How Media Works: Advertising and the Purchase Funnel for Furniture, Mattress or Carpet/Flooring Store Advertising

1. How Media Works:Advertising and the Purchase Funnel for Furniture, Mattress or Carpet/Flooring Store Advertising A Yankelovich Study for the Television Bureau of Advertising

2. Study Objectives Determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand: • The role of television advertising in driving consumer actions throughout the purchase decision process • How television interacts with other media platforms, including new media such as the Internet • How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle Source: TVB/Yankelovich “How Media Works,” April 2009

3. Methodology • Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them. • Interviews took place January 29 to February 10, 2009; Super Bowl Sunday was excluded. • Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them. • Each respondent then completed an ad survey for up to three of these categories. • The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc. • The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied. Source: TVB/Yankelovich “How Media Works,” April 2009

4. One-Third of Respondents are In the Market “Are you currently considering a purchase in the Furniture, Mattress, or Carpet/Flooring Stores Category?” (Asked of those who recalled seeing a TV ad for furniture, mattress, or carpet/flooring stores in the last 2 months) Source: TVB/Yankelovich “How Media Works,” April 2009

5. Customer Profile: Furniture, Mattress or Carpet/Flooring Store Advertising Source: TVB/Yankelovich “How Media Works,” April 2009

6. Over a Third of Consumers Recently Saw a TV Ad for a Furniture, Mattress, or Carpet/Flooring Store That Caught Their Attention Saw an ad that got your attention: Source: TVB/Yankelovich “How Media Works,” April 2009

7. A Third of Those Who Recently Saw an Ad in This Category Say They Bought a Related Product/Service in the Past Year Last time made a furniture, mattress or carpet/flooring store purchase: 32% of those who recently saw a furniture, mattress or carpet/flooring store TV ad made a purchase in the past year 42% Source: TVB/Yankelovich “How Media Works,” April 2009

8. Two-thirds of Those Who Saw the Furniture, Mattress or Carpet/Flooring Store Ads Remember Them Positively Type of impression made by furniture, mattress or carpet/flooring store TV ad: 65% of those who saw these advertisements rated them positively Source: TVB/Yankelovich “How Media Works,” April 2009

9. Total Furniture Furniture Ads Are Seen as Informative and Attention-Getting Ratings of Furniture/Mattress/Flooring Store Television Ads: How much did it get your attention? How relevant was it? How informative was it? 43% total 34% furniture 53% total 52% furniture 54% total 47% furniture Source: TVB/Yankelovich “How Media Works,” April 2009

10. TV Ad Viewers Are Likely to Consider a Purchase, or Seek More Information Source: TVB/Yankelovich “How Media Works,” April 2009

11. Nine-in-ten consumers who saw TV ads in this category report seeing the ads multiple times Number of times saw furniture, mattress or carpet/flooring store TV commercial in past 2 months: Source: TVB/Yankelovich “How Media Works,” April 2009

12. Multiple Exposure to TV Ads Leads to a Much Higher Purchase Consideration Actions taken after seeing a Furniture, Mattress or Carpet/Flooring Store TV ad Source: TVB/Yankelovich “How Media Works,” April 2009

13. Those Who Saw TV Ads in the Furniture, Mattress or Carpet/Flooring Store Category Also Recall Newspaper Ads Source: TVB/Yankelovich “How Media Works,” April 2009

14. Furniture/Mattress/Flooring Stores Advertising Impact at Various Stages ofthe Consumer Purchase Funnel Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase Source: TVB/Yankelovich “How Media Works,” April 2009

15. Furniture/Mattress/Flooring Stores Media Impact at Various Stages of the Consumer Purchase Funnel Media cited by less than 3% of respondents were incorporated into the total for “other.” Source: TVB/Yankelovich “How Media Works,” April 2009

16. Conclusions • Over one-third of consumers are in the market for products in this category. • This category is defined by a long purchase cycle; only 7% of consumers are in the purchase phase at any given time. • Television advertising awareness is high, and TV ads are effective at creating consideration and conversation, and driving store traffic. • TV is the dominant media driver, and is most effective mid-funnel, in the Consideration phase. • Closing deals in this category happens in the showroom; driving consumers to the showroom is key. Source: TVB/Yankelovich “How Media Works,” April 2009