The population changes constantly Shouldn t your data?

The population changes

constantly — Shouldn’t your data?

Finding high-growth markets

The U.S. population count is changing constantly. These changes occur daily, weekly and monthly. Births, deaths, immigration and migration for a variety of reasons — including following economic opportunity — are all factors of this change. Given these conditions, there is a corresponding swing in booming communities that offers great potential for retailers and advertisers, while other communities may be stagnant. Being in tune with those changes in population and where they are occurring is imperative to making strategic business decisions regarding advertising, marketing and retail locations. This aspect is especially true as businesses of all sizes struggle to maintain — and even grow — in today’s troubled economy.

In order to reach these new growth areas with marketing communications and storefront locations, one must answer the following questions:

• Where are the communities currently experiencing a “boom”?

• What are the lifestyle tendencies and buying preferences for the households in those communities?

Understanding where populations are growing is important; however, knowing when the growth is happening is even better. In today’s competitive environment, connecting with the consumer is just as important as getting to the consumer first. In order to maximize that option, it is imperative to have a comprehensive and reliable source of data to provide accurate insight regarding the areas where it’s possible to capitalize on market growth opportunities and to make sound, strategic business decisions. In short, your data source should be constantly updating itself to provide you with the most current information and conditions in near real time. Until recently, the only alternatives for understanding household counts in local areas, was the U.S. Census, which is estimated annually and statistically based on decennial count. Some marketers have added the data source of U.S. postal address counts as another measure of growth in areas. However, these postal counts can be risky and less precise because it can take months or years for a postal address application to turn into an actual, occupied address.

What is becoming more relevant is a near-real-time measurement of the households in local areas as well as the consumer conditions or tendencies of those households. As a complement to both the U.S. Census estimates and postal counts, leveraging the dynamic data housed in compiled consumer databases as a key measure of growth in local areas is showing distinctive results. Experian®

is helping to move this opportunity forward by taking our compiled household consumer demographic database INSOURCESM

— which contains data on 98 percent of the households in the United States — to create a geosummarized version of key elements to help identify the household and neighborhood conditions and to realize not only where the growth is occurring, but also when.

INSOURCE core information is sourced at individual and household levels, and updates are registered on a daily, weekly and monthly basis. These changes are captured, compiled and summarized more quickly than traditional geographic data files, demonstrating the ability to see near-real-time population growth. This system provides marketers with ground-level intelligence to make more informed business decisions. In addition to understanding the location of new growing markets, we can provide information about key household demographics, purchasing behaviors and

Finding high-growth markets

lifestyle choices associated with those consumers. In contrast with U.S. Census estimates or simple postal counts, addresses appearing on INSOURCE are actual mailable households containing consumers.

To demonstrate the power of the INSOURCE data summarized for local areas, we have selected 10 ZIP®

codes from across the United States that would have been vastly underestimated in terms of their consumer potential based on Census Estimate numbers from 2007. We’ve also selected 10 areas that would have been overlooked altogether. As you can see in some of our examples, the Census Estimates converged with the INSOURCE numbers in 2008, a full year later. During this time, some of the opportunities may have been taken by your competition. To help bring some perspective, we’ve also included a snapshot description of each of the 20 featured neighborhoods using Experian’s Mosaic®

consumer lifestyle segmentation along with other community dimensions. Mosaic is a household-based segmentation system that classifies all U.S. households and neighborhoods into 60 unique Mosaic types and 12 groupings that share similar demographic and socioeconomic characteristics.

Take a look at these areas. Did your data source underestimate them, causing you to miss potentially lucrative opportunities? Do you see opportunities for your business to reach targeted consumers before your competition? Are you taking advantage of the best data resources available to have a complete, reliable and accurate view of your target markets? Taking advantage of the advancement in alternative, actual household-based geographic data sets to make confident marketing and location intelligence decisions to help respond more rapidly to changing consumer markets.

The following are the two sets of matrices that provide the detailed views of the top 10 underestimated ZIP codes and the top 10 overlooked ZIP codes. These details will help to illustrate the conditions of these areas and where incorporating content from the INSOURCE geosummarized data for local areas would have provided that additional insight.

Top underestimated ZIP Codes

Rank ZIP Code and community name INSOURCESM spring 2008 households Census estimates 2007 Census 2000 actuals INSOURCE fall 2008 households Census estimates 2008 First-ranking Mosaic® segment Second- ranking Mosaic segment Third- ranking Mosaic segment 1 85242 Queen Creek, AZ 26,788 10,306 4,136 29,652 29,806 C02 — Prime Middle America D01 — Nuevo Hispanic Families A07 — New Suburbia Families 2 77469 Richmond, TX 29,043 17,463 14,426 29,299 23,724 A07 — New Suburbia Families B05 — Second Generation Success A06 — Small Town Success

Finding high-growth markets

and community name INSOURCESM spring 2008 households Census estimates 2007 Census 2000 actuals INSOURCE fall 2008 households Census estimates 2008 First-ranking Mosaic® segment Second- ranking Mosaic segment Third- ranking Mosaic segment 3 11368 Corona, NY 38,163 27,915 28,504 38,671 27,145 D01 — Nuevo Hispanic Families E01 — Ethnic Urban Mix H04 — Aspiring Hispania 4 76248 Keller, TX 26,484 16,582 9,940 27,085 27,904 C02 — Prime Middle America A07 — New Suburbia Families A02 — Dream Weavers 5 75038 Irving, TX 22,935 13,095 12,792 22,991 13,761 H03 — Stable Careers H01 — Young Cosmopolitans A01 — America’s Wealthiest 6 01841 Lawrence, MA 23,465 13,854 14,176 23,959 13,449 J02 — Latino Nuevo D01 — Nuevo Hispanic Families K05 — New Generation Activists 7 78261 San Antonio, TX 3,903 1,145 476 3,975 3,881 A02 — Dream Weavers A07 — New Suburbia Families A03 — White-Collar Suburbia 8 84096 Herriman, UT 4,605 1,411 1,001 4,407 4,659 A07 — New Suburbia Families C02 — Prime Middle America A06 — Small Town Success 9 89139 Las Vegas, NV 8,389 4,923 763 8,709 10,283 B01 — Status Conscious Consumers C02 — Prime Middle America B05 — Second Generation Success 10 92694 Ladera Ranch, CA 6,856 1,593 1,178 6,915 7,270 A01 — America’s Wealthiest A03 — White-Collar Suburbia A04 — Upscale Suburbanites 1. 85242 Queen Creek, AZ

Top Mosaic segments: Prime Middle America/Nuevo Hispanic Families/ New Suburbia Families

This large geographic community is southeast of Chandler and Tempe, Ariz. Many of the residents of this newer neighborhood have joined in the housing boom, where statistics reflect a tremendous spike in home sales since 2004 and 2005. This neighborhood is a slice of middle America represented by a mix of 20-year-olds and 30-year-olds, mainly Caucasian and Latino households whose residents have good-paying jobs and are looking to find opportunity to support their growing family needs and activities. A recent 2008 Citizen Survey showed that 72 percent viewed their quality of life in Queen Creek as excellent or good and plan to stay in the community for the next five years, as the natural ambience, services and activities make for an attractive place to reside.

Finding high-growth markets

Top Mosaic segments: New Suburbia Families/Second Generation Success/ Small Town Success

Fifteen miles southwest of Houston and located southeast of George Bush Park, this neighborhood in Richmond, Texas, is experiencing tremendous new housing growth. The residences are upper-middle-class and multiethnic households of couples and families who enjoy a prosperous way of life. This fast-growing, metro-fringe community consists mainly of new and growing families along with middle-aged couples who balance their work life against the demands of family life. These busy and successful households are involved in family activities and take advantage of opportunities of living in the shadow of Houston.

3. 11368 Corona, NY

Top Mosaic segments: Nuevo Hispanic Families/Ethnic Urban Mix/ Aspiring Hispania

Located in the New York City borough of Queens, Corona is a community where many young families reside and can enjoy the proximity to a major metropolitan area. Predominantly Hispanic, Corona represents classic young and diverse consumers striving to better themselves and their families’ lives. While this neighborhood does not necessarily reflect new home development, it does represent the almost double-digit percentages of new residents moving into this area. Many of those who reside in this area enjoy athletic venues like Shea Stadium and Arthur Ashe Stadium and are near the activities offered in New York City.

4. 76248 Keller, TX

Top Mosaic segments: Prime Middle America/New Suburbia Families/ Dream Weavers

Keller, Texas — a neighbor of Haslet — also is illustrating dramatic growth within the Dallas/Fort Worth (DFW) metroplex area. This neighborhood is a mix of affordable and upper-middle-class housing, showing a continuing increase in home sales starting in Q1 of 2004. The residents of this area are dual-income couples and families with good-paying white- and blue-collar occupations who are forming deep roots in their community. These hard-working and energetic households are involved with family activities and enjoy all the amenities that a successful career can provide.

5. 75038 Irving, TX

Top Mosaic segments: Stable Careers/Young Cosmopolitans/ America’s Wealthiest

This greater-Dallas neighborhood resides just southeast of the DFW airport and between Route 161 and Route 114. This is a diverse group of residents who tend to be young to middle-aged singles and couples who are earning upper-middle-class incomes in professional job capacities. This area is showing double-digit new movers into the area and also reflecting stable home sales in recent quarters. Residents of this north Dallas suburb enjoy living a comfortable way of life that a metropolitan city can offer.

Finding high-growth markets

Top Mosaic segments: Latino Nuevo/Nuevo Hispanic Families/New Generation Activists

Located 25 miles north of Boston, Lawrence has shown sporadic growth in the past nine years. Known as the “Immigrant City,” it always has been a multiethnic and multicultural gateway, with its residents being predominantly Hispanic — as demonstrated by a high concentration of Mosaic segments of Latino Nuevo and Nuevo Hispanic Families. The city remains an urban center, with 35 percent of the economy still manufacturing-based. There also has been a spike in recent home sales over the past year in Lawrence, which provides affordable housing for this growing area with young residents. While incomes are lower in this area relative to other Massachusetts ZIP codes, the households here are family-oriented and tend to make purchases accordingly.

7. 78261 San Antonio, TX

Top Mosaic segments: Dream Weavers/New Suburbia Families/White Collar Suburbia

This neighborhood is located north of the San Antonio city center and southeast of Camp Bullis. The affluent residents of this suburban area comprise new and established couples and families who work hard to provide and experience the good things in life. This area also has experienced a dramatic increase in home sales since 2005. Living their pursuit of the American dream, these mainly affluent households take advantage of all that their metro-fringe community has to offer.

8. 84096 Herriman, UT

Top Mosaic segments: New Suburbia Families/Prime Middle America/Small Town Success

The current buzz is on how fast Utah is growing, and the area’s housing

construction is one indicator of this trend. To keep up with the growth, the Postal ServiceTM

is adding two new ZIP codes to some booming areas, and Herriman, Utah, is one of them. If you haven’t been to Herriman in the past year or two, you’d hardly recognize the place now, as it seems like the most popular vehicle there is a backhoe. This neighborhood, located south of Salt Lake City and southeast of the Great Salt Lake, is now home to those families who are pursuing their American dreams and establishing themselves in this newly thriving, family-focused community.

9. 89139 Las Vegas, NV

Top Mosaic segments: Status-Conscious Consumers/Prime Middle America/ Second Generation Success

This Las Vegas community is located southwest of McCarran International Airport. In the shadow of the brighter lights of Las Vegas city center, these upper-middle-class suburban neighborhood residents lead active lives and tend to enjoy socialized types of activities. The residents are mainly married couples who are middle-aged baby boomers and second-generation families. They work hard to establish themselves and their families, keeping themselves focused on earning their way toward achieving a successful life.

Finding high-growth markets

Top Mosaic segments: America’s Wealthiest/White-Collar Suburbia/ Upscale Suburbanites

This affluent and upscale suburban community is located in southern Orange County just outside the city limits of San Juan Capistrano and Mission Viejo. Due northeast and approximately 20 minutes from Laguna Beach, this master-planned community is home to predominantly wealthy households that have built new homes with all the amenities that reflect a successful lifestyle. They enjoy entertaining, socializing and keeping up with the demands of an active lifestyle, this is a community that boasts many new shops and restaurants and offers endless activities to complement the socially active, family-oriented way of life of its upscale residents. This community was significantly less completed in 2000 and is expected to reach build-out in 2013.

Top Overlooked Zip Codes

Rank ZIP Code

and community name INSOURCESM spring 2008 households Census estimates 2007 Census 2000 actuals INSOURCE fall 2008 households Census estimates 2008 First-ranking Mosaic segment Second-ranking Mosaic segment Third-ranking Mosaic segment 1 90094 Playa Vista, CA 1,952 4 4 2,194 4 B02 — Affluent Urban Professionals A01 — America’s Wealthiest A04 — Upscale Suburbanites 2 27617 Raleigh, NC 2,646 51 19 2,797 3,392 B02 — Affluent Urban Professionals I03 — Comfy Country Living A01 — America’s Wealthiest 3 85388 Surprise, AZ 5,318 293 165 5,614 6,007 B05 — Second Generation Success C02 — Prime Middle America C01 — Second City Homebodies 4 95742 Rancho Cordova, CA 1,687 357 75 2,066 2,301 G01 — Hardy Rural Families C01 — Second City Homebodies E02 — Urban Blues 5 60604 Chicago, IL 1,320 203 77 1,456 196 A04 — Upscale Suburbanites A03 — White-Collar Suburbia L02 — Major University Towns 6 93243 Lebec, CA 1,019 74 71 1,040 54 G01 — Hardy Rural Families B03 — Urban Commuter Families I01 — Industrious Country Living 7 75201 Dallas, TX 6,136 2,807 55 6,931 3,973 H01 — Young Cosmopolitans B02 — Affluent Urban Professionals H03 — Stable Careers 8 33035 Homestead, FL 4,263 1,752 409 4,262 3,610 D01 — Nuevo Hispanic Families H03 — Stable Careers E05 — American Great Outdoors

Finding high-growth markets

Rank ZIP Code

and community name INSOURCESM spring 2008 households Census estimates 2007 Census 2000 actuals INSOURCE fall 2008 households Census estimates 2008 First-ranking Mosaic segment Second-ranking Mosaic segment Third-ranking Mosaic segment 9 94158 San Francisco, CA 2,333 100 109 2,438 100 H01 — Young Cosmopolitans H03 — Stable Careers B02 — Affluent Urban Professionals 10 80238 Denver, CO 2,537 149 0 2,720 2,990 K01 — Unattached Multi-cultures K02 — Academic Influences F03 — Southern Blues 1. 90094 Playa Vista, CA

Top Mosaic Segments: Affluent Urban Professionals/America’s Wealthiest/ Upscale Suburbanites

This suburban Los Angeles neighborhood is located southeast of Marina del Rey and north of the Los Angeles International Airport. Playa Vista brings to its residents the best of the Westside and provides a haven in the heart of Los Angeles. This charming neighborhood is inspired by all the latest innovations, such as a model for Green development using energy-saving systems and nontoxic and recycled materials. Playa Vista is also located close to the beach and is part of Los Angeles’ vibrant and active lifestyle. Playa Vista reflects a diverse collection of residences, including detached single-family houses, town homes, condominiums and urban-style lofts. It is a place where its residents pride themselves on being a new community that has the charm and spirit of a small town woven into the heart of the big city. Singles, couples and families enjoy the conveniences of the emerging digital world combined with a down-home lifestyle that offers many social amenities.

2. 27617 Raleigh, NC

Top Mosaic Segments: Affluent Urban Professionals/Comfy Country Living/ America’s Wealthiest

North Carolina’s capital city area certainly makes the grade when it comes to accolades. Over the past five years, Raleigh has been praised for its quality of life, excellent education, entertainment options and business climate. This area of Raleigh is located in the northern section of the city, which is also north of the Raleigh International Airport and William B. Umstead State Park. This newer, growing neighborhood has experienced urban sprawl and is now home to varying ages of established, affluent professionals as well as some older adults who are looking to live comfortably in their retirement years.

3. 85388 Surprise, AZ

Top Mosaic Segments: Second Generation Success/Prime Middle America/ Second City Homebodies

Defining vibrant Southwest living, Surprise is northwest of Glendale/Phoenix, Ariz. Nestled between Glendale and White Tank Mountain Park, Surprise has seen home sales increase tremendously since 2004. Residents are financially conservative, hard-working, middle-aged households that also are looking to provide a good life for their families. These ethnically diverse residents love to participate in community activities as well as entertain at home. Balance is what

Finding high-growth markets

Top Mosaic Segments: Hardy Rural Families/Second City Homebodies/ Urban Blues

This community is slightly east of Sacramento, Calif. The residents are primarily white and younger and are about evenly divided between singles and married couples. This area has shown economical commercial opportunities compared with neighboring Sacramento neighbor and has experienced strong housing growth since 2005. The middle-aged couples and families living in this area are mainly financially conservative and dual-working households whose residents enjoy outdoor activities that complement their way of life but also make the time to relax at home with friends and family.

5. 60604 Chicago, IL

Top Mosaic Segments: Upscale Suburbanites/White-Collar Suburbia/Major University Towns

This downtown Chicago neighborhood is located near Grant Park, the Art Institute and DePaul University and boasts a population mix of affluent, middle-aged couples and singles as well as younger adults who are involved with or are attending the university. This upscale neighborhood is ethnically diverse, and residents enjoy all of the amenities that a large metropolitan city offers. This emerging neighborhood provides its residents with access to a variety of activities, be it athletic or cultural. A small ZIP code geographically, this neighborhood saw a sharp increase in home sales in Q1 and Q2 of 2008.

6. 93243 Lebec, CA

Top Mosaic Segments: Hardy Rural Families/Urban Commuter Families/ Industrious Country Living

Located approximately 50 miles south of Bakersfield, Calif., and west of Santa Barbara, this mountain community rests on the edge of Fort Tejon State Historical Park. Outsiders know this region as the Grapevine. Lebec was named after a 19th

-century pioneer killed by a grizzly bear. Approximately 75 percent of the population is white, middle-aged, mostly married couples who enjoy this remote community’s way of life, which thrives at a slower pace. It is also the home of many baby-boomer families who commute into the larger cities for their jobs and look forward to coming home to a more serene way of life.

7. 75201 Dallas, TX

Top Mosaic Segments: Affluent Urban Professionals/Young Cosmopolitans/ Stable Careers

Near the new American Airlines Arena, this affluent area in Dallas is thriving with multiuse development, similar to a mini Times Square. Experiencing a neighborhood renaissance, this area just slightly northwest of Dallas city center is seeing many new houses, condominiums and apartments and a revived retail and restaurants district. Many of the new, up-and-coming young professionals who are single and earning above-average incomes are residents of this neighborhood and have socially active and busy lifestyles. “Work hard, play hard” is the mantra of these status-conscious individuals.

Finding high-growth markets

Top Mosaic Segments: Nuevo Hispanic Families/Stable Careers/American Great Outdoors

Homestead is located south of Miami, and this neighborhood is centered within Miami-Dade County and located west of Homestead Air Reserve Base and the Key Gate Golf and Country Club. Residents are an ethnically diverse mix of white and Latino families and empty nesters, many of whom enjoy the many outdoor activities that Florida can provide year-round. Most residents live in modest homes and apartments in some of the newer developments. Utilizing their disposable income, these households know how to stretch their budgets to afford comfortable lifestyles.

9. 94158 San Francisco, CA

Top Mosaic Segments: Young Cosmopolitans/Stable Careers/Affluent Urban Professionals

This neighborhood is located in the east/northeastern edge of San Francisco along the San Francisco–Oakland Bay Bridge. This urban neighborhood, also known as Mission Bay, is home to many young, ethnically diverse couples and mainly singles who work in good-paying professions that provide them with comfortable lifestyles. These residents are socially active and have prosperous leisure lives, traveling frequently for business and pleasure and also enjoying the city-quality amenities that living in this urban neighborhood provides. Home sales have shown growth in the last two years.

10. 80238 Denver, CO

Top Mosaic Segments: Unattached Multi-cultures/Academic Influences/ Southern Blues

Located east of the city center of the “Mile High City,” this Denver neighborhood is south of Rocky Mountain Arsenal. The residents of this urban community are highly mobile, multiethnic singles, single parents and unmarried couples who are working to improve their state in life. These households engage in outdoor activities such as rock-climbing, hiking and skateboarding which can be enjoyed while being cost-conscious. Home sales have spiked since late 2004 and 2005, and this neighborhood has shown double-digit new moves over the past year. In summary, the U.S. population is changing constantly. With more competition than ever in the consumer market, retaining market share as well as understanding where to focus your business strategy for market growth is vital. Businesses that rely on data to reflect and understand these changing dynamics need to include all various data sources to have a complete, current and balanced perspective of conditions within local markets.

To find out more on how Experian can provide the most current data views of local market conditions, contact your local Experian sales representative at 1 800 850 4389 or visit www.experianmarketingservices.com.

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