2019

1. 2019

2. Contents • Holiday Sales (Slides 3-8) • Why TV? (Slides 9-26) • Influencing In-Store & Online Consumers (Slides 27-36)

3. Holiday Sales

4. Holiday Sales Expected to Increase by About 4% in 2019 Source: NRF Historical Holiday Sales and 2019 Forecast

5. 83% of Shoppers Plan to Spend the Same or More This Upcoming Holiday Season Source: OpenX 2019 Consumer Holiday Shopping Report. How much consumers plan to spend compared to last year.

6. Consumers Plan to Spend $715 on Gifts This Holiday Season Planned Holiday Spending per Consumer Source: PwC, Holiday Outlook 2019

7. The Majority of Holiday Shopping Happens in November When Do You Typically Begin Shopping for Gifts for the Holiday Season? Source: NRF’s Annual Holiday Consumer Survey 2019, conducted by Prosper Insights & Analytics

8. Consumers Say Sales and Price Discounts are Most Important Source: NRF’s Annual Holiday Consumer Survey 2019, conducted by Prosper Insights & Analytics

9. Retailers Agree Deals & Discounts Will be Key % of Retailers Source: RetailMeNot Holiday Insights Hub 2019

10. Why TV?

11. TV Dominates Share of Ad Spending Among Top Retailers During the Winter Holiday Retail Advertisers Holiday Season 2018 Media Mix Source: Kantar Winter Holiday 2019 Report. Winter Holiday Period (Oct 29-Dec 31 2018)

12. TV Has Highest Reach of Ad Supported Platforms Broadcast Leads the Way Source: GfK TVB Media Comparisons Study 2019. M-S 5A-1A. Persons 18+. Online/internet platforms such as email, social media, internet radio and websites, are totaled for any online device-PC, Smartphone and Tablets. Broadcast TV News Websites/Apps includes local TV station & network websites/apps for news/weather/sports.

13. People Spend the Most Time with Television of All Ad Supported Platforms Source: GfK TVB Media Comparisons Study 2019. M-S 5A-1A. Persons 18+. Online/internet platforms such as email, social media, internet radio and websites, are totaled for any online device-PC, Smartphone and Tablets. Broadcast TV News Websites/Apps includes local TV station & network websites/apps for news/weather/sports.

14. TV Usage Dominates Total Video Usage Q2 2019: Weekly Time Spent A18+ (Hrs:Min) Source: Nielsen The Total Audience Report Q2 2019 Hours:Minutes among U.S. population Internet Connected Device is inclusive of Smart TV app usage.

15. Top Exposure for Retail Ads: TV at 83% Source: GfK TVB Purchase Funnel 2018 Retail Category A18+ “In the past two months, did you see, hear or read any advertisement in any of these media/digital internet media?”

16. TV Influences Retail Consumers Most Source: GfK TVB Purchase Funnel 2018 Retail Category (% Most important media type among those who saw/heard ads in at least 1 media source)

17. More Exposures Means More Action Which of the following did you do after seeing/hearing the ads for the retail category on television? Any action Visited a physical retail store location Visited an online retail website/app Went online to learn more about what was advertised Went to the website or app advertised to learn more about what was advertised Searched online for a coupon or promotional offer Remembered you had seen the brand advertised before (i.e., newspaper, radio or the internet) Source: GfK TVB Purchase Funnel 2018 Retail Category

18. TV Influences Travel Consumers Most Source: GfK TVB Purchase Funnel 2019 Travel Category A18+, Responses = 1264 QA4/QA5/QA6/QA7/QA8 Most important for media that registered 2% or higher.

19. Out of 5 choices, the top 4 were Broadcast Networks If you could choose only five networks, which five would you choose? Network “A” Network “B” Network “C” Network “D” Network “E” BROADCAST NETWORK CABLE NETWORK Source: GfK TVB Media Comparisons Study 2019. Respondents were given 50 choices of Broadcast and Cable Networks with an option to write in a network.

20. The Programming of Choice During the Holiday Season Is On Broadcast TV Source: Nielsen NPower, 10/25/18-12/25/18, A18+ Live+1 Ratings. Broadcast Includes all Networks and Syndication.

21. Broadcast: Superior Holiday Season Ratings Adults 25-54 Live+1 Ratings Source: Nielsen 10/25/2018 - 12/25/2018 Adults 25-54 Live+1 Ratings; Broadcast Includes all Networks and Syndication. 10 Cable Networks based on A25-54 Ratings

22. Great Reach for Thanksgiving Ad Kickoff: One Program Has 2-5X the Reach of Full Day on Cable 1 unit 1 unit 1 unit 1 unit 17 units 24 units 12 units 41 units 35 units 12 units 10 units Source: Nielsen NPower. November 22nd 2018, Adults 18+; Live + 1

23. Buying Locally Recognizes Each Market’s Viewing Preferences Macy’s Thanksgiving Day Parade Top Metered MarketsHH Rating (Live+1) Source: Nielsen, 11/22/18 Live+1

24. NFL: Broadcast is the Local TV Choice Source: Nielsen Sept. – Dec. 2018. Live+1.

25. One Size Does NOT Fit All. Local TV Recognizes Each Market’s Uniqueness The Redder the better- Higher the Sales Index Source: GfK MRI 2018 Market-by-Market weighted by Adult 18+ population. Shopped in past 3 months

26. Consumers Shopping List This Holiday Season Source: NRF’s Holiday 2018 Consumer Trends

27. Reach Key Category Shoppers with a Variety of Broadcast TV Programs Source: GfK MRI Spring 2019. Base: Adults 18+ Shopped at The Gap, J.Crew, JCPenney, Macy’s or Old Navy in the last 3 Months. Adults 18+ Shopped at Apple Store or Best Buy in the last 12 months.

28. Influencing Consumers Wherever They ShopIn-Store & Digital

29. Consumers Plan to Spread Their Holiday Purchases Where do you plan to purchase holiday items this year? Source: NRF’s Annual Holiday Consumer Survey 2019, conducted by Prosper Insights & Analytics

30. Online Shopping Slightly OutpacesIn-Store this Holiday Source: PwC, Holiday Outlook 2019

31. In-Store and Online Shoppers: It’s not an Either-Or,About a Third Did Both • Source: GfK TVB Purchase Funnel 2018 Retail Category

32. “This holiday season, have you purchased or plan to purchase from…?” Source: GfK TVB Purchase Funnel 2018 Retail Category Adults 18+

33. Cyber Monday is the Biggest Retail e-Commerce Shopping Day of the Holiday Season Retail e-commerce holiday season sales, 2018 (in billions) Source: eMarketer US 2018 Holiday Season Review and 2019 Preview. Top 10 US Holiday Season Shopping Days, Ranked by Retail Ecommerce Sales, 2018. Green Monday = Dec 10

34. Broadcast TV Delivers Internet Shoppers Index Source: GFK MRI Spring 2019, Base: Adults 18+ Index Internet Shopping: Ordered items $50+ in last 12 months.

35. “Have TV ads influenced your search selections?” Source: GfK TVB Purchase Funnel 2018 Retail Category “When doing an online search, how often, if at all, have TV ads you have seen in this category influenced you in some ways in your search?” (Yes = combination of Every time, Most of the time & Sometimes)

36. Build Reach Quickly with Broadcast TV Broadcast TV Reaches the Same Amount of Adults in 1 Day,as Social Media does in a Month A18+ 74,371,000 Unduplicated Viewers 1 1 4 6 7 2 3 5 Time Frame Days 8 9 10 11 12 13 14 19 15 16 17 18 20 21 22 23 24 25 26 27 28 29 30 31 31 29 30 62 Programs 6.6 Billion Videos Source: August 2019 Nielsen; Live+1. Comscore, People 18+, Data Source: VMX Desktop, 74,371,000 Unduplicated Viewers

37. Broadcast Websites Provide Multi-platform Opportunities

38. “When Visiting a Television Station’s Website or App, do you View the Ads?” Source: GfK TVB Purchase Funnel 2018 Retail Category “How often do you look at the video ads on that local television station’s website or app?” (Yes = combination of Every time, Most of the time & Sometimes)

39. Key Holiday Takeaways • 2019 Holiday sales are expected to increase by 4% from 2018. • More than half of holiday shoppers plan to start shopping in November (pre-Thanksgiving) or Black Friday and later. • TV is the most important platform in influencing the purchase decision process for both in-store AND online shoppers. • Broadcast TV dominates ratings & reach of holiday shoppers. • Broadcast TV can selectively deliver key holiday category shoppers. • Local television capitalizes on each product’s and retailer’s sales strengths by market.

40. Happy Holidays!