“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 © 2013 Kantar Media 2 Kantar Media Audiences Measurement Technology PeopleMeter Who is watching? Return Path data Personal Meters Delivered via Infosys+ Internet Audience Measurement 3 © 2013 Kantar Media Kantar Media Audiences What Is Return Path Data? 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 4 © 2013 Kantar Media Kantar Media RPD Benefits Anonymous Respondent Level Audience Metrics – 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 √ 6 © 2013 Kantar Media Commercial Measurement Analytics Recent Industry Activity • ARF White Papers • Commercial Tuneaway • Super Bowl Ad Effectiveness • High Definition • State Of The Union • “Beyond Demographics” 7 © 2013 Kantar Media The Current TV Commercial Business Context: 2012 Key Numbers 21.6 Million Ad Occurrences 4.6 Million Promos 26% Of Total Primetime Content ~$73 Billion Expenditures Source: 2012 Kantar Media Intelligence 8 © 2013 Kantar Media The Issue: Ad Avoidance Commercial Audiences Are 13% Lower Than The Programs In Which They Appear 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 9 © 2013 Kantar Media Kantar Media RPD Provides News Metrics To Measure Ad Avoidance 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 10 © 2013 Kantar Media Kantar Media RPD Services Advanced Metrics To Manage Commercial Avoidance 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 11 © 2013 Kantar Media Kantar Media RPD Services Advanced Metrics To Manage Commercial Avoidance 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 12 © 2013 Kantar Media Kantar Media Commercial Measurement Case Studies Kantar Media RPD Services Case Studies – Commercial Ratings 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 14 © 2013 Kantar Media HH RPD Ratings MTV’s Case Studies Kantar Media RPD Services 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 Jersey ShoreJersey 10:00:00 PM 10:01:00 PM 10:02:00 PM 10:03:00 PM 10:04:00 PM 10:05:00 PM 10:06:00 PM HH RPD Ratings 2/17/11 10 2/17/11 RPD RatingsHH 10:07:00 PM 10:08:00 PM 10:09:00 PM Pod #1 10:10:00 PM – Source: Source: 10:11:00 PM 10:12:00 PM Commercial Pod Evaluation Commercial Pod 10:13:00 PM 10:14:00 PM Kantar Media Audiences DIRECTView™ DIRECTView™ Audiences Media Kantar 10:15:00 PM 10:16:00 PM 10:17:00 PM 10:18:00 PM 10:19:00 PM Pod #2 10:20:00 PM 10:21:00 PM - 10:22:00 PM 11PM 10:23:00 PM 10:24:00 PM 10:25:00 PM 10:26:00 PM 10:27:00 PM 10:28:00 PM 10:29:00 PM 10:30:00 PM Pod #3 10:31:00 PM 10:32:00 PM – 10:33:00 PM 2/17/11RPD HHs, Live 10:34:00 PM 10:35:00 PM 10:36:00 PM Pod #4 10:37:00 PM 10:38:00 PM 10:39:00 PM 10:40:00 PM 10:41:00 PM 10:42:00 PM 10:43:00 PM 10:44:00 PM 10:45:00 PM Pod #5 10:46:00 PM 10:47:00 PM © 2013 Kantar 2013 Media © 10:48:00 PM 10:49:00 PM 10:50:00 PM 10:51:00 PM 10:52:00 PM 10:53:00 PM Pod #6 10:54:00 PM 10:55:00 PM 10:56:00 PM 10:57:00 PM 10:58:00 PM 10:59:00 PM 15 11:00:00 PM Rating HH 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 State Of The Union Tuning Analysis By Topic By Analysis Tuning Union The Of State Case Studies Kantar Media RPD Services 9:00 PM 9:01 PM Source: Source: 9:02 PM 9:03 PM 9:04 PM 9:05 PM Pre Speech 9:06 PM - FOX Business FOX ABC Kantar Media Audiences DIRECTView DIRECTView Audiences Media Kantar 9:07 PM 9:08 PM 9:09 PM 9:10 PM 9:11 PM 9:13 PM 9:14 PM 9:15 PM 9:16 PM 9:17 PM 9:18 PM Speaks President 9:19 PM – 9:20 PM Debt and Budget 9:21 PM Ratings Contextual FOX Bloomberg 9:22 PM Security Social and Medicare 9:23 PM Care Health 9:24 PM 9:26 PM 9:27 PM Reform Tax 9:28 PM 9:29 PM 9:30 PM Jobs and Economy – 9:31 PM 2/12/13 RPD 2/12/13 HHs, Live 9:32 PM 9:33 PM hange C limate C 9:34 PM and Energy 9:35 PM 9:36 PM 9:37 PM Infrastructure FOX News FOX CBS 9:39 PM 2/12/13 9p 2/12/13 9:40 PM Housing 9:41 PM 9:42 PM 9:43 PM Education 9:44 PM 9:45 PM 9:46 PM Immigration Reform Immigration 9:47 PM 9:48 PM Pay Equal - 9:49 PM 10:30p 9:50 PM Wage Minimum 9:52 PM 9:53 PM Investment Community MSNBC CNN 9:54 PM 9:55 PM EST 9:56 PM Security National 9:57 PM 9:58 PM 9:59 PM Trade 10:00 PM 10:01 PM Leadership US 10:02 PM 10:03 PM Vets & Abroad Serving Americans 10:05 PM 10:06 PM Voting 10:07 PM 10:08 PM 10:09 PM Guns NBC CNBC 10:10 PM © 2013 Kantar 2013 Media © 10:11 PM 10:12 PM 10:13 PM Stories 10:14 PM 10:15 PM 10:16 PM 10:18 PM 10:19 PM 10:20 PM Speech - 10:21 PM Post 10:22 PM 10:23 PM 10:24 PM 10:25 PM 10:26 PM 16 10:27 PM 10:28 PM 10:29 PM Kantar Media RPD Services Case Studies – HD vs.