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New Study from Vertis Finds High Level Insert Readership

Friday, January 27, 2006

Press release from the issuing company

Baltimore (January 26, 2006) – Vertis today announced the results of its proprietary Customer Focus 2006: Retail study, which for the third consecutive survey, reveals that advertising insert readership levels are consistently at 85 percent or above. Additionally, the study finds Web savvy individuals still rely on advertising inserts, as 88 percent of Sunday newspaper readers surveyed via the Web said they read Sunday newspaper inserts, while 79 percent of those surveyed by phone read them. "In today’s Internet age and ever-changing retail landscape, the study’s findings show that advertising inserts are still being read at the same level and remain an integral channel for retailers to reach consumers," said Jim Litwin, vice president, market insights, at Vertis. "Heavy Internet users are even more dependent on newspaper inserts than the average consumer. Also, women of all ages are an increasingly important demographic to target through inserts due to their purchasing power and retail decision making." The study finds consumers use advertising inserts of all forms to help decide where they shop or to learn about available segments. More specifically, 52 percent of those surveyed by phone and 71 percent of those surveyed via the Web use inserts to decide where they buy groceries. Additionally, 29 percent of those surveyed by phone and 41 percent surveyed by Web use inserts to decide where to shop for health and beauty care products, while 28 percent and 39 percent, respectively, use them for office supply decisions. The Vertis Customer Focus 2006: Retail study, which surveyed respondents for the first time via both the telephone and Web, shows the following additional findings, which provide insight into the purchasing trends and importance of advertising inserts across a variety of retail sectors. Grocery Ad Insert Readership Strongest Among Women · Seventy-seven percent of women ages 18-34 do the majority of the household’s grocery shopping · Since 1998, the percentage of women ages 18-34 reading grocery inserts has increased 14 percentage points · These women tend to like discount stores, and have shown an interest in the grocery stores’ ethnic and organic departments Home Electronics Purchasing Trends · Since 2004, the percentage of adults planning to purchase a computer has grown seven percentage points – greater than any other product category surveyed · One of the fastest growing groups who plan on purchasing a computer is women ages 35-49, rising 10 percentage points since 2004; these women also show a greater interest than the average adult in special financing offers for home electronics, such as delayed credit card payments · Forty percent of women ages 35-49 said advertising inserts influence their overall buying decisions, while television only influences 20 percent Women: An Important Demographic for Furniture Retailers · Women ages 18-34 are an important demographic for furniture retailers, as 33 percent of these women said they plan to purchase bedroom furniture, 26 percent plan to purchase bedding and 24 percent plan to purchase living room furniture · When these women were asked about their last furniture purchase, lowest price was the greatest consideration for 39 percent of them, increasing nine percentage points since 2002; meanwhile, highest quality dipped seven percentage points since 2002 · Additionally, the percentage of women ages 18-34 turning to the Internet first when ready to make a purchase has increased from 19 percent in 2004 to 27 percent in 2006 Home Improvement and DIYs Turn to Inserts for Price and Selection · The percentage of “do-it-yourselfers” has grown nine percentage points since 2004, as Americans are increasingly more willing to take on home improvement projects · Specifically, this group has grown most with women ages 35-49, growing 12 percent in two years · Seventy-three percent of women ages 35-49 who read ad inserts compare similar home improvement inserts before heading to the selected store Prescription and Drug Store Key Target Audience · Of all the age and gender groups surveyed, women 50 and older had the highest average prescription purchases per month (four) for their households – clearly making them an important target for pharmacy retailers · Thirty-three percent of these women said advertising inserts were the number one medium that influences their general purchase decisions, followed by 20 percent who said newspaper advertisements influenced purchase decisions




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