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Reconnecting With the Empowered Consumer

“The View: His & Her Body Test”

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Today’s Empowered Consumer

More choice More convenience More control

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Network TV Costs Climb While Ratings Decline

0

5

10

15

20

25

30

35

40

45

50

'91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02

0

1

2

3

4

5

6

7

8

Source: Ratings - Universal McCann: Nielsen Media Research, NTI by season 4-Net Average Primetime ratings; CPMs - CMR Industry costs (non-J&J)

W1849 CPMsW 1849 Avg. 4-Net Prime Ratings

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J&J Third Largest Buyer of Network TV

$1,000.3MM in U.S. Adspend (rank #8) $772MM in U.S. TV spend (rank #6) $504MM in U.S. Network TV spend (rank #3)

Source: Taylor, Nelson Sofres CMR, Jan-Dec 2002

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Strategies to Recapture Consumer Attention

Multimedia sponsorships In-Program Integration/Product Placement Original Program Production/Ownership Shift Spending to Alternate Channels Integrated, Interactive Sponsorships

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“The View: His & Her Body Test”Innovation Objectives:

Objective:– Increase audience engagement with program content and

advertising Strategy:

– Leverage media investment and relationships with multimedia suppliers

– Create new forms of TV programming that embrace interactivity and blend brand message into program content

Hypothesis:– Interactive TV programming increases consumer involvement

and response to advertising

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Roll Tape

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Results: Using Online to Drive Offline Impact

Day-after survey of 1,000 passive viewers and 1,000 interactive participants

Results showed that Interactors:– Stayed longer with the program– Skipped fewer commercials– Were more involved with our advertising

Results

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Interactors Stayed Longer with the Program

43

54

30

40

50

60

Mean TimeSpent (Mins.)

43 54

Viewed Only Interacted

Results

Q: How much of 'The View' His and Her Body Test on television did you watch?

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Interactors Skipped Fewer Commercials

61%

7%

29%

18%

1%

80%

0%

20%

40%

60%

80%

100%

Viewed Only 61% 7% 29%

Interacted 18% 1% 80%

The Same More Less

Q: Compared to your normal TV viewing, did you get up or channel surf more, less or the same during commercial breaks during the broadcast?

Results

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Interactors Were More Involved With Our Advertising

28% 26%

69%

82%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Viewed Only 28% 26%

Interacted 69% 82%

I paid attention to advertising during the show

I remember specific advertisers/sponsors

Q: Please use the table below to indicate how much you agree or disagree with each of the following statements about the broadcast. Top 2 box (Strongly Agree/Agree)

Results

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The View: “His & Her Body Test”Innovation Objectives:

Objective: Achieved– Increase audience engagement with program content and

advertising Strategy: Executed

– Leverage media investment and relationships with multimedia suppliers

– Create new forms of TV programming that embrace interactivity and blend brand message into program content

Hypothesis: Proven– Interactive TV programming increases consumer involvement

and response to advertising

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Next Steps:

Two eTV events in 2004:– Drive increased interactive usage – Improve on-air/online integration– Improve online creative– Investigate other emerging channels

Results

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Back Pocket

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Usage Metrics

4.07 million viewers Age 18+ to the broadcast (source: Nielsen Media Research)

54,868 unique viewers who made use of interactive applications– Equals 1.3% of the total adult viewing audience

Unique Users

Gross # of Interactions

Interactions Per User

Synchronous PC 39,396 n.a. n.a.

Interactive TV 5,686 11,451 2.01

Cellular Text Messaging

9,786 18,193 1.86