Newspaper Multiplatform Usage Qualitative Research Report

1. Newspaper Multiplatform UsageQualitative Research Report April 2012

2. Objectives • Deepen understanding of multiplatform news consumption overall and identify newspaper brands’ unique benefits within the news media consumption landscape • Primary Objective • For each newspaper consumption platform, identify key usage and engagement drivers, differentiating features, quality signifiers and perceived benefits • Understand consumers’ perceptions of and expectations for advertising when engaging with daily local newspaper content • Secondary Objectives 1

3. Nine 1 hour and 40 minute mini-groups (three per market) were conducted with participants who met the following criteria: Ages 21-60, with groups broken by age – 21-34, 35-49 and 50-60 An even mix of males and females Read a local daily newspaper in print at least once a week (2/group could read once a month or less) Access a local daily newspaper on either a smartphone or iPad more than once a week Use a smartphone or iPad daily to access Internet No relevant industry employment Household income above $40,000 per year Groups were conducted in: Washington, D.C., on November 2, 2011 Austin on November 8, 2011 Denver on November 10, 2011 Susan Kresnicka of Frank N. Magid Associates moderated the sessions. As is the case with any qualitative research, these focus groups were conducted among a limited and specific sample.  As such, the findings contained in this report should be used for directional purposes only. Methodology Denver Washington, D.C. Austin 2

4. Key Findings – News Consumption Throughout the Day

5. Newspaper Readers Consume Newspaper Content on Multiple Platforms Throughout the Day… Especially on Weekdays • Typical Weekday Newspaper Content Consumption • Upon Waking • Breakfast • A.M. Commute • Start of Work Day • Breaks/ • Lunch • P.M. Commute • Errands • Evening • Before Sleep 4

6. Weekends Yield Lower, Less Vigilant News Consumption Overall, But Higher Print Use • Less frequent, less patterned consumption • Some make a conscious decision to take a “mental break” from the news on weekends • Others simply consume less because they are active, engaged in other activities • Fewer platforms • Smartphones for top headlines dominate while out and about • iPad and print for more relaxed news reading sessions • Some Sunday morning TV news shows – e.g., “Meet the Press” • Print as ritual, relaxation • More prevalent among older readers, but carried on by some younger readers, too • Associated with total setting – coffee, couch, blankets, no rush • Sales, coupons and circulars prove key drivers • Platform • Platform 5

7. Multiplatform Newspaper Readers Seek Information Throughout the Day From a Set of ‘Go-to’ News Brands – Mix of TV, Radio, Print and Online News Brands • Online • TV • Local TV News • Newspaper • Radio • Local Daily Newspaper 6

8. Key Findings – Daily, Local Newspaper Platforms

9. Print – Emotional Experience, Circulars/Coupons Among the Best Things About Reading the Paper in Print • Key Drawbacks • Engagement • Key Equities • Relatively deep • Read with greater focus • Consume more full articles than on other platforms • “Bad for the environment” • Bulky, awkward to use for some • Ink on hands • Requires more time to read; opportunity to relax/slow down • Isn’t always available (as opposed to smartphone) • Requires another platform to search/follow up for more info • Difficult to share with others • Articles jump to other pages, sections • Strong emotional attachment to the reading experience • Reinforces connection with heritage (familial, cultural) • Associated with relaxation • Grounded in the tactile • Most trustworthy • Permanence of print demands higher quality, better editing, greater accuracy • However, some younger readers consider print less current, and therefore less trustworthy • Perceived as offering deeper reporting • Associated with less intrusive, more useful advertising • Ads can’t pop up, take over or expand to cover the content • Circulars, coupons considered useful and relevant • Platform 8

10. Website on Computer – Best for Search, Worst for ‘Intrusive’ Ads • Key Drawbacks • Engagement • Key Equities • Encourages search, exploration, connections to new information • Easy to do with full keyboard, multiple tabs • Always fresh, up-to-date • Easy to share info with others – and type a message to accompany it • Provides anytime access to previous articles, archives • Offers a record of how stories unfold • “Intrusive” advertising can undermine the reading experience • Can be difficult to see/skim full range of content available • Moderate • Skimming headlines, reading first few paragraphs • Easy to become distracted, follow links/searches to new articles/sites 9

11. Smartphones’ Anytime, Anywhere News Keeps Readers Informed On the Go, but Offers a Suboptimal Reading Experience • Key Drawbacks • Engagement • Key Equities • Keeps news at the reader’s fingertips throughout the day • Provides something to do during down times during the day, especially when waiting • Offers constant access to local news that may affectthe reader during the day • Small screen makes it difficult to read • Slow – articles spread over multiple pages; have to reload every time • Difficult to search for further information • Ads can be difficult to close; take up a disproportionate share of the visual real estate • Shallow • Mainly skimming headlines, reading first few paragraphs • Easy to get distracted by ads, small screen; need to expand font repeatedly • Often used for squeezing news in between other activities, with limited time and concentration to begin with • Platform of last resort for reading the newspaper, yet far better than nothing • Platform 10

12. The iPad Makes Reading the Newspaper Fun and Convenient • Key Drawbacks • Engagement • Key Equities • Makes reading the newspaper fun • Mimics print newspaper in novel, satisfying ways (especially page-turning) • The platform itself elicits a “new toy” enthusiasm for users • Users tend to associate the iPad with passive consumption and relaxation rather than purposeful tasks and work • “Small enough to carry, big enough to see.” • Provides easy-access video, audio • Lack of keyboard makes typing awkward for some • Limits their desire to search • Discourages sharing news because typing a corresponding message seems arduous • Moderate • Deeper engagement because the experience is enjoyable, mimics print • But articles seem truncated to some readers • Platform 11

13. Newspaper Apps Offer Optimized Web Experiences, Greater Sense of Trust • Those who frequently use news apps develop strong loyalties to them, finding the experiences apps provide to be: • “Smoother,” “less clunky,” “more seamless” and generally more intuitive • “Faster” – less waiting for screens to load; some information cached for immediate access • “Less cluttered,” “streamlined” visually • Some news app users also feel a greater sense of trust within the confines of the branded app experience • Expect to avoid the behaviorally targeted, highly intrusive, potentially electronically dangerous advertising they associate with websites • Believe the brand bears responsibility for creating a desirable experience within the “walls” of its app environment, including avoiding intrusive, “obnoxious” advertising “I would trust an ad most if it’s within The [Washington Post] app on an iPad. … It would have the biggest effect on me because The Washington Post is taking responsibility for the app. On The Washington Post website, I could be receiving an ad from anywhere.” – 21-34-year-old, Washington, D.C. • Platform 12

14. Key Findings – Advertising and the Daily Local Newspaper

15. Readers Retain and Sometimes Even Welcome AdvertisingWhen They Can Choose It and Find Value in It • CONTROL • Selecting the stores, brands, products and categories from which they receive advertising • Choosing how they experience advertising – upfront, interspersed, etc. • Opt-in ad platforms • E-mail • Social networking • The print newspaper • Discounts, sales, coupons, special offers and giveaways from brands/products they are interested in • Local deals • Loyalty program points/credits • Charitable donations • Even a good laugh • VALUE 14

16. Circulars and Coupons Drive Interest in the Print Paper and Readers Seem Poised to Welcome Analogous or Improved Online Versions • Circulars and coupons considered primary benefits of the print paper • Few recall seeing digital circulars/weekly ads in digital forms of the newspaper, but many receive these ads by e-mail or visit retailers’ websites to view them • Most readers express strong interest in a section of the digital paper that aggregates these ads, especially if it … • Offers enhanced functionality • Comparison shopping tools • Product locater • Links with discounts automatically applied • Allows the reader to choose which brands’ ads to view • Reduces unpleasant advertising experiences • Intrusive advertising in content areas • Overabundance of e-mail ads • Offers an incentive for viewing it (e.g., discount on purchased products, reward system) • Includes exclusive local and time-sensitive deals • Maintains the brand-bounded experience of the traditional circular 15

17. Susan Kresnicka Executive Director skresnicka@magid.com