Local Broadcast TV Advertising Outlook Steve Lanzano, TVB President & CEO Goldman Sachs 23 rd Annual Communacopia Conference September 11, 2014

 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 2014 for Local Television Advertising 2

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

Watching TV at Home Captures the Lion’s Share of Viewing 4 Source: Nielsen Cross-Platform Report Traditional TV 33:5986.4% Time-Shifted TV 3:419.4% Watching Video on Internet 1:313.8% Watching Video on Smartphone 0:090.4% Total A18+ Video Consumption 39: % Q1 2014: Weekly Time Spent A18+ (Hrs:Min)

A Week in the Life for the Total U.S. Population 5 Source: Nielsen Cross-Platform Report Q1 2014: Weekly Time Spent (Hrs:Min) A18-24A25-34A35-49A50-64A65+ On Traditional TV19:5523:5830:1041:0148:41 Watching Time-shifted TV1:543:374:134:173:22 Using DVD/Blu Ray Device0:571:341:181:040:39 Using a Game Console3:482:491:140:250:08 Using the Internet on a Computer5:296:127:305:592:55 Watching Video on Internet2:282:111:451:120:23 Watching Video on a Mobile Phone0:250:160:080:04-

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

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

Local TV Advertising 2014 Key Category Performance (Jan-Jun 2014) 8 Automotive Tier 1+4.7% Automotive Tier 2, 3+5.9% Retail+3.7% Hospitals/Med Centers+17.8% National Political+371.3% State/Local Political+206.6% Misc. Services/ Amusements +7.3% Medical Insurance+111.9% All Categories +3.9% Source: Kantar Media

Double Digit Growth of Station Website and Mobile Ad Revenue 9 Source: Borrell Associates, Inc.  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)  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 WebsitesMobile Local+16.4%NA National+34.1%NA Total+18.2%+21.6% Digital Ad Revenue Growth (Jan-Jul 2014 vs. Jan-Jul 2013)

Strong Political Spending for National and Local Elections 10 Source: TVB, Kantar Media CMAG, Magna Global, Nielsen Q4’13 Cross-Platform Report, U.S. Census Bureau: Voter Statistics, 2008 and 2010  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 % versus the same period in the prior year David Axelrod, Obama Political Consultant —

Moving into the Fall Local TV Commercial Pricing is Solid 11 Source: SQAD Media Market Guide Year-Over-Year (Q vs. Q3 2013) Quarter-Over-Quarter (Q vs. Q2 2014) Early Morning+2.0%+4.0% Early News+4.0%+2.0% Prime Time-2.0%-1.0% Late Night+3.0% Change (%) in CPM A25-54

An Agency Perspective 12  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, Q  “55% of clients say they are most interested in Spot TV…The largest percentage in 22 Quarters of the Survey”

 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 Full Year Outlook 13

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