1. Video Advertising in a Multi-Screen World 1

2. The Marketing World is Focused on All Things Digital 1.Because new tools present new opportunities 2.And because the old ways no longer work 2

3. The Marketing World is Focused on All Things Digital 1.Because new tools present new opportunities…Yes 2.And because the old ways no longer work…Not so fast 3

4. Popular Consumer Insight: In a Post-Television World, the consumer is in control and will choose what, when, where and on what to watch, creating his own personal media smorgasbord. 4

5. Popular Marketing Insight: In a Post-Television World, new ways must be found to reach and engage with consumers, on their terms, not the marketers’ terms. 5

6. Maybe so, if and when a Post-Television World arrives. 6

7. Television – good old “Old Media” TV – has never been more highly consumed… and it’s still growing. 7

8. Let’s look at video in all forms and see what’s real today. 8

9. Consumer Usage of the Medium Is Growing 9 9 Sources: Daily Usage Figures: The Nielsen Company, NTI Annual Averages; Prior to 9/87: Audimeter Sample; 9/87 to date: People Meter Sample. Ad and Promo Exposure: Council for Research Excellence – Video Consumer Mapping Study 2009. Household viewing is nearing 8.5 hours, daily. Americans are exposed to nearly 72 minutes of video ads and promos per day. (Hr:Min/Day)

10. Television Viewing Is a High-Growth Activity 10 Sources: Daily Viewing: The Nielsen Company, NTI Annual Averages. Monthly estimate: Nielsen 4Q09 Three-Screen Report. Each year, time spent viewing TV is increasing across most major demographics. Each month the average American watches over 153 hours of TV at home. MenWomenTeensChildren 20034:295:053:073:14 20044:265:073:073:16 20054:315:173:193:19 20064:355:173:223:26 20074:395:193:243:27 20084:495:253:273:28 20094:545:313:263:31 Hours:Minutes /Day

11. 11

12. 12 Live TV Ads

13. 1st Quarter 2010 Video Viewing by Distribution Channel 13 Weekly Time Spent Hrs:Min Source: Nielsen 3 Screen Report Volume 8 Traditional Live TV35:34 Time Shifted TV2:09 Watching Video on Internet0:20 Watching Video on Mobile Phone0:04 Total Video Consumption38:07

14. 1st Quarter 2010 Video Viewing by Distribution Channel Traditional Live TV35:3493.3% Time Shifted TV2:095.6% Watching Video on Internet0:201.0% Watching Video on Mobile Phone0:040.2% Total Video Consumption38:07 14 Weekly Time Spent Hrs:Min Source: The Nielsen Company Three Screen Report Volume 8

15. Weekly Total TV Viewing 1 st Qtr 2010 vs. 4 th Qtr 2009 + 60 Minutes Live: +57 minutes Timeshifted: +5 minutes Watching Video on Internet: -2 minutes Watching Video on Mobile: Flat 15

16. Weekly Time Spent in Hours:Minutes By Age Demographic 1Q 2010 16 K2-11 T12-17 A18-24 A25-34 A35-49 A50-64 A65+ P2+ On Traditional TV 25:4824:2826:4532:0336:3544:2048:5435:34 Watching Timeshifted TV 1:321:201:313:002:502:302:172:09 Watching Video on Internet0:040:100:300:360:310:180:070:20 Mobile Subscribers Watching Video on a Mobile Phone n/a 0:180:100:070:030:01<0:01 0:04 Source: The Nielsen Company, Three Screen Report, 1st Qtr 2010.

17. Timeshifted Viewing: A Reality Check 17

18. National DVR Penetration is on the Rise… But the Growth Rate is Slowing 18 +33.7%+37.0%+15.9% Source: The Nielsen Company

19. Nielsen Reports 94% of TV Viewing is to Real Time Broadcasts Source: TVB Analysis of data presented in The Nielsen Company’s Three Screen Report, 1 st Qtr 2010 P2+

20. Of the 6% Timeshifted Viewing About 45% Watch the Commercials Source: TVB Analysis of data presented in The Nielsen Company’s Three Screen Report, 1st Qtr 2010 P2+ About 3.2% of Viewing is Commercial Fast-Forwarded

21. About 10% of Viewers Account for 72% of Timeshifted Viewing % of all Viewers% Shifters% of Timeshifting Heavy Shifters3.5%10.0%39.0% Medium Shifters7.1%20.0%33.0% Light Shifters24.8%70.0%28.0% 21 Source: TVB Analysis of The Nielsen Company DVR Study

22. Time-Shifting Facts General Primetime Dramas are the most timeshifted genre. Sports and News programs are the least timeshifted. Most playback – 63% – occurs on the same day as recorded… 42% in the same hour. Source: The Nielsen Company

23. Broadcasting & Local Cable 23

24. The Local Programming of Choice is on Local TV Stations… 195 of the Top 200 Shows in 2009 Were Broadcast 1-25250025 26-50250025 51-75232025 76-100250025 101-125250025 126-150241025 151-175250025 176-200232025 Total19550200 %97.5%2.5%0.0% 100% 24 Source: The Nielsen Company, Galaxy Explorer; 9/22/08-5/20/09, Ranked by A25-54 Live+SD US AA % (ties broken by 000’s) ProgramBroadcastSubscription RankStationsTV PBS Total Prime Programs Ranked by Adult 25-54 Ratings

25. The Big Problem in Converting Cable Network Audience to Local Ad Viewers: Satellite penetration is now at 32.9% of subscription HHs Satellite HHs do not receive local cable ads. They do get local TV station ads. 25 Satellite! Source: The Nielsen Company, May’10 DMA Media Related Universe Estimates

26. Broadcast’s Reach Advantage Broadcast TV has the potential to reach 100% of TV HHS Local cable systems have the potential to reach 61.5% of TV HHS 39.5 % of viewers cannot see local cable TV ads 26

27. Let’s Look at Online Video 27

28. May 2010 Online Video Profile Unique Viewers135,881,000 (45% U.S. Pop.) Video Streams:9,821,675,000 Streams Per User:72.3 Time Per Stream:2:63 (min:sec) 28 Source: Nielsenwire for May 2010

29. Top Online Video Brands May 2010 1.YouTube101,336,00034.6% 2.Facebook26,186,0009.0 3.Yahoo!24,200,0008.3 4.Google18,851,0006.4 5.Hulu15,458,0005.3 29 Source: Nielsenwire for May 2010 Uniques% U.S. Pop.

30. Top Online Video Brands May 2010 1.YouTube5,280,02753.8% 2.Hulu813,0438.3 3.MSN/Bing183,8361.9 4.Yahoo!170,4621.7 5.Turner Nets130,5521.3 30 Source: Nielsenwire for May 2010 Streams (000)% Total

31. Video Ads Viewed – June 2010 Hulu566,162,000 YouTube200,011,000 (Includes All Google Sites) Hulu Advantage +184% 31 Source: ComScore June 2010

32. YouTube Leanback “We’re looking at how to push users into a passive-consumption mode, a lean-back experience.” – Jamie Davidson YouTube Product Manager 32

33. YouTube Leanback Pre-organize a video playlist by vertical category: sports, food, travel, etc. Insert ads between video content clips 33

34. YouTube Tests Live 34 September 13, 14 live streaming video “Adding the power of live TV to a video-on-demand platform” Live content partners – Next New Networks, Rocketboom, Young Hollywood and Howcast

35. You Tube Live Test Partners Rocket BoomDaily video news blog Next New NetworksShort form films “Indie Mogul” Young HollywoodCelebrity clips HowcastHow to Defog Car How to Preserve Lemons How to Survive a Bad Haircut How to Make a Halloween Outfit How to Lower Pregnancy Related Hypertension… (uh oh) 35

36. Marketing Consideration: The Heavy User Twitter: 1 in 5 Twitter users has 10 followers, follows 10 and has twittered 10 times 73% have Twittered less than 10X Facebook: 12% of users = 66% of visits 34% of users = 3% of visits U.S. Internet: 16% of web users click on ads 8% of users = 80% of Clicks 36

37. Distribution of TV Viewers by Amount of Daily Viewing 37 Source: Bruzzone Research Co./TV Dimensions 2010 LightMediumHeavy

38. Exposure of Ad Messages by Viewer Group 38 Source: Bruzzone Research Co./TV Dimensions 2010 LightMediumHeavy

39. Mobile Video 39

40. Mobile Video Growth Monthly Reach of Mobile Video Viewers 40 1Q ’101Q ’09 20,284,00013,419,000+51.2% Source: Nielsen Three Screen Report Vol. 8

41. Mobile Video Usage Monthly Time Spent per Mobile Video User 41 1Q ’104Q ’091Q ‘08 3:373:373:37 Source: Nielsen Three Screen Report Vol. 8

42. Two last thoughts that go beyond the # s 42

43. More People Feel Broadcast Television is Most Involved in Their Community 43 Source: TVB Media Comparisons Study 2010. Knowledge Networks Inc. Custom Survey. Persons 18+

44. Television Advertising Has the Best Perception Among Persons 18+ 44 Source: TVB Media Comparisons Study 2010. Knowledge Networks Inc. Custom Survey. Most Persuasive

45. New Media Paradigm: POE Paid Media Owned Media Earned Media 45

46. New Media Paradigm: POE Paid Media TV, Print Reach Awareness Persuasion Intrusion Search – High Control 46

47. New Media Paradigm: POE Owned Media Search Websites Literature Email/Blogs Social Media Customer Relationship Management – High Control 47

48. New Media Paradigm: POE Earned Media Social Search Social Media YouTube Twitter Facebook Communities Dynamic Viral Unpredictable – Low Control 48

49. The POE Media World is: More Complex More Dynamic More Demanding More Interrelated 49

50. We’re Glad to be a Part of it! 50 Thank You!