FAST FACTS WHAT YOU NEED TO KNOW ABOUT TV VIEWING IN 2018 FAST FACTS - WHAT YOU NEED TO KNOW ABOUT TV VIEWING IN 2018

Especially for advertisers and agencies, here is an up to date summary of the NZ Television market. Find out all about how New Zealanders are consuming TV - how many viewers, who they are, how they watch and how long they watch for. The TV market is evolving- check out the recent facts. THE NEW ZEALAND TV MARKETPLACE THE NEW ZEALAND TV MARKETPLACE

New Zealanders are embracing the range of ways to consume TV content.

Access to a wide range of screens and Video On Demand platforms offer audiences more flexibility to view professionally produced content where, when and how they want.

However, watching live broadcast television – on the biggest screen - continues to be the most popular method of viewing by a significant margin. TV DELIVERS

• Mass audiences. TV is the best medium for long-term brand building, and driving sales • Every day TV reaches 2.4 million New Zealanders, and 3.3 million in a typical week • 95% of New Zealand homes (1,725,000) have a television set

• Engaged audiences. With quality professionally produced content on offer, New Zealanders spend 2 hours 21 minutes per day on average watching Linear television

• Unbeatable viewability. 89% of all linear television content is viewed live, on the large screen. And TV advertising is 100% visible, 100% of the time, driving more overall attention

• A brand safe and effective environment. There is no chance of rubbing shoulders with inappropriate content, with TV people are choosing to watch a programme, they are relaxed, have the time to watch ads – and indeed they expect them

Sources: Nielsen Television Audience Measurement, Nielsen Consumer and Media Insights, Professor Karen Nelson-Field Benchmark Series - Viewability THE IMPORTANCE OF ATTENTION IN AN AVERAGE AD SECOND, TV SCORES MORE ACTIVE ATTENTION THAN OTHER VIDEO PLATFORMS

TV YOUTUBE FACEBOOK

ACTIVE VIEWING 58% 31% 4%

PASSIVE VIEWING 40% 37% 94%

NON-VIEWING 2% 32% 2%

Source: Professor Karen Nelson-Field Benchmark Series 2017: Viewability. Find more information about this study here THE NEW ZEALAND TV AUDIENCE TV REACHES KEY DEMOGRAPHIC GROUPS THE NEW ZEALAND LINEAR TV AUDIENCE

• TV reaches 56% of New Zealanders each day and 75% within a week

• 25-54 year-olds make up 40% of the average audience • 1 million of this core demographic are reached by TV in a typical day • They spend 2 hours 10 minutes watching Linear TV per day

• 8 out of 10 Household Shoppers with Children can be reached by TV in a typical week • And this group watch 2 hours and 19 minutes of Linear TV per day

Source: Nielsen Television Audience Measurement TV DELIVERS MASS AUDIENCES HOW MANY NEW ZEALANDERS WATCH LINE AR TV?

Every day 2.4M (56%)

Every week 3.3M (75%)

Every month 3.8M (82%)

Source: Nielsen Television Audience Measurement (Base: All People 5+, Consolidated, Jan-Dec 2018, All Day, Average Cumulative Reach (daily/weekly/monthly)) LINEAR TV IS WATCHED BY ALL AGE GROUPS PROFILE OF TV VIEWERS (% IN EACH AGE/GENDER DEMOGRAPHIC)

5-24 25-39 40-54 55-64 65-74 75+

13.6 11.4 15.5

16.5 19.3 14.2

18.9 18.9 18.9

24.4 23.5 25.1

15.1 14.4 15.7

11.5 12.6 10.6

TOTAL MALES FEMALES

Source: Nielsen Television Audience Measurement (Base: All People 5+, Consolidated, Jan-Dec 2018, All Day) HOW MANY PEOPLE DOES LINEAR TV REACH IN A DAY? KEY DEMOGRAPHICS - DETAIL OF ALL DAY REACH

Main HH Shopper All People 5+ All People 25-54 All Day Audience with Child

Average Daily Reach 2,471,600 1,051,700 301,000

Average Daily Reach (%) 56.3 56.2 57.4

Source: Nielsen Television Audience Measurement (Base: All People 5+, 25-54, Main HH with child, Consolidated, All Day, Jan-Dec 2018, Average Daily Cume Reach HOW MANY PEOPLE DOES LINEAR TV REACH IN A WEEK? KEY DEMOGRAPHICS - D E TA I L O F W E E K LY R EACH

Main HH Shopper All People 5+ All People 25-54 Weekly Audience with Child Average Weekly Reach 3,269,000 1,414,000 417,000

Average Weekly Reach (%) 74.5 75.6 79.5

Source: Nielsen Television Audience Measurement (Base: All People 5+, 25-54, Main HH with child, Consolidated, All Day, Jan-Dec 2018, Average Weekly Cume Reach HOW LONG DO THEY SPEND WATCHING LINEAR TV? TIME SPENT VIEWING PER DAY ( h h : m m )

Main HH All People All People Shopper with 5+ 25-54 Child

2:21 2:10 2:19

Majority of time is spent viewing between 1500 and 2300*

Source: Nielsen Television Audience Measurement (Base: All People 5+, Consolidated, Jan-Dec 2018, All Day) This number includes FTA viewing within Sky Homes *Includes live viewing and playback through the TV set at the time it is watched within 7 days. Time bands use the industry standard 26-hour TV clock: 0200-2600 HOW WE WATCH TV HOW WE WATCH TV

• 89% of all broadcast TV viewing is live, meaning the majority of ads on TV are non- skippable.

• An average New Zealand home has 7.3 screens – more ways than ever to watch video content.

• While New Zealanders do have choice, significantly more time is spent viewing Live TV on the TV Set than watching TV/Video online on other screens.

• Of the most popular programmes among 18-54 year-olds in 2018, over half were local content (sport, reality/drama; documentaries and news). The Royal Wedding was the third most popular, while the majority of the remaining programmes were movies.

Sources: Nielsen Television Audience Measurement, Nielsen Consumer and Media Insights TELEVISION IS PREDOMINANTLY VIEWED LIVE WHILE HALF OF NZ HOUSEHOLDS HAVE A PVR, MOST VIEWING IS LIVE

11%

89%

Live Timeshifted

Source: Nielsen Television Audience Measurement (Base: All People 5+, Consolidated, Jan-Dec 2018, All Day, % of Playback viewing) THE MAJORITY OF TIMESHIFTING IS DONE WITHIN 24 HOURS OF BROADCAST…. SOAP, MINI SERIES AND DRAMA ARE THE MOST POPULAR GENRES, ADDING REACH TO PROGRAMMING IN THESE CATEGORIES ANMANY AVERAGE OPTIONS NEW TO ZEALAND CONSUME HOME TV HAS MOREAN AVERAGE THAN NZ 6 HOME SCREENS HAS MORE THAN 7 SCREENS…

1.7 2.4 1.0 2.1

TV Mobile Tablet Desktop/Laptop

Source: Nielsen Consumer and Media Insights, 10+, Year ending Quarter 4 2018. Base = Main Household Shopper ALMOST EVERY HOUSEHOLD HAS A TV SET (ANY TYPE) …AS WELL AS MANY OTHER SCREENS … COMPARED TO 2017, THERE HAS BEEN AN 18% INCREASE IN HOMES WITH A CONNECTED TV

TV (All) 95%

Smartphone 77%

PC/Laptop 75%

Tablet 45%

Connected TV 34%

Source: Nielsen Consumer and Media Insights, 10+, Year ending Quarter 4 2018. Base = Main Household Shopper MOST TIME SPENT WATCHING LINEAR TV WHILE THERE ARE MANY WAYS TO WATCH TV, MORE TIME IS SPENT WATCHING LINEAR TV ON A TV SET IN A TYPICAL WEEK ( h h : m m )

17:02

05:44

Time spent watching Linear TV on a TV Set Time spent watching any TV/Video online on any device*

Source: Nielsen Television Audience Measurement All People 10+, Consolidated, Jan-Dec 2018, All Day *Source: Nielsen Consumer and Media Insights, 10+, Year ending Quarter 4 2018. Time spent watching TV/video/movies online on: PC/Laptop, Mobile, SmartTV/TV that connects to the internet, Tablet in the last7 days CO-VIEWING TV’S SHARED EXPERIENCE CREATES A STRONG EMOTIONAL CONNECTION WITH AUDIENCES TELEVISION VIEWING IS A SOCIAL ACTIVITY

While we’ve seen many changes in the television landscape, one thing that’s remained the same is that TV still brings in large audiences and television content drives a shared experience.

Humans are naturally social and want to share their experiences, thoughts and feelings. One of the many benefits of television viewing is those watercooler moments that are shared together.

TV fosters emotional connections and nothing entrenches those connections better than conversations with friends or family.

With TV creating such a strong shared experience, it becomes the best possible context for advertisers who also want to create an emotional connection with their audiences. TELEVISION VIEWING IS A SOCIAL ACTIVITY 52% of peak time* viewing is co - viewing (viewing with others)

Solus viewing Co-viewing 48% 52%

Source Nielsen Television Audience Measurement 2018 Peak time = 1800 - 2230 TELEVISION VIEWING IS A SOCIAL ACTIVITY Co- viewing is highest (54%) during the core evening family viewing time of 1930 - 2 1 0 0 .

% of co-viewing by daypart

1930-2100 54%

Peak (1800-2230) 52%

1800-2400 51%

All Day 44%

Source Nielsen Television Audience Measurement 2018 47% of children’s viewing is co- viewing with a n a d u l t

Source Nielsen Television Audience Measurement 2018 TOP PROGRAMMES WHAT WERE THE MOST POPULAR PROGRAMMES IN 2018? TOP 20 PROGRAMMES – L I N E A R T V - ALL PEOPLE 18 - 54

RANK PROGRAMME CHANNEL AUD% NO. OF EPISODES 1 Stan (Doco) Three* 9.1 1 2 Shortland Street TVNZ 2* 9.1 247 3 Royal Wedding Prince Harry & Meghan TVNZ 1* 9.0 2 4 The Block NZ Three* 8.9 49 5 Intl Rugby Bledisloe Cup SKY Sport 1 8.8 1 6 Sunday Special** TVNZ 1* 8.3 1 7 ComGames 2018 Gold Men’s Rugby7s TVNZ 1* 8.1 1 8 Jack Reacher Never Go Back (Movie) TVNZ 2* 8.1 1 9 Moana (Movie) TVNZ 2* 7.8 1 10 Hyundai Country Calendar TVNZ 1* 7.7 38 11 Married At First Sight Three* 7.7 32 12 Dancing With The Stars Three* 7.7 19 13 Police Ten 7 TVNZ 2* 7.5 40 14 Elton John I'm Still Standing (Doco) TVNZ 1* 7.5 1 15 1 News TVNZ 1* 7.4 365 16 Zootopia (Movie) TVNZ 2* 7.4 1 17 The Magnificent Seven Three* 7.1 1 18 CommGames 2018 Gold Women’s Rugby7s TVNZ 1* 6.9 1 19 Harry Potter and the Deathly 2 (Movie) TVNZ 2* 6.8 1 20 John Wick (Movie) TVNZ 2* 6.7 1

Target: All People 18-54 Average combined episodes - 1 January to 31 December 2018; All Day (2am – 2am) TVNZ 1* = TVNZ 1 and TVNZ 1 +1; TVNZ 2* = TVNZ 2 and TVNZ 2 + 1; Three* = Three and Three Plus 1 **Sunday Special on 11 November – a special episode covering the impact of the 2016 Kaikoura earthquake. GLOSSARY KEY TERMS AND DEFINTIONS Term Definition Notes As Live Viewing of recorded television broadcast content that occurs within the same research day (2am-2am) but viewed at a later time than the original broadcast time; for example, pausing a program and then continuing to watch it as a recording

Average Daily Reach The sum of the number of unique viewers who have seen at least one minute of an An individual or household is only counted (000’s or %) event or time band across the day, averaged across a period of time (days). once per day if they have viewed at least one minute of the event or time band

AUD% The average viewing audience for a demographic expressed as a percentage of the = Audience / Universe Estimate relevant Universe Estimate Also known as TARP (Target Audience Rating Point) Audience or AUD (000s) The average number of people (or homes) in a target market who were watching a = sum of people watching each minute of specific event or time band each minute, expressed in absolute figures for that the show or time band / sum of minutes demographic Connected TV A TV set that is connected to the internet, allowing viewers to not only watch Linear or Broadcast TV but also watch Video on Demand etc Consolidated Data: Nielsen’s final ratings incorporating ‘Live’ viewing and viewing of broadcast content Consolidated 7 = 'Live' + 'As Live' + 'Time Consolidated 7 that is played back through the television set at normal speed either within seven Shift to 7' days of original broadcast ('Consolidated 7') Demographic (group) or Basic descriptor of individuals or households using classifications such as age, Target sex, occupation group, education level, household size, etc Linear TV TV received via aerial, satellite or cable is Linear TV i.e. any TV that is not viewed over the internet. Sometimes referred to as Broadcast TV, it can be watched as Live TV or time-shifted as Playback TV Live Viewing of a television program as it is actually broadcast

Main HH Shopper Person aged 18 or older who has primary household shopping responsibilities

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Term Definition Notes Overnight Data Nielsen ratings delivered each morning for the previous research day, incorporating ‘Live’ + ‘As Live’ viewing ‘Live’ viewing and viewing of content that was broadcast yesterday, recorded and played back by 2am (‘As Live’ viewing) Profile% Shows the audience composition of an event or time band by calculating the = Audience of target group of interest / proportion of viewers in the target demographic to the number of viewers in the base Total People Audience target (usually Total People) Reach OR Reach (1 min) OR The sum of the number of unique viewers who have seen at least one minute of an An individual or household is only counted Cumulative (Cume) Reach event or time band across its total duration once if they have viewed at least one minute of the event or time band

Reach% The sum of unique viewers expressed as a percentage of the universe for the target = Reach / Universe Estimate demographic Research Day 2am – 2am on any calendar day Sample Size The panel size for any specific demographic TARP (Target Audience Rating The average viewing audience for a demographic expressed as a percentage of the = Audience / Universe Estimate Point) relevant Universe Estimate Timeshifted Linear TV recorded on a Personal Video Recorder (PVR), VCR or other form of time- shifting technology and watched after the live broadcast. Also referred to as Playback TV. Can be viewed up to 7 days from broadcast Time Spent Viewing / Demo Of the total number of people in the target market (potential audience), the number of = (Audience / Universe Estimate) x minutes each person viewed of a specific event. This variable considers the potential of Event Duration the target, even if many individuals in the target audience did not watch the event being analysed Time Spent Viewing / Viewer The average number of hours or minutes each individual has seen of the program or = (Audience / Reach) x Event Duration time band being analysed compared to the total number of people in the target audience. Each individual must have watched at least 1 minute of the event to be counted Total TV The Total Audience viewing across all of the TV channels that are broadcasted and measured by Nielsen – includes Live and Consolidated

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