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#LOAC2018

Welcome!

Total local ad growth

But the tide isn’t rising for all media….

2018 Local Advertising Forecast

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

DigitalNon-Digital

2018 Local Advertising Forecast

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

$126.8 billion

The Lines Crossed Last YearU.S. LOCAL ADVERTISING

Source: Borrell Associates © 2018 Borrell Inc. ALL RIGHTS RESERVED.

$ Billions

Expect flattening to begin in 2019.

Will the Digital Tide Stop Rising?U.S. LOCAL DIGITAL ADVERTISING EXPENDITURE GROWTH RATE

Source: Borrell Associates © 2018 Borrell Inc. ALL RIGHTS RESERVED.

---- Forecast

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

What’s Changing in 2018

Source: Borrell Associates

Change in U.S. Local Ad Expenditures, 2018 vs. 2017

Out of Home is the only traditional type of advertising that’s shownconsistent growth

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Local ‘Marketing’ ExpendituresContinue to Mushroom

U.S. Local Marketing Expenditures--$ Billions

Forecast

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

2.5x

Advertising Isn’t Driving That Growth

2.0x

$ Billions

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Where The Money Is Going

*Average annual expense for local businesses surveyed from April-July 2017Source: Borrell’s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)

Annual Expenditures

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

*Average annual expense for local businesses surveyed from April-July 2017Source: Borrell’s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)

Annual Expenditures

Where The Money Is Going

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

*Average annual expense for local businesses surveyed from April-July 2017Source: Borrell’s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)

Realty agents spend half as much on

advertising as the typical advertiser but nearly 2x the average

on managing social media.

Even businesses with 10 or fewer employees spend

big money on managing social

media.

Annual Expenditures

Where The Money Is Going

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Source: Borrell’s annual survey of Local Advertisers, April-August 2017; N = 3,508 responses

Old Media vs. New Media…So which is better?

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

14Source: Borrell’s 2017 Local Advertiser Survey; N= 3,511 responses

2.06

2.22

2.47

2.49

2.52

2.53

2.59

2.64

2.67

2.71

2.72

2.76

2.76

2.79

2.80

2.80

2.85

2.94

2.98

3.05

3.06

3.06

3.07

3.07

3.13

3.16

3.31

3.33

3.37

3.42

Response/ QR codes

Printed directories

Other printed publication

Online directory listings

Magazine

Online classified ads

Cinema

Display ads

In-game advertising

Newspaper

In-app advertising

Content

SMS or text-based ads

Cross-site ad networks

Deal promos /coupons

Audio ads, podcasts

Impression, ROS ads

Radio

Outdoor

Video ads

Postal mail

Native ad formats

Geo targeting

Event marketing

Behavioral targeting

Cable TV

Email marketing

Search engine marketing

Broadcast TV

Social media adv

Effectiveness on Scale of 1 to 5

Traditional

Digital

Scores of 3.0 and above are considered moderately effective or better.

Q. Of the types of media your business used in 2016, how effective were each at reaching your marketing/advertising goals?

Scale: Don’t know1- Not at all effective2 - Slightly effective3 - Moderately effective4 - Very effective5 - Extremely effective

Which Channels Are Most

Effective?

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

15

Digital Is Often a Combo Buy

Source: Borrell’s 2017 SMB Survey; N = 3,420 advertisers

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Traditional Media’s ‘Gut’

AdvantageHow 2,293 local advertisers

decide what to buy

Source: Borrell’s Annual Survey of Local Advertisers; April-June 2017; N = 2,293

responses

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

The Deer Have the Guns

Sources: Borrell’s Annual Survey of Local Advertisers; April-July 2017; N = 3,039 responses; & Borrell’s monthly advertiser panel, 208 responses

© 2018 Borrell Inc.

Rating the marketing experience of 3,039 local advertisers

70% Are LonersOf those with the least marketing expertise, 70% make marketing decisions without anyone’s help.

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

It’s a Confusing, Crowded SpaceWho Handles Digital Services For Local Businesses?

Source: Borrell’s Annual Survey of Local Advertisers; April-June 2017; N = 1,460 responses

Internal/Self3%

GoDaddy5%

CDK Global2%

Google, 2%

Wix, 1%

hibu, 1%

wife

Son-in-law

Relative

Notables

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Digital is a Huge Time SuckInternal Hours/Week Spent on Marketing

*Average annual expense for local businesses surveyed from April-July 2017Source: Borrell’s 2017 Local Advertiser Survey; N = 3,551 responses from all advertisers, 250 responses by franchisees; 189 real estate agents; 354 health care providers; 194 restaurants/bars; 1,652 tiny businesses (10 or fewer employees)

The average local business manager

spends the equivalent of nearly 1½ days a week on

marketing activities.

A business with 10 or fewer employees spends nearly one

full day on marketing activities.

Imagine that!

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Local Ad Agencies I.D. Competitors

Source: Borrell’s Annual Survey of Local Advertisers; April-June 2017; N = 583 responses from local ad agencies

Who is your biggest competitor?

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Digital Dominators Emerge

Source: Borrell’s database of digital revenue for 2,789 local media entities.

Share ofIn-Market

AddressableDigital Ad Dollars

1Digital Marketing Region (DMR) Rank

Top 5%Get 30% or

More of Addressable

Dollars

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

One Of Those

Stars . . .

Jim Moroney

Jared Merves

Alison DraperMike Orren

Greg Colunga

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Randall RothenbergIAB

Josh MabryFacebook

Gian FulgonicomScore

Changes…

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Smart

Speakers

Steve GoldsteinAmplifi

Fred JacobsJacobs Media

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Peter NewtonGateHouse Media

Bob BrownSwift Communications

Caroline BeasleyBeasley Media

Is Local Media

Moving Fast Enough?

Nancy LaneLocal Media Association

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Entercom Is

A Leading . . .

Tim MurphyEntercom

American Entertainment

& Media Company

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Matt Sunshine

➢ Ray Carulli, Vivial

➢ Don Morris, Take5 Media Group

➢ Donny Dye, Simpli.fi

➢ Joe DiGiovanni, The Weather Co.

➢ Dan Lansman, SiteImpact

➢Mark Gorman, Matrix

➢ Kyoo Kim, Netsertive

➢ Shawn Pokorny, Clipcentric

➢ Jordan Bentley, Admatic

➢Afif Khoury, MeetSoci

➢ Kevin Gianatiempo, Zypmedia

➢ Stan Justice, Data-Dynamix

First-Class Stories

© 2018 Borrell Inc. ALL RIGHTS RESERVED.

Today’s

Keynoter

Rishad Tobaccowala