Television Bureau of Advertising

Video Advertising in a Multi-Screen World

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Popular Consumer Insight:

In a Post-Television World, the consumer is in control and will choose what, when, where and on what to watch, creating his own personal media smorgasbord.

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Popular Marketing Insight:

In a Post-Television World, new ways must be found to reach and engage with consumers, on their terms, not the marketers’ terms.

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Maybe so, if and when a Post-Television World

arrives.

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Television – good old “Old Media” TV – has never

been more highly consumed… and it’s still

growing.

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Let’s look at video in all forms and see what’s real

today.

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Consumer Usage of the Medium Is Growing

Sources: Daily Usage Figures: The Nielsen Company, NTI Annual Averages; Prior to 9/87: Audimeter Sample; 9/87 to date: People Meter Sample. Ad and Promo Exposure: Council for Research Excellence – Video Consumer Mapping Study 2009.

Household viewing is nearing 8.5 hours, daily. Americans are exposed to nearly 72 minutes of video ads and promos per day.(Hr:Min/Day)

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Television Viewing Is a High-Growth Activity

Sources: Daily Viewing: The Nielsen Company, NTI Annual Averages. Monthly estimate: Nielsen 4Q09 Three-Screen Report.

Each year, time spent viewing TV is increasing across most major demographics. Each month the average American watches over 153 hours of TV at home.

Men Women Teens Children2003 4:29 5:05 3:07 3:142004 4:26 5:07 3:07 3:162005 4:31 5:17 3:19 3:192006 4:35 5:17 3:22 3:262007 4:39 5:19 3:24 3:272008 4:49 5:25 3:27 3:282009 4:54 5:31 3:26 3:31

Hours:Minutes /Day

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1010

Live TV Ads

4th Quarter 2009 Video Viewing by Distribution Channel

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Weekly Time Spent Hrs:Min

Source: Nielsen 3 Screen Report Volume 7

Traditional Live TV 34:37Time Shifted TV 2:04Watching Video on Internet 0:22Watching Video on Mobile Phone0:04Total Video Consumption 37:07

4th Quarter 2009 Video Viewing by Distribution Channel

Traditional Live TV 34:37 93.3%Time Shifted TV 2:04 5.6%Watching Video on Internet 0:22 1.0%Watching Video on Mobile Phone0:04 0.2%Total Video Consumption 37:07

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Weekly Time Spent Hrs:Min

Source: The Nielsen Company Three Screen Report Volume 7

Weekly Time Spent in Hours:Minutes By Age Demographic 4Q 2009

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K2-11 T12-17

A18-24

A25-34

A35-49

A50-64

A65+ P2+

On Traditional TV 25:17 23:24 26:14 31:58 35:40 42:38 47:21 34:37

Watching Timeshifted TV 1:33 1:15 1:28 2:58 2:44 2:22 1:10 2:04

Watching Video on Internet 0:04 0:15 0:39 0:35 0:33 0:17 0:06 0:22

Mobile Subscribers Watching Video on a Mobile Phone

n/a 0:21 0:08 0:06 0:01 <0:01 n/a 0:04

Source: The Nielsen Company, Three Screen Report, 4th Qtr 2009.

Timeshifted Viewing:A Reality Check

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National DVR Penetration is on the Rise…

But the Growth Rate is Slowing

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+33.7% +30.4% +18.0%

Source: The Nielsen Company

Nielsen Reports 97% of TV Viewing is to Real Time Broadcasts

Source: TVB Analysis of data presented in The Nielsen Company’s Three Screen Report, 4th Qtr 2009

Of the 3% Timeshifted Viewing About 45% Watch the Commercials

Source: TVB Analysis of data presented in The Nielsen Company’s Three Screen Report, 4th Qtr 2009

About 1.6% of Viewing is Commercial Fast-Forwarded

About 10% of Viewers Account for 72% of Timeshifted Viewing

% of all Viewers % Shifters % of Timeshifting

Heavy Shifters 3.5% 10.0% 39.0%Medium Shifters 7.1% 20.0% 33.0%Light Shifters 24.8% 70.0% 28.0%

18Source: TVB Analysis of The Nielsen Company DVR Study

Time-Shifting Facts General Primetime Dramas are the most

timeshifted genre.

Sports and News programs are the least timeshifted.

Most playback – 63% – occurs on the same day as recorded… 42% in the same hour.

Source: The Nielsen Company

Broadcasting & Local Cable

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The Local Programming of Choice is on Local TV Stations… 195 of the Top 200 Shows in

2009 Were Broadcast

Source: The Nielsen Company, Galaxy Explorer; 9/22/08-5/20/09, Ranked by A25-54 Live+SD US AA % (ties broken by 000’s)

1-25 25 0 0 2526-50 25 0 0 2551-75 23 2 0 25

76-100 25 0 0 25101-125 25 0 0 25126-150 24 1 0 25151-175 25 0 0 25176-200 23 2 0 25

Total 195 5 0 200% 97.5% 2.5% 0.0% 100%

Program Broadcast SubscriptionRank Stations TV PBS Total

Prime Programs Ranked by Adult 25-54 Ratings

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The Big Problem in Converting Cable Network Audience to Local Ad Viewers:

Satellite penetration is now at 32.9% of subscription HHs

Satellite HHs do not receive local cable ads. They do get local TV station ads.

Satellite!

Source: The Nielsen Company, May’10 DMA Media Related Universe Estimates

Broadcast’s Reach Advantage

Broadcast TV has the potential to reach 100% of TV HHS

Local cable systems have the potential to reach 61.5% of TV HHS

39.5 % of viewers cannot see local cable TV ads

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Let’s Look at Online Video

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April 2010 Online Video Profile

Unique Viewers 133,506,000 (45% U.S. Pop.)

Video Streams: 9,410,533,000Streams Per User: 70.5Time Per Stream: 2:57

25Source: Nielsenwire for April 2010

Top Online Video Brands April 2010

1. YouTube 97,115,00033.2%

2. Yahoo! 27,579,000 9.53. Facebook 24,248,000 8.24. MSN/Bing 14,654,000 5.05. Hulu 13,084,000 4.5

26Source: Nielsenwire for April 2010

Uniques % U.S. Pop.

Top Online Video Brands April 2010

1. YouTube 4,943,28852.0%

2. Hulu 687,860 7.33. Yahoo! 204,086 2.24. MSN/Bing 170,671 1.85. Fox Interactive 133,942 1.4

27Source: Nielsenwire for April 2010

Streams (000) % Total

YouTube Leanback

“We’re looking at how to push users into a passive-consumption mode, a lean-back experience.”

– Jamie DavidsonYouTube Product Manager

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Marketing Consideration: The Heavy User

Twitter: 1 in 5 Twitter users has 10 followers, follows 10

and has twittered 10 times 73% have Twittered less than 10X

Facebook: 12% of users = 66% of visits 34% of users = 3% of visits

U.S. Internet: 16% of web users click on ads 8% of users = 80% of Clicks

Mobile Video

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Mobile Video Growth

Monthly Reach of Mobile Video Viewers

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4Q ’09 4Q ’0817,583,000 11,198,000 +57%

Source: Nielsen Three Screen Report Vol. 7

Mobile Video Usage

Monthly Time Spent per Mobile Video User

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4Q ’09 3Q ’09 4Q ‘08

3:37 3:15 3:37

Source: Nielsen Three Screen Report Vol. 7

Mobile Video

OMVC – Open Mobile Video Coalition TV broadcasts to mobile devices

(not broadband data streams – broadcasts) Test/exhibition in Washington, D.C.

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One last thought that goes beyond the

#s

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More People Feel Broadcast Television is Most Involved in Their Community

35Source: TVB Media Comparisons Study 2010.  Knowledge Networks Inc. Custom Survey.

Persons 18+

Television Advertising Has the Best Perception Among Persons 18+

36Source: TVB Media Comparisons Study 2010.  Knowledge Networks Inc. Custom Survey.

Most Persuasive

Thank You

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