Local Television Advertising Effectiveness Study

1

• Local Television AdvertisingEffectiveness
  Study

Kathleen KeefeVice President, Sales March 21,
2008
2
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

3
Objectives And Methodology
4
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

5
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

6
Methodology Number Of Completes By Market
7
Executive Summary
8
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

9
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

10
Viewership And Preferred Media
11
Most Watch Local News During Non-Business Hours
And Most Watch At Least Three Hours of TV Per Day
Day part for local news viewing
Total hours of television watched in a typical day
Between 6 a.m. and 9 a.m.
These three day parts present an excellent
opportunity to reach viewers
Between 11 a.m. and 1 p.m.
Between 5 p.m. and 7 p.m.
Between 10 p.m. and 1135 p.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?
12
Most Prefer Television As Their Source For News
Information, Followed By Web Sites
Q. J Which of the following do you most prefer
for news?
13
Local News Vs. All Genres
14
Local News Wins As Part Of Viewers Daily
Routines And Viewers Are More Engaged In Local
News Than Most Other Genres
Watching this type of program is a major part of
my daily routine
Local news
Prime time dramas/ situation comedies
Reality TV
Cable prime time dramas/movies
Court shows
Sitcom reruns
Information talk shows
Game shows
Entertainment news
Entertainment talk shows
I pay more attention when watching this type of
programming than when watching other types
It is essential that I watch this program
Prime time dramas/ situation comedies
Prime time dramas/ situation comedies
Cable prime time dramas/movies
Reality TV
Local news
Reality TV
Cable prime time dramas/movies
Local news
Information talk shows
Information talk shows
Court shows
Court shows
Entertainment talk shows
Game shows
Sitcom reruns
Sitcom reruns
Game shows
Entertainment talk shows
Entertainment news
Entertainment news
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 )
15
Local News Wins As Part Of Viewers Daily
Routines And Viewers Are More Engaged In Local
News Than Cable News and Network News
Watching this type of program is a major part of
my daily routine
Local news
Cable news
Broadcast network news
I pay more attention when watching this type of
programming than when watching other types
It is essential that I watch this program
Local news
Local news
Cable news
Cable news
Broadcast network news
Broadcast network news
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 )
16
Advertising During Local News Creates Awareness
And Drives Purchase Of Products And Services More
Than Most Other Genres
Ads on this type of program keep me in the know
with regard to products/services
I have purchased a product/service as a result of
an ad on this type of program
Information talk shows
Local news
Information talk shows
Local news
Entertainment talk shows
Entertainment talk shows
Cable news
Cable news
Prime time dramas/ situation comedies
Cable prime time dramas/movies
Cable prime time dramas/movies
Reality TV
Prime time dramas/ situation comedies
Reality TV
Broadcast network news
Broadcast network news
Sitcom reruns
Entertainment news
Sitcom reruns
Game shows
Game shows
Entertainment news
Court shows
Court shows
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 )
17
Relative To Other Genres, Products/Services
Advertised During Local News Are Among The More
Trustworthy And Represent Viewers Interests
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
Information talk shows
Information talk shows
Local news
Local news
Prime time dramas/ situation comedies
Entertainment talk shows
Cable news
Broadcast network news
Cable news
Reality TV
Game shows
Sitcom reruns
Cable prime time dramas/movies
Reality TV
Cable prime time dramas/movies
Broadcast network news
Prime time dramas/ situation comedies
Entertainment talk shows
Game shows
Entertainment news
Sitcom reruns
Entertainment news
Court shows
Court shows
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 )
18
Few Viewers Have A Negative Impression Of
Companies That Advertise During The Local News
I would think less of a company that advertised
during this type of program
Local news
Broadcast network news
Game shows
Prime time dramas/ situation comedies
Cable prime time dramas/movies
Reality TV
Information talk shows
Sitcom reruns
Entertainment news
Cable news
Court shows
Entertainment talk shows
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 )
19
Online Video Viewing Of Local News Is Higher Than
Any Other Genre
Watched video on Web site in the past 30 days
Local news
Cable news
Prime time dramas/ situation comedies
Reality TV
Broadcast network news
Cable prime time dramas/movies
Entertainment news
Sitcom reruns
Information talk shows
Game shows
Entertainment talk shows
Court shows
Q. 71(A-L) In the past 30 days, how many times
have you watched each of the following using
online video?
20
Almost Half Of Local News Viewers Have A DVR
A digital video recorder such as TiVo, Replay TV,
or Ultimate TV
A digital video recorder provided by my cable
company
A digital video recorder provided by my satellite
company
None of these
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?
21
Local News Falls In Towards The Bottom Of The
Pack When It Comes To Recording-To-View At
Another Time
Recorded-to-view at another time in the past 30
days
Prime time dramas/ situation comedies
Reality TV
Cable prime time dramas/movies
Information talk shows
Entertainment talk shows
Court shows
Sitcom reruns
Despite the high incidence of DVR ownership,
recording of local news is low
Local news
Entertainment news
Cable news
Broadcast network news
Game shows
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?
22
Among Viewers Who Record Local News, Few Fast
Forward
Fast forward when watching each of the genres
listed below
Court shows
Cable prime time dramas/movies
Information talk shows
Reality TV
Prime time dramas/ situation comedies
Entertainment news
Cable news
Entertainment talk shows
Game shows
Sitcom reruns
Local news
Broadcast network news
Indicates sample size less than 100 BASE
Respondents who have recorded each genre in the
past 30 days Q. 10(A-F) When you are watching
______, how often do you also do each of the
following?
23
Local News Vs. Cable News And Broadcast Network
News
24
Local News Is More Important Than Cable Or
Broadcast Network News And Viewers Are More
Likely To Watch Local News From Start To Finish
Most important news source
When watching this type of programming, I watch
from start to finish
Local news
Broadcast network news
Cable news
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 )
25
Viewers Feel A Stronger Emotional Attachment To
Their Local News Anchors Than Cable Or Broadcast
Network News Anchors
Is essential to keeping me informed
Is my most important source of info in my
community
Has anchors/news personalities who I trust
Has anchors/news personalities that make me
want to spend more time watching news
Is like a good friend
Note that respondents also feel local news is the
best source for product/service information
Good source of info on products/service
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 )
26
Weather Information
27
Local News Is By Far The Most Important Source Of
Weather Information And Also Has Meteorologists
That Viewers Tune In To Watch
Is my most important source for weather
Has meteorologists/ weathercasters that I tune
in specifically to watch
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 )
28
Local Television News Web Sites Are The Most
Important Source For Weather Information
Local television news sites
Weather sites
News on search engines
Local information sites
Newspaper sites
Broadcast television news sites
Cable news sites
Q. 60.1(A-G) How often do you visit each of the
following for weather information?
29
Online News
30
After Search Engines, Local Television News Web
Sites Are The Most Frequently Used For Local News
News on search engines
Local television news
Weather sites
Local information sites
Newspaper sites
Cable news sites
Broadcast television news
Q. 60(A-G) How often do you visit each of the
following for news?
31
Half Of Whom Are Employed Use The Internet For
News At Work
I frequently use the Internet for news at work
When I miss something on the local news, I go to
the local station Web site
A recommendation on the local news often makes me
go to the local station Web site
Respondents who are employed Q. 69(A-C) Please
indicate the extent to which each of the
statements below describe you.
32
Advertising On Local Television News Web Sites
Has A Strong Impact On Products And Services
Relative To Other Web Sites
I can trust products/ services advertised on this
type of site
The ads on this type of site keep me in the know
with regard to products/services in the local
marketplace
Local television news sites
Local information sites
Newspaper sites
Broadcast network news sites
News on search engines
Cable news sites
Weather sites
I have purchased a product/service as a result of
an ad on this site
Products/services advertised on this type of site
are meant for people like me
Local television news sites
Local information sites
Newspaper sites
Broadcast network news sites
News on search engines
Cable news sites
Weather 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)
33
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
Local television news sites
Newspaper sites
Local information sites
Weather sites
Broadcast network news sites
News on search engines
Cable news 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)
34
Demographic And Technographic Profile Of Local
News Viewers
35
Local News Viewers Are More Affluent And More
Educated Than The General Online Population
Completed bachelors degree
Note that 50 of local news viewers are college
graduates vs. 39 for the general population
Education
Graduate degree or higher
100,000 or more
Income
General online population data source Magid
Media Futures survey of 1,149 adults age 25-54
conducted in March 2007.
36
Local News Viewers Are More Likely To
Own/Subscribe To The Latest In Video Technology
Products
DVR ownership
HDTV ownership
Higher incidence of high-speed Internet allows
for the option to watch video online at local
news Web sites
High-speed Internet
General online population data source Magid
Media Futures survey of 1,149 adults age 25-54
conducted in March 2007.
37
Appendix I Additional Findings
38
Almost All Have Some Type Of Pay Television
Service
Digital cable
Basic cable
Satellite television
None of the above
Q. 73 To which of the following television
services does your household currently subscribe?
39
Most Have High-Speed Internet Access
Cable modem
DSL (digital subscriber line)
Standard telephone line (dial-up)
Other
Do not have an Internet connection at home
Not sure
Q. 74 What type of Internet service do you have
at home?
40
32 Have HDTV An HDTV Set-Top Box From The Cable
Company Is The Most Common Way To Receive HDTV
Familiarity with HDTV
Ways HDTV is received
HDTV set-top box from cable
Built-in digital turner
HDTV set-top box from satellite
Digital receiver box and antenna
Cable card
No steps taken to order HDTV programs
Other
DK/NA
Base HDTV owners Q. 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)?
41
Appendix II - Demographics
42
Gender And Age
Gender
Age
43
Education And Income
Education
Income
Less than 35,000
High school or less
35,000-49,999
Trade/technical school/associates degree
50,000-74,999
Some college
75,000-99,999
100,000-149,999
Bachelors degree
150,000 or more
Graduate degree or higher
Prefer not to answer
44
Marital Status And Children
Marital Status
Children