How Consumer Reports Has Sold Over 1 400

How Consumer Reports Has Sold Over 1, 400, 000 Online Subscriptions Michelle Rutkowski Marketing Director, Consumer. Reports. org rutkmi@consumer. org April 16, 2004

Consumers Union • Largest nonprofit educational and consumer product-testing center in the world • Independent testing for 68 years • Mission: Test, Inform, and Protect Consumers • Publisher of Consumer Reports Magazine, Consumer. Reports. org, Books and Special Publications • Objective, unbiased product ratings, recommendations and advice • No advertising • Independent of commercial interests

The Power of the Brand • Customer trust • Unbiased, Research-Based Product Testing • Independent, Free From Commercial Interest • Name Recognition

Consumer Reports magazine 4 million paid subscribers 16 million readers every month

Integrating the Web into the Product Line • 1978 - Viewtron • 1986 - Trintex, Prodigy • 1986 - Dialog Online • 1988 - Lexis-Nexis • 1988 - Compu. Serve • 1992 - America Online • 1997 – Consumer. Reports. org Launched • 2001 – Consumer Reports Available on PDAs • 2001 – Consumer. Reports. org Redesigned • 2002 – Consumer Reports to Go launch • 2003 – Consumer. Reports. org Redesigned

Strategies for Integrating Print and Web • Extend the Brand • Establish a Business Model Based on Paid Content • Integrate Web into the Product Line • Differentiate Print and Online Products • Leverage Marketing and Business Development Opportunities

Four principles for creating and maintaining a Winning Business Model • Focus on your customers • Provide a unique and useful product • Extend your brand • Build upon your already successful business model

Marketing objectives – Drive new subscriptions – Retain current subscribers – Generate incremental revenue from upsells and cross-sells – Reach new markets (younger audience)

Consumer Reports Marketing Strategy • Leverage the Consumer Reports brand online – reinforce core messages of expert, independent, nonprofit • Create and implement Web-only content for Consumer. Reports. org • Provide interactive user tools: search, calculators, configurators • Use house lists and house media – best source of new business • Sample content and drive consumers to samples – Silver content offsite and seasonal PR hubs • Use search engine optimization (SEO) to identify consumers in buying/research mode and bring them to site

Consumer. Reports. org Free content – Sampling and mission Consumer. Reports. org Paid content • Product recalls database & safety alerts Consumer Reports current issue • • Selected reports from other CU publications Up to four years of back reports • • Timely special sections Product, services, and reliability ratings • Links to manufacturers & other helpful consumer sites • Cars database and car selector • Interactive applications • Subscriber Forums • Shopping guidance • • e-Ratings of online shopping sites

Marketing Issues • • Driving online from other media “Cannibalization” from print Cross-selling Upsells – Consumers want discounts on multiple subscriptions • Sequential sales vs. bundling • How much is too much on sampled content? • Straightforward sell always works best – “Non-intuitive” marketing

Marketing Program Examples

Auto Renewal email Dear Consumer. Reports. org Subscriber: Our records indicate that your subscription to Consumer. Reports. org will be renewed soon. That's because you signed up a year ago with an annual auto-renewing subscription. If you have updated your billing information in the last few days, thank you and please disregard this letter. If not, please help us in confirming your account information. On the one-year anniversary of your subscription, you will automatically be renewed for another year of Consumer. Reports. org, and your credit card will be billed accordingly. If any of your credit card information has changed (e. g. , credit card expiration date) or if you need to change anything regarding your account, please click on link below to update your account information: https: //www. consumerreports. org/main/user/challenge. jsp As you know, we truly value your readership and commitment to Consumer. Reports. org. That's why we want to make sure you continue receiving the facts you need to shop smart and buy smart. In our efforts to continually improve and expand the site, you have access to more features and information than before: - Unlimited access to the most recent product Ratings and recommendations on topics covered in the last four years Quick and easy search capability to find exactly the information you're looking for - FAST e-Ratings on over 175 top online shopping sites in 19 retail categories Access to Consumer Reports experts in our Forums Email alerts with breaking product or safety news Downloadable reports for your PDA And much more! You already know the value of having Consumer Reports' unbiased, reliable advice at the click of a mouse. We are looking forward to the upcoming year -- it promises to be an exciting one! Sincerely, The Consumer. Reports. org Team P. S. Make sure you check out the great features we have planned, such as computers, home networking, broadband, dream kitchens, cell phone alternatives, bike helmets, and more. ---------------------------------Please note: This e-mail was sent from a notification-only address that cannot accept incoming e-mail. Please do not reply to this message. If you experience difficulty confirming your account information, simply click on the link below and choose the appropriate Help topic. http: //www. consumerreports. org/main/redirect/content. jsp? PATH=/Custserv/custserv. html

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Units in Thousands Subscribers to Consumer. Reports. org 1, 400, 000 + Paid Subscribers to Consumer. Reports. org

Subscription Websites Website Business Paid Subs 12/31/03 American. Greetings. com* Greeting cards 2, 100, 000 Consumer. Info. com** Personal credit reports 1, 600, 000 Ancestry. com Genealogy 1, 500, 000 Consumer. Reports. org Consumer guide 1, 300, 000 Real. com News, sports, entertainment 1, 300, 000 Match. com Personals 939, 000 WSJ. com Business news 689, 000 Everquest. com Games 430, 000 * Includes Blue. Mountain. com and Egreetings. com ** Includes Credit. Expert. com and Free. Credit. Report. com (parent: Experian) Source: Wall Street Journal from Intermarket Group LP and the companies listed

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How Consumer Reports Has Sold Over 1, 400, 000 Online Subscriptions Michelle Rutkowski Marketing Director, Consumer. Reports. org rutkmi@consumer. org April 16, 2004