It Begins With You

What are your challenges?

What are your opportunities?

How can we help?

Channel Proliferation =

Audience Fragmentation

From 3 TV networks to 100+ channels

From 18,000 to 45,000 magazine titles

From 18 to 40+ local radio stations

From 0 to 50+ million internet sites

From 3 TV networks to 100+ channels

From 18,000 to 45,000 magazine titles

From 18 to 40+ local radio stations

From 0 to 50+ million internet sites

Managing Choices

• 20,200 Sites forDog Yarlmulkes

• 85,100,000 listingsNew York Weather

50 Million Websites!Which ones are the best for you?

• What content is your audience most interested in?

• What media brand does your audience trust?• Where can you connect with your audience’s

daily life? • Where can you move your audience to action?

CommunityConnection

ContentRelevance

Customized Targeting/Messaging

Consumer Activation

Our Value Proposition

CommunityConnection

Our Value Proposition

All Business Is Local

"Successful brands are ones that have been able to turn the local market place into the local marketing place.”

- AllAboutBranding.com

Our Advantage: A Triple Threat

+ +Local newspaper

brands, local content & local audience

(nobody else has all three)

Most creative adjacency to best locally produced

content on the Web

Ability to deliver message at the

center of the local community

conversation

Accelerating Growth

Source: Nielsen Net//Ratings

• Unique visitors to newspaper web sites totaled 63.1 million in December ’07 – 12.6% increase over the same period last year

• Page views increased by 7% in the last quarter of 2007 over the same period last year

• 40% of all active internet users visited newspaper websites in October 2007

Audience Growing At Twice the Rate of The Internet

2.7

5.3

0

1

2

3

4

5

6

Q1 2007 InternetGrowth

Q1 2007 NewspaperWeb Site Growth

Source: //NetRatings NetView Custom Analysis 2007

Percent Growth In Unique Visitors, Q1 06 to Q1 07

Newspapers Own The # 1 Local Website in 24 of Top 25 Markets

Top Local Sites In Top 10 Markets: November 2006• New York – NYTimes.com, NJ.com Newsday.com• Los Angeles –LATimes.com• Chicago – ChicagoTribune.Com• Philadelphia – Philly.com• Boston – Boston.com• San Francisco – SFGATE.com, MercuryNews.com• Dallas – DallasNews.com • Washington DC – WashingtonPost.com• Atlanta – AJC.com• Houston – HoustonChronicle.com

Source: comScore data Age 2+ November 2006

We’re Attracting New Partners

News Content Accessed Several Times Monthly

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months

NP site visitors use the Internet in general for various types of local information.

NAA/MORI Power Users Study, 2006

Sources Used for Local News & Info Past 6 Mos.

Base: Online respondents who got local news online in past 6 months; Telephone non-NP Web site users who got local news online in past 6 months

NA

NAA/MORI Power Users Study, 2006

Community Connection:Blog Traffic up 200%

US Unique Visitors to the Top 10 Online Newspaper Blog Pages, December 2005 and December 2006 (thousands and % change)

2005 2006 % Change

Top 10 Online Newspapers 27,371 29,940 9%

1, 217 3,776 210%Blog Pages within top 10 Online Newspapers

Note: from home and work locationsSource: Nielsen/Net Ratings, January 2007

CommunityConnection

ContentRelevance

Our Value Proposition

“As consumers become more sophisticated in navigating the Web, they are turning to trusted sources of news and information, like newspapers, instead of content aggregators or portals.”

- Shawn Riegsecker, President, Centro

“As this explosion of information follows, you will end up seeing a flight to quality and a relatively small number of sites which become the defining sites for information. Eventually people will say, "Enough is enough; there's too much crap out here." They'll want to see reputable brands emerge on the Internet.”

- Eric Schmidt, CEO, Google

63.6

66.3

44.9

47.8

64.7

27.3

69.4

0

20

40

60

80

100

120

140

Audie

nce

(M

illions)

Yahoo! MSN AOL Local

True “Content” versus “Technologies/Applications/Mail”

True Content

Technologies/Apps/Mail

MediaMetrix 2006 comScore NetworkTime Period: December 2006

Content Matters

Content Site Audiences Have Higher Engagement

0%

10%

20%

30%

40%

50%

60%

High Affinity Would DefinitelyRecommend

Very Satisfiedwith Content

Content Site

Portal Channels

Source: OPA Audience Affinity Study, 2002

42%

49%47% 47%

56%

36%

Online Publishers Association

2007 2003 Change

Content 47% 34% +37%

Search 5% 3% +35%

Commerce 15% 16% -5%

Communications 33% 46% -28%

Internet Users Spend Nearly ½ Online Time Visiting Content

37% share increase in past 4 years

Online Publishers Association 2007

The Most Trusted News Source

Local Newspaper Media

BBC Reuters Media Center

MediaMetrix 2006 comScore Network Time Period: December 2006

Top Rated Sports Content

Access Entertainment Information OnlineNP site users are far more likely than any other online users to get leisure-related info

online

NAA/MORI Power Users Study, 2006

Advertisers Embracing Local Content

CommunityConnection

ContentRelevance

Customized Targeting/Messaging

Our Value Proposition

Profile of an Online Newspaper User

– 91 percent recently

shopped online

– 89 percent recently bought

online

– 71 percent are online daily

@ work

– 64 percent recently checked

classifieds online

– 68 percent have home

broadband

Mean Age: 3952% College Educated

HH Income: $73,000

Hours Online/Week: 19

MORI Power Users Study 2006

Ad Targeting: Relevant

Messaging

Geography

Demographics

Content

Behavior

“Putting our shoe ads on Ilovewomensfeet.com is not my idea of contextual advertising.”

We Deliver Online Buying Power

FinancialMoney market acct (searched online) 170

Access brokerage account online 120

Applied for credit card online 114

AutomotiveAuto loan bought online 132

New vehicle bought in last 6 mo. 117

Two autos owned by HH 108

Tech Savvy/Power UsersFirst among friends to buy new gadgets 122

Research before major online purchase 130

Internet easiest way to shop 117

Entertainment & Leisure ActivitiesAttended pro sports event last 6 mo. 135

Bought movie tickets online last 6 mo. 128

Bought DVD/VHS movie online last 6 mo. 115

Travel16-20 business domestic plane trips 195

7+ international trips past 3 yrs. 137

7-10 personal domestic plane trips 138

1. ComScore AIM, Winter 2006

Index Index

Index Index

Index

Q2. In the past 12 months, in which of the following ways have you shared your opinion?

*Total = Crossover Readers + Newspaper Webbies Only in equal proportions

Newspaper Website Users, are more likely to self-describe as 'Influencers' who share their opinion with others.

A/D B/C/D – Statistically higher at 90% confidence level

47%

Influencers

Non-Influencers

Total Respondents: (1000) (500) (500) (501)

57%38% 31%

CD

D

Non-Newspaper

Website Users

D

Newspaper Web Only

C

Total*

A

Crossover Readers

B

Newspaper Website Users

D

Women Use Newspaper Websites

% Composition

Index All Online

Age 25 to 34 24% 136 116

35 to 44 24% 124 118

HH Income $75,000 + 49% 147 131

Education College Graduates

21% 154 132

Home Ownership

Home Value $300K +

33% 122 118

Scarborough Engagement 2005

Women More Likely to Shop Online

12%

14%

16%

23%

32%

Air or hotelreservations

Event tickets

Kids clothing

Cell phone

Furniture/homefurnishings

Scarborough Engagement 2005

Hispanics Use Newspaper Web Sites

% Composite

IndexAll

Online

35-44 Years of Age

25 111 101

Earn $75K +

43 194 164

Graduated College

16 242 184

Home Value300K +

31 151 143

Scarborough Engagement 2005

Men Use Newspaper Websites

% Composite

Index All Online

HH Income $75K + 59 142 127

Education College Graduate

23 156 134

Home Value

$300K + 39 130 119

Age 35-44 26 127 112

Scarborough Engagement 2005

We Deliver the At-Work Audience

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Weekday Visitor Traffic by Hour

MORI 2006

CommunityConnection

ContentRelevance

Customized Targeting/Messaging

Consumer Activation

Our Value Proposition

Newspaper websites have credible advertising. Only store sites are similarly credited with believable ads.

A/B/C/D/E/F/G – Statistically higher at 90% confidence level Base: Website visitors

Q6. For each of these listed statements, please indicate which of the following types of websites you associate with that statement.

*Total = Crossover Readers + Newspaper Webbies Only in equal proportions

Websites’ image association with advertising content

Newspaper Website Users Non-Newspaper Website Users

Total Crossover Readers

Newspaper Webbies

Only

Social Network Websites

Special Interest

Websites

Search Engines/ Portals

Shopping/ Store

Websites

Average of Other Websites

% A

% B

% C

% D

% E

% F

% G

%

Have credible advertising 37 DEF 42 C-F 33 DEF 17 26 D 25 D 37 DEF 26

Have advertising I notice 35 40 CEF 30 34 31 32 44 AC-F 35

Have advertising that helps me choose what to buy 21 D 26 CD 16 13 24 CD 23 CD 46 A-F 27

Total Respondents: (1000) (500) (500) (185) (299) (351) (321)

*

Shopping Is A Local Experience

70% of U.S. households now use the Internet as an information source when shopping locally for products and services.¹

For every dollar spent online, consumers are influenced by the web to spend another $6 offline.²

1. Kelsey Group, March 2005

2. Jupiter Research, 2004

Newspapers speak directly to consumers where they live in a

contextually relevant environment

Newspapers speak directly to consumers where they live in a

contextually relevant environment

Newspaper Website Users Act On Ads

Implication: More Involved, More Engaged Readers with Advertising Information

Q.1 Which of these tasks or capabilities have you used on the Internet? Base: 710 Newspaper Site Visitors

Source: Scarborough 2007

Items Purchased After Shopping Online

Base: Online respondents; Telephone respondents who did not visit a NP Web site in the past 6 months

Purchased Online Purchased Offline

Past 6 Months

Online Newspapers Lift Ad Campaigns

Source:. Dynamic Logic MarketNorms database with NAA analysis,Q1 2006 data

8%-34% Increase inPurchase

Intent

Weather Widgets

•It gives users control to display weather from any valid zip code in US

•It automatically checks for and displays any severe weather alerts

•Up-to-date radar image displayed in most versions

•Sponsorship opportunity available as both a text link or graphic link

Newsletters: “Niche” Audiences

Mobile: Advertising Opportunities

Web BrowsingSponsor Content Channels: News,

Business, Sports, Travel

SMS*/Text MessagingAdvertiser branding for: News Alerts, Polls,

Quizzes and Promotions

*SMS: Short Message Services

Ad Types:

Data capture

Click to call

Store locator

Coupon

Contests

Sweepstakes

Trivia

Tune-in

PBP – On-Demand Text Alerts

•It gives users access to important, relevant and timely hurricane information

•It is easy to learn how to use

•Sponsorship opportunity integrated into message.

•PBP sold a sponsorship to Publix for $40k

Email: Advertising Opportunities

Leveraging the Power Of the Print/Online Package

Online and Offline Brands Complement Each Other% of consumers that agree with the following questions

70%

9%

0 20 40 60 80

Site and OfflineProperty

ComplementEach Other

Site and OfflineProperty

Compete forMy Attention

Online and Offline Brands work togetherto meet consumers’ needs

Source: OPA Online Multi-channel media brands – Attitude & Usage Study. Conducted in Partnership with: Frank N. Magid Associates, Inc.

Dual Users Outnumber Web Only UsersPenetration of local newspaper

(print and online)*

100% = 132 million adults** 100% = 87 million

34 66

63

11

26

Read local newspaperin print only

Read local newspaper online site

Read local newspaper both in print and on-line

* Those who read local newspaper in print or on-line in the last week** Adults 18+ on-line

Source: McKinsey Media and Entertainment News Survey, June 2006

Source:, MORI Research, Base: Online respondents

Reasons Use Newspaper Web Sites in Addition to Print

Newspaper & Website Readers are Extraordinarily Powerful

ConsumersTarget Heavy

NewspaperHeavy Newspaper & Heavy Internet

HHI: $75K+ 117 161

HHI: $150K+ 130 189

College Grad+ 123 180

Occupation: Management

155 171

Portfolio Value: $150K+

158 199

Source: MRI Doublebase, Base = U.S. Adults 18+ Note: Heavy media user = upper half percentile of usage of specific media

The Most Powerful Consumers Are Heavy Users of Newspapers and the Internet

Source: Newspaper National Network LP, 2006 MRI Doublebase, Base= Top 3 Market Adults 18+

HHI: $100K+ 166 162 147 128

HHI: $150K+ 188 169 148 130

Occupation: Management 173 167 166 135

3+ Domestic Trips 149 141 134 116

Uses financial planning/money mgmt services 147 127 120 107

Heavy Newspaper&

Heavy Internet

Target:Heavy Magazine

& Heavy Internet

Heavy Radio&

Heavy Internet

Heavy Total TV&

Heavy Internet

Brand Equity Extends Across Formats

% of consumers that agree with the following questions

0% 20% 40% 60% 80% 100%

More Reliable

MoreTrustworthy

OnlineOffline

Both Online And Offline No Difference

Source: Newspaper National Network, OPA Online Multi-channel media brands – Attitude & Usage Study.

Conducted in Partnership with: Frank N. Magid Associates, Inc.

Web Adds to Newspaper Reach In All Major Dayparts

0%

20%

40%

60%

80%

100%

Newspaper-Morning Newspaper-Noon Newspaper-Afternoon

Newspaper-Evening

44%

Reach for Newspapers + Web vs. Newspapers alone

Source: Online Publishers Association, “Day In the Life” Study, 2006

44%

46%

75%

17% 11

%12%

39%

All Business Is Local

• "Successful brands are ones that have been able to turn the local market place into the local marketing place”

- Marc de Swaan Arons