Lance Brothers, Senior Vice President of Business Development at The Nielsen Company, discussed the rapidly changing media landscape and how marketers can keep up with it during his presentation at the 2014 Chief Marketing Officer Leadership Forum in Dallas on Dec. 9. In his presentation, Brothers pointed out that the media landscape is changing at an unprecedented rate, and as a result, this landscape is changing the way brands connect with their target audiences. According to Brothers, the evolving media landscape creates both opportunities and challenges for marketers. However, Brothers said marketers who collect consumer data and know how to use this information to improve their advertising campaigns can stay ahead of their rivals. In addition, measuring “advertising effectiveness” is vital and can help marketers find innovative ways to interact with customers, Brothers said: “The way that we try to frame up the notion of ad effectiveness is to get the sense of are you reaching my customer efficiently … If you’re doing that, then are you also delivering them with content or with messaging that is resonating with [customers].” Also, Brothers noted both television and digital advertising campaigns can help an organization connect with its target audience. But an organization must understand its target audience, Brothers said, to garner its attention through various channels: “Things we’re starting to see with clients and talking about and starting to recommend are these notions of really planning and buying your more traditional television campaigns and your digital campaigns at the same time. It’s being cognizant of those sorts of things so that you’re taking into account TV viewing behavior when you’re buying online.” - See more at: http://www.argylejournal.com/chief-marketing-officer/2014-chief-marketing-officer-leadership-forum-lance-brothers-senior-vice-president-business-development-the-nielsen-company/#sthash.v5G35Tt4.dpuf

1. ADVERTISING IN A CROSS-PLATFORM
WORLD
Lance Brothers
SVP, Business Development
December 9, 2014

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DISCUSSION OVERVIEW
Media and Video Consumption Today1
What Clients Are Telling Us2
What We’re Learning3
Where To Go From Here4

3. MEDIA AND VIDEO CONSUMPTION TODAY

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TODAY’S MEDIA LANDSCAPE IS EVOLVING AT AN UNPRECEDENTED
RATE
Today, we consume
more information
per day than we did
in 1960.
Source: University of California, San Diego,
http://www.npr.org/templates/story/story.php?storyId=129384107

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ENVIRONMENT
BLACK & WHITE
TV
FIRST
SATELLITE
BROADCAST
RISE OF
CABLE TV
MORE ADVERTISER-
SUPPORTED
NETWORKS
DIGITAL
AND
INTERNET
REVOLUTION
SMARTPHONES HDTV TABLETS OVER-THE-TOP
DISTRIBUTION
CHANGE IS
ACCELERATING.
1950s 1960s 1970s 1980s 1990s 2000 - 2005 2006 - 2011
2012 AND BEYOND
XBOX LIVE CAMERA IN
DEVICES/TV-
LEARNING THE
CONSUMER
TARGETED
ADS
PERSONALIZED
RECOMMEND-
ACTIONS
ENHANCED
CONTENT
SEARCH
CAPABILITIES
CLOUD-BASED
CONTENT
DELIVERY
SOCIAL TV DIGITAL RADIO
VIA MOBILE
AND TABLET
APPS
…
DVR FIRST
DOWNLOAD-
ABLE
CONTENT
SOLD
MP3
PLAYERS
VIDEO
STREAMING
DIGITALTV
CONNECTED WORLD
A SURGE OF INNOVATION…

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Source 1: NPower, Statistic: Average minutes per person 21-99 per day using a DVD player, Interval: Q3 2008 and Q3 2014
Source 2: Nielsen’s Q4 2013 Cross Platform Report, Statistic: Average minutes per p2+ per day
Source 3: Nielsen’s Q4 2008 3 Screen Report and Q4 2013 Cross Platform Report, Statistic: Average minutes per user per day streaming video on a computer
Source 4: Nielsen’s Q4 2013 Cross Platform Report, Statistic: Average minutes per p2+ per day
TRENDS ON THE WANE OVER PAST 5 YEARS…
P21+ have cut their DVD
player usage by 29%
The VCR has virtually
DISAPPEARED
The average U.S. TV viewer
spends >5 HOURS per day
engaging with the television
Video consumption
on a computer is up
162% but flattening

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Source 1: Nielsen’s Q4 2008 3 Screen Report and Q4 2013 Cross Platform Report, Statistic: Average number of persons watching video on a smart phone during a month.
Source 2: NPower, NPM Panel, Statistic: Number of households with at least 1 tablet, Interval: 03/08/2014
Source 3: Nielsen’s Npower, Ratings Analysis Time Period Report Persons 21 – 99 Q3 2008 Q3 2014 watching timeshifted TV
Source 4: Nielsen’s NPM Panel, Statistic: Unweighted count of homes with a television that is enabled to access the internet either directly or through an attached device, Interval: 10/25/2013
Source 5: Npower, Ratings Analysis Time Period Report Persons 21 – 99 Q3 2008 Q3 2014
25% of U.S. TV homes can
access internet video
directly on their television
P21+ have increased their
time shifted viewing by
120% (more than doubled)
40 MILLION U.S. homes have
at least one tablet
U.S. smartphone video consumers
have grown 10X to 100 MILLION
Format proliferation - P21+
are watching about 9 minutes
less LIVE TV per day
TRENDS ON THE RISE…

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MEDIA TIME IS INCREASING FUELED BY DIGITAL GROWTH
Source: Nielsen Total Audience Report– December 2014
2013 2014 2013 2014 2013 2014

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Mobile is an increasingly viable option for brand advertising
MORE TIME SPENT ON MOBILE
Mobile is the primary growth platform for consumers
1:35
2:27
0:31
4:38
1:32
0:22 0:28
2:19 2:19
0:36
4:31
1:26
0:18 0:14 0:20
2:51
2:12
0:43
4:28
1:20
0:12 0:12 0:14
Mobile Online Other TV Radio Newspaper Magazines Other
2012 2013 2014DIGITAL PRINT
Source: Nielsen Ad Solutions

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HOWEVER, TRADITIONAL TV VIEWING STILL DOMINATES
35+ hrs video viewing/week
30+ hrs watching linear TV
1+ hrs with gaming and DVD devices
1 hr watching video on PC/Smartphones
74%
Traditional TV
10%
Traditional TV remains key to broad video reach
WATCHING VIDEO ON INTERNET
USING INTERNET ON COMPUTER
3%
4%
USING A GAME CONSOLE
3%
USING A DVD / BLU-RAY DEVICE
7%
TIME-SHIFTED TV
Source: Nielsen Ad Solutions

11. TODAY’S PLATFORM PROLIFERATION
CHALLENGES MARKETERS TO EFFECTIVELY &
EFFICIENTLY REACH & AFFECT CONSUMERS

12. WHAT ARE CLIENTS TELLING US?

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0%
79%
21%
14%
16%
70%
Don't measure
effectiveness/ROI
Use one set of metrics
across all screens
Use variety of metrics
specific to individual…
Current
Preferred
MARKETERS WANT COMMON METRICS
But currently struggle with different metrics across screens
Q: How are you currently measuring the effectiveness/ROI of your integrated multi-screen
campaigns, and how would you prefer to measure the effectiveness/ROI of your integrated
multi-screen campaigns?
Source: Nielsen / ANA Cross Platform Survey 2013

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INTEGRATED MULTI-SCREEN ADVERTISING WILL
BECOME MORE IMPORTANT
Marketers see the continuing rise of video across platforms
Source: Nielsen / ANA Cross Platform Survey 2013
1% 0%
6%
55%
38%
1% 0% 2% 12%
85%
Very Unimportant Somewhat Unimportant Neither Important nor
Unimportant
Somewhat Important Very Important
2013 2016
Q: Thinking of today and three years from now, indicate the importance of integrated multi-screen
campaigns in effectively delivering a marketing message

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AS CONSUMERS BECOME INCREASINGLY SCREEN-AGNOSTIC,
MARKETERS ARE ADJUSTING THEIR STRATEGIES
Cross-Platform
Campaign Spend to Reach
Within 3 Years
50%

16. SOME THINGS WE’RE LEARNING…

17. REACH X RESONANCE = REACTION

18. CROSS-PLATFORM
AUDIENCE DELIVERY

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NIELSEN CLIENT CROSS-PLATFORM CAMPAIGN OBJECTIVES
I WANT TO MAXIMIZE UNDUPLICATED REACH
(60% CAMPAIGNS)
ONLINE
30%
TV
70%
SINGLE EQUITY MESSAGE
EXAMPLE
Source: Nielsen Ad Solutions

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I WANT TO MAXIMIZE AUDIENCE OVERLAP
(40% CAMPAIGNS)
ONLINE
30%
TV
70%
TWO MESSAGES,
EQUITY & PROMOTIONAL
EXAMPLE
I WANT TO MAXIMIZE UNDUPLICATED REACH
(60% CAMPAIGNS)
ONLINE
30%
TV
70%
SINGLE EQUITY MESSAGE
EXAMPLE
Source: Nielsen Ad Solutions
NIELSEN CLIENT CROSS-PLATFORM CAMPAIGN OBJECTIVES

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ON AVERAGE, ONLINE ADDS 2 POINTS OF INCREMENTAL
REACH IN CROSS-PLATFORM CAMPAIGNS
TV
ONLY
63%
BOTH
5%
ONLINE
ONLY
2%
There is a big opportunity to drive incremental reach with online (vs. duplication)
Source: Nielsen Ad Solutions

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HEAVY TV VIEWERS ARE HEAVY ONLINE USERS
0
100
200
300
400
500
600
700
0
5
10
15
20
25
30
Non-TV Viewers TV Quintile 5 TV Quintile 4 TV Quintile 3 TV Quintile 2 TV Quintile 1
TVCONSUMPTION
INTERNETCONSUMPTION
TV
Internet
Spending online will reach your TV advertising audience unless you plan and manage otherwise
DAILY MINUTES CONSUMING TV AND USING INTERNET
STREAMING ON A PC, BY TV VIEWING QUINTILE
Source: Nielsen Ad Solutions

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VAST MAJORITY OF CROSS-PLATFORM CAMPAIGNS SHOW
CLOSE TO “RANDOM” DUPLICATION
<70 70-74 75-79 80-84 85-89 90-94 95-99 100-104 105-109 110-114 115-119 120-124 125-129 130-134 135-139 >140
MORE DUPLICATIONMORE REACH
Opportunity for brands to better drive incremental reach or duplication
Source: Nielsen Ad Solutions
Duplication Indices
100 = random duplication

24. DIGITAL REACH

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ONLINE CAMPAIGNS CAN DELIVER HIGH LEVELS OF REACH
BUT TYPICALLY REQUIRE MORE IMPRESSIONS THAN TV
Reach vs. Impressions: TV vs. Online
LOW MEDIUM HIGH
ADVERTISING IMPRESSIONS
100
50
REACH(%)
U.S. National Television
U.S. Digital
Opportunity for brands to drive reach and be more efficient with digital plans

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WITH
EFFICIENTLY REACHING DIGITAL AUDIENCE TARGETS CAN BE
CHALLENGING
>19,000
CAMPAIGNS MEASURED
WITH REACH METRICS
COMMON TO OTHER MEDIA
>500
UNIQUE CLIENTS
AVERAGE PERCENTAGE
OF ON-TARGET DEMO
IMPRESSIONS OVERALL
AVERAGE PERCENTAGE
OF IMPRESSIONS
SERVED OUT OF VIEW
OR TO BOTS ACROSS
THE INDUSTRY
AVERAGE PERCENTAGE OF
ON-TARGET IMPRESSIONS
FOR NARROWLY DEFINED
AGE GROUPS (<15 YEARS)
59%
43% 64%
Opportunity for more effective digital ad buying and audience reach optimization
Source: Nielsen Online Campaign Ratings and Integral Ad Science

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EARLY INDICATIONS SHOW PUBLISHERS REACHING THEIR INTENDED
AUDIENCE MORE EFFICIENTLY VIA MOBILE IMPRESSIONS
61% 51%
On-Target Percent
By Device
Mobile Desktop
Source: Nielsen Online Campaign Ratings; Based on completed campaign data from July 1, 2014 - Present
52% of new campaigns contain a mobile component since July 2014

28. REACH X RESONANCE = REACTION

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HIGHER PROGRAM ENGAGEMENT & LESS CLUTTER IMPROVE
ONLINE VIDEO’S RELATIVE AD MEMORABILITY
TV Online Video Rich Media + Banners
Average Brand Cut-Through
(indexed to TV average)
index
100
index
148
index
61
1.5X TV
Opportunity for brands to use online video in addition to TV to improve results

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45%
27%
30%
12%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Memorability Breakthrough
TV + Online
TV Only
Major Auto Mfg Example
ONLINE EXPOSURE OFTEN IMPROVES TV AD EFFECTIVENESS
Opportunity for brands to use online duplication to drive better TV results
Source: Nielsen Ad Solutions

31. WHERE TO GO FROM HERE

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Take action to
improve
cross-platform
performance
during
campaigns
OPTIMIZATION
Measure Reach,
Resonance, and
Reaction for TV,
online, and
cross-platform
MEASUREMENT
DRIVE INCREMENTAL REACH/DUPLICATION TO
MAXIMIZE BRAND AND SALES IMPACT
Build digital
strategies with
TV viewing
behavior in
mind and vice
versa
PLANNING & BUYING

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POINTS TO REMEMBER
1
2
3
4 Online campaigns:
• Can achieve high levels of reach but are not currently as efficient as TV in doing so
• Are not as targeted as they could be, with only ~60% on target
Online video often provides greater breakthrough due to higher engagement & lower clutter5
• Most campaigns currently deliver random duplication regardless of strategic intent
Media consumption is growing driven by new devices, but TV is still major player
Marketers need to adapt to platform proliferation and impact audiences wherever they are
Total audience objectives are either to a) extend reach or b) maximize overlap

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Thank you for joining us!
• Lance.Brothers@Nielsen.com
• Follow us on Twitter @Nielsen