APME CREDIBILITY PROJECT 1 APME Online Credibility Project

APME CREDIBILITY PROJECT 1 APME Online Credibility Project: Impact of Contextual Advertising September 2, 2009 STC Strategic Research Dept.

APME CREDIBILITY PROJECT Background, Objectives and Methodology 2

APME CREDIBILITY PROJECT Background and Objectives • As part of a national project to understand credibility and online journalism, the Associated Press Managing Editors (APME), partnered with The Seattle Times Company to better understand the relationship between contextual advertising and online journalism • Kathy Best, managing editor for digital news at The Seattle Times, spearheaded the project, working with Janet Farness and her corporate strategic research team and Laura Mc. Adoo and her design and human factors team in the company's New Media division • The goal of the research was to better understand the relationship and interplay of news and contextual advertising and their specific effects on credibility. • Exploring the impact of different types of contextual advertising forms • Understanding the impact of contextual advertising in different online content sections 3

APME CREDIBILITY PROJECT 4 Methodology This multi methodology study involved both qualitative and quantitative research • A quantitative survey was in the field July 15 -August 6, 2009 in Two Waves/Versions • Intercept surveys were in the field on Seattle. Times. com using in-house advertising positions • Invitations were sent to Voice. NW, a proprietary online panel managed by Ipsos Total sample – N=1, 239 Survey A – 716 n Survey B – 523 n In Field: July 16 - July 30 In Field: July 23 - August 6 Intercept Voice. NW n=524 n=192 n=341 n=182 • A set of two focus groups was held August 11, 2009 at The Seattle Times Co. offices • Participants were recruited from respondents to the online intercept study on Seattle. Times. com • One group each with men and women ages 25 -64 • Each group lasted approximately 90 minutes and was moderated by Janet Farness of Strategic Research • Participants were paid $50 for their time and opinions

APME CREDIBILITY PROJECT Methodology (cont’d) • For the purposes of this research, we are defining contextual advertising as a somewhat newer form of advertising on the web that takes into consideration the context of the site, a page or a search query, to display ads from advertisers that correspond to the topic. Its usual form is text -based, using regular hyperlinks, sometimes small graphics and brief descriptions to attract users that may be interested • A total of 17 contextual ad forms were evaluated by respondents. This research study did not set out to test all possible variables due to limitations in time and budget, especially relating to respondent experience and fatigue • While a total of 1, 239 responses to the survey were obtained, the results are not projectable to the whole Internet population. However, statistical differences between aggregated responses to various ad forms have been detected and are reported on • The inclusion of focus groups, though limited in number, provided an additional level of insight that helped inform the survey data and give a better overall understanding of the impacts of contextual advertising 5

APME CREDIBILITY PROJECT Key Findings 6

APME CREDIBILITY PROJECT Key Findings Two-thirds (65%) of survey participants rely on Seattle. Times. com as one of many online news resources • More than one in five (23%) rely on it as their primary resource Over three quarters (79%) find the content of Seattle. Times. com trustworthy • Eight in ten (79%) find The Seattle Times print edition content trustworthy Respondents see value in online advertising • When asked their opinions on online advertising in general, fewer than one in five (17%) said none of the advertising they have seen is of value to them • Over one-third (36%) said that they find some or a lot of online advertising to be of value Overall, respondents are open to contextual advertising online • Seven in ten (69%) said that online advertising that is relevant to the story or content increases the value of those ads • Ratings of advertisements and comments by focus group participants also support this openness to relevant advertising 7

APME CREDIBILITY PROJECT Key Findings Contextual advertising can help optimize the value of the page for both the content creator and the advertiser • When executed properly, it can enhance the perceived credibility and relevance of both the news content and the advertisement • Best case scenarios for successful contextual advertising include: • Local focus • Advertising that is clearly identifiable as such • Content or information relevant to the surrounding page • Ad design that highlights the relevancy of the advertiser or message • When contextual advertising misses the mark, readers notice the disconnect • Embedding advertising in content should be approached with caution – embedded content should be relevant to the page 8

APME CREDIBILITY PROJECT Key Findings Most respondents reported the ads tested did not impact their impression of credibility and relevance of the page • That said, some ads tested impacted – either positively or negatively – respondents’ assessments of the pages’ credibility • In general, story pages pose much greater risks for contextual advertising than index pages • As with all advertising, attention must be paid to the people who can be influenced, moving them more toward a positive and reducing the possible negative impacts 9

APME CREDIBILITY PROJECT Key Findings Factors influencing respondents’ impressions included: • Position on the page • Survey respondents cited page position most often (31%) as the factor influencing their assessment of contextual advertising • More respondents noticed advertisements in the right column of the page (68%) compared to advertisements in the center/content area of the page (41%) • Ads in the right column had a slightly greater negative impact on credibility (23% compared to 16% for ads in the main content area) • Focus group respondents noted that they tend to tune out the entire right hand side of the page online, assuming that it is all advertising. However, when asked to identify advertising on a page, many sought it out in the right column position. • Context (page type) • Respondents were more likely to say that ads decreased content credibility when the ads were on story pages compared to index pages • Story pages (25%) • Index pages (13%) • Survey respondents rated story pages overall as more interesting than index pages tested, and focus group respondents echoed this opinion • Increased levels of engagement with the page seemed to have an impact on credibility and relevance, as readers are more sensitive to and draw deeper connections to the overall relationships of content on the page. • Reflects the difference in engagement and behavior when reading versus scanning a page 10

APME CREDIBILITY PROJECT Key Findings Factors influencing respondents’ impressions included: • Context (topic) • Respondents were more likely to say that ads decreased content credibility when the ads were in hard news or investigative sections. • Politics (25%) • Health (24%) • Respondents were less likely to say that ads decreased content credibility when the ads were in “soft news” sections. • Travel (18%) • Entertainment (9%) • Focus group participants noted having a different, more stringent standard upon which they judge hard news versus softer news sections, such as sports, living or entertainment • Regardless of hard news or soft, there is a point at which ads become too relevant to content • The political display ad for Doug Sutherland sparked a stronger reaction than the Rossi ad tested, showing that relevant ads tied to negative articles can create a negative impression of the ad, and in some cases, of the Seattle Times newsroom. • The use of too many contextual ads or even a single, large ad by a related company, such as the Bastyr ads that appeared on the health story page about a new Bastyr partnership, created the appearance of "pay for play'' among some focus group participants. 11

APME CREDIBILITY PROJECT Key Findings Factors influencing respondents’ impressions included: • Ad design • More respondents noticed advertisements with graphics or photos (64%) compared to text-only advertisements (36%) • Display ads with graphics or photos had greater negative impact on credibility (30% compared to 16% for text-only ads) • Participants in the focus groups showed the potential for confusion in ad and page design • Ads very similar to content on the page were often noticed • Use of color, photographs and other callouts tied to content were sometimes seen as ads • Though labeling is important to diminish confusion between advertisements and content, the choice and wording of those labels can impact credibility • ‘Featured Sponsors’ and ‘Special Advertising Section’ can be negatives, especially if the content featured is not relevant to surrounding content on the page 12

APME CREDIBILITY PROJECT Key Findings Factors influencing respondents’ impressions included: • Ad format • Display ads had the greatest negative impact (30%) on credibility compared to other ad formats, but they also had the second-greatest positive impact (21%) on relevance of the page • Display ads were the most noticed ad format (81%) • This ad format sparked conversation and division among focus group participants. The ads tended to be more relevant to the stories on the page, making them slightly more polarizing than other ad forms tested. Participants could see the ads as either very helpful and relevant or too relevant to the point of intrusiveness or bias. • Contextual modules (2%) and text/graphic (1%) formats had the greatest positive net effect on the credibility of the advertisement • While seen as a generally positive and useful format, there is potential for negative impact according to focus group participants who said that forms that would take them to a site they do not know well (cheapflights. com) or for an advertiser they associate with spam (equifax. com) affect their impression of the page and content provider • Navigation links were noticed by the fewest respondents (9%), upon first review of the page, and had little net impact on credibility (2%) • Focus group participants noted the value of these links could be enhanced by local content, though they would not want to see them overused 13

APME CREDIBILITY PROJECT Key Findings Ad Format (continued): • Google ads were noticed by many and had very little positive or negative impact on the article they were placed with. It seems to indicate a blindness to or tolerance of the very prevalent ad type. However, relevant content surrounding Google ads can increase their credibility. 14

APME CREDIBILITY PROJECT Detailed Findings - General Information 15

APME CREDIBILITY PROJECT 16 For most respondents, Seattle. Times. com is one of many news resources used online Q: Which of the following best describes your relationship with Seattle. Times. com? Please select one response. Source: Ipsos Insight, July 2009 Base: Total n=1239, Intercept n=865, Voice. NW n=374

APME CREDIBILITY PROJECT 17 Nearly eight in ten (79%) find Seattle. Times. com trustworthy (Top 2 box) 79% 80% Q: Based on what you know or may have heard, indicate how trustworthy you personally feel the contents of The Seattle Times are in print and online. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Total n=1239 (DK removed)

APME CREDIBILITY PROJECT 18 One-third (34%) find some online advertising valuable. Only 17% find “none of the online advertising” of value. Q: In general, how do you feel about online advertising? Please select one response. Source: Ipsos Insight, July 2009 Base: Total n=1239

APME CREDIBILITY PROJECT 19 More than two-thirds (69%) feel contextually relevant advertisements increase the value of those ads 69% Q: Sometimes you will see online advertising that is relevant to the story or content you are reading. When online advertising is relevant to the content surrounding it, how does that affect your impressions of the online advertisement? Ads relevant to surrounding content…Please select one response. Source: Ipsos Insight, July 2009 Base: Total n=1239

APME CREDIBILITY PROJECT Detailed Findings - Travel Index Assessment 20

APME CREDIBILITY PROJECT 21 More than half of respondents find the Travel Index page credible (Top 2 Box) Q: Please rate how well each of the following attributes describes the page you just saw on a 1 to 5 scale. Source: Ipsos Insight, July 2009 Base: Total, n=619, Version A n=358, Version B n=261

APME CREDIBILITY PROJECT 22 Half (53%) of respondents noticed the ad on their first viewing Contextual Module Form – (Book a Trip) Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Version A n=358

APME CREDIBILITY PROJECT For Most (64%) the Book A Trip module did not affect their opinion of the page Q: Please indicate whether the sponsored message on the page affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version A n=358 23

APME CREDIBILITY PROJECT 24 Position on the page and size of the element most affected page impression Q: Specifically, what aspects of the sponsored message affected your impression of the page? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Version A n=358

APME CREDIBILITY PROJECT Seven in ten (72%) said the travel information on the page did not affect their opinion of the Book A Trip module Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version A n=358 25

APME CREDIBILITY PROJECT 26 Three-quarters (74%) of respondents did notice the ad on their first viewing Text Banners in Main Content Area Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Version A n=358

APME CREDIBILITY PROJECT Slightly more than one quarter (27%) felt the text banners decreased their opinion of the page’s credibility Q: Please indicate whether the sponsored message on the page affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Version A: Total n=358 27

APME CREDIBILITY PROJECT 28 Position on the page and content most affected page impression Q: Specifically, what aspects of the sponsored message affected your impression of the page? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Version A n=358

APME CREDIBILITY PROJECT One in six (16%) said the travel information on the page decreased their opinion of the Text Banners in Main Content Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version A n=358 29

APME CREDIBILITY PROJECT 30 Two in five (39%) of respondents noticed the ad on their first viewing Text Link in Main Content Area – Travel Leavenworth Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Version A n=358

APME CREDIBILITY PROJECT Nearly one in five (18%) found the text links increased (Top 2 Box) credibility of the page Q: Please indicate whether the sponsored message on the page affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version A n=358 31

APME CREDIBILITY PROJECT 32 Position on the page and content most affected page impression Q: Specifically, what aspects of the sponsored message affected your impression of the page? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Version A n=358

APME CREDIBILITY PROJECT Nearly one in five (18%) said the travel information on the page increased (top 2 box) the credibility of the Text Links in Main Content Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version A n=358 33

APME CREDIBILITY PROJECT 34 One in three (31%) respondents noticed the ad on their first viewing Contextual Module – Text/Graphic (Cruise Deals) Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Version B n=261

APME CREDIBILITY PROJECT One in six (16%) felt the Cruise Deals module decreased the credibility of the page Q: Please indicate whether the sponsored message on the page affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=261 35

APME CREDIBILITY PROJECT 36 Position on the page and size of the element most affected page impression Q: Specifically, what aspects of the sponsored message affected your impression of the page? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Version B n=261

APME CREDIBILITY PROJECT Three quarters (74%) said the travel information on the page did not affect their opinion of the Cruise Deals module Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=261 37

APME CREDIBILITY PROJECT 38 Seven in ten (72%) respondents noticed the Text/Graphic ad stack ad on their first viewing Text/Graphic Ad Stack – Travel Advertisers Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Version B n=261

APME CREDIBILITY PROJECT One in six (17%) felt the Ad Stack decreased the credibility of the page but was seen as Useful and Relevant by nearly one quarter (23%) Q: Please indicate whether the sponsored message on the page affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=261 39

APME CREDIBILITY PROJECT 40 Position on the page and graphic design of the element most affected page impression Q: Specifically, what aspects of the sponsored message affected your impression of the page? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Version B n=261

APME CREDIBILITY PROJECT Three quarters (74%) said the travel information on the page did not affect their opinion of the Text/Graphic Ad Stack module Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=261 41

APME CREDIBILITY PROJECT Detailed Findings - Health Story Assessment 42

APME CREDIBILITY PROJECT 43 Half of respondents find the Health Story page credible Q: Please rate how well each of the following attributes describes the page you just saw on a 1 to 5 scale. Source: Ipsos Insight, July 2009 Base: Total, n=619, Version A n=358, Version B n=261

APME CREDIBILITY PROJECT 44 More than two-thirds of respondents find the Health Story credible (Top 2 Box) Q: Please rate how well each of the following attributes describes the page you just saw on a 1 to 5 scale. Source: Ipsos Insight, July 2009 Base: Total, n=334, Version A n=200, Version B n=134

APME CREDIBILITY PROJECT 45 Eight in ten (79%) respondents noticed the Display Ad on their first viewing Display Ad Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Total 619, Version A n=358, Version B n=261

APME CREDIBILITY PROJECT 46 While increasing the relevance of the article, the Bastyr display ad decreased the credibility of the article Ad Effect on Article – Display Ad (Bastyr) Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Total 619, Version A n=358, Version B n=261

APME CREDIBILITY PROJECT 47 Content, above all, most affected page impression Q: Specifically, what aspects of the sponsored message affected your impression of the article? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Total 619, Version A n=358, Version B n=261

APME CREDIBILITY PROJECT 48 The health article had no net impact on the Bastyr display ad’s credibility but increased the ad’s relevance and usefulness Effect of Article on Ad – Display Ad (Bastyr) Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Total 619, Version A n=358, Version B n=261

APME CREDIBILITY PROJECT 49 Six in ten (62%) of respondents noticed the ad on their first viewing Traditional Ad Links Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Version A n=358

APME CREDIBILITY PROJECT Eight in ten (83%) felt ad links had no effect on their opinion of the article’s credibility Q: Please indicate whether the sponsored message on the page affected your opinion of the article on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version A n=358 50

APME CREDIBILITY PROJECT 51 Position on the page and content most affected article impression Q: Specifically, what aspects of the sponsored message affected your impression of the article? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Version A n=358

APME CREDIBILITY PROJECT One in ten (13%) said the health story on the page increased (top 2 box) their opinion of the Traditional Ad Links’ credibility Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version A n=358 52

APME CREDIBILITY PROJECT 53 More than half (56%) of respondents noticed the Text Link Ad Stack on their first viewing Text Link Ad Stack (Featured Sponsors) Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Version B n=261

APME CREDIBILITY PROJECT One quarter (25%) said the Text Link Ad Stack decreased their opinion of the article’s credibility Q: Please indicate whether the sponsored message on the page affected your opinion of the article on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=261 54

APME CREDIBILITY PROJECT 55 Position on the page and content most affected article impression Q: Specifically, what aspects of the sponsored message affected your impression of the article? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Version B n=261

APME CREDIBILITY PROJECT One in five (18%) said the health story on the page decreased their opinion of the Text Link Ad Stack’s credibility Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=261 56

APME CREDIBILITY PROJECT Detailed Findings - Entertainment Index Assessment 57

APME CREDIBILITY PROJECT 58 Half of respondents find the Entertainment Index page credible Q: Please rate how well each of the following attributes describes the page you just saw on a 1 to 5 scale. Source: Ipsos Insight, July 2009 Base: Total, n=620, Version A n=358, Version B n=262

APME CREDIBILITY PROJECT 59 Half (46%) of respondents noticed the ad on their first viewing Contextual Module – Text/Graphic Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Total n=358

APME CREDIBILITY PROJECT One in five (19%) felt the contextual module increased their opinion of the page’s credibility Q: Please indicate whether the sponsored message on the page affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Total n=358 60

APME CREDIBILITY PROJECT 61 Content, graphic design and position on the page most affected page impression Q: Specifically, what aspects of the sponsored message affected your impression of the page? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Total n=358

APME CREDIBILITY PROJECT One in five (18%) said the entertainment information on the page increased (top 2 box) the credibility of the Text/Graphic Module Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Total n=358 62

APME CREDIBILITY PROJECT 63 Nine in ten (91%) of respondents did notice the Nav Link ad on their first viewing of the page Navigation Link Ad Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Total n=358

APME CREDIBILITY PROJECT One in ten felt the nav link ad increased the page’s credibility Q: Please indicate whether the sponsored message on the page affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Total n=358 64

APME CREDIBILITY PROJECT 65 Position on the page and size most affected impression of the page Q: Specifically, what aspects of the sponsored message affected your impression of the page? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Total n=358

APME CREDIBILITY PROJECT The entertainment information surrounding the Nav Link ad has equal positive and negative impact on credibility; both are small Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Total n=358 66

APME CREDIBILITY PROJECT 67 One quarter (26%) of respondents noticed the Text Banner ad on their first viewing of the page Text Banner Ad Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Total n=358

APME CREDIBILITY PROJECT More than one in ten (12%) felt the Text Banner ad decreased the page’s credibility Q: Please indicate whether the sponsored message on the page affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Total n=358 68

APME CREDIBILITY PROJECT 69 Position on the page and content most affected impression of the page Q: Specifically, what aspects of the sponsored message affected your impression of the page? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Total n=358

APME CREDIBILITY PROJECT The entertainment information surrounding the ad lends a slight (6%) increase to the Text Banner ad’s credibility and usefulness Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Total n=358 70

APME CREDIBILITY PROJECT 71 Eight in ten (81%) respondents did notice the Text Link Ad in Main Content Area on their first viewing of the page Text Link Ad in Main Content Area Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Version B n=262

APME CREDIBILITY PROJECT One-sixth (15%) felt the Text Link Ad in Main Content area increased the page’s credibility Q: Please indicate whether the sponsored message on the page affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=262 72

APME CREDIBILITY PROJECT 73 Position on the page and size most affected impression of the page Q: Specifically, what aspects of the sponsored message affected your impression of the page? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Version B n=262

APME CREDIBILITY PROJECT One-sixth (16%) feel the credibility of the Text Link in Main Content Area was increased by the surrounding entertainment information Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=262 74

APME CREDIBILITY PROJECT 75 Six in ten (58%) respondents noticed the Text/Graphic Combo Ad on their first viewing of the page Text/Graphic Combo Ad Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Version B n=262

APME CREDIBILITY PROJECT More than one in ten (14%) felt the Text/Graphic Combo ad increased the Entertainment Index page’s credibility Q: Please indicate whether the sponsored message on the page affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=262 76

APME CREDIBILITY PROJECT 77 Graphic design and position on the page most affected impression of the page Q: Specifically, what aspects of the sponsored message affected your impression of the page? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Version B n=262

APME CREDIBILITY PROJECT The credibility of the Text/Graphic Combo Ad was increased (13%) by the surrounding entertainment information Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=262 78

APME CREDIBILITY PROJECT Detailed Findings - Political Story Assessment 79

APME CREDIBILITY PROJECT 80 Six in ten (63%) respondents find the Political Story page credible Q: Please rate how well each of the following attributes describes the page you just saw on a 1 to 5 scale. Source: Ipsos Insight, July 2009 Base: Total, n=20, Version A n=358, Version B n=262

APME CREDIBILITY PROJECT 81 Nearly eight in ten (77%) respondents find the Political Story credible (Top 2 Box) Q: Please rate how well each of the following attributes describes the page you just saw on a 1 to 5 scale. Source: Ipsos Insight, July 2009 Base: Total, n=349, Version A n=209, Version B n=140

APME CREDIBILITY PROJECT 82 Nine out of ten (86%) of respondents noticed the ad on their first viewing Display Ad – Candidate Endorsement Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Total n=358

APME CREDIBILITY PROJECT One third (32%) felt the candidate endorsement decreased their opinion of the article’s credibility Q: Please indicate whether the sponsored message on the page affected your opinion of the article on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Total n=358 83

APME CREDIBILITY PROJECT 84 The size, position on the page and content most affected the impression of the article Q: Specifically, what aspects of the sponsored message affected your impression of the article? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Total n=358

APME CREDIBILITY PROJECT Three in ten (28%) said the political story on the page decreased (low 2 box) their opinion of the credibility of the Candidate Endorsement Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Total n=358 85

APME CREDIBILITY PROJECT 86 Three-quarters (74%) of respondents noticed the ad on their first viewing Display Ad – General Endorsement Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Version B n=262

APME CREDIBILITY PROJECT One in five (23%) felt the Display ad decreased their opinion of the article’s credibility Q: Please indicate whether the sponsored message on the page affected your opinion of the article on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=262 87

APME CREDIBILITY PROJECT 88 The size, content and design of the display ad most affected the impression of the article Q: Specifically, what aspects of the sponsored message affected your impression of the article? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Version B n=262

APME CREDIBILITY PROJECT One in five (18%) said the political story on the page decreased (low 2 box) their opinion of the credibility of the General Endorsement Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version A n=262 89

APME CREDIBILITY PROJECT 90 Seven in ten (72%) respondents did notice the ad on their first viewing Text Link Ad Stack – Special Advertising Section Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Total n=358

APME CREDIBILITY PROJECT One in five (20%) felt the ad stack decreased their opinion of the page’s credibility Q: Please indicate whether the sponsored message on the page affected your opinion of the article on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Total n=358 91

APME CREDIBILITY PROJECT 92 Content and position on the page most affected the impression of the article Q: Specifically, what aspects of the sponsored message affected your impression of the article? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Total n=358

APME CREDIBILITY PROJECT One in five (18%) said the political story on the page decreased (low 2 box) their opinion of the credibility of the Special Advertising Section ad stack Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Total n=358 93

APME CREDIBILITY PROJECT 94 Nine in Ten (87%) respondents noticed the ad on their first viewing Keyword in Text – Weyerhaeuser Jobs Q: When you first viewed the original test page, did you notice the sponsored message that is now highlighted in red? Source: Ipsos Insight, July 2009 Base: Version B n=262

APME CREDIBILITY PROJECT Nearly half (47%) felt the Keyword in Text ad decreased the credibility of the page Q: Please indicate whether the sponsored message on the page affected your opinion of the article on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version B n=262 95

APME CREDIBILITY PROJECT 96 The position, content and size of the ad most affected the impression of the article Q: Specifically, what aspects of the sponsored message affected your impression of the article? Please select all that apply. Source: Ipsos Insight, July 2009 Base: Version B n=262

APME CREDIBILITY PROJECT One in three (32%) said the political story on the page decreased their opinion of the Keyword in Text’s credibility Q: Thinking about it a different way, please indicate whether the information on the page surrounding the sponsored message affected your opinion of the page on the following factors. Please select one response for each. Source: Ipsos Insight, July 2009 Base: Version A n=262 97

APME CREDIBILITY PROJECT Demographics 98

APME CREDIBILITY PROJECT 99 Demographic profile Total Sample Version A Version B Intercept Voice. NW (N=1, 239) (n=716) (n=523) (n=865) (n=374) Gender % % % Male 57 58 55 59 51 Female 44 43 45 41 49 Age % % % 18 -24 2 1 3 3 1 25 -34 12 10 14 11 13 35 -44 20 18 23 19 21 45 -54 29 30 28 29 30 55 -64 25 28 21 26 23 65+ 12 14 11 12 13 Time Spent Online Hrs. Mean Time 21. 2 21. 8 20. 5 21. 3 21. 2

APME CREDIBILITY PROJECT 100 Demographic profile Total Sample Version A Version B Intercept Voice. NW (N=1, 239) (n=716) (n=523) (n=865) (n=374) Education (nets) % % % Trade/HS or less 6 5 6 6 4 Some college 23 22 24 24 21 4 year degree 27 24 32 26 29 Post graduate 45 49 39 44 46 Time Spent Online % % % Under $35, 000 9 9 8 9 7 $35, 000 -$49, 999 9 8 12 10 8 $50, 000 -$74, 999 18 19 16 18 17 $75, 000 -$99, 999 17 17 18 $100, 000 -$149, 999 17 18 16 17 17 $150, 000 or more 12 13 11 12 14 DK/Refused 19 18 19 19 18

APME CREDIBILITY PROJECT 101 Demographic profile Total Sample Version A Version B Intercept Voice. NW (N=1, 239) (n=716) (n=523) (n=865) (n=374) Ethnicity % % % Hispanic/Latino 2 2 2 Asian/Pacific Islander 4 5 3 4 4 Black, African American 2 1 2 2 2 White, Caucasian 80 82 77 78 83 American Indian 1 1 1 Other Race 2 1 3 2 1 Refused 10 8 12 11 8 State of Residence % % % Washington State 86 84 90 81 100 Other State 14 16 10 19 --

APME CREDIBILITY PROJECT Detailed Findings - Focus Groups 102

APME CREDIBILITY PROJECT 103 What is an ad? – Page 1 Noticed Avg Rank Wicked 14 4. 5 World Market 13 3. 4 Ads By Google 12 1. 9 Find Open Houses 12 2. 4 Find Your Happy Place 9 6. 0 Verizon 8 2. 9 Living Blogs 6 3. 0 Grocery Bag Fashion 2 3. 0 Search Events 1 5. 0 Sound off 1 8. 0 I’d like you to take a marker and circle whatever items you see that you feel are sponsored by someone or are some form of advertising. As you spot those messages, please number them 1, 2, 3 in the order that you see them.

APME CREDIBILITY PROJECT 104 What is an ad? – Page 2 Noticed Avg Rank Featured Partners 14 4. 6 Travelocity 14 5. 3 De. Vry 12 3. 3 NWhomes 11 1. 5 UW Contextual Links 11 4. 2 NWautos 11 5. 2 Open Houses 10 2. 6 Belltown Spine 9 5. 1 Wine Glass 4 1. 3 Home & Garden 1 3. 0 Forums 1 5. 0 NWSource Blogs 1 6. 0 I’d like you to take a marker and circle whatever items you see that you feel are sponsored by someone or are some form of advertising. As you spot those messages, please number them 1, 2, 3 in the order that you see them.

APME CREDIBILITY PROJECT What is an ad? – Key Findings Participants tended to notice ads in order of their visual “scroll” down the page • Some noted, however, that they might not actually see or pay attention to these same ads on an actual online page “I might not have seen this (top Google ads) on a screen. You train yourself to go to where you expect content. ” Male Position on the page is especially important in whether and how an ad will be seen • Both male and female participants said that they tend to ignore the entire right-hand side of the page, assuming it is all ads. But when asked to identify ads, the right-hand side of the page is where they tended to look. • Because the right-hand position is considered advertising, some page content features/items were seen as advertising rather than content “I wipe out the whole right-hand side of the page. I don’t see it having value to me. ” Female • Links and advertisements that blend in visually with adjacent content items can be lost on the page “The embedded ones that look like the text of the articles are less effective because I don’t want to look at that. I’ll miss them. ” Male 105

APME CREDIBILITY PROJECT What is an ad? – Key Findings Color, size and especially graphics tend to dictate whether or not an item will be seen and considered an ad • Larger, more colorful ads were noticed by participants, regardless of their position on the page. • For example, the Travelocity banner ad at the bottom of the page was noticed by all • Like position on the page, the use of color and graphics denotes advertising for many, causing some content items to be seen as advertisements • Links to Living Blogs were considered an advertisement by some because of their yellow background • The use of a whistle graphic or picture of a wine glass caused some participants to view links to content articles as advertisements In general, focus group participants seemed to pay more attention to advertising relevant to the page • Some items caught participants’ eyes even if they were not immediately in the market, acting as a reminder to take action later, but other non-relevant content is ignored “I’m more likely to click on it if it’s related to what I’m reading. ” Male “What I’m not interested in, I just don’t see it. ” Female 106

APME CREDIBILITY PROJECT 107 Assessment of Text Links • The ‘Featured Advertiser’ text links tested were recognized as less relevant to the content on the page and too similar in design to the content links • For some, the lack of relevance was slightly confusing “It detracts because if I’m looking for outdoors and recreation and there isn’t any, I’ll stop (looking). I expect to see REI or Subaru Outbacks…” Male • For others, the ad was negatively impacted by the specific advertiser, and could reflect back upon The Seattle Times brand “I’ve read The Times forever, but if I see this, it makes me think they’ll take ads from anyone. ” Female

APME CREDIBILITY PROJECT 108 Assessment of Text Banner • The Text Banner tested was seen as relevant to the content of the Travel page • It was not seen as obtrusive or out of place in the context of the page • Some felt the local nature of the advertiser increased their positive impression of the ad “I like that the Travel Leavenworth is local. Not Seattle, but Washington local. It gives me a warm fuzzy feeling. ” Female

APME CREDIBILITY PROJECT 109 Assessment of Ads by Google Text Links • The Ads by Google were seen by participants to be somewhat, but not closely, related to the content on the page • The possibility that the links were generated by their search histories was a negative for some respondents • Overall, however, Ads by Google were not negatively perceived and accepted as a standard form of advertising that is sometimes relevant and helpful, sometimes not

APME CREDIBILITY PROJECT 110 Assessment of Featured Sponsor Text links • The Featured Sponsor text links caused some confusion among participants. Opinions were mixed as to what the title denotes. • In the context of an article page about Bastyr with a large banner ad for Bastyr, many thought the article could have been a PR piece or pay for play. • Some participants noted that the article came with a Seattle Times byline and trusted that the paper would not run a PR piece as news • Several participants also noted they didn’t see the placement as “malevolent, ” but felt it could be close to crossing a line of seeming biased “You want something to be relevant, and clearly it is, but it’s a fine line. ”

APME CREDIBILITY PROJECT 111 Assessment of Display Ad (Candidate Endorsement) • Focus group participants who had seen this ad in the survey said they were interested enough in the article to keep reading, even if the ad was large and distracting • Reactions to the placement were mixed, though generally negative: • Some felt it reflected poorly on the newspaper to put the ad next to the negative article • Others felt it reflected poorly on Doug Sutherland to run an ad next to the negative article • It is important to note that participants were split in their perceptions of how ads are placed – either through automation or hand-selected positions, which seemed to drive their impression of whether seattletimes. com or Doug Sutherland was negatively impacted