MEASURING CROSS-PLATFORM OUR PRESENT AND OUR FUTURE Darren Moore VP, Global Solutions Marketing, Marketing Effectiveness October 1, 2014 WE’RE FOCUSED ON THE THREE FUNDAMENTAL QUESTIONS FOR MARKETERS REACH RESONANCE REACTION VIDEO, AUDIO, TEXT ACROSS PLATFORMS PAID, OWNED, EARNED Copyright ©2014 The Nielsen Company. Confidential and proprietary. GLOBAL ANSWERING CLIENTS’ BIGGEST QUESTIONS 2 WITHIN “REACH,” NIELSEN HAS HISTORICALLY BEEN KNOWN FOR OUR TV RATINGS SERVICE WE PROVIDE TV MEASUREMENT SERVICES IN 30 COUNTRIES GLOBALLY Americas Europe APMEA • • • • • • • • • • • • • • • • • • • • • • • • • • Copyright ©2014 The Nielsen Company. Confidential and proprietary. • • • • Dominican Republic Mexico Puerto Rico United States Venezuela Croatia Czech Republic Cyprus Finland Greece Ireland Italy Lebanon Macedonia Poland Serbia Slovenia Sweden Ukraine Australia Hong Kong India Indonesia Malaysia New Zealand Philippines South Africa South Korea Taiwan Thailand THE PROCESS: SELECT A REPRESENTATIVE SAMPLE OF HOMES RECRUIT PANELISTS COLLECT TUNING & VIEWING INFORMATION CALCULATE THE RATINGS REPORT THE RESULTS VIEWING OF LIVE AND DVR’ED PROGRAMMING AND ADS ON TELEVISIONS 3 A SURGE OF INNOVATION… BLACK & WHITE TV FIRST SATELLITE BROADCAST RISE OF CABLE TV 1950s 1960s 1970s DIGITAL MORE AND ADVERTISESUPPORTED INTERNET NETWORKS REVOLUTION 1980s Copyright ©2014 The Nielsen Company. Confidential and proprietary. FIRST DOWNLOADABLE CONTENT SOLD 1990s TV XBOX LIVE DVR MP3 PLAYERS VIDEO STREAMING 2000 - 2005 SMART PHONES HDTV TABLETS OVER-THE-TOP DISTRIBUTION 2006 - 2011 DIGITAL SOCIAL TV DIGITAL RADIO VIA MOBILE AND TABLET APPS CLOUD-BASED CONTENT DELIVERY ENHANCED CONTENT SEARCH CAPABILITIES PERSONALIZED RECOMMENDATIONS CAMERA IN DEVICES/TVLEARNING THE CONSUMER TARGETED ADS … HAS LED TO DRAMATIC, ACCELERATING CHANGE 2012 AND BEYOND CONNECTED WORLD 4 TV VIEWERSHIP HAS EXPANDED BEYOND THE TV SET 0:34 TIME-SHIFTED TV 0:10 DVD/BLU-RAY DEVICE 0:13 GAME CONSOLE Time-shifted TV continues to grow… 1:07 INTERNET ON A COMPUTER Copyright ©2014 The Nielsen Company. Confidential and proprietary. … as live TV declines Digital device use grows at a faster pace 5:10 LIVE TV Q1 2014 0:03 MULTIMEDIA DEVICE 1:12 SMARTPHONE 2:46 AM/FM RADIO Source: The Nielsen Cross-Platform Report Quarter 1 2014; Exhibit 1 5 OUR DEFINITION OF “CROSS-PLATFORM” BY ADVERTISING MODEL BY DELIVERY TYPE Copyright ©2014 The Nielsen Company. Confidential and proprietary. BY DEVICE TYPE BY USAGE 6 Copyright ©2014 The Nielsen Company. Confidential and proprietary. THE INDUSTRY IS PURSUING MULTIPLE AD MODELS LINEAR AD MODEL DYNAMIC AD MODEL 7 SIX FUNDAMENTAL ELEMENTS OF CROSSPLATFORM MEASUREMENT Copyright ©2014 The Nielsen Company. Confidential and proprietary. COMMON, SINGLE-SOURCE, HIGHLY REPRESENTATIVE PANEL DIGITAL COVERAGE AND SAMPLE SIZE TRUE COMPARABILITY TO TV MOBILE MEASUREMENT VIEWABILITY ACCREDITATION AND CONSTANT AUDITING 8 OUR CROSS-PLATFORM METHODOLOGY TWO TYPES OF VIDEO CONTENT NATIVE DIGITAL CONTENT COMPARABLE OVERNIGHT RATINGS FOR CONTENT AND CAMPAIGNS SOFTWARE METER BIG DATA ENABLED MEASUREMENT CROSS PLATFORM RATINGS Copyright ©2014 The Nielsen Company. Confidential and proprietary. ONE CLIENT-SIDE IMPLEMENTATION TV ORIGINATED CONTENT DIGITAL RATINGS ONE ENCODING PROCESS GOLD STANDARD PROCESS UNIVERSAL MRC ACCREDITED TV RATINGS Nielsen Online Campaign Ratings is accredited by the Media Rating Council (MRC). Featured elements including DMA, verification and viewability are not currently accredited, but are undergoing review by MRC. 9 ONLINE CAMPAIGN RATINGS IS THE BASIS FOR MEASURING DYNAMIC ADVERTISING AUDIENCES Directly measures demographics from Facebook’s user registry, surpassing other methods of reporting campaign audience 1.32 BILLION MONTHLY ACTIVE USERS Delivers unique reach and frequency across campaigns and by publisher, creative and placement overnight WITH demographics and viewability Provides Online Gross Rating Points (GRPs) consistent with Nielsen TV Ratings Copyright ©2014 The Nielsen Company. Confidential and proprietary. NIELSEN ONLINE CAMPAIGN RATINGS First and only Internet measurement system with demographic ratings for campaigns accredited by the MRC (Media Ratings Council) OCR is Nielsen's solution to overcome the major industry issues facing digital brand advertising and measurement today: • Audience fragmentation • Metric proliferation • Need for real-time actions and decision making • Lack of a cross-platform comparability with TV 10 ONLINE CAMPAIGN RATINGS REVEAL STRONG IMPROVEMENT OPPORTUNITIES FOR MARKETERS • On average, 59% of impressions on-target: • 32% on-target for narrowly-defined groups1 • 84% on-target for broadly-defined groups2 • Wide variation of performance against objectives across campaigns – a few in the high 90%, others in single digit percentages Copyright ©2014 The Nielsen Company. Confidential and proprietary. • Sites with better user registration information and more focused content tend to achieve the best on-target delivery • Data is being used to identify execution errors and optimize delivery, even doubling the on-target percentage in some cases 1. Narrowly-defined groups are single gender, less than 15-year age range 2. Broadly-defined groups are all genders, greater than 30-year age range US data as of August 2014 11 DEVICE CONNECTED DEVICES TABLET SMARTPHONE Fall 2014 Fall 2014 ADS Fall 2014 Fall 2014 Linear TV PC PROGRAMS Digital Dynamic TV SET AD MODEL Copyright ©2013 The Nielsen Company. Confidential and proprietary. MEASUREMENT FOOTPRINT TODAY AND TOMORROW CONTENT 2015 DPR Q4 2014 Q4 2015 ADS 2015 OCR OCR OCR In currency (C-3) or where comparable Digital Ratings are provided 12 ONLINE CAMPAIGN RATINGS: GLOBAL ROLLOUTS CANADA MAY 2013 UK OCT 2012 FRANCE DEC 2013 CHINA 2015 *XCR as well US AUG 2011 GERMANY, ITALY APRIL 2013 *XCR as well JAPAN 2015 Copyright ©2014 The Nielsen Company. Confidential and proprietary. MEXICO 2015 BRAZIL OCT 2013 • • • AUSTRALIA APRIL 2013 Locally recruited Locally representative Designed for cross-platform capability with local traditional ratings 13 REACHING BEYOND … Bringing fresh insights to maximize ROI – Single Medium and Cross-Platform • What will extend digital reach? Bigger digital investments, continued market penetration • New insights and measurement tools will foster more conversations and negotiations around different monetization models to account for cross-platform viewing • The consumer continues to not differentiate how they get their entertainment, Copyright ©2014 The Nielsen Company. Confidential and proprietary. opting for the best screen at most convenient time • And once you reach your target … what will enhance digital RESONANCE? Better cross-platform communication, creative and consistency – harnessing real-time optimization opportunities 14