© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 1

The Unique Value of Advertising in Local TV Broadcast News

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 2

Methodology

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 3

• Qualified respondents were: Adults 25+ Regular Viewers of Local Television News, i.e., those who watch at least a

few times per week. To rate other media, respondents were also required to be Regular Users (watch or use twice a week or more).

• Respondents were drawn from 24 Hearst Television markets, as distributed below:

• Data was weighted (using MRI targets) by key demographic variables of local television news viewers.

• Interviews were conducted March 27 – April 9, 2014 -- via a 20-minute online survey.

Methodology

TotalN=2,655

BostonN=200

OrlandoN=200

PittsburghN=200

SacramentoN=200

BaltimoreN=200

Kansas City

N=100

CincinnatiN=100

MilwaukeeN=100

GreenvilleN=100

West PalmBeachN=100

Remaining 14 Markets

N=1,155

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 4

Survey Question: And how often do you do each of the following? Watch local television news, such as (Networks inserted based on DMA)

Multiple times a

day

Once a day

A few times a week

Once a week

A few times a month

Once a month

Less than

once a month

Never

Excluded from researchRegular Viewers

For the purposes of this research, viewers are defined as those watching local television news at least a few times per week. Throughout the report, all findings are based on this total sample of viewers of local television news and will be referred to as Regular Viewers or Viewers.

Defining Local TV News Viewers

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 5

Value, Importance and Influence ofLocal Television News

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 6

Q1. Please indicate the extent to which you agree or disagree with each of the following statements with regard to local television newsBase: Regular Viewers (A Few Times A Week or More) of : Local Television News (n=2655); Strongly/Somewhat Agree

Nearly Eight in Ten Trust What They See on Local Television News; Nearly Nine in Ten Find It Time Well Spent

“I would go out of my way to watch Local Television News” 61%

“Watching Local Television News is an essential part of my life”

“I enjoy telling others about what I see / hear on Local Television News”

“I consider myself a loyal viewer of Local Television News”

“I trust what I see / hear on Local Television News”

“The time I spend watching Local Television News is time well spent”

73%

74%

78%

79%

86%

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 7

Q1/Q2/Q3. Please indicate the extent to which you agree or disagree with each of the following statements with regard toBase: Regular Viewers (A Few Times A Week or More) of : Local Television News (n=2655); Newspapers (n=653); Magazines (n=652); Cable News (n=651); Broadcast Network News (n=652); Radio (n=653)

Local Television News Leads in Trustworthiness Among Viewers of All Ages

Total Respondents Adults 25-54 Adults 35-64 Adults 55+

7981 81

7574

7779

7274

7776

7072

79

74

62

70

67

7374

6365

64

60

Local Television News Broadcast Network News Newspapers

Cable News Magazines Radio

I Trust What I See / Hear On <Media>

Strongly/Somewhat Agree (%)

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 8

Q1/Q2/Q3. Please indicate the extent to which you agree or disagree with each of the following statements with regard toBase: Regular Viewers of Local TV News (n=2655)

“Watching Local Television News is an Essential Part of My Life”

(% Agree)

Online Video Sites

Social Networking Sites

Search Engine Sites

Cable News

Radio

Broadcast Network News

Magazines

Newspapers

Local Television News

53%

54%

62%

64%

64%

65%

66%

72%

73%

Watching/Using … is an Essential Part of My Life (Total % Agree)

73Viewers Feel Local Television News is an Essential Part of the Day

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 9

Q9. Please indicate the extent to which you agree or disagree with each of the following statements with regard to local television news.Base: Regular Viewers of Local TV News (n=2655)

I like to share what I see / hear on local news with friends and neighbors in my community

Local news is more important today than ever

In a world with so much information out there, local news is one of the few things I can trust to focus on

what’s important for me and my family

With so much media focusing on the country and the world, local news is important for me to feeling part of

my own community

0% 25% 50% 75% 100%

71%

75%

77%

77%

83%

85%

29%

25%

23%

23%

17%

15%

Strongly/Somewhat Agree Somewhat/Strongly Disagree

Local TV News Viewers Value Its Connection to Community and Family

Local television news is the most relevant type of news to me / my family

Staying up to date on local television news helps me feel connected to my

community

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The Powerful Appeal of Ads in Local Television News

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“I rely on local television news for product and service ideas that are relevant to me in my life”

(% Strongly/Somewhat Agree)

57Q9. Please indicate the extent to which you agree or disagree with each of the following statements with regard to local television news.Base: Regular Viewers of Local TV News (n=2655)

Nearly Six in Ten Viewers Rely On Local Television News For Products And Services Ideas

I rely on local television news for product and service ideas

that are relevant to me in my life(Strongly/Somewhat agree)

Adults 25-34 64%

Adults 25-54 61%

Adults 35-64 59%

Adults 35+ 56%

Younger Viewers Rely Even More Heavily

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 12

Q13. Please indicate the extent to which you agree or disagree with each of the following statements with regard to the ads you see on local television newsBase: Regular Viewers of Local TV News (n=2655)

Three Quarters of Local Television News Viewers Feel Ads On Local TV News Are Tailored to Their Community

Strongly/Somewhat Agree(%)

Ads I see on local television news feel like they are chosen specifi-

cally for people like me 49%

74%

55%

77%

Adults 25-54 Total Respondents

Over Half P2554 Viewers Feel Ads on

Local Television News are Chosen Specifically

for Them

Ads that air on local television news are tailored

for my community

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 13

“Do an Internet search for more information about the product / service” 46%

Nearly Half of Women 25-54 Have Researched Advertisers Further After Seeing Their Ads on Local Television News

“Visit the product’s / service’s website or Facebook page”

“Look for reviews of the product / service”

33%

39%

Q12. Which of the following actions have you taken as a result of seeing a product or service advertised on local television news?.Base: Women 25-54 Regular Viewers of Local TV News (n=851)

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 14

Q14/Q15/Q16. Please indicate the extent to which you agree or disagree with each of the following statements with regard to [MEDIA]Base: Women 25-54 (A Few Times A Week or More) of : Local Television News (n=851); Online Video Sites (n=248); Social Networking Sites (n=256); Search Engine Sites (n=220)

Local Television News Is More Likely to Get the Conversation Started About Advertisers Than Social Media

Series1

55

50

51

44

38

34

30

26

Search Engine Sites Social Networking Sites

Online Video Sites Local Television News

Women 25-54

Strongly/Somewhat Agree (%)

I find myself talking about the products and services I see advertised on

/ in [media] with family and friends

I find myself recommending the products and services I see

advertised on / in [media] to family and friends

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 15

“I can trust products and services that are advertised on / in Local Television News” 52%

Over Half of Viewers Purchase Products and Services Advertised on Local Television News

“Ads on / in Local Television News help me make purchase decisions”

“Ads on / in Local Television News inspire me to try new products and brands”

“I purchase products and services I see advertised on / in Local Television News”

49%

50%

52%

Q14. Please indicate the extent to which you agree or disagree with each of the following statements with regard to Local Television NewsBase: Regular Viewers (A Few Times A Week or More) of : Local Television News (n=2655)

This increases to 58% among Adult

25-54 News Viewers

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 16

Milwaukee

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 17

Base: Regular Viewers (A Few Times A Week or More) of : Local Television News (n=2655)/Milwaukee Market Sample Size: 100 Adults 25+

Most TV news viewers in Milwaukee watch at least once per day – and most consider themselves loyal viewers.

89% 75%

Watch local TV news at least once per day

Consider themselves loyal viewers of local TV news

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 18

“I tend to pay more attention to ads that appear in local TV news.” 50%

Half of Milwaukee Viewers Purchase Products and Services Advertised on Local Television News

“Ads on / in Local Television News help me make purchase decisions”

“Ads on / in Local Television News inspire me to try new products and brands”

“Ads in Local TV news help me stay up to date on products and services available in the community.”

47%

50%

62%

Q14. Please indicate the extent to which you agree or disagree with each of the following statements with regard to Local Television NewsBase: Regular Viewers (A Few Times A Week or More) of : Local Television News (n=2655)/Milwaukee Market Sample Size: 100 Adults 25+

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 19

Q14/Q15/Q16. Please indicate the extent to which you agree or disagree with each of the following statements with regard to [MEDIA]Base: Regular Viewers (A Few Times A Week or More) of : Local Television News (n=2655)/Milwaukee Market Sample Size: 100 Adults 25+

Cable news such as CNN, FoxNews, MSNBC

Online video sites

Radio on any device

Broadcast network news

Social networking sites

Magazines in any format

Print newspapers in any format

Search engine sites

Local television news

19

19

24

25

33

45

46

53

54

How often do you investigate further or purchase a product or service advertised on / in <media>

Often / Sometimes (%)

Ads in Local Television News Spur Milwaukee Viewers to Action

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 20

Summary

© GfK 2014 | The Unique and Powerful Selling Proposition of Local Television News| June 2014 21

Local Television News Viewing Environment• High Degree of Trust• An Unrivaled Source of Local Content• Strong in Community Connection• Relevant to Viewers and their Family

Local Television News Advertising Environment• Resource for Product and Service Ideas• Fosters Community Bonds with Viewers• Shows Sense of Caring Toward Viewers and their Family• Prompts Viewers to Act

• Purchase• Research• Word of Mouth Recommendations

The Unique Value of Advertising in Local TV Broadcast NewsSummary