THE PROMAXBDA RESEARCH AND INSIGHTS COMMITTEE PRESENTS MIXPO S TUNEDIN: 2013 TUNED-IN ADVERTISING REPORT

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1 & Spring 2013 THE PROMAXBDA RESEARCH AND INSIGHTS COMMITTEE PRESENTS MIXPO S TUNEDIN: 2013 TUNED-IN ADVERTISING REPORT The attached TunedIn report highlights key feedback from local stations around the country on their online advertising efforts and also shares some simple insights on how to improve your online tune-in efforts. Some interesting takeaways: 92% of local stations plan to advertise online in % plan to use online video in 2013 Stations spend 18% of their budget online, with smaller market stations spending a higher share of advertising online (24%) vs. larger market stations (15%) 42% plan to increase their online tune-in advertising budget in 2013 Clearly, for local stations, online advertising and, in particular, online video plays a growing role in driving tune-in to their shows. Other research studies, including a Nielsen/Google study that PromaxBDA previously shared, have also shown that viewers watching video ads across multiple screens TV, computer, tablet/phone, demonstrate higher brand recall and effectiveness. So, an integrated tune-in campaign using multiple mediums makes sense for local stations. And, as the TunedIn report suggests, marketers can use their existing on-air spots online without the need to generate new spots. And simply adding localized information, such as local call letters, logos and tune-in times can drive engagement and viewership 30% higher. But, for any local station executive or marketer, the question remains, Are MY station s online marketing efforts optimized? Do I need to allocate more resources or investments in this area? Benchmarking against your industry peers (whether you re a large, medium or small market) through this TunedIn report is one directional way of assessing your efforts. If you re allocation in online advertising is considerably below or higher than your peers, you may want to investigate why. Separate from your peers, each local station should consider the following: 1. Are you sufficiently testing video and other online advertising on your own web and social media pages? 2. With the growth of online video advertising, you have a unique opportunity to evaluate tune-in creative and ROI of your campaign among a larger pool of potential viewers. Do you have a process for A/B testing of creative and evaluating ROI of your online expenditures? Better yet, can you compare them to your off-line campaigns? PromaxBDA appreciates your feedback on the attached report and welcomes any of your own learnings and best practices with online advertising to drive tune-in. Please send your comments via to shawn@promaxbda.org. The PromaxBDA Research and Insights Committee is chaired by Gordon Ho, CEO, GKH Media and president, MyMovieDeals.com, and consists of committee members: Steven Borden, founder & president, Borden Media Consulting; Millie Carrasquillo, SVP research, Telemundo; Beth Coleman, SVP, ad sales research, Viacom Entertainment Group; Elizabeth Huszarik, SVP, Warner Bros. media research and insights; Sandep Rahi, co-founder, Mantrii; Kent Rees, EVP, marketing, scheduling & operations, Pivot; Adam Stewart, industry director, media & entertainment, Google; and Dounia Turrill, SVP, client insights, The Nielsen Company. For more information on PromaxBDA, or for media inquiries, please contact: Shawn Anderson, director of marketing and communications, PromaxBDA at or shawn@promaxbda.org.

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3 Mixpo surveyed local stations across the country to better understand how the TV industry uses online advertising to drive tune-in. This report highlights key insights pulled from the survey results and represents real-world feedback from stations large and small on how and when they employ online advertising. KEY FINDINGS AND INSIGHTS Local stations are well aware of the need to promote their programming online. In fact, the vast majority have already implemented online tune-in advertising campaigns. On average, stations spend 18% of their tune-in advertising budget online and almost half of the stations surveyed are planning on increasing their investment in online advertising in Today s audiences are not only online, but are increasingly spending a large portion of their online time watching video. TV broadcasters are uniquely positioned to take advantage of this shift and reach viewers with online video advertising. TV marketers already have engaging video content, daily topicals, social media strategies, promotions, co-op programs, and skilled creative resources at their disposal. Of the stations surveyed, 85% plan to use online video to advertise their programs in Including online video advertising in a station s promotional mix is no longer an option, it s a requirement. - Travis Brower, Manager of Promotion & Production, PHL17 42% of stations plan to increase their online tune-in advertising budget in % of stations in the top 10 DMAs plan to increase their online tune-in advertising budget in On average, stations spend 18% of their tune-in advertising budget online. 92% plan to advertise online in % plan to use online video to advertise in 2013

4 HOW DO ONLINE ADVERTISING PLANS VARY ACROSS MARKETS? TV stations needs and budgets vary based upon their market size. We asked each station to identify their DMA and segmented the results based on market size. To help organize the results, we broke the DMAs across the US into the following three tiers: DMA Tier TV Homes # of DMAs Large 2M+ 10 Medium 1M 2M 20 Small < 1M 180 In general, stations in large markets utilize online tune-in advertising with more frequency than stations in smaller markets. In the top 10 DMAs it is nearly de facto that stations advertise online and the vast majority plan to include video as a component of their online strategy. 100% What Are Your Online Advertising Plans for 2013? 80% 60% 40% 100% 86% 93% 82% 86% 60% 20% 0% Large Market Medium Market Small Market Plan to Advertise Online Plan to Use Online Video

5 HOW DO TV STATIONS ALLOCATE THEIR TUNE-IN BUDGET? While more stations in large markets utilize online advertising, stations in small and medium sized markets allocate a larger portion of their tune-in advertising budget to online. When we look at how stations allocate their tune-in advertising budget across advertising vehicles, stations in small and medium sized DMAs use almost twice as much of their tune-in advertising budget for online ads. Given the expense of cable advertising and the cost effectiveness of online advertising, this makes great sense for the stretched station budgets in small and mid-sized markets. Other 36% Online 15% Other 18% Online 14% Other 16% Online 24% Radio 15% Cable 34% Radio 39% Cable 29% Radio 34% Cable 26% Large Market Medium Market Small Market As their viewers spend more time online, TV marketers will spend more of their budget online. Do You Plan to Increase Your Online Advertising Budget in 2013? 57% 40% 36% Said Yes Said Yes Said Yes Large Market Medium Market Small Market

6 HOW DO TV STATIONS ALLOCATE ONLINE ADVERTISING DOLLARS? Large market stations tend to spread their tune-in advertising dollars more evenly across the year than compared to stations in small and mid-sized markets that put a much larger emphasis on May and November sweeps. 40% 30% How Do You Allocate Your Tune-In Budget Across the Year? 20% 10% 0% 17% 36% 32% 34% 29% 23% 20% 23% 18% 20% 14% 17% 2% 12% 4% Large Market Medium Market Small Market February Sweeps May Sweeps September Launch November Sweeps Other No matter the market size, video is by far the predominant form of online advertising for local stations. Standard display ads that do not include video come in a distant second. 80% How Do You Allocate Your Online Tune-In Advertising Budget? 60% 40% 20% 0% 70% 61% 58% 26% 4% 0% 18% 12% 10% 21% 11% 10% Large Market Medium Market Small Market Standard Display Ads Paid Search Ads Video Ads Other

7 HOW DO LOCAL STATIONS VIEW ONLINE ADVERTISING? As viewers have moved online, so have local stations in their efforts to attract those viewers. Stations from markets large and small rate Increased reach and frequency of existing on-air promos as the primary reason to advertise online. What Are the Key Benefits of Online Tune-In Advertising? Increased reach and frequency of existing on-air promos Targeting viewers by demographic and geography Reaching viewers on their computers Reaching viewers on their phones and tablets Integrating social networking efforts and tune-in ads Ease of execution Updating topicals in real-time Quicker and less expensive viewer acquisition Station differentiation from competitors Other None 0% 10% 20% 30% 40% 50% 60% 70% 80% Stations are not standing still. Of the stations surveyed, 46% are growing their online advertising capabilities and 23% view it as a new strategic area of emphasis. How Do You Rate Your Station's Level of Sophistication With Online Advertising? Reasonably effective programs in place Growing our capability New strategic area of emphasis Am not concerned about online advertising Underperforming in this area 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

8 BRINGING YOUR ON-AIR PROMOTIONS ONLINE Mixpo has been working with local TV stations to bring their on-air promotions online for the past five years. Below is a collection of best practices we have developed. We cover the basics, bring in some advanced options, and share insights on how to create engaging and effective online video ad campaigns that drive viewership. Use What You Have Start with existing on-air spots. No need to create new spots. Reuse, recycle. Lead with Topicals Just like on TV, daily topicals can drive immediate spikes in viewership. Ads focused on branding are good for building viewership over time while ads promoting compelling topicals drive viewership that evening. Ride the Coat-Tails of Popular Prime Time Shows Broadcasters of course do this on-air. Do it online as well. For in-banner video, consider using split-start frames where the left side of the display ad features a popular network show and the right side features a topical for the 11p news. Similarly, split the video spot itself between the two shows particularly pertinent when using co-op budget. Include Localized Information Ads that contain personalization such as localized call letters and logos drive engagement rates up to 27% higher and view rates up to 30% higher than those that do not. Entice the Viewer to Watch To raise curiosity and interest to click on an in-banner video start frame, clearly convey in the image that the banner isn t just a banner ad it s a curtain draped over a video. Include a still image of the video framed in a player (including control buttons) viewers get that the ad is actually a video ad. MOVE TO THE NEXT LEVEL Once your promotions are online, you can increase the effectiveness of your video ads with these easy to execute steps. Engage Viewers with Online Interactivity Take advantage of what online offers. Make the spot interactive and, therefore, engaging. This can be done in minutes with minimal impact on product workflow and capacity. Add overlays that encourage viewers to record programs to DVR or set a mobile alert. Create a Compelling Landing Environment. Use video as a jumping board to additional engagement: landing pages featuring clips and additional information, Facebook pages, and Twitter feeds.

9 Don t Forget Mobile Use a platform that will render your video ads online, on tablet, in app, and on mobile web. You never know on which screen your ad will be watched (roughly 10% of all web traffic is mobile), so be prepared, you don t want a compelling online ad to fall flat literally on a tablet. Current technology can worry about this detail for you by producing any online spot you create as both Flash and HTML 5 so that the only technical detail you need to know is, My online spots run anywhere. IMPACT OF CONTEXT ON SUCCESS OF ONLINE AD CAMPAIGNS It goes without saying that context will carry a significant impact on the success of any online ad campaign. Verify before and after where your ads will appear. Monitor success over multiple campaigns to help pinpoint the sites that work best for you. Additional Tips National and Local News sites are both strong fits for tune-in. They drive high levels of engagement and are a great place to find your core audience. Emphasis on premium placements. Value up-front site transparency as networks have different standards for what constitutes premium. For local media, book directly when possible; networks don t have the same level of access to local inventory. Book in advance there s only so much inventory to go around. Lock it in early to ensure you can meet you campaign goals. Test new categories. Entertainment, Lifestyle and News are the perennial favorites, but other categories can surprise on the upside. Weather, DIY/reference, casual gaming, social these categories can perform better than one might expect.

10 ABOUT MIXPO Mixpo is a cloud-based video marketing platform. We help media companies efficiently build differentiated cross-screen video ad products that command a premium. We also help brand marketers leverage any form or source of video content to maximize brand impact across screens and gain meaningful consumer insights. Mixpo s platform delivers the broadest and deepest array of video engagement reports available so that clients can readily plan and use online video with informed confidence. In 2013, we were selected by Forbes as one of America s Most Promising Companies. Mixpo, Inc. was founded in 2007 and is headquartered in Seattle with offices in New York, Boston, and Victoria BC. Mixpo s Tune-In Advertising Team Given their unique needs, Mixpo has built a team specifically geared to deliver value to local TV stations. With decades of experience in television advertising, our team is built for responsiveness and is ready to help you bring your on-air promotions online. Peter Goldstein Vice President Sales and Business Development, Advertisers pgoldstein@mixpo.com Peter's focus is building new relationships with future Mixpo buy-side partners and clients, including brand advertisers and political campaigns. Before joining Mixpo, Peter built customer relationships for Entercom's digital platform, and served in executive sales and strategy roles at Clear Channel Interactive and Real Networks. Hans-Eric Gosch Director, Business Development, Local Stations and Syndicators hgosch@mixpo.com Hans-Eric is the go to contact and trusted advisor for all of Mixpo s local station and syndicator clients. Before joining Mixpo, Hans-Eric served in business development roles at Amazon.com and Razorfish and was an associate producer at King5 TV in Seattle.

11 2013 Tune-In Advertising Market Research Findings from the top 10 DMAs Mixpo surveyed local stations across the country to better understand how the TV industry uses online advertising to drive tune-in. We asked each station to identify their DMA and bring you key insights from stations in the top 10 DMAs ranked by market size on how and when they employ online advertising. Stations in the top 10 DMAs who advertised online in % 100% 86% 15% 57% Plan to advertise Plan to use online of stations tune-in Plan to increase online in 2013 video to advertise in 2013 advertising budget is spent online their online tune-in advertising budget in 2013 SWEEPS: MAY23% NOV23% Average percentage of the tune-in advertising budget spent on Sweeps FILE: 586_SLS