Consumers Are More Likely to Take on Home Improvement Projects Themselves; New Vertis Customer Focus Study Analyzes Purchasing Behavior of Home Improvement Consumers.

BALTIMORE -- Vertis, the premier provider of targeted advertising, media, and marketing services, today announced the results of its Customer Focus(R) 2004: Home Improvement study, which reveals that consumers are more likely to take on home improvement projects themselves. In 2000, 38 percent of adults surveyed stated they are the home improvement decision makers who do the work themselves; this number increased to 47 percent in 2004.

"The increasing number of large home improvement stores that offer products for minor and major repairs are enabling adults across different age groups and incomes to take on home improvement projects," said Therese Mulvey, vice president, marketing research, at Vertis. "This motivates adults to learn new skills and allows them to be in control of their investment."

Survey data also reveals that the ad insert readership among men and women "do-it-yourselfers" continues to rise. Whether they turn to advertising inserts or circulars for price comparison or to decide where to shop, 76 percent of women "do-it-yourselfers" and 66 percent of men have read advertising inserts in the past seven days; compared to 70 percent of women and 56 percent of men in 2000.

The Vertis Customer Focus(R) 2004: Home Improvement study shows the following additional findings, which provide insight into the differences in consumers' home improvement purchase plans and trends:

Adults More Likely To Be "Do-It-Yourselfers"

    --  In 2004, 38 percent of women surveyed reported they are the
        home improvement decision makers who do the work themselves,
        compared to 30 percent in 2000

    --  58 percent of men stated they make the decision to do a home
        improvement project and do the work themselves, compared to 30
        percent of men who make the decision and have someone else
        professionally do the work (See Figure A)

    --  Of the Older Baby Boomers (1946-1955) surveyed, 52 percent
        make the decision and do the home improvement projects
        themselves, compared to 37 percent who make the decision and
        have a professional do the work

    --  For Generation Y (1977-1994), 42 percent surveyed said they
        make the decision and do the work themselves, versus 23
        percent who make the decision and have someone else
        professionally do the work for them; however, almost 40
        percent of Generation Y said they are not responsible for the
        home improvement decision

    Media That Influences Home Improvement Shoppers

    --  61 percent of women "do-it-yourselfers" who are home
        improvement ad insert readers said they typically make lists
        and plan their home improvement shopping trips based on items
        seen in advertising inserts or circulars, compared to 53
        percent in 2000 (See Figure B)

    --  32 percent of "do-it-yourselfers" say that advertising inserts
        or circulars influence their buying decision the most,
        compared to 20 percent in 2000 (See Figure C)

    --  Of the weekday newspaper readers who plan to build a
        deck/remodel a kitchen or bath, 71 percent said they have read
        an advertising insert or circular in the weekday paper in the
        past seven days

    --  83 percent of Sunday newspaper readers who shop at large home
        improvement stores for minor household repairs have read an
        advertising insert or circular in the past 7 days

    --  86 percent of home improvement ad insert readers who are
        "do-it-yourselfers" with children read home improvement
        advertising inserts or circulars when comparing for price

    Home Improvement Planned Projects

    --  57 percent of those with a household income of $75,000+ are
        planning on doing a landscaping project within the next 12
        months, and 56 percent reported they are planning to do an
        interior painting project (See Figure D)

    --  22 percent of adults 18-39 with a household income of $75,000+
        plan to buy or build a new home, compared to 10 percent in
        2000. Similarly, 13 percent of single Generation X (1965-1976)
        adults said they planned to buy or build a new home, compared
        to six percent in 2000

    --  25 percent of Younger Baby Boomer (1956-1964) homeowners with
        a household income of $75,000+ plan to remodel a kitchen or
        bathroom, compared to 16 percent in 2000

    Factors That Influence Where Home Improvement Shoppers Shop

    --  55 percent of minor household repair shoppers shop at local
        hardware stores (such as Ace, True Value, or Do it Best Corp.)
        for convenience, compared to 27 percent who shop large home
        improvement stores for minor repairs for convenience (See
        Figures E and F)

    --  87 percent of Generation X home improvement shoppers shop at
        large home improvement stores (like Home Depot and Lowe's) for
        home improvement or renovation projects, compared to 80
        percent of Young/Olds (1930-1945)

    --  Conversely, 14 percent of Young/Olds (1930-1945) home
        improvement shoppers shop at local hardware stores for major
        home repair items, compared to six percent of Generation X
        (1965-1976)

    --  71 percent of adults with a household income of $75,000+ shop
        most often at large home improvement stores for minor
        household repairs to assist them with household maintenance.
        Large home improvement stores are also popular among 79
        percent of Generation X with a household income of $75,000+

    --  42 percent of adults with a household income of $30,000 or
        less shop most often at large home improvement stores for
        minor household repairs; compared to 23 percent who shop most
        often at a local hardware store (such as Ace, True Value, or
        Do it Best Corp.), and 22 percent shop at a discount or
        department store (such as K-Mart, Target, or Wal-Mart) for
        minor household repairs

About Customer Focus(R)

Customer Focus(R) is Vertis' proprietary annual study tracking consumer behavior across a wide variety of industry segments -- home improvement, furniture, grocery, sporting goods, home electronics, optical, insurance, office supplies, and discount stores -- and media including advertising inserts, direct marketing, and the Internet. The survey was first conducted in 1998 and, in subsequent years, has been expanded and modified to identify emerging consumer behavior patterns and track shifts in consumer practices and motivations.

Since its inception, Customer Focus(R) has proven to be one of the nation's most comprehensive examinations of consumer behavior. The survey of 3,000 adults -- conducted by one of the nation's leading field research companies in August/September 2003 -- measures both general and industry-specific shopping trends, and Vertis provides the significant data as a value-added service to its clients.

To acquire a customized Customer Focus(R) 2004: Home Improvement study or speak to a Vertis executive, please contact Michelle Metter or Maria Amor at 619-234-0345.

About Vertis

Vertis is the premier provider of targeted advertising, media, and marketing services that drive consumers to marketers more effectively. Its comprehensive products and services range from consumer research, audience targeting, creative services, and workflow management to targeted advertising inserts, direct mail, interactive marketing, packaging solutions, and digital one-to-one marketing and fulfillment. Headquartered in Baltimore, with facilities throughout the U.S. and the U.K., Vertis combines best-in-class technology, creative resources, and innovative production to serve the targeted marketing needs of companies worldwide.

To learn more about Vertis, visit www.vertisinc.com.

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