Holiday 2017

Contents Holiday Sales Projection (Slides 3-7) Why TV? (Slides 8-13) TV Assets Motivate Online Shoppers (Slides 14-24) Why Broadcast? Broadcast vs Cable (Slides 26-30) Local Broadcast Capitalizes on Markets Uniqueness (Slides 31-34) Broadcast Delivers Key Categories (Slides 35-42)

Holiday Sales Expected to Increase by 4% Source: NRF 2017 Holiday Shopping Trends Survey

Holiday Shoppers Not Afraid to Spend How much do you expect to spend on gifts this holiday season? Survey Methodology This survey was commissioned by CPC Strategy and conducted by Survata, an independent research firm in San Francisco. Survata interviewed 1504 online respondents between July 13, 2017 and July 14, 2017. These were the numbers of respondents by age: 18-24: 195 respondents 25-34: 287 respondents 35-44: 288 respondents 45-54: 291 respondents 55-64: 295 respondents 65+: 148 respondents Number of respondents by reported gender: Female: 815 respondents Male: 689 respondents Source: Cpcstrategy: The 2017 U.S. Holiday Shopping Forecast

Factors Influencing Decision to Shop at a Retailer Survey Methodology This survey was commissioned by CPC Strategy and conducted by Survata, an independent research firm in San Francisco. Survata interviewed 1504 online respondents between July 13, 2017 and July 14, 2017. These were the numbers of respondents by age: 18-24: 195 respondents 25-34: 287 respondents 35-44: 288 respondents 45-54: 291 respondents 55-64: 295 respondents 65+: 148 respondents Number of respondents by reported gender: Female: 815 respondents Male: 689 respondents Source: Cpcstrategy: The 2017 U.S. Holiday Shopping Forecast

November Kicks Off Holiday Spending When Do You Plan To Start Your Holiday Shopping? Survey Methodology This survey was commissioned by CPC Strategy and conducted by Survata, an independent research firm in San Francisco. Survata interviewed 1504 online respondents between July 13, 2017 and July 14, 2017. These were the numbers of respondents by age: 18-24: 195 respondents 25-34: 287 respondents 35-44: 288 respondents 45-54: 291 respondents 55-64: 295 respondents 65+: 148 respondents Number of respondents by reported gender: Female: 815 respondents Male: 689 respondents Source: Cpcstrategy: The 2017 U.S. Holiday Shopping Forecast

Retailer Holiday Strategies % of Retailers Source: RetailMeNot: 2017 Holiday Retail Trends & Guide

Why TV?

People Spend the Most Time with Broadcast Television of All Ad Supported Platforms Source: GfK TVB Mentor Survey Spring 2016. M-S 6A-12M. Persons 18+. Online/internet platforms such as e-mail, social media, internet radio and websites, are totaled for any online device-PC, Smartphone and Tablets. Broadcast TV News Websites includes local TV station websites & network websites for news/weather/sports.

Television Dominates! With the Adult Population in General Source: Nielsen The Total Audience Report Q1 2017 (released July’17)

Nielsen’s Total Audience Report TV Rules! Q1 2017: Weekly Time Spent A18+ (Hrs:Min) Television Viewing 34:25 Video on a PC 2:20 Video on a Smartphone 0:47 Source: Nielsen The Total Audience Report Q1 2017 (released July’17), TV Viewing=Live+time shifting

What Influenced Consumers Most Source: GfK TVB Purchase Funnel 2017 A18+ Most important for media that registered 2% or higher.

Ad Recall by Platform: Highest on TV % able to recall half or more of the advertisers Source: CRE “Evaluating Engagement and Recall by Platform”, presented at Nielsen 360 June 2016 Ages 16-54, Total of 38 national ads tested across five shows: Bones, The Big Bang Theory, Family Feud, Family Guy and Survivor

TV Assets Motivate Online Shoppers

Consumer Spending Online to Increase By 12% Over Last Year Dollars (in billons) Source: Forrester Data: Online Holiday Retail Sales Forecast, 2017 (US)

Retailers Plan to Put Greater Focus on Online Shoppers 58% of retailers plan to make online shoppers their main target in 2017, while 42% will be focusing on in-store shoppers. Source: RetailMeNot: 2017 Holiday Retail Trends & Guide

TV Ads Motivate Opinion Leaders Which of the following did you do after seeing/hearing the ads for the category on television? Went online to learn more about what was advertised Visited a store/office/facility/branch Remembered you had seen the brand advertised before (i.e., the newspaper, radio or the internet) Went to the website or app advertised to learn more about what was advertised Talked with others about the advertisement Source: GfK TVB Purchase Funnel 2017 A18+ Opinion Leaders

TV Motivates Key Demos Which of the following did you do after seeing/hearing the ads for the category on television? Source: GfK TVB Purchase Funnel 2017

Broadcast TV Delivers Internet Shoppers Index Source: GFK MRI Spring 2017 , Base: 25-54 Index Internet Shopping: Ordered items $50+.

“Have TV ads influenced your search selections?” Source: GfK TVB Purchase Funnel 2017 “When doing an online search, how often, if at all, have TV ads you have seen influenced you in some ways in your search?” (Yes = combination of Every time, Most of the time & Sometimes)

Leverage All Local Broadcast Screens Over the Air Digital

What Influenced Consumers Most in Digital Media: Broadcast Websites and Apps Source: GfK TVB Purchase Funnel 2017 A18+ (% Most important media type among those who saw/heard ads in at least 1 media source).

Local Television Websites/Apps Most Preferred Which of the following websites or apps are you most likely to turn to when you need information about local news or events? Source: GfK TVB Purchase Funnel 2017 A18+

“When Visiting a Television Station’s Website or App, do you View the Ads?” Source: GfK TVB Purchase Funnel 2017 A18+ “How often do you look at the video ads on that local television station’s website or app?” (Yes = combination of Every time, Most of the time & Sometimes)

Why Broadcast? Broadcast vs. Cable Local Broadcast Capitalizes on Markets Uniqueness Broadcast Delivers Key Categories

Broadcast Television Has Greater Purchase Influence than Cable For each of the following retail categories, please tell us which of the following media influences your purchases Source: NRF Media Behaviors & Influence Study January 2017

Broadcast: Superior Holiday Season Ratings Adults 25-54 Live+SD Ratings Source: Nielsen 10/24/2016 - 12/25/2016 Adults 25-54 Live+SD Ratings; ; Broadcast Includes all Networks and Syndication. A25-54 10 Cable Networks based on A25-54 Ratings. Vodka 2010

The Programming of Choice Is On Broadcast TV – 25 of the Top 25 Shows Source: Nielsen, 9/25/17-10/8/17, Ranked by A25-54 Live+SD US AA%

Thanksgiving Ad Kickoff: One Program Has 2-8X the Reach of Full Day on Cable 1 unit 1 unit 1 unit 1 unit 18 units 41 units 9 units 12 units 16 units 40 units 24 units Source: Nielsen NPower. November 24th 2016 Adults 25-54. Vodka 2010

Broadcast TV Reaches Parents during the Holiday Season Adult 18+ Live+SD Ratings Source: Nielsen NPower 10/24/2016 - 12/25/2016 Adults 18+ w/ presence of children Live+SD Ratings; A18+ 10 Cable Networks based on A18+ Ratings. Vodka 2010

One Size Does NOT Fit All. Local TV Recognizes Each Market’s Uniqueness The redder, the better Source: GfK MRI 2016 Market-by-Market weighted by Adult 18+ population. Shopped in past 3 months.

Each Retailer has Their Markets of Opportunity Hollister’s Top Sales DMAs Source: GfK MRI 2016 Market-by-Market weighted by Adult 18+ population. Bought Anything at Hollister in the last 3 Months.

Awards Program Viewing Differs by Market – “CMA Awards” on ABC Top Metered Markets HH Rating (Live+SD) Source: The Nielsen Company, Arianna, 11/2/16

NFL Delivery on Broadcast vs. Cable Networks Source: Arianna, Sept. – Dec. 2016

Where Do You Plan to Purchase Holiday Items This Year? Source: NRF Monthly Consumer Survey Oct. 2016

Consumer’s Wish List This Holiday Season Source: RetailMeNot: 2017 Holiday Retail Trends & Guide

Broadcast Reaches Clothing Store Shoppers Index Source: GfK MRI Spring 2017, Base: Adults 25-54 Shopped at JCPennys, Kohl’s, The Gap, Macy’s, Nordstrom, Express or Forever 21 in the last 3 Months.

Broadcast Reaches Electronic Store Shoppers Top 10 Programs by Index 174 163 156 155 154 151 148 142 141 141 Source: GfK MRI Spring 2017, Base: Adults 25-54 Shopped at Best Buy, Apple Store, or RadioShack in the past 12 months. Bob’s Burgers – Syndication.

Broadcast Reaches Toy Shoppers Top 10 Programs by Index 174 158 153 145 143 142 140 140 137 134 Source: GfK MRI Spring 2017, Base: Adults 25-54 Spent any amount on toys in the last 12 months. Modern Family, Friends – Syndication.

Broadcast Delivers Jewelry Shoppers Top 10 Programs by Index 214 183 176 176 167 161 159 157 156 156 Source: GfK MRI Spring 2017 Adults 25-54; Index for Spent $100+ on fine jewelry in the last 12 months.

Broadcast TV Reaches Consumers That Enjoy Eating Out Top 10 Programs by Index 157 153 153 152 147 146 144 141 140 140 Source: GfK MRI Spring 2017 Adults 25-54; Went to Applebee's, The Cheesecake Factory, Outback Steakhouse, or T.G.I. Fridays in the last 6 months.

Broadcast: The Destination for the Leisure Traveler Top 10 Programs by Index 143 141 141 137 136 133 133 132 129 123 Source: GFK MRI Spring 2017, Base: Adults 25-54 Index. Spent $1,000+ on vacation foreign or domestic in the last 12 months. Seinfeld- Syndication

Key Holiday Takeaways Holiday sales are expected to increase by 4% from 2016. TV Assets Motivate Online Shoppers Broadcast TV dominates ratings & reach of Holiday shoppers. Local Television focuses on market strengths. Broadcast TV delivers key Holiday shoppers & categories.