1

Tracking Actual Media Shifts & Their ROI Effects

ARF Audience Measurement 2016

Tracking Actual Media Shifts & Their ROI Effects

2

Uniquely Sourced: 70% of Agency Spend

3

Overall Media Market Trend

4

Overall Market Overview 5-Year Growth

*CAGR: Compound Annual Growth Rate. Source: SMI Dataminer.

+14 points from

FY 2010

Media % Share FY 2015

-4 points from

FY 2010

53% 33% 6% 4% 4% TELEVISION %Share

DIGITAL %Share

PRINT %Share

RADIO %Share

OOH %Share

-1 points from

FY 2010

-1 points from

FY 2010

-8 points from

FY 2010

20%

4%

4%

4%

-4%

7%

Digital

Television

Radio

Out of Home

Print

Total Market

% CAGR* 2010-2015

5

Burning Question: What’s Really Going on with

TV vs. Digital?

6

Digital Has Made Deeper Inroads Than Expected

Digital is 36% of Top 100 Advertisers Screen Ad Spend (Q1 2016)

0%

10%

20%

30%

40%

50%

60%

70%

80%

Q1 2014 Q1 2016

Digital

TV

7

TV Springback vs. Attrition Categories

• QSR remains steady at 79% TV • 50% of categories are edging back to, or maintaining, TV level

0%

10%

20%

30%

40%

50%

60%

70%

80%

Dig

ital

TV

Dig

ital

TV

Dig

ital

TV

Dig

ital

TV

Dig

ital

TV

CAR FIN TECH TELECOM TRAV

FY 2015

Q1 2016

TV Springback: Attrition Categories:

0%

10%

20%

30%

40%

50%

60%

70%

80%

Dig

ital TV

Dig

ital TV

Dig

ital TV

Dig

ital TV

Dig

ital TV

Dig

ital TV

CE CPG ENT FASH RET RET RX RX

FY 2015

Q1 2016

8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CA

R

CE

CP

G

EN

T

FA

SH

FIN

GO

VT

PO

WE

R

QS

R

RE

T

RX

TE

CH

TE

LE

CO

M

TR

AV

SuperCategory E

SuperCategory D

SuperCategory C

SuperCategory B

SuperCategory A

15 of 39 advertisers lowering TV are increasing it again (Pattern A)

Decreasing TV + Digital

Digital down, TV Up

Increasing TV + Digital

Continuing to lower TV

Had lowered TV, now adding back

Super Category %Share on Q1 2016

9

CPG Advertisers That Switched Back to TV

Source: SMI, IRI

Advertiser Quarters TV Raised

YOY

Q1 2016 Sales

vs. Q1 2014

Immediate Incremental Sales

Return on

Incremental TV

CPG A Q4 2015 +3.0% $4.71

CPG B

All except Q2

2015 & Q1 2016 +4.0% $5.67

CPG 3 Last 2 Qtrs +7.3% $3.67

Average

+4.8% $4.68

10

CPG Advertisers by Dynamic Spend Pattern

Source: SMI, IRI

Advertiser Type

Q1 2016

Sales vs.

Q1 2014

Having Lowered TV

Raising it Again +4.8%

Continuing to Move TV

Dollars to Digital +4.7%

Increasing TV and Digital +4.0%

Digital Down, TV up +7.9%

Reducing Both TV and

Digital +1.1%

All 3 went up

2 went up, 2 went down

3 went up, 2 went down

All 3 went up

2 went up, 2 went down

100%

50%

60%

100%

50%

Observed Chances of

Sales Increase

Television Increasers

11

Non-CPG Advertisers by Dynamic Spend Pattern

Source: SMI, published sales records 10 companies (retail, automotive, tech, QSR, ent)

Advertiser Type

Q1 2016

Sales vs.

Q1 2014

Having Lowered TV

Raising it Again +8.8%

Continuing to Move

Dollars TV to Digital -3.1%

Increasing TV and Digital -0.1%

Digital Down, TV Up NA

Reducing Both TV and

Digital NA

All 4 went up

1 went up, 2 went down

2 went up, 1 went down

100%

33%

67%

NA

NA

Observed Chances of

Sales Increase

Television Increasers

12

37%

34%

8%

8%

7% 4%

2%

SMI Digital Site Types % Share

Pure Play - Content/Search

Ad Network/Ad Exchange

TV Network - Digital

Pure Play - Social

Pure Play - Video

Print - Digital

Pure Play - Internet Radio

Digital Impact on National TV BYTD '15-'16 Performance (Oct-April)

Digital Breakdown

(+10% YoY growth)

(+35%)

(+10%)

(+72%)

(+53%)

(+12%)

(+53%)

+4 point YoY

National TV (Cable and Broadcast). Source: SMI Dataminer.

BYTD '14-'15

BYTD '15-'16

National TV and Digital %Share

Nationa TV Digital

56% 44%

60% 40%

13

0%

5%

10%

15%

20%

25%

30%

35%

40%

Pu

re P

lay

- S

oci

al

Pu

re P

lay

- V

ide

o

Pu

re P

lay

- C

on

ten

t/S

ear

ch

Ad

Ne

two

rks/

Exc

han

ge

s

TV

Ne

two

rk D

igit

al

All

Oth

er

Dig

ital

Top 100 Advertisers Digital Subtypes - %Share FY2015

Top 12Advertisers insales increase

Other 88Advertisers insales increase

Top 12 Performers Used More Video, Less Search

Q1 2014- Q1 2016: • Sales Avg. growth:

+14.6%

• TV Ad Spend Avg.

Growth: +25.8%

14

Global Markets Rollout SMI Full Market: National TV

15

What’s New?

Market Coverage

Vertical Depth

Program Level

Spot Length

Brand Level Estimates

Agency Groups

70% 100%

35 Product Categories

108 Product Sub Categories

Daypart Daypart +

Day (Mon-Sun)

N/A 15s, 30s, 45s, 60s, 75s,

90s, 120s, 120+s

N/A

N/A

AccuTV

All advertisers outside SMI Pool

SMI Pool vs GroupM vs Independents

16

Real Average Cost Per Spot

True averages generated from agencies’ booking systems. Includes ADUs: Average unit costs per aired spot

Broadcast Year 2015 – Average Cost by 30 Second Spot

Equivalized

30s

SpotCount

Average

Cost

Equivalized

30s

SpotCount

Average

Cost

Equivalized

30s

SpotCount

Average

Cost

Equivalized

30s

SpotCount

Average

Cost

Equivalized

30s

SpotCount

Average

Cost

Equivalized

30s

SpotCount

Average

Cost

Daytime 2,202 783$ 1,829 1,107$ 2,279 1,653$ 1,800 889$ 2,556 590$ 2,198 1,949$

Prime Time 861 9,678$ 842 4,344$ 1,463 12,266$ 939 4,497$ 1,324 6,669$ 964 20,688$

Total 3,063 3,283$ 2,671 2,127$ 3,742 5,803$ 2,739 2,126$ 3,880 2,665$ 3,162 7,663$

Daytime 1,349 753$ 1,592 1,062$ 1,696 1,696$ 1,595 891$ 1,749 873$ 1,861 1,985$

Prime Time 829 8,244$ 863 5,376$ 837 11,626$ 750 4,173$ 1,004 10,722$ 848 11,902$

Total 2,177 3,604$ 2,454 2,579$ 2,533 4,976$ 2,344 1,941$ 2,753 4,465$ 2,709 5,089$

Daytime 1,356 720$ 1,575 1,088$ 1,767 1,729$ 1,662 930$ 1,773 850$ 1,929 2,009$

Prime Time 824 10,683$ 821 5,173$ 939 12,038$ 747 4,428$ 1,041 11,169$ 898 7,824$

Total 2,180 4,486$ 2,396 2,488$ 2,705 5,306$ 2,409 2,015$ 2,813 4,667$ 2,827 3,856$

Daytime 1,319 704$ 1,528 1,009$ 1,723 1,696$ 1,624 882$ 1,771 887$ 1,910 1,840$

Prime Time 871 7,239$ 865 4,070$ 849 11,643$ 752 4,122$ 1,032 9,946$ 869 8,743$

Total 2,190 3,302$ 2,393 2,115$ 2,572 4,980$ 2,376 1,907$ 2,802 4,222$ 2,778 3,998$

Daytime 1,330 722$ 1,541 1,028$ 1,729 1,667$ 1,613 927$ 1,679 917$ 1,932 1,946$

Prime Time 870 11,386$ 969 4,493$ 813 11,942$ 788 4,869$ 1,028 7,215$ 833 12,071$

Total 2,200 4,939$ 2,510 2,366$ 2,542 4,954$ 2,401 2,221$ 2,706 3,308$ 2,765 4,995$

Daytime 1,533 3,088$ 1,548 2,242$ 1,975 6,240$ 1,669 2,633$ 1,966 1,901$ 2,181 3,963$

Prime Time 822 6,664$ 821 4,193$ 810 11,700$ 762 4,259$ 1,018 7,263$ 908 6,450$

Total 2,355 4,336$ 2,369 2,918$ 2,785 7,828$ 2,431 3,143$ 2,984 3,730$ 3,088 4,694$

Daytime 1,577 3,119$ 1,583 2,371$ 1,653 5,771$ 1,694 2,507$ 1,883 2,084$ 1,783 3,917$

Prime Time 1,119 8,809$ 1,018 5,523$ 1,101 9,884$ 1,061 98,867$ 1,293 7,424$ 1,149 8,986$

Total 2,696 5,480$ 2,601 3,605$ 2,754 7,416$ 2,755 39,624$ 3,176 4,258$ 2,932 5,904$

18,980 3,460$ 21,113 3,846$ 16,859 4,197$ 17,454 8,128$ 19,630 5,923$ 17,392 2,602$

Sun

Sat

Fri

Thu

Grand Total

Day PartWeekDay

Mon

Wed

Tue

Equivalized

30s

SpotCount

Average

Cost

Equivalized

30s

SpotCount

Average

Cost

Equivalized

30s

SpotCount

Average

Cost

Equivalized

30s

SpotCount

Average

Cost

Equivalized

30s

SpotCount

Average

Cost

Equivalized

30s

SpotCount

Average

Cost

Daytime 2,202 783$ 1,829 1,107$ 2,279 1,653$ 1,800 889$ 2,556 590$ 2,198 1,949$

Prime Time 861 9,678$ 842 4,344$ 1,463 12,266$ 939 4,497$ 1,324 6,669$ 964 20,688$

Total 3,063 3,283$ 2,671 2,127$ 3,742 5,803$ 2,739 2,126$ 3,880 2,665$ 3,162 7,663$

Daytime 1,349 753$ 1,592 1,062$ 1,696 1,696$ 1,595 891$ 1,749 873$ 1,861 1,985$

Prime Time 829 8,244$ 863 5,376$ 837 11,626$ 750 4,173$ 1,004 10,722$ 848 11,902$

Total 2,177 3,604$ 2,454 2,579$ 2,533 4,976$ 2,344 1,941$ 2,753 4,465$ 2,709 5,089$

Daytime 1,356 720$ 1,575 1,088$ 1,767 1,729$ 1,662 930$ 1,773 850$ 1,929 2,009$

Prime Time 824 10,683$ 821 5,173$ 939 12,038$ 747 4,428$ 1,041 11,169$ 898 7,824$

Total 2,180 4,486$ 2,396 2,488$ 2,705 5,306$ 2,409 2,015$ 2,813 4,667$ 2,827 3,856$

Daytime 1,319 704$ 1,528 1,009$ 1,723 1,696$ 1,624 882$ 1,771 887$ 1,910 1,840$

Prime Time 871 7,239$ 865 4,070$ 849 11,643$ 752 4,122$ 1,032 9,946$ 869 8,743$

Total 2,190 3,302$ 2,393 2,115$ 2,572 4,980$ 2,376 1,907$ 2,802 4,222$ 2,778 3,998$

Daytime 1,330 722$ 1,541 1,028$ 1,729 1,667$ 1,613 927$ 1,679 917$ 1,932 1,946$

Prime Time 870 11,386$ 969 4,493$ 813 11,942$ 788 4,869$ 1,028 7,215$ 833 12,071$

Total 2,200 4,939$ 2,510 2,366$ 2,542 4,954$ 2,401 2,221$ 2,706 3,308$ 2,765 4,995$

Daytime 1,533 3,088$ 1,548 2,242$ 1,975 6,240$ 1,669 2,633$ 1,966 1,901$ 2,181 3,963$

Prime Time 822 6,664$ 821 4,193$ 810 11,700$ 762 4,259$ 1,018 7,263$ 908 6,450$

Total 2,355 4,336$ 2,369 2,918$ 2,785 7,828$ 2,431 3,143$ 2,984 3,730$ 3,088 4,694$

Daytime 1,577 3,119$ 1,583 2,371$ 1,653 5,771$ 1,694 2,507$ 1,883 2,084$ 1,783 3,917$

Prime Time 1,119 8,809$ 1,018 5,523$ 1,101 9,884$ 1,061 98,867$ 1,293 7,424$ 1,149 8,986$

Total 2,696 5,480$ 2,601 3,605$ 2,754 7,416$ 2,755 39,624$ 3,176 4,258$ 2,932 5,904$

18,980 3,460$ 21,113 3,846$ 16,859 4,197$ 17,454 8,128$ 19,630 5,923$ 17,392 2,602$

Sun

Sat

Fri

Thu

Grand Total

Day PartWeekDay

Mon

Wed

Tue

17

Ad Revenue vs. Commercial Load

Broadcast Calendar - October 2015 - PrimeTime

Network

Ad Revenue $15.8 M $11.3 M $16.9 M $25.2 M $26.0 M $21.9 M $22.2 M $22.6 M

Commercial Load 10.7 Min/Hour 11.2 Min/Hour 13.1 Min/Hour 12.9 Min/Hour 12.2 Min/Hour 14.1 Min/Hour 13.7 Min/Hour 11.7 Min/Hour

Network

Ad Revenue $15.8 M $11.3 M $16.9 M $25.2 M $26.0 M $21.9 M $22.2 M $22.6 M

Commercial Load 10.7 Min/Hour 11.2 Min/Hour 13.1 Min/Hour 12.9 Min/Hour 12.2 Min/Hour 14.1 Min/Hour 13.7 Min/Hour 11.7 Min/Hour

11%

4% 5% 5%

Discovery Channel Food Network

YoY Growth Revenue vs. Commercial Load

Ad Revenue Growth

Commercial Load

18

ADU Allocation by Network in 2015

ADU + Bonus Paid Total ADU + Bonus %

Q1 3381 17160 20541 16.5%

Q2 1985 15675 17660 11.2%

Q3 2360 16010 18370 12.8%

Q4 2596 17655 20251 15.3%

Daytime 2710 25132 27842 9.7%

Early Fringe 753 1441 2194 34.3%

Early Morning 1704 10271 11975 14.2%

Early News 687 2953 3640 18.9%

Late Fringe 1412 7347 8759 16.1%

Late News 46 183 229 20.1%

Overnight 209 2943 3152 6.6%

Prime Access 88 277 365 24.1%

Prime Time 2713 15953 18666 14.5%

Total 2015 10322 66500 76822 13.4%

CBS (2015)

By Calendar Quarter

By Daypart

ADU + Bonus Paid Total ADU + Bonus %

Q1 10105 22788 32893 30.7%

Q2 9695 24894 34589 28.0%

Q3 10233 28140 38373 26.7%

Q4 11072 25356 36428 15.3%

Daytime 3644 35034 38678 9.4%

Early Fringe 1434 13935 15369 9.3%

Early Morning 2119 4832 6951 30.5%

Early News 1281 12358 13639 9.4%

Late Fringe 15664 3954 19618 79.8%

Late News 581 2504 3085 18.8%

Overnight 13405 1364 14769 90.8%

Prime Access 369 4711 5080 7.3%

Prime Time 2608 22486 25094 10.4%

Total 2015 41105 101178 142283 28.9%

By Daypart

Food Network (2015)

By Calendar Quarter

19

Thank You