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Local Broadcast TV Advertising Outlook Steve Lanzano, TVB President & CEO steve@tvb

Local Broadcast TV Advertising Outlook Steve Lanzano, TVB President & CEO steve@tvb.org. Goldman Sachs 23 rd Annual Communacopia Conference September 11, 2014. 2014 for Local Television Advertising. Fundamentals are extremely strong

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Local Broadcast TV Advertising Outlook Steve Lanzano, TVB President & CEO steve@tvb

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  1. Local Broadcast TV Advertising Outlook Steve Lanzano, TVB President & CEO steve@tvb.org Goldman Sachs 23rd Annual Communacopia Conference September 11, 2014

  2. 2014 for Local Television Advertising • Fundamentals are extremely strong • Consumers credit TV as the primary media purchase influencer • Advertising categories key to local TV growth are healthy • Performance on all platforms are showing year-over-year gains 2

  3. Nielsen: More People Are Watching TV Than Ever Before Monthly Hours: Minutes Watched Per Viewer 2+ 3 Source: Nielsen Cross-Platform Report Q1 Each Year

  4. Watching TV at Home Captures the Lion’s Share of Viewing Q1 2014: Weekly Time Spent A18+ (Hrs:Min) 4 Source: Nielsen Cross-Platform Report

  5. A Week in the Life for the Total U.S. Population Q1 2014: Weekly Time Spent (Hrs:Min) 5 Source: Nielsen Cross-Platform Report

  6. TV Remains The #1 Influencer Across All Segments of the Purchase Funnel 6 Source: TVB/The Futures Company; “Purchase Funnel 2012”

  7. IAB Study on Consumer Influence: Auto Intenders’ Vehicle Purchases are Influenced by All Media and Ads Q. Which of the following media influences your CAR/TRUCK purchases? 7 Source: IAB Digital Influence on Auto Intenders, January 2014

  8. Local TV Advertising 2014 Key Category Performance (Jan-Jun 2014) All Categories +3.9% 8 Source: Kantar Media

  9. Double Digit Growth of Station Website and Mobile Ad Revenue Digital Ad Revenue Growth (Jan-Jul 2014 vs. Jan-Jul 2013) • Local TV Stations’ Digital Ad Revenue grew +15% in 2013 • Larger station groups are now selling digital services including • Search Engine Optimization • Reputation Management • Website Design • Ad Placement (Outside The TV Station’s Site) • Email List Management • Many stations have branched out beyond their “owned” media and are selling other media properties’ inventory • Reseller and audience-extension programs now account for 5% of digital revenues, a percentage that’s on the rise Local TV Stations Expected to Generate $3 Billion in Digital Ad Revenue in 2014 9 Source: BorrellAssociates, Inc.

  10. Strong Political Spending for National and Local Elections • Local Broadcast Television gets 85% of TV ad dollars and the lion’s share of all media spending on Political Campaigns • Adults 35+, who comprise the majority of voters in America (76%), spend only 3% of their monthly video consumption time with internet and mobile platforms • Kantar Media CMAG and Magna Global forecast 2014 political spot spending to reach $2.4 Billion and $2.3 Billion, respectively • 2014 political ad spending from Jan-July is up +259.6% versus the same period in the prior year Broadcast is the nuclear bomb. David Axelrod, Obama Political Consultant — 10 Source: TVB, Kantar Media CMAG, Magna Global, Nielsen Q4’13 Cross-Platform Report, U.S. Census Bureau: Voter Statistics, 2008 and 2010

  11. Moving into the Fall Local TV Commercial Pricing is Solid Change (%) in CPM A25-54 11 Source: SQAD Media Market Guide

  12. An Agency Perspective • 2014 Korn Ferry Marketing Pulse Survey • “connect marketing efforts to tangible business outcomes…” • “while customer engagement is critical and…a key focus…the overarching purpose of… this engagement is to drive business results…” • Strata Media Buying Agency Survey, Q2 2014 • “55% of clients say they are most interested in Spot TV…The largest percentage in 22 Quarters of the Survey” 12

  13. 2014 Full Year Outlook • More people are watching TV than ever before and consumer usage remains strong • Average person A2+ spending nearly 160 hours per month with television • Traditional Television represents over 86% of the weekly time spent watching video • Local broadcast television is the most effective video platform in influencing and driving consumer behavior • Advertising category strength is deep and diversified • Return of political spending cycle, solid automotive performance, and increases in healthcare and retail categories • Local Spot pricing remains positive in 2H 2014 • Growth of local broadcast stations’ online and mobile offerings is driving rapid advertiser adoption resulting in double digit digital advertising sales growth • Broadcasters traditional television and digital media platforms offer the mass reach and targeting to advertisers • Local TV stations expected to generate $3 billion in digital ad revenue in 2014 13

  14. Thank you! Local Broadcast TV Advertising Outlook Steve Lanzano, TVB President & CEO steve@tvb.org Goldman Sachs 23rd Annual Communacopia Conference September 11, 2014

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