollection, in which product category was the last item you purchased after you shared or favorited it? April and June % 24% 14% 13% 21% 5% 9% 18% 8% 8% 17% 22% 18% 6% 25% Pinterest Facebook Twitter Food & Drink Art & Design, DIY Craft, Photography Gardening & Décor Hair & Beauty, Men's & Women's Apparael Tech & Electronics Source: Affluent Shopping Index, Martinimedia and ComScore, 2013.

98 SOCIAL PURCHASERS Social purchasers aren t like other social media users. Their demographics, values and the way they shop are distinctive. Have you ever purchased an item either in-store or online after you shared or favourited it? Asked June 2013 General Population Social Purchasers 49% Male 51% Female 56% Male 44% Female 37% 51% 34% 31% 32% 15% Source: Affluent Shopping Index, Martinimedia and ComScore, 2013.

99 VIDEO Magazines are using various tools to deliver content to readers. Videos help consumers research and learn more about products. 3D views of products, demonstrations, testimonials and tutorials are all extremely effective at educating the consumer when presented in a short, quick format and increase engagement with the brand. Consumers feel more comfortable making a purchase after watching a video, and have more confidence that they have made the right decision. More and more magazines are seeing the importance of videos and the trust that a magazine brand can instill in a purchase

100 CONSUMERS ENJOY VIDEO CONTENT Younger generations and men watch more news videos on the tablet 70% prefer holding their tablet in horizontal or landscape orientation when interacting with news stories and watching videos 59% 45% 60% 46% 60% prefer short videos (less than a minute) rather than longer videos 42% would like to see more videos in the magazines on their smartphone. Among those who had downloaded 3+ apps, 50% agreed with this statement. Under 50 Over 50 Men Women 100 Source: New Poynter Eyetrack research reveals how people read news on tablets, Poynter, 2012; Tablet users even younger ones still prefer a print-like reading experience, Pew Project, 2012.

101 FAST-MOVING CONSUMER GOODS AMONG TOP SOCIAL VIDEOS SHARED Fast-moving Consumer Goods (FMCG) attracted almost as many online video shares as movie, TV and videogame trailers during the first quarter of The number of video ad shares for FMCG campaigns increased by 78.2% during the first 3 months of the year. Vertical Performance by Category (Share of Shares; Q1 2013; Data Sampled 4/2/2013) Category Share of Category Entertainment 28.7% FMCG 25.3% Tech 17.0% Autos 9.4% Sport 5.3% Apparel 3.7% Retail 2.7% Finance 1.9% Other 6.1% 101 Source: Social Video Report Says Entertainment And CMG/FMCG Tops In First Quarter, MediaPost, 2013.

102 CONSUMERS WATCH VIDEOS TO RESEARCH PRODUCTS Types of videos online shoppers watched while shopping for apparel Customer testimonials/reviews 36% marketing videos (videos that you viewed within an ) Consumer generated-videos Ads that appear elsewhere online Ads that appear while watching content on a TV network website 29% 26% 25% 25% Professional reviews 21% Ads that appear while watching content on an on-demand streaming video website 16% 102 Source: Strategies include incorporating user generated and product page videos, emarketer, 2012.

103 VIDEOS INCREASE CONFIDENCE IN PURCHASES Attitudes toward online product videos according to internet users More confident when I watch a product video in advance of making a purchase online and therefore less likely to return that product More confidence in the purchases I make after I watch a related video onsite Willing to stay on a website longer because the retailer or brand manufacturer makes product videos available to me More engaged with a retailer or brand manufacturer as a result of videos they make available about products they sell More likely to return to a retailer who integrates video into their website experience Purchase more products on websites that allow me to learn about products via video Spend more time on websites where video is present 45% 44% 41% 37% 35% 52% 51% Purchase products on websites as a result of being influenced by videos on their sites 31% 103 Source: Strategies include incorporating user generated and product page videos, emarketer, 2012.

104 CONSUMERS ENJOY ADS THAT FEATURE VIDEOS According to Readers of Digital Magazine Ads That Feature Videos STRONGLY AGREE SOMEWHAT AGREE TOTAL AGREE I enjoyed this interactive feature 44% 44% 88% The video enhanced my magazine reading experience 45% 42% 87% I was able to learn a lot more about the product 44% 44% 88% This brand is innovative for using this type of advertising 46% 43% 89% 104 Source: Affinity s VISTA Service (Jan-June 2011); Base: Readers recalling specific ads viewed/sponsored video

105 READER ACCEPTANCE Attitudes & behaviours 105

106 DIGITAL EDITIONS EARN HIGH READER SATISFACTION Satisfaction with digital subscriptions Benefits of digital edition subscription SUBSCRIBERS NEW CROSS- PLATFORM LOYAL CROSS- PLATFORM DIGITAL ONLY Very Satisfied 88% 92% 82% Intend to Renew 81% 93% 73% Note: Cross-platform subscribers are those who have access to both print & digital editions. The New Cross-Platform group is on their first subscription contract; the Loyal Cross-Platform group is on their third or higher contract. Have access to multiple issues right in one device Interactive enhancements (e.g. links to more content, video slideshows, etc.) Convenience Quick access to additional information on the web Can read in low-light conditions 40% 37% 56% 54% 61% Fun to read 28% Faster access to issues 27% Can forward/share things I read with friends more easily 22% Source: Conde Nast Digital Subscriber Survey, June Magazine Media MPA Factbook 2013/2014.

107 PRINT MAGAZINES STILL TOPS WITH AFFLUENTS Magazine readers in households with income $100,000+ still prefer hard copy print editions over their digital counterparts viewed on various platforms and devices. Print remains the background of magazine brands. How magazines and other media are consumed in households with $100,000+ income MAGAZINES NEWSPAPERS TELEVISION WEBSITES Read hard copy 93% 86% View on computer 27% 39% 23% 94% View on smartphone 9% 14% 7% 32% View on television 6% 7% 94% 13% View on tablet computer 6% 7% 6% 15% View on tablet via website 5% 6% 3% 14% View on tablet via app 5% 4% 4% 8% View on e-reader 4% 3% -- 5% 107 Source: Mendelsohn Affluent Barometer, March/May 2011

108 WHY CONSUMERS APPRECIATE ONLINE ADVERTISING Reasons that internet users appreciate advertising It gives me a discount 63% It's a valuable exchange of my time for free stuff I learn something new 46% 42% It's fun and entertaining 36% I get it myself on demand 19% Someone sends it to me 7% 108 Source: Best Ads Feature Deals, Consumers Say, emarketer, 2012; Click Here: The State of Online Advertising, Adobe Systems Incorporated, October 2012.

109 CONSUMER & MARKETER VIEWS OF ONLINE ADVERTISING Consumers and marketers feel online advertising is effective except when banner ads are used. Online Advertising Is Not Effective Web Banner Advertisements Do Not Work Marketers 16% Marketers 33% Consumers 30% Consumers 54% 109 Source: State of Online Advertising, Adobe, 2012

110 INTERNET USERS HATE MAGAZINE ADVERTISING THE LEAST Types of media on which internet users hate advertising, by age YouTube & Hulu 40% 20% 14% 10% Radio 36% 36% 26% 16% TV 34% 41% 45% 59% 31% 33% 32% 43% Mobile phone or device 28% 32% 31% 23% Websites 24% 34% 37% 38% Outdoor 8% 6% 7% 9% Magazines 8% 5% 7% 8% Newspaper 3% 3% 3% 5% PREFERENCE Preferred Deliverables to Mobile % RESPONDENTS Deals & Coupons 44% Free tools 27% Interest based information 27% Location based information 25% Latest product news 18% Fun features 15% 30% 38% Overall, 30% of consumers are willing to accept ads in apps as long as the apps are free. 38% of consumers are willing to share location in return for more relevant services and offers. 110 Source: Play your Cards Right For Huge Mobile Ad Opportunity, Jack Loechner, Media Post; Millward Brown, AdReaction 2012, November 2012; Best Ads Feature Deals, Consumers Say, emarketer, 2012;.

111 TIME SPENT READING DIGITAL MAGAZINE ISSUES 46% of digital magazine readers spent 30 minutes or more reading each issue. How much time, on average, do you spend reading or looking through an issue? <15 minutes minutes 14% 40% 26% 10% 10% minutes minutes 60+ minutes 0% 20% 40% 60% 80% 100% 111 Source: Texterity, Digital Magazine Reader Survey, 2012

112 MAGAZINE TITLES ON BOTH TABLETS & SMARTPHONES SEE INCREASED READING When magazines are available on both devices, the number of reading sessions per month & the number of pages read per session see increases. Reading Session Usage 30.3 Mobile reading: engagement by device type 2.9 Tablets 1.7 Smartphones Tablets 10 Smartphones 2% other Reads on smartphone 23% of the time Reads on tablet 75% of the time Frequency Reads Per Month Engagement Pages Per Session Note: Analysis based on million reading sessions to 100 digital magazine apps between January 2012 and February Source: Adobe Systems Inc., Magazine Media MPA Factbook 2013/2014.

113 TIME SPENT READING DIGITAL EDITIONS Since starting to read digital magazines, more than 1 in 4 say they have increased their reading time spent with magazine media (both print and digital). Time spent reading magazines (print + digital) Over the last year, time spent per reader has averaged 30 minutes with each digital issue and readers have accessed digital issues an average of 2.5 times. With more reading options, total time spent with magazines is growing among subscribers 27% more time 15% less time 58% about the same amount of time SUBSCRIBERS TIME SPENT (MINUTES) DIGITAL ONLY PRINT ONLY NEW CROSS- PLATFORM LOYAL CROSS- PLATFORM Print Issues N/A Digital Issues 70.2 N/A Total time spent Source: How Magazine Media Readers Evaluate & Use Digital Newsstands, GfK MRI/MPA, November 2012 Base: 796 respondents who have used e-newsstands to find, subscribe to and download magazine branded content apps Source: Conde Nast Digital Subscriber Survey, June Note: Cross-platform subscribers are those who have access to both print & digital editions. The New Cross-Platform group is on their first subscription contract; the Loyal Cross-Platform group is on their third or higher contract Source: Magazine Media MPA Factbook 2013/2014.

114 DIGITAL READERS SPEND MORE TIME WITH ENHANCED ADS For the same brand, digital magazine readers spent more time with ads enhanced for tablets (EFT) than with straight from print (SFP) almost twice as much. Time Spent with Ad (seconds) +90% Ads enhanced for tablets (EFT) 190 Static ads--straight from print (SFP) 100 Note: Comparisons are from the same brand in Time Inc. tablet magazines. Only one page ads; cover 2 and cover 4 are excluded Source: Time Inc. Research & Insights, Magazine Media MPA Factbook 2013/2014.

115 READING PREFERENCES BY DEVICE Reading on tablets is preferred vs. mobile phones and computers. Tablet reading is preferred, by a lesser degree, vs. ereaders and print magazines. Device Preference for Reading (% of tablet users) Prefer tablet to dedicated ereader 48% 33% 19% Prefer tablet to magazine 53% 41% 6% Yes Prefer tablet to newspaper 58% 35% 7% No Prefer tablet to online/computer 59% 32% 9% Don't know Prefer tablet to mobilephone 71% 23% 5% 0% 25% 50% 75% 100% 115 Source: OPA, A Portrait of Today s Tablet User Wave 2, June 2012

116 CONSUMERS ENJOY READING MAGAZINES ON TABLETS Content that US tablet users have purchased on their tablets Magazine-Single Digital Issue Magazine-Digital Subscription 19% 20% 96% of tablet owners have read a printed magazine in the last year, compared to the 80% national average 68% of tablet owners state that they have read newspapers or magazines on a tablet that they had not previously read in print Magazine adverts deliver similar levels of recall across print (53%) and digital (56%). Digital advertising further improves on the performance of its traditional counterpart when it comes to generating further interaction with the brand via the brand s website, social media, etc. 116 Source: Epublishing Rapidly Expands Amid Uncertainty, August 14, 2012, emarketer; PPA TAP Report shows increasing tablet sales to fuel growth in print and digital magazine engagement, Novermber 14, 2012, PPA; 33 Percent of Americans Own an ereader or Tablet, Pew, December 27, 2012.

117 CONSUMERS VIEWS ON PAYWALLS FOR DIGITAL CONTENT Purchase of digital magazines on smartphones Total respondents 3+ apps / downloaded 3+ apps 50% / 57% I subscribe or buy single issues via a newsstand 31% / 44% I have a digital subscription through my print subscription 27% / 15% I haven t purchased a digital magazine on my smartphone 39% Purchase of digital magazines on tablets 20% Have purchased a single issue of a magazine 19% Have purchased a digital magazine subscription 39% would prefer to pay just for the magazine content they choose to access vs. an all-access plan 117 Source: Magazine Media Readers and Smartphones, MPA, 2012; Epublishing Rapidly Expands Amid Uncertainty, 2012.

118 DIGITAL MAGAZINES & PAYWALLS Publishers are Increasingly Adopting Paywalls Business Publications 54% 57% say they would be willing to pay a fixed amount for total access to a magazine s content across any device or platform that they choose to use Newspapers Consumer Magazines Total 22% 41% 48% 24% would be willing to pay more for the smartphone version of a magazine than the printed version if it is a more engaging and interactive experience Paywall Adoption Rates are Increasing as are the Variety of Paywalls Publishers are Implementing Publishers and paywalls Don't know Other Hard Paywall Combination Paywall Metered Paywall 3% 8% 17% 33% 39% 56% of polled publishers charge for content on the ipad apps 42% charge for content on the iphone 38% charge for content on the Kindle 40% aren t currently charging for their content on any device 118 Source: AAM study shows strength of mobile among media brands, 2012; Alliance for Audited Media, 2012; Magazine Media Readers and Smartphones, MPA, 2012.

119 DIGITAL MAGAZINE READER BENEFITS Ease of access and portability are the top two reasons why readers access digital magazine copies. For which of the following reasons, if any, do you access magazines in electronic form ATTITUDINAL STATEMENTS AGREEMENT (%) It s easy to access the magazine s content & articles 70% The portability of having all my magazines on one device 53% I like the interactive features like videos, photo galleries and #D views 40% It saves trees and is better for the environment 37% It s a convenient way to buy issues or subscribe to a magazine 37% It costs less than the printed copy of a magazine 30% The availability of back issues and special issues about topics of interest to me 26% The availability to save past issues and articles in electronic form 25% There are a lot of added extras that are not available from the printed magazine 23% I am an early adopter when it comes to accessing media 19% The ability to change the type size and format of the magazine 19% It s easy to upgrade my existing subscription to include the e-version of the magazine 17% Some other reason 4% 119 Source: MPA, The Mobile Magazine Reader, November 2011

120 CONSUMERS ENJOY ADS THAT FEATURE PHOTO GALLERIES According to Readers of Digital Magazine Ads That Photo Galleries STRONGLY AGREE SOMEWHAT AGREE TOTAL AGREE I enjoyed this interactive feature 45% 47% 92% The photo gallery enhanced my magazine reading experience 43% 45% 88% I was able to learn a lot more about the product 42% 46% 88% This brand is innovative for using this type of advertising 44% 44% 88% 120 Source: Affinity s VISTA Service (Jan-June 2011); Base: Readers recalling specific ads/viewed photo gallery

121 CONSUMERS USE MOBILE DEVICES TO READ NEWS The surge of mobile device use has resulted in higher news consumption among consumers. For almost everyone, mobile technology is a way to get breaking news. 64% of tablet owners and 62% of smartphone owners say they use the devices for news at least weekly. Most get news just once per day Percent of news users who get news during the week Most check headlines on Mobile Devices Percent of news users who check news headlines Once a day Multiple times a day 52% 56% 42% 38% Smartphone Tablet Smartphones 32% 53% Regularly Sometimes No Answer 6% 6% Tablets 35% 57% Source: 2012 Publisher Monetization Survey, Godengo+texterity, An Exploration of Digital Content, Monetization, and Revenue, 2012; Almost 2/3of Mobile Device Owners Are Reading Digital News, Pew,

122 MEN ENJOY INTERACTIVE NEWSREADING EXPERIENCES Men, especially young men, are more likely to get news on a tablet. Men are more likely to get news on tablets 43% 41% 32% 30% Tablet Smartphone Men Women Approximately 4 in 10 expressed a preference for interactive news-reading experiences 122 Source: Readers Prefer Print like News reading Experience on Tablets, Mashable, 2012; Tablet users even younger ones still prefer a print-like reading experience, emarketer, 2012.

123 MAGAZINES INSPIRE MOMS IN THE KITCHEN Moms look to magazines as sources for recipes and for inspirations on what to buy. Top Recipe Sources Among US Mom Internet Users, September 2012 Websites 78% Magazines Bloggers Cookbooks Pinterest Friends 71% 71% 68% 66% 61% 123 Source: Female smartphone owners use their devices more for grocery shopping than they did a year ago, emarketer, 2013

124 NEWS CONSUMPTION VIA BROWSERS VS. APPS Education appears connected to browser vs. app preference on tablets. College educated tablet news consumers gave a greater affinity towards apps. Tablets 65% Smartphones 67% 53% 51% 30% 17% College grad+ Some college or less 36% 22% Mostly through the web Mostly through apps Mostly through the web Mostly through apps 124 Source: Tablet users even younger ones still prefer a print-like newsreading experience, Pew Research, 2012.

125 CONSUMERS GET NEWS THROUGH BOTH BROWSERS & APPS App news users and those who use both apps and the browser equally remain in many ways more engaged and deeper news users than those who mostly use their browser. Tablet users get their news Smartphone users get their news 60% 61% 23% 16% 28% 11% Mainly through browser Mostly through apps Use both browser and apps equally Mainly through browser Mostly through apps Use both browser and apps equally 125 Source: The explosion in mobile audiences and a close look at what it means for news, Pew Research, 2012.

126 DIGITAL READERS READ BOTH CURRENT & BACK ISSUES Readers of digital magazines access and read current issues as well as back issues (55%). This result is evidence of the longevity of magazine content and the shelf life of advertising. Do you typically read only current issues of electronic magazines, or do you read back issues as well? 45% I only read current issues 55% I read current issues and some back issues as well 126 Source: MPA, The Mobile Magazine Reader, November 2011

127 READING OCCASIONS OF SAME DIGITAL MAGAZINE ISSUE 86% of all digital magazine reading is done over multiple reading occasions, predominantly 2 or 3 times per issue. This finding supports evidence that magazine readers are typically exposed to an ad page more than once. On average, how many different times do you access the same electronic issue of a particular magazine? 8% 9% % % % Source: MPA, The Mobile Magazine Reader, November 2011

128 DIGITAL AD ENGAGEMENT MIRRORS PRINT Equal numbers of consumers noted a print or digital magazine ad. Print vs. Digital Magazines (%) Average noting Any action taken 52% 52% 59% 71% Print ads Digital ads Source: GfK MRI Starch/Starch Digital, Magazine Media MPA Factbook 2013/2014.

129 READERS ARE HIGHLY FOCUSED & ENGAGED ON TABLETS People keep nearly constant contact while touching, tapping, pinching and swiping to adjust their tablet view or they carefully arranged a full screen of text before physically detaching as they sat back to read. Intimate readers made up a majority of the study, at 61%. Readers view an average of 18 items before they choose their first story to read. An average of 98.3 seconds were spent on the first story a person chose to read. (People often leave web pages after seconds on average). For people who left a story before completing a piece, they spent an average of 78.3 seconds on the page. Among tablet news users who read longer articles 78% 72% Read more than one indepth article during a sitting Read in-depth articles they were not initially looking for 129 Source: Eye tracking and online banner ads, Mediative of Montreal, September 28, 2012; 5 Stats to Note from Poynters ipad Eye Tracking Study, 2012; New Poynter Eyetrack research reveals how people read news on tablets, Poynter, 2012; How long do users stay on web pages, Neilsen Norman Group, 2012.

130 TABLET USER ATTITUDES TOWARDS TABLET ADS Respondents who regularly used magazine apps on their tablet had more positive associations with ads than negative. 46% felt that ads were relevant, unique and interesting while 38% felt the ads were eye-catching and hard to ignore. Just 28% felt the ads were annoying. Attitudes of tablet users towards tablet advertising (% of respondents) Relevant Unique and interesting Eye-catching Hard to ignore Same as internet ads Annoying None of the above Not sure 4% 6% 28% 36% 38% 38% 46% 46% 130 Source: emarketer.com, A Portrait of Today s Tablet User, Frank N. Magrid Associates for the Online Publishers Association (OPA). June 22, 2011

131 CONSUMERS ENJOY ADS THAT FEATURE 3D PRODUCT VIEWS According to Readers of Digital Magazine Ads That Feature 3D Product Views STRONGLY AGREE SOMEWHAT AGREE TOTAL AGREE I enjoyed this interactive feature 58% 35% 93% The product views enhanced my magazine reading experience 54% 38% 92% I was able to learn a lot more about the product 49% 42% 91% This brand is innovative for using this type of advertising 54% 38% 92% 131 Source: Affinity s VISTA Service (Jan-June 2011); Base: Readers recalling specific ads viewed/3d Product Images

132 132 CONSUMERS TAKE ACTION

133 DIGITAL MAGAZINES DRIVE READERS TO ONLINE ACTION 80% of total respondents took some form of action after downloading the digital version of the magazine. TOTAL (796) (262) 35+ (534) Any (net) 80% 85% 78% Visited the magazine s website 53% 59% 51% Recommended the magazine to someone 32% 38% 30% Visited the magazine on Facebook, Twitter or other social media site 26% 35% 22% Base: 796 respondents who have used a newsstand to find, subscribe and download magazine branded content apps Source: How Magazine Media Readetrs Evaluate & Use Digital Nesstands, GfK MRI/MPA, November 2012Magazine Media MPA Factbook 2013/2014.

134 DIGITAL MAGAZINE ADS INCREASE ENGAGEMENT & KEY PERCEPTIONS Reader response to digital magazine ads read on tablets and other devices suggest that sponsored video and photo galleries increase strong reader engagement and brand perception. Reader response to digital magazine ads with sponsored video or photo galleries % 92% 88% 87% 88% 91% 89% 92% Enjoyed the experience Enhanced the magazine reading experience Learned more about the product View the brand as more innovative Sponsored Video Photo Galleries 134 Source: Affinity VISTA Digital Service, 2011

135 CONSUMERS RESPOND TO PERSONALIZED ADS US Magazine subscribers who would respond to personalized advertising on an electronic device/reader 34% intend to use their ipad to read the newspaper/magazines 80% of respondents said they would be more apt to renew their subscriptions if content and information were targeted to their personal preferences No 59% Yes 41% 63% said they would go online to find more information about advertisers if the ads in their print edition were customized for their interests Consumers look at leaderboard ads 44% longer than the next best performing format. They were also seen in the least amount of time and had the highest percentage of people noticing them. 135 Source: Personalized Ads Appeal More In Print, emarketer, May 20, 2010; Eye tracking and online banner ads, September 28, 2012, Mediative Montreal.

136 MAGAZINES SPUR CONSUMERS TO SHARE USING THEIR SMARTPHONE Since accessing digital magazines on their smartphone, readers became more engaged with the magazine brand s social platforms. When reading a print magazine, have you done any of the following activities on your smartphone? 47% agree that since accessing digital magazines on their smartphones they have become more engaged on social platforms 36% are more engaged on the brand s Facebook 15% are more engaged with the brand s Twitter 9% are more engaged with the brand s Pinterest Pinned an image that I saw Took a picture of something in an article or advertisement Posted something on Twitter or Facebook that I saw in a Looked up a hashtag I saw in an article or advertisement Scanned a QR code in a magazine Any of these activities 24% 15% 39% 29% 42% 31% Downloaded 3+ apps 24% 17% Total respondents 43% 36% 83% 72% 2/3 of readers tap on ads appearing in digital magazines on their smartphones 65% use links generated by smartphone cameras 136 Source: Magazine Media Readers and Smartphones, MPA, 2012

137 DIGITAL READER ACTIONS AFTER DOWNLOADING MAGAZINE CONTENT Readers of digital magazine content from visit the magazine s website (63%) after downloading the content. 35% recommend the magazine to others and 28% visit the magazine on a social media site. Which of the following, if any, have you ever done as a result of downloading the electronic version or select magazine content of a magazine? ATTITUDINAL STATEMENTS AGREEMENT (%) Visited the magazine s website 63% Recommended the magazine to someone 35% Visited the magazine on Facebook, Twitter or other social media site 28% Subscribed to the digital edition of a magazine after downloading select magazine content 24% Purchased a printed copy of the magazine at a newsstand or other retail outlet 17% Subscribed to the printed version of the magazine 14% None of these 15% 137 Source: MPA, The Mobile Magazine Reader, November 2011

138 DIGITAL MAGAZINE READERS ACT AS KEY INFLUENCERS Articles in digital or online magazines prompt readers to share what they ve learned online, acting as influencers through word of mouth, , on social networks or posting their comments. These actions reveal a high level of engagement with digital magazine content. How often do you do the following after reading an online or magazine or newspaper article? Tell someone about it face-to-face or on the phone 66% someone about it 49% Rate or review the article Post a link to the article on Facebook, Twitter or your personal blog/website Leave a comment for the author on the article page 27% 34% 33% 138 Source: The Future of Newspapers and Magazines in the Digital Era, Vision Critical, 2011 Base: 1,010 US adult newspaper and/or magazine readers

139 DIGITAL MAGAZINE READERS HAVE AN ACTION ORIENTATION 90% of digital magazine readers take one or more actions with regards to a product or service. What actions have you taken as a result of reading an advertisement/article in this digital publication? Looked at advertiser's web site 65% Incorporated a new technique/medium/product Contacted advertiser for more info Sent info about advertiser to colleague Recommended purchase of producrs/services Recommended product/service 34% 31% 30% 29% 27% Purchased a product/service 18% Other 1% % of readers took one or more specific actions 139 Source: Texterity, Digital Magazine Reader Survey, 2012

140 DIGITAL SHOPPER SEGMENTS BY COUNTRY Developing countries such as China, India Brazil and others are dominated by Social Shoppers and Digital Shopaholics, those who take digital shopping very seriously. Canada ranks 13 th on the list, characterized by a more balanced distribution of shopper segments. China India Brazil Mexico Turkey Russia Italy Spain US UK Australia France Canada Germany Sweden Finland Digital Shopper Segments by Country (%) Ranked by Social Shoppers/Digital Shopaholics) % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Social Digital Shoppers Digital Shopaholics Rational Online Shoppers Value Seekers Occasional Online Shoppers Techno-Shy Shoppers 140 Source: Capgemini, Digital Shopper Relevancy, 2012

141 READING PRINT ON A DEVICE IS A PRIMARY SHOPPING CATALYST Shopping while reading print at home is the foremost activity performed on tablets (63%) and smartphones (49%). Print content is a primary shopping catalyst. Which of the following have you done (in location/situation)? Data represents shopping activity Reading print - at home 49% 63% Watching TV - at home 29% 59% Other leisure activities - at home Other locations, e.g. shopping, at work 24% 18% 40% 54% Tablet Smartphone In car/on public transport 18% 43% Source: ABI Research Survey, June 2012

142 CONSUMERS INTERACT WITH ADS ON TABLETS 55% of digital magazine readers noted or read a digital ad on their tablet or e- reader Among those, 52% took an interactive action as a result 38% touched or clicked the ad to expand it When viewing a multi-page ad Accessed a social network through the ad Touched/clicked ad for more information Downloaded an app Viewed a gallery Watched a video or commercial featured in an ad 24% 27% 30% 30% 31% More than 1/3 of digital ad readers looked beyond the first page of the ad to view more pages More than 1/3 accessed a website via the ad 1/4 of year olds say they sometimes tap on ads 142 Source: New Research Shows How Digital Magazine Ads Prompt Interactivity, October 17, 2012, Gfk MRI Starch Digital.

143 WEBSITE TRAFFIC FROM TABLETS AND SMARTPHONES Globally, websites are getting more traffic from tablets than smartphones. Mobile Surfing Internet Users (% of Internet Surfers Country) COUNTRY TABLET SMARTPHONE Canada 8.7% 6.8% US 9.1% 7.4% UK 12.2% 7.4% Germany 5.7% 4.3% France 6.1% 3.5% Japan 7.4% 9.2% China 3.1% 5.9% Australia 7.7% 7.8% Source: Smartphones and Tablets Though Mobile Require Separate Ad Approach. MediaPost, 2013.

144 ACTIONS TAKEN AFTER VIEWING ADS ON A DEVICE Tablet users take more actions than smartphone users. Of note, 46% of tablet users made a purchase after viewing an ad on that device vs. 18% of smartphone users. Which, if any, of the following have you done as a result of viewing or clicking on an ad on your (device)? Please select all that apply. Received a coupon Investigated a product/servive Made a purchase Viewed a video Signed up for newsletter Visited a local business Downloaded or purchased digital content Shared ad via social media/network Signed up to receive text alerts Called number in the ad None of the above 51% 37% 49% 38% 46% 18% 43% 27% 39% 22% 35% Tablet 30% 30% Smartphone 23% 28% 16% 27% 28% 18% 16% 11% 20% Source: ABI Research Survey, June 2012

145 DIGITAL MAGAZINE READERS WANT ecommerce FUNCTIONALITY Digital magazine readers want the ability to purchase products and services directly from digital magazine ads and editorial features. These findings further support evidence that readers shop magazines to learn what s new and what s available for purchase. Interest in ecommerce functionality in magazine ads and editorial (%) Typically engage with digital magazine ads 73% Want ability to purchase products/services directly from editorial features 70% Want the ability to buy directly from ads 59% Source: MPA, The Magazine Mobile Reader, Affinity, November 2011

146 MOMS RESEARCH PRODUCTS ONLINE Products and Services Mom Internet Users in Canada Have Researched or Purchased Online % of respondents RESEARCHED ONLINE PURCHASED ONLINE Media (books, magazines, music, DVDs) 71.0% 55.8% Clothing 68.2% 42.4% Babies & Kids 67.7% 45.2% Vacation/Travel 67.3% 34.1% Event tickets (movies, concerts, sporting events) 65.4% 47.5% Home electronics & computers 59.9% 11.1% Beauty & Cosmetics 41.5% 14.3% Automotive 40.1% 1.8% Home & Garden 38.7% 5.1% Gift card/certificate 33.2% 21.2% Office Supplies 29.5% 11.1% Sporting Goods 29.0% 2.8% Groceries 27.2% 5.1% Insurance Products 27.2% 2.8% Pharmaceuticals 23.0% 0.9% Pets 19.8% 1.8% None of the above 6.5% 15.7% Source: Moms in Canada Rely on Digital Media, emarketer, 2013.

147 PURCHASE SPENDING BY DEVICE Monthly spending on digital or physical goods/services is higher on tablets than smartphones. 83% of tablet users and 67% of smartphone users make purchases from their devices monthly. 40 Approximately how much, if anything, would you estimate that you spend on your (device), e.g. purchases of digital or physical goods, in a typical month? 33% 30 Tablets Smartphones 20 22% 14% 24% 16% 14% 19% 17% 10 8% 8% 6% 6% 8% 6% 0 >$50 $20-$50 $10-$20 $5-$10 <$5 Varies NA 147 Source: ABI Research Survey, June 2012

148 CONSUMERS USE TABLETS TO PURCHASE 40% 4 in 10 After seeing a product in an ipad ad Have made a purchase through the ipad 8% 40% of tablet owners use their device for browsing products to purchase Have bought goods & services on their tablet Have made a purchase on the internet or phone Have made an in-store purchase after seeing a product in an ipad ad 24% 48% No 28.4% use their smartphone for browsing products to purchase Those conducting search on a tablet were 42% more likely to click on ads compared to those searching on a traditional computer Source: The Source, GfK MRI News and Insights, comscore-gfk MRI Fusion linking online and offline behaviours with consumer lifestyles and attitudes, January 2013; comscore TabLens, 2012; emedia Vitals Publisher s Playbook: ipad Publishing Strategies, 2012; 148

149 THE POWER OF TABLETS IN THE PATH TO PURCHASE Mobile and tablet advertising s effect on brand metrics Online ad awareness Purchase intent Brand favourability Message association Unaided awareness 43% 26% 24% 11% 17% 9% Tablet campaigns Mobile InsightNorms 8% 16% 14% 9% Consumers are keenly aware of ads served to their tablet devices and those ads were twice as likely to raise purchase intent as typical mobile ad campaigns. Magazine adverts deliver similar levels of recall across print (53%) and digital (56%). Digital advertising further improves on the performance of its traditional counterpart when it comes to generating further interaction with the brand. Aided awareness 7% 14% 149 Source: emedia Vitals Publisher s Playbook: ipad Publishing Strategies, 2012; By 2015 more than half of US internet users will use a tablet, emarketer, 2012.

150 INTERACTIVE MAGAZINE ADS OUTPERFORM STATIC DIGITAL ADS Tablet ads are more engaging than typical mobile campaigns and, at times, more effective than ads on a PC. Consumers are keenly aware of ads served to their tablet devices. Interactive magazine ads outperform their static digital counterparts across all five categories Participants rated 7 ads on a 9-point scale across 5 categories and were also asked to review a specific ad. OVERALL ADS THE SPECIFIC AD Static ads Interactive ads Static ad Interactive ad Mean Mean Mean Mean Perceived interactivity Perceived engagement Message involvement Attitude toward the ad Purchase intention Ads in digital magazines outperform static ads by as much as 70% in areas such as engagement, attitude & purchase intent Tablet ads are twice as likely to raise purchase intent as typical mobile ad campaigns. 150 Source: emedia Vitals Publisher s Playbook: ipad Publishing Strategies, 2012; By 2015 more than half of US internet users will use a tablet, emarketer, 2012.

151 ROLE OF CONNECTED DEVICES IN SALES FUNNEL Research supports the theory that different connected devices have different roles to play throughout the purchase cycle depending on the search location and mindset. Device Usage Throughout the Purchase Process AT HOME AT WORK OUT-OF-HOME Relaxed Mindset Big Ticket Purchasing Focused Mindset Predetermined Purchasing Convenience Mindset Functional Purchasing AWARENESS 55% 51% 32% 36% 42% ACTIVE EVALUATION 53% 55% 26% 27% 36% 38% CONSIDERATION 58% 36% 42% PURCHASE 58% 51% 22% 31% 37% POST PURCHASE 49% 29% 37% Tablet Computer Smartphone 151 Source: Mobext/InMobi, The Role of Connected Devices jn the Consumer Sales Journey, 2012

152 RECEPTIVITY TO MOBILE ADS BY AGE Younger demographics are more receptive of mobile advertising than older demos. Receptivity ranges from 58% among year olds to 28% among those 55+. Reaction to Mobile Advertising by Age (%) Age % 45% 42% Age Age % 8% 40% 35% 54% 58% I always look at it I sometimes look at it Age % 35% 58% I never look at it Age 55+ 1% 27% 72% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 152 Source: MPA, Personal Mobile Devices, Smarter Media Sales, 2010

153 MAGAZINES & SMARTPHONES Which of the following, if any, have you ever done as a result of reading digital magazine content on your smartphone? Consumers and digital magazine activity on their smartphones Purchased a print issue of a magazine Subscribed Followed magazine's Faceook, Twitter or social media site Recommended the magazine to someone Visited the magazine's website 28% 20% 44% 26% 40% Downloaded 3+ apps 26% Total respondents 44% 30% 68% 60% Consumers who had downloaded 3+ apps were more likely to be more active digital customers. Total respondents / Downloaded 3+ apps 60% 64% I would like the smartphone version of a magazine to deliver more current information than printed copy 28% 36% I prefer to download magazine branded apps onto my smartphone rather than a full magazine issue 2/3 Read or tap on ads appearing in digital magazines on their smartphones with those reading the most doing it the most 77% say that pictures and photo galleries enhance their experience with digital magazines on their smartphones. Most prefer short videos of less than a minute. 153 Source: Magazine Media Readers and Smartphones, MPA, 2012.

154 DIGITAL AD PERFORMANCE On tablets, banner to full-page ads, pre-roll with overlay ads and rich media interstitial ads showed the greatest lift across specific metrics, compared with the standardized version of each of these ad types. The banner to full-page ad s click through performance on tablets was more than 4 times greater than the static web banner. Engagement of the banner to full-page ad performed 127% better than the benchmark web banner. Engagement Rate and CTR for Select Advanced Tablet Ad Models in the US Banner to full page ENGAGEMENT RATE CLICKTHROUGH RATE Benchmark* 1.5% 1.7% Advanced model 3.4% 8.7% Advanced model lift over benchmark 126.7% 411.8% Pre-roll with overlay Benchmark** 14.9% - Advanced model 11.5% 1.0% Advanced model lift over benchmark -22.5% - Rich media interstitial Benchmark*** 6.0% 4.3% Advanced model 11.3% 3.3% Advanced model lift over benchmark 88.3% -23.3% Note: *benchmark was static web banner; **benchmark was standard pre-roll; ***benchmark was static interstitial Source: Rich media interstitials pre-rolls with overlay and banner to full page ads perform best, emarketer, 2013.

155 MAGAZINE ADS CAN INFLUENCE AN AUTO PURCHASE IMMEDIATELY Digital Magazine Effectiveness by Auto Segment AVERAGE AD RECALL AVERAGE ACTIONS TAKEN Full-size 65% 66% Compact 62% 64% Mid-size 59% 63% 51% of mobile auto searchers report ultimately making a purchase 49% look to make a purchase within the day 36% of smartphone users are looking to make a decision immediately or within the hour 25% of tablet searchers are looking to make a decision immediately or within the hour 155 Source: Mobile Auto Shoppers Split Between Conversion and Research, xad & Telmetrics, 2012

156 Print + Online sample size insufficient to report 2+ frequency Print + Online sample size insufficient to report 2+ frequency PRINT + ONLINE WORK TOGETHER: TETLEY TEA Magazines and online work separately and synergistically to build brand businesses. Tetley Red Tea: 2+ Exposure Frequency Tetley Red Tea: Target Group Control (base = 100) Online only OTS Control (base = 100) Online only OTS Print only OTS Print + Online OTS Print only OTS Print + Online OTS 0 Ad Awareness Intent to Purchase 0 Ad Awareness Intent to Purchase 156 Source: IAB Canada Cross-Media Optimization Study, Tetley Red Tea, 2011

157 MAGAZINES + ONLINE WORK TOGETHER: DOVE Magazines plus online and television make an ideal combination for Dove Sensitive Essentials, driving awareness, purchase intend and key brand attribute scores. Dove Sensitive Essentials: Total Sample (Index) Dove Sensitive Essentials: Attribute Scores: Target Group (Index) Aided Ad Awareness Intent to Purchase Online only TV only TV + Magazines + Online TV + Magazines + OOH Statement A Statement B Statement C Online only TV only TV + Magazines + Online TV + Magazines + OOH 157 Source: IAB Canada Cross-Media Optimization Study, Tetley Red Tea, 2011 Note: All scores indexed vs. Control (control = 100)

158 OTHER USEFUL INFO Magazines Canada can help 158

159 ABOUT MAGAZINES CANADA Magazines Canada is Canada s professional magazine industry association, representing the country's top consumer and business titles. As a not-for-profit organization, it strives to serve Canadian magazines through advocacy, direct-to-retail distribution, professional development, marketing and advertising services. Magazines Canada strives to supply the advertising industry with solid information to help advertisers and agencies understand how magazine advertising works and how they may be put to work for them. For examples of information available, please click on the following: Magblast A series of podcasts designed to inform and educate PAGE newsletter A monthly newsletter reporting news and latest research Magazine Essentials A summary of magazine planning information Put Magazines to Work A summary of the latest magazine industry info Magazine research information An archive of major magazine research 159

160 FACT BOOKS Want to learn more about Business Media or Digital Magazine Media? We have Fact Books for them too. For immediate access, click here. Magazines Canada gratefully acknowledges the support of the Ontario Media Development Corporation in the development of the Fact Books. 160

161 CATEGORY QUICK HITS Magazines Canada s new Category Quick Hits series will help you go deeper into how magazines work in several key product categories. Quick Hits are compendiums of the latest research information for each category. Click here. Automotive Travel CPG Health & Beauty Financial Home Reno/Improvement Beer, Wine & Liquor Food/Food Products Drugs & Remedies