1. INTERNAL USE ONLY This PowerPoint was created for internal use only. It is not presentation ready. It is intended to house stats and information that support the argument you might make for an advertiser to decrease TV spend. It also contains hints on how to explain the importance of some of the stats to your client. A client-facing PDF has been made for your use. You can find the client facing piece in Salesforce.com Content or your marketing department can download it from the Creative Library.

2. You may have seen the recent headlines… Read more: http://www.nytimes.com/2013/05/13/business/media/tv-networks-face-falling-ratings-and-new-rivals.html?pagewanted=all&_r=1&http://www.nytimes.com/2013/05/13/business/media/tv-networks-face-falling-ratings-and-new-rivals.html?pagewanted=all&_r=1& The New York Times May 12, 2013 As the major television networks prepare to unveil their new fall lineups in New York this week, they face threats from seemingly every corner. Prime-time ratings for the Big Four broadcasters — ABC, CBS, NBC and Fox — together are dropping more precipitously than ever. Even their biggest hits, like “American Idol” and “Dancing With the Stars,” are fading fast. […] New technologies are making it easier to skip those ads, anyway. That’s not all: there are more outlets for programming cropping up all the time, with Netflix and Amazon and dozens of cable channels competing for actors, producers and, most important, viewers. As TV Ratings and Profits Fall, Networks Face a Cliffhanger

3. Key Takeaways AUDIENCE: Broadcast networks are having trouble reaching their target audience TECHNOLOGIES: New technologies are making it easier for viewers to skip broadcast advertisements FRAGMENTATION: New programming outlets are popping up all the time

4. Broadcast is down. But honestly, all “traditional” MASS-media is down The Mad Men single-solution advertising days are over Fragmentation has changed the way consumers interact with media It’s no longer about reaching more people, it’s about reaching the right people Our targeted solutions help your advertiser win in this fragmented world Why do we care?

5. AUDIENCE

6. Broadcast ratings in the 18 to 49 year old demographic, the one most coveted by advertisers, are not doing well. Our various media solutions can help advertisers target that demographic more effectively. We are also able to reach a more affluent and educated audience.

7. TV consumption continues to consistently decrease, while internet consumption continues to consistently increase. TV Consumption

8. HEAVY TV WATCHERS People who watch TV a lot are 88% more likely to be age 75+. 32% of heavy TV watchers are age 55+, yet broadcast TV’s key demographic is age 18-49. If your advertiser’s key demographic is age 18-49, broadcast TV may not be helping them reach the right audience. TV Consumption

9. We Reach 18 to 49 year olds In Cincinnati, over the course of an entire week, primetime shows on ABC reach only 30% of 18-49 year olds. One Sunday newspaper reaches 36% of 18-49 year olds 68% more 18-49 year olds visit cincinnati.com on an average day than watch an average 30 min primetime ABC program In Des Moines, 1 out of 3 18-49 year olds read the Sunday paper. It would take 25 primetime spots on the NBC station to reach that same amount 27% more 18-49 year olds visit desmoinesregister.com on an average day than watch an average 30 min primetime NBC program And in Nashville, a week of print and online reaches 18% more 18-49 year olds than a week of primetime NBC programming SOURCE: Scarborough R1 2013

10. We Reach an Affluent Audience Source: Scarborough Research, USA + database, Release 1, 2012 72% of those with household incomes in the range of $50,000 to $99,999 read a print newspaper, e-edition, or visit a newspaper website in an average week 76% of those with household incomes in the range of $100,000 to $249,999 read a print newspaper, e-edition, or visit a newspaper website in an average week 78% of those with household incomes in the range of $250,000 or greater read a print newspaper, e-edition, or visit a newspaper website in an average week

11. Is your advertiser trying to reach an affluent audience? If so, TV ads may not be the best choice. We Reach an Affluent Audience

12. Affluents spend more time on the internet, than they do watching TV, especially between ages 18 and 44. We Reach an Affluent Audience

13. We Reach an Educated Audience Just 60% of those with a high school education or less read a print newspaper or an e-edition or visit a newspaper website in an average week. 71% of those with some college education read a print newspaper or an e-edition or visit a newspaper website in an average week. 75% of those with a four-year college degree read a print newspaper or an e-edition or visit a newspaper website in an average week. 80% of those who have done postgraduate work or have a graduate degree read a print newspaper or an e-edition or visit a newspaper website in an average week. 74% of those employed in professional occupations read a print newspaper or an e-edition or visit a newspaper website in an average week. However…

14. TECHNOLOGIES

15. New technologies are making it easier for viewers to skip commercials. If an advertiser schedules a broadcast TV ad, the odds of the viewer seeing it are less likely than ever before.

16. Netflix is a subscription based on-demand service that provides internet streaming of TV shows through their "Watch Instantly" option online. This allows a customer to download and watch certain broadcast TV shows and not have to watch commercials. With Hopper's ® new PrimeTime Anytime™, three hours of primetime programming are available to you for up to 8 days from initial air date. Plus you can save your favorite primetime content forever. You can also instantly skip commercials in primetime TV on ABC, CBS, FOX and NBC. TiVo provides an on-screen guide of scheduled broadcast and cable television shows. One of it’s features allows you to record shows when they air and then fast forward through commercials when the recording is played. Commercial–skipping examples iTunes is a media library application developed by Apple Inc. through which users can purchase and download commercial-free television shows.

17. Online video subscriptions are extremely popular. Usage grew tremendously from 2011 to 2012. If an advertiser is paying for broadcast advertisements, their money may not being going as far as it used to. Viewers are turning to other paid services for TV consumption. These other options often allow the consumer to skip commercials, which most people see as a big benefit. Growth in Online Subscriptions

18. 51% of US internet user households own a DVR. This means nearly 51% of households have the ability to skip TV advertisements. Heavy DVR Usage

19. 41% of internet users spend 1 or more hours a day watching recorded TV shows. All those people have the capability to skip commercials. = 40.9% Watching Recorded Shows

20. FRAGMENTATION

21. Media is more fragmented than ever. Consumers are “tuning out” the noise and it’s hard to get their attention. The consumers are in control and today’s purchase funnel looks more like a flight map.

22. THENNOW Complicated Purchase Cycle

23. What used to be a mass audience on TV is now dispersed across other platforms. Consumers divide their time and attention not only among different media channels, but also among subchannels within the same media. For an advertiser, it’s important to be at many consumer touch points, not just TV. Consumers are Multitasking

24. Marketing has evolved <19901990’s19992000’s2010 Direct Mail Telephone Television Radio Print Display IM Email Direct Mail Telephone Television Radio Print Display Website Search Online Display IM Email Direct Mail Telephone Television Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Webinars Affiliate Marketing SMS Mobile Email IM Email Direct Mail Telephone Television Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Webinars Affiliate Marketing Blogs RSS Podcasts Contextual Wikis Mobile Web MySpace Addressable Voice Mobile Email SMS IM Email Direct Mail Telephone Television Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Webinars Affiliate Marketing Blogs RSS Podcasts Contextual Wikis Mobile Web MySpace Behavioral Facebook Twitter YouTube Virtual Worlds Augmented Reality Widgets

25. But we’ve got it covered <19901990’s19992000’s2010 Direct Mail Telephone Television Radio Print Display IM Email Direct Mail Telephone Television Radio Print Display Website Search Online Display IM Email Direct Mail Telephone Television Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Webinars Affiliate Marketing SMS Mobile Email IM Email Direct Mail Telephone Television Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Webinars Affiliate Marketing Blogs RSS Podcasts Contextual Wikis Mobile Web MySpace Addressable Voice Mobile Email SMS IM Email Direct Mail Telephone Television Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Webinars Affiliate Marketing Blogs RSS Podcasts Contextual Wikis Mobile Web MySpace Behavioral Facebook Twitter YouTube Virtual Worlds Augmented Reality Widgets

26. We can customize the right solution for your clients SMS Webinars Email Blogs Contextual Paid Search Twitter YouTube Augmented Reality Mobile Web Print Website Display Direct Mail Landing Pages Online Display Facebook Search Microsites Online Video Behavioral Mobile Email

27. CONCLUSION

28. It all comes down to targeting. In today’s fragmented and changing world, we have the capability to target the right audience with the right medium. We can help your client reach the coveted 18 to 49 year old demographic, as well as people who are more affluent, educated, and tech-savy. Our capabilities are virtually unmatched.

29. Get local data What about your local broadcast stations? How are they doing in your market? Make your story stronger and use Nielsen Ad*Views to find out how the broadcast stations in your market are reaching the 18 to 49 demographic in any day. Create a prospect list by knowing which advertisers are running on that station and show them how their GRPs locally are trending. USCP licenses Ad*Views and is available in more than 30 markets. Check with your marketing department. More info on Ad*Views: http://sps.gannett.gci/areas/marketing/rpt/mplus/default.aspx http://sps.gannett.gci/areas/marketing/rpt/mplus/default.aspx