Local Television Advertising Effectiveness Study

1

Local Television AdvertisingEffectiveness Study

Kathleen KeefeVice President, Sales

March 21, 2008

2 © 2007 Frank N. Magid Associates, Inc.

Table Of Contents

Objectives And Methodology 2 Executive Summary 6 Viewership And Preferred Media 9 Local News Vs. All Genres 12 Local News Vs. Cable News And Broadcast Network News 22 Weather Information 25 Online News 28 Demographic And Technographic Profile Of Local News Viewers 33 Appendix I – Additional Findings 36 Appendix II - Demographics 40


Objectives And Methodology


Objectives

Determine key attributes to be used for television advertising sales based on the performance of local television news relative to cable and network news; and by genre for local TV station programming relative to cable channel and network programming

Understand how local news Web sites perform relative to other Web site genres on attributes relevant to advertisers

Evaluate local television news weather and local television news Web site weather and determine the distinct advantages local news offers relative to competitors


Methodology• Online survey of 2,719 local news viewers (watch local news twice a week or more)

in the Hearst-Argyle local news footprint as seen on the next slide• All respondents are age 25-54 • Field period: November 16-December 4, 2007• Survey hosted by Frank N. Magid Associates’ online research division

SurveysOnline.com• In addition to evaluating local news, respondents evaluated a maximum of two of

the genres listed below relative to local news. To rate a genre, respondents were required to watch the genre twice a week or more

Sample SizePrime time dramas/situation comedies 652Broadcast network news 644Cable news 638Reality TV 532Cable prime time dramas/movies 437Entertainment news 410Sitcom reruns 392Game shows 392Information talk shows 307Court shows 207Entertainment talk shows 79


Market Completes

Boston, MA 310

Sacramento/Stockton/Modesto, CA 238

Orlando/Daytona/Melbourne, FL 206

Baltimore, MD 197

Cincinnati, OH 157

Pittsburgh, PA 153

Kansas City, MO 153

Greenville/Spartanburg/Asheville, GA, NC, SC 104

Greensboro/High Point/Winston, NC, VA 104

Louisville, KY 104

Harrisburg/Lancaster/Lebanon, PA 102

Oklahoma City 102

Methodology – Number Of Completes By Market

Market Completes

Milwaukee, WI 101

New Orleans, LA 99

Albuquerque, NM 98

West Palm Beach/Ft. Pierce, FL 94

Omaha, NE 51

Jackson, MS 51

Ft. Smith/Fayetteville, AR, OK 51

Honolulu, HI 50

Burlington/Plattsburgh, NH, NY, VT 50

Des Moines/Ames, IA 49

Portland/Auburn, ME 49

Monterrey/Salinas, CA 46


Executive Summary


Executive Summary

Overall, local news is an important and influential part of viewers’ lives

Local News Vs. Cable News and Network News Viewers are more engaged in local television news than cable news and network news Advertisements during the local news do a better job than advertisements in cable and

network news in terms of: Trustworthiness Keeping viewers in the know regarding products and services Advertising products that appeal to the viewer Driving purchase of products

Advertisements during the local television news do a better job than advertisements in 8 other entertainment genres when looking at these same attributes

Online video viewing of local news is higher than cable news, network news and any entertainment genre

Prime time programs that air on Local Broadcast TV Stations Vs. Prime time Programs that air on Cable:

“Viewers are more engaged in Prime time Programs that air on Local Broadcast TV Stations Vs. Prime time Programs that air on Cable in terms of: “Being a Major Part of my Daily Routine” “Being Essential that I Watch This Programming” “Paying More Attention When Watching This Type of Programming Than Watching Other Types”

Local news is more “DVR-proof” Fewer viewers record local news and are less likely to fast forward through local news than

other genres


Executive Summary

Local News Vs. Cable And Broadcast Network News Local news is considered a more important source for news than cable and

broadcast network news genres and viewers feel a stronger attachment to local news anchors

Weather Information Local television is a much more important source of weather information than

cable and broadcast network news Among weather sources on the Web, local television Web sites are the most

important source for weather information

Online News After search engines, local television news Web sites are the most frequently

used Web sites for local news

Demographics And Technographics Local news viewers are more affluent and more educated than the general

population Local news viewers are more likely to own/subscribe to advanced video viewing

devices and services


Viewership And Preferred Media


25%

43%

17%

5%9%

2 hours or less3-4 hours5-6 hours7-8 hours9 or more hours

Most Watch Local News During Non-Business Hours And Most Watch At Least Three Hours of TV Per Day

Between 6 a.m. and 9 a.m.

Q. 2 At what time(s) of day do you typically watch the local news? Please select all that apply.Q. 3 In a typical 24-hour day, Monday through Sunday, how many hours per day do you watch any type of programming on TV?

Between 11 a.m. and 1 p.m.

Between 5 p.m. and 7 p.m.

Between 10 p.m. and 11:35 p.m.

Day part for local news viewing

Total hours of television watched in a typical day

These three day parts present an excellent opportunity to reach viewers


Most Prefer Television As Their Source For News Information, Followed By Web Sites

14%

26%

55%

4% 1%

Newspapers inprintWeb sites/theInternetTelevision

Radio

Magazines in print

Q. J Which of the following do you most prefer for news?


Local News Vs. All Genres


Cable prime time dramas/movies

Local news

Prime time dramas/situation comedies

Reality TV

Court shows

Game shows

Information talk shows

Entertainment talk shows

Entertainment news

Sitcom reruns

I pay more attention when watching this type of programming than when watching other types

Local News Wins As Part Of Viewers’ Daily Routines And Viewers Are More Engaged In Local News Than Most Other Genres

Local newsPrime time dramas/situation comedies

Reality TVCable prime time

dramas/moviesCourt shows

Sitcom reruns

Watching this type of program is a major part of my daily routine

Local news


Reality TV

Cable prime timedramas/movies

Court shows

Game shows



Entertainment news

Sitcom reruns

It is essential that I watch this program

Information talk showsGame shows

Entertainment newsEntertainment talk shows

Please indicate the extent to which the statement below describes you with regard to each of the genres listed below. (slide shows top-two box on a 5-point scale where a “5” means “Describes me completely” )


I pay more attention when watching this type of programming than when watching other types

Local News Wins As Part Of Viewers’ Daily Routines And Viewers Are More Engaged In Local News Than Cable News and Network News

Local news

Cable news

Broadcast network news

Watching this type of program is a major part of my daily routine

Cable news


It is essential that I watch this program

Please indicate the extent to which the statement below describes you with regard to each of the genres listed below. (slide shows top-two box on a 5-point scale where a “5” means “Describes me completely” )

Local news Local news

Cable news



Advertising During Local News Creates Awareness And Drives Purchase Of Products And Services More Than Most Other Genres

Please indicate the extent to which you agree with the statement below with regard to each of the genres listed below. (slide shows top-two box on a 5-point scale where a “5” means “Strongly agree” )

Local news

Cable news



Reality TV


Court shows

Game shows



Entertainment news

Sitcom reruns

Ads on this type of program keep me in the know with regard to products/services

Local news

Cable news



Reality TV


Court shows

Game shows



Entertainment news

Sitcom reruns

I have purchased a product/service as a result of an ad on this type of program


Relative To Other Genres, Products/Services Advertised During Local News Are Among The More Trustworthy And Represent Viewers’ Interests

Local news

Cable news




dramas/movies

Court shows

Game shows



Entertainment news

Sitcom reruns

I can trust products or services that are advertised during this type of program

Products or services advertised during this type of program are meant for people like me

Local news

Cable news



Reality TV


Court shows

Game shows



Entertainment news

Sitcom reruns



Few Viewers Have A Negative Impression Of Companies That Advertise During The Local News

Local news

Cable news



Reality TV


Court shows

Game shows



Entertainment news

Sitcom reruns

I would think less of a company that advertised during this type of program



Online Video Viewing Of Local News Is Higher Than Any Other Genre

Local news

Cable news



Reality TV


Court shows

Game shows



Entertainment news

Sitcom reruns

Q. 71(A-L) In the past 30 days, how many times have you watched each of the following using online video?

Watched video on Web site in the past 30 days


Almost Half Of Local News Viewers Have A DVR

Q. 72 Now, please think about a device called a Digital Video Recorder, or DVR. TiVo, for instance, is a DVR. Other DVRs often come from local cable or satellite TV companies. A digital video recorder allows viewers to record programs and movies from TV without the use of videotapes. A DVR also lets viewers pause and rewind programs and movies while they are being shown on TV. Which of the following digital video recording devices/services, if any, do you currently own or subscribe to?

A digital video recorder such as TiVo, Replay TV, or Ultimate TV

A digital video recorder provided by my satellite

company

A digital video recorder provided by my cable

company

None of these


Local News Falls In Towards The Bottom Of The Pack When It Comes To Recording-To-View At Another Time

Q. I(A-L) In the past 30 days, how many times have you recorded each of the following types programming for viewing at another time using a TiVo, DVR, or VCR?

Local news

Cable news




dramas/movies

Court shows

Game shows



Entertainment news

Sitcom reruns

Recorded-to-view at another time in the past 30 days

Despite the high incidence of DVR ownership, recording of local news is low


Among Viewers Who Record Local News, Few Fast Forward

*Indicates sample size less than 100BASE: Respondents who have recorded each genre in the past 30 daysQ. 10(A-F) When you are watching ______, how often do you also do each of the following?

Local news

Cable news



Reality TV


*Court shows

*Game shows


*Entertainment talk shows

*Entertainment news

Sitcom reruns

Fast forward when watching each of the genres listed below


Local News Vs. Cable News And Broadcast Network News


Local News Is More Important Than Cable Or Broadcast Network News And Viewers Are More Likely To Watch Local News From Start To Finish

78%

14%

8%

Local news

Cable news

Broadcast networknews

Q. 43 From the news sources listed below, please select the source that is most important to you. Q. 17(A-C) Please indicate the extent to which the statement below describes you with regard to each of the genres listed below. (slide shows top-two box on a 5-point scale where a “5” means “Describes me completely” )

Most important news source

Local news

Cable news


When watching this type of programming, I watch from start to finish


Viewers Feel A Stronger Emotional Attachment To Their Local News Anchors Than Cable Or Broadcast Network News Anchors

*Good source of info on products/service

*Is like a good friend

*Is my most important source of info in my community

*Is essential to keeping me informed

**Has anchors/news personalities who I trust

**Has anchors/news personalities that make me want to spend more

time watching news

*Q40 Please indicate the extent to which you agree with the statement below with regard local television news such as _____. (slide shows top-two box on a 5-point scale where a “5” means “strongly agree”)**Q. 50,51(A-C) Please indicate the extent to which the statements below describe _ ___anchors or news personalities. (slide shows top-two box on a 5-point scale where a “5” means “Describes completely” )

Note that respondents also feel local news is the best source for product/service information


Weather Information


Local News Is By Far The Most Important Source Of Weather Information And Also Has Meteorologists That Viewers Tune In To Watch

*Has meteorologists/weathercasters that I tune in specifically to

watch

*Is my most important source for weather

*Q40 Please indicate the extent to which you agree with the statement below with regard local television news such as _____. (slide shows top-two box on a 5-point scale where a “5” means “strongly agree”)**Q. 50,51(A-C) Please indicate the extent to which the statements below describe _ ___anchors or news personalities. (slide shows top-two box on a 5-point scale where a “5” means “Describes completely” )


Local Television News Web Sites Are The Most Important Source For Weather Information

Local television news sites

Cable news sites

Broadcast television news sites

Newspaper sites

News on search engines

Weather sites

Q. 60.1(A-G) How often do you visit each of the following for weather information?

Local information sites


Online News


After Search Engines, Local Television News Web Sites Are The Most Frequently Used For Local News

Local television news

Cable news sites

Broadcast television news

Newspaper sites


Weather sites

Q. 60(A-G) How often do you visit each of the following for news?



Half Of Whom Are Employed Use The Internet For News At Work

When I miss something on the local news, I go to the local station Web site

I frequently use the Internet for news at work*

A recommendation on the local news often makes me go to the

local station Web site

*Respondents who are employedQ. 69(A-C) Please indicate the extent to which each of the statements below describe you.


Advertising On Local Television News Web Sites Has A Strong Impact On Products And Services Relative To Other Web Sites

Q. 67(A-H) Please indicate the extent to which you agree with the statements listed below with regard to ____. (slide shows top-two box on a 5-point scale where a “5” means “strongly agree”)

I can trust products/ services advertised on this type of site

Cable news sites

Broadcast network news sites

Newspaper sites


Weather sites




Cable news sites

Newspaper sites


Weather sites



The ads on this type of site keep me in the know with regard to products/services in the local marketplace

Cable news sites


Newspaper sites


Weather sites



I have purchased a product/service as a result of an ad on this site

Cable news sites


Newspaper sites


Weather sites



Products/services advertised on this type of site are meant for people like me


Local Television News Web Sites Are The Most Important For Community Information

This type of site is my most important source of info in my community

Q. 67(A-H) Please indicate the extent to which you agree with the statements listed below with regard to ____. (slide shows top-two box on a 5-point scale where a “5” means “strongly agree”)

Cable news sites


Newspaper sites


Weather sites




Demographic And Technographic Profile Of Local News Viewers


Local News Viewers Are More Affluent And More Educated Than The General Online Population*

Completed bachelors degree

Graduate degree or higher

$100,000 or more

Education

Income

*General online population data source: Magid Media Futures survey of 1,149 adults age 25-54 conducted in March 2007.

Note that 50% of local news viewers are college graduates vs. 39% for the general population


Local News Viewers Are More Likely To Own/Subscribe To The Latest In Video Technology Products

Higher incidence of high-speed Internet allows for the option to watch video online at local news Web sites

*General online population data source: Magid Media Futures survey of 1,149 adults age 25-54 conducted in March 2007.

DVR ownership

HDTV ownership

High-speed Internet


Appendix I – Additional Findings


Almost All Have Some Type Of Pay Television Service

Q. 73 To which of the following television services does your household currently subscribe?

Satellite television

Basic cable

Digital cable

None of the above


Most Have High-Speed Internet Access

Q. 74 What type of Internet service do you have at home?

Cable modem

DSL (digital subscriber line)

Standard telephone line (dial-up)

Other

Do not have an Internet connection at home

Not sure


32% Have HDTV; An HDTV Set-Top Box From The Cable Company Is The Most Common Way To Receive HDTV

*Base: HDTV ownersQ. 76 How familiar are you with high-definition television, or HDTV?Q. 77 In which of the following ways do you receive and watch high-definition programs on your high-definition television set(s)?

Familiarity with HDTV Ways HDTV is received*

32%

14%35%

18%1% I/We own an

HDTV set inmy/our home

Very familiar

Somewhtfamiliar

Not veryfamiliar

DK/NA

HDTV set-top box from cable

Cable card

HDTV set-top box from satellite

Digital receiver box and antenna

Built-in digital turner

No steps taken to order HDTV programs

DK/NA

Other


Appendix II - Demographics


Gender And Age

Gender Age


Education And Income

High school or less

Trade/technical school/associates

degree

Some college

Bachelor’s degree

Graduate degree or higher

Less than $35,000

$35,000-$49,999

$50,000-$74,999

$75,000-$99,999

$100,000-$149,999

$150,000 or more

Prefer not to answer

Education Income


Marital Status And Children

Marital Status Children

Documents

Local Television Advertising Effectiveness Study