February 2015 INSIGHTS INTO ACTION: LOCAL MEDIA LANDSCAPE

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 2 AGENDA 1 How Consumers are Changing 2 TV Usage Trends 3 Listening Trends 4 Device Penetration 5 Device Usage Trends 6 Local Advertising Trends 7 Looking Forward

HOW CONSUMERS ARE CHANGING

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 4 A LOOK AT OUR CHANGING POPULATION Source: NPOWER, Share of Scaled Installed Counts

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 5 LOCAL UNIVERSE ESTIMATES CAN HELP POINT OUT RECENT DEMOGRAPHIC MIGRATIONS Source: Local Television Market Universe Estimates season by ethnicity Map shows DMAs with largest Demographic shifts in past 5 years ATL +52,000 Black Homes NY +182,000 Hispanic Homes HN +177,000 Total TV Homes +39,000 Asian Homes LA

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 6 AND FROM AN AGE PERSPECTIVE, BABY BOOMERS WILL PACE GROWTH SEGMENTS Source: Jordan, M. (2012, November 29). Recession Big Factor as Birthrate Declines. 6 GROWTH RATE OVER NEXT 20 YEARS

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 7 CONSUMERS HAVE A VARIETY OF CHOICES Source: Nielsen NPM, data from the 15 th of each month, based on scaled installed counts. Percent of Total US is based on a sum of the four breaks listed and is slightly higher than total Composite households. Broadband Only Households broken out from the ADS bucket

HOW THEY WATCH TV

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 9 WHILE VIEWING IS INCREASINGLY FRAGMENTED, LIVE TV STILL MAKES UP THE BULK OF HOW WE WATCH Source: NLTV NOV2014, sweep measurement, Time Spent average Daily HH:MM, P25-54, Live PUT, XPLT, OTT (XWWW+AOVO)

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 10 Daily Time Spent Time-Shifting is up 6% vs. last year among Hispanics TIME-SHIFTING AND OVER THE TOP STREAMING ARE GRADUALLY INCREASING IN HISPANIC HOUSEHOLDS Source: NLTV Nov2014, sweep measurement, Hispanic, Time Spent average Daily HH:MM, P25-54, Live PUT, XPLT, OTT (XWWW+AOVO)

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 11 USAGE OF LIVE TV REMAINS THE HIGHEST AMONG AFRICAN AMERICANS COMPARED TO OTHER GROUPS Source: NLTV Nov14, sweep measurement, Black, Time Spent average Daily HH:MM, P25-54, Live PUT, XPLT, OTT (XWWW+AOVO)

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 12 AMONG SET-METER, SOUTH CENTRAL MARKETS RANK HIGHEST IN TV VIEWING *Based on Persons 25-54, November 2014, Total Day M-Sun 5A-5A; Live+SD data stream

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 13 GROWING IMPACT OF TIME-SHIFTING AND VOD ON PRIMETIME Source: Nielsen NPOWER, November 2014, Based on the ratings for prime telecasts with recently telecast VOD contribution among externally reportable networks, includes only programming encoded for measurement, Live+7, P18+ in LPM markets LIVE VIEWINGTIME-SHIFTED VIEWING WITHIN 7 DAYS RECENTLY TELECAST VIDEO ON DEMAND (VOD)

Copyright ©2013 The Nielsen Company. Confidential and proprietary. 14 MORE BBO SITES MEANS FEWER SET TOP BOXES 7% OF US HOUSEHOLDS HAVE ACCESS TO BROADBAND TV Source: Nielsen Custom Data Extract, % of sample by HH type, November 2013 to 2014 NOVEMBER 2013 NOVEMBER 2014

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 15 VIEWING HABITS VARY ACROSS HOMES WITH AND WITHOUT BROADBAND ONLY SITES Source: Custom Data Extract, 25 LPM Market Average, 07/ /31/14, Total Day, P2+, Multimedia Device includes both A/V and Internet Connected Devices

HOW ARE THEY LISTENING?

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 17 RADIO REACHES 90+% OF NEARLY ALL DEMOS Source: RADAR 123. December 2014, M-SU 6AM-MID, Weekly Cume Rating for All Radio listening 91.2 P12+ MEN WOMEN

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 18 HOUSTON AND SAN ANTONIO WERE THE TOP LISTENING PPM MARKETS THIS PAST NOVEMBER Source: Media Trends PPM Dashboard ; AQH Rating, November 2014, Persons 18+ AQH Rating – M-Sun 6AM-MID – Persons 18+

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 19 IN HOME TIME SPENT WITH RADIO DOWN 22% Weekly TSL (HH:MM) – Spring 2011 to Spring 2014 – PPM Markets Only P12+TOTAL IN HOMEOUT OF HOME SP 1111:15 4:30 7:30 FA 1110:45 4:30 7:00 SP 1210:45 4:15 7:15 FA 1210:15 4:00 7:00 SP 1310:15 4:00 7:15 FA 139:45 3:45 7:00 SP 149:45 3:30 7:00 3-YR-13% -22% -7% Source: Nielsen National Respondent Level Data / 48 PPM Metros only / M-Su 6a-12M / Weekly TSL by location

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 20 IN HOME DECLINES AFFECT YOUNGER DEMOS Weekly TSL (HH:MM) – Spring 2011 to Spring 2014 – PPM Markets Only TEENS 12-17TOTAL IN HOME OUT OF HOME SP 117:00 3:45 FA 116:15 3:30 3:15 SP 126:15 3:30 FA 126:00 3:30 3:15 SP 136:15 3:15 3:30 FA 135:45 3:00 3:30 SP 145:45 2:45 3:30 3-YR-18% -27% -7% Source: Nielsen National Respondent Level Data / 48 PPM Metros only / M-Su 6a-12M / Weekly TSL by location ADULTS 18-24TOTAL IN HOME OUT OF HOME SP 119:45 3:45 6:30 FA 119:15 3:45 6:00 SP 129:00 3:30 6:15 FA 128:30 3:15 6:00 SP 138:30 3:00 6:00 FA 138:15 2:45 6:00 SP 148:00 2:45 6:00 3-YR-18% -27% -8%

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 21 IN CAR AUDIENCE HOLDING UP PRETTY WELL Based on Diary Markets / AQH Persons 12+ Source: Nielsen National Respondent Level Data / Available Diary Metros only / M-Su 6a-12M / AQH audience by location

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 22 NEARLY 40% OF ALL RADIO LISTENING IS IN CAR Based on Diary Markets / AQH Persons 12+ Source: Nielsen National Respondent Level Data / Available Diary Metros only / M-Su 6a-12M / %of AQH audience by location

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 23 AM/FM RADIO COMMANDS IN-CAR LISTENING How people typically listen to music in the car Source: 2014 Nielsen Music 360 Study Base: Listens to music while in a car - Total (1786) Thinking about the past 12 months, how do you typically listen to music while in a car?

WHAT THEY OWN

Copyright ©2013 The Nielsen Company. Confidential and proprietary. 25 A CONSUMER’S JOURNEY TO CONTENT DISCOVERY Source: The Total Audience Report Quarter

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 26 TABLET PENETRATION AMONG LPM MARKETS CONTINUES TO GROW Persons Owning a Tablet; November 2014 vs. 2013; Based on Average Intab Counts 15% 18%19%11%12%18%21%29%19%20%15%25%15%19%16%15%14%19%12% 18%24%15%16%

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 27 TABLET PENETRATION AVERAGES 46% IN SET METER MARKETS, WITH NORFOLK LEADING AT 57% Based on Set Meter Households that own 1 or more tablets; Measurement date of January, 29, 2015

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 28 MOST LPM MARKETS SAW DOUBLE DIGIT YEAR-OVER- YEAR PENETRATION GAINS TO MOBILE VIDEO Mobile Video Penetration Among Smartphone Owners, Persons 13+, November 2014, Total Day 28%17%25%21%7%30%36%39%13%9%45%22%3%32%13%20%18%50%2%11%12%20%14%12%25% YOY Percentage Change

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 29 AVERAGE SMARTPHONE PENETRATION AT 77% Source: Mobile Insights, P13+, NOV 2014 vs NOV 2013 MARKETS WITH THE LARGEST GAINS SINCE NOV % BOSTON +15% DETROIT +14% DENVER +14% PITTSBURGH +13% ATLANTA +13% ORLANDO +12% CHARLOTTE +12% ST. LOUIS +12% SEATTLE +11% HOUSTON 84% HOUSTON 84% WASHINGTON, DC 84% DALLAS FT. WORTH 84% ATLANTA 83% BOSTON 82% ORLANDO 81% PHOENIX 81% LOS ANGELES 81% DENVER 81% SEATTLE 80% CHICAGO 80% MIAMI 79% PHILADELPHIA 79% SAN FRANCISCO 79% PORTLAND, OR 79% BALTIMORE 79% CHARLOTTE 77% NEW YORK 77% ST. LOUIS 76% TAMPA 76% MINNEAPOLIS 74% DETROIT 74% SACRAMENTO 71% PITTSBURGH 66% CLEVELAND

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 30 SMARTPHONE PENETRATION HIGHER AMONG HISPANICS AND AFRICAN AMERICANS HISPANIC AFRICAN AMERICAN 82%HISPANIC TOTAL US 92% PHOENIX 88% NEW YORK 86% SAN FRANCISCO 83% CHICAGO 83% DALLAS 83% HOUSTON 82% DENVER 81% SACRAMENTO 80% LOS ANGELES 77% MIAMI 83%AFRICAN AMER. TOTAL US 93% HOUSTON 90% MIAMI 89% ATLANTA 87% DALLAS 85% NEW YORK 83% CHICAGO 83% LOS ANGELES 78% WASHINGTON DC 77% PHILADELPHIA 76% DETROIT Source: Mobile Insights, Hispanic/Black/Asian P13+, NOV 2014 TOTAL US SMARTPHONE PENETRATION = 77% BASED ON TOP 10 HISPANIC AND AFRICAN AMERICAN LPM MARKETS

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 31 SMART TV PENETRATION NOW AVERAGES 15% OF HOUSEHOLDS AND CONTINUES TO GROW Source: NPOWER Nielsen Custom Data, SmartTV Capable and Enabled (custom list) HHs based on Avg Scaled installed counts, Nov 15, %+6% +8%+8% +8%+8% +8%+8%+9% +6% +6%+6% +7%+7% +4%+4% +7%+7% +6%+6% +5%+5% +6%+6% +4%+4% +6%+6% +6%+6% +4%+4% +4%+4% +6%+6% +5%+5% +5%+5% +3%+3% +4%+4%

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 32 A LOOK AT SUBSCRIPTION VOD ACROSS THE COUNTRY *Based on Households with subscription to any SVOD service; November 2014 SVOD data became available in our systems on September 27, 2014 OVER HALF OF THE SAN FRANCISCO AND WASHINGTON, DC MARKETS SUBSCRIBE TO NETFLIX, AMAZON OR HULU PLUS

HOW ARE THEY USING THEIR DEVICES?

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 34 COMPARING AGE RANGES SHOWS THAT P25-34 SPEND MORE TIME WITH ONLINE DEVICES, WHILE BOOMERS USE MORE TV AND RADIO Source: Results from LPM Markets are weight averaged based on total HH UEs, NLTV, Live, Nov 2014 Radio = RADAR123, Dec 2014 NetView, Total Methodology, Nov 2014; based on straight average of LPM markets *Internet/App on Smartphone data is based National Average and NOT LPM Average; Q WEEKLY TIME SPENT (HH:MM) ACROSS DEVICES BY AGE GROUP

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 35 WEEKLY TIME SPENT ACROSS DEVICES IN THE TOP 25 MARKETS SHOWS HOW USAGE VARIES Source: Persons 18+ NLTV, Live, Nov 2014 PPM Analysis Tool, Fall 2014 (9/11/14 – 12/3/14) NetView, Total Methodology, Nov 2014

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 36 USAGE OF LOCATION BASED SERVICES ADDS POTENTIAL TO IDENTIFY CONSUMERS IN A NEW AND PRECISE WAY Source: Nielsen, Mobile Insights 36 USED LOCATION BASED SERVICES ON A MOBILE PHONE IN THE PAST 30 DAYS

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 37 Increase +36% +240% +239% +76% +246% +153% +333% +425% +200% -21% STREAMING AUDIO EXPLODES ON MOBILE Source: Nielsen US Mobile Media Panel (P18+) Past 30 Days of Mobile Media Usage/ Percent of Total Audience Q4 2008Mobile Media UsageQ %Text Messaging79% 20%Mobile Internet68% 18% 61% 29%Picture Messaging51% 13%App Downloads45% 15%Text Alerts38% 5%Streaming Audio34% 6%Mobile Video26% 4%Online Games21% 6%Music Downloads18% 19%Ringtone Downloads15% +580%

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 38 NEWSPAPER PENETRATION ON DIGITAL DEVICES ALSO CONTINUES TO GROW Source: Nielsen Scarborough USA+ R R TYPE OF MOBILE DEVICES USED TO READ NEWSPAPER

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 39 NEWSPAPER READERSHIP BY PLATFORM 72% of U.S. adults read a newspaper in the past month in print, online or on a mobile device Base = U.S. adults who read a newspaper in print, visited a newspaper website or read a newspaper on a mobile device ( cume Sunday any newspaper, cume Daily any newspaper, cume Saturday any newspaper, any newspaper website past 30 days, used mobile device to read newspaper past 30 days) Source: Scarborough USA + Study, R2, 2014

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 40 ONLINE VIEWERS STILL CRAVE LOCAL MEDIA AND INFORMATION Source: Nielsen Scarborough USA Release 2 Adults who watch TV using an online subscription service 2X 68% 40% More likely to listen to a local radio station online More likely to use internet/apps for local news More likely to say social networking is important for local information Watched Local News in the past 7 days Compared to U.S. adults: 48%

LOCAL ADVERTISING TRENDS

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 42 LOCAL AD SPENDING HAS SHIFTED FROM NEWSPAPER TO OUTDOOR AND SPOT TV Source: Monitor+, 2014 vs LOCAL AD SPEND 2014 LOCAL AD SPEND $46.8B $49.2B

Copyright ©2014 The Nielsen Company. Confidential and proprietary. 43 SPANISH LANGUAGE LOCAL AD SPEND HAS MORE THAN DOUBLED IN THE LAST THREE YEARS Source: Monitor+, 2014 vs 2003 $1.6B $3.9B 2011 LOCAL AD SPEND 2014 LOCAL AD SPEND

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 44 IN THE LAST 11 YEARS, BUSINESS & CONSUMER SERVICES HAS OVERTAKEN AUTO AND RETAIL AS THE TOP LOCAL AD INDUSTRY Source: Monitor+, 2014 vs 2003

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 45 TOP 10 CATEGORY SPENDING BY HEAVY MEDIA CONSUMERS Source: Nielsen Scarborough USA Release 2 Heavy media consumers= top 2 quintiles for TV viewing, Radio listening and print newspaper readers 1) Carpeting/floor covering (HHLD) 2) Furniture (HHLD) 3) Hardware, building or paint items (HHLD) 4) Women’s casual clothing 5) Television (HHLD) 6) Lawn or garden items (HHLD) 7) Men’s casual clothing 8) Cosmetics, perfumes, or skin care items 9) Groceries (HHLD) 10) Athletic shoes TOP CATEGORY SPENDING PAST YEAR

LOOKING FORWARD

Copyright ©2015 The Nielsen Company. Confidential and proprietary. 47 MOVING FORWARD, WE CAN EXPECT The media pie to continue to expand, fueled by digital video Portable technology to continue driving simultaneous usage Consumers to seek more content regardless of the platform used Smartphone penetration leads to consumers being universally accessible Game-changing technology to further shift consumer behaviors (wearable technology, virtual reality gaming, etc)

Q&A