This presentation represents Borrell Associates' analysis of Canadian advertising and marketing expenditures in 2011 with forecasts to 2012. It highlights the results of surveys and research conducted from November 2011 to April 2012 to assess the size, trending and forecasts in each Canadian market.

1. Special presentation:
Canadian Ad Spending
May 7, 2012 Ad-Spending Analysis and Forecasts for Canadian Markets

2. About this Presentation
The following presentation was made during a Webinar on May 7, 2012,
by Gordon Borrell, Kip Cassino, Greg Harmon and Andrew Martin from Borrell
Associates. It represents Borrell’s initiation of coverage of the Canadian
Advertising marketplace and the offering of Borrell’s Local Ad Spending Report
(LA$R™) for any local Canadian market. For more information, see the contact
information contained on the final slide.

3. Our Foundation: Research
Determining how much local advertisers actually spend is extremely
difficult but incredibly important in this time of shifting ad dollars.
We do it better than anyone else.

4. Research Components
 Advertisers
 Spending: Database of 25 million companies
 Receipts: Database of 5,700 online media companies
 Verification & Forecasting: Panel of 6,000+ businesses
 Consumers
 Scarborough, Claritas
 Ongoing surveys of web users
 The Real Secret
 We employ a disruptive model

5. The Disruptive Model
 Old Method of Ad-Tracking
 Most employ the traditional “top down” approach
 Offers accurate view of what can be counted
 Certain media companies
 Certain advertisers
 New Method of Ad-Tracking
 Bottom-up approach tracks every business
 Matches it with known media company receipts
 Verifies online estimates against our database of 5,700 companies

6. Market Advertising Data

7. Canadian Marketing Expenditures Trend & Forecast
$50,000
$45,000
$40,000
www.borrellassociates.com
Non-Ad Marketing
$35,000
Forecast
$30,000 Traditional Advertising Down,
$ in 000s
Non-Ad Marketing Up
$25,000
$20,000
Advertising
$15,000
$10,000
$5,000
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F

8. Canadian Ad Spending: 2011
www.borrellassociates.com
2011 Estim ate, as of R4 Data All Estim ates in Canadian $ Millions
National Local Total
Media /Regional Share Share Available Share
Newspapers $441.380 4.6% $2,615.053 38.3% $3,056.433 18.5%
Other Print $597.490 6.2% $171.793 2.5% $769.283 4.7%
Directories $555.212 5.7% $603.894 8.8% $1,159.106 7.0%
Broadcast TV $2,190.544 22.6% $424.055 6.2% $2,614.599 15.8%
Cable TV $1,051.407 10.9% $318.576 4.7% $1,369.984 8.3%
Radio $408.701 4.2% $1,073.719 15.7% $1,482.420 9.0%
Out of Home $490.417 5.1% $73.763 1.1% $564.180 3.4%
Cinema $685.703 7.1% $19.964 0.3% $705.667 4.3%
Direct Mail $1,390.330 14.4% $755.519 11.1% $2,145.849 13.0%
Online $1,736.466 17.9% $686.019 10.0% $2,422.484 14.7%
Telemarketing $139.652 1.4% $90.428 1.3% $230.080 1.4%
2011 Estimate $9,687.302 100% $6,832.783 100% $16,520.085 100%

9. Canadian Ad Spending: 2016
2016 Forecast All Estim ates in Canadian $ Millions
National Local Total
www.borrellassociates.com
Media /Regional Share Share Available Share
Newspapers $348.104 4.1% $2,051.143 33.2% $2,399.247 16.4%
Other Print* $436.817 5.2% $146.128 2.4% $582.945 4.0%
Directories $325.445 3.9% $482.112 7.8% $807.557 5.5%
Broadcast TV $1,540.178 18.3% $230.432 3.7% $1,770.610 12.1%
Cable TV $1,076.893 12.8% $309.068 5.0% $1,385.961 9.5%
Radio $402.728 4.8% $933.767 15.1% $1,336.495 9.1%
Out of Home $523.484 6.2% $83.215 1.3% $606.699 4.1%
Cinema $696.905 8.3% $20.705 0.3% $717.610 4.9%
Direct Mail $1,294.830 15.3% $756.129 12.2% $2,050.959 14.0%
Online $1,653.904 19.6% $1,079.195 17.4% $2,733.099 18.7%
Telemarketing $139.466 1.7% $95.456 1.5% $234.922 1.6%
2016 Forecast $8,438.754 100% $6,187.350 100% $14,626.104 100%
* Includes Alternative/Business New spapers and "Other Publications."

10. Canadian Ad Spending: Change by 2016
National Local Total Forecast
www.borrellassociates.com
/Regional Percent Percent Percent Share Pt
Media Change Change Change Change Change Shift
Newspapers ($93.276) (21.1) ($563.910) (21.6) (21.5) (2.1)
Other Print* ($160.673) (26.9) ($25.665) (14.9) (24.2) (0.7)
Directories ($229.767) (41.4) ($121.782) (20.2) (30.3) (1.5)
Broadcast TV ($650.366) (29.7) ($193.623) (45.7) (32.3) (3.7)
Cable TV $25.486 2.4 ($9.508) (3.0) 1.2 1.2
Radio ($5.973) (1.5) ($139.952) (13.0) (9.8) 0.2
Out of Home $33.067 6.7 $9.452 12.8 7.5 0.7
Cinema $11.202 1.6 $0.741 3.7 1.7 0.6
Direct Mail ($95.500) (6.9) $0.610 0.1 (4.4) 1.0
Online ($82.562) (4.8) $393.176 57.3 12.8 4.0
Telemarketing ($0.186) (0.1) $5.028 5.6 2.1 0.2
Market Total ($1,248.548) (12.9) ($645.433) (9.4) (11.5)

11. Canadian Non-Ad Marketing, 2011
www.borrellassociates.com
2011 Estim ate, as of R4 data All Estim ates in Canadian $ Millions
National Local Total
Spending Category /Regional Share Share Available Share
Promotions $23,628.464 80.1% $11,470.816 89.2% $35,099.280 82.8%
Online Promotions & PR $2,313.200 7.8% $127.612 1.0% $2,440.811 5.8%
Event Marketing $3.950 0.0% $1.191 0.0% $5.141 0.0%
Ad Production $3,287.497 11.1% $1,151.231 9.0% $4,438.728 10.5%
Sales Force Materials $169.820 0.6% $23.965 0.2% $193.785 0.5%
Public Relations $88.098 0.3% $65.891 0.5% $153.989 0.4%
Market Research $25.910 0.1% $12.462 0.1% $38.372 0.1%
2011 Estimate, "Non Ad" Spending $29,516.938 100.0% $12,853.169 100.0% $42,370.107 100.0%
Share 69.7% 30.3% 100%

12. Canadian Marketing Expenditures Trend & Forecast
$50,000
Forecast
$45,000
$40,000
www.borrellassociates.com
Non-Ad Marketing
$35,000
$30,000
$ in 000s
$25,000
$20,000
$15,000
Advertising
Online Advertising
$10,000 Flattens Out and Remains
a Small Share.
$5,000
Online Advertising
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F

13. Individual Market Analyses

14. Snapshot: Vancouver CMA
Market Advertising Data
www.borrellassociates.com

15. Snapshot: Victoria CMA, 2011
www.borrellassociates.com

16. www.borrellassociates.com
Snapshot: Victoria CMA

17. SMB Print Advertiser Survey

18. Change in Spending from 2011 to 2012
58%
57%
52% Grow
43% Stay the Same
40%
39%
34%
30%
26%
26%
16% 16%
15% 14%
14%
13%
12%
9% 10%
9%
7%
3% 4%
2%
Source: © Borrell Associates, Inc. SMB Survey Wave 6, Q4 2011
Total Respondents 247 Question 4

19. Online Adv. Expected to Use in 2012
Total Respondents 202
Source: © Borrell Associates, Inc. SMB Survey Wave 6, Q4 2011
Question 38

20. Local Online Buying: From What Media?
45%
25%
20% 21% 22%
15%
13% 13%
4% 5%
Total Respondents 242
Source: © Borrell Associates, Inc. SMB Survey Wave 6, Q4 2011
Question 6

21. Maintain Social Network?
Don't Know
2%
No
35%
Yes
63%
Total Respondents 228
How many Friends, Fans, Followers, or other users
does your business Social Network have?
Total Respondents 143
Total Mean Median
599,019 5,076 175
Source: © Borrell Associates, Inc. SMB Survey Wave 6, Q4 2011
Questions 13 & 14

22. Been Pitched By Advertiser for Mobile
17%
Don't
know
45%
No
38%
Yes
Total Respondents 210
Source: © Borrell Associates, Inc. SMB Survey Wave 6, Q4 2011
Question 22

23. Contact Information
Andrew Martin
Director of Corporate Development
Phone: 1-416-463-0007
Email: amartin@borrellassociates.com