The Growth of Advanced TV Advertising

•

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How are advertisers targeting audiences over demographics through science and software? How is the technology closing the loop for advertisers and TV tune-in conversion? What are some of the cross-platform targeting opportunities, and how does Advanced TV allow experts to test promo creative post-launch to inform in-season promotion? Laurel Bernard (President, Entertainment) shares some answers and explains how Advanced TV is changing the television advertising landscape.

Marketing

2
Section
Viewership remains massive
2016
2015
2014
4:56
4:59
5:03 1:51
1:51
1:52
:47
:55
:59 2:32
1:15
1:02
:09 :12 :07
:08 :14 :11
:07 :13 :17
:21
:23
:26
Viewing Minutes Across Mediums in Q4
Source: Nielsen Total Audience Report – Q4 2016

3
But it is shifting…
01
Section
Source: All metrics reports in Nielsen, Live +3
5 Broadcast
Networks
Top 20 Cable
Networks
Middle Rated
Cable Networks
Emerging Cable Networks
(rating 0.1 or less)
Avg.HHRating
Monthly Rating Comparison 2011 vs. 2016 May 2011
May 2016
Average Rating
-11%-23%
-23%
+21% Average Rating

4
…resulting in reach & frequency imbalance
01
Section
1991-1992 2001-2002 2015-2016
Source: Nielsen, Kantar Media Intelligence, and
VAMOS. All metrics reported in unequivalized
Nielsen Live commercial measures.
100 GRPs = 15 Ads 25 Ads 47 Ads

5
Advanced TV Advertising
follows the DATA…
Results-Driven Targeting

6
Connect Advertisers to Audiences on Television
Target Placement KPI
Traditional Women 18-49
• High-Rated
Primetime
• Morning News
Cheapest Overall CPM
Advanced TV
Women 18-49 who:
• Go to yoga
• Go to Starbucks
• Watch Real
Housewives
Across Linear TV Business Outcomes

7
Data Optimized Linear TV Addressable TV Advertising
Digital DSPs
(Demand-Side Platform)
Who Are The Players?
The Advanced TV advertising landscape is expanding
Media Owners
Aggregators
}

8
The Goal is to make Television PERFORM
02
Section
Digital
Linear
TV
Source: Credit Suisse analyst report “The
Future of Advertising”, O. Sheikh et. al.

12
Adding digital to TV adds a
60% kicker effect to ROI
Source: Analytic Partners, 2016; Analysis based on over 3,200 campaigns from 2010-
2015. Digital includes video in display advertising on desktop and mobile devices. Results
are indexed to TV
+19% +20%
+60%
Print + TV Radio + TV Digital + TVTV

13
Continuity Optimization
• Target those audiences who saw it in previous weeks
Creative Optimization
• See which ads drove the most viewership to the premiere for learnings as
you promote the rest of the season and returning seasons
Additional Benefits of Timely Feedback

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The Growth of Advanced TV Advertising

1. The Growth of Advanced TV Advertising

2. 2 Section Viewership remains massive 2016 2015 2014 4:56 4:59 5:03 1:51 1:51 1:52 :47 :55 :59 2:32 1:15 1:02 :09 :12 :07 :08 :14 :11 :07 :13 :17 :21 :23 :26 Viewing Minutes Across Mediums in Q4 Source: Nielsen Total Audience Report – Q4 2016

3. 3 But it is shifting… 01 Section Source: All metrics reports in Nielsen, Live +3 5 Broadcast Networks Top 20 Cable Networks Middle Rated Cable Networks Emerging Cable Networks (rating 0.1 or less) Avg.HHRating Monthly Rating Comparison 2011 vs. 2016 May 2011 May 2016 Average Rating -11%-23% -23% +21% Average Rating

4. 4 …resulting in reach & frequency imbalance 01 Section 1991-1992 2001-2002 2015-2016 Source: Nielsen, Kantar Media Intelligence, and VAMOS. All metrics reported in unequivalized Nielsen Live commercial measures. 100 GRPs = 15 Ads 25 Ads 47 Ads

5. 5 Advanced TV Advertising follows the DATA… Results-Driven Targeting

6. 6 Connect Advertisers to Audiences on Television Target Placement KPI Traditional Women 18-49 • High-Rated Primetime • Morning News Cheapest Overall CPM Advanced TV Women 18-49 who: • Go to yoga • Go to Starbucks • Watch Real Housewives Across Linear TV Business Outcomes

7. 7 Data Optimized Linear TV Addressable TV Advertising Digital DSPs (Demand-Side Platform) Who Are The Players? The Advanced TV advertising landscape is expanding Media Owners Aggregators }

8. 8 The Goal is to make Television PERFORM 02 Section Digital Linear TV Source: Credit Suisse analyst report “The Future of Advertising”, O. Sheikh et. al.

9. 9 Source: Credit Suisse analyst report “The Future of Advertising”, O. Sheikh et. al. Future of Marketing Mix02 Section TV CTA - $14 bn TV Brand Building $55 bn TV Brand Building $98 bn TV CTA - $44 bn

10. 10 Future of Marketing Mix02 Section TV CTA - $14 bn TV Brand Building $55 bn TV Brand Building $98 bn TV CTA - $44 bn TV Brand Building $98 bn TV CTA - $44 bn Source: Credit Suisse analyst report “The Future of Advertising”, O. Sheikh et. al.

11. 11 Future of Marketing Mix02 Section Digital CTA - $54 bn Digital Brand Building $6 bn TV Brand Building $98 bn TV CTA - $44 bn Digital CTA - $218 bn Digital Brand Building $35 bn Source: Credit Suisse analyst report “The Future of Advertising”, O. Sheikh et. al.

12. 12 Adding digital to TV adds a 60% kicker effect to ROI Source: Analytic Partners, 2016; Analysis based on over 3,200 campaigns from 2010- 2015. Digital includes video in display advertising on desktop and mobile devices. Results are indexed to TV +19% +20% +60% Print + TV Radio + TV Digital + TVTV

13. 13 Continuity Optimization • Target those audiences who saw it in previous weeks Creative Optimization • See which ads drove the most viewership to the premiere for learnings as you promote the rest of the season and returning seasons Additional Benefits of Timely Feedback

14. Thank You!

The Growth of Advanced TV Advertising

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