Proprietary and confidential. Do not distribute.0 Shannon Dunnigan [email protected] 401-451- 3107

Proprietary and confidential. Do not distribute. 1

www.RadarFrog.comShannon Dunnigan

[email protected] 401-451-3107


Agenda

• What’s RadarFrog all about?

• What will we offer our advertisers?

• Tips

• Sales support and logistics

• Marketing support and logistics

• Next steps

• Questions


What’s RadarFrog All About?


The opportunity

1 2 3

GateHouse Media is seeking opportunitiesto earn more money from our existing customer base.

Recent economic events have caused a permanent change in consumer behavior where habits have shifted towards cost-conscious spending.

GateHouse Media can capitalize on an emerging need, draw on our unique local assets and deliver online savings that no one else can match.


RadarFrog as a membership-based community

All RadarFrog users must be registered as one of two membership types

BASIC MEMBERSHIP

Free

Access to national offers from some merchants

Access to local offers

PREMIUM MEMBERSHIP

$9.99 / month subscription fee

Access to all basic membership offers…

PLUS, access to even better deals from some national merchants and potentially local businesses too

Access to private sales on luxury goods

$25 restaurant gift certificate each month or $25 in deliverable goods from companies like Mrs. Fields Cookies, LobsterGram, The Fruit Company, BBQ2You

Cash back program


What is RadarFrog?

(rā’-där frawg): an online source for a broad range of deals, coupons, and other offers

NATIONAL DEALS from large retailers online and in our communities

&

Exclusive LOCAL DEALS from locally-owned businesses

illustrative

www.RadarFrog.com


Check It Out! Register today!


How Does One Sign Up – Free or Premium?


What Do Premium Deals Look Like?


What If the Local Restaurant Options Are Limited?


FAQs


Use of Coupons Compared to Interest in Major League Sports

Source: Scarborough Research, 2009 Study, Release 1.

78.3%


Coupon Distribution, 2003-2009

Source: CouponInfoNow.com, Coupon Fast Facts, 2009; TNS Marx Media Intelligence, FSI Trends,2004-2009 mid-year


Use of Coupons, August 2008 through March 2009

Source: Scarborough Research, 2009 Multi-Market Study, Release 1.


2009 Projected Coupon Distribution by Source

Source: Marx Promotion Intelligence, 2009 Mid-Year Free Standing Insert Distribution Trends; Coupon Fast Facts, CouponInfoNow.com (Inmar).

* Includes in-store circulars and in-store electronic** Includes on site, e-mail delivered, and mobile delivered


Forecast 2010 Coupon Distribution by Source

Source: Marx Promotion Intelligence, 2009 Mid-Year Free Standing Insert Distribution Trends; Coupon Fast Facts, CouponInfoNow.com (Inmar).



Projected 2009 Coupon Redemption by Source

Source: Marx Promotion Intelligence, 2009 Mid-Year Free Standing Insert Distribution Trends; Coupon Fast Facts, CouponInfoNow.com (Inmar); Scarborough Research 2009 Multi-Market Study, Release 1.



Projected 2009 Coupon Redemption by Location

Source: Borrell Associates 2009 Q3.


2009 Projected Grocery Coupon Redemptions



2009 Projected Restaurant Coupon Redemptions



2009 Projected Retail Coupon Redemptions



2009 Projected Drug Store Coupon Redemptions



2009 Projected Manufacturer Coupon Redemptions



2009 Online Coupon Redemption Projections

Source: Borrell Associates Inc.


Statistics for Popular Coupon Web sites

Source: Quantcast Inc., November, 2009.


U.S. Online Coupon Redemption 2008-2010

Source: Borrell Associates Inc.


U.S. Online Coupon Redemption 2008-2010

Source: Borrell Associates 2009 Q3


Fast Facts

• More than ¾ of adults have used a coupon in the last 6 months.

• Average face value for coupons distributed online ($2.80) is higher than nearly all other types of distribution (average $1.58); second only to on/in package ($3.70).

• While online coupons only account for 6.2% of all coupons distributed, they represent 20.1% of all redeemed coupon dollars, just barely trailing in store (23.8%) and free standing insert/FSI (21.2%) redemption.

• Online coupons were the leading source of all coupon dollars redeemed for restaurants and retailers.

• Local coupon redemption grew by 48% in 2009 and is expected to increase by another 57% in 2010. National redemption grew by 3% and is expected to increase by another 53% respectively.

› RadarFrog converges the two and brings consumers the best of both worlds.

Source: Borrell Associates “What’s on Sale” 12.2009


What Will We Offer Our Advertisers?


Product FAQs

• What is it? Local deals, placed in front of active shoppers who are looking for products and services that you offer!

• When will it be displayed? When the user clicks on a category, filter or searches for a keyword that matches the offer within the zip code radius set by the user.

• Can I include logo? Yes, a logo is required and an additional image is optional. Dimensions? 127x58 for logos and 100x100 for other images (we will resize files that are close to this size but not exactly meeting these dimensions)

• Can I include a link to the merchant’s Web site? Yes.

• How often can the deal be changed? Once per month when there is sales rep involvement, as often as the merchant would like when using the self service tool.

• Is there an additional charge for the merchant to use the self service tool to make creative changes? No. This is a free benefit to the merchant for being engaged with his RadarFrog deals.

• Will there be reports of activity? Yes, we will be able to track merchants’ deal views and clicks. Sample reports will be provided shortly.

• Can we track redemption? These coupons will not have unique bar coding so they will be tracked as would a coupon that runs (ROP) in the newspaper. Future tracking possibilities are being explored.

• Does that mean that they can be used multiple times? Yes. If it also means that they are making multiple purchases, hopefully that is a good thing.


Product FAQs Continued

• Is special software required to print the deals/coupons, as with RedPlum? No.

• What will we charge? Recommended range is between $25 and $50 per local merchant, per month, with $25 being the floor price (no less) offered for longer term agreements. The selling newspaper keeps 65% of this revenue. Regional (multiple locations) pricing will be provided shortly.

• How is the customer billed? As with most products, you bill the customer locally. Based on the information entered into the order system regarding what you charge your customer, we at corporate will receive an invoice from our partner for 35% and will allocate this expense back to your paper.

• Are there sales goals for this product? Your publisher has received goals for this product and will share them with you, locally. We hope everyone knocks these goals out of the park right away and keeps on selling!

• What types of members will see the local merchants’ deals? All members – free/basic and premium – will see local deals.

• How will I know what premium members see? Sign up for a free membership and click on Deals->Filters->Premium to see deals that are available to premium members only.


Home Page


Local Deals Tab


Category Search


Deal Finder


Search Box


Printable Coupon


Local Deals Will Be Included in the Weekly Deals Emails


Tips


Considerations

• Critical mass is key. If the site is useful and relevant, people will use it more, which will ultimately benefit the participating merchants. What makes sense in your market?

› Should this be a package type of sale? Is there a coupon section or wrap that would work well here?

»Lots of discussion going on regarding wraps and rebranding coupon books. Looking for best practices to share right away!!!

› Can this be an outbound sales center project?

› Are there best practices from other products that have some similarities? IYP? Zip2Save?

• Additionally, think about non-newspaper advertisers. Use Valpak and other coupon sources as leads generating tools.


Why Advertise on RadarFrog?

• Complement traditional advertising in a cost effective way

• Great local and national exposure

• Promote directly to consumers, based on geographic location

• Low cost, high impact online savings community

• Modify deals on the fly with easy to use self-serve interface

• About 30% of our subscribers are active shoppers (at least one purchase per month)


What Makes a Great Deal?

• A substantial percentage or dollar discount

• A time limit on a coupon has proved to generate more sales

• Free shipping or free delivery as a bundle works great

• Promotions based on retail or marketing events create more excitement and help generate more sales

• Themed promotions based on user preferences, habits or hobbies i.e. “dog lovers”


RadarFrog Categories


Average Discounts per Category

Category Average % discount Average $ discount

• Apparel 19% $15.87

• Automotive 17% $23.46

• Beauty 18% $9.00

• Business/Office 32% $11.00

• Computers 37% $15.00

• Eco Friendly 20% $9.00

• Education 19% $12.00

• Entertainment 23% $17.00

• Family 15% $11.00

• Finance/Security 17% $48.00

• Food/Drink 12% $13.00


Average Discounts per Category

Category Average % discount Average $ discount

• Gifts 15% $13.00

• Health 16% $26.00

• Hobbies & Collectibles 10% $14.00

• Home & Garden 13% $20.00

• Personals 37% $0.00

• Pets 15% $10.00

• Sports and Fitness 25% $20.00

• Toys & Games 22% $12.00

• Travel 20% $73.00


Types of Deals

• Power Deals – Any offers well over and above category averages. Truly compelling offers meant to bring buyers in without question.. Example 35%-50% offers depending on categories.

• Great Deals – Higher than category averages. Example 25%-34% depending on categories.

• Good Deals – Any offers slightly below category averages or on par with averages. Example 10%- 20% depending on categories.

• Average Deals – Well below category averages. Example 5%-9% off depending on categories.


Most printed deals…










Competition


Competition


Timeliness

• We will provide a marketing calendar of events that should be taken into consideration when speaking with local businesses.

• Coincide offers with upcoming events. Keep local events top of mind as well.

• At the very least, offers should be updated once a month so that potential users are enticed to come back to see what the new offer is for that month.


Sales Support/Logistics

gatehousenewsservice.com/ghns_pagesThe RadarFrog section is under the “Niche” tab.

Email Anne Raih ([email protected]) for login Information if you don’t currently have access.


Sales Support

• RadarFrog section in the GateHouse News Service site

• FAQs

• Weekly RadarFrog Newsletter

• Training presentation and Webinar

• Merchant tri-fold brochure

• Single sheet sales piece (to come)

• Research and statistics to assist in the sales process

• Brush up training

• Company-wide sales blitzes and sales blitz ideas

• RadarFrog handbook (in development)


Online order entry at:orders.radarfrog.com

Instructions will guide you through the process.

Order Form


Marketing Support and Logistics

gatehousenewsservice.com/ghns_pagesThe RadarFrog section is under the “Niche” tab.

Email Anne Raih ([email protected]) for login Information if you don’t currently have access.


Marketing Commitment

• In-paper house ads are required for all newspapers (Launch Phase). These ads are available to you on the GateHouse News Service.

- Size requirements depend on the following:› Weeklies with circulation of 20,000 or more: 1/2 page equivalent

(can run multiple ads to meet size requirements)› Weeklies with circulation under 20,000: 1/4 page per week› Dailies with circulation of 20,000 or more: Full page equivalent per week› Dailies with circulation of 10,000-20,000: 3/4 page equivalent per week› Dailies with circulation under 10,000: 1/2 page equivalent per week

› During the first 4-weeks please maximize all house ad space by doubling ad requirements and using all other in-house means available to you including; insert jackets, filler ads, etc.

› Please Note: These ads will take the place of the current Zip2Save ad campaign.


Internal Marketing Materials (All materials are available on GHNS)

Internal Materials- Posters- Payroll attachments- Overview PowerPoint Presentation- Marketing card template with RadarFrog logo and URL- Employee information sheet

- Brochure collateral on RadarFrog

- Single Sheet sales collateral (to come)

- Webinar Training Module


Merchant Marketing Materials (All materials are available on GHNS)

Merchant Marketing Materials

- Window sticker template for businesses

- POP easels

- Brand cards

- Merchant Direct Mail

- Merchant email draft

- Merchant/Advertiser bill stuffer

- Sales brochure

- Single Sheet sales collateral (to come)

- T-shirt template


Consumer Marketing Materials (All materials are available on GHNS)

Consumer Marketing

- Teaser ads (pre-launch build up)

- Radio ad (to come)

- Introductory email

- Launch ad campaign

- Subscriber invoice stuffer

- T-shirt template


Sample Ads

Teaser Ads

Launch Ads


Sample Materials

Window Decal

Paycheck Attachment

Sales Brochure


RadarFrog Logo Usage• Always use the logo signature with the tagline in either the horizontal or vertical treatments.

• Logos in all formats are available on the GHNS site

• The frog is an icon, not a character. Do not create a character, or use other frog artwork in relation to RadarFrog.

• When using the name of the site in text, the “R” and the “F” should be capitalized, with no spaces between the two words, RadarFrog.


Suggested Copy Points

• Deals from your/the pond

• Find it. Buy it. Save it. Froggit.

• Ribbiting good deals

• Deals worth jumping on

• Local stores, big deals.

• Hop on big savings.


Next Steps


Next Steps

• Sign up for a free RadarFrog account and browse around

• Develop target list of prospects

• Brainstorm strategies to gain critical mass› We’re here to help

• Tap into best practices from other products – IYP, Zip2Save

• Customize RadarFrog sales collateral for your property

• Identify a local champion to ensure success with this project

• Talk to as many people as you can about RadarFrog – friends, family, members of the community

• SELL!


Questions?


Ribbit

Shannon [email protected] 401-451-

3107

Documents

Proprietary and confidential. Do not distribute.0 Shannon Dunnigan [email protected] 401-451- 3107