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Site Profile Study: Final Report

Intelligence for Advertisers

September 24, 2010

 Objectives & Research Design

Agenda

 Key Findings & Advertiser’s Roadmap  Site Visitation: Reasons & Frequency  Brand Consumption & Preferences
– Soft Drinks – Beer – Fast Food Restaurants – Full Service Restaurants – Auto/Truck Insurance – Motorcycle Insurance

 Client “Enthusiast” Segment Profiles

Objectives & Research Design .

uncover opportunities in each of the following categories for advertisers. – Soft drinks – Beer – Fast food restaurants – Full service restaurants – Auto/Truck insurance – Motorcycle insurance  Determine how brand usage/preference varies by – “Enthusiast” segment – Page visitation – Frequent site visitors .  Specifically.Objectives  Primary Objective: Understand who is visiting the client’s site in order to create compelling reasons for targeted advertisers to buy digital media on the site.

2010 – Five “Enthusiast” segments were created based on the primary reason site is typically visited  Differences among groups.  Study participants were recruited from the following pages – http://www.Research Design  Visitors to the site were randomly invited to participate in a survey following departure from the site domain.site/Section3 – http://www. e.site/Section2 – http://www.g. “Enthusiast” segments.site/ – http://www.  1050 completed interviews were obtained from July 20 to August 2. . were statistically tested @ 95% and 90% confidence levels.site/Section4  Participants completed a short 6 – 9 minute questionnaire.

Research Design: Recruitment Nearly 2/3 of study participants were recruited from the Homepage. Client Site Recruitment Pages Section 3 5% Section 2 7% Section 4 5% Section 1 20% Homepage 62% .

8% Q2a What is the main reason that you typically visit site? N=1021 . 21% Segment 1. 22% Segment 2. Other.Research Design: Enthusiast Segments (defined by “primary reason site is typically visited”) Segment 2 Enthusiasts account for 1/3 of site visitors followed by Segment 1 (22%). 34% Segment 3. and Segment 3 (8%). Segment 2 (15%). 15% Segment 4.

Key Findings & Advertiser’s Roadmap .

. 44% eat at McDonald’s.g.  Excepting Taco Bell. especially for… – Beer – Bud/Bud Light and Busch – Fast Food Restaurants – McDonald’s. and Pizza Hut – Full Service Restaurants – Applebee’s and Cracker Barrel – Big Box Stores – Wal-Mart – Auto/Truck Insurance – State Farm  Niche segments include… – Sprite – Segment 1 – Subway – Segment 2 (and is the preferred fast food restaurant overall by a 2:1 margin over McDonald’s) – Progressive – Segment 3  Page visitation creates several brand targeting opportunities – especially for Beer. e. 61% drink Coke. and 58% shop Wal-Mart. Key Findings  “Enthusiasts” standout as the most frequent targets. KFC. Client’s site should appeal to category leaders. frequent visitation is not a brand differentiator.

and Applebee’s. Enthusiasts prefer Subway. Soft Drinks Beer Fast Food Full Service Restaurants Client User’s love Bud. .Key Findings: What are the Most Popular Brands? Category leaders should advertise on the site. McDonald’s.

Big Box and Insurance category leaders should advertise on site.Key Findings: What are the Most Popular Stores & Insurance Companies? Overall. Stores Auto/Truck Insurance Motorcycle Insurance Client Site visitors prefer Wal-Mart and State Farm. Enthusiasts prefer Progressive .

Site Visitation: Reasons and Frequency .

What is the main reason that you typically visit site? N=1021 .Reasons for Visiting site Many visit the site for multiple reasons. Why are you visiting site today? N=1050 Q2a. but Reason 1 and 2 are the primary drivers. Why did you visit today…? What is the main reason you typically visit…? 54% 35% 22% 15% 7% 0% 1% 1% 0% 18% 1 1 2 3 4 2 44% 28% 16% 3 4 5 5 7% 6 6 7% 7 7 4% 1% 8 8 9 Q2.

small letters = significant @ 90% confidence level . with frequent visitation highest among Segment 2 and Segment 4 Enthusiasts. All site Visitors Sample Size (1050) Segment 1 (152) Segment 2 (354) Segment 3 (87) Segment 4 (230) A B C D E First Time At Least Once a Day 2 – 3 Times/Week 6% 37% bD 30% 12% 7% E 4% 3% 7% 30% 32% 17% 7% E 3% 3% 3% 41% BD 31% 11% 8% E 3% 1% 6% 26% 32% 10% 12% E 8% 6% d 4% 47% ABD 31% 11% 2% 3% 2% Once a Week 2 – 3 Times/Month Once a Month Less Than Once a Month Q1 How often do you visit site? CAPITAL LETTERS = significant @ 95% confidence level .Site & Segment Visitation Frequency More than 1/3 visit at least once a day.

Pepper is more popular with segment 3 and 4 Enthusiasts. Pepper A&W Root Mountain Beer Dew Sprite 7-Up Canada Dry Coke Pepsi Dr. Which brand do you like the best? N=618 = significant @ 95% confidence level = significant @ 90% confidence level . nearly twice as many Segment 1 Enthusiasts prefer Mountain Dew than average.Soft Drinks • While Coke is the clear favorite. Soft Drink Consumption 61% 36% Preferred Brand 43% Segments 3/4 36% Segment 2 25% 21% Segment 1 15% 24% 20% 20% 19% 16% 13% 8% 8% 4% 4% 3% Sprite 3% 7-Up Coke Pepsi Dr. • More Segment 2 Enthusiasts and Page visitors drink Sprite than average. Pepper Mountain A&W Root Canada Dry Dew Beer Q3a. Which of the following brands of soda or soft drinks have you purchased or drunk in the past month? N=660 Q3b. • Dr.

are for Segment 1. Sierra Nevada should advertise on the Section 4 page. Guinness should advertise on the Section 3 page. Sam Adams should place ads on the Section 1 and Section 4 pages.Beer • • • • Coors. Which of the following brands of beer have you purchased or drunk in the past month? N=440 Q4b. and especially Bud and Busch. Which brand do you like the best? N=335 = significant @ 95% confidence level = significant @ 90% confidence level . Beer Consumption Segment 1 47% Segment 2 30% Preferred Brand 11% 9% 14% 29% 27% Segment 2 31% 20% 20% 17% 14% 11% 7% 6% Segment 2 16% 7% 7% 7% 7% 5% 2% 2% 2% Bud/Bud Light Sam Adams Miller Corona Coors Guinness Sierra Nevada Michelob Amstel Busch Bud/Bud Light Sam Adams Miller Guinness Sierra Nevada Corona Coors Busch Michelob Amstel Q4a.

especially McDonald’s. 1% Pizza Hut 1% Long John Silvers 1% Dominos McDonald's Subway Wendy's Burger King Taco Bell KFC Arby's Pizza Hut Chick-Fil-A Carl's Jr. Segment 2 55% Restaurant Visitation 20% 2-3X/wk 30% Preferred Restaurant Segment 4 28% 44% 36% 27% 26% 25% Segment 2 28% 17% 16% Segment 2 17% 11% 11% 6% 5% 5% Dominos Segment 3 12% 12% 11% 4% Long John Silvers Subway McDonald's Wendy's 6% 6% 4% Segment 2 6% 2% Taco Bell Burger King Chick-Fil-A Arby's KFC 2% Carl's Jr. Subway is the preferred fast food restaurant by 2:1. KFC.Fast Food Restaurants • • • • Segment 2’s love fast food. and Pizza Hut. Which fast food restaurant is your favorite one? 796 = significant @ 95% confidence level = significant @ 90% confidence level . especially among Segment 4 Enthusiasts. More Segment 3 Enthusiasts prefer Chick-Fil-A. Which of the following fast food restaurants have you eaten at in the past month? N=1050 Q5a. Taco Bell is attractive to frequent site visitors (High ROI). Section 2 Page 57% Section 2 Page 29% Section 2 Page 24% Section 2 11% Q5.

Which of the following full service restaurants have you eaten at in the past month? N=1050 Q6a.G. Friday's Red Robin PF Changs Hooters Longhorn Red Lobster Applebee's Outback Steakhouse Cracker Barrel Olive Garden Chili's PF Changs Hooters Red Robin T.I. especially Applebee’s and Cracker Barrel. • Chili’s should advertise on the Section 4 page. Segment 2 25% Restaurant Visitation 9% Segment 2 18% Preferred Restaurant Segment 2 16% 17% 13% 8% Segment 2 20% 8% 7% 7% 6% 12% 10% 9% 9% 8% 8% 6% 5% 5% 4% 4% 3% 3% 3% 2% 2% Applebee's Chili's Olive Garden Outback Red Lobster Steakhouse Cracker Barrel Denny's T.G. Friday's Longhorn Denny's Section 2 Page 28% Section 4 26% Section 2 21% Section 2 Page 21% Q6.I. Which full service restaurant is your favorite one? N=509 = significant @ 95% confidence level = significant @ 90% confidence level .Full Service Restaurants • Segment 2’s love to eat at full service restaurants as well.

• Home Depot should advertise on the Section 1 page.Big Box Stores • Wal-Mart in particular is favored by Segment 2 Enthusiasts. Which store is your favorite place to shop? N=954 = significant @ 95% confidence level = significant @ 90% confidence level . Stores Shopped Segment 2 37% Segment 2 80% Segment 2 50% Preferred Store 18% 58% 46% 42% 12% 39% 32% 19% 18% 15% Segment 2 21% 11% 8% Segment 2 14% 8% 12% 6% 2% 1% Staples 1% K-Mart 1% Office Depot 0% Office Max Wal-Mart Home Depot Lowes Target Best Buy Staples Sears Office Depot K-Mart Office Max Wal-Mart Lowes Target Best Buy Home Depot Sears Section 2 Page 83% Section 1 Page 53% Section 4 Page 55% Section 2 Page 36% Q7. Which of the following stores have you shopped at in the past month? N=1050 Q7a. • Target should target advertising to Section 4 page visitors.

Which insurance company do you consider your primary auto and/or truck insurance carrier? N=662 = significant @ 95% confidence level = significant @ 90% confidence level . but AARP should place ads on the Section 2 page as well. • Progressive should target Segment 3 Enthusiasts.Auto/Truck Insurance • Segment 2’s clearly prefer State Farm. Insurance Company Segment 2 25% Primary Insurance Company Segment 2 38% 19% 12% Segment 3 22% 11% 10% Segment 1 7% Segment 1 11% 9% 9% 8% 6% 7% 6% 6% 5% 4% 2% 2% Travelers 5% 4% 4% 2% AARP 4% 2% 1% 1% Esurance Allstate GEICO Progressive USAA Famers Nationwide AAA Liberty Mutual Travelers AARP State Farm Prgressive Allstate CEICO AAA USAA Nationwide Famers Liberty Mutual Esurance Section 3 Page 21% Section 1 Page 9% Section 1 Page 13% Section 2 10% Q8. Please think about all the autos and/or trucks owned in your household? Which of the following companies do you have auto insurance with? N=1050 Q8a. • Segment 1’s prefer USAA.

Motorcycle Insurance • Progressive insures nearly 1 in 4. please indicate your primary insurance carrier. suggesting many are not insured. N=252 = significant @ 95% confidence level = significant @ 90% confidence level . and is especially popular with Segment 3 Enthusiasts. Insurance Company 39% Segment 3 35% 22% 14% 8% 5% 3% 2% 1% Prgressive State Farm GEICO Allstate Famers Nationwide AAA None of these Q9b. • 39% are insured with none of the 6 major insurance companies. Which company do you have your motorcycle insurance with? If you are insured with more than one company.

Site Visitor & “Enthusiast” Segment Profiles .

• Segment 2 Enthusiasts are more affluent.7k ABe 99% AB 1% 51 $83.7k B 74% 26% ACDE 57 ACDE $66.4k B Age Income Married 62% 67% e 64% 66% 58% CAPITAL LETTERS = significant @ 95% confidence level . All site Visitors Sample Size (1050) Segment 1 (152) Segment 2 (354) Segment 3 (87) Segment 4 (230) A B C D E Gender Male Female 93% B 7% CDe 52 c $81.1k 98% AB 2% 51 $89.Site & Segment Demographic Profile • Segment 1 Enthusiasts are older. small letters = significant @ 90% confidence level .5k B 96% B 4% 52 $82. with a far higher incidence of female visitors. lower income.

small letters = significant @ 90% confidence level . How often do you drink beer? CAPITAL LETTERS = significant @ 95% confidence level . How often do you drink soda or soft drinks? Q4.Soft Drink & Beer Consumption • 40% drink sodas at least once a day with no differences by segment. All site Visitors Sample Size (1050) Segment 1 (152) Segment 2 (354) Segment 3 (87) Segment 4 (230) A B C D E Soft Drinks At Least Once a Day Less Than Once a Day Never 40% 45% 15% 43% 45% 12% 38% 46% 16% 37% 49% 14% 37% 50% 13% Beer At Least Once a Day Less Than Once a Day Never 9% 63% B 28% D 9% 48% 43% ACDE 7% 66% B 27% d 14% c 68% B 18% 11% c 65% B 24% Q3. • Segment 1 Enthusiasts are the lightest beer drinkers.

small letters = significant @ 90% confidence level . All site Visitors Sample Size (1050) Segment 1 (152) Segment 2 (354) Segment 3 (87) Segment 4 (230) A B C D E Own a Motorcycle 24% BCE 17% 17% 79% ABCE 15% Among Owners… Own 1 Own More Than 1 49% 51% B 69% AcE 31% 49% 51% b 35% 65% AB 51% 49% Q9 Do you own a motorcycle? Q9A How many motorcycles do you own? CAPITAL LETTERS = significant @ 95% confidence level . far more Segment 3 Enthusiasts own a motorcycle.Motorcycle Ownership Not surprisingly.

32% 2 – 3 times per week).  – – Segment 3 Enthusiasts are the smallest segment (8%). and Attracted to Dr.. Chick-Fil-A. and Busch.  “Enthusiast” Segment Summary Visitors to the Section 1 page also are more likely to drink Sam Adams and shop at Home Depot. – – Segment 2 Enthusiasts are the largest (34%) and most affluent ($90k) segment. they are… Frequent visitors (47% once a day or more often. and K-Mart. Home Depot. More than site visitors as a whole.  – – Segment 4 Enthusiasts account for 22% of visitors. Are the most active shoppers – Wal-Mart. – – – – – Dink more Bud/Bud Light. eat at Chili’s. and are… Less frequent visitors (26% once a day or more often. they… Prefer Mountain Dew. 31% 2 – 3 times per week). Coors. Pepper. Like Applebee’s. Olive Garden.  – While Segment 2 Enthusiasts (15%) are the least attractive demographically – older (57 years of age) and lowest income ($66k) – they may represent the most opportunities. and Attracted to Sprite and USAA. . and Attracted to Subway and USAA. Lowes. Are fast food junkies – McDonald’s.  Visitors to the Section 3 page also are more likely to drink Sam Adams and Sierra Nevada. 31% 2 – 3 times per week). KFC and Pizza Hut. and Progressive Insurance (both Auto and Bike)  Visitors to the Section 3 page are more likely to drink Guinness. and Cracker Barrel. and Are State Farm loyalists. and shop at Target. they are… Frequent visitors (41% once a day or more often.

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