1. © 2008 Borrell Associates Inc. The Digital Transition: Opportunity Knocks March 27, 2008 TVB Annual Marketing Conference Gordon Borrell, CEO, Borrell Associates Inc.

2. Used with permission. © Cartoonbank “Hi, my name is Barry. I check my E-mail two to three hundred times a day”

4. © 2008 Borrell Associates Inc. Third Annual Web Benchmarking Report Download at: www.tvb.org

5. © 2008 Borrell Associates Inc. Our Research Online ad spending data for any locality Sales data from 3,100+ local Web sites Quarterly Delphi Panel surveys Ongoing in-market sales consulting Supplemental survey of 195 TV sites

6. © 2008 Borrell Associates Inc. Local TV Web Revenues, 2003 through 2010

7. © 2008 Borrell Associates Inc. Local Online Ad Share Picture is Changing $2.7 billion $7.6 billion Source: 2008 Borrell Associates + 7.6 pts.

8. © 2008 Borrell Associates Inc. Total Web Revenues for 351 TV Stations, 2007 Source: Borrell Associates. n=351

9. © 2008 Borrell Associates Inc. 2007 TV Web Revenue By Market Size Source: Borrell Associates Inc. n=351 Median Share of Local Online Advertising 1.8%

10. © 2008 Borrell Associates Inc. Benchmarking: Share of Local Online Advertising by Market Size Source: Borrell Associates. n=375 The Green Zone Average

11. © 2008 Borrell Associates Inc. Green Zone Performers Have... Online-only sales staff Non-traditional customer base Amazing thirst for data Consultative sales strategy Charge (much) higher rates Lots of sales training, re-training

12. © 2008 Borrell Associates Inc. 2007 Revenue for Local Sites With and Without Dedicated Sales Reps 2007 Revenue for Local Sites With and Without Dedicated Sales Reps Source : Borrell Associates Inc. 2007 revenue survey, n=347

13. © 2008 Borrell Associates Inc. Other Findings 12% from classified verticals Banners on news, weather rule Most inventory sold on flat rates 75% say at least half is unsold Video pricing varies wildly Local CPM ~ $13

14. “Sir, the following paradigm shifts occurred while you were out.” Used with permission. © Cartoonbank.com Perry Sook Dave Lougee John Wallace