“Looking Forward”

Nina LinkPresident and Chief Executive Officer

Magazine Publishers of America

PaperCon 2010Hyatt Regency, Atlanta

May 2, 2010

Looking Forward

Going the way of…

Magazine Readership

Magazine Readers – Adults 18+

Number of Readers (Millions) 181,595 189,487

Index 100 104

20092005

Magazine Readers – Ages 18-34

Number of Readers (Millions) 58,916 60,306

Index 100 102

2005 2009

Source: Experian Simmons; Mediamark Research & Intelligence

92% of U.S. Adults

Read Print Magazines

Assessing Ad Impact of Multiple Media

Source: Dynamic Logic

New Analysis from Dynamic Logic

• Overall, magazines drove consumer behavior more effectively and efficiently than TV or online among consumers who were reached by each medium.

– For effectiveness, magazines were the most consistent performer across all three media, contributing significant lift overall and at each stage of the consumer purchase decision process.

– This held true for the consumer packaged goods category as well as non-packaged goods.

– Magazines were the most efficient medium at driving consumer behavior, both individually as well as in combination with othermedia.

75% of Teens Read Magazines

Launches, Closings and Resurrections

2009 2008 Change

734 685 7.2%

LAUNCHES

CLOSINGS

2009 2008 Change

67 54 24.1%

RESURRECTIONS

Source: Mr.Magazine; Ulrich’s Pubs, Serial Solutions

Readers Enjoy ALL Magazine Content:

the Edit and the Ads

Magazines ≠ Newspapers

Effects of the Economic Recession on Magazines

FY 2009 Magazine Print Advertising

0

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,000

5,000,000,000

6,000,000,000

Q1

2009

Q2

2009

Q3

2009

Q4

2009

Revenue in Billions

Ad Spending Uptick in Fourth Quarter

MAGAZINE 2009 TOTAL AD REVENUE: $19.5 BILLION ���� -18%

Source: Publishers Information Bureau

Source: Publishers Information Bureau

# OF MAGAZINES THAT POSTED AD PAGE GAINS

Q1 2010 Q1 2009

86 15

Q1 2010 Magazine Print AdvertisingMore Individual Titles Show Growth

Circulation

FY 2009 FY 2008 CHANGE

ABC-Audited

Magazines346,571,912 368,363,773 -5.9%

• Total average circulation declines for the first time

• Softness partly driven by the reduced number of audited titles

• Other factors are magazine closings and rate base reductions

Source: Audit Bureau of Circulations

Newsstand Circulation

• Major News Events– Michael Jackson on covers:

extra $55 million in sales

Source: Harrington Associates; Advertising Age

All Magazines FY 2009vs.

2008

Dollar Sales $4.44 billion -8.1%

Unit Sales 1.11 billion -12.6%

• Challenges– Recession

– Shift in shopping patterns

– Distribution disruption in first half

Circulation Winners

HEALTH MAGAZINESHEALTH MAGAZINES WOMEN’S MAGAZINESWOMEN’S MAGAZINES

“Magazines, The Power of Print”

• Reshape conversations about magazines

• Challenge misperceptions about magazine relevancy

• Reinforce cultural role of magazines

Goals of Industry Ad Campaign

“Magazines, The Power of Print”

“Magazines, The Power of Print”

“Magazines, The Power of Print”

TAG | MOBILE CODESTAG | MOBILE CODES

The Digital Connection

PRINT � WEB

AUGEMENTED REALITY | 3DAUGEMENTED REALITY | 3D

Amazon.com Partnership

Magazine Covers of the Year

2009 Best Covers of the Year

Cover of the YearCover of the Year

Best Entertainment|

Celebrity Cover

Best Entertainment|

Celebrity CoverBest News CoverBest News Cover

Industry Retail Promotion

Magazine Industry + Harrisburg News

• 15% rise in magazine category sales and up to 60%

lift in sales for special-display titles

Web-Sourced Subscriptions

20% of magazine subscriptions come from online20% of magazine subscriptions come from online

Web � Print

Magazine Content on Any Platform

Magazines in a Multi-Platform World

Thank You

Nina LinkPresident and Chief Executive Officer

Magazine Publishers of America