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Globe Recognition Program:

Advertiser Opportunities within

Subscriber Loyalty Programs

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Overview:

Loyalty Programs Today

Consumer Expectations

Existing Newspaper Programs

The Globe Recognition Program

Advertising Client Benefits

Incremental Revenue Opportunities

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Loyalty Programs Today:

There are hundreds of them.

They all want to be top of mind and have the most valuable card in your wallet.

Generally consumers are required to spend, collect and redeem.

It’s difficult, and can be expensive to develop a strong enough brand to win consumer awareness, commitment and participation as their first choice for loyalty.

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Consumer Expectations:

A program that’s easy to understand and use.

Significant value in exchange for their time and/or money.

Compelling and interesting rewards and offers.

Regular, permission based worthwhile communication pushed

to them.

Strict compliance to privacy and ethical practices.

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Existing Newspaper Programs:

Many existing programs may well be serving some of the needs of the newspaper.

However the following points should be reviewed:

– How is the program measured?

– Are there business objectives beyond the retention of subscribers?

– Can the program effectively deliver access to a target audience that is highly desirable for advertising clients?

– Can the program deliver incremental revenue without threatening or cannibalizing current business?

– Does anyone “own” and manage the cross-departmental function of the loyalty program?

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The Globe and Mail

Recognition Program

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Program Overview

Launched in 2004 as a test program and has been successful from a circulation retention and advertising perspective.

Well over 100 offers are currently available for fully paid, full week subscribers on the recognition web site.

Categories include; Golf, Ski, Spas, Travel, Entertainment, Dining etc.

Html email messages introduce special opportunities approximately 1-2 times per week.

The program represents a unique opportunity to provide advertisers with direct access to an elite segment of the readership audience that they reach through traditional advertising.

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Globe Recognition

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Offers must be high value, unique and exclusive.

All offers are communicated through The Globe, no lists are rented and no

subscriber data is shared.

Rather than simple discounts, we prefer to develop unique experiences and

opportunities that are normally unavailable to the general public.

Bundling multiple merchant offerings is a viable option.

The best offers serve advertiser objectives as well as those of the

Recognition Card Program.

How Does the Program Work?

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Sample Offers

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Offers: Concert Pre-Sales

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Proprietary Client Retail Events

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Offers: Interactive Participation

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The Audience

As of July 2006 there were over 65,000 registered Globe Recognition

cardholders. This is a registration rate of over 50% which is very high

in newspaper loyalty programs.

The demographic profile of the cardholders represents the top segment

of The Globe’s audience, even higher than that of the subscriber base.

The program was rolled out in Ontario as an initial test and will be

expanded across additional Canadian markets through the balance of

2006.

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Membership Growth

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Jul -05 Aug-

05

Sep-

05

Oct-05 Nov-

05

Dec-

05

Jan-06 Feb-

06

Mar-

06

Apr-06 May-

06

Jun-06 Jul -06

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Households with Income over $150,000

Income Profile

100

211

489526

0

100

200

300

400

500

600

Ontario Globe Readers

Globe Subscribers Recognition Cardholders

Index

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Education Profile

Households with University Education

100

163179

186

0

100

200

Ontario Globe Readers

Globe Subscribers Recognition Cardholders

Index

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Advertising Partner Benefits

Reach an exclusive and targeted market This is the only direct marketing channel available to reach The Globe

and Mail’s core audience as a compliment to in-paper advertising.

Increase customer traffic The direct call to action can direct cardholders to purchase and store

visits as a supplement to their advertising campaigns.

Secure web environment The Globe and Mail Recognition program operates through a

professional, private, password-protected web site.

Integration Integrate direct marketing and ROP advertising through a relationship

with The Globe and Mail.

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Incremental Revenue Opportunities

Leveraged Spending Commitments to participate

Html messaging at a cost per thousand

Revenue sharing from events

Category and Event Sponsorship

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Final thoughts

Our subscribers are receiving the recognition they deserve and

retention is significantly higher with Recognition Members

Advertisers get access to the most affluent and well educated

audience that the Globe and Mail has, as an incremental opportunity to

their current commitment.

The program is very flexible and will continue to evolve based on

subscriber direction and advertisers input.

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Thank You

Any Questions?

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Appendix:

Additional Offer Examples

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Base Level Offers: Examples

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Base Level Offers: Examples

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Base Level Offers: Examples

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Advertiser Special Event and Offer Examples

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