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THE VALUE OF PUBLIC PLACE READING Insights from a new study sponsored by Time THE VALUE OF PUBLIC PLACE READING Insights from a new study sponsored by Time Inc. & Mediaedge

Research Objective: Gain insights into the role and value of magazines in public places Research Objective: Gain insights into the role and value of magazines in public places Magazines Studied: Entertainment Weekly; Fortune; In Style; Parenting; Sports Illustrated; People 2

Research Architecture Public Place Locations Studied: – Doctors’ and Dentists’ Offices/Hospital and other Medical Research Architecture Public Place Locations Studied: – Doctors’ and Dentists’ Offices/Hospital and other Medical Facilities – Hair/Nail/Beauty Salons or Spas (women) – Barber Shops/Hair Salons (men) – Business Reception Areas – Libraries – Airlines Sample Size: – 2382 Public Place readers – 3062 Subscribers/Newsstand buyers 3

Research Insights Public place reading is a meaningful reading experience. That readers are not Research Insights Public place reading is a meaningful reading experience. That readers are not paying for the copies read there has little impact on their involvement with the magazine – Reading is the #1 activity occurring in public place waiting situations – Contextual relevance is a factor determining which magazines are read – Having magazines available is a benefit to those waiting, to the location host, to the magazine publisher and to the advertiser 4

Research Insights While reading time in public places is abbreviated, the reading is focused Research Insights While reading time in public places is abbreviated, the reading is focused – Readers experience fewer interruptions, engage in less multitasking and feel less guilty about devoting time to reading 5

Research Insights Actions taken as a result of reading magazines are high regardless of Research Insights Actions taken as a result of reading magazines are high regardless of paid or public place copy status – Little variation in overall action taken exists between public place readers and subscribers/buyers – Although ad actions taken are somewhat lower for a public place reader vs. a subscriber/buyer, higher RPCs in public places more than offset this 6

Public Places are Heavily Trafficked Locations Visited in Past 30 Days Base: Public Place Public Places are Heavily Trafficked Locations Visited in Past 30 Days Base: Public Place Sample Data Used: Q 3 7

Reading Magazines is the #1 Activity While Waiting While in libraries, reading books is Reading Magazines is the #1 Activity While Waiting While in libraries, reading books is the prime activity Base: Public Place Sample visiting location in past year Data Used: Q 9 8

Magazine Reading Dominates Other Activities at Doctor’s/Dentist’s Offices Doctor’s/Dentist’s Office Read book Use cell Magazine Reading Dominates Other Activities at Doctor’s/Dentist’s Offices Doctor’s/Dentist’s Office Read book Use cell phone+ Watch TV/movies Work Play video games 92% 52% 47% 37% 28% 9% 4% Other Nothing Nearly twice as many people are reading magazines as engaging in the #2 activity Read/Look at magazines Read/Look at newspapers Talk to someone 4% 1% Base: Public place sample Data Used: Q 9 9

Magazines Enhance the Waiting Experience 95% of public place readers report they would be Magazines Enhance the Waiting Experience 95% of public place readers report they would be upset, feel underserved or bored if no magazines were available in public places – 87% claim the time spent waiting would drag – 72% would be upset that magazines were no longer available – 63% would feel the location was not trying to make the visit as enjoyable as possible Base: Public Place Sample Data Used: Q 17 10

Public Place Magazines Benefit All Constituencies Benefits Reader Benefits Advertiser PUBLIC PLACE Benefits Host Public Place Magazines Benefit All Constituencies Benefits Reader Benefits Advertiser PUBLIC PLACE Benefits Host Benefits Publisher 11

Magazines Offer Significant Benefits for the Host Benefits Host Waiting rooms should provide things Magazines Offer Significant Benefits for the Host Benefits Host Waiting rooms should provide things to read while you wait Makes time go faster Don’t mind waiting as much Helps take my mind off why I’m there 97% 86% 84% Base: Public Place Sample Data Used: Q 19; top 2 box 12

Readers, Publishers and Advertisers All Benefits Reader Opportunity to read without paying Latest fashion/beauty Readers, Publishers and Advertisers All Benefits Reader Opportunity to read without paying Latest fashion/beauty trends** Updates on business* To see what products/services are featured in ads Trust the articles in magazines found here If there, magazine is popular Higher opinion of magazines found there Trust the ads in magazines found there 96% 87% 76% 70% 62% 54% 45% 44% Base: Public Place Sample Data Used: Q 19; top 2 box **In. Style cell only *Fortune Cell only 13

Actions Defined Edit-driven actions – Used information/ideas I got from the magazine – Talked Actions Defined Edit-driven actions – Used information/ideas I got from the magazine – Talked to someone about something I read in a magazine – Bought, or intend to buy, a product or service featured in a story – Tore out an article 14

Actions Defined Ad-driven actions – Researched to find out more about a product or Actions Defined Ad-driven actions – Researched to find out more about a product or service advertised in a magazine – Bought, or intend to buy, a product or service advertised in a magazine – Followed up on an ad in a magazine – Tore out an ad 15

Actions Defined Either ad- or edit-driven actions – – – Visited a website mentioned Actions Defined Either ad- or edit-driven actions – – – Visited a website mentioned in a magazine Learned about a product or service I was unaware of Asked beauty/hair salon about something I read or saw Asked Doctor/Professional about something I read or saw Recommended a product/service I learned about 16

Public Place Reading Generates High Levels of Followup Actions Taken (Total) Created word-of-mouth* Visited Public Place Reading Generates High Levels of Followup Actions Taken (Total) Created word-of-mouth* Visited website mentioned in magazine Purchase interest based on ad** Used info/ideas from magazine Learned about product/service I wasn’t aware of Researched to find out more about a product/service advertised Asked beauty salon or Dr. /professional*** 85% 50% 43% 40% 36% 23% 14% *Net. Talked to someone about something I read, Recommended product/service I learned about **Net. Bought/intend to buy product/service advertised, Researched to find out more about a product/service advertised, Followed up on an ad, Tore out an ad ***Net. Asked beauty/hair salon about something I read/saw, Asked a Dr. /professional about something I read/saw Base: Public Place 17

Public Place Reading Generates Levels of Follow-up Action at Least Three-Fourths That of Paid Public Place Reading Generates Levels of Follow-up Action at Least Three-Fourths That of Paid Readers Index PP vs. Paid Actions Taken (Total) 98 Created word-of-mouth* 86 Visited website mentioned in magazine 88 Purchase interest based on ad** 75 Used info/ideas from magazine 89 Learned about product/service I wasn’t aware of 92 Researched to find out more about a product/service advertised 77 Asked beauty salon or Dr. /professional*** 93 *Net. Talked to someone about something I read, Recommended product/service I learned about **Net. Bought/intend to buy product/service advertised, Researched to find out more about a product/service advertised, Followed up on an ad, Tore out an ad ***Net. Asked beauty/hair salon about something I read/saw, Asked a Dr. /professional about something I read/saw 18