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Relevance in the Face of Adversity Trends + Recommendations

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Relevance in the Face of Adversity Trends + Recommendations Relevance In The Face of Adversity Trends + Recommendations April 8th, 2020 Understanding the New Normal • Over the last few weeks, both consumers and advertisers have had to reassess their new normal and adapt based on circumstances out of their control • The change in "regularly scheduled programming" highlights the power and potential of an audience- first mentality • With the increased eyeballs on our platforms and across the media ecosystem, we see opportunities for advertisers to reach their consumers regardless of the content • The shift in audience spend is careening toward outcome driven campaigns, and data + technology powered platforms 2 © 2020 Xandr Inc. Xandr℠, the Kite logo, AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. Connecting Brands with Consumers in Uncertain Times Follow Consumer Remain Align Media Focus on Behavior Engaged Approach Brand Voice Follow Consumer Remain Engaged with Align Your Media Focus on Brand Voice Behavior Your Audience Approach • Focus on the consumer • People are focusing on • Evaluate your marketing • Follow the consumer first the essentials investments, but do not • Re-allocate OOH and • Be sincere and • Buying behavior is shifting pull back entirely as it can sponsorships towards transparent to digital vs. in-store lead to long-term brand streaming, digital video, • Align your brand message • Viewers are staying home impact linear TV, social, and with the current context and consuming more • Focus on your brand and digital touchpoints of today’s environment media content than ever connecting with • Sustain awareness, • Build trust: Go beyond the consumers educate consumers, and product and include • Prioritize brand remind them of your messaging focused on advertising over sales brand values the community, family, promotion efforts and CSR efforts 3 © 2020 Xandr Inc. Xandr℠, the Kite logo, AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. Viewership Insights March 2020 4© 2020 Xandr Inc. Xandr℠, the Kite logo, AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. Viewership Implications on DIRECTV Viewership experienced a slight decline from the prior week, but is still up significantly YOY DIRECTV Ratings Trend 12.0 10.92 11.22 11.15 9.67 9.95 10.0 8. 0 6. 0 % % 4. 0 +17 +90 2. 0 0. 0 DIRECTV’s overall News Cluster dropped slightly 3/2/20 3/9/20 3/16/20 3/23/20 3/30/20 rating was up +17% in the week of 3/30, but is still 2020 2019 2020 Weekly Average YOY in the week of up +90% YOY, the most 3/30 significant increase of any DIRECTV cluster DIRECTV News Cluster Ratings Trend 0.39 0. 4 0.37 0.37 While News continues to be the highest viewed genre, the 0.32 0.27 last 3 weeks also sparked a sizable YOY increase in other 0. 3 fiction and reality genres 0. 2 0.21 0.21 0.20 0.20 0.19 0. 1 From 3/16 – 4/5, genres outside of news that had the highest ratings lifts are Suspense/Mystery (+628%), Quiz/Game Shows 0. 0 (+41%) and Instruction/Advice i.e. cooking & home improvement 3/2/20 3/9/20 3/16/20 3/23/20 3/30/20 shows (+25%) 2020 2019 Source: Nielsen Media Research; Live+SD; Total Day; 5 © 2020 Xandr Inc. Xandr℠, the Kite logo, AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. P2+; Ad Supported Cable Original. Viewership Implications on AT&T TV NOW Total Time Spent is up +21% vs. the first week of March Time Spent on CTV 19% 23% 21% 250 9% 200 150 % % 100 +21 +28 50 0 Total CTV time spent is AT&T TV NOW’s overall 3/1 - 3/7/20 3/8 - 3/14/20 3/15 - 3/21/20 3/22 - 3/28/20 3/29 - 4/4/20 up 21% in the fifth rating is up +28% in the Time Spent (Minutes in Millions) week of March vs. the week of 3/30 vs. 4 weeks first week prior AT&T TV NOW Overall Rating 6.0 28% 25% 20% % % 5.0 6% +59 +25 4.0 Total CTV time spent News viewership is 3.0 increased +59% in up +25% in the week 2.0 March vs. February of 3/30 1.0 2020 0.0 3/2 - 3/8/20 3/9 - 3/15/20 3/16 - 3/22/20 3/23 - 3/29/20 3/30 - 4/5/20 Source: Nielsen Media Research; Live+SD; Week of 3/30/20; Total Day; P2+; Ad Supported Cable Original. 6 © 2020 Xandr Inc. Xandr℠, the Kite logo, AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. Nielsen Digital Content Rating; March 2020 Daily Data; US Shifting Consumption Habits March 2020 7© 2020 Xandr Inc. Xandr℠, the Kite logo, AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. Changing Consumption Habits: Daypart ShiFts March 2020 by Week March 2020 Average Audience By Week Early Morning Daytime Fringe Prime Late Night Overnight 9,000,000 Daypart Changes +10% 8,000,000 • During the final week of March, DIRECTV Total Day +15% has seen an increase in Average Audience of +19% 7,000,000 from the first week in March 6,000,000 • Throughout March, with the exception on Early +38% Morning which only grew +1%, all dayparts saw 5,000,000 increases +20% 4,000,000 • +1% Daytime saw the largest growth between the week of 3/23 and 2/24, growing +38% 3,000,000 • Fringe also saw significant growth, growing +15% % 2,000,000 +16 during the month 1,000,000 Week of 2/24 Week of 3/2 Week of 3/9 Week of 3/16 Week of 3/23 Source: Comscore TV Essentials; DIERCTV STB Data; March, 2020 Average Audience: The average number of TVs tuned into an entity (telecast, series, or network) throughout the selected time frame. Calculated by dividing the total hours viewed by the length of the time frame (in hours).Daypart averages have been calculated across the Days of the Week Dayparts: Averaged Across DOW; Fringe & Prime Access Weighted . Changing Consumption Habits: Cable Networks March 2020 vs. March 2019 March 2020 March 2019 March 2020 The Power of News Network Rank Rank Average Audience Unsurprisingly, News networks topped the cable FOX News Channel 1 1 267,853 rankings. Fox News ranked first, while CNN saw an CNN 2 5 148,019 th nd MSNBC 3 6 105,226 increase in their rank YoY, moving from 5 to 2 HGTV: Home & Garden Television 4 4 81,291 Nickelodeon/Nick-at-Nite 5 3 79,649 ESPN 6 2 78,852 Reality Programming Serves as an Escape TBS: Turner Broadcasting System 7 7 60,338 • Game Show Network grew in rank from 32 to 22 TNT: Turner Network Television 8 9 59,530 • A&E grew in rank from 22 to 13 Investigation Discovery 9 8 55,609 • HGTV, History, & Discovery mostly maintained their Hallmark 10 11 54,767 Food Network 11 12 51,842 same ranks from 2019 Disney Junior Channel 12 10 45,600 • Despite the pause in certain live sports, ESPN ranked A&E 13 22 41,848 6th Disney Channel 14 13 40,202 History Channel 15 17 39,947 TV Land/TV Land Classic 16 16 39,841 Also Noteworthy: INSP 17 24 39,408 • MTV increased in rank from 42 to 35 USA 18 14 38,878 TLC 19 21 35,388 • BET grew in rank, jumping from 52 to 28 Cartoon Network/Adult Swim 20 15 35,263 • DIY changed in rank, moving from 67 to 48 Source: Comscore TV Essentials; DIERCTV STB Data; March, 2020 & March 2019 Average Audience: The average number of TVs tuned into an entity (telecast, series, or network) throughout the selected time frame. Calculated by dividing the total hours viewed by the length of the time frame (in hours).Daypart averages have been calculated across the Days of the Week Dayparts: Averaged Across DOW; Fringe & Prime Access Weighted . DIRECTV and AT&T TV VOD Viewership on the Rise DirecTV VOD AT&T TV VOD % Growth % Growth Most Watched Genre Feb-March Most Watched Genre Feb-March % % Week of 3/22 Week of 3/22 +51 +90 1. Children’s TV 75% 1. Scripted TV Series 128% 2. Scripted TV Series 46% 2. Reality 57% Number of programs Number of programs 3. Reality 40% 3. Feature Film 63% watched on DirecTV watched on AT&T TV VOD 4. Feature Film 117% 4. Children’s TV 52% VOD was up 51% from nearly doubled from 5. Sitcom 60% 5. News 129% February to March February to March 6. Travel & Cooking 41% 6.
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