THE
DATA-DRIVEN
FUTURE OF
VIDEO
ADVERTISING
Dave Morgan
Dave Hohman
CEO/Founder
Simulmedia
EVP, Agency Solutions
Nielsen
LACK OF TV MEASUREMENT
ONLINE HAS FULL FUNNEL METRICS
IMPRESSIONS
IMPRESSIONS
(GRPS)
VISITORS
UNIQUE VISITORS
(UNDUPLICATED REACH)
COST-PER-CLICK
COST-PER-ACQUISITION
SALES
2
CONVERGENCE
TV / ONLINE-VIDEO | AUDIENCE /
PROGRAMMATIC
2016
2013
TV
2020
TV
TV
Digital
Video
Digital
Video
Digital
Video
$6B
$16B
$69B
$75B
LITTLE CROSS-CHANNEL BUYING
COORDINATION. NO INTEGRATION
SOME CROSS-CHANNEL COORDINATION
& INTEGRATION
$33B
$83B
FULL CROSS-CHANNEL
COORDINATION & INTEGRATION
Audience-Based
Programmatic
3
Source: MyersBizNet Media and Marketing Investment Data and Forecasts, 1/30/2013.
STORY OF TV FRAGMENTATION
35%
OF VIEWERSHIP ON
TV PROGRAMS HAS
A RATING OF
0.5+
65%
OF VIEWERSHIP ON
TV PROGRAMS HAS
A RATING OF
<0.5
4
Source: Nielsen, Kantar Media Intelligence and Simulmedia a7. All metrics reported in unequivalized Nielsen Live +3 commerical measures.
AUDIENCE CONCENTRATIONS IN NICHES
OF VIEWERSHIP ON
TV PROGRAMS HAS
A RATING OF
0.5+
BIG BOX
RETAIL SHOPPERS:
0% OF PROGRRAMS
INDEX ABOVE 150
OF VIEWERSHIP ON
TV PROGRAMS HAS
A RATING OF
<0.5
BIG BOX
RETAIL SHOPPERS:
10% OF PROGRRAMS
INDEX ABOVE 150
5
Source: Nielsen, Kantar Media Intelligence and Simulmedia a7. All metrics reported in unequivalized Nielsen Live +3 commerical measures.
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
CHANGES IN THE MEDIA LANDSCAPE
Accelerating change in our future
DIGITAL AND
INTERNET
REVOLUTION
RISE OF
CABLE
TV
MORE
ADVERTISERSUPPORTED
NETWORKS
VCR
DVD
DVR
VOD
2006 Present
VIDEO
GAMES
1990’s 2005
1970’s
&
1980’s
SMARTPHONES
HDTV
TABLETS
OVER-THE-TOP SMART
DISTRIBUTION TV WITH
SOCIAL
CAPABILITIES
APP
DRIVEN
DIGITAL
WORLD
1950’s
& 1960’s
FIRST
SATELLITE
BROADCAST
BLACK &
WHITE TV
6
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
MORE CHOICES BEING DRIVEN BY TECHNOLOGY
% diff YOY
+6%
+14%
+54%
-2%
+2%
NA
+1%
+1%
+90%
Source: The Nielsen Cross-Platform Report Quarter 2 2014,
NPOWER HHLD, Mobile Insights P13+, Custom Data Smart TV and Multimedia Device, May 2014 and May 2013 YOY
7
AN EXPANDED VIEW OF MEDIA CONSUMPTION
Average time spent per Adult 18+ per day
0:11
Q2 2014
4:36
0:31
1:07
1:25
2:45
0:03
0:09
0:09
Q2 2013
4:48
0:27
1:01
1:04
2:48
0:09
0:09
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Q2 2012
4:45
0:25
1:03
0:48
2:52
0:09
Live TV
Watching Time-shifted TV
Using DVD/Blu-Ray Device
Using a Game Console
Using Internet on a Computer
Using a Smartphone
Listening to AM/FM Radio
Using a Multimedia Device
Media choice drives consumer choice
Source: The Nielsen Cross-Platform Report Quarter 2 2014; Exhibit 1
8
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
ENABLED SMART TV ALMOST DOUBLED FROM
PRIOR YEAR
Smart TV Penetration
Smart TV
and not
enabled,
9%
15%
Smart TV
and
enabled,
7%
No
Smart
TV, 85%
August 2013
Source: Nielsen Custom Data HHLD
21%
Smart TV
and
enabled,
13%
Smart TV
and not
enabled,
9%
No
Smart
TV, 79%
August 2014
9
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
LESS LIVE TV AMONG ENABLED SMART TV USERS,
MORE AOT AND DEVICE CONTRIBUTION
Not Enabled Smart TV
Enabled Smart TV
6%
3%
5%2%
3%
4%
5% 1%
3%
10%
13%
13%
No Smart TV
4%
4%
7%
Live TV
including
AOT
66%
72%
76%
74%
Live TV (excluding AOT)
77%
AOT
Timeshifting
82%
DVD
Game Console
Multimedia Device
Unidentified tuning or AOT may signify that an enabled Smart TV is being used to stream content
Source: Nielsen Custom Study, HHLD, Prime, Percentage share of included sources, Live TV is based on all station minutes contributing to PUT, August 2014
10
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
CROSS PLATFORM –
DEFINING OUR UNIQUE POSITION
BY ADVERTISING MODEL
BY DELIVERY TYPE
BY DEVICE TYPE
BY CONTENT TYPE
BY USAGE
11
LIGHTING UP DIGITAL – AND COMPARING
DIRECTLY TO TRADITIONAL CURRENCY
COMPARABLE RATING
NATIVE DIGITAL ORIGINATED
Digital
Display
Ratings
DIGITAL
DISPLAY
BIG DATA
ENABLED
MEASUREMENT
Digital
Video
Ratings
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
ONE CLIENT-SIDE
IMPLEMENTATION
Cross
Platform
ONE
ENCODING
PROCESS
DIGITAL
AUDIO
GOLD
STANDARD
PROCESS
SINGLE SOURCE
PANEL
Digital
TV/C3
Ratings
Digital
Audio
Ratings
TV ORIGINATED
SOFTWARE
METER
UNIVERSAL
MRC
ACCREDITED
12
Thank you
@Nielsen
@Simulmedia