The Multi-Screen Dayparting Playbook How to Utilize Device Dayparts for Greater Reach & Impact

Table of Contents

Introduction...... 4 Multi-Screen Reach...... 6 Device Reach by Daypart...... 10 Relationships with Devices...... 12 Implementing the Device Daypart...... 14 Case Studies...... 17 Looking Ahead...... 22 Sources & Methodology...... 23

3 The Multi-Screen Dayparting Playbook Table of Contents 24 Media is now Accessible 24/7 on 4 Screens Introduction KEY FINDINGS INCLUDE:

Much has been made in recent New complexity has been layered years about changes to the tele- over the 21st-century media day. 1 vision industry. The most striking Advertising reach and frequen- change of all may not be what’s cy opportunities are no longer Multi-Screen happening on TV—but instead, defined by TV and traditional TV on other screen devices. dayparts, but instead are spread Reach. across multiple devices and are Audiences who consume media Much of how television advertising defined by the consumer’s prefer- on multiple devices are now is bought and sold has remained ences—even relationships—with vastly in the majority, numbering reassuringly—and confidently—sta- each device. Advertisers who follow 203 million people in the US, ble for decades. That confidence these consumer media dynamics outnumbering single-screen is justifiable when television com- closely can gain a competitive edge audiences by almost 2.5 to 1. mands complete dominance in in engaging their customer; those Even in Prime Time, the ratio audience reach and wields the who ignore the trends will quickly is 1.5 multi-screen users for emotional power of video advertis- find themselves in the minority. every 1 user of a single screen. ing. However, industry conventions such as the daypart—which for- To understand the new “device merly offered a shorthand for the daypart,” Collective commis- 4 availability of the US audience to sioned and analyzed data from video ad messages (e.g. working Nielsen, and looked to our own people in Prime Time, kids and clients’ best practices, to craft a Implementation. housewives in Daytime)—require a guide for advertisers in managing Advertisers may match their drastic revision due to the impact of this new multi-screen paradigm. creative to the mindset asso- internet-enabled screen devices. ciated with each screen—for instance by bringing critical storytelling to the surface of a tablet ad, so that it intermingles with the leisure experience. Media is now Accessible 24/7 on 4 Screens KEY FINDINGS INCLUDE:

2 3

Device by Daypart. Relationships with Different screen devices gain an edge Devices. in capturing user attention in each The tasks favored on each device daypart: smartphones dominate the are distinct and even suggest per- Morning, TV wins in Early Fringe, sonalities: computers are life man- and tablets lead in Prime Time. agement devices, smartphones are real-time connectors, tablets are favored for leisure activities.

Case Studies. Some brands are already using the unique characteristics of each device daypart to boost engagement with consumers—for instance, the CPG advertiser who used smartphones to reach “Connected Moms” in Morning; or the technology advertiser who mixed Prime Time TV with online video to boost frequency.

5 The Multi-Screen Dayparting Playbook Introduction 24 1

THERE ARE Multi-Screen 203 MILLION MULTI-SCREEN USERS Reach. IN THE UNITED STATES. THAT IS In the past few years, with consumer adoption of the smartphone and tablet as well as the maturation of the online video market, multi- screen users have grown to outnumber single-screen users. Multi- 71% OF THE MEDIA-USING screen has in effect become the new normal. But the scale to which POPULATION. this has occurred is surprising. There are now over 203 million people in the United States—71% of the media-using audience1— consum- ing media on multiple screens. This means multi-screen users outnumber single-screen users by approximately 2.5:1. The largest group of multi-screen users employ 3 screens, combining TV, online (computer) and smartphone—of whom there are 80.8 million (or 28% of the media-using population). There are almost as many of these 3-screen users as there are members of the largest group of single-screen users: those who use TV only, of whom there are 81.4 million in the US.

MULTI-SCREEN USERS OUTNUMBER : SINGLE-SCREEN USERS BY APPROXIMATELY 2.5:1

Multi-Screen Audiences are the New Normal

1Media use is defined as a person who watches, listens, streams or reads media on one of the four devices (computer, tablet, smartphone or TV) as measured by Nielsen’s panels or surveys. Multi-Screen Audiences are the New Normal 7 The Multi-Screen Dayparting Playbook Multi-Screen Reach 24 These data may be parsed in numerous ways, but a few additional metrics are Audience by Screen Use (MONTHLY AUDIENCE IN MILLIONS) revealing: there are 35 million people who regularly combine tablet and TV use, a TELEVISION ONLINE TABLET SMARTPHONE habit that is prominent in Prime Time. Yet TV still massively dominates, as there are The most prominent screen combination occurs within the 3-screen universe, with 80.8 million users opting for the very few (about 3.4 million, or 1% of total) combination of online, smartphone and TV. small-screen-only users, meaning those who use only some combination of on- 0.1 MM line, smartphone or tablet, without TV. 0.9 MM

While the combination of devices might 0.9 MM 81.4 MM cycle throughout the day, the data show that multi-device usage dominates throughout. At least 100 million people are using multiple screens in any given daypart, and during Prime Time—traditionally the time of television’s greatest influence—there S

E are 169 million users of multiple screens. S SCREEN U 1 A I This stands in stark contrast to the 112 D E M million who are only engaging with a single N E E R screen in that time period; a ratio of 1.5:1. C -S LE NG SI 8 TAL 3.3 MILLION TO

80.8 MM

Prime Time Multi-Screen to Single- 1 SCREEN 3 SCREENS Screen Users Ratio is 1.5:1 2 SCREENS 4 SCREENS

MONTHLY MEDIA AUDIENCE BY SCREEN USE, BY DAYPART (AUDIENCE IN MILLIONS) R

U EARLY MORNING 122.0 92.0 39.0 2.8 133.8 Multi-Screen users A 6AM-10AM I D

DAYTIME N E 105.7 99.9 62.2 6.4 168.5 Multi-Screen users E 10AM-4:30PM R C S - 3 EARLY FRINGE L A 107.8 99.9 65.7 7.2 172.8 Multi-Screen users T 4:30PM-8PM O T N PRIME TIME IO 111.9 94.0 65.9 9.3 169.2 Multi-Screen users L 8PM-11PM IL M .6 5 9 LATE FRINGE 152.6 84.3 20.5 1.9 106.7 Multi-Screen users 11PM-2AM 0.2 MM 1.0 MM 0.1 MM

2.0 MM 70.5 MM How to Read this Chart: This chart illustrates the popularity of different device combinations, organized by the total number of screens through which a user consumes media within a single month. 15.9 MM

The most prominent screen combination occurs within the 3-screen universe, with 80.8 million users opting for the combination of online, smartphone and TV.

S S

R R SCREENS EE 2 SS UU

AA II DD EE

M M NN EE EE RR 0.2 MM CC S 3.2 MM --S 2 2 LL A TTA OO T T ONN LIIO IILLL 66 M M 8899..

11.4 MM

4SCREENS

S R E S U 18 IA .5 D M E IL N M LIO EE N TOTAL 4-SCR

E 3SCREENS S U

A I

N E E R C S - 3 L A T O T N IO L IL M .6 5 9

9 The Multi-Screen Dayparting Playbook Multi-Screen Reach 24 Each daypart appears to have a relative 2 “winner”: the time when use of that device peaks compared to other devices. This trend can be easily spotted in the boost in tablet Device Reach reach during Prime Time vs. Daytime (29 million vs. 21 million users). The nuances are by Daypart. revealed in the next chart, which illustrates how the use of each device, in each day- Reach by device is dominated by television, which part, indexes against that device’s daily finds an audience of between 222 and 275 million average. For each daypart, the device with across dayparts, peaking in Prime Time. Online reach the highest index is the “Dominant Device follows with a range of 88 to 145 million users, while Daypart.” These data reveal that a consum- smartphones are next with a reach of 41 to 99 million. er’s marginal attention gravitates to certain Tablets, the newcomer, draw an audience of 11 to 29 devices over the course of the day—infor- million. While the absolute numbers fluctuate, the rank- mation useful to a programmer or advertiser ing does not significantly change throughout the day. seeking to understand when their content will likely receive an extra boost of attention What does change is the degree to which audiences and engagement on each device. favor different devices, on a relative basis, at different times of day.

Smartphone use “wins” Online use dominates during Daytime– in the Early Morning daypart— when work-related search, and video the morning commute. entertainment breaks, peak.

Device Usage Index Device Usage Index Device Usage Index

SMARTPHONE: 85 ONLINE: 177 TV: 109 TABLET: 63 SMARTPHONE: 154 ONLINE: 108 ONLINE: 61 TABLET: 148 SMARTPHONE: 107 TV: 60 TV: 127 TABLET: 107

EARLY MORNING DAYTIME EARLY FRINGE 6AM-10AM 10AM-4:30PM 4:30PM-8PM TV SMARTPHONE Television Continues to Dominate Reach ONLINE TABLET MONTHLY REACH BY DEVICE BY DAYPART (AUDIENCE IN MILLIONS)

222.1 EARLY MORNING 114.6 6AM-10AM 81.3 16.2 252.1 DAYTIME 144.7 10AM-4:30PM 99.3 21.6 270.8 EARLY FRINGE 145.2 4:30PM-8PM 94.4 23.1 275.1 PRIME TIME 134.5 8PM-11PM 96.2 29.0 249.0 LATE FRINGE 88.7 11PM-2AM 41.3 11.4

“Dominant Device Dayparts” Reveal Extra Boosts of Engagement DEVICE USE INDEXED TO DAILY AVERAGE

Early Fringe appears to be a “transition” Tablet use is stronger during Prime Time— TV use is highest during Prime Time, daypart—in which all devices are used heavily as multi-tasking between the TV and but it is comparatively strongest in Late Fringe— since work, commute and leisure behaviors are mingled.the lap-friendly tablet spikes. the lie-in-bed-with-the-TV-on hours.

Device Usage Index Device Usage Index

TABLET: 134 TV: 73 TV: 131 ONLINE: 53 SMARTPHONE: 112 TABLET: 48 ONLINE: 101 SMARTPHONE: 41

EARLY FRINGE PRIME TIME LATE FRINGE 4:30PM-8PM 8PM-11PM 11PM-2AM

11 The Multi-Screen Dayparting Playbook Device Reach by Daypart 24 3 Relationships with Devices. But why are audiences reaching for one device over another? While audiences watch television in many mindsets—from breathlessly viewing crime drama to thoughtfully watching news—they do so to accomplish only one task: entertainment. Arguably the greatest change to the 21st-century daypart is that 3 of the 4 devices commonly access the internet, and therefore may be put to many uses.

Focusing on the smaller devices where media is consumed through the internet, Collective asked consumers what drives their device choices. We received a clear answer: 82% of audiences choose the device because it is the best match for the task at hand. The next most important considerations are: screen size, web access and web connection speed.

Perhaps more interesting are the different tasks consumers prefer on each internet-enabled device. What Drives Device Choice? Viewed together, these tasks reveal a personality for FACTORS DRIVING DEVICE CHOICE, SURVEY each device. THE BEST MATCH FOR THE TASK AT HAND (E.G., EMAIL, VIDEO, SOCIAL SHARING) SCREEN SIZE OF DEVICE

HOW EASY IT IS TO ACCESS THE WEB ON THE DEVICE

SPEED OF WEB ACCESS ON THE DEVICE

MOBILITY OF THE DEVICE (I.E., EASE WITH WHICH IT CAN BE MOVED AROUND)

WHETHER OR NOT WEBSITE(S) VISITED IS/ARE OPTIMIZED FOR THE DEVICE

TIME IT TAKES THE DEVICE TO BOOT UP

RESOLUTION OF THE DEVICE DISPLAY

SIZE OF AVAILABLE DATA PLAN Internet Devices Reveal Their Personalities USERS’ PREFERRED TASK, BY DEVICE

SMARTPHONE TABLET COMPUTER (Real-Time Connections) (Leisure) (Life Management)

Chatting/texting with others Shopping/looking for products Managing personal finances and services Social media Productivity-related tasks Watching online videos Search Email News/weather/sports

• The computer is the “life management device,” used for activities that require focus and secure connections such as work, managing personal finances and email.

• The smartphone’s appeal as an internet device aligns with its inherent benefits as a mobile device—a real-time portable connector, used for quick responses, social media and on-the-go search.

• The tablet appears to be the “leisure device,” used for shopping, watching online videos and browsing news and sports content.

These provide an important cue to advertisers, who can match their “small-screen” creative content and format to the mindset of the user—just as “big screen” television advertisers carefully select contexts as diverse as reality shows and broadcast news.

What Drives Device Choice?

THE BEST MATCH FOR THE TASK AT HAND (E.G., EMAIL, VIDEO, SOCIAL SHARING) 82%

SCREEN SIZE OF DEVICE 67%

HOW EASY IT IS TO ACCESS THE WEB ON THE DEVICE 67%

SPEED OF WEB ACCESS ON THE DEVICE 65%

MOBILITY OF THE DEVICE (I.E., EASE WITH WHICH IT CAN BE MOVED AROUND) 51%

WHETHER OR NOT WEBSITE(S) VISITED IS/ARE OPTIMIZED FOR THE DEVICE 49%

TIME IT TAKES THE DEVICE TO BOOT UP 47%

RESOLUTION OF THE DEVICE DISPLAY 34%

SIZE OF AVAILABLE DATA PLAN 25%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

13 The Multi-Screen Dayparting Playbook Relationships with devices 24 4 CLARIFY the brand’s Implementing reach goals. the Device MATCH Daypart. the impact goal to the device daypart. How can advertisers apply these consumer insights to the way they implement media? Device dayparting is appropriate when an advertiser wishes to take advantage of the sophisticated tools of multi-screen advertising—which can target based on space, time and ADAPT device choice—to complement their TV investment creative messaging and optimize an ad campaign for maximum impact. to each device. How can device dayparting be applied to an advertiser’s advantage? Here are five simple steps to achieve the greatest impact. DELIVER targeted media across devices.

PREPARE for multi-screen follow-through. To maximize reach among audiences who rely less on TV, a multi-screen approach would be most effec- tive, as it would cast a wider net on multiple devices. If the advertiser’s goal is frequency and the target is more narrowly defined (e.g., moms in minivans), by using data, the advertiser can repeat messaging on multiple devices to the same audience for optimal impact.

Brands can use device dayparting and an understanding of the audience’s mindset during each time of day to further their marketing goals. For instance, a financial services brand requiring a consumer to make a complex decision might invest in Daytime/Online, encouraging the audience to digest detailed content at a time when they’re more likely to be in front of a computer.

Different devices invite different engagement behaviors. On a tablet, an advertiser may wish to bring storytelling to the surface of the ad so that it intermingles with the leisure experience. On the computer, an advertiser may wish to point the user to a website where a full range of available brand information can be explored and acted upon. Smartphones can create a fertile environment for on-the-go social sharing or location-based research (see creative templates on following page).

A brand’s media distribution should be managed across screens in order to deliver impressions pro- portionate to the target’s device daypart preferences. Using targeting data (e.g., A18-49) allows an advertiser to curate the user’s ad experience and achieve the proven benefits of multi-screen reach and frequency (see Collective’s paper, The Multi-Screen Advertising Playbook).

With technology and media use becoming more complex, the challenge to create a smooth, integrat- ed experience for the user grows. For example, mobile ads should lead to mobile sites and ultimately mobile actions, and so forth. The consumer experience at the end of the advertising journey is just as important as the ad creative, placement and timing.

15 The Multi-Screen Dayparting Playbook Implementing the Device Daypart 24 How to Adapt Creative Experiences to Each Device ANTICIPATE THE VISUAL AND TANGIBLE ASPECTS OF DESIGN

4. Online Creative Template 1. Detailed product offer/description 3. 2. Link to brand website 1. 3. 3. Multiple calls to action 4. Episodic video (848x560)

1. Tablet Creative Template 1. Full-screen video 2. Discoverable touch-screen interactivity 3. 3. Link to tablet-optimized brand website

(1024x768)

1. 2. Smartphone Creative Template

1. Image gallery 3. 2. Small-format video 3. Single call to action with easy-to-use button (320x416) 4. Social sharing How to Adapt Creative Experiences to Each Device ANTICIPATE THE VISUAL AND TANGIBLE ASPECTS OF DESIGN 5 DETAILED Case Studies. The more rich the multi-screen data, the greater the opportunity to apply it in a meaningful way. Following 3. are two examples of Collective clients using data to 3. connect their campaigns to their consumers’ preferred screens: smartphones in one case, and television in (848x560) the other. In both instances the brands achieved out- standing results using a multi-screen strategy. AD COMPLEXITY DEVICEBY

SIMPLE

17 The Multi-Screen Dayparting Playbook Case Studies 24 Case Study: Mobile Moms for CPG

Campaign Objective

A Fortune 100 brand in the food category reinvented a flagship product and was looking for ways to increase favorable opinion among Women 25-49 with young kids. Wishing to take advantage of the The combined mobile + “real-time connections” qualities of the online video campaign mobile screen, the client aimed to make generated 22% lift the “Connected Mom” aware of the prod- in favorability. uct by emphasizing mobile advertising BRAND FAVORABILITY FOR DEVICE-DAYPARTED at a time when she was likely connecting MOBILE AND ONLINE VIDEO CAMPAIGN with friends over her mobile device. CONTROL

Campaign Approach EXPOSED

The client chose to segment campaign delivery by Dominant Device Daypart. The campaign targeted Connected Moms on smartphones from 6am-9am when Moms Smartphone units for the were active on that device. The mobile device-dayparted campaign media was supplemented throughout the generated interaction rates day via online video and banner delivery, 48% higher than the with an emphasis on tablets during the industry norm. Early Fringe and Prime Time dayparts. INTERACTION RATE FOR DEVICE-DAYPARTED MOBILE Collective monitored the engagement AND ONLINE VIDEO CAMPAIGN habits of a device-dayparted campaign INDUSTRY NORM vs. control groups in an attitudinal test DEVICE-DAYPARTED and monitored interaction rates. This brand linked their audience (“Connected Moms”) to the device that fit that audience best.

The combined mobile + online video campaign generated 22% lift in favorability. 22% Lift

41.0%

50.0%

Smartphone units for the device-dayparted campaign generated interaction rates 48% higher than the 48% Higher industry norm.

.86%

1.27%

19 The Multi-Screen Dayparting Playbook Case Studies 24 Case Study: Prime Time Awards Shows and Online Video

Campaign Objective

A technology company was trying to emphasize the connection between its product and the entertainment industry by advertising on two major televised The brand’s suspicions about awards shows. While overall awareness the poor recall of key of the product was high, the retention attributes was confirmed by of key attributes for the brand was poor. a low baseline awareness. The client wished to take advantage of AWARENESS OF KEY PRODUCT ATTRIBUTES: multi-screen frequency to drive home TV AND ONLINE VIDEO WATCHERS its attribute-specific message by rein- forcing the TV campaign with digital. BASELINE

ONLINE ONLY Campaign Approach

Collective created a target group of TV ONLY

viewers who had watched the awards ATTRIBUTE PRODUCT ONLINE + TV shows in the past. The brand wished to take advantage of the large audience of 181 million+ that consumes media on both TV and the internet to drive home The targeting successfully the key attribute messaging. In the two aligned the TV and digital weeks following the live Prime Time event, audiences, achieving Collective delivered the brand’s online 80% overlap. video ads to the awards show audience. OVERLAPPING TV AND ONLINE AUDIENCES THROUGH TARGETING This brand took advantage of the large TV + online audience to drive home a message which had eluded audiences in the past. 4.8x Lift AWARENESS OF KEY PRODUCT ATTRIBUTES: TV AND ONLINE VIDEO WATCHERS

10%

24%

35%

Exposed to TV ads only

OVERLAPPING TV AND ONLINE AUDIENCES THROUGH TARGETING 80% Exposed to both online and TV ads Exposed to online ads only

21 The Multi-Screen Dayparting Playbook Case Studies 24 Looking Ahead. The choreographed use of multiple screens to tell a story is still in its infancy. Looking ahead, Collective sees several trends in technology and advertising that will affect how these tools develop.

Second-Screen Ad Experiences. While the second-screen experience is already widely embraced by content providers (television networks and the app developers who support them), Collective sees greater opportunity in second-screen experiences for advertising. Using technologies such as audio fingerprinting (or ACR, automatic content recognition), advertisers can create synchronized ad experiences between devices, amounting to a multi-device ad “takeover.” These synchronizations can use data (rather than the use of any particular app) to make the consumer experience passive, and therefore more scalable.

Ad Sequencing Across Devices. Research from Nielsen IAG and others shows that multi-screen ad exposure creates a better result. Testing the many elements in this phenomenon—frequency, the timing between exposures, etc.—allows advertisers to truly optimize the experience. Do TV ads followed by online ads work best? Or do synched tablet and TV create the best result? Multi-screen data and ad delivery can find the most powerful combination.

Sequenced Ad Narratives. The logical extension of an ad- sequencing capability is to use creative versioning to form narratives. For instance, by following big, emotional TV ads with action-oriented digital ads, the advertiser has the opportunity to drive their consumer down the purchase funnel in the course of a single campaign, or tell a true multi-screen story that invites the consumer—in a controlled way—to delve deeper into a storyline or product content. SOURCES & METHODOLOGY However, for simplicity’s sake the Nielsen The traditional daypart structure breaks the day analysis collapsed several dayparts in the into the following groupings: following manner:

6AM-10AM Early Morning 12:00 AM LATE FRINGE 10AM-4:30PM Daytime 1:00 AM POST LATE FRINGE 4:30PM-8PM Ealy Fringe + Prime Access 2:00 AM 8PM-11PM Prime Time 3:00 AM 11PM-2AM Late News + Late Fringe + 4:00 AM Post Late Fringe 5:00 AM 6:00 AM SOURCES: Nielsen fusion of TV panel, Online panel, and 7:00 AM EARLY MORNING Mobile survey data: Reach, and minutes of use, by 8:00 AM device, by daypart. Q3 2012. All data cited are from weekdays. 9:00 AM • Nielsen National People Meter (n=48,469) 10:00 AM • Nielsen NetView (n=121,047) Nielsen online survey of smarphone & 11:00 AM tablet users. 12:00 PM Q3 2012. (n=1,117) 1:00 PM DAYTIME QUESTIONS: 2:00 PM 1. Assuming you had all of the above devices available to you, which factors would you consider 3:00 PM when selecting the device you would use to access 4:00 PM the internet? 5:00 PM 2. Thinking about the device(s) below, for what pur- pose do you access the internet on each device? 6:00 PM EARLY FRINGE 7:00 PM CASE STUDY: MOBILE MOMS FOR CPG 7:30 PM PRIME ACCESS • Brand Favorability Lift: Vizu Ad Catalyst for Online 8:00 PM and Mobile, Q3-Q4 2012. (n=1,683) 9:00 PM PRIME TIME • Engagement rates: CTR, reported by Collective AMPTM. Industry benchmark as reported eMarketer, 10:00 PM August 2012, for North American Mobile banner 11:00 PM LATE NEWS click through rates.

CASE STUDY: PRIME TIME AWARDS SHOWS AND Justin Evans, ONLINE VIDEO EVP of Product Strategy, Collective • comScore Brand Lift Survey using OTS (opportunity-to-see) questions. TV Exposure (n=157); Aware- Frederick Stallings, ness Lift (n=92), 90% confidence level. Director of Mobile, Collective Q1 2012.

23 The Multi-Screen Dayparting Playbook Sources & Methodology 24 ABOUT COLLECTIVE

Collective intelligently connects brand marketers to audiences with high impact experiences across display, video and mobile advertising. Our technology solutions include AMP®, our data and media management platform for publishers, and Ensemble™, our audience buying, creative optimization and analytics platform for advertisers. Headquartered in New York with offices in Atlanta, Boston, Chicago, Dallas, Detroit, Los Angeles, San Francisco, London and India, Collective has been recognized for its rapid growth on the Deloitte Technology Fast 500 and Inc. 500/5000 lists. Collective’s investors include Accel Partners®, Greycroft Partners and iNovia Capital. For more information, please visit collective.com.

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