Health Care Media, On Digital Signage

Who We Are: Strong and Growing Founded in 1995, the Health Club Media Network™ has grown to become the nation’s largest provider of advertising and marketing programs in health clubs. Today, HCMN (formerly the Health Club Panel Network), extends into 3,000+ different health clubs across the country, with particular penetration in the top 20 DMA’s. As a result, agencies and their brand clients have a powerful medium to get their messaging seen and heard by highly sought after consumers, in a clutter free environment where this influential audience spends much of their free time. HCMN’s exclusive network of high traffic health clubs experiences more than 75 million member workouts monthly (Nielsen audited), ensuring a minimum of over 300 million gross impressions for HCMN’s full network of advertisers and marketers.

• HCMN’s offerings are consistently purchased by top advertisers and marketers, including Procter & Gamble, Kraft, Unilever, Nissan, Pfizer, American Express, Coca-Cola and many others. (See page 23 for a more detailed list)



“Health Club Media Network has added value to our member’s in-gym experience.” Cody Pierce - Director of Franchise Marketing, Gold’s Gym International

Compare how we stack up



Where We Are: Bulking Up Every Day National scope with 3,000+ clubs across 120+ DMA’s

HCMN Club Representation

Key Club Partners 24 Hour Fitness Anytime Fitness Beacon Hill Athletic Club Cardinal Fitness Fitness First Health Clubs Fitness Formula

Fitworks Gold’s Gym Healthtrax Lady of America Lucille Roberts Planet Fitness

Powerhouse Gym Spectrum Health Clubs Sport & Health Clubs Synergy Fitness Clubs Women’s Workout World World Gym



The Health Club is increasingly becoming a Socialization Hub. Spas

Restaurants/Cafés

Sports Leagues

The Health Club “Community”

Community Events Fundraisers

Educational Clinic Seminars

On-site Childcare

Want flawless campaign execution? No sweat.



The Health Club Industry: On The Rise The health club business has never been stronger. From 1990 to 2007, the number of total health club members more than doubled, to over 42 million. In addition, more health club members are using their health club more often. The percentage of health club members who are “active” (visit their club, on average, 2x/ week) nearly tripled from 1990 to 2007. Source: IHRSA 2008



Source: IHRSA Profiles of Success

In 2009 the health club industry is projected to grow by nearly 3%. Trends such as the health needs of aging Baby Boomers, child obesity, and increased media attention to health and diet ensure that the industry will remain in a growth mode for years to come. Source: IBIS World Industry Report, December 2008



“Our messaging focuses on balance and proper nutrition, so health club members seemed a logical and important audience. Not only are they concerned with proper nutrition and generally open to credible health information, but serve as influencers within their communities.” Jennifer Burke - VP and Account Director, Mullen



Active Health Club Members: Setting the Pace Active health club members are the very picture of the perfect consumer.

According to MRI: • • •

Nearly 73% (US Pop. 60%) of active health club members are between the ages of 18-49. They have an average household income over $90,000 (U.S. Pop. $69,000). They are characterized as being lifestyle ambassadors and purchase influencers.

Active Health Club Members are: • • • • •

Early adopters of new technology Highly health conscious in food, beverage, and personal care consumption Green Advocates “Buyers of the best”: Buy far more based on quality vs. price Extremely brand loyal; when they find a product or service they like they stick with it and tell many others.

Health Club Members set the trends: Over 80% of health club members surveyed indicate that people often come to them for advice on purchasing decisions, and that this advice is usually followed. Source: AMPG Omnibus surveys, 2009



“ We were trying to reach people in our target that could help generate a strong buzz for Nip/Tuck, influencing others to watch it. Health club members hit our target dead-on.” Eric Shiu - VP of Marketing and Advertising - FX Network



Active Health Club Members: “On the Go” Shoppers

The Health Club Consumer: Working out and shopping are both part of their daily routine.

61% of health club members shop after working out. Where do they go? Supermarket/Drug Store: 55% Natural/Health Food: 28% Wholesale Club: 27% Source: Suburban Associates health club exit survey research



InsideOutdoor™ Banners

“If influential consumers are part of your target, then you should seriously consider HCMN” Jack Sullivan - SVP/ OOH Media Director, Starcom Worldwide

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Active Health Club Members: Hard to Reach via Traditional Media

Television: Health Club Members are light TV viewers. Indexing at only 72 for heaviest TV viewership; but at 118 for lightest TV viewership Source: 2008 MRI Doublebase

Fitness/Health Magazines: 77% of Health Club Members DON’T read any of the top health & fitness magazines. (Men’s Fitness, Fitness, Health, Women’s Health, Shape, Men’s Health) Source: 2008 MRI Doublebase

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Backlit Super Panel

Super Panel

Standard Panel

HCMN: Powerful medium

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What We Offer: Panel Advertising Our sleek, elegant, scratch-resistant panels are the core of our media network. Your message will stand out thanks HCMN’s control of the installation, prime positioning and maintenance of each panel, ensuring a clutter free environment and the greatest potential impact for our clients messaging. Each panel features a single advertiser and is purchased in one-month segments on a per club basis.

• HCMN also offers a unique online proof-of-performance system that includes monthly affidavits and photographs by market for each campaign

Available Panel Sizes: Standard Panel (16” x 20”) - These panels are the same proportions as a typical magazine ad, so artwork can easily be resized. Super Panel (26” x 37”) - Similar in size and impact to that of a traditional movie poster you’d see at the theater. Backlit Super Panel (26” x 37”) - Same as a regular Super Panel, but with the additional eye-catching power of backlighting.

Uncluttered medium + Active consumers = Powerful Response

Coupons distributed from HCMN panels have generated redemption rates of up to 13% (up to 20x that of clients’ benchmark FSI redemption rates).

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Club-Wide Digital Presence

100% Member Attention No Channel Changing Real-Time Content

Boost your brand without the heavy lifting

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What We Offer: Digital Advertising On HCMN’s digital advertising network, our client’s digital media is on for the entire day, integrated into our proprietary digital content. HCMN owns, installs, and maintains all of its screens which are placed throughout the clubs, not just in the cardio area. This strategy offers the most likely opportunity for our client’s spots to be seen and create an impact.

• HCMN’s sticky content includes video entertainment, real-time data (sports scores, weather, traffic, stock ticker, etc.), and relevant key club info (class schedules, personnel profiles, club updates, café menu, etc.) • HCMN can accommodate both full motion and static digital advertising

Health clubs offer the most responsive & resonating environment for digital media A recent OTX consumer engagement study revealed that health clubs are the #1 venue where those surveyed pay the most attention to digital media. Engagement was 20+% higher than bars or grocery stores and double that of shopping malls.

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InsideOutdoor™ Banners

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What We Offer: Powerful Brand Integration Advertising and Promotional Opportunities HCMN provides its clients with a wide array of additional in club advertising and promotional options that go far outside the box to get their messaging seen & felt in even more impactful ways:

Brand Integration Advertising Offerings Include: InsideOutdoor™ Banners The power of outdoor billboards brought into an uncluttered environment to uniquely reach and impact a highly influential audience • • • •

Mirror swipes/decals Floor Mats Column Wraps Branding on club gear/equipment (yoga mats, weights, shower stalls, etc.)

Promotional Offerings Include: • • • •

Sponsorship of key club areas (aerobics, spinning, yoga classes, basketball court area, etc.) Sampling • Hand-to-hand upon club entry/exit or open distribution (in shower stalls, grooming areas, etc.) • Room temperature or chilled (for food products and beverages) • Single or multiple items (gift bags with items/literature) Sweepstakes program, including mobile marketing (great database development opportunities) Event marketing (fitness challenges, seminars for club members, member appreciation parties, etc.)

HCMN is the official sampling and promotion agency for the International Health, Racquet & Sportsclub Association, extending HCMN’s exclusive reach to thousands of additional health clubs in the United States.

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“We wanted to reach high income business travelers in an unexpected setting - where they work out. HCMN matched its club database to the target zip codes for our campaign, delivering us exactly what we needed - simply and easily.” Donna Hogg - OOH Assistant Media Director, Starcom Worldwide

Just the right media medicine

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We Flex So You Can Hit Your Target Our national club database can be segmented according to what makes the most sense to meet your advertising and marketing objectives. • You can even obtain category exclusivity which allows your product to own the club for the duration of your campaign.

Reach your primary consumer • Segment HCMN’s national club database to specifically meet your advertising/marketing objectives and/or budget parameters:

• • • • •

By Market/DMA (even zip code) By Gender (Women’s-Only Club Network) By Income (Platinum-Member Network) By Lifestage (Childcare Network, Low Impact Aerobics Network) By Ethnicity (e.g. Hispanic), Sexual Orientation, etc. (via US Census zip code data)

• Designate your advertising in the club area that best highlights messaging and/or product need (e.g., by weight scale, water fountains, treadmills, in aerobics studio, weight-lifting area, locker room, etc.).

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“Club members gobbled up over 230,000 coupons and redeemed 26,000 of them.” – Brandweek 7/23/07 (Referring to 2007 Jennie-O Turkey Store HCMN campaign that generated a coupon redemption rate of over 11%)

“HCMN continues to be a great media partner for Special K®. The size of their network across so many DMA’s means we can get serious penetration against active female adults in the markets where it matters most to us. HCMN’s execution is also top notch and their ability to implement third-party exit survey research really helps us assess the true impact of our media plan for our client – which gets more and more important every day.” Annie Kavanagh - OOH Media Supervisor, Starcom Worldwide

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Measured. Tested. Proven.

Source: Competitive place-based media websites, 2008; HCMN third party surveys through 2008

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“HCMN allows us to secure only those health clubs within close proximity to our client’s retail locations, making the media spend very efficient. The uncluttered health club environment also offers the opportunity to really make an impact with this audience.” Jennifer Seaman - Media Director, Looney Advertising

Squeeze more out of your media budget

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A Select List of HCMN Clients Advocacy/Non-Profit AIDS Healthcare Foundation American Legacy Lance Armstrong Foundation March of Dimes National Peanut Board Susan G. Komen 3-Day Walk Automotive Chrysler* Ford General Motors* Honda* Land Rover* Nissan* Beverage Anheuser-Busch* Coca-Cola Company* MillerCoors PepsiCo, Inc.* WhiteWave Foods Company Financial Services/ Insurance Allstate American Express* Bloomberg Financial Charles Schwab Esurance State Farm* Wachovia* Food/Health/Nutrition Bel Brands, USA Campbell Soup Company Con Agra* Dean Foods* Dreyer’s* Frito Lay Hormel* Kellogg’s* Kraft* Masterfoods* Michael Foods* Nestle* Oroweat PepsiCo, Inc. Starbucks Wrigley *Multiple brands

Healthcare Insurance/ Services Blue Cross Blue Shield Humana Kaiser Permanente Myriad Brac United Healthcare Media/Entertainment/Technology 20th Century Fox A&E ABC* Comcast DirecTV E! Entertainment Television Earthlink FX Network* NBC* New Line Cinema Samsung Showtime Networks Sony Pictures* TBS* The Economist T-Mobile Verizon* VH1 Personal Care/ Beauty Alberto Culver Colgate Coty Gillette* GlaxoSmithKline Johnson & Johnson* Kimberly-Clark Norelco Procter & Gamble* Revlon S.C. Johnson & Son Schering-Plough Unilever* Pharmaceuticals: OTC/DTC Allergan Bayer HealthCare, LLC Bristol Meyers Squibb* GlaxoSmithKline* Johnson & Johnson* Merck Novartis* Pfizer* Schering-Plough*

Recruitment Capital One Recruitment Lendingtree.com N.Y.P.D. U.S. Marine Corps Retail/QSR adidas Stores British Petroleum Drugstore.com DSW GNC Jack in the Box Lowe’s McDonald’s Panera Bread REI Starbucks Stop & Shop Subway Sunglass Hut Target Vitamin Shoppe Wendy’s Sport Nutrition/Diet Atkins Nutritionals* Clif Bar & Company EAS Iovate Health Sciences Marketing* Met-Rx TwinLab/Ideasphere* Wells Dairy/ Weight Watchers Sports/Apparel/ Fashion Champion Cotton, Inc. Los Angeles Kings New Balance Oakley Saucony Tag Heuer USTA Travel Arizona Office of Tourism Canadian Tourism Commission Club Med Continental Airlines Delta Air Lines Hotels.com

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The Nuts and Bolts Mechanical Requirements: HCMN guarantees installation of all contracted advertising programs no later than the 5th day of a campaign’s start month. Alternate post dates are also available for an additional fee.

Panel Advertising Ad Panel

Poster Trim Area

Poster Live Area

Super Panel/Backlit Standard Panel

24”W x 36”H 14-1/4”W x 18-1/2”H

23-3/16”W x 34-1/2”H 13-7/16”W x 17”H

Paper Stock: Standard Panel/Super Panel: 100lb. Gloss Book Stock

Backlit Panel: Duratrans

Overage: Please provide HCMN with 20% extra quantity of each design for every month of the campaign. On-Panel literature and holder specifications for Super & Standard Panels:

On-Panel Brochures/Literature: Maximum width: 4” / Maximum height: 9” On-Panel Coupons: 5” Wide x 3” High (Tear pads of 100 preferred)

Creative Discs: Final artwork, if HCMN is printing, is due one month (30 days) prior to posting. Digital Advertising Client provides finished commercial in one of the following accepted formats: Spot Length: :10 or :30 second, Motion or Static Format Media: CD-Rom Motion Formats (no audio): Pixel Size: 388 x 290 or 720 x 480.

File types accepted: Windows Media (.wmv) preferred, AVI Movies (.avi), MPEG Movies (.mpg)

Static Image Formats (no audio):

Pixel Sizes: 388 x 580 or 388 x 206. File types accepted: .bmp, .jpg, .png (8- and 24-bit), .tga (up to 32-bit), .tif/.tiff (up to 32 bit), .ppt, Photoshop (.psd), and vpb. RGB color space preferred.

Creative Discs: Due one month (30 days) prior to posting. Integrated Advertising/Marketing/Sampling: Requirements vary based upon the exact nature of the contracted campaign. Your HCMN rep will provide you specific info most relevant to your program.

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Terms and Conditions Contracts All rates are net. Rates are guaranteed on 12-month contracts. Early termination or interruption of a contract may be subject to applicable short-term rates. All rates quoted represent space only prices. Production Production is the responsibility of the advertiser. Advertisers must ensure that Health Club Media Network™ receives the posters by the 15th day of the prior month for guaranteed installation by the 5th day of the contracted month. Health Club Media Network™ can provide a printing quote upon request. Should the posters supplied by the advertiser not meet the Mechanical Requirements as specified by Health Club Media Network™, the advertiser will be charged for all work necessary to produce satisfactory poster displays. Late Copy The late arrival of artwork or delays caused by advertiser or agency may keep Health Club Media Network™ from meeting a scheduled display date. In such cases, the advertiser will be charged for the full display period regardless of actual posting date plus any additional posting cost incurred. Reposting An advertiser is entitled to one creative posting per month during the contract period. Unused posting opportunities may not be carried forward and credits will not be issued. Additional or unscheduled changes of copy may be requested and will be subject to an additional charge. Cancellation Privileges Contracts may be canceled prior to display installations provided Health Club Media Network™ has received written notice 60 days before the contractual date of installation. Once displays are installed, early termination of any contract may be agreed upon subject to resale of the open space. Early termination or interruption of a contract will result in the application of a short-term r ate adjustment. Proof-of-Performance Health Club Media Network™ will provide photographic proof-of-performance with a 10% sample of each design poster for each market contracted for the first month of the program (as well as every time there is a design change). Health Club Media Network™ can provide 100% photographic support of all panels in all contracted markets should the advertiser or agency request such support. A nominal charge for additional photography requests will be billed to the advertiser. Billing Payment is to be received within 30 days following the initial date of invoicing. Late payments will be assessed an interest charge of 1.5% per month or the highest legally permitted rate on the late portion of the total contract value. Additionally, a late payment fee of 10% may be assessed on balances overdue for more than over 90 days. The foregoing charges are limited to the maximum legally permitted charges in effect. Legal In the event of default, the defaulting party agrees to pay court costs and attorney fees. Advertising contracts with Health Club Media Network™ shall be interpreted under the laws of the State of California. (Additional provisions where appropriate.)

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