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Atlanta Market Study 2002-2003 Atlanta MSA & Surrounding Counties Note: Cleburne and Randolph Counties in Alabama and Clay County in North Carolina are also included in the Atlanta DMA geography but are not pictured in map. 2 Atlanta Is The Eighth Largest Metropolitan Market In The U.S. Los Angeles 9.9 New York 9.4 Chicago 8.5 Boston 6.1 Washington, DC 5.2 Philadelphia 5.1 Houston 4.5 Atlanta 4.5 Detroit 4.4 Dallas Millions of people in MSA Between the 1990 and 2003 Census, Atlanta recorded a population growth of 52.3% , one of the highest growth rates in the nation. --2000 U.S. Census 3.8 Source: 2004 Demographics Now 3 Atlanta Is The Second Largest Southern Market Houston 4.5 ATLANTA 4.5 3.8 Dallas 2.5 Tampa/St.Pete./ Clearwater 2.3 Miami Fort Worth/ Arlington 1.8 Orlando 1.8 1.7 Ft. Lauderdale 1.6 San Antonio Austin-San Marcos West Palm Beach-Boca Raton Millions of people in MSA 1.3 1.2 Source: 2004 Demographics Now 4 Atlanta’s Population Is Projected To Increase By 13.5% In Five Years Total Atlanta population 2003-2008: +13.5% Total U.S. population 2003-2008: 5.117 4.508 +5.3% 2.960 2.233 1.764 1970 1980 1990 2003 2008 Source: 2004 Demographics Now 5 Atlanta Ranks First In The United States For Population Increase Between 1990-2003 1,548,179 ATLANTA 1,371,988 Phoenix/Mesa Houston Dallas Chicago 1,205,708 1,166,536 1,116,634 Los Angeles 1,071,015 Washington DC 1,044,636 Riverside-San Bernardino 1,042,094 Las Vegas New York 940,146 908,394 Source: 2000 US Census Bureau as noted in 2004 Demographics Now 6 Of The Top Ten Markets, Atlanta Has The Fastest Projected Population Growth Rate Between 2003-2008 13.5% ATLANTA 12.9% Dallas 11.9% Houston 10.1% Washington, DC 6.4% Los Angeles 4.6% Chicago New York 2.3% Boston 2.1% Philadelphia 2.1% Detroit U.S. Projected Growth Rate = 5.3% Projected percent increase in population between 2003-2008 1.1% Source: 2004 Demographics Now 7 Metro Atlanta Projected Population Growth By County (2003-2008) % Increase 2008 Projected Population County % Increase 2008 Projected Population Forsyth* 32.9 166,292 Carroll 17.3 115,276 Henry* 30.4 193,982 Bartow 17.1 100,175 Newton* 28.1 97,170 Cobb 14.5 768,074 Paulding* 27.9 127,525 Douglas 14.2 115,915 Cherokee 23.1 205,658 Clayton 13.9 295,970 Pickens 21.9 32,644 Fayette 12.0 110,871 Gwinnett 20.4 816,918 Rockdale 10.2 82,748 Barrow 20.3 64,002 Spalding 3.7 62,055 Walton 20.3 84,086 DeKalb 3.6 706,661 Coweta 18.7 120,582 Fulton 2.5 850,531 County *Rank among top ten fastest growing counties in the U.S. between April 2000 and July 2003 per the U.S. Census Bureau) Source: Demographics Now Online (November, 2003) 8 Atlanta Households Are Projected To Grow 13.1% From 2003 To 2008 MSA 13.1% 2003 1,644,818 2008 1,859,519 North Suburbs 18.8% 2003 684,029 2008 812,818 Inside I-285 3.0% 2003 312,315 2008 321,828 South Suburbs 18.1% 2003 360,503 2008 425,922 Source: 2004 Demographics Now 9 Metro Atlanta Projected Household Growth By County (2003-2008) (descending sort by % growth) County % Increase 2008 Projected Household % Increase 2008 Projected Household Henry* 31.8 68,452 Gwinnett 18.6 274,168 Forsyth* 31.6 57,511 Bartow 17.5 36,032 Newton* 30.7 35,662 Douglas 16.9 42,928 Paulding* 28.2 44,041 Cobb 14.0 285,518 Pickens 24.8 13,244 Fayette 13.9 39,363 Cherokee 23.8 72,383 Clayton 12.7 101,216 Walton 21.3 29,921 Rockdale 11.6 28,993 Barrow 20.2 22,630 Spalding 5.7 23,578 Coweta 19.3 42,860 DeKalb 3.0 261,882 Carroll 19.2 42,870 Fulton 2.8 336,252 *Rank among top ten fastest growing counties in the U.S. between April 2000 and July 2003 per the U.S. Census Bureau) County Source: Demographics Now Online (January, 2004) 10 Atlanta Ranks At The Top In Published Surveys #1 Top Travel Destination For African-Americans (6th For Latinos; 10th for AsianAmericans) Travel Industry Association of America, January 2004 #1 Top City for Entrepreneurs Inc. Magazine, February 2004 #1 Where Employment Will Grow Fastest, 1998 - 2025 Newsweek, 1999; Bureau of Labor Statistics #1 Busiest Airport in the World, Hartsfield International, serving more than 76 million passengers a year www.infoplease.com #1 Top City for Business Relocation (fifth consecutive year) Plants Sites & Parks Magazine, 2003 #1 Hottest City in the Nation for Relocation and Expansion Expansion Management Magazine, January 2004 #2 Entrepreneurial Activity and Small Business Growth (among top ten markets); Entrepreneur Magazine and Dun & Bradstreet annual survey; October 2003 #3 Most corporate headquarters of publicly-traded American companies (based on 2001 revenues); Fortune Magazine, April 2002 #4 Best Places for Business and Careers Forbes, 2003 #4 Hiring Havens Computerworld Magazine, January 2001 #6 Among top ten metros for “America’s Most Wired Cities” Yahoo Internet Life Magazine, Spring 2002 11 Atlanta Attracts Corporate Business 32 companies with 100+ employees have expanded or relocated to the Atlanta metro area during 2002 to the present, including….. Fortune 500 company Newell Rubbermaid, relocating from Illinois. NR will bring 900 jobs to Atlanta, including 100 of the company’s top executives. Cooper Wiring Devices, relocating from New York, and bringing 115 new jobs Hagemeyer North America (electrical parts distributor from the Netherlands), relocating its American headquarters from current facilities in South Carolina and bringing 250 jobs to the metro Acuity Specialty Products Group consolidates its headquarters in Atlanta and brings 100 new jobs Cendian, a chemical third-party logistics provider in Atlanta, doubled its work force Source: Expansion Management, January 2004. Study rated Atlanta as #1 for “America’s 50 Hottest Cities For Expansions and Relocations” 12 Atlanta Attracts Corporate Business Atlanta was cited as a viable headquarters site in a very competitive process because of its projected growth, living environment, climate, location and educational opportunities according to Newell Rubbermaid. Atlanta offers prime logistics for employee and product/cargo transportation. Hartsfield-Jackson Airport allows worldwide access to the metro area, and both Delta and UPS are headquartered here. Atlanta Hartsfield-Jackson Airport, currently undergoing a $6 billion expansion, as well as some of the top colleges and universities in the nation serve to attract corporation headquarters to the Atlanta market. Source: Expansion Management, January 2004. Study rated Atlanta as #1 for “America’s 50 Hottest Cities For Expansions and Relocations” 13 Atlanta’s Hartsfield-Jackson International Is The World’s Busiest Passenger Airport Passengers served 2002 Atlanta Hartsfield Chicago O'Hare • An average 2,400 flights/day connect metro Atlanta’s business community with every major market in the world. • Access to more than 200 domestic and international cities • An estimated 80% of the US market is reachable within 2 hours time. • More than 20 airlines service Atlanta, offering flyers affordable and competitive rates. 76.8 Million 66.5 Million Source: Hartsfield-Jackson Atlanta International Airport, 2003, Chicago O'Hare Airport Authority 2003 14 A Strong, Diverse Industry Base: Atlanta Employment By Industry An estimated 2,237,194 employees work in Atlanta’s non-agricultural industries. # of Atlanta Employees Services Retail Government Manufacturing Business Services T.W.U. Wholesale Financial Activities Health Services Construction Social Assistance 174,078 252,347 291,358 161,332 386,344 108,776 134,299 146,331 60,139 122,782 27,884 T.W.U = Transportation, Warehousing, Utilities Construction 7% Health Services 3% Social Services 1% Services 9% Retail 14% F.I.R.E. 8% Wholesale 7% Government 16% T.C.U. 6% Manufacturing 8% Business Services 20% Source: Georgia Department of Labor (Economic Indicators), Third Quarter 2003 15 Atlanta Headquartered Firms America’s Favorite Chicken Co. American Cancer Society Amoco Perf. Products, Inc. BellSouth Corp. Boys/Girls Clubs CARE Chick-Fil-A CIBA Vision Corp. Cingular Wireless The Coca-Cola Company Coca Cola Enterprises Cox Communications Cox Enterprises CNN Delta Air Lines EarthLink Equifax First Financial Management Genuine Parts Georgia Pacific Goldkist Inc. Haverty’s Furniture Hitachi Home Electronics (U.S.) Home Depot Lanier Worldwide, Inc. Lockheed/ Martin Mirant Mohawk Industries Newell Rubbermaid Philips Electronics Porsche North America Post Properties Rayovac Corp. Rich’s/ Lazarus/ Goldsmith’s SAAB Cars USA Scientific Atlanta The Southern Company SunTrust Banks TEC America Turner Broadcasting United Parcel Service Note: Fortune 500 Companies highlighted in red 16 Atlanta’s Top Corporate Employers Company 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Delta Air Lines BellSouth Corp. Wal-Mart Stores Inc. The Home Depot, Inc. IBM Corp. AT&T Sun Trust Banks Inc. Cox Enterprises United Parcel Service Inc. Wachovia * Wal-Mart employees estimate, Wal.Mart Stores Inc qualify for this list but did not respond Employees 23,439 20,000 15,600* 10,040 7,344 7,300 7,179 5,870 5,861 5,400 Source: 2003 Atlanta Business Chronicle - Book of Lists 17 New Business Operations In Metro Atlanta 260 223 205 219 201 200 201 169 170 129 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 With an average of 198 businesses relocating or expanding operations to Metro Atlanta each year, it is no surprise that more than 600,000 jobs have been created in the Metro area in the past decade. Source: Metro Atlanta Chamber of Commerce; RFA Dismal Sciences Inc./Goizueta Business School, Emory University; First Union Bank & Economic Forecasting Department., Wall Street Journal; GA Dept of Labor 18 More Than 600,000 Jobs Have Been Created In Metro Atlanta Year 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 Jobs Created 68,100 -15,300 -60,400 35,000 80,000 77,000 55,900 86,000 84,100 97,700 85,600 Source: RFA Dismal Sciences Inc./Goizueta Business School, Emory University; First Union Bank & Economic Forecasting Department., Wall Street Journal; GA Dept of Labor; *Projected from GSU Economic Forcasting Center 19 Atlanta’s Unemployment Rate Is Lower Than The National Rate 5.7% 3.8% United States ATLANTA Source: U.S. Department of Labor- For March 2004; Georgia Dept. of Labor - For March 2004 20 Current Year Employment Increases Among 272 metropolitan areas studied by the Bureau of Labor Statistics…. • • The largest over-the-year employment increases were reported in Atlanta, with 47,400 new jobs. Atlanta ranked second among largest metropolitan areas for highest over-theyear percentage increase, with a 2.2% gain. Source: US Dept. of Labor - August 2003 21 Metro Atlanta Has A Lower Cost of Living Than Most Major U.S. Metros And A High Average Household Income Average U.S. Metro Area = 100 Houston Average HH Income $65,632 91.6 Dallas 98.0 $71,117 Atlanta 98.0 $71,835 Philadelphia 120.2 $67,092 Washington, DC 121.0 $84,849 Boston 135.5 $79,183 Los Angeles 135.2 $66,439 Chicago 135.7 $73,619 New York 175.1 $67,867 Source: ACCRA 3rd Quarter 2002 Cost of Living Index; 2004 Demographics Now 22 Do You Think You And Your Family Will Better Off Financially A Year From Now? Worse Off 14% About The Same 15% Be Don't Know 7% Better Off 64% Source: Kennesaw State University Econometric Center – Third Quarter 2003 23 Atlanta’s Retail Sales Rank In The Top Ten Nationally 2003 Nat’l Ranking Total Retail Sales Bldg Material/Garden Equip. & Supp. Store Sales Motor Vehicle/Parts Dealer Sales Grocery Store Sales Department Store Sales General Merchandise Store Sales Furniture/Home Furnishing Store Sales Women’s & Girl’s Clothing Footwear Sales Men’s and Boy’s Clothing Clothing & Clothing Store Sales 7 1 5 5 6 7 7 8 8 9 10 2003 Totals (000’s) $66,900,532 $8,193,152 $17,869,853 $7,643,549 $5,686,384 $7,498,631 $2,038,734 $2,620,267 $930,973 $1,437,195 $2,828,248 Source: 2003 Demographics USA - County Edition 24 Of the Top Ten Markets, Atlanta Ranks # 2 For Highest Retail Sales Per Household Dallas $42,541 $41,148 ATLANTA Houston $39,912 Boston $38,924 Detroit $37,286 Chicago $35,374 Los Angeles $35,200 Washington $35,187 Philadelphia New York $34,521 $26,080 Source: 2003 Demographics USA - County Edition 25 Atlanta Is A Highly Competitive Retail Market Atlanta has 951 shopping centers. The national average for retail space is 16 square feet per person. Metro Atlanta has an average of 27 square feet per person. Atlanta has 118 million square feet of retail space, and an additional 5.5 million under construction. In the past 4 years more than 6 million square feet of retail space have opened including Mall of Georgia (Gwinnett), Arbor Place (Douglasville), Lenox Marketplace (across from Phipps) Stonecrest Mall (DeKalb) and Discover Mills (Gwinnett). Scheduled to open in spring 2005 is Atlantic Station, a 138-acre environmental redevelopment of the former Atlantic Steel Mill in Midtown. The completed project will include retail, office, residential, hotel and public park space. A projected 1.5 million feet will be devoted to retail and entertainment space, including restaurants and movie theaters. Source: Atlanta Business Chronicle, September 2003; Dorey Market Analysis Group; National research Bureau; Atlantic Station marketing/public relations office 26 Major Retail Arrivals And Departures 1999-2004 Arrivals Galyan’s Staples Whole Foods Mall of Georgia Lenox Marketplace Arbor Place Mall Ritz Camera Cost Plus World Market Walgreen’s 1999 A&P MJ Design Upton’s Eyeglass World Fresh Value Foods Dekor 2000 Roberd’s Discover Mills Kohl’s Olson Tire Stonecrest Mall Big Screen Store 2001 Homeplace/ Waccamaw Drug Emporium Harris Teeter Cub Foods Dekor Home Life Brandon’s Aldi Foods BJ’s Wholesale Ashley Furniture 2002 Avondale Mall Bloomingdale’s Filene’s Basement HH Gregg 2003 Macy’s Brandsmart (October 2004) 2004 Lord & Taylor (announced) Departures 27 Atlanta MSA Demographics Male Female Married College Grad+ Own Home White Black 49% 51% 54% 26% 61% 65% 28% Children 1> in HH Age 18-34 Age 35-54 Age 55+ Median Age 18+ HH Inc $50K+ HH Inc $75K+ Median Income 41% 36% 43% 21% 40.4 54% 33% $53,996 Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market 28 Atlantans’ Regular Activities Total Adults Walking for exercise Home Exercise Gardening Arts and Crafts Photography Jogging/Running Other Aerobic Exercise Fishing Swimming Antiquing 941,586 636,873 556,991 374,626 359,894 299,130 296,044 193,531 185,409 181,883 Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market 29 Events and Places Atlantans Attended In the Past Year Total Adults Stone Mountain Park Live Theater Braves Game Local Arts/Craft Festival Underground Atlanta Six Flags Atlanta Zoo Other concert High School Sports Event Lake Lanier Little League Baseball Falcons Game 1,146,349 1,060,742 1,018,565 817,440 816,548 746,806 683,544 635,622 624,022 461,916 446,513 425,946 Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market 30 Competitive Media The Atlanta Journal-Constitution 31 Cox Enterprises, our parent company… Cox Newspapers includes AJC & VAL PAK Cox Radio Cox Television Cox Communications Video/Voice/Data Manheim Auto Auctions 32 Atlanta Journal-Constitution overview: Largest daily newspaper in the Southeast More research & information than other media properties Average Sunday readership over 1,899,000 adults Average daily readership over 1.2 million adults Weekly zoning within 14 zones More than 6,000 employees 33 Readership Of The Atlanta Journal-Constitution 69% 59% 72% 57% 2002 Market 2000 Market 5-Weekday Cume 4-Sunday Cume Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market 34 AJC Share of Newspaper Readers in Atlanta MSA 77% Read AJC Base: Read a Daily Newspaper Yesterday 92% Read AJC Base: Read a Sunday Newspaper Last Sunday Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market 35 The AJC Has The Fourth Highest Market Penetration Among The Top 10 MSA’s 73.4% Washington Post 67.9% Dallas Morning News Houston Chronicle 66.6% Atlanta Journal-Constitution 65.6% 61.7% Philadelphia Inquirer/News 59.8% Detroit Free Press News 53.5% Chicago Tribune 50.7% Los Angeles Times 46.6% Boston Globe New York Times 34.1% Source: 2003 Scarborough Research, Inc. (Release 2) 4-Sunday Cume 36 AJC Readership Continues To Grow Number of Adult Readers Avg Issue M-F Avg Issue Sunday 5-Wkdy Cume 4-Sunday Cume 1,280,100 1,173,421 2002-2003 2000-2001 1,899,300 1,834,821 1,923,200 1,680,855 2,230,300 2,127,980 Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market 37 Atlanta Journal-Constitution Reader Demographics Male Female Married College Grad+ Own Home White Black Children 1+ Age 18-34 Age 35-54 Age 55 Plus Median Age HH Inc $75K+ Median HH Income Atlanta MSA Average Weekday Average Sunday AJC.com Past 30dys 49% 51% 54% 26% 61% 65% 28% 41% 36% 43% 21% 40 33% $53,996 50% 50% 59% 32% 67% 66% 28% 41% 30% 44% 26% 43 39% $60,467 47% 53% 57% 30% 65% 64% 30% 43% 32% 45% 23% 42 37% $59,283 50% 49% 53% 39% 58% 60% 30% 47% 47% 44% 10% 36 43% $66,297 Source: 2002-2003 Gallup Poll of Media Usage & Consumer Behavior - Atlanta Market 38 Big Three Networks’ Share of Viewing Down An Average of 42% Since 1985 28.0% 26.0% 24.0% ABC NBC CBS 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 85-86 87-88 89-90 91-92 93-94 95-96 97-98 99-00 Source: Nielsen Media Research 39 As Network Viewership Declines Cable Viewership Increases 80.0% Cable 70.0% 60.0% Network 50.0% 40.0% 30.0% 20.0% 10.0% '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 Source: Nielsen NTAR for various fourth quarters 40 In Atlanta, The AJC Delivers A Larger Audience Than The Super Bowl On Any Given Sunday 2004 Super Bowl (New England vs. North Carolina) 44.2% 45.0% 42.0% National Rating Local Rating (CBS) (CBS-WGCL) Sunday AJC *Avg Issue in Atlanta DMA Source: Nielsen, Scarborough 41 The Journal-Constitution Is The Most Efficient Medium To Reach Atlanta Households With Income $50K+ AJC 1 Sunday Ad 56% Cable TV 2,090 Spots 56% Morning Drive Radio 4,000 Spots 56% 25 Ads 56% Magazines Media selections based on top stations/print media for the target, including: morning drive radio WSB AM, WVEE FM, WKLS FM, WALR FM and WABE FM (6am-10am, Mon-Fri); cable stations CNN, Fox 24-Hr News Channel, TNT, Lifetime, F/X, HGTV Home & Garden, TLC, USA, BET and A&E (6am-2am Mon-Sun); and magazines Southern Living, TV Guide, Newsweek, Time and Sports Illustrated. Source: 2003 Scarborough Research,Inc. (Release 1) 42 Newspaper Advantages Newspapers offer broad reach, favorable demos, zoning capabilities, improved color reproduction and streamlined ordering and billing. “Newspapers provide the kind of touch points for people to get the depth behind the broad premise laid out in other media,” according to Ogilvy & Mather creative director Chris Wall. Geographic targeting works well in newspapers--- with strong results for retailers. “The thing we see in newspapers is the immediacy,” says Stuart Redsun, VP advertising for Gateway Computer. “With Gateway having 300 stores in local markets, newspapers are really a way to get the message out quickly, a targeted message for a given amount of time. We see traffic after we run an ad in newspapers.” Source: MediaWeek Magazine, April 30, 2001 edition; with data from Scarborough Research and Readership Institute at the Media Management Center at Northwestern University 43 Newspaper Advantages Compare newspapers’ mass media reach with television fragmentation. 55.1% of the adult population in the U.S. reads a newspaper on average each day. In a one-week period, that number increases to 85%. Those numbers compare to only 38.1% of adults reached in an average halfhour of primetime TV. “One thing we know is that media you can target geographically should do better,” says Jon Mandel, comanaging director of MediaCom. “The closer you can get to the point of sale, especially in a recessionary environment, the better off you’re going to be.” Source: MediaWeek Magazine, April 30, 2001 edition; with data from Scarborough Research and Readership Institute at the Media Management Center at Northwestern University 44