From: Travidia Inc.
Date sent 16-MAR-06
Subject: The Travidian - Q1 2006


Travidia - Driving Advertising Opportunities Online
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Q1 2006
March 16, 2006

Sales Soundings

2006 has started off with a bang for us. On the heels of a very, very successful 2005, we continue our spate of new client launches with The Denver News Agency, The Pittsburgh Post Gazette, The Greensboro News and Record and The Riverside Press Enterprise. With almost 400 newspapers currently working with us, Travidia is firmly established as the company of choice when thinking of digital advertising platforms. Coupled with our rapidly growing Retail Network, Travidia is well-positioned for yet another record-breaking year.

What does this mean for you, our valued partner? Best-of-breed technology and more importantly, customer support and service. With a very focused and open approach to building our advertising "publishing" platform, we have extreme flexibility in addressing your local, unique advertising requirements. We know we cannot be all things to all people, so we've partnered other leaders in our industry to provide the knowledge, resources and service to continually stay ahead of the rapidly evolving digital advertising arena.

With integrations with AdPay, CitiXpress, and Planet Discover currently deployed in the field, you know you are getting an experienced, valued partner with Travidia. If you'd like more information on how we can further accelerate your digital advertising efforts with these seamless integrations, please drop me an email at jgreen@travidia.com.

These integrations allow us to further invest in our publishing platform, keeping us ahead of the game for your consumers and advertisers, strongly positioning you for further revenue growth. Deploying a marketplace or advertising platform is a simple decision; constantly investing in it and growing it requires knowledgeable resources and a keen focus on what you do best. That's why we've invested heavily in our AdScripter product - a self-serve advertising tool for local advertisers, Search Engine Optimization and soon, Search Engine Marketing programs. Look for other major product announcements in the coming months as 2006 is the year of Product Development and Enhancement for Travidia.

Thanks again for helping make Travidia the market leader in digital advertising.

James Green
Chief Marketing Officer

Product Developments

INTRODUCING POWERFUL SEARCH SOLUTIONS FOR OUR NEWSPAPER PARTNERS

Travidia is pleased to introduce a series of powerful solutions for our newspaper partners designed to help with search, an area which is unquestionably one of the most important initiatives for newspaper websites. Our search solutions are ready to implement so you can take a giant step forward with your marketplace initiatives today by getting Integrated Search and Advanced Search features installed as part of the Travidia Marketplace Suite!

INTEGRATED SEARCH

Many sites suffer from a collage of content and no easy and efficient method for consumers to access it. Travidia has now developed a complete integrated search solution that allows consumers to search for all products, services and content from a variety of sources in one spot!

Travidia's Integrated Search is a perfect complement to your shopping channel and your online strategy overall. Consumers now perform one single search to access newspaper ads, special sections, preprints, classifieds, e-commerce, catalog feeds, editorial content and content from other third-party vendors.

Travidia's Integrated Search enables searching across:

  • ROP Display Ads
  • Special Sections
  • Classifieds
  • Newspaper Inserts
  • Catalog Feeds
  • E-commerce (Media Mall)
  • Coupons
  • Editorial Content from all of the Major News Sections (World News, Local News, Sports, Business, Entertainment, etc.)
  • Other Third Party Content

Integrated Search Helps Solidify Local Brand

Local search capabilities solidify your local brand and give local consumers a compelling reason to increase frequency to your shopping channel. Keyword search results are displayed in a segmented content type arrangement, allowing consumers the ability to quickly locate products and services in a particular area of interest.

Powerful Advertising Opportunities

Travidia has the technology built-in to Integrated Search to provide your advertisers with a variety of unique contextual advertising opportunities. Advertisers can select particular keywords related to their business and sponsor that keyword within your shopping channel! On the search results page consumers receive targeted advertising from your local merchants who provide similar products and services locally.

Contact us now to get Integrated Search implemented on your site!

ADVANCED SEARCH

Travidia is pleased to now extend advanced search capabilities across our newspaper partner network. Advanced search offers the user a very powerful tools for performing specific searches within the online marketplace.

The standard advanced search as shown above allows users to search for products in your marketplace by keyword, exact phrase, price range and content type such as display ads, special sections, inserts, catalog feeds, classifieds or whatever other types of shopping content you may have.

The advanced search for news allows users to select a number of different criteria such as publish date, relevance and content types as shown in the example above.

Advanced search for automotive allows users to search for a car by make, model, body style, year range and price range as shown in the example above.

Advanced search for real estate allows a user to search for property by city, price range, number of bedrooms, number of bathrooms and property type as shown in the example above.


GREENSBORO NEWS & RECORD UNVEILS REGIONAL INTERNET SHOPPING CHANNEL FOR NORTH CAROLINA

Travidia is pleased to announce that the Greensboro News & Record has selected Travidia to power its new online shopping channel geared toward connecting local shoppers and businesses. The site, located at http://emailmarketing.travidia.com/ct/ct.php?t=307791&c=474226114&m=m&type=N features print display advertisements, special sections, classifieds and Travidia's Retail Network program featuring insert and inventory feed content from some of the nation's largest retailers.

"It's our commitment with this new shopping channel to significantly enhance the online presence of the Greensboro News & Record among their local shoppers and provide new opportunities for their existing retail advertisers," said Bill Ferguson, Travidia's vice president of media sales for the southeast region.

The Greensboro News & Record joins more than 300 newspapers from around the world currently being served by Travidia.

"Travidia's exceptional reputation and online technology success with newspapers from around the country are well deserved and we're excited to be working with them," said Kathy Lambeth, general manager of the online division of the Greensboro News & Record.

"The new and improved website will provide a dynamic local online marketplace for Greensboro and Triad area residents," continued Lambeth.


PUBLISHER OF THE DENVER POST, ROCKY MOUNTAIN NEWS, UNVEILS LOCAL INTERNET SHOPPING CHANNEL

Travidia is pleased to announce that the Denver Newspaper Agency has selected Travidia to power its new online shopping channel geared toward connecting local shoppers and businesses.

The site, located at shopping.postnewsmarketplace.com features print display advertisements, special sections, classifieds and Travidia's Syndicated Marketplace program featuring insert and inventory feed content from some of the nation's largest retailers.

"Our commitment to the Denver Newspaper Agency is to significantly enhance their online presence among local shoppers and provide superior service to their existing retail clientele," said Richard Luck, Travidia's vice president of media sales for the western region.

The Denver Newspaper Agency, publisher of The Denver Post and Rocky Mountain News, joins more than 125 newspapers from around the world currently being served by Travidia.

"Travidia's exceptional reputation and success with other newspapers' online efforts are well deserved and we're excited to be working with them," said Fran Wills, vice president interactive with the Denver Newspaper Agency.

"A more robust local online marketplace for Denver area residents is what we need to be more competitive with online pure plays," continued Wills. "The new and improved website will help connect our retail advertisers with online users who wish to buy local products."


TRAVIDIA ADDS STAPLES TO GROWING LIST OF RETAIL NETWORK PARTICIPANTS

Travidia is pleased to announce that Staples has joined Travidia's Retail Network. The Retail Network is a service offered by Travidia that extends relationships already established between Travidia and some of the nation's most popular retailers, allowing newspaper partners to feature valuable retail catalog feed or insert content within their marketplace under their own branded look and feel.

Staples joins other retailers in the network such as Lowe's, Golfsmith, Lamps Plus, Ritz Camera, Boater's World, Wolf Camera and more who supply millions of top quality products for display on Travidia's network of participating newspaper websites. This service is free to newspapers and supplies a new revenue generation source as retailers in the network pay for visits to their content within the newspaper shopping channel.

For more information on Travidia's Retail Network please visit http://emailmarketing.travidia.com/ct/ct.php?t=307789&c=474226114&m=m&type=N.


HERE WE GROW AGAIN...

by Ed Villescas, Vice President, Business Development

Travidia's Retail Network creates the Sunday newspaper experience online.

Consumers want aggregated, easily searchable, sortable and consistently navigable data for shopping purposes, and are not willing to regularly transverse numerous different advertiser websites that employ a different look and feel and navigation.

Travidia's Retail Network leverages partnerships that Travidia has established with newspaper groups to extend the reach of retailers' online advertising messages.

Through the Retail Network, Travidia can display retail catalog feeds or converted print advertisements across our entire network of newspaper websites throughout the United States and Canada.

According to the Vertis Customer Focus 2006: Retail study, advertising insert readership levels are consistently at 85 percent or above. Additionally, the study finds Web savvy individuals still rely on advertising inserts, as 88 percent of Sunday newspaper readers surveyed via the Web said they read Sunday newspaper inserts, while 79 percent of those surveyed by phone read them.

Jim Litwin, vice president, market insights at Vertis points out that:

  • Advertising inserts remain an integral channel for retailers to reach consumers
  • Heavy Internet users are more dependent on newspaper inserts than the average consumer

Women of all ages are an increasingly important demographic to target through inserts due to their purchasing power and retail decision making.

Additionally, the survey finds that:

  • 52 percent of those surveyed by phone and 71 percent of those surveyed via the Web use inserts to decide where they buy groceries.
  • 29 percent of those surveyed by phone and 41 percent surveyed by Web use inserts to decide where to shop for health and beauty care products.
  • 28 percent and 39 percent, respectively, use them for office supply decisions.

In the past quarter, The Daily Oklahoman, The Greensboro News & Record and The Press Enterprise of Riverside, CA all joined Travidia's burgeoning network of affiliates.

Domestically, Retail Network covers 24 of the top 210 DMA's representing nearly 50 million U.S. residents in top markets such as San Francisco, Dallas-Fort Worth, Denver and Chicago.

On the retail front, Office Supply category leader Staples joined the growing list of retailers that have been able to leverage the network to increase sales and reach unduplicated audiences.

Second quarter promises to be even more dynamic, with the expected addition more than ten affiliates in the US and Canada. Further, new entries are also expected on the retail side including apparel and consumer electronics. By June, our affiliate number will exceed 50 while retail grows at an accelerated pace.

Joining Retail Netwok is easy. Sign up and Travidia will design a Retail Network site based on your existing website design or we will create a custom interface for you, there is no work involved for your internal staff at all! Once we have your site completed you can begin collecting revenue while providing your visitors with a selection of great content!

Organizational Developments

NEWSPAPER INDUSTRY VET, ED VILLESCAS, JOINS TRAVIDIA AS VP BUSINESS DEVELOPMENT

Travidia is pleased to announce that Ed Villescas has joined the company as Vice President of Business Development.

Villescas comes to Travidia from The Virginian Pilot in Norfolk, Virginia, where he served as major retail advertising manager, directing the Major Accounts and National Advertising departments. An experienced newspaper executive, he has held various leadership positions at Gannett, The Indianapolis Star, The Denver Post, The Denver Newspaper Agency and Lee Enterprises.

"Ed's 16 years of newspaper and advertising experience adds invaluable expertise to Travidia's operations," said James Green, chief marketing officer for Travidia. "And we're pleased to welcome him to our growing team of professionals."

Villescas is a member of the NAA's Display Advertising Federation, the National Association of Minority Media Executives, an alumnus of the Maynard Media Academy at Northwestern and the James K Batten Leadership Program.

"Travidia has established itself as a leader in providing Internet marketing services to newspapers and retail advertisers," said Villescas. "I'm honored to have the opportunity to join these talented professionals who are committed to the continued development of these highly successful partnerships."


FORMER PIRELLI TIRE HR EXECUTIVE JOINS TRAVIDIA

Travidia is pleased to announce that David Gooch has joined the company as Executive Vice President of Human Resources.

Gooch brings to Travidia more than 30 years of experience as a human resource executive with Pirelli Tire North America and Dunlop Tire/Sumitomo. Prior to joining Travidia, Gooch served as the vice president of human resources with Pirelli Tire North America, where he successfully managed all human resource aspects of the company and raised the productivity level to its highest in the company's 30-year history.

"David's unsurpassed expertise and experience as a human resource executive will help Travidia continue recruiting the best and brightest professionals from around the country," said Randy Hutchison, president and chief operating officer for Travidia. "We are greatly pleased to welcome David to our team."

Gooch has also served as a board member of local chambers of commerce in California and Georgia, and is an alumnus of Auburn University.

"Growth in the Internet marketing sector has been unbelievable these past few years and I know lots of folks will want to be a part of this growing economic opportunity," said Gooch.

CEO's Corner

Thinking about the article "How papers need to adapt for the web" from the Daily Herald Daily Clips section on March 9, 2006, (below) I realized that Travidia is precisely the company that is filling these needs for hundreds of newspapers internationally.

How papers need to adapt for the web
Reinvent. Nix local news. Think bake sales.
It sounds a fair enough assumption: One online newspaper reader equals one print newspaper reader. Yet when you think about it, the equation is far from true, and it's especially not true in terms of revenue. Online readers generate far less revenue per head than print newspaper readers. The question is, how much less? The answer is a lot less. In fact, it takes 20 to 100 online users to bring in the same revenue that one print reader does, according to the media strategists at Borrell Associates, an internet research firm. That means that for every reader that migrates online from a newspaper's print edition, the paper must find 20 to 100 additional web site readers just to hold revenue constant. While the newspaper industry ponders this problem, Gordon Borrell, president of Borrell Associates believes he has the answer. It comes down to this, in sum. Publishers must stop thinking of the web site as a version of the paper. "It is a completely different medium," says Borrell. "They have to break out of the mold of thinking that their web site is an extension of the paper." Instead, Borrell argues that publishers must reinvent their sites as separate businesses with the end of growing them dramatically. Specifically, that means leaving the local news in the printed edition--and out of the web edition. In its place publishers should put up content unique to the site with the sole aim of building traffic and by extension advertising revenue. There would be little worry of losing readers looking for local news, says Borrell, noting research showing that only 9 percent of surfers read local news online. "Publishers have to relax. Most people still prefer to get their local news from a paper," he says. It's for breaking national and world stories that folks turn to the internet in greatest numbers. What people are really looking for on local newspaper sites is not local news, argues Borrell, but information on local entertainment -- what new band is in town--and commerce, the business of buying and selling that in many ways is what's really at the heart of the local newspaper. "The interesting thing about newspapers is that half of the people that get a newspaper are getting it for the advertising," he says, and he believes papers have huge online potential in their local display and classified advertising. "The newspaper is the marketplace for stuff that is on sale. The question is, how do we translate that to the internet?" says Borrell. The answer, he says, is in organizing that information in a way that makes the web site a must-visit for all manner of information on where to buy what locally, including information on current local sales. That would drive up site traffic, which is what Borrell believes should be the ultimate aim of any local newspaper site. He likens an internet audience to a TV audience, with a focus on reach and frequency. The bigger the audience, the higher the traffic volume, the more attractive the site becomes to the largest number of advertisers. Papers will certainly have to do something in the face of declining circulations. Borrell senior analyst Vincent Crosbie recently told a Paris audience at a World Association of Newspapers conference that each print reader of an American newspaper earns the paper between $500 and $900 a year from circulation revenue and advertising. And while it's true that online advertising is growing rapidly, with newspapers bringing in $4 billion of the $17 billion U.S. internet advertising revenues, online advertising per reader on newspaper sites lags far behind print editions. And depending on the pace of readers migrating to reading their news online each year, Crosbie concludes that newspaper must increase site readership by 40 to 1,600 percent a year to keep revenue constant.

Travidia has deployed numerous products that help newspapers address these specific areas of online opportunity. Travidia is the first company to offer a white label ecommerce platform for newspaper websites to allow them to enter an entirely new arena where they have never competed before called Media Mall Network. Travidia was the first company to offer an online white label newspaper affiliate network for retailer advertisers that grows newspapers respective local online shopping research presence (Retail Network formerly known as Syndicated Marketplace).

More recently, Travidia has deployed AdScripter™. This unique advertiser self-service tool is being extremely well received and we already have numerous implementations in the works. Currently we have AdScripter Auto/Motoring (an automotive vertical), AdScripter Dining Guide, AdScripter RV (used for Motorhomes, fifth wheel, motorcycles, snowmobiles, etc... in development) and others scheduled for deployment in the coming quarters. In all flavors, AdScripter creates an excellent user experience that is dedicated to the niche offering. It allows advertisers to post their own information, websites, audio, video, and special deals and offers. This in turn ads value to the newspaper in attracting and retaining advertisers and readers.

I look forward to sharing more about these products and specific newspaper partner success stories in coming editions of The Travidian.

Sincerely,

John Strisower
Chief Executive Officer



Travidia Inc.
265 Airpark Boulevard Suite 500
Chico, CA 95973
Phone: (530) 343-6400
email: info@travidia.com
Web: http://emailmarketing.travidia.com/ct/ct.php?t=307779&c=474226114&m=m&type=N

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