2006 arizona republic
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Transcript of 2006 arizona republic
1
Building Readership 2006
Targeting our Best Customers
Prepared by: M. Harris, V. Thomas
& G. Bright
2
A Generation is composed of people whose common
location in history lends them a collective persona
Generation Birth Years Age Entering 2006 Famous Man Famous Woman
GI /Depression Era 1901-1924 81-105 John Kennedy Clare Booth Luce
Silent /Greatest Generation 1925-1945 60-80 Colin Powell Gloria Steinem
Boomers 1946-1964 41-59 Steven Spielberg Oprah Winfrey
Gen X 1965-1981 25-40 Michael Jordan Jodie Foster
Gen Y /Millennials 1982-2002 <25 Frankie Muniz Mandy Moore
3
Why target Baby Boomers?…Significant Purchasing Power
They control over half the discretionary income in the U.S. but receive less than 10% of all ad messages
Between 2005 and 2010, adults 45 and older will outspend younger adults by $1 trillion
70% the nation’s net worth is in their hands
78 million strong, Baby Boomers are the largest, most influential, best educated and most affluent generation in American history
Locally median household income is 40% higher than the market average
Sources: U.S. Census, U.S. Federal Reserve Board,
Ageless Marketing David Wolfe 2003, 2005 MA Study
4
The second reason: High Growth
Every 7.5 seconds someone in America turns 50. 10,000
Boomers turn 50 every day
In 2006, the U.S. Census Bureau estimates that Baby
Boomers will turn 60 at the rate of over 7,900 every day and
330 every hour
In Arizona, the 50-65 age segment will grow by 83% between
2000 and 2020 while 25 to 44 segment is projected to grow
32%
They represent a significant part of our core products yet
there is significant opportunity to grow
Sources: U.S. Census,2005 Audience Aggregation Study
5
Demographics & Geography
How important are Baby Boomers to the market?
What makes them unique?
Where can you expect to find them?
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Baby Boomers –1 out of 3 Phoenix adults and 1
out of 3 area head of households
40-59
33%
18-39
45%
60+
22% 40-59
34%
18-39
43%
60+
23%
Occupied Households
(1.4 million)
Adult Population
(2.8 million)
Source: 2005 Audience Aggregation Study,
Maxx Database
7
Baby Boomer Republic Subscribers: More Affluent
Even Better Educated: 59% have a college degree or higher vs. 46% for all Baby Boomers
Even Higher Income: Median HH income of $81,100 vs. $65,300 for all Baby Boomers
Same Low Presence of C<18: 63% do not have children <18—equal to the market and Baby Boomers
Lower Hispanic Penetration: Only 9% of subscribers are Hispanic vs.15% of all Baby Boomers
Greater Homeownership: 90% own their home vs. 83% of all Baby Boomers
Even Less Likely to Move: 78% been in their homes >3 years vs. 73% for all Baby Boomers
Source: 2005 Audience Aggregation Study
8
Readership
9
Source: General Social Survey 1972-2004
Because While Nationally Readership Has Fallen…
Percent Reading Newspapers Every Day
Source: General Social Survey 1972-2004
20%
30%
40%
50%
60%
70%
80%
1972
1975
1977
1978
1982
1983
1985
1986
1987
1988
1989
1990
1991
1993
1994
1996
1998
2000
2002
2004
10
Baby Boomers Readers Were Reading in Greater Numbers When
They Were Young Adults and Erosion Has Been More Gradual
Source: General Social Survey 1972-2004
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1972 1977 1982 1985 1987 1989 1991 1994 1998 2002
Greatest Generation Baby Boomers Generation X Generation Y
11
And over the past 4 years Boomer readership both
continues to lead the market and been more stable …
Source: Scarborough
Boomer Daily
Boomer Sunday
52.0%
36.0%
42.4% 42.0%
44.0%
55.1%
46.5%
55.0%
20%
25%
30%
35%
40%
45%
50%
55%
60%
2001 2004
12
But its essential to find more of our best customers
because only 1 out 4 adults will reading the daily in 3 years
if we do nothing…
55.1%
42.4%
28.9%
37.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
2001 2002 2003 2004 2005 2006 2007 2008
Source: Scarborough, Internal Estimate
13
Circulation Trends
• What is our current subscriber penetration of the target group?
• Where are they?
14
Household penetration of the target exceeds the market by
29% but still an opportunity to acquire more than 66% of
Baby Boomer households
Subs,
305,639,
24%
Ex Subs,
656,263,
51%
Never
Subs,
323,058,
25%
Market Baby Boomers
Subs,
139,647,
31%
Ex Subs,
216,402,
47%
Never
Subs,
101,785,
22%
Source: Maxx Database
15
High Retention, harder to acquire
"Shy Beautiful Girls"
"Hard to get to know…but worth the effort."
Great Retention, and easy to acquire
"Shining Stars"
"Your Straight A Students"
Don't retain well but easy to acquire
"Problem Children"
"Worth Keeping, but need some love"
Don't retain well, and hard to acquire
"Misfits and Market Dogs"
"A dollar spent is a dollar wasted"
Low Ability to Attract High
Lo
w
A
bili
ty t
o R
eta
in
H
igh
Circulation Segmentation - Acquisition / Retention Grid
16
Circulation Segmentation – Opportunities by Quadrant
High Retention, harder to acquire
"Shy Beautiful Girls"
"Hard to get to know…but worth the effort."
Great Retention, and easy to acquire
"Shining Stars"
"Your Straight A Students"
Don't retain well but easy to acquire
"Problem Children"
"Worth Keeping, but need some love"
Don't retain well, and hard to acquire
"Misfits and Market Dogs"
"A dollar spent is a dollar wasted"
Low Ability to Attract High
Lo
w
A
bili
ty t
o R
eta
in
H
igh
Quadrant Size: 108,956
Subscribers: 31,305 (29%)
Opportunity: 77,651
Quadrant Size: 520,247
Subscribers: 189,815 (36%)
Opportunity: 330,432
Quadrant Size: 247,820
Subscribers: 42,824 (17%)
Opportunity: 204,996
Quadrant Size: 407,937
Subscribers: 41,095 (10%)
Opportunity: 366,842
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= Mature = Younger Years = Family Years
Profile of Subscribers by Lifestage/Quadrant
18
= Affluent Empty Nests = Conservative Classics = Cautious Couples = Striving Seniors
Today’s Focus: Mature Years (Our Core Subscribers)
19
Overall Market Size by PRIZM/Lifestage
= Mature = Younger Years = Family Years
20
= Mature = Younger Years = Family Years
Overall Market Size by PRIZM/Lifestage with Subscribers added
21
= Mature = Younger Years = Family Years
Overall Market with Ability to Attract index Added
Lo
w
Ab
ility
to
Att
ract
Hig
h
22
Attraction index color coded by Quadrant
Lo
w
Ab
ility
to
Att
ract
Hig
h
-
50.00
100.00
150.00
200.00
250.00
50 60 70 80 90 100 110 120 130
Low <------------------------------------------- Ability to Attract -----------------------------------------> High
Lo
w <
---
----
----
----
-- A
bili
ty t
o R
etai
n -
----
----
----
----
> H
igh
Don't retain well but easy to acquire"Problem Children"
"Worth Keeping, but need some love"
Don't retaing well, and hard to acquire"Misfits and Market Dogs"
"A dollar spent is a dollar w aisted"
Great Retention, and easy to acquire"Shining Stars"
"Your Straight A Students"
High Retention, harder to acqure"Shy Beautiful Girls"
"Hard to get to know …but w orth the effort."
23
FINAL TARGET GROUPS
Lo
w
Ab
ility
to
Att
ract
Hig
h
-
50.00
100.00
150.00
200.00
250.00
50 60 70 80 90 100 110 120 130
Low <------------------------------------------- Ability to Attract -----------------------------------------> High
Lo
w <
---
----
----
----
-- A
bili
ty t
o R
etai
n -
----
----
----
----
> H
igh
Don't retain well but easy to acquire"Problem Children"
"Worth Keeping, but need some love"
Don't retaing well, and hard to acquire"Misfits and Market Dogs"
"A dollar spent is a dollar w aisted"
Great Retention, and easy to acquire"Shining Stars"
"Your Straight A Students"
High Retention, harder to acqure"Shy Beautiful Girls"
"Hard to get to know …but w orth the effort."
24
Source: Maxx Database
Top 50 zip codes =
90,966 Households
25
High income Baby Boomer Opportunity
(by ZIP code)
26
The End