V. Planning/Buying Team One issues Goals (#5) to Zenith

1. Zenith Spot Broadcast Process August 2007 I. Objective: Team One works closely with Zenith throughout the year coordinating media planning (Team One) and media buying (Zenith). This ongoing relationship can be divided into two separate phases: -Upfront Planning: annual plans -Heavy-ups/Cancellations: ongoing adjustments as markets increase/decrease their budgets The purpose of this A3 is to provide an overview of all stages of spot broadcast buying, accountability, and stewardship involved in this process. • V. Planning/Buying • Team One issues Goals (#5) to Zenith • Team One requests that buys include Added Value equal to 5% of the TV investment and 10% of the radio investment (Added Value = bonus activity provided at no additional investment) • Television examples • Billboards, Sponsorships • :10 spots added value on both sales events • Christmas time bonus spots • Radio examples • Billboards, Sponsorships • Tickets • Promotions • Added Value Logistical Challenges • More difficult to obtain these days as more advertisers seek them out as TiVo-busters • As a result, stations are now charging for that which used to be free (i.e. added value) • Team One also requests that Zenith seek out and pursue Big Ideas and Broadcast Extensions (extensions that require further investment to achieve) • Not always appropriate for Lexus • Call to action car/lease giveaways • Car display at low traffic/inappropriate events • Zenith delivers Broadcast Extension Opportunities (#6) • Summarizes all extensions negotiated on a market by market basis • Details activation process • Team One approves or rejects • X. Maintenance /Stewardship Zenith shepherds buys throughout quarters and issues Monthly Market Conditions Update (#14) • Ensures upfront rates continue to be the lowest • Adjust/renegotiates if this is not the case • Monitor placement of spots, competitive separation Time Period Post • Zenith pulls ratings to ensure spots lived up to estimated ratings • Zenith requests Audience Deficiency Units for spots that did not • Zenith requests makegoods for spots that never ran Team One actualizes dollars and points on quarterly basis • II. Stages • Pre-Planning • Planning/Buying • Buys completed, on hold • Buys Purchased • Pre-Post • Maintenance/Stewardship • Post Buy XI. Post Buy Zenith creates Quarterly TV Posts (#15) • Delivered 5-6 months after quarter to Team One • Currently presented only to the South TV Post Includes • Highlights • Local People Meter (LPM) ratings • Under/over-delivery +/- 10% Radio • No post • Zenith checks rotations • III. Pre-Planning Zenith Prepares Cost Per Point Request Form (#1) • Review prior year’s purchased/planned CPP • Analyze posting/preemption history • Forecast market conditions • Provide market specific comments on CPP Request Form • Estimates weekly TRPs levels based upon availability and efficiency • Calculate CPPs based upon the above research CPP Request Form sent to Team One • Team One compares CPP to industry average (SQAD reports) • Team One compares CPP to prior year • Team One challenges any excessive Zenith increases • Zenith defends CPPs or adjusts accordingly Radio Rankers • Zenith pulls Radio Rankers (#2) detailing how individual stations in a market perform against the target • Provides rationale for approved stations XII. Variations Heavy-ups and Cuts • Similar process as upfront • Two weeks to turn around Network Buys • Similar process as upfront • Different buying guidelines VII. Buys Completed, On Hold Upfront buy reviews • Zenith Supervisors review Buy (#7, #8) • Zenith presents to Team One – buy on hold at this point • Team One double checks against buying guidelines • Flights, Dates, TRPs, Goals • Programming acceptable and up-to-date • Daypart Mix • Team One challenges discrepancies by issuing Upfront Buy Review (#9) • Zenith defends or adjusts buy Team One presents to LDA for approval • XIII. Proposed Action Plan Accountability to Team One/Tim Bliss • Zenith presents upfront buy recap to Tim • Zenith presents quarterly post to Tim • Zenith presents posts to ALL regions Radio/Cable post • Challenges • Time consuming • Radio does not honor Grading System/Buyer accountability • Measure • CPP increase from prior year • How much weight sticks • Added value • Responsiveness • Big Ideas or Extensions • Programming • Challenges • Subjective • Market conditions vary greatly • VIII. Buys Purchased Zenith makes buy after LDA approval Zenith delivers Upfront Buying Conditions Summary (#10) • Summarizes buying conditions experienced on a market by market basis Zenith delivers Station Share Summary (#11) • Percent of buy each station receives Zenith delivers Added Value Summary (#12) • Details all added value on a market by market basis Zenith delivers Station Change Summary (#13) • Details any reasons for a station to be added/removed from buy from prior year • IV. Planning/Buying Team One creates and issues Buying Guidelines (#3) • The Buying Guidelines dictate the parameters Zenith must follow during the buying process • Summarizes • TV, cable, radio guidelines • Positioning, competitive separation • Programming guidelines • Daypart regulations • Makegoods, ADU, bonus spots • Sponsorships • Added value, extensions Team One prepares Market Summaries (#4) with guidance from the local account team • Summarizes market opportunities such as sports and sponsorships • Identifies approved local stations • Zenith uses this document in conjunction with the Buying Guidelines to hone in on a market’s unique character and to plan accordingly • IX. Pre-Post Zenith re-rates buy every time a new rating book comes out prior to air date • Book reflects change in rating trends and viewing habits Zenith reviews buys 1 month prior to airdate to insure programming is up-to-date XIV. Next Steps Zenith Meeting Presentation of quarterly post