FAST FACTSWHAT YOU NEED TO KNOW ABOUT

TV VIEWING IN 2018

F A S T F A C T S - W H A T Y O U N E E D T O K N O W

A B O U T T V V I E W I N G I N 2 0 1 8

Especially for advertisers and agencies, here is an up to date summary of the NZ Television market.

Find out all about how New Zealanders are consuming TV - how many viewers, who they are, how they watch and how long they watch for.

The TV market is evolving- check out the recent facts.

THE NEW ZEALAND TV MARKETPLACE

T H E N E W Z E A L A N D T V M A R K E T P L A C E

New Zealanders are embracing the range of ways to consume TV content.

Access to a wide range of screens and Video On Demand platforms offer audiences more flexibility to view professionally produced content where, when and how they want.

However, watching live broadcast television – on the biggest screen - continues to be the most popular method of viewing by a significant margin.

TV DELIVERS

• Mass audiences. TV is the best medium for long-term brand building, and driving sales

• Every day TV reaches 2.4 million New Zealanders, and 3.3 million in a typical week

• 95% of New Zealand homes (1,725,000) have a television set

• Engaged audiences. With quality professionally produced content on offer, New Zealanders spend 2 hours 21 minutes per day on average watching Linear television

• Unbeatable viewability. 89% of all linear television content is viewed live, on the large screen. And TV advertising is 100% visible, 100% of the time, driving more overall attention

• A brand safe and effective environment. There is no chance of rubbing shoulders with inappropriate content, with TV people are choosing to watch a programme, they are relaxed, have the time to watch ads – and indeed they expect them

Sources: Nielsen Television Audience Measurement, Nielsen Consumer and Media Insights, Professor Karen Nelson-Field Benchmark Series - Viewability

Source: Professor Karen Nelson-Field Benchmark Series 2017: Viewability. Find more information about this study here

THE IMPORTANCE OF ATTENTIONI N A N AV E R A G E A D S E C O N D , T V S C O R E S M O R E A C T I V E AT T E N T I O N T H A N O T H E R V I D E O P L AT F O R M S

TV YOUTUBE FACEBOOK

ACTIVE VIEWING 58% 31% 4%

PASSIVE VIEWING 40% 37% 94%

NON-VIEWING 2% 32% 2%

THE NEW ZEALAND TV AUDIENCE

TV REACHES KEY DEMOGRAPHIC GROUPST H E N E W Z E A L A N D L I N E A R T V A U D I E N C E

• TV reaches 56% of New Zealanders each day and 75% within a week

• 25-54 year-olds make up 40% of the average audience • 1 million of this core demographic are reached by TV in a typical day• They spend 2 hours 10 minutes watching Linear TV per day

• 8 out of 10 Household Shoppers with Children can be reached by TV in a typical week• And this group watch 2 hours and 19 minutes of Linear TV per day

Source: Nielsen Television Audience Measurement

TV DELIVERS MASS AUDIENCESH O W M A N Y N E W Z E A L A N D E R S WAT C H L I N E A R T V ?

Every day 2.4M (56%)

Every week 3.3M (75%)

Every month 3.8M (82%)

Source: Nielsen Television Audience Measurement (Base: All People 5+, Consolidated, Jan-Dec 2018, All Day, Average Cumulative Reach (daily/weekly/monthly))

LINEAR TV IS WATCHED BY ALL AGE GROUPSP R O F I L E O F T V V I E W E R S ( % I N E A C H A G E / G E N D E R D E M O G R A P H I C )

Source: Nielsen Television Audience Measurement (Base: All People 5+, Consolidated, Jan-Dec 2018, All Day)

11.5 12.6 10.6

15.1 14.4 15.7

24.4 23.5 25.1

18.9 18.9 18.9

16.5 19.3 14.2

13.6 11.415.5

TOTAL MALES FEMALES

5-24 25-39 40-54 55-64 65-74 75+

HOW MANY PEOPLE DOES LINEAR TV REACH IN A DAY?K E Y D E M O G R A P H I C S - D E TA I L O F A L L D AY R E A C H

All Day Audience

Average Daily Reach

Average Daily Reach (%)

All People 5+

2,471,600

56.3

All People 25-54

1,051,700

56.2

Main HH Shopper

with Child

301,000

57.4

Source: Nielsen Television Audience Measurement (Base: All People 5+, 25-54, Main HH with child, Consolidated, All Day, Jan-Dec 2018, Average Daily Cume Reach

HOW MANY PEOPLE DOES LINEAR TV REACH IN A WEEK?K E Y D E M O G R A P H I C S - D E TA I L O F W E E K LY R E A C H

Weekly Audience

Average Weekly Reach

Average Weekly Reach (%)

All People 5+

3,269,000

74.5

All People 25-54

1,414,000

75.6

Main HH Shopper

with Child

417,000

79.5

Source: Nielsen Television Audience Measurement (Base: All People 5+, 25-54, Main HH with child, Consolidated, All Day, Jan-Dec 2018, Average Weekly Cume Reach

HOW LONG DO THEY SPEND WATCHING LINEAR TV?T I M E S P E N T V I E W I N G P E R D AY ( h h : m m )

Source: Nielsen Television Audience Measurement (Base: All People 5+, Consolidated, Jan-Dec 2018, All Day) This number includes FTA viewing within Sky Homes*Includes live viewing and playback through the TV set at the time it is watched within 7 days. Time bands use the industry standard 26-hour TV clock: 0200-2600

All People

5+

All People

25-54

Main HH

Shopper with

Child

2:21 2:10 2:19

M a j o r i t y o f t i m e i s s p e n t v i e w i n g b e t w e e n 1 5 0 0 a n d 2 3 0 0 *

HOW WE WATCH TV

H O W W E W AT C H T V

• 89% of all broadcast TV viewing is live, meaning the majority of ads on TV are non-skippable.

• An average New Zealand home has 7.3 screens – more ways than ever to watch video content.

• While New Zealanders do have choice, significantly more time is spent viewing Live TV on the TV Set than watching TV/Video online on other screens.

• Of the most popular programmes among 18-54 year-olds in 2018, over half were local content (sport, reality/drama; documentaries and news). The Royal Wedding was the third most popular, while the majority of the remaining programmes were movies.

Sources: Nielsen Television Audience Measurement, Nielsen Consumer and Media Insights

89%

11%

Live Timeshifted

TELEVISION IS PREDOMINANTLY VIEWED LIVEW H I L E H A L F O F N Z H O U S E H O L D S H AV E A P V R , M O S T V I E W I N G I S L I V E

Source: Nielsen Television Audience Measurement (Base: All People 5+, Consolidated, Jan-Dec 2018, All Day, % of Playback viewing)

T H E M A J O R I T Y O F T I M E S H I F T I N G I S D O N E W I T H I N 2 4 H O U RS O F

B R OA D C A S T … . S OA P, M I N I S E R I E S A N D D R A M A A R E T H E

M O S T P O P U L A R G E N R E S , A D D I N G R E A C H TO

P R O G R A M M I N G I N T H E S E C AT E G O R I E S

AN AVERAGE NEW ZEALAND HOME HAS

MORE THAN 6 SCREENS

Source: Nielsen Consumer and Media Insights, 10+, Year ending Quarter 4 2018. Base = Main Household Shopper

MANY OPTIONS TO CONSUME TV A N AV E R A G E N Z H O M E H A S M O R E T H A N 7 S C R E E N S …

1.7 2.4 1.0 2.1

TV Mobile Tablet Desktop/Laptop

ALMOST EVERY HOUSEHOLD HAS A TV SET (ANY TYPE)… A S W E L L A S M A N Y O T H E R S C R E E N S … C O M PA R E D T O 2 0 1 7 , T H E R E H A S B E E N A N 1 8 % I N C R E A S E I N H O M E S W I T H A C O N N E C T E D T V

Source: Nielsen Consumer and Media Insights, 10+, Year ending Quarter 4 2018. Base = Main Household Shopper

34%

45%

75%

77%

95%

Connected TV

Tablet

PC/Laptop

Smartphone

TV (All)

MOST TIME SPENT WATCHING LINEAR TVW H I L E T H E R E A R E M A N Y W AY S T O W AT C H T V, M O R E T I M E I S S P E N T W AT C H I N G L I N E A R T V O N A T V S E T I N A T Y P I C A L W E E K ( h h : m m )

17:02

05:44

Time spent watching Linear TV on a TV Set Time spent watching any TV/Video online on any device*

Source: Nielsen Television Audience Measurement All People 10+, Consolidated, Jan-Dec 2018, All Day*Source: Nielsen Consumer and Media Insights, 10+, Year ending Quarter 4 2018. Time spent watching TV/video/movies online on: PC/Laptop, Mobile, SmartTV/TV that connects to the internet, Tablet in the last7 days

CO-VIEWING

TV’S SHARED EXPERIENCE CREATES

A STRONG EMOTIONAL

CONNECTION WITH AUDIENCES

TELEVISION VIEWING IS A SOCIAL ACTIVITY

While we’ve seen many changes in the television landscape, one thing that’s remained the same is that TV still brings in large audiences and television content drives a shared experience.

Humans are naturally social and want to share their experiences, thoughts and feelings. One of the many benefits of television viewing is those watercooler moments that are shared together.

TV fosters emotional connections and nothing entrenches those connections better than conversations with friends or family.

With TV creating such a strong shared experience, itbecomes the best possible context for advertisers who also want to create an emotional connection with their audiences.

T E L E V I S I O N V I E W I N G I S A S O C I A L A C T I V I T Y

Source Nielsen Television Audience Measurement 2018 Peak time = 1800 - 2230

52%48%

Solus viewing Co-viewing

5 2 % o f p e a k t i m e * v i e w i n g i s c o - v i e w i n g ( v i e w i n g w i t h o t h e r s )

T E L E V I S I O N V I E W I N G I S A S O C I A L A C T I V I T YC o - v i e w i n g i s h i g h e s t ( 5 4 % ) d u r i n g t h e c o r e e v e n i n g f a m i l y v i e w i n g t i m e o f 1 9 3 0 - 2 1 0 0 .

Source Nielsen Television Audience Measurement 2018

44%

51%

52%

54%

All Day

1800-2400

Peak (1800-2230)

1930-2100

% of co-viewing by daypart

4 7 % o f c h i l d r e n ’ s v i e w i n g i s

c o - v i e w i n g w i t h a n a d u l t

Source Nielsen Television Audience Measurement 2018

TOP PROGRAMMES

WHAT WERE THE MOST POPULAR PROGRAMMES IN 2018?T O P 2 0 P R O G R A M M E S – L I N E A R T V - A L L P E O P L E 1 8 - 5 4

Target: All People 18-54 Average combined episodes - 1 January to 31 December 2018; All Day (2am – 2am) TVNZ 1* = TVNZ 1 and TVNZ 1 +1;

TVNZ 2* = TVNZ 2 and TVNZ 2 + 1; Three* = Three and Three Plus 1

**Sunday Special on 11 November – a special episode covering the impact of the 2016 Kaikoura earthquake.

RANK PROGRAMME CHANNEL AUD% NO. OF EPISODES

1 Stan (Doco) Three* 9.1 1

2 Shortland Street TVNZ 2* 9.1 247

3 Royal Wedding Prince Harry & Meghan TVNZ 1* 9.0 2

4 The Block NZ Three* 8.9 49

5 Intl Rugby Bledisloe Cup SKY Sport 1 8.8 1

6 Sunday Special** TVNZ 1* 8.3 1

7 ComGames 2018 Gold Men’s Rugby7s TVNZ 1* 8.1 1

8 Jack Reacher Never Go Back (Movie) TVNZ 2* 8.1 1

9 Moana (Movie) TVNZ 2* 7.8 1

10 Hyundai Country Calendar TVNZ 1* 7.7 38

11 Married At First Sight Three* 7.7 32

12 Dancing With The Stars Three* 7.7 19

13 Police Ten 7 TVNZ 2* 7.5 40

14 Elton John I'm Still Standing (Doco) TVNZ 1* 7.5 1

15 1 News TVNZ 1* 7.4 365

16 Zootopia (Movie) TVNZ 2* 7.4 1

17 The Magnificent Seven Three* 7.1 1

18 CommGames 2018 Gold Women’s Rugby7s TVNZ 1* 6.9 1

19 Harry Potter and the Deathly 2 (Movie) TVNZ 2* 6.8 1

20 John Wick (Movie) TVNZ 2* 6.7 1

GLOSSARY

KEY TERMS AND DEFINTIONS

30

Term Definition Notes

As Live Viewing of recorded television broadcast content that occurs within the same research

day (2am-2am) but viewed at a later time than the original broadcast time; for example,

pausing a program and then continuing to watch it as a recording

Average Daily Reach

(000’s or %)

The sum of the number of unique viewers who have seen at least one minute of an

event or time band across the day, averaged across a period of time (days).

An individual or household is only counted

once per day if they have viewed at least

one minute of the event or time band

AUD% The average viewing audience for a demographic expressed as a percentage of the

relevant Universe Estimate

Also known as TARP (Target Audience Rating Point)

= Audience / Universe Estimate

Audience or AUD (000s) The average number of people (or homes) in a target market who were watching a

specific event or time band each minute, expressed in absolute figures for that

demographic

= sum of people watching each minute of

the show or time band / sum of minutes

Connected TV A TV set that is connected to the internet, allowing viewers to not only watch Linear or

Broadcast TV but also watch Video on Demand etc

Consolidated Data:

Consolidated 7

Nielsen’s final ratings incorporating ‘Live’ viewing and viewing of broadcast content

that is played back through the television set at normal speed either within seven

days of original broadcast ('Consolidated 7')

Consolidated 7 = 'Live' + 'As Live' + 'Time

Shift to 7'

Demographic (group) or

Target

Basic descriptor of individuals or households using classifications such as age,

sex, occupation group, education level, household size, etc

Linear TV TV received via aerial, satellite or cable is Linear TV i.e. any TV that is not viewed

over the internet. Sometimes referred to as Broadcast TV, it can be watched as

Live TV or time-shifted as Playback TV

Live Viewing of a television program as it is actually broadcast

Main HH Shopper Person aged 18 or older who has primary household shopping responsibilities

KEY TERMS AND DEFINTIONS

31

Term Definition Notes

Overnight Data Nielsen ratings delivered each morning for the previous research day, incorporating

‘Live’ viewing and viewing of content that was broadcast yesterday, recorded and

played back by 2am (‘As Live’ viewing)

‘Live’ + ‘As Live’ viewing

Profile% Shows the audience composition of an event or time band by calculating the

proportion of viewers in the target demographic to the number of viewers in the base

target (usually Total People)

= Audience of target group of interest /

Total People Audience

Reach OR Reach (1 min) OR

Cumulative (Cume) Reach

The sum of the number of unique viewers who have seen at least one minute of an

event or time band across its total duration

An individual or household is only counted

once if they have viewed at least one

minute of the event or time band

Reach% The sum of unique viewers expressed as a percentage of the universe for the target

demographic

= Reach / Universe Estimate

Research Day 2am – 2am on any calendar day

Sample Size The panel size for any specific demographic

TARP (Target Audience Rating

Point)

The average viewing audience for a demographic expressed as a percentage of the

relevant Universe Estimate

= Audience / Universe Estimate

Timeshifted Linear TV recorded on a Personal Video Recorder (PVR), VCR or other form of time-

shifting technology and watched after the live broadcast. Also referred to as Playback

TV. Can be viewed up to 7 days from broadcast

Time Spent Viewing / Demo Of the total number of people in the target market (potential audience), the number of

minutes each person viewed of a specific event. This variable considers the potential of

the target, even if many individuals in the target audience did not watch the event being

analysed

= (Audience / Universe Estimate) x

Event Duration

Time Spent Viewing / Viewer The average number of hours or minutes each individual has seen of the program or

time band being analysed compared to the total number of people in the target

audience. Each individual must have watched at least 1 minute of the event to be

counted

= (Audience / Reach) x Event Duration

Total TV The Total Audience viewing across all of the TV channels that are broadcasted and

measured by Nielsen – includes Live and Consolidated