The Denver Metro Market: Profile, Economics, Media

1
The Denver Metro Market
Profile, Economics, Media
2
Colorados Population is Concentrated in Metro
Denver

• 2.6 million people
• 56 of Colorado
• population
• 59 of Colorado retail
• sales
• 57 of Colorado white
• collar jobs
• Population Density
• 3,646 people/sq.mile
• Balance of state
• 21 people/sq.mile
• Balance of DMA
• 10.6 people/sq.mile

Source 2006 Demographics USA, Colorado Dept. of
Revenue
3
Why Denver is Good for Business
Source 2006 Multi/2007 Denver Scarborough
Reports, 2006 Demographics USA, 2006 Claritas,
Inc.
4
Why Denver is Good for Business
Source 2006 Multi/2007 Denver Scarborough
Reports, 2006 Demographics USA, Colorado Dept. of
Revenue, Bureau of Labor Statistics
5
Denver Is a Top 10 Newspaper Market Total Paid
Circulation
Source ABC FAS-FAX 9/30/2007 (USA Today and
Wall Street Journal excluded daily) Note
Effective 4/15/07, DNA eliminated non-core
other distribution from paid totals. ABC paid
circulation numbers now reflect this change the
valuable core audience remains.
6
Denver Newspapers Rank 1 and 2 for Household
Penetration
2 DAILY 1 SUNDAY
POST/NEWS Metro/NDM Household Penetration
36.1 46.1 1 Newsday
37.0 2 Newsday 43.0 3 Washington
30.0 3 Washington 41.0 4 Cleveland
27.9 4 Minneapolis 38.5 5 Newark
24.3 5 Cleveland 37.4
Source ABC FAS-FAX 9/30/2007
The Denver Newspaper Agency provides higher
household penetration (paid circulation divided
by occupied households) than any other major
newspaper in the nation - 1 Sunday and 2
Monday-Saturday.
7
Newspapers Deliver the Largest Audience Averaging
over a million readers every day
Weekly Cume Read at least once in the past 7
days 1.3 million on last three September annual
reports for Metro Denver
Source 2007 Denver Scarborough Report 2007
Colorado Springs Scarborough Report
Adult Print Reader Audience
8
Newspaper Beats Broadcast TV in Metro
Denver Weekly Reach Comparison
POST NEWS PRINT Television 5AM-2AM M-S Cume 294
Spots per Station (1 spot every half hour
except 2AM to 5AM for a week)
Read at least once a week
Source 2007 Denver Scarborough Report Metro
Denver Adult Reach
Univision 50 MyNetworkTV 20 CW 2
Fox 31 ABC 7
CBS 4 NBC 9
Print
9
Newspaper Beats Cable TV in Metro Denver Weekly
Reach Comparison
POST NEWS PRINT Cable TV 5AM-2AM M-S Cume 294
Spots per Station (1 spot every half hour
except 2AM to 5AM for a week)
Read at least once a week
Source 2007 Denver Scarborough Report Metro
Denver Adult Reach
10
Newspaper Beats Radio in Metro Denver Weekly
Reach Comparison
POST NEWS PRINT Radio 6AM-MID M-S Cume 504
Spots per Station (1 spot every quarter
hour except MID to 6AM for a week)
Read at least once a week
Source 2007 Denver Scarborough Report Metro
Denver Adult Reach
106.7 93.3 103.5
105.9 107.5 105.15
97.3 98.5 101.1
850
11
The Newspaper Denvers Preferred Marketplace
Which ONE advertising source would you rely
on MOST?
Source 2006 MORI Research
12
Internet Update DP.com/RMN.com

• Denver ranks FIRST in the nation for Internet
  access nearly 8 in 10 adults.
• The DNA network of websites ranks FIRST in the
  Denver market with 4.4 million audited unique
  visitors accessing 30 million pages monthly.
• DNA websites are the ONLY audited local sites in
  the Denver market. That means numbers you can
  trust.
• DNA website visitors are the customers you want
  82 are college-educated, 63 are White Collar
  and more than half have incomes of 75,000 per
  year or more.
• Our site visitors can effectively complement the
  reach of our print products. Adding the
  newspaper websites to an advertising buy is
  comparable to adding a broadcast schedule, but
  much more affordable.

Source 2007 Denver Scarborough Report
September 2006 ABCi
13
Reach More Metro Denver Adults with Post/News
Print Editions and Web Sites
Reach of Metro Denver Adults
Source 2007 Denver Scarborough Report, The
Nielsen Company
14
DNA Total Audience at All-Time High Total Print
Audience Monthly Internet Uniques Total Brand
Audience (Weekday Print Saturday Print Sunday
Print Internet Unique Visitors) Combined total
impact from inside and outside the market
Source 2007 Denver and Colorado Springs
Scarborough Reports, Omniture Website Traffic
Reports (monthly average)
Sep-02 Sep-03
Sep-05
Sep-07
15
150 Advertiser Opportunities
Post-News Direct Insert by Zip
Code Post-NewsMarketplace.com Preprint/Insert
Distribution DenverPost.com RockyMountainNews.co
m Special Sections Print Deliver Polybags
Vendor Support Programs Niche Products Front
Page Billboard Ads Comic Advertising Post-It
Notes Advertorial Opportunities Co-Op
Services Multi-Dealer Listings Direct Mail
Programs Commercial Printing Research
Services Promotion Design Customer
Profiling YourHub.com Sports sponsorships Viva
Colorado Sponsorship Partnering
16
Americas 1 Newspaper MarketDenvers 1 Media
ChoiceBoth in Print and Online

• Denver is a Top 10 paid circulation newspaper
  market.
• Denver ranks 1st in the nation for Sunday
  newspaper household penetration and 2nd for
  Monday-Saturday.
• On average, over 1 million adults read every day.
• DNA maintains a 1.3 million weekly cume for Metro
  Denver, more than any other single media outlet.
• The Denver Post and Rocky Mountain News are
  Denvers 1 choice for information and
  advertising.
• DP.com/RMN.com and their related sites are the 1
  online option in the Denver market.
• Our Total Brand Audience is at an all-time high
  for September, and has grown over 32 in five
  years.

17
The Denver Real Estate Market Market
Share Cross-Shopping Customer Profiles Media
Opportunities
18
Home Buyer Target Groups
Base1,957,444 Metro DenverAdults
In current home less than 1 yr
BUY or RENT 8.2 SELL 5.7
Source 2007 Denver Scarborough Report
of Metro Denver Adults
19
Home Buyer Target History

Sources 1998-2007 Denver Scarborough Reports, 12
months ending February

6-mo. measurements
of Metro Denver Adults
20
Renters by Target Category
Base 442,680 Metro Denver Renters
of Metro Denver Renters
Source 2007 Denver Scarborough Report
21
Home Buyer Target Geography
of Metro Denver Adults
Source 2007 Denver Scarborough Report
22
Quintile Analysis for Metro Denver Zip
Codes Market Index Use Real Estate Agent to
Buy/Sell Property, 1yr Quintile 1 Index
211-153 (213,255 HHs) Quintile 2 Index
152-121 Quintile 3 Index 121-100 Quintile
4 Index 96-79 Quintile 5 Index 78-15
23
Household Level Targeting

• One-stop shopping for all your advertising needs
• DNA Direct Marketing Capabilities include
• Database Marketing
• Market Analysis
• Customer Profiling
• List Selection
• Data Processing
• Response Analysis
• Production
• Creative Design Services
• Universal Printing Capabilities
• Mailing/Distribution Services
• Advantages for Advertisers
• The most complete and accurate lists
• Multiple print and distribution partners
• Direct Mail costs count toward your DNA volume
  contract

Database of over 2 million Colorado
households Demographics,
Lifestyles/Interests, Lifestage Clusters
and more!
24
Database SelectsforReal Estate Targeting

• Homeowners/Renters
• Dwelling Type SF/MF
• Length of Residence
• Home Value
• Home Year Built
• Home Purchase Date

• Household Income
• New Home Buyers
• Children in Household
• Do-It-Yourselfers
• Detailed Demographics

25
How Well Do You Know Your Clients? Household
Level Life Stage Segmentation

• PERSONICX places each U.S. household into one of
  70 life stage segments, based on its
  specificconsumer and demographic
  characteristics.
• We can profile YOUR client database using
  PERSONICX.
• Once you see this difference, you can tailor your
  direct marketing programs appropriately and
  accurately find prospects that look like your
  most profitable customers.
• HOUSEHOLD level data, not block-groups or ZIP-4
  level.
• Based on life stage and affluence, the most
  important indicators of home purchasing behavior.
• Driven by Acxiom's InfoBase household data, one
  of the most accurate, current sources of consumer
  data.

26
Home Buyer Target Profiles
MARKET RENTERS NEWCOMERS PLAN TO BUY
USED AGENT
MEN WOMEN 18-34 35-54 55 COLLEGE COLL
GRAD WHITE COLLAR BLUE COLLAR 25K-50K 50K-75K
75K MARRIED WID/DIV/SEP SINGLE HOMEOWNER HISPAN
IC KIDS AT HOME
48 52 50 36- 14- 52- 21- 41- 28 47 15- 14- 38-
17 45 -- 29 43
52 48 53 35- 12- 65 34 46 24 32 20 32- 55- 11- 34
49- 28 52
54 46- 41 44 15- 74 36 67 15- 28 18 47 60
8- 31 55- 14- 47
57 43- 36 43 21- 70 36 47 23 24- 19 54 67
8- 25 82 13- 39
50 50 33 41 26 65 36 47 22 29 21 40 59 15 26 74 19
42
of Metro Denver Adults
Source 2007 Denver Scarborough Report
27
Plan to Buy Home Lifestyles
Top 3 by Index
1. Rock concert - 174 2. Comedy/night club -
167 3. Jogging running - 165
of Metro Denver Adults who Plan to Buy Home
INTERNET USE
PRO SPORTS EVENTS
GO TO MOVIES
CONCERTS
GARDENING
PHOTOGRAPHY
WEIGHT TRAINING
DINING OUT
MUSEUMS
JOGGING RUNNING
Source 2007 Denver Scarborough Report
INDEX 118 111 91
133 91 139 156
107 104 165
28
Plan to Buy Home Shopping Patterns
MARKET AVERAGE
Source 2007 Denver Scarborough Report
Index of Metro Denver Adults who Plan to Buy Home
29
Plan to Buy Home Internet Use
MARKET AVERAGE
Source 2007 Denver Scarborough Report
Index of Metro Denver Adults Who Plan to Buy Home
30
Real Estate Sites Would Visit
DNA sites rank 1 for Real Estate
information if considering purchase
Source MORI Denver Strategic Study
of Metro Denver Adults with Internet Access
31
Source Relied On Most
Which ONE advertising source would
you rely on MOST? NEW AND
RESALE HOMES
Denver Post Rocky Mountain
News (print)
59
Source 2006 MORI Research
32
Reach More Adults Who Used Agent with Post/News
Print Editions and Web Sites
Reach of Metro Denver Adults Who Used Real
Estate Agent Past Year
Source 2007 Denver Scarborough Report
33
Used Agent Section Readership
MARKET AVERAGE
Source 2007 Denver Scarborough Report
Index of Metro Denver Adults Who Used Real Estate
Agent Past Year Read Daily Post/News
34
Denver Real Estate Summary

• Metro Denver is still the tenth fastest-growing
  market in the nation. Our population is on pace
  to grow by 8 (200,000) over the next 5 years.
  129,000 people who are already here say they plan
  on buying real estate in the next 12 months.
• Denvers real estate market is in a real state
  of flux. Market growth fueled by moderate job
  growth is projected for 2008, but cautious
  consumer confidence, the current credit crisis
  and a slow-moving economy keep the plan to buy
  segment well under the 10 mark we like to see.
  Renters are at an all-time low, sales and
  building permits are down and 2007 foreclosures
  have passed the 1988 record. Reported realtor
  use is only about half what it was in 1998.
• Four in ten renters are newcomers, but only 13
  of renters plan to buy.
• Renters are still high in Denver County, though
  more evenly distributed than in the past. The
  Plan to Buy group is under-represented in
  Denver and Boulder, while agent use is above
  average in Jefferson and low in Denver County.

35
Denver Real Estate Summary (cont.)

• Renters and newcomers are both very young
  groups, but at least two-thirds of renters must
  be considered financially challenged. Three
  out of every ten renters and newcomers are
  Hispanic.
• The Plan to Buy group is also younger than
  the market, but this group is more educated,
  affluent and married with children. Most
  importantly, over half of all prospective buyers
  already own a home.
• Internet Use has increased as the number one
  leisure activity among adults planning a home buy
  in the next 12 months and DNA sites rank FIRST
  for real estate information. Online habits point
  clearly to purchase intent and home research
  activity. Other top lifestyle variables point to
  promotional opportunities with sports, concerts,
  photography and fitness.
• Metro Denver adults with current or recent
  realtor use exhibit specific reading habits that
  could lead to more effective message placement.
• Print and Internet dominate target category
  media choices. This media research points to
  more targeted advertising and marketing
  opportunities.

36
Recommendations

• Keep a close eye on geographic growth patterns
  market growth is still our ace in the hole
  and most indicators still point toward entry
  level sales opportunities.
• Investigate the widening disconnect between
  agents and buyers. Is it the sell it yourself
  competition? What is it about the young buyer
  audience? The real estate industry needs its own
  promotional campaign to overcome reluctant
  consumer confidence. Why is it good to buy? Why
  do you need an agent?
• Target renters with caution get more data and
  be specific.
• Segment sales and marketing plans by category
  there are many different prospective buyer groups
  (women, seniors, singles, young families, etc.),
  all with different needs and situations. Why
  would we market to them as if they were all the
  same? This may represent the largest opportunity
  in the industry.
• 55 of prospective buyers already own a home.
  Develop and promote more creative contingency
  contracts. Finance options are more important
  now than ever.
• The category lacks a solid Hispanic marketing
  strategy.
• Be sure to have a sound, utilitarian and
  well-represented Internet presence. Nine out of
  10 prospective buyers are active web users.
  Because there are so many different prospective
  buyer groups, online efforts should be segmented
  as well.

37
Sources Methodology

• SYNDICATED SCARBOROUGH REPORTS 2,061 randomly
  selected
• Metro Denver adult telephone interviews followed
  by mail questionnaire. Study conducted
  continuously September 2006 August 2007. Other
  Scarborough clients include Macys, Dicks
  Sporting Goods and Coca-Cola.
• CUSTOM MARKET RESEARCH - Utilizing the
  industrys most respected and recognized
  consulting and research firms such as Belden
  Associates, Market Perspective, MORI Research,
  AdAudit and Nielsen Media Research, the Denver
  Newspaper Agency conducts custom local research
  in a number of specialized areas including
  retail habits, lifestyles and media usage.
• DEMOGRAPHICS U.S.A. One of the nations
  leading suppliers of projected Census
  information and trending data by specific
  geographies.
• CLARITAS, INC. - A pinpoint marketing/lifestyle
  database. Other clients include
• Dell, Hewlett-Packard, Nordstrom, Ace Hardware,
  Qwest and Toyota.

38
Denver Newspaper Agency Research Services

• GEOGRAPHIC ANALYSIS
• NEWS INTEREST PROFILES
• LIFESTYLE INDEXING
• RETAIL SALES POTENTIAL
• MEDIA SCHEDULE ANALYSIS
• DATABASE SERVICES
• COMMUNITY/CIVIC PROGRAMS
• CUSTOM LOCAL RESEARCH

• CUSTOMER PROFILING
• MARKET FACTS and TRENDS
• CUSTOM PRESENTATIONS
• SHOPPER PROFILES
• MARKET POTENTIAL
• SITE SELECTION
• FOCUS GROUPS

Direct Dial Market Hotline
[phone] mbaldwin_at_DenverNewspaperAgency.com