2016 March GrayReports - Student Demand Trends

1. GRAYREPORTS Demand for Higher Education Programs www.GrayAssociates.com Results through March 2016

2. 617.366.2838 www.GrayAssociates.com 2 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Who Is Gray? GrayData IPEDS+ Employment BLS/O*NET Placement Rates Gray Research Student Inquiries GrayReports Demographics US Census Job Postings WANTED Analytics Students Programs StrategyLocations §  Demographic priorities §  Geo-priorities §  Market share §  City selection §  Location selection §  Relocation analysis §  Consolidation §  Program selection §  Program development §  Curriculum enhancement §  Market reports §  Business strategy §  Strategy implementation §  Pricing §  Outcome improvement Advanced Analytics Predictive Models Geo-Analytics Clients: Higher Education Institutions and Stakeholders Competition Program Evaluation System §  Custom Scoring §  Scorecards -  By Program -  By Market -  100+ Markets -  1,000+ Programs Updates Enhanced Crosswalks

3. 617.366.2838 www.GrayAssociates.com 3 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com What is GrayReports? GrayReports tracks demand for higher education. §  Today’s webinar and monthly industry trend reports are free. §  Paid subscribers receive custom monthly reports for their markets and programs. §  Paid subscribers also have online access to detailed data for their programs and markets. Over 45 million qualified inquiries January 2012 to the present Over 750,000 new inquiries in March 2016 Over 200 programs with over 10,000 inquiries Over 300 cities with over 10,000 inquiries

4. 617.366.2838 www.GrayAssociates.com 4 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Agenda 1.  National Inquiry and Conversion Trends 2.  Inquiries and Conversions: Online vs. On-Campus Programs 3.  Views by Program and Segment 4.  Program Evaluation 5.  SocialHP 6.  Summary

5. 617.366.2838 www.GrayAssociates.com 5 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Overall Student Inquiries (All Sources) Overall inquiry volumes for higher education fell another 10%. §  Inquiries were increasing late last year, but the trend broke at the start of the new year. §  This year’s first quarter was down 9% compared to last year’s first quarter. - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec National Inquiries All Programs and Award Levels 2014 2015 2016 -10% YoY

6. 617.366.2838 www.GrayAssociates.com 6 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Branded Inquiries Branded inquiries decreased 10% in March. §  March was the first time Branded inquiries have decreased since July 2015. 0 50,000 100,000 150,000 200,000 250,000 300,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec National Branded Inquiries All Programs and Award Levels 2014 2015 2016 -10% YoY

7. 617.366.2838 www.GrayAssociates.com 7 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com External Inquiries: Overall Results External inquiries decreased in March for the second consecutive year. §  This was the lowest March volume in over four years. §  External inquiries decreased year-over-year in 13 of the last 15 months. 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec National External Inquiries All Programs and Award Levels 2014 2015 2016 -11% YoY

8. 617.366.2838 www.GrayAssociates.com 8 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Inquiry to Application: Overall Conversion Rates Overall conversion rates have been volatile, but were trending up until recent months. §  Since Q1 2014, quarterly rates have risen as much as 18% and dropped by 4%. §  The most recent mature quarter dropped by 1%. §  Both Branded and external inquiry conversion rates dropped in Q4. 80 85 90 95 100 105 110 115 120 125 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Overall Inquiry Conversion Rates: Trends (Indexed to Q1 2014) 1.  Applications are counted in the month in which the inquiry was received (i.e., an inquiry that is received in January and converts in March will be counted as a January inquiry). Typically, the application rate will rise for at least three months after the month in which the inquiries were received. 2.  Total includes unknown source type.

9. 617.366.2838 www.GrayAssociates.com 9 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Overall Student Inquiry Conversions (All Sources) In December, total student conversions for programs in higher education decreased 7% year-over-year. §  This comes after strong growth in November. §  After the weak Q4, conversion rates in Q1 are good, though Q1 has not matured. §  As a result, Q1 seems likely to hit last year’s levels when it matures. 1.  Applications are counted in the month in which the inquiry was received (i.e., an inquiry that is received in January and converts in March will be counted as a January inquiry). Typically, the application rate will rise for at least three months after the month in which the inquiries were received. 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Inquiry Conversions All Programs and Award Levels 2014 2015 2016 -7% YoY Immature Months1

10. 617.366.2838 www.GrayAssociates.com 10 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Average Price for Pay-per-Inquiry The price of an external inquiry increased 3% year-over-year. §  After a record high in February, the average price is back below the $45 mark. §  Better inquiries may cost more—and institutions are competing for fewer inquiries. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 $41.72 $41.81 $41.70 $42.45 $40.94 $44.23 $44.25 $44.00 $45.34 $45.44 $44.79 $42.18 2015 $43.10 $43.50 $43.70 $43.61 $43.80 $43.63 $45.07 $44.75 $45.24 $44.92 $44.67 $44.75 2016 $45.11 $45.93 $44.90 $44.90 $35 $37 $39 $41 $43 $45 $47 Average Price per Inquiry for PPI All Programs and Award Levels Note: PPI means“Pay per Inquiry.” Inquiry price is the average price per inquiry from PPI.

11. 617.366.2838 www.GrayAssociates.com 11 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Agenda 1.  National Inquiry Trends 2.  Inquiries and Conversions: Online vs. On-Campus Programs 3.  Views by Program and Segment 4.  Program Evaluation 5.  SocialHP 6.  Summary

12. 617.366.2838 www.GrayAssociates.com 12 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Inquiries for Online Programs Education Industry Inquiries: YOY Percent ChangeInquiries for online programs fell less than February, but did decrease 5%. §  In 2015, September (+20%), October (+46%), and November (+40%) had solid inquiry volume. §  March did recover from a February that was exceptionally low. 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Inquiries Inquiries for Online Programs All Programs and Award Levels 2014 2015 2016 -5% YoY

13. 617.366.2838 www.GrayAssociates.com 13 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Student Inquiry Conversions for Online Programs Year-over-year, December had 12% more conversions for online programs. §  This trend will probably not continue into the new year. ─  January is on pace to come in very near 2015 levels. 1.  Applications are counted in the month in which the inquiry was received (i.e., an inquiry that is received in January and converts in March will be counted as a January inquiry). Typically, the application rate will rise for at least three months after the month in which the inquiries were received. 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Inquiry Conversions for Online Programs All Programs and Award Levels 2014 2015 2016 Immature Months1 12% YoY

14. 617.366.2838 www.GrayAssociates.com 14 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Inquiries for On-Campus Programs Student demand for on-campus higher education programs dropped 7% year-over-year. §  Inquiries grew in October and November of 2015. §  December fell 8%. §  The decline had accelerated to start 2016—January and February were down 14% and 17%. 2012 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Inquiries Inquiries for On-Campus Programs All Programs and Award Levels 2014 2015 2016 -7% YoY

15. 617.366.2838 www.GrayAssociates.com 15 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Student Inquiry Conversions for On-Campus Programs Conversions for on-campus programs continued to decline—down 13% in December. §  Q1 conversions may reach last year’s levels when these months mature. 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Inquiry Conversions for On-Campus Programs All Programs and Award Levels 2014 2015 2016 1.  Applications are counted in the month in which the inquiry was received (i.e., an inquiry that is received in January and converts in March will be counted as a January inquiry). Typically, the application rate will rise for at least three months after the month in which the inquiries were received. -13% YOY Immature Months1

17. 617.366.2838 www.GrayAssociates.com 17 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com The Big 5 Programs: March Growth Three of the big five programs grew! §  Three of the Big 5 Programs grew 8% or more year-over-year. ─  After massive year-over-year declines in 2014 and 2015, Criminal Justice is regaining some ground. ─  Registered Nursing is continuing to grow and is up more than 14%. §  Medical Assistant and Administrative Assistant continued to fall. -76% 84% 6% -13% -7% 50% 14% 8% -20% -27% -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% Criminal Justice/Police Science Registered Nursing/ Registered Nurse Business Administration and Management Medical/Clinical Assistant Administrative Assistant and Secretarial Science Five Largest Programs Since January 2012 Year-over-Year Change in March Inquiries 2015 YoY % Change 2016 YoY % Change

18. 617.366.2838 www.GrayAssociates.com 18 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Student Inquiries: The Big 5 Cities Once again, the biggest cities were down year-over-year. §  March was much worse than February for the Big 5—all five were down more than 10%. §  Unlike last month, Chicago had the largest decline, with a 34% year-over-year drop. -15% -2% -28% -7% -10% -12% -22% -25% -30% -34% -40% -30% -20% -10% 0% 10% Philadelphia, PA New York, NY Los Angeles, CA Atlanta, GA Chicago, IL Top Five Cities for Inquiries Since January 2012 Year-over-Year Change in March Inquiries 2015 YoY % Change2 2016 YoY % Change Note: The market for each city is defined as a 15-mile radius around the population center of its CBSA.

19. 617.366.2838 www.GrayAssociates.com 19 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com -34% -29% -13% -12% -8% -8% -1% 12% 18% 26% -40% -30% -20% -10% 0% 10% 20% 30% Unknown Degree Associate's Campus External Online Certificate Branded Bachelor's Doctorate Master's Quarterly Change in Inquiries 2014/2015 vs. 2015/2016 (January – March) Inquiry Volumes by Category – Trailing 3 Months Quarterly inquiries for higher-level degrees continued to grow. §  Higher-level degrees continue to have the highest inquiry growth. §  Unlike previous quarters, internal inquiries declined slightly. §  For the quarter, both on-campus and online programs were down.

20. 617.366.2838 www.GrayAssociates.com 20 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Inquiry Volumes by Channel - Trailing 3 Months For the most part, branded inquiry channels outperformed external inquiries. §  Social Media continued to be the fastest-growing channel. §  Five diﬀerent branded inquiry channels grew in March. -76% -45% -39% -31% -21% -19% -9% -7% -4% -3% 8% 10% 36% 57% 178% -100% -50% 0% 50% 100% 150% 200% Display: Branded Inbound Phone: Branded Offline Media: Branded Referral: Branded Affiliate - PPC: External Affiliate: External All Other Internal: Branded PPC: Branded Email: Branded PPL: External Interactive: Branded Website: Branded Organic: Branded PPC - Inbound Call: Branded Social Media: Branded Quarterly Change in Inquiries by Channel All Programs and Award Levels (January – March, YoY)

22. 617.366.2838 www.GrayAssociates.com 22 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com DoE to Accreditors: Employment Outcomes Matter The Department of Education notified accreditors that they need to better monitor employment outcomes. “If there have been poor outcomes for students or other concerns that have arisen at accredited institutions or programs, does the agency need to revise its standards and processes to identify and address those issues more eﬀectively?” Source: Letter from the U.S. Department of Education dated April 22, 2016 titled“Flexibility in Application of Accrediting Agency Review Process; and Emphases in Departmental Review of Agency Eﬀectiveness”, signed by Ted Mitchell, Under Secretary.

23. 617.366.2838 www.GrayAssociates.com 23 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com 85% of BLS growth projections are off by 50% or more. •  45% of BLS’s estimates were too optimistic. Of these, 32% were off by 100% or more. •  45% of BLS’s estimates were too optimistic. Of these, 32% were off by 100% or more. •  55% were too optimistic; these were closer the mark; still, 44% were off by 50% or more55% were too optimistic; these were closer the mark; still, 44% were off by 50% or more. •  45% of BLS’s estimates were too optimistic. Of these, 32% were off by 100% or more. •  55% were too optimistic; these were closer to the mark; still, 44% were off by 50% or more 0% 5% 10% 15% 20% 25% <10% 10-25% 25-50% 50-75% 75-100% 100-150% 150-200% 200%+ Percentage of SOCs Percentage Error Error in BLS Actual vs. Projected Change in Employment 2012-2015 Forecast Too Pessimistic Forecast Too Optimistic Source: BLS Occupational Employment Statistics and BLS Employment Projections 2012-2022 Note: BLS forecasts are for 2022. Gray used the 2012 base and the BLS annual growth rate to estimate 2015 employment.

24. 617.366.2838 www.GrayAssociates.com 24 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Job Postings Are Quite Consistent Over Time New Job Postings in 2012 were a better predictor. - 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 - 250,000 500,000 750,000 2015-16 New Job Postings 2012-13 New Job Postings New Job Postings By 8-Digit SOC* Home Health Aides Stock Clerks and Order Fillers Source: WANTED Analytics. Excludes SOC 53-3032.00 Commercial Truck Drivers.

25. 617.366.2838 www.GrayAssociates.com 25 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Monthly New Job Postings for Securities Traders Some fields are quite volatile; these postings have limited predictive value. New Job Postings New Job Postings Securities and Commodities Traders 2012-2016 Source: WANTED Analytics. SOC 41-3031.03 Securities and Commodities Traders.

26. 617.366.2838 www.GrayAssociates.com 26 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Monthly New Job Postings for Registered Nurses Some occupations have had essentially straight-line growth trends. Postings in these fields would be highly predictive. New Job Postings Registered Nurses 2012-2016 New Job Postings Source: WANTED Analytics. SOC 29-1141 Registered Nurses.

28. Social Horse Power Webinar

29. PROMOTE “People Spend 3X more +me on Facebook than ANY OTHER website in the world.” 1.844.445.1751 info@socialhp.com

30. 1.844.445.1751 info@socialhp.com “The average smartphone user checks their Facebook account 14X a day”

31. 1.844.445.1751 info@socialhp.com “72% of high school students are now using social media to research colleges and universi+es before applying”

32. DID YOU KNOW? 1.844.445.1751 info@socialhp.com DID YOU KNOW? In Academic Impressions’ 2013 survey on enrolment declines, 47% of the 190 institutions participating in the survey missed their enrolment targets last year—many by a significant percentage.

33. 1.844.445.1751 info@socialhp.com “322% increase in Branded Social Media” (source: Gray Associates)

34. 1.844.445.1751 info@socialhp.com “49% of U.S. consumers say friends and family are their top sources of brand awareness” (source: Jack Morton)

35. The Ultimate Guide to Student Advocacy; An Evolution in Word-of-Mouth

36. Pinnacle Career Institute Case Study

37. 1.844.445.1751 info@socialhp.com CONTACT US Should you need to know more on Student Advocacy, reach out to us directly: I Need Employee Advocacy NOW Call 1.844.445.1751 Sounds Interes+ng, I’d Like To Book A Demo info@socialhp.com Get A 25% Discount! Use Promo Code: Gray11

39. 617.366.2838 www.GrayAssociates.com 39 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Key Demand Trends and Observations March generally underperformed. §  Inquiry volumes fell 10%. ─  Branded down 10% ─  Online down 5% ─  On-campus down 7% §  Conversions are down 7%. ─  However, online conversions were up 12% in December. ─  It is too early to tell if January of 2016 will reach last year’s levels. §  Prices are up year-over-year, but down from last month’s new high. §  Several large programs are growing. §  Higher degree levels continue to outperform. §  Better data and systems are available to support your decisions. ─  Where to focus your marketing—by program and market ─  What programs to Stop, Start, Sustain or Grow

40. 617.366.2838 www.GrayAssociates.com 40 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Questions and Contacts Please feel free to contact: Bob Atkins CEO Gray Associates, Inc. Bob.Atkins@GrayAssociates.com @Gray_Associates 617.366.2836

41. 617.366.2838 www.GrayAssociates.com 41 GRAY For more information please contact Gray Associates. Email: Sales@GrayAssociates.com Upcoming Gray Associates’ Webinars Please join us next month! May Webinar (April Results) Thursday, May 26th at 2:00 PM EDT