IBS:

Making TV-Web Convergence Work --

Today

TVB Research Conference 2000

New York City

Jim Singer

Senior Vice President, Marketing

Internet Broadcasting Systems, Inc.

Broadcasters building a new network of

dominant local web channels

Internet Broadcasting SystemsInternet Broadcasting Systems

Web Channel

Video story

StationPromotio

n

“Convergence” advertising

Verticals/ Ecommerc

e

“Convergence” partnersMedia

Partners

ConvergencePartners

Breaking Local News

StationPromotio

n

Not Portals•News, Entertainment, Services

•Well programmed and promoted

•Produced by in-station news and sales teams

The most successful, most visited TV sites

on the planet

Web Channels

The New Network 16 of Top 25 -- 29 of Top 50 US Markets -- 50 Markets and

Growing40% US HH coverage (plus 90+% Canada)

2000 Launches to Date• Detroit WDIV • Sacramento KCRA• Boston WCVB• Houston KPRC• Miami WPLG• Pittsburgh WTAE• Cincinnati WLTW• Orlando WESH• Kansas City KMBC• West Palm Beach WPBF• Winnipeg, Halifax, Montreal - Global • Milwaukee WISN• Greenville WYFF• New Orleans WDSU• Albuquerque KOAT• Jacksonville WJXT• Oklahoma City KOCO• Greensboro WXII• Miami WPLG• Orlando WKMG• San Antonio KSAT (next week)• Honolulu KITV (next week)• Indianapolis WRTV (next week)

The New Network 16 of Top 25 -- 29 of Top 50 US Markets -- 50 Markets and

Growing40% US HH coverage (plus 90+% Canada)

August 2000: IBS Network

1.74 MM Unique Users34.7 MM Page Views

(source: Nielsen NetRatings)

NIELSEN NEWS & INFORMATION

MSNBC.COMCNET.COMCNN.COMWEATHER.COMZDNET.COMABCNEWS.COMWASHINGTONPOST.COMUSATODAY.COMNYTIMES.COMDISCOVERY.COMLATIMES.COMFOXNEWS.COMIBS NETWORKBBC.COMWALLSTREETJOURNAL.COMTHESTREET.COMACCUWEATHER.COMSALON.COMSFGATE.COMBOSTON.COMCBSNEWS.COMWIRED.COMDALLASNEWS.COMCHICAGOTRIBUNE.COM

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• National Press Club awards

Channel4000 Minneapolis

“Best Journalism Site” 1998 1999

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Day after the Wilkinsburg shootings(February 2000)

“an impressive effort by WTAE-TV’s new Web site, ThePittsburghChannel.com,

which had news of the gunman’s capture three minutes after it happened”

Breaking News Excellence

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Making Convergence Happen

•Convergence Content•Convergence Sales

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Convergence Content – The best of both worlds

Television- Broadcast- Tells a

story:- emotional- compelling

The Web- Narrowcast- Drills deep:

- personal- interactive

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The “virtuous cycle” of Web/TV cross-promotion

• Creative Newscast Integration(NEVER “For more information…”)• Awareness Promos

•Creative use ofStory mentionsVideo teases Banners and Tiles E-mail

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Convergence Advertising – The best of both worlds

Television- Builds

Awareness and Interest

The Web- Drives Trial

and Usage

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• Age 39• Married• Either Male or female (evenly split)• High household income • College Degree• One or two children• Owns house• High propensity to buy big ticket items

(Japanese cars, camcorders, refrigerators)Source: Media Audit results for 28-city IBS market rollup, Summer 2000

Current IBS WebChannel Users present very desirable characteristics to advertisers“Typical” IBS Local Web Channel User

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Local Advertising/Sponsorships: Integrated, Targeted, Responsive

• Jupiter Research – local online revenue of $ 2.7 B by 2003 (24% of total online spending)

Verticals – EmploymentVerticals – Employment

• HotJobs – long-term, seven figure deal

• Plus, featured local employers

(TV and Web together)• NEW TV REVENUE!

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Verticals - AutomotiveVerticals - Automotive

• Rolled out late September

• Local dealer packages sold in almost all markets

• Merges Web’s interactivity with TV station’s reach and power

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Driving Back to TV – Convergence Advertising

• New TV revenue• 100% to stations• Selected clients:

Pacific Bell CBS Marketwatch Virgin Records Lowe’s Union Station Carrier Dealer Ass’n

Los Angeles Police

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Lessons Learned from the convergence battlefield

Build a new brand, NOT just a promotional platform for your station

Don’t cut corners – lack of effort WILL be noticed

Leverage the strengths of each medium, NOT just “TV on the Web” or another “local portal”

CREATIVITY and EXPERIENCE win – in editorial AND in revenue generation