LIFE BEYOND A PRINT CIRCULAR

We’re ShopLocal

We’re ShopLocal

• ShopLocal uses innovative digital marketing techniques to connect shoppers with local retailers.

• Key Points:– Pioneered the Use of Online Circulars– Developed first of its kind technology platform for digitizing and

versioning, local DMA print circular data– 375+ Million Visits with 5+ Billion Page Views Annually to

SmartCircular sites– Founded in 1999 and headquartered in Chicago, IL– Owned by Gannett Company, and partnered with PointRoll

ShopLocal is Institutionalized in Retail

ShopLocal is Institutionalized in Retail

THREE KEY TRENDS

9.2.07

• Newspaper circulation has decreased 20 percent over the past decade and is continuing to trend downward1

• Internet usage has increased 80 percent over the past decade and is continuing to trend upward2

• Against traditional media, the Internet possesses 42 percentof the available audience during primetime (7-10pm)3

1 Source: Newspaper Association of America2 Internet Usage and World Population Statistics are for March 31, 2009. 3 Source: National People Meter, comScore Media Metrix 2007

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• Shoppers research and shop onlinebut buy from local store

• Driven by two primary shopping needs: efficiency and convenience

1 BIGresearch, Simultaneous Media Usage Survey, 12/062 Forrester Research “The State of Retailing Online 2008: Marketing Report, May 2008

Average number of hours/month per userA

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Source: ComScore Media Metrics, April 2008

Digital Media is Fragmentedand Now a Website Alone is Not Enough

Digital Media is Fragmentedand Now a Website Alone is Not Enough

2.1 hours

17 minutes

29 hours

Differentiation

From

Competitors

In-Store

Pickup

Shopper

Personaliz

ation

Messaging

By

Segment

Leverag

ing

Leg

acy

Co

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In-Store

Conversion

Customer

CentricityCro

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Channel

Marketing

Best Buy Viper Forum

Best Buy Viper Forum

Global

Brandin

g

Buildin

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New Bra

nd

Manifesto

LeveragingLegacyContent

CustomerCentricity

CrossChannel

Marketing

In-StoreConversion

ShopperPersonalization

MessagingBy

Segment

SHOPLOCALSHOPPER PLANNING CENTER

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Planning Center• Leverage all assets to create a

personalized offer for shoppers• Virtual, Versioned circulars for local

control for merchandisers• Inclusion of content like Clearance

and Closeouts, Store Events etc.

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Planning Center Home Page

Planning Center Home Page

Planning Center Home Page

Planning Center Home Page

Category Subpage

Category Subpage

Product Detail Page

Product Detail Page

Product Availability Page

Product Availability Page

SHOPLOCALDIGITAL MARKETING SUITE

Personalized Weekly Ads Per Shopper

• THE RIGHT MESSAGE(personally relevant products)

• THE RIGHT TIME(when they're searching)

• THE RIGHT PLACE(where they're searching)

Banner Display Ads

Mobile Applications

TargetedLocal Search

Social MediaWidgets Circular Central

Video On Demand

SmartDelivery PlatformConnects with Shoppers at Key Touch Points,

And Drives Them to Local Stores.

Web Service – Data Availability

• Products & Attributes

• Functionality (page flipping, etc.)

Optimization

• Wisdom of Crowds

• User Centric Recommendations

SmartCircularVersioned, Local In-Store Promotions

Publisher Integration

• Demographic

• Behavioral

• Contextual

Wisdom of the Crowds Example

Wisdom of the Crowds Example

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Shoppers browse the circular ads on Sundayon a SmartCircular site

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All browsing activitiesare captured producing popularity rankings

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A PaperBoy banner ad is shown to a shopper on Monday with crowd based rankings

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All interactions within the ad are captured and used tofurther optimize the ad

5As time passes intra-week, theoptimization rankings continue toupdate to improve ad unittargeting and performance

PaperBoy: Circular Banner Ads

PaperBoy: Circular Banner Ads

• PaperBoy: dynamic, rich-media banner ads that display circular content.

• Includes enhanced features:– Wisdom of Crowds based Optimization– Easy-to-use banner interface– Dynamic refresh of content– Mapping and Shopping Lists – Printable Coupons

• Extensive distribution network including Yahoo, MSN, AOL, Newspaper.com, and many more.

– Consistent Category Tree– Behavioral, Demographic,

Contextual Targeting– Established Distribution

Business Models

Targeted Ad Serving

Targeted Ad Serving

6.28.07

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2. Later throughout the Y! network, he sees…

1. Tom Bankston of Los Angeles uses Yahoo to research home improvement products, and tools in particular

SmartAd User Experience

SmartAd User Experience

Search & Display Combination = Lift & Reach

Search & Display Combination = Lift & Reach

• Search is more effective than display• Display (banner) ads have greater reach than search• Combined search and display have the greatest impact

Local Search: Targeted Text Ads

Local Search: Targeted Text Ads

JCPenney Women's ApparelBuy Women's Clothing For Work &Play Affordably At JCPenney OnlineJCPenney.com

Current FutureJCPenney Women’s Apparel36 Specials Starting at $7.99, Thru Jan 17 in Indianapolis JCPenney.Weeklyad.com

Ad Copy

Landing Page

SmartDelivery: Mobile Applications

SmartDelivery: Mobile Applications

• Mobile Apps deliver weekly ad circular content to mobile devices.

• Attracts customers who are actively shopping and increases sales conversions.

• Includes enhanced features:• Cohesive Brand Experience• Easy-to-use navigation• Searchable Content• Dynamic refresh of content• Targeted and Personalized• Multiple Languages• Shopping Lists• Alerts and Reminders

SmartDelivery: Widgets

SmartDelivery: Widgets

• Widgets (desktop and web) deliver circular content to computer desktops and to websites like blogs, iGoogle and Facebook.

• Pushes weekly ad promotionsto a targeted audience of shoppers.

• Includes enhanced features:• Cohesive Brand Experience• Searchable Content• Dynamic refresh of content• Targeted and Personalized• Multiple Languages• Shopping Lists• Alerts and Reminders

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Social Media Text Ads

Best Buy’s Deal of the Week!

$349.99. TOSHIBA Intel® Celeron® Processor. See it at your local Best Buy store. Hurry, deal ends June 6!

Top-rated promotion fromBest Buy online circular

Shopping

Video On Demand Circulars

Video On Demand Circulars

• Video On Demand Circulars delivers circular ad content in a rich, video format.

• Self-selecting audience watches your channel on cable TV.

• Includes enhanced features:• Cohesive Brand Experience• Available on TV 24/7/365• Customizable navigation• Dynamic refresh of content• Geo-Targeted

Circular Central

Circular Central

• Circular Central, a distributable multi-retailer shopping comparison microsite that aggregates the online circulars for top retailers

• Circular Central can be co-branded and connected with www.Publisher.com website.

• Includes enhanced features:• Publisher Co-Branded• Cohesive Retailer Brand

Experience• Searchable Content• Dynamic refresh of content• Shopping Lists• Alerts and Reminders

QUESTIONS?

APPENDIX

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Personalization Engine

Recommended Items: User Centric Recommendations via ClickStream

Wisdom of the Crowds: Crowd Sourced Popularity Rankings

New vs. Returning Users: Able to Trigger Messaging, Features, Site Help

Related Items: Similar Item Attribute Based

Geographic & Language: Item Level + CMS Content