The Television Audience Redefined: An Update

The Television Audience Redefined:An UpdateEmerging Hot Topics Part I – #2 David Poltrack Chief Research Officer CBS Corporation President CBS VISION

Topics The Single Source Approach Further Defining the Demand Product Pool Segments Two Key Category Applications Programming Application #ARFAM6

Enhanced Analytical Approach Modeling dollar lifts controlling for penetration produces stable, statistically significant results that are not driven by outliers Key finding: behavioral targeting delivers 2½ times more ROI leverage than demographic targeting Behavioral Target Demographic Target $0.18 $0.18 $0.16 $0.14 $0.13$ Per Exposed HH $0.12 $ Per Exposed HH $0.10 $0.08 $0.08 $0.06 $0.04 $0.03 $0.02 $0.00 50 70 90 110 130 150 170 190 210 50 70 90 110 130 150 170 190 210 -$0.02 Delivery Index To Top Category HHs Delivery Index To Women 18-49 Results normalized to average category penetration #ARFAM6

More Intuitive, Impactful Results A 20% increase in media delivery Campaign impact doubles with a to heavy category users yields an 41% increase in media delivery to additional $47 per thousand heavy category users, vs. a 103% exposed households, compared increase in media delivery to to $19 for a 20% increase in women 18-49 media delivery to women 18-49 Impact of 20% Increase in Media Delivery Dollars per Thousand Exposed Households $47 2½ times more 103% targeting leverage $19 41%Heavy Buyer Target Demographic Target Heavy Buyer Target Demographic Target

TRA Purchaser TargetsImprove Sales Impact +28% Average ROI difference between Purchaser Targets over Age/Sex Demos Age/Sex Target Purchaser Target 161 133 135 119 104 108 109 108 98 103 100 100 100 97 94 76 W W W W A M W W 18-44 25-54 18-34 18-49 25-54 18-34 18-49 18-49 Food Brand Household Brand Personal Care Personal Care Beverage Brand Beverage Brand Household Care Personal Care Brand Brand Brand BrandSource: TRA #ARFAM6

The Demographic Dilemma Coverage + Concentration #ARFAM6

New Market SegmentationApproach

Demand Landscape Segmentation WasDeveloped Based on a Comprehensive ResearchStudy of TV Viewing + Online BehaviorQuantitative Research Overview 7,000 respondents ages 18-65 who watch at least one hour of TV programming per week Sample – Quota sample of 600 for five major markets New York, Los Angeles, Chicago, Philadelphia, Dallas 14,000 TV viewing occasions profiled A 45 minute 150+ question survey covering lifestyle attitudes, cross Demand platform media demand, technology involvement/viewership behavior to define Demand Profit Pool segments Profiling Benefits sought and situational viewing to define Need States Characteristics of favorite TV programs to define Program Palates Typing tools to overlay participating advertisers’ core prospects Extensive additional profiling on TV viewership, technology ownership and interest, demographics, etc. Media Linkage to actual TV viewing behaviors through Nielsen National Behaviors PeopleMeter panel. Online, radio, and print are also being integrated #ARFAM6

The Viewing Demand Landscape Consists of Demand Profit Pools and the Need States They Experience Viewing Demand Landscape Demand Profit Pools “To Whom ” Consumers grouped by their underlying motivations for media consumptionNeed States “For What” Viewing occasions with a distinct combination of rational and emotional benefits Source: Viewing Demand Landscape (2011); TCG Analysis #ARFAM6

Six Distinct Demand Profit Pools Define theRange of Consumer Media Engagement andPreferencesDemand Profit PoolsRole and Relationship with TV and Technology TV Media Sports Program Streamers TV Companions Trendsetters Enthusiasts Passionates Moderators Love TV Early adopters of Interest anchored Dedicated to Select content Seek to for the content and in sports. Extends favorite across multiple minimize usage companionship, technology. to other action- programs. “screens” on in the Social diffusers oriented Willing to time background programming shift to watch% of Population 16% 21% 15% 18% 15% 15%% of Primetime Viewing 19% 20% 14% 24% 12% 11%Median Age 47.1 39.8 45.1 41.1 31.3 45.4Median Income $55,200 $74,300 $70,400 $77,700 $60,700 $73,200 #ARFAM6

Demand Understanding Adds to the Traditional Demographic Knowledge of Viewers Demographic Skews by Demand Profit Pools TV Media Sports Program Streamers TV Companions Trendsetters Enthusiasts Passionates Moderators% of Total Pop 16% 21% 15% 18% 15% 15%Demographic Older, women, Middle age, higher Men, older Younger, women Younger Older, higherSummary lowest income income, with kids with kids, highest income incomeMale 34% 58% 80% 33% 49% 42%Female 66% 42% 20% 67% 51% 58%Age 18-24 9% 12% 9% 9% 31% 11% 25-44 31% 51% 34% 54% 46% 32% 45-64 60% 37% 57% 37% 23% 57%% African American 16% 18% 11% 8% 14% 11%% Hispanic 11% 21% 10% 10% 18% 14%% Children in HH 37% 60% 32% 52% 42% 42%Avg. Income (000s) $51 $71 $69 $77 $58 $71 #ARFAM6

Digital ConsumptionIndex of Total Time Spent Using Television and Streaming TV Streaming 119 121 110 102 97 94 88 88 90 87 85 77TV Companions Media Sports Program Streamers TV Moderators Trendsetters Enthusiasts Passionates #ARFAM6

Digital Consumption (Cont’d) TV Companions Media Trendsetters Sports EnthusiastsAmericanGreetings (129) Gawker Media (129) USATODAY (133)Better Homes & Garden (126) Big Lead Sports (125) Wall Street Journal (128)Scripps Digital (119) TheCollegeHumor (125) CNET (121)Shopzilla (117) NBC Universal (123) McClatchy Newspaper (120)WebMD Health (113) McClatchy Newspaper (122) Sports Illustrated (120)Time Inc. Lifestyle (113) Answers (121) LinkedIn (120) CBS Sports (121) ESPN (119) Hulu (121) HUGO Entertainment (118) NFL Internet (117) Gawker Media (116)Program Passionates Streamers TV ModeratorsHearst Women’s (144) VEVO (114) All Financial Tools (122)iVillage (136) Youtube (114)* All Broadcast Media (117)Allrecipes (135) Gawker Media (111) Travel Ad (106))SheKnows Websites (133) Jango Music (109)Time Inc. Lifestyle (133) HUGO Entertainment (109)Disney Online (132) Fox Interactive (108)Better Homes & Gardens (132) Nickelodeon Games (108)RetailMeNot (131)

Print Consumption TV Media Sports Program Streamers TV Companions Trendsetter Enthusiasts Passionates Moderators sLadies Home Journal 145 87 51 144 65 119Good Housekeeping 138 93 55 143 69 109Prevention 138 87 63 122 68 131Cooking Light 115 83 55 146 69 138Cosmopolitan 108 91 52 115 128 104People 104 112 74 123 103 93Sports Illustrated 74 131 143 90 101 73ESPN 64 144 135 77 116 70Mens Fitness 58 137 125 81 120 81Car and Driver 60 143 143 76 108 73Seventeen 107 90 50 115 143 95Game Informer 52 138 89 85 142 77 #ARFAM6

Radio Consumption TV Media Sports Program Streamers TV Companions Trendsetter Enthusiasts Passionates Moderators sAdult Contemporary 106 97 95 110 96 97Alternative 78 112 98 109 114 80CHR (Top 40) 80 115 80 103 131 85Classic Rock 100 101 130 96 98 78Country 113 90 102 102 103 94News/Talk 85 90 131 106 81 117Religious 108 90 82 118 92 111Rhythmic 75 129 73 94 137 81Rock 80 118 109 100 110 80Urban 95 131 94 90 114 72

Program Passionates:Additional Characteristics Heavily female skewing (67% vs. 51% total U.S) Most upscale segment (25% have $100k+ HH income vs. 20% total U.S.) Highest DVR penetration (75% vs. 42% total U.S.) and DVR usage Highest HD penetration (73% vs. 64% total U.S.) Almost all are cable subscribers (97%) More college graduates than general population (38% vs. 33%) Avg. weekly time on Internet: 5.6 hours #ARFAM6

Media Trendsetters:Additional Characteristics Most urban segment (48% vs. 41% Total U.S) Higher DVR penetration than general population (56% vs. 42%) Almost all are cable subscribers (97%) Avg. weekly time on Internet: 5.6 hours Wants more 3D programming on TV Watches a lot of movies on DVD Likes to watch TV with other people Likes to watch sports on TV #ARFAM6

Demand Profit Pools Have DistinctViewing Habits Top 25 Primetime Programs by Demand Profit Pool Program Passionates Media TrendsettersNote: Excludes Sports, Specials, programs with less than a 1.0 Rating and programs with less than six airings.Source: Viewing Demand Landscape (2011); Nielsen Fusion and TCG Analysis, 9/20/10-3/27/11

Key Segment Lifestyle Profile ALL MEDIA PROGRAM TRENDSETTERS PASSIONATESGo to a movie more thanonce a month 16% 30%(190) 17%(108)Expect to go to more thanone movie a month this 29% 46%(160) 28%(97)summerLikely to watch movies theylike over and over again in 25% 36%(146) 22%(89)multiple windowsPrimary car driven is lessthan 3 years old 29% 38%(128) 33%(111)Last car bought was anew car 62% 67%(108) 67%(108)

Key Segment Lifestyle Profile ALL MEDIA PROGRAM TRENDSETTERS PASSIONATESFrequently buy new pieces ofclothing that I add to my everyday 30% 39%(130) 30%(100)wardrobeLike to stay “in fashion”regardless of price 8% 15%(179) 8%(100)Try new products before otherpeople do* 31% 49%(160) 32%(105)Often try new brands because I likevariety and get bored of the same 33% 43%(129) 33%(100)old thing*When shopping, look for whatis new* 40% 52%(130) 45%(112)Like to have new and excitingexperiences* 69% 78%(113) 69%(100) *Strongly/Somewhat agree

Luxury Automobile Profile byDemand Profit Pools TV Media Sports Program Streamers TV Companions Trendsetters Enthusiasts Passionates Moderators Cadillac Owners – Demand Profit Pool Profile % 15% 25% 17% 16% 11% 16% Lexus Owners – Demand Profit Pool Profile % 13% 19% 14% 22% 16% 15%Source: Viewing Demand Landscape (2011); Nielsen Fusion and MRI Q1 2011 Fusion, 9/20/10-3/27/11 #ARFAM6

Luxury Automobiles:Top 25 Programs – Program Passionates Cadillac Owner Lexus OwnerNote: Excludes Sports, Specials, programs with less than a 1.0 Rating and programs with less than six airings.Source: Viewing Demand Landscape (2011); Nielsen Fusion, MRI Fusion and TCG Analysis, 9/20/10-3/27/11 #ARFAM6

Luxury Automobiles:Top 25 Programs – Media Trendsetters Cadillac Owner Lexus OwnerNote: Excludes Sports, Specials, programs with less than a 1.0 Rating and programs with less than six airings.Source: Viewing Demand Landscape (2011); Nielsen Fusion, MRI Fusion and TCG Analysis, 9/20/10-3/27/11 #ARFAM6

Sample Program: The Good Wife The Good WifePrimetime Program Rank among: Cadillac Owners: 19 Lexus Owners: 10 Adults 25-54: 30 Adults 18-49: 48Note: Excludes Sports, Specials, programs with less than a 1.0 Rating and programs with less than six airings.Source: Viewing Demand Landscape (2011); Nielsen Fusion, MRI Fusion and TCG Analysis, 9/20/10-3/27/11 #ARFAM6

Avid Moviegoer Profile by DemandProfit Pools TV Media Sports Program Streamers TV Companions Trendsetters Enthusiasts Passionates Moderators Avid Moviegoers – Demand Profit Pool Profile % 13% 22% 11% 17% 21% 16% Avid Moviegoers – Demand Profit Pool Profile Index 81 105 73 94 140 107Source: Viewing Demand Landscape (2011); Nielsen Fusion and MRI Q1 2011 Fusion, 9/20/10-3/27/11 #ARFAM6

Avid Moviegoers:Top 25 Programs by Demand Profit Pool Program Passionates Media TrendsettersNote: Excludes Sports, Specials, programs with less than a 1.0 Rating and programs with less than six airings.Source: Viewing Demand Landscape (2011); Nielsen Fusion and TCG Analysis, 9/20/10-3/27/11 #ARFAM6

Avid Moviegoers:Top 25 Programs by Demand Profit Pool Program Passionates StreamersNote: Excludes Sports, Specials, programs with less than a 1.0 Rating and programs with less than six airings.Source: Viewing Demand Landscape (2011); Nielsen Fusion and TCG Analysis, 9/20/10-3/27/11 #ARFAM6

Sample Program: The Good Wife The Good WifePrimetime Program Rank among: AVID MOVIEGOERS: 19 Adults 25-54: 30 Adults 18-49: 48Note: Excludes Sports, Specials, programs with less than a 1.0 Rating and programs with less than six airings.Source: Viewing Demand Landscape (2011); Nielsen Fusion, MRI Fusion and TCG Analysis, 9/20/10-3/27/11 #ARFAM6

Sample Program: The Good Wife The Good WifePrimetime Program Rank among: AVID MOVIEGOERS: 19 TRENDSETTERS: 14 PRGM PASSIONATES: 8 STREAMERS: 34 Adults 25-54: 30 Adults 18-49: 48Note: Excludes Sports, Specials, programs with less than a 1.0 Rating and programs with less than six airings.Source: Viewing Demand Landscape (2011); Nielsen Fusion, MRI Fusion and TCG Analysis, 9/20/10-3/27/11 #ARFAM6

Summer Movies Plan To See STREAMERS MEDIA PROGRAM TRENDSETTERS PASSIONATES BRIDESMAIDS 33% 45% 37% HARRY POTTER DEATHLY HALLOWS II 50% 52% 45% HANGOVER II 37% 56% 38% X-MEN: FIRST CLASS 42% 52% 34% TRANSFORMERS 3 30% 37% 26%Source: CBS Entertainment Panel Survey 5/31-6/4/2011 #ARFAM6

Program Testing Results 2 Broke Girls Person of Interest Highest Program Test Score Highest Testing Drama in CBS History! since Chicago Hope (1994)Source: CBS 2011 Pilot Testing #ARFAM6

Program Testing Results 2 Broke Girls Person of InterestMedia Trendsetters Index: 116 Media Trendsetters Index: 132Program Passionates Index: 103 Program Passionates Index: 137Source: CBS 2011 Pilot Testing #ARFAM6

Thank You #ARFAM6

The Television Audience Redefined: An Update

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