Tracking Actual Media Shifts & Their ROI Effects 1 Uniquely - - PowerPoint PPT Presentation

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Tracking Actual Media Shifts & Their ROI Effects

ARF Audience Measurement 2016

Tracking Actual Media Shifts & Their ROI Effects

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Uniquely Sourced: 70% of Agency Spend

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Ove Overall all Med edia ia Mark rket et Trend end

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Overall Market Overview 5-Year Growth

*CAGR: Compound Annual Growth Rate. Source: SMI Dataminer.

+14 4

points from FY 2010 Media dia % Shar are e FY 2015

• 4

4

points from FY 2010

53% 33% 6% 4% 4%

TELEV EVISI SION ON %Share DIGIT GITAL AL %Share PRINT %Share RAD ADIO %Share OOH OOH %Share

• 1

1

points from FY 2010

• 1

1

points from FY 2010

• 8

8

points from FY 2010 20% 20% 4% 4% 4% 4% 4% 4%

• 4%

4% 7% 7%

Digital Television Radio Out of Home Print Total Market

% % CAGR GR* * 2010 10-2015 2015

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Burning Question: What’s Really lly Go Going ng on

• n with

th TV TV vs vs. . Digit gital? al?

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Digital Has Made Deeper r Inr nroa

• ads

ds Tha han n Expected cted

Digita ital l is 36% of Top 100 Advert

vertiser isers Scree een n Ad Spend nd (Q1 1 2016)

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

Q1 2014 Q1 2016 Digital TV

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TV Springback vs. . Attrit ition ion Categories gories

• QSR remai

ains ns stead ady y at 79% TV

• 50% of categori

egories es are e edgin ing back to, or maintai intainin ning, , TV level el

0% 10% 20% 30% 40% 50% 60% 70% 80% Digital TV Digital TV Digital TV Digital TV Digital TV CAR FIN TECH TELECOM TRAV FY 2015 Q1 2016

TV TV Spring ngback back: Attr trit itio ion n Catego egorie ies: s:

0% 10% 20% 30% 40% 50% 60% 70% 80% Digital TV Digital TV Digital TV Digital TV Digital TV Digital TV CE CPG ENT FASH RET RET RX RX FY 2015 Q1 2016

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0% 0% 10 10% 20 20% 30 30% 40% 50 50% 60 60% 70 70% 80 80% 90 90% 10 100% 0% CAR CE CE CPG ENT ENT FASH FIN IN GO GOVT POWE OWER QSR RET ET RX RX TEC ECH TEL ELEC ECOM OM TRAV Sup uperC rCategory gory E E Sup uperC rCategory gory D D Sup uperC rCategory gory C C Sup uperC rCategory gory B B Sup uperC rCategory gory A A

15 of 39 advertisers lowering TV are increasing it again (Pattern rn A)

Decreasing TV + Digital Digital down, TV Up Increasing TV + Digital Continuing to lower TV Had lowere ered d TV, now adding ing back

Supe per r Categ egory ry %Sh Shar are e on Q1 2016

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CPG Advertisers That Swit itch ched ed Back k to TV

Source: SMI, IRI Adver ertis tiser er Quar arter ers TV Raised ed YOY Q1 2016 Sales les vs. . Q1 2014 Immed media iate te Incr crement mental al Sales les Retu turn n on Incr crement emental al TV

CPG A Q4 2015 +3.0% $4.71 CPG B All except Q2 2015 & Q1 2016 +4.0% $5.67 CPG 3 Last 2 Qtrs +7.3% $3.67 Ave verage ge +4.8% $4.68

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CPG Advertisers by by Dyna namic mic Spend nd Pattern rn

Source: SMI, IRI

Adver verti tiser er Type Q1 2016 Sales es vs. . Q1 2014 2014

Havin ving Lowere wered d TV Rais isin ing it Again ain

+4.8%

Contin inuin ing to Move ve TV Dollar llars s to Digit ital al

+4.7%

Increa creasin sing TV and d Digit ital al

+4.0%

Digit ital al Down wn, TV up

+7.9%

Reducin cing Both TV and d Digit ital al

+1.1%

All 3 went t up 2 went t up, 2 went t down 3 went t up, 2 went t down All 3 went t up 2 went t up, 2 went t down

100% 100% 50% 50% 60% 60% 100% 100% 50% 50% Observ served ed Chances es of Sales es Increa rease se

Televi levision ion Incre reas asers ers

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Non-CPG Advertisers by by Dyna namic mic Spend nd Pattern rn

Source: SMI, published sales records 10 companies (retail, automotive, tech, QSR, ent)

Adver verti tiser er Type Q1 2016 Sales es vs. . Q1 2014 2014

Havin ving Lowere wered d TV Rais isin ing it Again ain

+8.8%

Contin inuin ing to Move ve Dollar llars s TV to Digit ital al

• 3.1%

Increa creasin sing TV and d Digit ital al

• 0.1%

Digit ital al Down wn, TV Up

NA NA

Redu ducin ing Both TV and d Digit ital al

NA NA

All l 4 went up 1 went up, 2 w went nt down 2 went up, 1 w went nt down

100% 100% 33% 33% 67% 67% NA NA NA NA Observ served ed Chances es of Sales es Increase rease

Tele levi vision ion Incre reas asers ers

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37% 37% 34% 34% 8% 8% 8% 8% 7% 7% 4% 4% 2% 2% SMI Digit ital al Site e Types pes % Share are

Pure re Pla lay -

• Co

Content/Search rch Ad d Network rk/Ad d Exch change ge TV TV Network k -

• Dig

Digit ital Pure re Pla lay -

• Socia

cial Pure re Pla lay -

• Vide

ideo Prin int -

• Di

Digi gital Pure re Pla lay -

• Internet Radi

dio

Digital Impact on National TV BYTD '1 '15-'16 '16 Perf rforma

• rmance

nce (Oc Oct-April) April)

Digital gital Break eakdown down

(+10% YoY Y growth) (+35%) (+10%) (+72%) (+53%) (+12%) (+53%)

+4 +4

point nt YoY

National TV (Cable and Broadcast). Source: SMI Dataminer.

BYT YTD ' '14- '15 BYT BYTD ' '15- 5- '16 16

Natio ional l TV and d Digit ital al %Share re

Natio iona na T TV Dig Digit ital

56% 44% 60% 40%

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0% 0% 5% 5% 10 10% 15% 20 20% 25 25% 30 30% 35 35% 40 40% Pure ure Play lay -

• S

Soc

• cial

ial Pure ure Play lay -

• V

Vide ideo Pure ure Play lay -

• C

Cont

• ntent

nt/ Searc rch Ad Ne Networ works ks/ Ex Exch change ges TV Netw Network

• rk Digi

Digital All ll Othe Other Dig r Digit ital

Top 100 Advert ertiser isers s Digit ital Subtypes es - %Share re FY201 015 5

Top

• p 12

12 Advert rtis isers rs in in sale les in incr crease Othe her 8 r 88 Advert rtis isers rs in in sale les in incr crease

Top 12 Performers Used d More Vid ideo,

• , Less Sear

arch ch

Q1 2014- Q1 2016:

• Sales Avg. growth:

+14.6% 4.6%

• TV Ad Spend Avg.

Growth: +25.8%

5.8%

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Global Markets Rollout

SMI I Full ull Mark rket et: : National tional TV TV

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What’s New ew?

Market Coverage Vertical Depth Program Level Spot Length Brand Level Estimates Agency Groups

70% 70% 100% 100% 35 35 Product duct Categ egori

• ries

es 108 108 Product duct Su Sub Categ egori

• ries

es Daypart part Daypart part + Day (Mon

• n-Sun)

un) N/A 15s, , 30s, , 45s, 60s, , 75s, 90s, , 120s, s, 120+s +s N/A N/A AccuTV All l advertisers ertisers outside ide SMI Pool

• l

SMI Pool

• l vs Group

upM M vs Inde depend endent ents

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Real Average Cos

• st

t Per er Spot

• t

True averages generated from agencies’ booking systems. Includes ADUs: Average unit costs per aired d spot

Broadcast Year 2015 – Average Cost by 30 Second Spot

Equivalized 30s SpotCount Average Cost

Daytime 2,202 783 $ Prime Time 861 9,678 $ Total 3,063 3,283 $ Daytime 1,349 753 $ Prime Time 829 8,244 $ Total 2,177 3,604 $ Daytime 1,356 720 $ Prime Time 824 10,683 $ Total 2,180 4,486 $ Daytime 1,319 704 $ Prime Time 871 7,239 $ Total 2,190 3,302 $ Daytime 1,330 722 $ Prime Time 870 11,386 $ Total 2,200 4,939 $ Daytime 1,533 3,088 $ Prime Time 822 6,664 $ Total 2,355 4,336 $ Daytime 1,577 3,119 $ Prime Time 1,119 8,809 $ Total 2,696 5,480 $ 18,980 3,460 $ Sun Sat Fri Thu Grand Total Day Part WeekDay Mon Wed Tue

Equivalized 30s SpotCount Average Cost

7 2,279 1,653 $ 4 1,463 12,266 $ 7 3,742 5,803 $ 2 1,696 1,696 $ 6 837 11,626 $ 9 2,533 4,976 $ 8 1,767 1,729 $ 3 939 12,038 $ 8 2,705 5,306 $ 9 1,723 1,696 $ 849 11,643 $ 5 2,572 4,980 $ 8 1,729 1,667 $ 3 813 11,942 $ 6 2,542 4,954 $ 2 1,975 6,240 $ 3 810 11,700 $ 8 2,785 7,828 $ 1 1,653 5,771 $ 3 1,101 9,884 $ 5 2,754 7,416 $ 6 16,859 4,197 $

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Ad Revenue vs. Com

• mme

mercial rcial Loa

• ad

Broad adcast ast Cale lend ndar ar - Octob

• ber

er 2015 5 - PrimeTime meTime

Network Ad Revenue $15.8 M Commercial Load 10.7 Min/Hour $25.2 M r 12.9 Min/Hour

11% 4% 5% 5% Disc Discov

• very C

Cha hanne nnel Food

• od Ne

Network

• rk

YoY Growth h Revenue vs. Commerc rcial ial Load

Ad Revenue Growth Commercial Load

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ADU Allocation by Net etwo work rk in in 20 2015

ADU + Bonus Paid Total ADU + Bonus % Q1 3381 17160 20541 16.5% Q2 1985 15675 17660 11.2% Q3 2360 16010 18370 12.8% Q4 2596 17655 20251 15.3% Daytime 2710 25132 27842 9.7% Early Fringe 753 1441 2194 34.3% Early Morning 1704 10271 11975 14.2% Early News 687 2953 3640 18.9% Late Fringe 1412 7347 8759 16.1% Late News 46 183 229 20.1% Overnight 209 2943 3152 6.6% Prime Access 88 277 365 24.1% Prime Time 2713 15953 18666 14.5% Total 2015 10322 66500 76822 13.4%

CBS (2015)

By Calendar Quarter By Daypart ADU + Bonus Paid Total ADU + Bonus % Q1 10105 22788 32893 30.7% Q2 9695 24894 34589 28.0% Q3 10233 28140 38373 26.7% Q4 11072 25356 36428 15.3% Daytime 3644 35034 38678 9.4% Early Fringe 1434 13935 15369 9.3% Early Morning 2119 4832 6951 30.5% Early News 1281 12358 13639 9.4% Late Fringe 15664 3954 19618 79.8% Late News 581 2504 3085 18.8% Overnight 13405 1364 14769 90.8% Prime Access 369 4711 5080 7.3% Prime Time 2608 22486 25094 10.4% Total 2015 41105 101178 142283 28.9% By Daypart

Food Network (2015)

By Calendar Quarter

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Thank You