MASN 2016-17 Media Presentation_HiRes Single Pages

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2016 MASN MEDIA2016 RATINGS ANALYSIS. 2017 STRATEGY.

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ROIAnalysisofMASN’s2016MediaBuy 2-5

2016MASNMedia:TheStrategy 6-7

RatingsAchievements/Observations 8-11

Challenges,Considerations&Opportunities 12-31

2017Recommendations 32-33

GlossaryofKeyTerms 34-35

TABLE OF CONTENTS

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2016 marks the 10th baseball season that MASN has tracked network media spending and media strategies against Orioles and Nationals broadcast audience ratings – all in an effort to formulate the best return on investment (ROI) for MASN’s media dollars.

MASN’S MEDIA BUY: MEASURING ROI

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• Focusing advertising weight on series involving Orioles and Nationals “most popular” opponents (low-hanging fruit strategy)

• Concentrating advertising impressions on first game of series (frontloading strategy)

• Including programming that skews towards younger 25-34 audience – and measuring impact on ratings (select cable networks with younger appeal and Pandora radio, for example)

• Using ad networks/exchanges to purchase online ads (better targeting, wider net of websites, more impressions, lower per-unit costs)

• Reaching secondary sports audiences (casual fans) – not just die-hard baseball fans

• Utilizing 15-second creative/spots (versus 30-second spots)

DIFFERENT MEDIA STRATEGIES TESTED AND MEASURED OVER THE YEARS INCLUDE:

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BASEBALL BROADCASTS ON MASN ACHIEVE HIGHER HOUSEHOLD AND DEMO RATINGS WHEN THEY ARE SUPPORTED BY AN ADVERTISING BUY.

No matter the media strategy, one fact holds true over the last 10 baseball seasons:

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2016 MASN MEDIA:STRONG ROI DELIVERYIn Baltimore and Washington, DC…

Games with advertising support had significantly higher ratings than games with no ad support, particularly for the younger audience.

BALTIMORE: +29% higher Household Ratings +64% higher Men 25-34 Demo Ratings +35% higher Men 25+ Demo Ratings

WASHINGTON, DC: +23% higher Household Ratings +75% higher Men 25-34 Demo Ratings +33% higher Men 25+ Demo Ratings

games with no ad support

games with no ad support

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MASN HAS ACHIEVED POSITIVE ROI ON ITS ADVERTISING

INVESTMENT EVERY BASEBALL

SEASON SINCE 2007.

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2016 MASN MEDIA: THE STRATEGYA primary objective for 2016 was to restore Reach (R) and Frequency (F) levels to what was achieved in 2013 (when media budget included an additional $500K). To accomplish this, we promoted the first game of every series with a 30-second TV spot, but supported games 2 and 3 with a more condensed, 15-second spot. This boosted Frequency without adding cost.

Unlike previous years, we avoided “frontloading” (advertising heavily on just first game of series) or promoting only the “popular” opponent series. The result: fans saw MASN’s ads more often and were more mindful of when and where to tune in to the next game.

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2016 Reach/Frequency

TV 82% / 20.0

Radio 89% / 28.7


TV 79% / 13.6

Radio 70% / 36.3


TV 85.5% / 13.0

Radio 89.2% / 31.4


TV 70% / 10.3

Radio 77.6% / 36.2


TV 87.9% / 15.5

Radio 85.8% / 29.9


TV 78.2% / 10.7

Radio 75.7% / 35.9

BALTIMORE

WASHINGTON, DC

REACH AND FREQUENCY SUCCESSFULLY RESTORED IN 2016 – SURPASSING R/F IN 2015 AND 2014.

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THE STRONGER REACH & FREQUENCY ON TV AND RADIO, COMBINED WITH MILLIONS OF ONLINE AD IMPRESSIONS, HAD A MEASURABLE IMPACT ON 2016 RATINGS…

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With $500K fewer media dollars compared to 2013, MASN’s ratings for Men 25+ (primary demo) and Households (secondary demo) returned to, or exceeded, 2013 levels.

2016 7pm Starts

M25+ HH

6.8 7.4

2016 Media Budget: $2.4M 2013 Media Budget: $2.9M

2013 7pm Starts

M25+ HH

6.1 6.1

BALTIMORE

2016 7pm Starts

M25+ HH

2.4 2.7

2016 Media Budget: $2.4M 2013 Media Budget: $2.9M

2013 7pm Starts

M25+ HH

2.1 2.8

WASHINGTON, DC

*vs. $2.4M in 2016, 2015 and 2014.

RATINGSANALYSIS:

THE 2016 MEDIA STRATEGY SUCCESSFULLY SPARKED A RATINGS REVIVAL - RETURNING TO LEVELS IN 2013 WHEN BUDGET WAS $2.9M.

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ADDITIONAL2016RATINGSACHIEVEMENTS

RATINGS THROUGH A SERIES

BALTIMOREFor games 2, 3 and 4, the new media strategy improved ratings – reversing a downward trend in 2015. All games in series were watched equally (within 8%).

WASHINGTON, DCGames 1 and 2 had equally strong ratings, then game 3 dropped off by 10%.

BALTIMORE2016 M25+ M25-34 HH W-L

Game 1 6.3 1.8 6.8 14-14

Game 2 5.9 1.6 6.4 19-9

Game 3 5.8 1.4 6.3 14-9

Game 4 6.3 1.4 6.8 2-5

WASHINGTON, DC2016 M25+ M25-34 HH W-L

Game 1 2.3 1.2 2.7 18-10

Game 2 2.3 1.4 2.6 15-11

Game 3 2.1 1.1 2.4 18-8

Game 4 2.0 0.8 2.4 1-4

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2016 Hour 1 Average 2016 Remainder of Game Average

M25+ M25-34 HH M25+ M25-34 HH

4.8 1.3 5.3 6.5 1.7 7.0 +35% +31% +32%


M25+ M25-34 HH M25+ M25-34 HH

4.1 2.0 4.5 5.3 2.5 5.8 +23% +25% +29%

$2.4M Budget89-73 Record

(51-36 at break)T-2 in AL East


(44-44 at break)3rd in AL East

BALTIMORE


M25+ M25-34 HH M25+ M25-34 HH

1.7 1.0 2.0 2.4 1.4 2.8 +41% +40% +40%


M25+ M25-34 HH M25+ M25-34 HH

1.6 0.6 1.9 2.0 0.8 2.5 +25% +33% +32%


(54-36 at break)NL East Champs


(48-39 at break)2nd in NL East

WASHINGTON, DC

ADDITIONAL2016RATINGSACHIEVEMENTS

RATINGS – FIRST HOUR OF GAMEIn 2016, ratings also increased for the first hour of the game (in both Balti-more and Washington, DC).

However, first hour ratings are still approximately 1/3 less than the ratings for the rest of the game. In Baltimore, ratings increased 35% after first hour of game. In Washington, ratings increased 41%.

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CHALLENGES, CONSIDERATIONS & OPPORTUNITIES FOR 2017

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Newspaper advertising doesn’t come close to delivering what it did in the past.

CHALLENGE #1

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NEWSPAPER-SUPPORTED GAMES IN 2016 FAILED TO HELP RATINGS.Compared to the previous year, ratings for newspaper-supported games were…

-2% IN BALTIMORE

FLAT IN WASHINGTON, DC

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NEWSPAPER ADVERTISING – THE WEAK LINK.MASN’s media buy in 2016 was successful despite weak performance of newspaper advertising. Newspaper receives a solid 10% of the advertising budget. Yet it represents less than 10% of households in Baltimore and less than 14% in Washington, DC. Circulation is at all time lows.

Baltimore DMABaltimore SunWashington Post

Washington DMAWashington PostBaltimore Sun

2016

2016

2013

2013

DailyCirc Pen%

111,215 9.7%29,973 2.6%

DailyCirc Pen%

344,150 13.5%141 0.0%

DailyCirc Pen%

154,062 13.8%36,368 3.2%

DailyCirc Pen%

432,219 18.0%409 0.0%

SundayCirc Pen%

288,543 25.8%52,303 4.7%

SundayCirc Pen%

629,291 25.8%5,010 0.2%

SundayCirc Pen%

224,530 19.6%44,838 3.9%

SundayCirc Pen%

501,396 19.7%5,321 0.2%

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A CONSIDERATION FOR 2017 IS TO FIND A SOLUTION TO NEWSPAPER ADVERTISING COMMITMENTS. IF THESE MUST CONTINUE, OTHER OPPORTUNITIES INVOLVING SOCIAL/EVENT INITIATIVES WITH PAPERS MAY EXIST.

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The younger M25-34 audience continues to deliver the lowest ratings of any key male segment.

CHALLENGE #2

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DESPITE SUCCESSFUL RATINGS AMONG PRIMARY AND SECONDARY DEMOS, THE YOUNGER M25-34 SEGMENT REMAINS MOST ELUSIVE IN BALTIMORE.MASN viewership for the younger M25-34 age segment continues to erode year over year. Even primetime viewing as a whole struggles to capture this younger audience. Interestingly, MASN continues to outperform Baltimore primetime conversion percentages.

2016 6.5 6.0 92% 1.6 25% 47% 17%

BALT

OTHER TV INPRIMETIME

HH(Households)

M25+(Men 25+)

M25+(as % of HH)

M25-34(Men 25-34)

M25-34(as % of HH)

M25+(as % of HH)

M25-34(as % of HH)

2015 4.9 4.4 90% 2.1 43% 60% 27%

2014 5.0 4.8 96% 2.7 54% 53% 13%

2013 5.3 5.3 100% 3.6 68% 57% 23%

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IN WASHINGTON, MASN VIEWERSHIP AMONG THE YOUNGER M25-34 ACTUALLY GREW IN 2016 (FOLLOWING A LARGE DECLINE IN 2015).As is the case in Baltimore, MASN continues to outperform Washington, DC primetime conversion percentages.

2016 2.5 2.2 88% 1.2 48% 52% 22%

WASH

OTHER TV INPRIMETIME

HH(Households)

M25+(Men 25+)

M25+(as % of HH)

M25-34(Men 25-34)

M25-34(as % of HH)

M25+(as % of HH)

M25-34(as % of HH)

2015 2.1 1.8 86% 0.6 29% 48% 24%

2014 1.7 1.8 106% 1.3 76% 52% 26%

2013 2.5 2.1 84% 1.5 60% 46% 19%

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SHOULD MORE MEDIA DOLLARS BE ALLOCATED TO M25-34 VIEWERS?Although the ratings analysis shows that Men 25-34 respond to ad-supported games, it is cost-prohibitive to single out this demo when buying traditional media.

In fact, in looking at a Cost Per Thousand (CPM) analysis (e.g., the media cost per 1,000 impressions), advertising solely to the M25-34 audience is five times more expensive than buying the M25+ audience demo.

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THE RESULTING EFFECT OF TARGETING MEDIA TOWARD THE YOUNGER M25-34 (SOLELY) AS OPPOSED TO THE PRIMARY M25+ AUDIENCE IS DAMAGING.

BALTIMORE R/F M25+ R/F M25-34

Television 82% / 20.0 62% / 6.7

Radio 89% / 28.7 67% / 9.6

WASHINGTON, DC R/F M25+ R/F M25-34

Television 79% / 13.6 59% / 4.5

Radio 70% / 36.3 53% / 12.1

R/F Much Higher

R/F Much Lower

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TRADITIONAL MEDIA CAN ONLY PENETRATE THE M25-34 AUDIENCE SO MUCH. BEYOND THAT, SOCIAL MEDIA AFFORDS THE OPPORTUNITY TO REACH THE YOUNGER DEMOGRAPHIC.

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SOCIAL MEDIA DELIVERSA YOUNGER AUDIENCE.

Facebook has more than 229 million active users in the U.S. 30% of users are young adults age 25-34 – the most popular age range. On Facebook, MASN reaches 200,000+ fans age 18-34.

Social media enables MASN to ‘broadcast’ sharable/viral content to more than 710,000 Orioles and Nationals fans, many of whom skew younger.

On Twitter, 65% of active users are age 18-25. For MASN Orioles followers, it’s 64%, and for MASN Nationals followers, it’s 54%.

On Instagram, 54% of MASN Orioles followers fall within the younger demographic. For MASN Nationals followers, it’s 50%.

On Snapchat, 60% of users are under the age of 35. (37% = 18-24. 26% = 25-34.)

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IN 2016, MASN’S SOCIAL CHANNELS PRODUCED 113 MILLION IMPRESSIONS AMONG BALTIMORE FANS AND 67 MILLION AMONG NATIONALS FANS.

More and more fans follow MASN every season, with some channels growing at a rate faster than that of RSN’s in larger markets.

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FOR 2017, AN OPPORTUNITY EXISTS TO INCREASE THE FREQUENCY OF TUNE-IN ADS VIA SOCIAL MEDIA – AND LOOK FOR RATINGS INCREASES AMONG THE YOUNGER 18-34 AUDIENCE SEGMENT AS A RESULT.

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ALSO FOR CONSIDERATION IN 2017:PROMOTE ONLY WEEKNIGHT GAMES IN BALTIMORE – EXCLUDE WEEKEND GAMES.

M25+ M25-34 HH

Mon-Fri 6.5 1.8 7.0

Sat-Sun 5.0 1.2 5.4

Sat Only 4.4 1.1 5.0

2016

In 2016, ratings for weeknight games outperformed weekend games across all 3 audience demos in Baltimore (+30% among primary audience of M25+).

Saturday games carried the lowest ratings.

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CONTINUED OPPORTUNITIES TO INCREASE RATINGS IN 2017 COMES WITH ONGOING PROMOTION OF MASN’S MOBILE/TEXT ALERTS.MASN alerts, received by fans on their smartphones via text, have an immediate ratings impact during games…

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MASN ORIOLES MOBILE/TEXT ALERT EXAMPLES

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MASN ALERT: Two on with 1 out for Davis in 1st on MASN.

MASN ALERT: Jones bloops RBI single. Hardy scores for 1-0 O’s lead in 2nd. Bundy will work with lead on MASN.

MASN ALERT: Alvarez rockets 2-run homer onto Eutaw Street for 3-0 lead. See If O’s can take series opener against Yankees on MASN.

MASN ALERT: Trumbo cracks MLB-leading 34th home run. See if O’s can complete comeback against Giants on MASN2.

MASN ALERT: Schoop delivers go-ahead three-run homer to give O’s 8-7 lead over Giants in 9th! See if Birds can take series on MASN2.

MASN ALERT:Davis blasts 2-run homer to right-center. Trumbo follows with solo shot.

MASN ALERT:Jones, Kim notch RBIs cut O’s deficit to 4. See if Birds can rally past Giants on MASN2.

MASN ALERT:O’s have runner on for Rickard in 9th. See if the rookie can break 6-6 tie for late lead on MASN.

MASN ALERT:Davis crushes 3-R homer for 9-6 lead in 9th. O’s 3 outs away from win over Red Sox on MASN.

DATE: Friday, 9/2 (early inning scoring example) RTG BEFORE: 3.74 HH BEFORE: 41,000

DATE: Sunday, 8/14 (comeback example) RTG BEFORE: 4.08 HH BEFORE: 45,000

DATE: Monday, 4/11 (9th inning comeback) RTG BEFORE: 6.99 HH BEFORE: 77,000

RTG BEFORE: 5.32 HH BEFORE: 59,000

RTG BEFORE: 7.68 HH AFTER: 84,000

RTG AFTER: 7.08 HH AFTER: 78,000





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MASN NATIONALS MOBILE/TEXT ALERT EXAMPLES

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MASN ALERT: Nats take 2-1 lead with Murphy RBI. Scherzer back on mound in 7th with 13 K’s vs. Tigers. Catch all the strikeouts on MASN!

MASN ALERT: Go-ahead run 90 feet away for Nats in 7th. Can Rendon drive him in? Tune in to MASN.

MASN ALERT: Espinosa smacks solo homer to extend Nats’ lead to 3-1. Watch Scherzer add to his 15 K’s in the 8th on MASN.

MASN ALERT: Ramos’ RBI single drives in Harper. We’re tied 3-3 heading to extras. Don’t miss a Nationals walk-off win on MASN.

MASN ALERT: Leadoff man aboard for Nats in 11th. Can they win in walk-off style? Watch Harper’s at-bat live on MASN.

MASN ALERT: Revere drives home Taylor to tie game at 4-4. Nats with runners on corners with one out on MASN.

MASN ALERT: Scherzer with career-high and franchise-record 18 K’s. Watch him go for MLB record live on MASN!

MASN ALERT:Murphy blasts 2-run homer to right to cut Tigers’ lead to 4-3 in 6th. Nats rallying on MASN.

MASN ALERT:Runners on the corners with no outs in 7th. Catch the comeback on MASN.

MASN ALERT:Heading to the bottom of the 9th in 4-4 tie. Tune to MASN for a Nationals walk-off.

MASN ALERT:Robinson’s pinch-hit homer gives Nats 5-4 walk-off win over Tigers.

DATE: Monday, 5/9 (3 alerts within 20 minutes) RTG BEFORE: 1.89 HH BEFORE: 46,000

DATE: Wednesday, 5/11 (Scherzer 20K game) RTG BEFORE: 2.97 HH BEFORE: 73,000

DATE: Wednesday, 6/15 (extra innings) RTG BEFORE: 2.77 HH BEFORE: 68,000





RTG AFTER: 4.28 HH AFTER: 104,000 RTG AFTER: 4.20 HH AFTER: 103,000




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2017 MEDIA STRATEGY RECOMMENDATIONSMaintain boosted Reach/Frequency levels in TV & Radio, with help from the 15-second TV spots to promote games 2 and 3. Advertise every series, every game.

Tweak online ad buy slightly – keeping with combination of ad networks/exchanges and top-performing websites relevant to each market. Consider increasing online video.

Find a solution to newspaper advertising commitments. If these must continue, move dollars to social/event initiatives with papers.

Increase ad exposure among the younger M25-34 audience – but with a social media emphasis.

Consider shifting focus to promotion of weeknight games only in Baltimore (no weekend game advertising).

Continue to promote mobile/text alert sign-ups consistently throughout the season.

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HOUSEHOLD (HH) RATINGS: A percentage of total households or population owning a television(s) who are tuned to a particular program or station at a specific time. In Baltimore (Nielsen market ranking 26), a HH rating equals 11,000 households. In Washington, DC, (Nielsen market ranking 7), a HH rating equals 25,000 households.

HOUSEHOLDS: The total number of households owning a television(s) within a media market. In the Baltimore DMA, there are 1.1 million television households. In the Washington DMA there are 2.5 million television households.

DEMO RATINGS: Audience measurement based on various characteristics such as age, gender, etc. A 1 demo rating equals 1% of the specific audience in question. Examples of demo rating segments: Men 25+, Men 25-34, Adults 18-34.

GRPS: Gross (total) Ratings Points for a media schedule.

IMPRESSIONS: Total number of times the target audience is exposed to an advertising message.

IMPRESSIONS/SERIES (IMPS/SERIES): Average number of people reached by advertising over length of a three (or four) game baseball series

GLOSSARY OF KEY TERMS

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SOV (SHARE OF VOICE): A way of measuring an amount of advertising presence or concentration for a brand or product.

REACH (R): Refers to the total number of different people exposed, at least once, to a MASN commercial during a given period.

FREQUENCY (F): The average number of times a person is exposed to a MASN commercial during a given period.

R&F EXAMPLE: A R&F of 87.9/15.5 means that 87.9% of the target audience (in our case Men 25+) saw a MASN commercial 15.5 times over the life of the media buy.

RECENCY: For MASN, this is advertising placed “en force” as close as possible to a game’s broadcast time.

CPP (Cost Per Point): Refers to costs to purchase a single rating point in either Television or Radio.

A NOTE ON MARKET CPPS AND COST PER SPOT: The Washington, DC market (4.7 million Adults 18+) is significantly more expensive than the Baltimore market (1.9 million Adults 18+). As much as 66% to 100% more costly.

GLOSSARY OF KEY TERMS

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MASN 2016-17 Media Presentation_HiRes Single Pages