MAURICIO LEON COMMERCIAL DIRECTOR PERFORMICS SIMON NUDDS DIRECTOR OF UK MEDIA ANALYTICS NIELSEN DORON WESLY HEAD OF MARKET STRATEGY TREMOR VIDEO IS VOD WITH BENEFITS? VOD IS A LEAN-FORWARD MEDIUM WITH LESS CLUTTER THAT CAN: AMPLIFY AWARENESS GENERATE MORE EFFICIENT & EFFECTIVE CAMPAIGNS COMPLEMENT A TV BUY OBJECTIVE: HOW DOES VOD COMPLEMENT PHASE ONE: VOD CONTRIBUTION TO TV’S INCREMENTAL REACH PHASE TWO: VOD CONTRIBUTION TO TV'S AWARENESS AND MESSAGE ASSOCIATION PHASE ONE: VOD CONTRIBUTION TO TV’S INCREMENTAL REACH OCT. 2011 - DEC. 2011 TV + VOD INCREMENTAL REACH 10-41% OF PEOPLE ONLINE WERE NOT EXPOSED TO TV a. b. c. d. e. a. b. c. d. e. FMCG Beverage Alcohol 1.33% FMCG Beverage 0.33% Finance 0.44% Retail (ce) 0.19% Tech 0.45% FMCG Beverage Alcohol A16-34 ~41% FMCG Bev ABC1 Women ~14% Finance ABC1 ~20% Retail (ce) ABC1 ~10% Tech A16-34 ~15% METHODOLOGY FUSION OF TV AND VOD (ONLINE) PANELS MEASURE REACH AND FREQUENCY ACROSS SINGLE CAMPAIGN 5 BRANDS ACROSS 4 CATEGORIES FMCG BEVERAGE (x2) RETAIL MEASUREMENT PERIOD: OCT. 2011 – DEC. 2011 FINANCE TECH METHODOLOGY COMBINE EXTRACT VISUALISE TAG STEP 1 STEP 2 STEP 3 STEP 4 METHODOLOGY BARB Respondent Level Data Nielsen Online Respondent Level Data To isolate the impact of online activity when combined with TV, we utilize Nielsen-IMS’ CampaignRF fusion tool METHODOLOGY On-the-fly fusion Using common demo variables BARB Respondent Level Data Nielsen Online Respondent Level Data We link respondents from one dataset to another by using the common variables (i.e. demos, geo demos, etc.) that exist on the BARB panel, Nielsen NetView panels and a hub where the reach results are reported. METHODOLOGY On-the-fly fusion “Fused result of TV and Using common demo online viewing” variables BARB Respondent Level Data Nielsen Online Respondent Level Data These linking variables were validated by a series of statistical tests and analyses to ensure they closely match to produce an accuracy level of 95% or higher. FMCG BEVERAGE ALCOHOL A16 % Reach 70% 65.93% 64.6% TV Only TV + VOD Source: Nielsen IMS CampaignRF, Oct.-Dec. 2011 VOD Effect Incremental to Base of Campaign 25 150 FMCG BEVERAGE ABC1W 15+ % Reach 90% 87.56% 87.89% VOD Effect Incremental to Base of Campaign TV Only TV + VOD Source: Nielsen IMS CampaignRF, Oct.-Dec. 2011 50 550 FINANCE ABC1 ADULTS % Reach 80% 78.46% 78.9% VOD Effect Incremental to Base of Campaign TV Only TV + VOD Source: Nielsen IMS CampaignRF, Oct.-Dec. 2011 50 250 RETAIL (CONSUMER ELECT) % ReachABC1 15+ % Reach 90% 89.72% 89.91% VOD Effect Incremental to Base of Campaign TV Only TV + VOD Source: Nielsen IMS CampaignRF, Oct.-Dec. 2011 50 600 TECH 16-34S % Reach 90% 87.38% 87.83% VOD Effect Incremental to Base of Campaign TV Only TV + VOD Source: Nielsen IMS CampaignRF, Oct.-Dec. 2011 50 550 VOD PENETRATION UK DIGITAL VIDEO VIEWERS 2012 2013 2014 2015 2016 2017 Digital Viewers (millions) 32.6 34.4 36.3 37.8 39.1 40.0 –% change 8.9% 5.5% 5.8% 4.1% 3.3% 2.4% –% of internet users 69.9% 71.7% 74.1% 75.6% 76.7% 77.4% –% of population 51.4% 53.8% 56.4% 58.3% 59.7% 60.6% Source: eMarketer, Feb 2013 PHASE TWO: VOD CONTRIBUTION TO TV'S AWARENESS AND MESSAGE ASSOCIATION VOD AMPLIFIES VOD + INCREASE RETURN ON BRANDING VOD EXTENDS IMPACT METHODOLOGY EXPERIMENTAL DESIGN (TEST VS. CONTROL) NATIONAL REP. SAMPLE FOR ABC1 TARGET VOD EXPOSURE BASED ON COOKIE FILE TV EXPOSURE (OTS) BASED ON MEDIA CONSUMPTION REPORTING (12 MIN. SURVEY) AVIVA MEASUREMENT PERIOD: AUG.-NOV. 2012 MEDIA CONSUMPTION QUESTIONS Do you watch commercial TV? Thinking about your commercial TV viewing habits, on average, what time of day do you watch TV? On average, how many hours of commercial TV do you watch a day? SPOT of SCHEDULE Which, if any, the following TV showsITVhave / ITV+1 you watched since 1st • Downton Abbey of Sep. 2012? • Coronation Street • X-factor Station Day Time Sec Programme ITV London Sun 9:45:00 PM :30 Downton Abbey Source: Nielsen, Tremor Video Wave 1 = Last month, Wave 2 since Sep 1 2012 VOD AMPLIFIES TV DOMINANT STRATEGY TV is off-air: VOD sustains and increases viewers’ brand awareness (Unaided Awareness) 39% 41.4% 37.7% 35.9% 33% VOD Effect Incremental to Base of Campaign 2.6% Before Campaign Sep.-Oct. TV Sep.-Oct. TV + VOD Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug-Nov 2012 Nov. No VOD Nov. VOD Nov. Carry Over VOD AMPLIFIES TV DOMINANT STRATEGY TV + VOD (vs. TV alone): A higher percentage of viewers connected the core message with the brand (Message Association) 48% 43.6% 31.7% 29.2% VOD Effect Incremental to Base of Campaign 26.1% -3.1% Before Campaign Sep.-Oct. TV Sep.-Oct. TV + VOD Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012 Nov. No VOD Nov. VOD Nov. Carry Over RETURN ON BRANDING INVESTMENT It appears that TV + VOD are less cost efficient at increasing awareness and message association. But the story is very different for light TV viewers (1/4 of ABC1 Target). Cost to Raise Awareness per Person (Index) Unaided Awareness 100 171 Message Association 100 101.1 TV TV + VOD Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012; TV heavy + medium = >14 hours/week, TV light = <14 hours/week TV + VOD REACH OVERLAP Even though light TV viewers are ¼ of ABC1 Target, they only 26M compromise 15% of TV viewing. VIEWERS ABC1 hrs./day ABC1 Heavy, Medium, and Light TV Viewers Aviva TV: Heavy, Medium, Light 39.5% LIGHT 0 – 1.5 LIGHT-MED 1.6 – 2.2 14.9% of TV viewing MEDIUM 2.3 – 3.6 MED-HEAVY 3.7 – 5 HEAVY 5.1 – 5.7 55.5% of TV viewing Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012; TV heavy + medium = >14 hours/week, TV light = <14 hours/week; *Calculated % x TV Pop; **Calculated based on nationally rep data; ***Light TV Viewers x % Exposed to VOD Aviva TV Light 48.4% Aviva VOD 55.5% TV + VOD REACH OVERLAP Even though light TV viewers are ¼ of ABC1 Target, they only 26M compromise 15% of TV viewing. VIEWERS ABC1 hrs./day ABC1 Aviva TV: Heavy, Medium, Light 71% Heavy, Medium, and Light TV Viewers Aviva TV Light 31.5% LIGHT 0 – 1.5 LIGHT-MED 1.6 – 2.2 14.9% of TV viewing MEDIUM 2.3 – 3.6 MED-HEAVY 3.7 – 5 HEAVY 5.1 – 5.7 55.5% of TV viewing Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012; TV heavy + medium = >14 hours/week, TV light = <14 hours/week; *Calculated % x TV Pop; **Calculated based on nationally rep data; ***Light TV Viewers x % Exposed to VOD Aviva VOD 77.7% RETURN ON BRANDING INVESTMENT: TV HEAVY/MEDIUM VS. TV LIGHT Cost to Raise Awareness per Person (Index) Unaided Awareness 100 108.6 58.7 Message Association 100 528.3 63.8 TV TV Heavy/Medium + VOD TV Light + VOD Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012; TV heavy + medium = >14 hours/week/>2 hours per day, TV light = <14 hours/week/<2 hours/day PHASE 2: MESSAGE ASSOCIATION -3.1 Message Association +2.5 Decay VOD ON AIR TV WK 1 WK 2 WK 3 Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012 WK 4 PHASE 2: MESSAGE ASSOCIATION Decay -3.1 Message Association +2.5 y = -22.81ln(x) + 48.202 R2 = 0.86996 VOD ON AIR TV OFF-AIR VOD ON-AIR TV WK 1 WK 2 WK 3 Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012 WK 4 WK 5 WK 6 WK 7 WK 8 FRIENDS WITH BENEFITS INDEED HYPOTHESIS TV + VOD = TV WITH BENEFITS VOD is a lean-forward medium with less clutter that can: Incremental Reach: VOD + TV increases by up to 1.33% • Amplify awareness and reach • When TV goes dark: VOD bolsters brand awareness by 5.5%, extending campaign Generate more efficient and effective campaigns • Complement a TV buy Light TV Viewers: TV + VOD (vs. TV alone) delivers almost 2x the return on branding Brand Performance: TV + VOD drive higher brand performance THANK YOU MAURICIO LEON mauricio.leon@performics.co.uk @mozleon SIMON NUDDS simon.nudds@nielsen.com DORON WESLY dwesly@tremorvideo.com @sabredutch