VIDEO MEASUREMENT: RESULTS
UNVEILED
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
PRESENTATION SPEAKERS
Cheryl Idell
Kris Magel
Adam Gerber
Eric Solomon
EVP, Client Solutions,
Nielsen
Chief Investment Officer,
Initiative
VP, Sales Development
and Marketing,
ABC Television Network
SVP, Global Product Leadership,
Nielsen
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
AGENDA
Time
Topic
Presenter
11:00 am
Evolution of Video and Measurement
Cheryl Idell
11:05 am
Agency Perspective
Kris Magel
11:20 am
Media Perspective
Adam Gerber
11:35 am
Nielsen Roadmap
Eric Solomon
11:45 am
Roundtable discussions:
1. How will the video business evolve (3-5 yrs)?
2. If you were Nielsen CEO, what investments would
YOU make (2-3 years)?
12:15 pm
Open group dialogue
4
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
C360 2013 INTRODUCTION
Third wave of TV
innovation—place
shifting—is upon us
Consumers are
primed and ready
The Big Bang
Distributors and
programmers are
going big in 2013
and 2014
Measurement is a
critical enabler and
must be in place
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
CONSUMERS ARE DRIVING RAPID CHANGE
Accelerating change in our future
2006–
Present
1990s–
2005
1970s
& 1980s
Digital & Internet
Revolution
Rise of
More AdvertiserCable TV Supported Networks
VCR
DVD
Video
Games
DVR
Smartphones
HDTV
Tablets
Over-the-top
Distribution
Smart TV
with Social
Capabilities
App-Driven
Digital World
VOD
1950s
& 1960s
First Satellite
Broadcast
Black &
White TV
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
MEDIA COMPANIES ARE RAPIDLY MAKING
CONTENT AVAILABLE ON MOBILE DEVICES
104
118
April 2013
February 2014
Most programmers have announced a substantial expansion
of ad-supported simulcasts and VOD with a DAI adload until c3
is measureable—and then both models will be in the market.
OPERATING SYSTEMS
CONTENT TYPE
43% | 24%
57% | 76%
62% | 35%
15% | 36%
23% | 28%
iOS only
iOS and Android
Short Form
Live Streaming
Full Episode Vod
AD MODELS
45% | 50%
Digital+Pre-Roll
3% | 10%
DAI
7% | 11%
Linear
44% | 29%
No Advertising/Banner Only
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
NIELSEN IS CONDUCTING RESEARCH
TO FUEL MOBILE MEASUREMENT
•
Electronic Mobile Measurement Panel = 16,000
•
National Probability Survey = 4,000
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
TABLET SHARING
Almost half of respondents share their tablet with a household member.
Household members aged 2–12 are most likely to use the respondent’s tablet.
Yes
48%
34%
35%
51%
51%
47%
66%
49%
59%
68%
51%
50%
61%
66%
81%
66%
65%
49%
52%
49%
33%
53%
51%
41%
32%
49%
50%
39%
34%
19%
No
Weighted data; among tablet users (N=2,024) and among persons living with tablet users (N=3,892).
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
CO-VIEWING BY GENRE
User-generated content is the genre most likely to be co-viewed, and it is co-viewed
almost as much on tablets as it is on smartphones.
56%
53%
36%
33%
26%
31% 30%
28%
27%
19%
14%
14%
13%
18%
16%
Tablet
13%
8%
4%
Weighted data; among all viewers (1,590 tablet; 2,370 smartphone).
Smartphone
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
THE INDUSTRY NEEDS RESOLUTION AROUND
SEVERAL BUSINESS ISSUES
Privacy
Digital Rights
Business Models
Metrics
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ADVERTISING PERSPECTIVE
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
HOW NEW CHANNELS, DATA AND TECHNOLOGY CAN
MAKE TV ADVERTISING EVEN MORE POWERFUL
13
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
CHANGING LANDSCAPE HAVE YOU WORRIED?
• TV Fragmenting, usage levels falling, prices climbing
• DVRs enabling commercial avoidance in half of US homes
• Consumption across screens exploding
• Younger audiences favor portable screens, gaming, online
and mobile video, hate traditional ads
• Multi-screen usage is distracting viewers, making TV
advertising less effective
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
YES, IT’S TRUE…
Traditional TV usage has begun to fall among younger viewers
0%
-3%
-2%
4Q10
-3%
-6%
4Q11
-5%
4Q12
4Q13
W18-24
M18-24
W18-34
-2%
-4%
W25-54
M18-34
W18-49
M18-49
-1%
-3%
-1%
-6%
-5%
M25-54
Source: Nielsen Media View, TV Usage 4Q10–4Q13
W35-64
M35-64
W50+
M50+
T12-17
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
CONSUMPTION BY PLATFORM IS DIVERSIFYING
% Viewing by Platform, Hulu
4%
14%
11%
15%
28%
40%
61%
Source: Hulu internal data
Connected TV
PC
82%
1Q12
Mobile/Tablet
1Q13
45%
4Q13
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
FUELED BY GROWTH IN TECHNOLOGY
+60%
250
200
2012
150
+71%
+88%
2017
+25%
100
+26%
+76%
+20%
50
+222%
0
DVR
Source: MAGNAGlobal Projections
VOD
OTT
Broadband Smartphone
Contracts
Tablets
Connected
TV's
Connected
Consoles
17
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
ON-DEMAND VIEWING IS ON THE RISE
Hours Per Week—On Demand Viewing
VOD, DVR, PC, Mobile Video
5.7
5.2
4.8
4.7
4.3
3.9
3.3
3.1
1.9
2.1
C2-11
2.4
2.2
2.3
2.5
4.5 4.6
4.4
2.6
1Q11
1Q12
1Q13
T12-17
A18-24
A25-34
A35-49
Source: Nielsen Cross Platform Report; On-demand viewing includes DVR playback, PC streaming, and video on mobile phones.
A50-64
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
LARGELY OFFSETTING DECREASES
IN LIVE TV VIEWING
Persons 2+ Live vs On-Demand
36.50
3.08
36.56
35.81
3.49
+63
min
4.13
On Demand
33.42
32.32
1Q11
1Q12
-59 min
Source: Nielsen Cross Platform Report; On-demand viewing includes DVR playback, PC streaming, and video on mobile phones.
32.43
Live TV
1Q13
19
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
TV STILL REPRESENTS THE VAST MAJORITY OF VIDEO
USAGE, EVEN AMONG YOUNGER AUDIENCES
Hours Per Month w/Video
4.5%
250
7.3%
7.5%
10.5%
200
15.1%
3.5%
11.4%
C2-11
T12-17
% Online/
Mobile
Video
150
100
50
0
A18-24
Live TV
Source: Nielsen Cross Platform Report, 1Q13
Time-Shifted TV
A25-34
Online Streaming
A35-49
A50-64
P2+
Mobile Video
20
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
TODAY’S VIDEO ECOSYSTEM OFFERS
OPPORTUNITY TO COMPLEMENT TELEVISION
IN WAYS NEVER BEFORE POSSIBLE
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
VIDEO IN 2014 REQUIRES A HOLISTIC APPROACH
• Demand for traditional TV is sufficient to continue to result
in CPM inflation
• Traditional TV is not reaching some of your best customers
• Alternative sources of video reach lighter TV viewers
• Data can help us discover untapped ways of reaching
customers through traditional TV
22
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
TV HAS NEVER BEEN PERFECT ON ITS OWN
Heaviest Viewers
% U.S.
% TV Viewing
Source: Nielsen, 12/13 TV Season Average
Average Viewers
Lightest Viewers
20%
40%
40%
74%
15%
11%
23
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
ON-DEMAND HELPS US BALANCE OUT
LIGHT TV VIEWERS
% Share of Media Usage
11%
15%
35%
Heavy TV Users
74%
37%
Avg. TV Users
Light TV Users
25%
TV Total Day
Hulu.com
Source: Nielsen 12/13 TV Season Average; Hulu.com internal data; Note: 3% of Hulu.com visitors did not watch TV for 6+ minutes in Dec. 2012.
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Copyright ©2014 The Nielsen Company. Confidential and proprietary.
THE BEST PLACE TO FIND LIGHT TV VIEWERS
IS OUTSIDE THE HOME
Viewed last 30 days
by A18–49 Light TV Viewers
152
134
130
126
126
125
124
120
115
Source: 2013 Spring GfKMRI. A18–49 Q IV & QV TV viewing quintiles and DPb Media.
112
108
25
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
EMERGENCE OF AUDIENCE-BUYING
IN TV AND VIDEO
Complementary reach, frequency and purity against key target segments
Environment-focused approach:
Content-driven, multi-screen, sponsorship
Audience-focused approach:
Data and technology to target customers, not age/sex demos
26
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
A HOLISTIC VIDEO APPROACH WILL
COMPLEMENT TV, NOT REPLACE IT
ENVIRONMENT
AUDIENCE
AMPLIFICATION
– On-Demand
– Leverage data and
technology
– Social TV amplification
– Across all screens
TV, VOD, online, mobile,
tablets
– Web-endemic original
programming
– Cinema, place-based
– Multi-cultural
– Extend reach and core
target composition
– Target customers, not
age/sex demographics
– Target
exposed/unexposed TV
viewers
– Custom content
– Multi-screen experiences
– Gamification
Total market approach
27
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
IN THE LONG RUN, A HOLISTIC APPROACH
EXPANDS THE MARKET AND IS GOOD FOR
MARKETERS
One video budget
across all screens
More competitive
landscape
Greater use of data
and technology
Long-term
view
Traditional TV, on-demand
across all screens, cinema
and place-based
Adding high quality
impressions at efficient
prices to the TV marketplace
To deliver efficient, incremental
reach of customers and more
attention to every ad
Influx of high quality original
programming, distributed
across more players and
platforms, will ultimately result
in more choice and greater
efficiency for advertisers
28
MEDIA PERSPECTIVE
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
THE CHALLENGE
Video is everywhere
Technology and data
have complicated how
and what we transact
Scaled marketplaces require
efficiency, transparency, and
units of trade (i.e. liquidity)
We need a go forward
“measurement model”
30
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
SOME TRUTHS (MAYBE)…
•
We “measure” for various reasons (pre, during, post)
•
How we “transact” and how we “value” can differ
•
It’s not about Digital and TV…its about supply and demand
•
We have multiple video marketplaces
31
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
TODAY’S “AUDIENCE” LANDSCAPE
1
3
7
35
Day
Live TV/DVR
VOD
C3
Ratings
Limited measurement/no monetization
No demos for ads/limited monetization
2+, OCR/VCE & proprietary measurement, DAI
Online (web browser)
Mobile (app)
2+ & proprietary measurement, DAI
Connected TV (app)
2+ & proprietary measurement, DAI
Unit ad model
No ad model
Mixed ad model
Impression ad model
32
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
AUDIENCES
Unit
Anchored to Show
C3 Ratings
“Ad Pods”
Constrained
Impression
Anchored to User
Census
“Campaigns”
Infinite
33
1
3
7
?
?
35
Day
VOD
C3
Ratings
Online (web browser)
Mobile (app)
Connected TV (app)
C?
?
?
DAI Model
Live TV/DVR
Unit Model
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
TWO AUDIENCE MARKETPLACES EVOLVE
DAI with Varying Measurement
DAI Model
Unit ad model
No ad model
Impression ad model
34
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
ULTIMATELY, IT’S ABOUT IMPRESSIONS
Unit of trade
Ability to price
Seller
Buyer
Impressions
Value
Demographics
Reach/Immediacy
User Characteristics
Engagement
Conversion/CPA
Value
Lifetime Value
Supply/Demand
Content Cost
Environment
Etc.
35
MOBILE MEASUREMENT UPDATE
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
THE 2014 PLAN
Digital
Launch Digital Program
Ratings (DPR)
Linear
Add mobile impressions
to OCR/DPR
Credit mobile viewing
to linear TV ratings
Delivered in 2014
37
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
WE ARE ALMOST THERE
DIGITAL PROGRAM RATINGS
MOBILE OCR
MOBILE CREDIT TO TV RATINGS
 Design
 Design
 Design
 Develop
 Develop
 Develop
 Test
 Test
 Test

Launch R1

Launch R2

Launch

Internal Preview

Industry Preview

Launch
On schedule—July
On schedule—August
Preview/Launch announcement coming
in July!
38
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
WHAT’S NEXT?
Roadmap items for 2015
PC/Mac crediting
via census/SDK
OTT and game console
crediting to Linear and
Digital TV ratings
Cross-platform Program
Ratings (XPR)
39
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
YOUR OPPORTUNITY TO SHARE AND CONNECT!
Table Talk time
The Questions
What will the video
business model be
in the next 5 years?
How would you invest
the next $100 at
Nielsen?
40