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

Tracking Actual Media Shifts & Their ROI Effects ARF Audience Measurement 2016 Tracking Actual Media Shifts & Their ROI Effects 1

Uniquely Sourced: 70% of Agency Spend 2

Ove Overall all Med edia ia Mark rket et Trend end 3

Overall Market Overview 5-Year Growth % % CAGR GR* * 2010 10-2015 2015 Media dia % Shar are e FY 2015 20% 20% Digital 4% 4% Television 53% 33% 6% 4% 4% 4% 4% Radio TELEV EVISI SION ON DIGIT GITAL AL PRINT RAD ADIO OOH OOH %Share %Share %Share %Share %Share 4% 4% Out of Home -4% 4% Print -8 8 +14 4 -4 4 -1 1 -1 1 Total Market 7% 7% points from points from points from points from points from FY 2010 FY 2010 FY 2010 FY 2010 FY 2010 4 *CAGR: Compound Annual Growth Rate. Source: SMI Dataminer.

Burning Question: What’s Really lly Go Going ng on on with th TV TV vs vs. . Digit gital? al? 5

Digital Has Made Deeper r Inr nroa oads 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) 80% 70% 60% 50% Digital 40% TV 30% 20% 10% 0% Q1 2014 Q1 2016 6

TV Springback vs. . Attrit ition ion Categories gories TV Spring TV ngback back: Attr trit itio ion n Catego egorie ies: s: 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% FY 2015 FY 2015 30% 20% Q1 2016 20% Q1 2016 10% 10% 0% 0% Digital TV Digital TV Digital TV Digital TV Digital TV Digital TV Digital TV Digital TV Digital TV Digital TV Digital TV CAR FIN TECH TELECOM TRAV CE CPG ENT FASH RET RET RX RX 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 • 7

15 of 39 advertisers lowering TV are increasing it again (Pattern rn A) Decreasing TV + Supe per r Categ egory ry %Sh Shar are e on Q1 2016 Digital 10 100% 0% 90 90% Digital down, TV 80 80% Up 70% 70 60% 60 Sup uperC rCategory gory E E Increasing TV + 50 50% Sup uperC rCategory gory D D 40% Digital Sup uperC rCategory gory C C 30% 30 Sup uperC rCategory gory B B Continuing to 20 20% Sup uperC rCategory gory A A lower TV 10% 10 0% 0% CAR CE CE CPG ENT ENT FASH IN FIN GOVT OWER QSR RET ET RX RX ECH ECOM OM TRAV Had lowere ered d TV, POWE TEC GO ELEC now adding ing back TEL 8

CPG Advertisers That Swit itch ched ed Back k to TV Immed media iate te Incr crement mental al Sales les Quar arter ers TV Raised ed Q1 2016 Sales les Adver ertis tiser er Retu turn n on YOY vs. . Q1 2014 Incr crement emental al TV CPG A Q4 2015 +3.0% $4.71 All except Q2 CPG B +4.0% $5.67 2015 & Q1 2016 CPG 3 Last 2 Qtrs +7.3% $3.67 +4.8% $4.68 Ave verage ge Source: SMI, IRI 9

CPG Advertisers by by Dyna namic mic Spend nd Pattern rn Q1 2016 Observ served ed Chances es of Adver verti tiser er Type Sales es vs. . Sales es Increa rease se Q1 2014 2014 Havin ving Lowere wered d TV 100% 100% All 3 went t up +4.8% Rais isin ing it Again ain Televi levision ion Contin inuin ing to Move ve TV 50% 50% 2 went t up, 2 went t down +4.7% Incre reas asers ers Dollar llars s to Digit ital al 3 went t up, 2 went t down 60% 60% +4.0% Increa creasin sing TV and d Digit ital al All 3 went t up 100% 100% wn, TV up +7.9% Digit ital al Down Reducin cing Both TV and d 50% 50% +1.1% 2 went t up, 2 went t down Digit ital al 10 Source: SMI, IRI

Non-CPG Advertisers by by Dyna namic mic Spend nd Pattern rn Q1 2016 Observ served ed Chances es of Adver verti tiser er Type Sales es vs. . Sales es Increase rease Q1 2014 2014 Havin ving Lowere wered d TV 100% 100% All l 4 went up +8.8% Rais isin ing it Again ain Tele levi vision ion Contin inuin ing to Move ve 33% 33% -3.1% 1 went up, 2 w went nt down Incre reas asers ers Dollar llars s TV to Digit ital al 67% 67% -0.1% Increa creasin sing TV and d Digit ital al 2 went up, 1 w went nt down NA NA wn, TV Up NA NA Digit ital al Down NA NA Redu ducin ing Both TV and d NA NA Digit ital al Source: SMI, published sales records 10 companies (retail, automotive, tech, QSR, ent) 11

Digital Impact on National TV BYTD '1 '15-'16 '16 Perf rforma ormance nce (Oc Oct-April) April) Natio ional l TV and d Digit ital al %Share re SMI Digit ital al Site e Types pes % Share are 2% 2% +4 +4 4% 4% (+10% YoY Y Pure re Pla lay - - Co Content/Search rch 7% 7% growth) point nt YoY (+35%) Ad d Network rk/Ad d Exch change ge Digital gital 8% 8% 37% 37% BYTD ' BYT '15- 5- 56% 44% (+10%) Break eakdown down TV TV Network k - - Dig Digit ital '16 16 8% 8% (+72%) Pure re Pla lay - - Socia cial (+53%) Pure re Pla lay - - Vide ideo BYT YTD ' '14- 60% 40% (+12%) '15 Prin int - - Di Digi gital 34% 34% (+53%) Pure re Pla lay - - Internet Radi dio Natio iona na T TV Dig Digit ital 12 National TV (Cable and Broadcast). Source: SMI Dataminer.

Top 12 Performers Used d More Vid ideo, o, Less Sear arch ch Top 100 Advert ertiser isers s Digit ital Subtypes es - %Share re FY201 015 5 40 40% 35 35% 30 30% Q1 2014- Q1 2016: Top op 12 12 25 25% Advert rtis isers rs in in sale les in incr crease Sales Avg. growth: 20 20% • +14.6% 4.6% 15% Othe her 8 r 88 10 10% Advert rtis isers rs in in TV Ad Spend Avg. sale les in incr crease • 5% 5% Growth: +25.8% 5.8% 0% 0% ocial ial ideo nt/ ks/ Digital ital ontent works Vide ges r Digit Soc change ork Digi Networ Other Dig - V Cont - S lay - lay - rch Network ure Play ure Play - C Exch Ad Ne Searc ll Othe lay - Ex TV Netw ure Play Pure Pure All Pure 13

SMI I Full ull Mark rket et: : National tional TV TV Global Markets Rollout 14

W hat’s New ew? AccuTV Market Coverage 70% 70% 100% 100% 108 108 35 35 Vertical Depth Product duct Su Sub Categ egori ories es Product duct Categ egori ories es Daypart part + Program Level Daypart part Day (Mon on-Sun) un) 15s, , 30s, , 45s, 60s, , 75s, Spot Length N/A 90s, , 120s, s, 120+s +s All l advertisers ertisers outside ide N/A Brand Level Estimates SMI Pool ol SMI Pool ol vs Group upM M vs N/A Agency Groups Inde depend endent ents 15

Real Average Cos ost t Per er Spot ot Broadcast Year 2015 – Average Cost by 30 Second Spot WeekDay Day Part Equivalized Equivalized Average Average 30s 30s Cost Cost SpotCount SpotCount Daytime 2,202 $ 783 7 2,279 $ 1,653 Mon Prime Time 861 $ 9,678 4 1,463 $ 12,266 Total 3,063 $ 3,283 7 3,742 $ 5,803 Daytime 1,349 $ 753 2 1,696 $ 1,696 Tue Prime Time 829 $ 8,244 6 837 $ 11,626 Total 2,177 $ 3,604 9 2,533 $ 4,976 Daytime 1,356 $ 720 8 1,767 $ 1,729 Wed Prime Time 824 $ 10,683 3 939 $ 12,038 Total 2,180 $ 4,486 8 2,705 $ 5,306 Daytime 1,319 $ 704 9 1,723 $ 1,696 Thu Prime Time 871 $ 7,239 0 849 $ 11,643 Total 2,190 $ 3,302 5 2,572 $ 4,980 Daytime 1,330 $ 722 8 1,729 $ 1,667 Fri Prime Time 870 $ 11,386 3 813 $ 11,942 Total 2,200 $ 4,939 6 2,542 $ 4,954 Daytime 1,533 $ 3,088 2 1,975 $ 6,240 Sat Prime Time 822 $ 6,664 3 810 $ 11,700 Total 2,355 $ 4,336 8 2,785 $ 7,828 Daytime 1,577 $ 3,119 1 1,653 $ 5,771 Sun Prime Time 1,119 $ 8,809 3 1,101 $ 9,884 Total 2,696 $ 5,480 5 2,754 $ 7,416 Grand Total 18,980 $ 3,460 6 16,859 $ 4,197 True averages generated from agencies’ booking systems. 16 Includes ADUs: Average unit costs per aired d spot

Ad Revenue vs. Com omme mercial rcial Loa oad Broad adcast ast Cale lend ndar ar - Octob ober er 2015 5 - PrimeTime meTime YoY Growth h Revenue vs. Commerc rcial ial Load Ad Revenue Growth Commercial Load 11% Network Ad Revenue $15.8 M $25.2 M 5% 5% Commercial Load 10.7 Min/Hour r 12.9 Min/Hour 4% Discov Disc overy C Cha hanne nnel Food ood Ne Network ork 17

ADU Allocation by Net etwo work rk in in 20 2015 CBS (2015) Food Network (2015) ADU + Bonus Paid Total ADU + Bonus % ADU + Bonus Paid Total ADU + Bonus % By Calendar Quarter By Calendar Quarter Q1 3381 17160 20541 16.5% Q1 10105 22788 32893 30.7% Q2 1985 15675 17660 11.2% Q2 9695 24894 34589 28.0% Q3 2360 16010 18370 12.8% Q3 10233 28140 38373 26.7% Q4 2596 17655 20251 15.3% Q4 11072 25356 36428 15.3% By Daypart By Daypart Daytime 2710 25132 27842 9.7% Daytime 3644 35034 38678 9.4% Early Fringe 753 1441 2194 34.3% Early Fringe 1434 13935 15369 9.3% Early Morning 1704 10271 11975 14.2% Early Morning 2119 4832 6951 30.5% Early News 687 2953 3640 18.9% Early News 1281 12358 13639 9.4% Late Fringe 1412 7347 8759 16.1% Late Fringe 15664 3954 19618 79.8% Late News 46 183 229 20.1% Late News 581 2504 3085 18.8% Overnight 209 2943 3152 6.6% Overnight 13405 1364 14769 90.8% Prime Access 88 277 365 24.1% Prime Access 369 4711 5080 7.3% Prime Time 2713 15953 18666 14.5% Prime Time 2608 22486 25094 10.4% Total 2015 10322 66500 76822 13.4% Total 2015 41105 101178 142283 28.9% 18

Thank You 19