A25-54 IntelBETN & ZALES

REACHING THE CUSTOMERS YOU WANT, TO PROVIDE THE TREASURES THEY LOVE

AFRICAN AMERICANS SPEND

ONE TRILLIONDOLLARS ANNUALLY

Source: Selig Center’s Multi-Cultural Economy 2013 based on the University of Georgia’s Terry College of Business Economic Growth AA Buying statistics. African Americans Revealed Lifestyles & Leisure

Activities Segmentation Study analysis of BET TV & Digital Buying Power category spending (statistical model adopts Selig Center’s Multi-Cultural Economy 2013 Economic Growth calculations); based on UGA

Terry College of Business AA Buying trending data points.

BETN VIEWERS SPEND

$600 BILLIONDOLLARS ANNUALLY

2

3

BETN AUDIENCE IF OUR TV VIEWERS / ONLINE USERS STOPPED PURCHASING…

THE IMPACT…[TOTAL AMOUNT SPENT –FINE JEWELRY*]

$2,227,326,000/YEAR

$185MMONTHLY

$43MWEEKLY

$6MDAILY

Source: 2015 Doublebase GfK MRI weighted to Population (000) - Base: Adults 18+. *Total amount spent on Fine Jewelry in the last 12 months projected annually. BETN Media= BET + Centric viewing within last 30 days, BET Online/Mobile users or BET VOD viewers.

4

AFRICAN AMERICAN ADULTS 25-54…

▪Spend nearly $1.4 Billion on fine jewelry a year

▪Are 133% more likely to buy from Zales

▪Nearly 4 million buy jewelry annually

▪Represent 344,000 annual Zales customers

▪2.8 million intend to get engaged in the next year

▪2.3 million bought jewelry for themselves

▪1.7 million are engaged

▪1.5 million bought gold jewelry

▪1.3 million bought jewelry as a gift

▪1.1 million bought sterling jewelry

▪959,000 bought diamond jewelry

▪248,000 bought platinum jewelry

▪Bought over 6.5 million pieces of jewelry, including:

▪Earrings 2.1 million

▪Bracelet 1.5 million

▪Necklace 1.5 million

▪Other Ring 788,000

▪Engagement Ring 432,000

▪Brooch/Pin 163,000

Source: 2015 Doublebase GfK MRI weighted to Population (000) - Base: A25-54

5

BET ADULT 25-54…▪ Spend nearly $103 million on fine jewelry a month

▪ Are 129% more likely to buy from Zales

▪ 60% more likely to buy gold jewelry

▪ 38% more likely to buy jewelry for themselves

▪ 33% more likely to buy diamonds

▪ 30% more likely to have bought jewelry in the last 12 months

▪ 23% more likely to buy platinum jewelry

▪ Types of jewelry purchased:

▪ Brooch/Pin Index 221

▪ Bracelet Index 155

▪ Engagement Ring Index 148

▪ Earrings Index 138

▪ Necklace Index 124

Source: 2015 Doublebase GfK MRI weighted to Population (000) - Base: A25-54 BET& Centric = Any viewing within last 30 days,

▪ Spend nearly $25 million on fine jewelry a month

▪ Are 153% more likely to buy from Zales

▪ 52% more likely to buy jewelry for themselves

▪ 25% more likely to have bought jewelry in the last 12 months

▪ Types of jewelry purchased:

▪ Bracelet Index 157

▪ Earrings Index 147

▪ Engagement Ring Index 140

▪ Brooch/Pin Index 123

▪ Necklace Index 115

CENTRIC ADULT 25-54…

6

ZALES IS THE NUMBER ONE PLACEBETN VIEWERS BUY JEWELRY

Source: 2015 Doublebase GfK MRI weighted to Population (000) - Base: Women 18-49. How to read: BETN viewers are 51% more likely to purchase sound games than the general population. BETN Media= BET + Centric viewing within last 30 days, BET Online/Mobile users or BET VOD viewers.

FINE JEWELRY - WHERE BOUGHT:BETN ADULTS 25-54

(Index to U.S. Population)

BETN Viewers A25-54 are far more likely to purchase jewelry at Zales than the general market.

The propensity for buying from Zales makes BETN ideal population segment.

221

194

154137

127 120103 103

253233 229

80

CENTRIC AFRICAN

AMERICAN

BET NON-AA

7

BETN VIEWERS ARE MORE LIKELY TO BUY FROM AT ZALESCentric viewers are 153% & BET viewers are 129% more likely to buy from Zales

than the general A25-54 market.

Source: 2015 Doublebase GfK MRI weighted to Population (000) - Base: Adults 18-49. How to read: Centric viewers are 153% more likely to buy from Zales

FINE JEWELRY – WHERE BOUGHT: ZALESAdults 25-54

(Index to U.S. Population)

8

296

253

229 225212

197

153143 141 141

133

TV One Centric BET OWN OXYG VH1 Wetv MTV Bravo Lifetime MTV 2

Centric ranks second, and BET third among its competition in cable for likelihood of buying from Zales for A25-54. Centric viewers

are 153% more likely than the general population to buy from Zales

Source: 2015 Doublebase GfK MRI weighted to Population (000) – Base: Adults 25-54 Centric & BET = Any Viewing in the past 30 days. .

FINE JEWELRY - WHERE BOUGHT: ZALES BETN ADULTS 25-54

(Index to U.S. Population)

BETN VIEWERS ARE SOME OF THEMOST LIKELY ZALES CUSTOMERS

9

BETN Media out-performs broadcast, cable and digital competitors in reaching most of Zales’ customer base.

BETN DELIVERS A MAJORITY OF ZALES CUSTOMERS

Source: 2015 Gfk MRI Doublebase. Base: AA Adults 25-54 BET = comprised of weekly viewers of BET. Ad-Supported Cable = Adult targeted in 60MM+ homes. Broadcast = Broadcast Primetime Cume. BET.COM users consist of network weekly and represents Top 50% of online visitors (6+ hours/weekly, or who frequently visit s a TV Network/TV Program online destination). Sports = visited AOL Sporting News, CBSSports.com, ESPN.com, foxsports.com, MLB.com, NASCAR.com, NBA.com, NBC Sports, or NFL.com in past month. News & Entertainment = Visited Yahoo! Movies, Yahoo! News, HuffingtonPost.com, USAToday.com, CBSNews.com, or MTV.com in past month. *How to read: BET Nets viewers account for 64% AA Adults 25-54 who shopped at Zales

25%

AD SUPPORTED CABLE(NON-BET Viewing)

25%

BROADCAST(NON-BET Viewing)

64%*

BET NETS

29%

NEWS & ENTERTAINMENT(NON-BET Users)

12%

SPORTS(NON-BET Users)

42%

BET.COM

% Z

AL

ES

CU

ST

OM

ER

SA

A A

DU

LT

S 2

5-5

4

Key Ingredients Of SuccessfulBuys Come Down To Four P’s…

10

Planning = efficient targeting to reach the right audience1Placement = utilizing the right media environment for advertisers2Productivity = creating effective schedules to give advertisers exposureto the right audiences3Participation = keeping viewer’s engagement heightened (sparking a call to action and triggering purchase intent)4

NETWORK ZALES DOLLARS SPENT%A25-54

DUPLICATION

TBSC $668,837 68%

FX $1,298,705 63%

AMC $1,100,677 62%

TNT $1,314,321 62%

SPIKE $686,266 57%

USA $986,982 54%

CMDY $1,177,108 54%

SYFY $570,494 51%

LIF $1,143,146 49%

HIST $1,378,145 49%

AEN $1,475,661 48%

TLC $501,567 47%

DISC $1,454,081 45%

NGC $226,492 39%

TRU $427,236 35%

IFC $151,545 30%

LMN $211,723 29%

SCI $161,912 28%

H2 $308,721 26%

BET $370,320 32%

CNTRC - 14%

By adding BETN, Zales will be able to reach a segment of their target A25-54 audience previously missed. Below is the total day

duplication between the networks included in Zales’ cable buy:

INCREASE ZALES’ REACH BY ADDING BETN

Source: Nielsen AdViews analysis of Total Day (M-SU/6A-6A) Spending per each cable network during ’14/15 STD (9/29/14 – 09/27/15). Total Day % Duplication data Nielsen NPower Reach & Frequency duplication report; % both duplication, each network crossed with all other ad-supported, English language dominant adult targeted cable networks in advertiser’s ad buy, 6-minute qualifier, (09/28/15-12/27/15) *How to read: 68% of the A25-54 viewers who watched TBSC also watched other networks within advertiser’s ad campaign. 11

Networks in this section were bought on placement (media

environment) but, the buy failed to deliver productivity…

$14.4 million of the campaign bought networks with a

higher % duplication than BETN. This plan reached the

same viewers repeatedly, and under-utilized BETN’s

largely unduplicated audience.

Networks at the top of this table have the highest %

duplication lacking a unique audience delivery. In fact,

several have heavy duplication within Zales’ ad buy. Are

you efficiently reaching the viewers you want?

Not all total day spots are equal! BET NETS deliver the

lowest % duplication among A25-54 compared to these

networks within Zales’ media plan.

What does this mean? BET NETS are uniquely targeted

niche destinations of viewers that can’t be found anywhere

else. Increasing BETN’s share on this media plan will

attract a diversified, heavily concentrated and efficient

target with a lot less waste.