Changing Media Consumption

0

50

100

150

200

250

300

Online/Mobile +54% Television +5% Radio -6% Newspapers -33% Others -18%

2009

2012

• Television viewership remains a stable and consistent

choice for consumers.

• Online usage has grown by +54% over the past 4 years.

Minutes Per Day

Why We Know Our Advertising Is Important

• Two-thirds of buyers who purchase in-store access the internet

for furniture information.

Source: 2012 Google/Complete Retail Furniture Study, U.S. QRT1- Which of the following sources, if any, did you use to look for information on furniture?

Why We Know Our Advertising Is Important

Sources used to look for information on

furniture while shopping:

Consumer Online Behavior

• There is a direct correlation between website traffic

and in-store sales.

Online Advertising Goal

Drive qualified website traffic

=

Increased store traffic

=

INCREASED SALES

Tracking Traffic

• Tracking shoppers through your door is not

the only traffic you should be counting.

Promote Engagement with Pre-Roll Advertising

• :15 commercial

running as “forced”

viewing prior to video

content desired by

browser.

• An extension of TV-

sight, sound, motion

and a call to action.

• Relatively high click

through rate.

Online Video Consumption is Increasing

Source: eMarketer Comparative Estimates Aug. 2013

Digital Video Viewers

in millions

172

183

191

197 201

2012 2013 2014 2015 2016

Message Recall

• When online pre-roll advertising is combined with traditional

TV, it results in a 10% increase in consumer recall.

Source: Neilsen & IAB. A Comprehensive Picture of Digital Video and TV advertising, 2012

Message Recall

TV + Pre-Roll Video Ad

TV

30%

20%

Behavioral Targeting

• Surfing the web leaves a trail.

• We analyze the browsing history

to determine an interest in

buying furniture.

Behavioral Targeting

We buy the internet differently

than we buy traditional media.

Traditional Internet

• Demo driven,

i.e. W, 25-54

• “Shot gun”

approach

• Driven by browsing

history (web behavior)

• Allows us to find

“hand raisers”

• Delivers a one-on-one

impression

On Which Websites Do We Deliver the Message?

Our on-line buys appear across more than 500 websites

based on where the individuals we want to target browse.

These include:

marthastewart.com coolhouseplans.com epicurious.com

goodhousekeeping.com designsponge.com elledecor.com

apartmenttherapy.com freshome.com midwestliving.com

countryliving.com bhg.com hookedonhouses.net

housebeautiful.com kudzu.com casasugar.com

younghouselove.com traditionalhome.com curbly.com

• Plus local news and information websites

Sample Placements

Behavioral Targeting

- We bought the person,

not the page.

Why is Powell’s advertising on Yahoo Finance?

The person accessing this page visited:

- Elledecor.com

- Pinterest

- Coolhouseplans.com

- Trivetts.com

Geo-Targeting

• Delivery of our

message is

designated to a

specific

geographic

footprint.

• We can target as

specifically as a

single zip code.

A “Smart” Program

• The buys focus impressions to sites and

prospects that are most inclined to click

increasing the efficiency of the buy over time.

The HHL on-line program “learns” as it goes:

Getting Started – Our Recommendation

• Banners provide reach

(more gross impressions).

• Pre-roll provides greater

click through rates and

many of the same

advantages of broadcast TV.

A combination of banner ads

and pre-roll advertising.

Reporting

We monitor program performance

on an on-going basis.

Day(s) Campaign Tactic Impressions Clicks CTR% Avg. CPM Avg. CPC

8/21/13-9/2/13 Labor Day Animated Banner Ads 666,667 667 0.10% $3.75 $3.75

8/21/13-9/2/13 Labor Day Pre Roll Video 181,818 727 0.40% $13.75 $3.44

Campaign Total 848,485 1,394 0.16% $5.89 $3.59

CASE STUDIES

Geo-Targeting

GOAL: Deliver the message to an area that does not receive our regular advertising.

+9%

increase

+20.8%

increase

Performance Results

Anne Arundel Campaign 3/1/13 - 7/30/13

Web Site Visitors

2012 2013

Campaign Performance – Website Traffic

Compared to Previous 3 Weeks:

(10/11 – 11/5/2013) Compared to Same Period 2012:

(11/6 – 12/1/2012)

Visits:

Uniques:

Pageviews:

New Visits:

70.65%

79.93%

16.55%

9.07%

Visits:

Uniques:

Pageviews:

New Visits:

68.20%

69.93%

26.29%

6.65%

Media Campaign Run Dates: 11/6 – 12/1/2013

Pre-Roll and Animated Banners

How Much Are HHL Retailers

Spending On Online Advertising?

• Costs vary by market.

• Roughly 5 – 10% of traditional media spend

is being moved into online initiatives.

• We see this percentage increasing over time.