With Internet and mobile media growing faster than we can consume it, the only way to capture really big audiences in the future will be to aggregate them across TV, Internet and mobile Internet screens. Yankee Group expects TV ad market revenue to drop by more than $2.2 billion in 2009, and not to bounce back past 2008 values until 2012. Just as the music industry was forced to reinvent itself when digital downloads undermined its physical distribution models, the Anywhere Network’s abundance of content and advertising inventory will similarly reshape the TV, video, print and mobile media industries. In this webinar, Yankee Group analyst Carl Howe explores how to get consumers’ attention in the age of Anywhere media.

1. Getting Consumers’ Attention
Carl D. Howe, Director
Anywhere Consumer Research
August 25, 2009
© Copyright 2009. Yankee Group Research, Inc. All rights reserved.
© Copyright 2009. Yankee Group Research, Inc. All rights reserved. Getting Consumers’ Attention June 2009
August 2009 Page
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2. © Copyright 2009. Yankee Group Research, Inc. All rights reserved.
© Copyright 2009. Yankee Group Research, Inc. All rights reserved. Getting Consumers’ Attention June 2009
August 2009 Page
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3. My Main Point Today
Anywhere Media is
transforming media
and advertising
© Copyright 2009. Yankee Group Research, Inc. All rights reserved. Getting Consumers’ Attention August 2009 Page 3

4. Agenda
• The Anywhere revolution
• Changing consumer behavior
around media
• Recommendations
• Q&A
© Copyright 2009. Yankee Group Research, Inc. All rights reserved. Getting Consumers’ Attention August 2009 Page 4

5. Connectivity Sparks
• A common network
• Broadband demand
• Wireless ubiquity
These are forming the
Anywhere Network
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6. Anywhere Is a Revolution
Battles under way and ahead will
transform the world we live in.
This will bring the largest technology
change in our lifetimes.
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7. Mobility Is Driving Anywhere
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8. Wireless Growth Is Driving Italy Past the
Anywhere Tipping Point
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9. And Japan…
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10. . . . And Even the U.S.
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11. Poll 1
Have you watched a television
show on your computer in the last
30 days?
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12. Food for Thought: NBC Universal’s “Heroes”
Watch Episodes Online for Free
• NBC Universal Total Audience Measurement Index (TAMi)
• Second episode of “Heroes”
• Note: Log scale
• Audience size = 17 million people
• Implications and repercussions
• Pay TV, ISP, media
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13. But TV Audiences Have Been Shrinking
Source: Yankee Group and TV Bureau of Advertising, 2009
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14. Internet Sites Are Growing Dramatically
Source: Yankee Group, Internet Systems Consortium, MediaPost, ClickZ, AllBusiness.com, Media Buyer Planner,
Zooknic.com, 2009
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15. Mobile Internet Domains Are Growing More Than
500 Percent a Year
Source: Yankee Group and dotMobi, 2009
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16. Internet Ad Prices Are in Free Fall
Source: Yankee Group, Internet Systems Consortium, MediaPost, Clickz, AllBusiness.com, Media Buyer Planner,
Zooknic.com, 2009
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17. Agenda
• The Anywhere revolution
• Changing consumer behavior
around media
• Recommendations
• Q&A
© Copyright 2009. Yankee Group Research, Inc. All rights reserved. Getting Consumers’ Attention August 2009 Page 17

18. Consumers
are drowning
in a surplus of
media choice
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19. U.S. Consumers Now Spend the Most Time Online
How much time do you spend daily on the following activities?
* Yankee Group estimate; this response was not listed in this survey question
Source: Yankee Group Anywhere Consumer: 2008 U.S. Entertainment Survey
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20. Poll 2
Which activities do you do
while watching television?
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21. Plus They Multitask More
Which of the following activities do
you do while watching TV?
E-Mail 60%
Surf the web 56%
• More than half of respondents
Talk on the phone 53%
acknowledge that they are online or
Read a magazine 36% talking on the telephone while
Read the newspaper 33% watching television.
Instant message 27%
• Advertisers take note: This shows
None of the above 16%
consumers are saturated with
Listen to the radio 11% media.
SMS 8%
Other 11%
0% 10% 20% 30% 40% 50% 60% 70%
Percent of Respondents
n = 1,503
Source: Yankee Group Anywhere Consumer: 2008 U.S. Entertainment Survey
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22. Remember This?
Online Ad Revenue Is a Third of TV Revenue
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23. Is Anywhere Taking the Media Industry Here?
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August 2009 Page
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24. Remember Today’s Main Point
Anywhere Media is
transforming media
and advertising
© Copyright 2009. Yankee Group Research, Inc. All rights reserved. Getting Consumers’ Attention August 2009 Page 24

25. Changing the Channels to Anywhere Media
TV Internet Mobile Anywhere
media media media media
Screen independent, on demand and easy to consume
Mobile Other
TV Internet
Internet Devices
TV Internet Mobile Anywhere
consumers consumers consumers Consumers
Anywhere Media is media delivered to consumers when and
where the consumer will pay attention to it.
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26. Consumers Use Internet Video as Video on Demand
Why do you watch full episodes of TV
shows online?
• 82% of Internet video viewers watch
Missed the episode when it was
82%
TV shows online because they
on TV missed the episode on TV.
Catching up with older episodes 55%
• VoD numbers pale in comparison.
Has fewer commercials 36%
Wanted to watch the program • DVR is more about ad skipping than
again
30% time shifting.
Was interrupted while watching on • 79% of DVR owners fast-forward
TV
28% through commercials most or all of the
time.
Like older/classic TV shows 20% • DVR owners are more likely to watch
online when they fail to watch or record
Can watch outside of my home 10%
an episode.
Other 7% • Internet video is not yet compelling
enough for viewers to cancel their
0% 20% 40% 60% 80% 100% pay-TV services.
.
n = 294 (watch full episodes of TV shows online)
Source: Yankee Group Anywhere Consumer: 2008 U.S. Entertainment Survey
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27. AT&T’s Masters Coverage Showed Promise
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Page 27

28. Anywhere Media Results in the U.S.
Advertising revenue for TV won’t pass 2008 levels until 2012.
$431 $566
$115 $184 $241 $323
Mobile Internet
$28,436 $31,127
$23,204 $25,642 Internet
$23,632 $23,289
TV
$52,675 $50,459 $50,357 $51,686 $53,791 $56,177
2008 2009 2010 2011 2012 2013
© Copyright 2009. Yankee Group Research, Inc. All rights reserved. Getting Consumers’ Attention August 2009 Page 28

29. Agenda
• The Anywhere revolution
• Changing consumer behavior
around media
• Recommendations
• Q&A
© Copyright 2009. Yankee Group Research, Inc. All rights reserved. Getting Consumers’ Attention August 2009 Page 29

30. Recommendations
Media companies:
• Think twice before committing to an ad-only business model.
• Embrace a flexible content platform.
Advertisers:
• Negotiate extra spots in 2009 and 2010 with your media buys.
• Look for ways to be less obtrusive.
• Demand measurable results.
Network operators
• Recognize that video is the lead property.
• Don’t overpromise behavioral ad data.
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31. And Recognize That Mobile Isn’t the Last Screen
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32. And New Kinds of Consumers
Need New Services
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33. Conclusions
• Consumer attention will limit media and advertising growth.
• Anywhere Media is transforming media and advertising.
• Consumers are drowning in too much media.
• Consumers will choose how and where they access media.
• The media business must adapt to consumer choice.
• TV advertising will get a reality check during the next two years.
• Don’t think mobile is the last screen.
© Copyright 2009. Yankee Group Research, Inc. All rights reserved. Getting Consumers’ Attention August 2009 Page 33

34. Q&A
Did you know? Teens still discover music through friends and radio.
Yankee Group’s Attitude & Behavior
Surveys track this data and more.
Sign up for a complimentary snapshot of
our most recent results at
http://www.yankeegroup.com/live/survey_
data_snapshot.html.
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35. Q&A
Did you know? Of people with a mobile phone, smartphone users spend
significantly more time using the mobile Web.
Yankee Group’s Attitude & Behavior
Surveys track this data and more.
Sign up for a complimentary snapshot of
our most recent results at
http://www.yankeegroup.com/live/survey_
data_snapshot.html.
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36. Thank you!
Carl D. Howe, Director, chowe@yankeegroup.com
Next Yankee Group webinar:
Pinning Down Cloud Computing
September 29, 2009
Register at www.yankeegroup.com
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