Copyright 2007 © Borrell Associates Inc., All rights reserved What Local Media Web Sites Earn: 2007 Survey Fifth Annual Benchmarking Report Graphics from

Copyright 2007 © Borrell Associates Inc., All rights reserved

What Local Media Web Sites Earn:

2007 SurveyFifth Annual

Benchmarking Report

Graphics from ReportGraphics from Report

© 2007 Borrell Associates Inc.

Fig. 1: Growth Slowdown Continues For Traditional Media Web Revenue

Sources: SEC, company statements, Borrell Associates


Fig. 2: Projected Percentage of Gross Revenue from Online Sales in 2007

Sources: SEC, company statements; forecast % from Borrell Associates.

Company2007

forecastWashington Post Co. (Newsp. Only) 10.7%New York Times Co. (Newspapers) 8.1%Morris Communications (Newspapers) 8.1%Scripps (Newspapers) 7.0%McClatchy (Newspapers) 6.6%Private Company (Radio & Newspapers) 6.5%Belo Corp. (Newspapers) 6.0%Gannett (Newspapers & TV) 5.9%Tribune Co. (Newspapers & TV) 4.6%Lee Enterprises (Newspapers) 4.3%Private Company (Radio Grp.) 3.5%Media General (Newspapers & TV) 3.5%Belo Corp. (TV) 3.2%Private Company (Single Newspaper) 2.8%Private Company (Newsp., Radio & TV) 2.6%Hearst-Argyle (TV) 2.4%Private Company (Newspapers) 2.4%Private Company (Radio Group) 2.2%Private Company (Radio Group) 1.8%Private Company (TV) 1.7%Journal Register (Newspapers) 1.6%Journal Communications (Newsp. Only) 1.4%Private Company (Single Newspaper) 1.4%


Figure 3: Local Online Advertising Grows to $7.5 Billion in 2007

$-

$5

$10

$15

$20

$25

$30

$35

($ in

Bill

ions

)

National Local

Local $- $0.2 $0.5 $1.2 $1.4 $1.7 $2.1 $2.7 $4.8 $5.7 $7.5

National $0.0 $1.3 $4.2 $6.9 $5.4 $7.1 $9.2 $11.0 $14.7 $18.3 $22.1

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Source: Borrell Associates


News paper S ites35.9%

TV S ites7.7%

R adio S ites2.2%

P ure P lay S ites **33.2%

Direc tory S ites11.7%

Other P rint*9.2%

Fig. 4: How $5.7 Billion in Local Online Advertising was Shared in 2006

* “Other print” includes local magazines and alternative newspapers ** “Pure Play Sites” include sites not affiliated with a traditional local media company


Fig. 5: Growth of Online Revenuesfor 13 Newspaper Cos. Since 2001

Media Company 2001 2002 2003 2004 2005 20065-YearCAGR

Q1 07 Growth

Gannett 68.0$ 86.0$ 124.7$ 199.5$ 311.2$ 401.0$ 42.6% 16.0%Tribune Co. 59.5$ 76.7$ 94.1$ 125.0$ 177.0$ 228.3$ 30.9% 17.0%New York Times Co. * 60.3$ 71.8$ 88.0$ 118.0$ 152.8$ 192.0$ 25.8% 20.3%Washington Post Co. 30.3$ 35.7$ 46.9$ 62.0$ 80.2$ 102.7$ 27.7% 10.0%McClatchy ** 16.3$ 22.2$ 27.0$ 40.1$ 55.7$ 70.0$ 33.8% 5.4%Belo Corp. 13.1$ 19.5$ 24.6$ 31.1$ 43.5$ 60.1$ 35.6% 18.0%Morris Communications ^ na na 14.0$ 18.6$ 24.0$ 35.2$ 36.0% 24.8%Scripps 4.5$ 8.3$ 11.5$ 14.4$ 22.7$ 34.2$ 50.2% 20.0%Media General 3.2$ 6.1$ 9.7$ 13.9$ 20.5$ 27.2$ 53.4% 30.0%Lee Enterprises 3.9$ 8.8$ 9.0$ 11.9$ 16.8$ 24.5$ 44.4% 53.9%Journal Register 3.5$ 4.0$ 4.7$ 6.2$ 9.3$ 15.3$ 34.3% 16.1%Journal Communications na na na 4.7$ 7.1$ 9.6$ 26.9% naKnight Ridder ^^ 42.3$ 55.3$ 79.7$ 114.6$ 164.5$ na 40.7% naNewspaper Co. Average 35.3% 17.9%All Local Online Advertising 1,398.0$ 1,650.0$ 2,078.0$ 2,687.0$ 4,810.0$ 5,673.0$ 32.3% 35.0%

* New York Times Co. revenues do not include About.com, which totaled about $82m in 2006** McClatchy revenues for 2006 do not include Knight Ridder properties. Total rev. with those properties was about $155m^ Morris Communications' CAGR calculation is for 3 years^^ Knight Ridder CAGR is for four years; its assets were sold in 2006

All $ in Millions

Sources: SEC filings, public company statements


Figure 6: Newspaper Sites RemainDependent on Classified Verticals

13.4%11.3%

51.8%

12.5% 11.9%

46.5%

0%

10%

20%

30%

40%

50%

60%

Automotive Real Estate Recruitment

% o

f Tot

al W

eb R

even

ues

2005 2006

In 2005 newspaper Web sites received 77% of their revenues from the "Big

Three" classified categories. In 2006, it declined to 71%.

Source: Borrell Associates


Fig. 7: Newspaper Site RevenuePer Unit of Print Circ., 2003-2006

$69.50

$49.73

$33.22 $31.23 $30.65 $19.83

$14.26

$-

$20

$40

$60

$80

Daily Print Circulation

$ pe

r Uni

t of P

rint C

ircul

atio

n

2003 2004 2005 2006

2003 $3.64 $6.81 $9.40 $11.91 $13.40 $15.94 $27.10

2004 $5.89 $9.39 $14.81 $17.09 $17.87 $25.17 $35.94

2005 $8.28 $13.50 $21.29 $22.58 $24.18 $36.07 $53.12

2006 $14.26 $19.83 $30.65 $31.23 $33.22 $49.73 $69.50

2-10k 10-20k 20-50k 50-75k 75-100k 100-200k >200k

Source: Borrell Associates Inc., n= 565


Fig. 8: Average and High/Low Mkt Share for Newspapers, 2006

DMA Market Size

Average Market Share Lowest Highest

Markets 1-20 12.7% <1.0% 43.1% Markets 21-50 15.6% <1.0% 62.7% Markets 51-210 19.5% 1.1% 56.0% Average/ Range 15.1% <1.0% 62.7%


Fig. 9: Local Online Advertising Sharefor Daily Newspapers by DMA, 2006

0%

10%

20%

30%

40%

50%

60%

70%

0 50 100 150 200Nielsen Market Size

Shar

e of

Loc

al O

nlin

e A

dver

tisin

g

1

Source: Borrell Associates, n=556


Fig. 10: TV Online Revenue per TV HHa Avg. per-Station Revenue, 2006

DMA Market Size

Online $ Per TV HH

Average $ Per Station

Markets 1-20 $0.29 $734,195 Markets 21-50 $0.69 $572,917 Markets 51-100 $0.60 $223,498 Markets 101-211 $0.90 $146,647

Source: Borrell Associates, Inc.


Fig. 11: Avg. and High/Low Shareof Local Online Adv. for TV Sites, 2006

DMA Market Size

Avg. Share of Local Online Advertising

Lowest Highest

Markets 1-20 0.5% <1.0% 3.7% Markets 21-50 1.2% 0.2% 11.1% Markets 51-100 1.1% <0.1% 7.1% Markets 101-210 1.8% <0.1% 18.5% Average/ Range 1.0% <1.0% 18.1%


Fig. 12: Local Online Adv. Sharefor TV Stations by DMA, 2006

0%

5%

10%

15%

20%

1 31 61 91 121 151 181 211

Niels en Market R ank

Sha

re o

f Loc

al O

nlin

e A

dver

tisin

g

Source: Borrell Associates, n=401


Fig. 13: Growth of Local OnlineAdv. for Radio Stations, 2003-2007

$18

$34

$60

$125

$189

$0

$50

$100

$150

$200

2003 2004 2005 2006 2007f

$ in

mill

ions


Fig. 14: Average Per-Station RevenueFor Radio Web Sites, 2006

DMA Market Size

Avg. Online Revenue Per

Station Lowest Highest

Markets 1-20 $140,472 $0 $1.2m Markets 21-50 $58,965 $0 $250,000 Markets 51-100 $30,502 $0 $116,601 Markets 101-210 $8,479 $0 $46,000 Average/ Range $52,652 $0 $1.2m


Fig. 15: Average Share of Local Online Adv. for Radio Clusters, 2006

DMA Market Size

Avg. Share of Local Online Advertising

Highest

Markets 1-20 0.4% 4.7% Markets 21-50 0.5% 5.2% Markets 51-100 0.6% 2.4% Markets 51-210 0.4% 4.5% Average/ Highest 0.5% 5.2%


Figure 16: Share of Local Online Adv. for Radio Clusters, 2006

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0 30 60 90 120 150 180 210

Shar

e of

Loc

al O

nlin

e Ad

v.

Nielsen Market Ranking11Source: Borrell Associates, n=271 clusters


Figure 17: Recent Salesof City.com URLs

URL

Description

Date Sold

Price

Baja.com Site under construction. May 2007 $95,000 BajaCalifornia.com Focuses mainly on hotel,

restaurant reservations. May 2007 $95,500

Buckhead.com Focuses on shopping, hotels & restaurants in this trendy section of Atlanta.

April 2007 $250,000

Branson.com Entertainment and real estate info for Branson, Mo., “the live entertainment capital of the world.”

February 2006

$1,600,000

Yonkers.com Templated site offers links to reservations and other information in New York’s Yonkers area. No local staff.

Oct. 2006 $70,750

Local.com Search engine bought by public company with revenues of $14.2 million in 2006.

March 2005

$700,000

LasPalmas.com List of links for travel and entertainment related to Las Palmas, Calif.; makes money from Yahoo text advertising. No local staff.

October 2005

$15,363

Baltimore.com Focuses on hotels, restaurants, car rentals, real estate in Baltimore, Md.

2004 $500,000

Sources: Domain Name Journal, Borrell Associates.


Thank You !

Borrell Associates Inc.Borrell Associates Inc.www.BorrellAssociates.comwww.BorrellAssociates.com

For more information on this data,contact Borrell Associates [email protected],

or call 757-686-4502

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Copyright 2007 © Borrell Associates Inc., All rights reserved What Local Media Web Sites Earn: 2007 Survey Fifth Annual Benchmarking Report Graphics from