Television Bureau of Advertising
The Importance of DVR Viewing
to the Advertiser
Before making the decision to limit
television buys to Live Only ratings in
local markets, consider what is being
left behind.
Timeshifted Viewing Delivers
Valuable Customers

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Households with DVRs contain upscale
demographics.
While the vast majority of viewing is still Live,
timeshifting is increasing.
Most playback, however, occurs near the time of
original telecast.
Research indicates that a high percentage of
commercials are not skipped; those that are skipped
are also likely to deliver their message and/or
reinforce key message points.
3
DVR Homes contain the kinds of
consumers that advertisers
most want to reach.
Characteristics of DVR Homes:
More likely to have a younger HOH, children
Index = 122
44.2%
Index = 140
36.2%
29.1%
20.8%
Age of HOH < 35
DVR HH
Any Children <18
Total US HH
Source: Nielsen, Local DVR Timeshifting Analysis: Observations from November 2007. Released 1/11/08.
Data based on 56 metered markets.
5
Characteristics of DVR Homes:
High ADS Penetration, Higher Educated HOH
Index = 167
Index = 157
46.5%
42.8%
27.9%
27.3%
ADS Penetration
DVR HH
HOH 4+ Years College
Total US HH
Source: Nielsen, Local DVR Timeshifting Analysis: Observations from November 2007. Released 1/11/08.
Data based on 56 metered markets.
6
Characteristics of DVR Homes:
More likely to have HHI $75K+, POM HOH
Index = 147
Index = 171
59.7%
50.8%
40.6%
29.8%
HOH Prof/Owner/Mgr
HHI $75K+
DVR HH
Total US HH
Source: Nielsen, Local DVR Timeshifting Analysis: Observations from November 2007. Released 1/11/08.
Data based on 56 metered markets.
7
Nielsen’s Home Tech Report Also Indicates
DVR HHs Contain Sought-After Consumers
Respondents in
Total HH
Respondents in
HH with DVR
Bachelor's Degree
20.5
28.2
138
Master's Degree, Prof. or Doctorate
14.8
17.5
118
Married
53.6
66.9
125
Presence of Children (up to 17 yrs)
26.9
38.3
142
Presence of Children under 2
14.7
17.0
116
Presence of Children 6-11
49.9
68.3
137
Professional/Administrative/Managerial
22.3
29.2
131
Sales/Tech/Clerical
13.9
19.1
137
HHI $70-100K
14.5
22.9
158
HHI $100-200K
13.1
25.7
196
HHI Over $200K
2.8
5.2
186
Source: Nielsen, Home Technology Report, 2nd Quarter 2008.
Index
8
While Time Shifted Viewing Has Grown,
It Is Still a Small Percentage of Overall Viewing
Time Spent in Hours:Min per Month,
per Quarter
Persons 2+
3Q ‘07
3Q ‘08
Difference
(In Hours)
136:54
142:29
5:35
Timeshifted TV
4:17
6:32
2:15
% of TV Viewing that is Timeshifted
3%
4%
Traditional TV
Source: Nielsen, Three Screen Report, Third Quarter 2008.
9
Adults 25-44 Show Higher Percentages of
Timeshifting, Relative to Other Demos
Time Spent in Hours:Min per Month
By Demographic
K2-11
T12-17
A18-24
A25-34
A35-44
A45-54
A55-64
A65+
108:34
110:59
108:36
133:00
134:51
159:23
175:18
196:23
Timeshifted TV
5:25
4:55
4:36
10:04
8:15
7:19
6:32
3:44
% of Monthly TV
Viewing that is
Timeshifted
5%
4%
4%
7%
6%
4%
4%
2%
Traditional TV
Source: Nielsen, Three Screen Report, Third Quarter 2008.
10
Commercials Viewed in Playback Mode
Have Value for Advertisers
Just How Many Commercials Are Viewed in
Playback Mode, Anyway?
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Most studies seem to indicate about 50-60% of
commercials are fast forwarded…meaning that
40-50% are viewed in real time.
Even when commercials are fast forwarded, it
appears that message points are delivered –
consumers are in an alert state to ensure they don’t
miss program content – and recall of key ad
message points is strong.
Here are some examples of the latest research
findings.
12
Just How Many Commercials Are Viewed in
Playback Mode, Anyway?

According to Nielsen’s recently released Three
Screen Report, among DVR households, about half
of commercial content was viewed when
programming was played back within 3 days.
Source: Nielsen, Three Screen Report, May 2008.
13
Just How Many Commercials Are Viewed in
Playback Mode, Anyway?
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According to Dave Poltrack, EVP of Research and
Planning for CBS, about 60% of commercials are
fast forwarded, meaning 40% are viewed in real
time.
Even the 60% that are fast forwarded deliver value:

Poltrack cites research showing that people stop fast
forwarding for certain ads, “so good ads don’t get fast
forwarded through as much as poor ads…We’re trying
to get our commercial pods as consumer friendly as
possible.”
Source: Advertising Age, October 18, 2008.
14
Just How Many Commercials Are Viewed in
Playback Mode, Anyway?
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According to a study from Innerscope Research for NBC
Universal, viewers with DVRs who fast forward through
commercials still recall and recognize brands at twice the
expected rate.
People fast forward in a “hyper-alert state” to ensure they
don’t miss their show.
Seeing a familiar ad further enhances recall for both live and
DVR viewers:

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For DVR viewers, ad recall increased from 15% to 53% when an
ad had been seen before.
Advertisers are beginning to take advantage of hyper-alert
gaze by centering key images on the screen.
Source: LiveScience.com, October 2, 2008.
15
Just How Many Commercials Are Viewed in
Playback Mode, Anyway?
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A study appearing in November 2008’s Journal of
Marketing found that people who fast forward
through commercials actually pay more attention to
the television screen than those viewing in real time,
and can be influenced by the brand images they
view for only a short amount of time.
The study recommends placing branded information
at the center of the screen, noting that this can
positively affect brand recognition and attitude, and
behavioral intent.
Source: Journal of Marketing, “Breaking Through Fast-Forwarding: Brand Information and Visual Attention,“ November 2008.
16
Playback Viewing in DVR HHs is Relatively
Consistent Across Major Demographics
The vast majority of viewing is still live. Less than eight percent of HH viewing is in
playback mode, and approximately 12% of viewing among key demos is in playback.
By the end of three days, over 98% of total viewing is captured.
Viewing Among DVR Households
Total Day, November 2007
HH based on 56 metered markets; person demos based on 13 LPM markets
Cumulative Viewing
Live Viewing
Same Day
Playback
1 Day
Playback
2-3 Day
Playback
Remaining
Playback
HH
92.2%
97.0%
98.0%
99.2%
100.0%
P18-34
87.2%
94.7%
96.5%
98.7%
100.0%
P18-49
87.7%
95.1%
96.6%
98.7%
100.0%
P25-54
87.5%
95.0%
96.6%
98.7%
100.0%
P55+
91.8%
96.6%
97.7%
99.1%
100.0%
Source: Nielsen, Local DVR Timeshifting Analysis: Observations from November 2007. Released 1/11/08.
17
DVR Playback by Daypart in LPM Markets
For the key demo of P18-49, of the 12.3% of viewing done
in playback mode, the vast majority occurs in the same day.
Over three-quarters occurs within one day, and over 90% occurs within 3 days.
Playback Viewing by Daypart in LPM Markets
P18-49
November 2007
Cumulative % of Playback
Same Day
+1 Day
+3 Days
+7 Days
M-F 6-7A
85.7%
86.4%
93.7%
100.0%
M-F 7-9A
76.5%
80.1%
91.5%
100.0%
M-F 9A-12P
70.8%
75.0%
90.2%
100.0%
M-F 12-4P
68.4%
75.7%
90.6%
100.0%
M-F 4-6P
67.7%
78.1%
91.1%
100.0%
M-F 6-8P
71.4%
83.2%
94.0%
100.0%
M-Su Prime to 11P
51.3%
72.3%
89.2%
100.0%
M-Su 11P-2A
47.1%
75.5%
90.8%
100.0%
Source: Nielsen, Local DVR Timeshifting Analysis: Observations from November 2007. Released 1/11/08.
18
Timeshifting Continues to Impact
PUT Levels for All Demographics
3.4%
K2-11
2.8%
M55+
4.0%
2.7%
W55+
Source: Nielsen, Local DVR Timeshifting Analysis: Observations from November 2007. Released 1/11/08.
Teens 1217
2.8%
P55+
8.0%
W25-54
7.6%
7.8%
P25-54
M25-54
7.7%
M18-49
8.6%
8.1%
P18-49
W18-49
8.1%
10.0%
M18-34
5.7%
M18+
W18-34
5.8%
W18+
P18-34
5.7%
P18+
9.0%
Percent HUT/PUT Increase from Timeshifting (Live v. Live + 7)
13 LPM Markets
M-Su Prime
November 2007
19
Timeshifting Continues to Impact
HUT Levels Across all Dayparts
20
In DVR Homes, Playback Tends to Occur in
Prime and Late Night Dayparts
DVR Playback by Daypart – NPM Sample
Persons 18-49
May 2008
• Includes time spent in “trick mode,”
as well as playback older than 7 days.
• Highest DVR usage in Prime and Late
Night is consistent with findings from
earlier studies.
• Most often, content is played back in
the same daypart in which it originally
aired.
33%
14%
9%
5%
5%
6%
6%
8%
2%
4%
5%
2%
P
P
P
P
P
P
P
P
P
A
A
A
-1
-1
-4
-6
-8
-1
-8
-1
-6
-8
11
10
A
A
P
P
P
P
A
P
P
A
P
8
1
0
1
4
6
8
1
1
A
,1
F,
F,
F,
,1
,8
,6
,1
A,
A,
U,
U,
U
F
U
F
S
S
S
S
U
S
M
M
M
S
S
M
MMMMSource: Nielsen, Audience Insight: US DVR Penetration and Usage. Released July 2008.
21
There is a perception that, nationally,
C3 ratings are close to Live Only
Program Ratings. Taking this a step
further, some agencies are using
Live Only ratings in local LPM markets
on the assumption that what works
nationally must work locally.
Do C3 Ratings = Live Only Program Ratings?
On a national level, primetime C3 ratings do indeed equate very closely to
Live Only Program Average ratings, as the table below indicates.
November 2007 NTI Network Prime Program Averages
C3 v. Live Only Program Ratings Index
A18-34
A18-49
A25-54
ABC
101
101
101
CBS
102
102
101
NBC
99
99
99
FOX
101
100
100
CW
99
99
99
MNT
94
93
93
This top-line view, however, does not demonstrate
the variances of individual prime programs.
Source: Nielsen NPower Analysis, November 2007.
23
For Individual Prime Programs, C3 v. Live Only
Ratings Differences are More Apparent
Looking at individual programs paints a clearer picture; C3 ratings can be
significantly higher than Live Only program ratings.
This difference is expected to grow as DVR penetration increases.
November 2007 NTI
C3 v. Live Only Program Rating
Index
A18-34
A18-49
A25-54
The Office
111
110
111
Ugly Betty
110
108
107
Numb3rs
108
105
104
Bones
107
106
106
The Reaper
104
108
110
Source: Nielsen NPower Analysis, November 2007.
24
For Syndicated Programs, Similar Ratings
Differences Can Be Observed
Looking at individual programs paints a clearer picture; C3 ratings can be
significantly higher than Live Only program ratings.
This difference is expected to grow as DVR penetration increases.
November 2007 NTI
C3 v. Live Only Program Rating
Index
A18-34
A18-49
A25-54
King of Queens
111
110
110
Oprah
110
109
108
Dr. Phil
107
106
106
Cops
106
105
105
Sex and the City
106
106
107
Source: Nielsen NPower Analysis, November 2007.
25
For most other program genres
and dayparts, Live + 3
Commercial Indices indicate
very little commercial skipping.
Nielsen Research on Commercial Skipping
Source: Nielsen DVR Update July 2008 / Breakouts and programs less than 5 minutes have been excluded.
27
In addition to the ratings swings that
can be observed nationally, there are
local issues to consider.
Most important is DVR penetration,
which varies greatly market to market.
DVR Penetration Continues to Rise

As of November 2008 DVR penetration is 26.9%, up from
19.7% one year ago.
National DVR Universe Estimates
Source: Nielsen Media Research
Nov ‘08
July ‘08
May ‘08
24.4%
Feb ‘08
Sept ‘07
18.7%
18.6%
May ‘07
23.0%
Nov ‘07
July ‘07
26.9%
21.4%
19.7%
17.2%
*Source: Nielsen, Media-Related UEs, November 2008.
29
While National DVR Penetration is 24.4%; in
Many DMAs, Penetration is Much Higher
In some DMAs, DVR penetration is nearly 50% higher than national
estimates. Local market viewing patterns will be affected by changes in DVR
penetration, and need to be examined on a case by case basis.
November 2008
DVR Universe Estimates
DMA Rank
DMA
DVR Penetration
28
San Diego
37.7
49
Austin
37.4
Dallas-Ft. Worth
37.2
Orlando-Daytona Bch-Melbrn
36.8
Los Angeles
36.2
Sacramnto-Stkton-Modesto
35.2
San Francisco-Oak-San Jose
34.1
27
Raleigh-Durham (Fayetvlle)
34.0
37
San Antonio
34.0
17
Cleveland-Akron (Canton)
33.5
13
Tampa-St. Pete (Sarasota)
33.5
5
19
2
20
6
Source: Nielsen, November 2008 Media-Related Universe Estimates.
30
TVB Recommends That Advertisers Count
Timeshifted Viewing When Planning Ad Buys
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DVR penetration will continue to rise, and will increasingly
affect viewing patterns. Ignoring this viewing shortchanges
media plans.
While some commercial skipping occurs, close to half of ads
are viewed in real time; ads that are fast forwarded through
still deliver valuable ad impressions.
Most playback occurs close to the program’s original airtime,
and commercials are delivered during desired advertising
intervals.
Nationally, Live Only program ratings – for individual
primetime programs – often exceed C3 ratings by significant
margins.
Local market viewing nuances need to be considered; like
cable and satellite penetration, DVR penetrations varies from
market to market.
31
TVB Calls for Live + 3 Standard

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Over 90% of playback, regardless of daypart, occurs
within 3 days.
Live + 3 day ratings capture nearly 99% of total
Live + 7 viewing in key demographics.
For the vast majority of advertisers, ads that air
within 3 days of original airtime:



still serve to build awareness of a campaign,
motivate viewers to reach to time sensitive sales
events,
cause customers to take other desired actions.
32
Live Only ratings do not reflect
the new realities of television
viewing in local markets.
The Live + 3 standard represents
a more accurate estimate
of viewing behavior.
Thank You!