“A Word from Our Sponsor…” Measuring the Value of Commercial Audiences

“A Word From Our Sponsor…” Measuring The Value Of Commercial Audiences

Jeff Boehme Chief Research Officer Kantar Media Audiences, North America

Kantar Snapshot Corporate Overview

World Leader In Consumer Research… …TV Measurement in 65 Countries

Who is watching?

Return Path data

Personal Meters

Delivered via Infosys+ Internet Audience Measurement

Return Path Data (RPD) is any user activity collected from a digital device defined by a start time and a duration returned to the platform provider

• Second/second precision • Passive collection • PI-compliant • Device-specific • Larger samples • Cross-device

– Commercial & Promo Measurement • Ratings, retention & tune-away • By network/program • Category/brand – Product Placement/Contextual Advertising • Track on-screen tuning to content – Precision Metrics • Respondent-level second/second tuning • Competitive performance • Content analyses • Live/Time-shifted • Consumer Segments – Advanced Audience Measurement • Interactive/Addressable/T-commerce advertising – TV Effectiveness & Engagement • Behavior segmentation - matching tuning to purchase behavior

5 5 © 2013 Kantar Media Where Is Media Measurement Going? Requirement Traditional Advanced (Meters) (RPD) Broadcast & established networks √ √ Emerging channels/regional/ X √ sub-channels/platform measurement Commercial ratings/ad avoidance X √ Promo Evaluation X √ Behavior Segmentation X √ Advanced advertising X √ (Interactive/T-commerce/addressable) TV Everywhere X √

• ARF White Papers • Commercial Tuneaway • Super Bowl Ad Effectiveness • High Definition • State Of The Union • “Beyond Demographics”

21.6 Million Ad Occurrences

4.6 Million Promos

26% Of Total Primetime Content

~$73 Billion Expenditures

Source: 2012 Kantar Media Intelligence

Live/+3 Total Day Commercial Avoidance Commercial Tuning Potentially Costs Advertisers ~$9 Billion

87%

13%

Source: Kantar Media Audiences RPD 5/12; Kantar Media Intelligence 2012

Media Influence • RPD provides second/second tuning Genre Program • Media placement can now be evaluated across 10 Frequency Channel measurable influences Time- Daypart shifting

Product Duration Category

Position Pod in Pod

Source: Kantar Media Audiences RPD

Measuring Commercial Behavior Tuneaway – Second/second – Measures the holding power of a commercial at the first second – The percentage of seconds not tuned compared to the total seconds based on the audience tuned at the first second

102.0 100.0 98.0 96.0 94.0 92.0 90.0

88.0

22:04:58 22:04:59 22:05:00 22:05:01 22:05:02 22:05:03 22:05:04 22:05:05 22:05:06 22:05:07 22:05:08 22:05:09 22:05:10 22:05:11 22:05:12 22:05:13 22:05:14 22:05:15 22:05:16 22:05:17 22:05:18 22:05:19 22:05:20 22:05:21 22:05:22 22:05:23 22:05:24 22:05:25 22:05:26 22:05:27 Source: Kantar Media Audiences RPD

Measuring Commercial Behavior Commercial Tuning Index (CTI) – Second/second – CTI measures the holding power of a commercial for all seconds tuned – Ratio of a commercial’s average audience relative to the full program audience 105.0 103.0

101.0

99.0

97.0

95.0

Source: Kantar Media Audiences RPD

Top 25 Rated 2013 Super Bowl Commercials

2013 Super Bowl Commercial Ranking Airtime HH Length Rating (%) CBS-Person Of Interest/CBS: Person of Interest Promo 10:31:06 PM 47.4 20 Samsung Galaxy/Celebrities Argue Over Next Big Thing 10:29:06 PM 47.2 120 Mercedes Benz Autos/W. Dafoe & K. Upton: Soul 10:21:41 PM 46.6 60 Tide/Miracle Stain 10:13:54 PM 46.5 60 Soda Stream/Bubbles Set Free 10:14:54 PM 46.3 30 Kia Trucks/Space Babies 10:05:51 PM 46.2 60 CBS-Hawaii Five-O/CBS: Hawaii Five-O Promo 10:22:41 PM 46.2 20 CBS-Elementary/CBS: Elementary Promo 9:59:27 PM 46.1 20 CBS-Job/CBS: The Job Promo 10:23:01 PM 46.1 20 CBS Cares/PSA/Wounded Warrior Donation Solicitation 10:06:51 PM 45.9 20 Dodge Trucks/P. Harvey: Farmer 9:57:27 PM 45.8 120 NFL National Football League/NFL Football Promo 10:07:11 PM 45.6 10 NFL National Football League/NFL Football Promo 7:54:03 PM 45.4 30 Lincoln Autos/Memorable Roadtrips 9:33:25 PM 45.3 30 NFL Network Cable TV/D. Sanders: Rookie 9:51:04 PM 45.3 60 Kia Autos/A. Campanella: Hotbots 9:25:32 PM 45.2 30 CBS: C. Ferguson Super Bowl Special Promo 9:52:04 PM 45.1 5 CBS-Elementary/CBS: Elementary Promo 7:47:10 PM 45.1 20 Bridgestone/Moment of the Year: Baltimore Comeback 7:46:40 PM 45.1 30 Skechers GOrun 2/Man Chases Cheetah 7:46:10 PM 45.1 30 CBS-Various Programs/CBS: Various Programs Promo 10:15:24 PM 45.1 30 Taco Bell Restaurant/Viva Young 7:45:10 PM 45.1 60 Lincoln Autos/Not What You Think 7:49:27 PM 45.0 30 CBS-Various Programs/CBS: Various Programs Promo 9:36:58 PM 45.0 30 Budweiser/Man Reunited With Clydesdale 9:35:58 PM 45.0 60

2.0

1.8

1.6

1.4

1.2

1.0

0.8 HH RPD Ratings RPD HH

0.6

0.4

0.2

Pod #5 Pod #6 Pod

Pod #2 Pod #3 Pod

Pod #1 Pod #4 Pod

0.0

10:00:00PM 10:01:00PM 10:02:00PM 10:03:00PM 10:04:00PM 10:05:00PM 10:06:00PM 10:07:00PM 10:08:00PM 10:09:00PM 10:10:00PM 10:11:00PM 10:12:00PM 10:13:00PM 10:14:00PM 10:15:00PM 10:16:00PM 10:17:00PM 10:18:00PM 10:19:00PM 10:20:00PM 10:21:00PM 10:22:00PM 10:23:00PM 10:24:00PM 10:25:00PM 10:26:00PM 10:27:00PM 10:28:00PM 10:29:00PM 10:30:00PM 10:31:00PM 10:32:00PM 10:33:00PM 10:34:00PM 10:35:00PM 10:36:00PM 10:37:00PM 10:38:00PM 10:39:00PM 10:40:00PM 10:41:00PM 10:42:00PM 10:43:00PM 10:44:00PM 10:45:00PM 10:46:00PM 10:47:00PM 10:48:00PM 10:49:00PM 10:50:00PM 10:51:00PM 10:52:00PM 10:53:00PM 10:54:00PM 10:55:00PM 10:56:00PM 10:57:00PM 10:58:00PM 10:59:00PM 11:00:00PM

Source: Kantar Media Audiences DIRECTView™ – 2/17/11RPD HHs, Live

4.5

4.0

3.5

Pre President Speaks

3.0 Medicare and Social Security

Americans Americans Serving Abroad Vets &

Health Health Care

Voting

Budget Budget and Debt

Stories

Guns

Energyand

Equal Pay Equal

Economyand Jobs

Infrastructure

Immigration Reform Immigration

Community Community Investment

Post

Tax Tax Reform Minimum Minimum Wage

Housing

Education

NationalSecurity

HH Rating HH

Speech

US Leadership US

Trade

2.5 Speech

2.0

limate limate

1.5

hange

1.0

0.5

0.0

9:00PM 9:01PM 9:02PM 9:03PM 9:04PM 9:05PM 9:06PM 9:07PM 9:08PM 9:09PM 9:10PM 9:11PM 9:13PM 9:14PM 9:15PM 9:16PM 9:17PM 9:18PM 9:19PM 9:20PM 9:21PM 9:22PM 9:23PM 9:24PM 9:26PM 9:27PM 9:28PM 9:29PM 9:30PM 9:31PM 9:32PM 9:33PM 9:34PM 9:35PM 9:36PM 9:37PM 9:39PM 9:40PM 9:41PM 9:42PM 9:43PM 9:44PM 9:45PM 9:46PM 9:47PM 9:48PM 9:49PM 9:50PM 9:52PM 9:53PM 9:54PM 9:55PM 9:56PM 9:57PM 9:58PM 9:59PM

10:00PM 10:01PM 10:02PM 10:03PM 10:05PM 10:06PM 10:07PM 10:08PM 10:09PM 10:10PM 10:11PM 10:12PM 10:13PM 10:14PM 10:15PM 10:16PM 10:18PM 10:19PM 10:20PM 10:21PM 10:22PM 10:23PM 10:24PM 10:25PM 10:26PM 10:27PM 10:28PM 10:29PM

ABC Bloomberg CBS CNN CNBC

FOX Business FOX FOX News MSNBC NBC

Source: Kantar Media Audiences DIRECTView – 2/12/13 RPD HHs, Live

-29% 5.0 -30% 4.5 4.7 -30% -27% 4.0 4.4

3.5 -33% 3.7 3.0 3.0 3.3 3.0 3.1 2.5 2.6 % % Tuneaway 2.0 2.2 1.5 2.0 1.0

0.5 0.0 Auto Motion Pictures Restaurants CPG Telecom

HD Broadcasts SD Broadcasts

Source: Kantar Media Audiences

Third Party Match

Consumer Actual HH TV tuning is Purchase TV matched with actual Records Audiences consumer purchases (RPD) through 3rd Party privacy-protected procedures.

Matched Database

2.0

1.8

1.6

1.4

1.2

1.0

HH RPD Ratings RPD HH 0.8

0.6

0.4

0.2

Pod Pod #3

Pod Pod #9

Pod Pod #7

Pod Pod #4

Pod Pod #6

Pod Pod #2

Pod Pod #8 Pod Pod #1

0.0 Pod #5

8:00 PM 8:00 PM 8:02 PM 8:04 PM 8:06 PM 8:08 PM 8:10 PM 8:12 PM 8:14 PM 8:16 PM 8:18 PM 8:20 PM 8:22 PM 8:25 PM 8:27 PM 8:29 PM 8:31 PM 8:33 PM 8:35 PM 8:37 PM 8:39 PM 8:41 PM 8:43 PM 8:45 PM 8:47 PM 8:50 PM 8:52 PM 8:54 PM 8:56 PM 8:58 PM 9:00 PM 9:02 PM 9:04 PM 9:06 PM 9:08 PM 9:10 PM 9:12 PM 9:15 PM 9:17 PM 9:19 PM 9:21 PM 9:23 PM 9:25 PM 9:27 PM 9:29 PM 9:31 PM 9:33 PM 9:35 PM 9:37 PM 9:40 PM 9:42 PM 9:44 PM 9:46 PM 9:48 PM 9:50 PM 9:52 PM 9:54 PM 9:56 PM 9:58

10:00 PM 10:00 PM 10:02 PM 10:05 PM 10:07 PM 10:09 PM 10:11 PM 10:13 PM 10:15 PM 10:17 PM 10:19 PM 10:21 PM 10:23 PM 10:25 PM 10:27 PM 10:30 PM 10:32 PM 10:34 PM 10:36 PM 10:38 PM 10:40 PM 10:42 PM 10:44 PM 10:46 PM 10:48 PM 10:50 PM 10:52 PM 10:55 PM 10:57 PM 10:59

Source: Kantar Media Audiences DIRECTView – 1/28/12RPD HHs, Live

19 © 2013 Kantar Media © 2013 Kantar Media Kantar Media RPD Services Healthy Choice Campaign EKG - Reach, Wearout & Media Spend % Build Reach, CTI Live+3 and Cumulative TV Spend* for Healthy Choice J. Lynch: Roles Some Ingredients Play Campaign 10/31/11-3/25/12

% Build Reach - All HHs % Cume GRPs - All HHs $000 %/Index CTI Live+3 - All HHs Cumulative TV Spend ($M) 140 $1,800

GRPs $1,600 120 consistently

build $1,400

100 $1,200

80 $1,000

60 Audience reach $800 peaks half-way into the $600 40 campaign Commercial Ad spend $400 wearout appears continues to 20 after 2/3rd of the increase during the campaign $200 campaign

0 $0

1/2/12 1/9/12 2/6/12 3/5/12

11/7/11 12/5/11 1/16/12 1/23/12 1/30/12 2/13/12 2/20/12 2/27/12 3/12/12 3/19/12

10/31/11 11/14/11 11/21/11 11/28/11 12/12/11 12/19/11 12/26/11 Ad Spending Source: Kantar Media Intelligence 2012. Campaign 439 spot occurrences Audience Source: Kantar Media Audiences DIRECTView – RPD HHs, Live +3

2 20 © 2013 Kantar Media 0 Kantar Media RPD Services AMC Walking Dead Promo Campaign “EKG” – Reach and Wearout % Build Reach and CTI Live+3 Among Total Households and HHs Tuning to Premiere 1/1 – 2/10/13

%/Index % Build Reach - Total HHs CTI Live+3 - Walking Dead Tuning HHs % Build Reach - Walking Dead Tuning HHs 120

100

80 Promo performance declines Campaign cumes to 91% of tuned 60 HHs

40 Consistent total reach & accelerates

20 Cross-channel promos added significant reach

1/1/13 1/2/13 1/3/13 1/4/13 1/5/13 1/6/13 1/7/13 1/8/13 1/9/13 2/1/13 2/2/13 2/3/13 2/4/13 2/5/13 2/6/13 2/7/13 2/8/13 2/9/13

1/10/13 1/11/13 1/12/13 1/13/13 1/14/13 1/15/13 1/16/13 1/17/13 1/18/13 1/19/13 1/20/13 1/21/13 1/22/13 1/23/13 1/24/13 1/25/13 1/26/13 1/27/13 1/28/13 1/29/13 1/30/13 1/31/13 2/10/13

Source: Kantar Media Audiences;1,282 Total Promo Spots: 85% on AMC; 15% on other Networks

What is the actual audience to the specific ad & promo campaigns? • Second/second tuning • Networks, programs, dayparts • Campaign performance Is the audience avoiding the commercial? • Commercial tuning index • Tuneaway • Wearout At what point does the commercial audience stop growing? • Audience duplication • By campaign Competition: Which campaign scores the highest? • Performance by category/brand/genre Investment: Which campaigns are most effective & engaging? • Campaign EKG - TV audience, expenditures and commercial avoidance by campaign • Effectiveness & Engagement - campaign exposure impact