CONSUMER & ADVERTISER Coupons/Deals Survey

1. CONSUMER & ADVERTISER Coupons/Deals Survey September 27, 2011

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

3. And The Winners Are . . . Consumer Winner Masud Warid – Charleston, SC Advertiser Winner Carol Kirchner – president of Smart Feet, Savannah, GA

4. First, Coupons Question: 28

5. Consumer Survey Respondent Group Age Respondents = 39,040

6. Respondent Group Respondents: Solicited through local media company websites. Total Number of Consumer Respondents: 39,040 Total participating media properties: 125 properties in 114 markets Conducted: Via online survey from August 1 – September 9, 2011 Incentive: $500 American Express gift card. Originating Media Site:Newspaper: 46% of respondents Radio: 44% of respondents TV: 10% of respondents

7. The Big Aha • Consumers LOVE deals •  44% of respondents have signed up for 4 or more email lists • 91% said they’re likely to register for other deals sites • Advertisers are getting results, and more may jump in • 81% have NOT yet participated in a deals program yet. • The average deal brings 86 new customers to a business, and of those, 20 become higher-value repeat customers

8. Coupons… Coupon Use refers to a free means of saving money on a product or service, versus Deals Certificates that require an upfront payment as a means to saving.

9. Coupon Redemption for Past 2 Years Source question for this chart: “Thinking of the coupons that you have actually redeemed in the last two years, where did you find those coupons?” Respondents = 38,089

10. Age Plays a Factor In Coupon Usage Source question for this chart: “Thinking of the coupons that you have actually redeemed in the last two years, where did you find those coupons?” Respondents = 38,089

11. Frequency of Coupon Usage Source question for this chart: How often do you use coupons? Respondents = 29,594

12. Good for Marketing! Use Coupons To … Source question for this chart: Do you use coupons to… Respondents = 37,924

13. Number of Coupon Email Lists Registered Mean Number 3.6 Source question for this chart:  How many different email lists have you signed up for to get coupons, special offers, etc.? Respondents = 33,439

14. Overall Email Registration Average 3.6 Lists Age Differences Gender Differences Source question for this chart:  How many different email lists have you signed up for to get coupons, special offers, etc.? Respondents = 33,439

15. Desired Frequency of Coupon Email Alerts Source question for this chart:  How frequently do you prefer that any single source send you an email alerting you to coupon offers? Respondents = 26,382

16. Coupon Emails Received On Daily Basis Mean Number 3.3 Source question for this chart:  On average, how many coupon emails do you get on a daily basis? Respondents = 33,476

17. Desired Frequency of Coupon Email Alerts Good for Strategic Planning! Source question for this chart:  How frequently do you prefer that any single source send you an email alerting you to coupon offers? Respondents = 26,382

18. Younger/Female Get More Email Coupons Age Differences Gender Differences Source question for this chart:  On average, how many coupon emails do you get on a daily basis? Respondents = 33,476

19. Coupons Redeemed for Local Business Source question for this chart:  Have you ever printed and redeemed an online coupon for a local business? Respondents = 37,813

20. Seek Online Coupons Before Purchasing Good for Marketing! Source question for this chart: When buying a product or service, how frequently do you go online to look for coupons before actually purchasing from a store or business? Respondents = 19,085

21. Seeking Online Coupons Before Purchase By Demographics Source question for this chart: When buying a product or service, how frequently do you go online to look for coupons before actually purchasing from a store or business? Respondents = 19,085

22. Coupon Usage Compared to a Year Ago Source question for this chart:  Compared to a year ago, are you using coupons from any source more/less/the same than you did a year ago? Respondents = 32,291

23. Opportunity For New Local Offerings Good for Strategic Planning! Source question for this chart: If you found out about a new coupon service offering discounts for local merchants in your area, how likely is it that you would register for it? Respondents = 32,291

24. Now, Deals Question: 28

25. Deals Deals are the kind of programs that require an upfront purchase of a certificate in order to save money on a product or service.

26. Registered for Deals Certificates Sites Source question for this chart: Which, if any, of the following have you ever registered for in order to purchase a Deals Certificate? Respondents = 38,089

27. Women Are Into Deals Craze Source question for this chart: Which, if any, of the following have you ever registered for in order to purchase a Deals Certificate? Respondents = 38,089

28. Frequency of Checking For Deals Checking Emails: 7 in 10 check the emails daily Checking Website: 2 in 10 check the website daily Source question for this chart: How often do you check a website for Deals Certificate offerings? Respondents = 31,136

29. Desired Frequency for Deals Email Good for Strategic Planning! Source question for this chart: How frequently do you prefer that any single source send you an email alerting you to Deals Certificate offers? Respondents = 21,103

30. Number of Deals Received Daily Mean Number 3.3 Source question for this chart:  On average, how many different Deals Certificate emails do you get on a daily basis? Respondents = 31,246

31. Purchased Daily Deals Sources Source question for this chart: Have you ever actually purchased a Deal Certificate from any of the following? Respondents = 30,501

32. Impact of Age on Purchase Site Source question for this chart: Have you ever actually purchased a Deal Certificate from any of the following? Respondents = 30,501

33. Media Source for Deal Purchase Source question for this chart: Have you ever actually purchased a Deal Certificate from any of the following? Respondents = 30,501

34. Deals Purchased in the Past 6 Months Mean number 4.4 Source question for this chart: In the last six months, how many Deals Certificates have you purchased, from any deal certificate source? Respondents = 27,682

35. Factor on Number of Purchased Deals Gender Differences Age Differences Source question for this chart: In the last six months, how many Deals Certificates have you purchased, from any deal certificate source? Respondents = 27,682

36. Purchase Deals Certificates To… Good for Marketing! Source question for this chart:  Do you purchase Deals Certificates to...  Respondents = 27,356

37. Opportunity for New Daily Deals Site Good for Strategic Planning! Source question for this chart: If a new Deals Certificate website was offered in your area, how likely is it that you would register for it? Respondents = 31,398

38. Top Deals Categories for Consumers Source question for this chart: From which type of businesses are you most interested in seeing Coupons or Deals Certificates? Respondents = 39,011

39. Most Interested Categories

40. Advertiser RESULTS

41. Respondent Group - Advertisers • Respondents: Solicited through local media company client bases • Total Number of Advertiser Respondents: 729 • Total participating media properties: 20 • Conducted: Via online survey from August 8 – September 9, 2011 • Incentive: $500 American Express gift card. • Originating Media Sites: • 13 Newspaper • 5 Radio • 1 TV • 1 Unclassified

42. Advertiser RESULTS Advertiser Coupon Usage Source question for this chart: Are Coupons part of your regular advertising and marketing strategy? Respondents = 729

43. Advertiser RESULTS New Coupons Offered Source question for this chart: If Coupons are part of your advertising strategy, how often do you present a new coupon/offer? Respondents = 343

44. Advertiser RESULTS Reasons Coupons Are Used Source question for this chart: If Coupons are part of your strategy, are they for ... Respondents = 329

45. Advertiser RESULTS Coupons and “Deals” One in five of responding advertisers reported diverting money from other models into coupons. 19% of responding advertisers participated in deal programs Source question for this chart: Have you participated in a "Deal of the Day" or similar program where consumers purchase a certificate at a discount for your business? Respondents = 731 Source question for this chart: Over the last year, have you diverted marketing dollars away from other types of advertising in order to offer coupons? Respondents = 345

46. Advertiser RESULTS Deals Programs Used

47. Advertiser RESULTS Satisfaction with Daily Deal Sites Good for Strategic Planning!

48. Advertiser RESULTS Marketing Strategy Drives Choice Source question for this chart: What is the main reason you chose the particular Deals program(s) provider you use/used? Respondents = 240

49. Advertiser RESULTS Measuring Deals Success Source question for this chart: What factors are most important in evaluating your success using a Deals program? Respondents = 226

50. Good for Marketing! Advertiser RESULTS Positive Results….