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ADVERTISING IN A CROSS-PLATFORM WORLD Lance Brothers SVP, Business Development December 9, 2014
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ADVERTISING IN A CROSS-PLATFORMWORLD
Lance BrothersSVP, Business DevelopmentDecember 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
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 computerSource 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 consumershave 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 MOBILEMobile is the primary growth platform for consumers
1:35
2:27
0:31
4:38
1:320:22 0:28
2:19 2:19
0:36
4:31
1:260:18 0:14 0:20
2:51
2:12
0:43
4:28
1:200:12 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
TODAY’S PLATFORM PROLIFERATION CHALLENGES MARKETERS TO EFFECTIVELY & EFFICIENTLY REACH & AFFECT CONSUMERS
WHAT ARE CLIENTS TELLING US?
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0%
79%
21%
14%
16%
70%
Don't measureeffectiveness/ROI
Use one set of metricsacross all screens
Use variety of metricsspecific to individual…
Current
Preferred
MARKETERS WANT COMMON METRICSBut 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 IMPORTANTMarketers 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%
SOME THINGS WE’RE LEARNING…
REACH X RESONANCE = REACTION
CROSS-PLATFORMAUDIENCE DELIVERY
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NIELSEN CLIENT CROSS-PLATFORM CAMPAIGN OBJECTIVES
I WANT TO MAXIMIZE UNDUPLICATED REACH(60% CAMPAIGNS)
ONLINE30%
TV70%
SINGLE EQUITY MESSAGE
EXAMPLE
Source: Nielsen Ad Solutions
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I WANT TO MAXIMIZE AUDIENCE OVERLAP(40% CAMPAIGNS)
ONLINE30%
TV70%
TWO MESSAGES,EQUITY & PROMOTIONAL
EXAMPLE
I WANT TO MAXIMIZE UNDUPLICATED REACH(60% CAMPAIGNS)
ONLINE30%
TV70%
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
TVONLY63%
BOTH5%
ONLINEONLY2%
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
TV C
ON
SUM
PTIO
N
INTE
RN
ET C
ON
SUM
PTI
ON
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 Indices100 = random duplication
DIGITAL REACH
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ONLINE CAMPAIGNS CAN DELIVER HIGH LEVELS OF REACHBUT TYPICALLY REQUIRE MORE IMPRESSIONS THAN TVReach vs. Impressions: TV vs. Online
LOW MEDIUM HIGH
ADVERTISING IMPRESSIONS
100
50REA
CH
(%
)
U.S. National TelevisionU.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
>19,000CAMPAIGNS MEASURED WITH REACH METRICS COMMON TO OTHER MEDIA
>500UNIQUE 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 PercentBy 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
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
100index
148index
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
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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