FILED: NEW YORK COUNTY CLERK 04/18/2013 NYSCEF DOC. NO. 4 INDEX NO. 651410/2013 RECEIVED NYSCEF: 04/18/2013 EXHIBIT 3 MRI AdMeasure Sharpening the Focus on Magazine Accountability Kathi Love President & CEO, Mediamark Research & Intelligence At last, the solution to a century-old problem “Half the money I spend on advertising is wasted; the trouble is I don't know which half.” John Wanamaker (1838-1922)a MRI AdMeasure could have told him (at least for his print campaigns). MRI AdMeasure is a new ad rating service that delivers comprehensive and reliable readership data for… every ad (national ads 1/3 page or larger) in every issue (over 3,100 issues a year). of every magazine (measured by MRI – close to 200 consumer titles). MRI AdMeasure’s syndicated ratings provide a powerful new currency for buying and selling ad space in magazines. Advertisers want more accountability for their ads. The ARF Advertising Measurement Model shows that simple exposure is not key to advertisers’ interests. Degree of relevance to advertisers Effectiveness measures Sales Response Ad-related purchase behavior Advertising Response Actions taken Advertising Persuasion How an ad influenced consumers who saw it Advertising Communication How well ad content is remembered Advertising Attentiveness Who paid attention to an ad Advertising Exposure Exposure to both vehicle and ad Vehicle Exposure Exposure to and attention paid to vehicle Vehicle Distribution Physical units by which ads are distributed Major media are moving toward ad accountability models. Internet Changed the ROI game by offering ad performance metrics such as click-through and cost-per-click. Television In 2007, Commercial Ratings (C3) became the adbuying currency for the $70 billion TV market, replacing 65 years of program ratings. Outdoor Moving from an “opportunity to see” metric to a “likelihood to see” metric. Starch: Setting the standard for print advertising effectiveness • Formed in 1922 by Dr. Daniel Starch • First to measure the impact of reader involvement with print advertisements and editorial in the U.S. • Today conducted through ongoing, weekly online surveys The evolution of print advertising effectiveness • In 2005, Affinity introduced its VISTA product to compete with Starch. VISTA moved the industry forward by introducing new measurement points, being first to go online and producing a syndicated study. • In 2008, MRI acquired Starch and made it comparable to VISTA. • In 2009, MRI enhanced Starch by tying it to MRI’s Issue Specific Study and The Survey of the American Consumer. • Starch was the first to bring conformed print ad ratings to market and the only company to deliver it on an issue-specific basis. This product is called AdMeasure. Now magazines have a fully developed ad ratings system Reliable metrics for quantifying the marketing value of specific print ads For every ad in every issue of every magazine, AdMeasure delivers: Readership metrics – the number of consumers who noted, read some or read most of an ad. Behavioral & attitudinal metrics – the number of consumers who took or an action upon seeing an ad, such as buying the product advertised or recommending it to others. Example of an MRI AdMeasure ad rating 10.1 million consumers noted the Aveeno ad in this issue of Vogue. Advertiser: Aveeno Magazine issue: Vogue, January 2009 Issue audience Noted score Noted audience 14,801,000 68% 10,065,000 Example of an MRI AdMeasure ad rating Over 4 million consumers took an action after noting the Aveeno ad in this issue of Vogue. Advertiser: Aveeno Magazine issue: Vogue, January 2009 Noted audience “Action” score “Action” audience 10,065,000 40% 4,026,000 AdMeasure puts magazines at the leading edge of accountability. AdMeasure responds to every ARF ad effectiveness measure. Degree of relevance to advertisers Sales Response Advertising Response Advertising Persuasion Advertising Communication Advertising Attentiveness Advertising Exposure Vehicle Exposure Vehicle Distribution Before AdMeasure After AdMeasure The Power of Three MRI leverages data from three powerful studies to produce AdMeasure. Survey of the American Consumer Issue Specific Readership Report MRI Starch Average audience Issue audience Ad readership Established 1979 Released 2006 Acquired 2008 The Power of Three AdMeasure Building Block 1. The Survey The most in-depth collection of statistically sound consumer and media research data in existence. For over 30 years, the industry standard-bearer for reliability and integrity in magazine audience market research. Provides a solid statistical footing for making credible audience projections for the Issue Specific Readership report. The Power of Three Building Block 2. Issue Specific Readership Report Measures every individual issue of every magazine - the only national survey of magazine readership at the issue level. Provides publishers with a level playing field for competing with other media. Online panels of 5,000 respondents per week. Data conformed to ensure reliable, accurate data. Provides issue audience metrics for AdMeasure. The Power of Three Building Block 3. MRI Starch Provides ad performance metrics for AdMeasure. MRI Starch’s roots go back to 1923. It is the originator of ad effectiveness research in the U.S. Key ROI metrics collected for every national ad one-third page or larger in every issue of every magazine measured. Who saw a specific ad, how much of it they read, who took a specified action after seeing an ad. The Power of Three In a nutshell… MRI Starch * Ad readership scores photo: flickr/naturelover2007 Issue Specific Audience estimates = MRI AdMeasure Print ad ratings Composition Targeting A proprietary algorithm used to weight the MRI Starch ad readership scores that come from Issue Specific and Survey of the American Consumer audience estimates. Composition Targeting Example: Correcting for online survey bias Too many infrequent readers in the survey sample can artificially lower “noted” readership scores. Too many frequent readers in the survey sample can artificially raise “noted” readership scores. To sum up… MRI AdMeasure is an accountability metric for print advertisements. AdMeasure reports on the number of consumers who saw or acted on a specific ad in a specific issue of a measured magazine. Only MRI can produce as comprehensive and reliable a report as AdMeasure – actual readership data for every national ad one-third page or larger in every issue of close to 200 consumer magazines. AdMeasure is the only service to provide reliable accountability metrics that focus on the performance and effectiveness of specific print ads and quantify their marketing value. MRI AdMeasure The first reliable ad ratings for consumer magazines MRI AdMeasure Sharpening the Focus on Magazine Accountability Kathi Love President & CEO, Mediamark Research & Intelligence