Audience.2

Confidential & Proprietary • Copyright © 2009 The Nielsen Company

Recognising Audience

Prepared: September 2009

Stuart Jamieson Executive DirectorNielsen Media

Confidential & ProprietaryCopyright © 2009 The Nielsen Company

Agenda

•Media Trends – Key themes

•Media Research

–Audience Measurement

–Targeting an Audience


Media Trends - Key themes

• Technology driving change

•Choice continues to increase

•Mobility becoming a more popular choice

• Anytime anywhere consumption

• Television maintaining ground and some interesting increases, but effort to view in decline

• Pressure on print

•Radio declining among some featured targets

• The rise and rise of the Internet


Time Spent with Electronic Media

Average time spent in a week in minutes

Television Radio Internet (Home)

2004 2006 %var 2008 %var 2004 2006 %var 2008 %var 2006 2008 %var

All People 10+ 1197 1194 -0.3% 1204 0.8% 880 829 -5.8% 796 -4.0% 287 347 20.9%

10-19 1239 1209 -2.4% 1185 -2.0% 645 535 -17.1% 482 -9.9% 313 359 14.7%

20-29 1226 1191 -2.9% 1185 -0.5% 1049 975 -7.1% 929 -4.7% 442 534 20.8%

30-44 1138 1144 0.6% 1136 -0.7% 948 922 -2.8% 856 -7.2% 288 368 27.8%

45-64 1127 1139 1.1% 1169 2.6% 894 870 -2.7% 846 -2.8% 227 275 21.1%

65+ 1360 1378 1.4% 1431 3.8% 833 779 -6.5% 828 6.3% 174 197 13.2%


90

70

70

69

64

62

61

59

55

55

54

52

41

37

33

24

96

67

59

77

63

65

69

59

65

53

64

53

23

24

17

22

0 20 40 60 80 100

R ecommendations from consumers

C onsumer opinions pos ted online

Brand webs ites

E ditorial content (e.g. newspaper artic le)

B rand sponsorships

TV

Newspapers

Magazines

R adio

B illboards / outdoor advertis ing

Email I s igned up for

Ads before movies

S earch engine ads

Online video ads

Online banner ads

Text ads on mobile phones

G lobal %

NZ %

•Source: Nielsen Global Online Report on Trust in Advertising April 2009 (50 Markets)

Trust in Advertising

•Peer

•Traditional


Consumer Generated Media & Social Networking

• Activities on the net in last 4 weeks

–Social network site – 33.4%

– Youtube – 28.6%

– Read a blog – 16.8%

–Uploaded content to the web – 14.7%


Measuring Audiences


Measuring media audiences

• Allow for population groupings beyond raw numbers – quantify

and qualify

• Enable business to effectively target their consumers and plan

marketing and advertising

• Provide a common measure

• Enable trend studies

• Show consumer preferences

• Show unique points of difference between media


Independence and Insights

•Media research is used as a trading currency for planning

and buying media

• ‘Currency’

–Accepted value by all parties

–Impartial, independent measure of audiences

–Syndicated (open access)

–Subject to auditing (independent scrutiny)


It’s all about the numbers

•How many are there?

•What do they look like?

•Will they like / buy my product?

•What other products do they buy –

how often?

•Where can I talk to them and be

sure they’ll listen?


Who uses the research?

•Media Agencies

• Advertisers

•Media owners


How do we measure an audience

• For each media we use a different method– Television = Peoplemeter Panel– Newspapers and Magazines = Readership Face-to-Face Survey– Radio = Diary Survey– Internet = site census,panel and ISP logs


Television AudienceMeasurement


TV uses the Peoplemeter Panelto measure television audiences

500 households nationwideRecords viewing of all people 5+Guest viewing is includedPassive measurement

• PeopleMeter technology measures:– presence in the room– opportunities to see advertising

• PeopleMeter technology does not measure:– level of interest in or enjoyment

of programming– level of attention to advertising


Television Audience Measurement gives you….

• ‘Ratings’ provide:1. Information about audiences on which programmers can make

decisions on what to buy and where to screen it; and

2. A currency for the buying and selling of commercial air time on TV

• A ‘Rating’ is a survey based estimate of the size of the audience to a channel, programme or time zone expressed as a proportion of the potential audience.


How is a viewer defined?

To be counted as a viewer, the panel member/guest must be: “in the room with the television set on, and watching”

The rating for an individual minute is measured as follows:• The minute is assigned to the station with the longest

consecutive viewing session within the clock minute.• The consecutive viewing session must be longer than 15

seconds.•Where a person does not watch at least 30 seconds within a

minute to any channel, they are not counted as a viewer to any channel• Each viewer minute is assigned to the quarter hour. All ratings

in New Zealand are an average for the clock quarter hour.


Key TV terms

•Rating (AUD: 000’s or %) A ‘Rating’ divides the number of viewers by the total universe (often referred to as the average audience)–Tells us what proportion of people in the total population was

viewing• Share (SHR%)

A share divides the number of viewers by the viewing audience–Shares depict the competitive strength of a programme within its

slot


Key TV terms

•Reach (RCH: 000’s or %)

- Average Daily ReachThe sum of the number of viewers who have seen at least one minute of a programme or daypart across its total duration for a single day (includes Guests)- Cumulative Audience ReachThe total audience who viewed at least one minute during the period of analysis across multiple programmes or dayparts (excludes Guests)


TV Example

The top rating programme between Jan-April 2008 was the Dancing with the Stars Final (Tuesday 15th April)

Target: All People 5+

Number of Viewers watching the DWTS Final: 928,500

Number of Viewers watching any TV: 1,690,900

Rating = Viewers to DWTS Final / Potential 23.6%

Share = Viewers to DWTS Final / Viewers to All TV 54.9%

Average Daily Reach (includes Guests) 1,388,600

Potential Audience: 3,935,900


Print Audience Measurement


What is Readership?

•Definition of a reader–Someone who has read an issue of a publication within the

publication period for a period of 2 minutes or more• ‘Readership’ is defined as the number of readers of any

issue of a magazine or newspaper over its issue period.• Another measure used in the market is ‘Circulation’,

which is:– The number of copies of a magazine/newspaper that is actually

distributed in its issue period – ‘Net Circulation’ is defined as actual net paid sales plus actual free

copies distributed


Readership Methodology

• Face-to-face interview with 12,000 people aged 10+• In field 40 weeks per year• Fully National including rural areas•Masthead cards are used for title identification•Measures the readership of any issue within the

publication’s issue period.


Readership Terms

• Average Issue Readership (AIR) – Number of people to have read an average issue of a newspaper or magazine over its issue period•Weekly/Monthly Coverage – Total number of people to

have read an issue in the period• Average Frequency – The average number of times

someone has read a magazine over it’s last 4 issues


Top 10 Magazines for 2008All people aged 10 years and older

•Source: Nielsen Media Reaserch National Redership Survey 2005

Rank Magazine Potential Readers (000's)

1 NZ Woman's Weekly 863

2 Woman's Day 805

3 TV Guide 726

4 Australian Women's Weekly 632

5 NZ House & Garden 573

6 New Idea 464

7 Readers Digest 462

8 National Geographic 448

9 Cuisine 389

10 NZ Hunting & Fishing 380


Radio Audience Measurement


Radio Methodology

• Face to face placement 10 +

• 2 waves per year

• 7 day diary in 15 minute time increments

• A Radio Listener is defined as someone who has listened

for a period of 8 consecutive minutes


Radio Terms

• Station Share – How the audience is distributed across stations• Station Cume - How many people have listened to a

station over a period of time• Average Audience – the average number of a target in

any selected time period


Auckland Listeners Survey 1 2006 Aucklanders18-34 6am-12mn

Station Share

More FM

Classic Hits

Other Radio

Network

Other The Rock

ZM 91.0

George FM

95bFM

Radio Tarana The Edge

Niu FM

Other Radio Works

Mai FM88.6

•Source: Research International RADIOS 1/06

Weekly Station Cume

0 20 40 60 80

The Rock

More FM

Classic Hits

The Edge

ZM 91.0

Mai FM88.6

(000's)


Internet Audience Measurement


Online Methodology

• Tag based website – Subscriber

–Scripts on websites transmit information back to research agency

• ISP log based

– Logs supplied to research agency by ISP

• Panel survey based

–Online users are recruited to a panel and their online behaviour

monitored by a script on their PC


Website Audience Measurement Terms – Browser based methodology*•Reach•Unique Browsers (UB): Each user visiting a site has a unique cookie id assigned to their browser to help determine browser uniqueness. This metric displays the number of Unique Browsers which visited a site owned by the publisher within the selected reporting period.

•Average Daily Unique Browsers (Ave Daily UB): The average UB of the days in the reporting period, or the period to date.

•Engagement•Unique Browser Frequency (UB Frequency) represents the average number of times a Unique Browser returns to a site during the reporting period.

•Page Impressions (PI): The total number of web pages successfully viewed within the selected reporting period.

•Average User Session Duration (ASD) shows the average length of a User Session.

•Total Time on site: The total amount of time all UBs spent on site in the reporting period.

•*Source : Nielsen Market Intelligence – New Zealand industry approved standard of website audience measurement


Top Commercial Websites in NZ*

•Source : Nielsen Market Intelligence Domestic – NZ Audited Commercial sites only – Average Daily Unique Browsers for September 2009

Name PublisherAve Daily

UB UB Freq ASD

trademe.co.nz Trade Me Ltd 515,522 5.92 17:29

yahooxtra.co.nz Yahoo!Xtra 358,798 6.29 03:43

msn.co.nz MSN New Zealand Limited 256,673 5.09 01:05

nzherald.co.nz APN Holdings NZ Ltd 174,762 4.83 06:27

stuff.co.nz Fairfax New Zealand Limited 173,673 5.17 05:22

yellow.co.nz Yellow Pages Group 76,213 1.94 02:47

metservice.co.nz Meteorological Service of NZ 59,789 3.53 01:13

tvnz.co.nz TVNZ 53,688 2.54 04:58

seek.co.nz SEEK 46,339 2.28 07:05

nzcity.co.nz New Zealand City Ltd 34,076 5.24 01:46


Targeting an Audience


Finding and communicating with a target audience

•Who are my customers/target audience?•What media are they using, where, when, for how long?•Who buys our brand/competitors brands and how much

do they consume?•Where do they live?•What are their thoughts and feelings?•What do they aspire to?•How do they live their lives?•Which types of messages will they respond to?

What media or combination of media can I use to reach my target?


Typical Target Audience Case Study

Shopper Parents who want healthy food for children

Household Shoppers with Kids 0-14 who agree“It is essential that school kids have healthy food in their lunches”

55% of HHS with Kids 0-14yrs definitely agree (306,000 people)


HHS: Healthy Food For Kids

306,000 household shoppers with kids aged 0-14yrs

HHS with Kids 0-14 who agree on healthy food, also agree85% All GM food should be labelled (123)79% Compare prices when grocery shopping (127)66% like to try new types of food (127)65% try to balance healthy eating with their busy lifestyle (129)63% People would say I am organised (123)63% food should be additive free (124)56% buy more fresh / chilled foods than used to (124)53% enjoy shopping for clothes / personal items (133)53% Often use coupons for discounts (124)51% are on a very tight budget (132)

HHS with Kids 0-14 who agree on healthy food, also agree85% All GM food should be labelled (123)79% Compare prices when grocery shopping (127)66% like to try new types of food (127)65% try to balance healthy eating with their busy lifestyle (129)63% People would say I am organised (123)63% food should be additive free (124)56% buy more fresh / chilled foods than used to (124)53% enjoy shopping for clothes / personal items (133)53% Often use coupons for discounts (124)51% are on a very tight budget (132)

Base: All People 10+; figures in brackets are an index with a base of 100

HHS Kids 0-14 Avg. HHI $82,030Target Group Avg. HHI $81,261HHS Kids 0-14 Avg. HHI $82,030Target Group Avg. HHI $81,261

(180) (228) (44)

(92)

HHS with Kids 0-14 who agree on healthy food have been to:68% Public Park (140)58% Public Library (132)54% Public Swimming Pool (181)44% Children's Entertainment Event/Place (200)27% Zoo (166)

HHS with Kids 0-14 who agree on healthy food have been to:68% Public Park (140)58% Public Library (132)54% Public Swimming Pool (181)44% Children's Entertainment Event/Place (200)27% Zoo (166)

HHS with Kids 0-14 who agree on healthy food enjoy:82% Family Outings (139)68% Entertaining at home (124)71% BBQs (130)52% Home Decorating (137)32% Arts / Crafts (147)

HHS with Kids 0-14 who agree on healthy food enjoy:82% Family Outings (139)68% Entertaining at home (124)71% BBQs (130)52% Home Decorating (137)32% Arts / Crafts (147)

Much more likely to read food titles than the average HHs with kids 0-14!16% Cuisine (index 140 compared to 122)14% Foodtown Magazine (index 178 comp to 168)13% Healthy Food Guide (index 189 comp to 163) 9% Taste (index 167 comp. to 152)

More likely to read Woman’s Day (33% index 145) and NZ Woman’s Weekly (31% index 127)

Much more likely to read food titles than the average HHs with kids 0-14!16% Cuisine (index 140 compared to 122)14% Foodtown Magazine (index 178 comp to 168)13% Healthy Food Guide (index 189 comp to 163) 9% Taste (index 167 comp. to 152)

More likely to read Woman’s Day (33% index 145) and NZ Woman’s Weekly (31% index 127)

31% state that direct mail is their preferred way to hear about sales promos/special events (124)

46% state that they like to receive offers in the mail that value them as a customer (121)23% state that DM is their preferred way top hear about new products / services (119)

31% state that direct mail is their preferred way to hear about sales promos/special events (124)

46% state that they like to receive offers in the mail that value them as a customer (121)23% state that DM is their preferred way top hear about new products / services (119)

Fruit Juice Regularly Buy:30% Just Juice (144)25% Powdered Fruit Drinks (198)19% Fresh Up (141)14% Keri (126)11% Cordials & Concentrates (165)

Fruit Juice Regularly Buy:30% Just Juice (144)25% Powdered Fruit Drinks (198)19% Fresh Up (141)14% Keri (126)11% Cordials & Concentrates (165)

Where bought juice in last 7 days?58% Supermarket6% Dairy / Convenience5% Service Station3% Other Place

Where bought juice in last 7 days?58% Supermarket6% Dairy / Convenience5% Service Station3% Other Place


Base: All People 10+; figures in brackets are an index with a base of 100

Media Usage306,000 household shoppers with kids aged 0-14yrs

HHS with kids aged 0-14yrs who agree that “it is essential that school kids have healthy food in their lunches” are significantly more likely to be heavy consumers of direct and unaddressed mail. They are significantly less likely to be heavy newspaper readers and cinema goers. They are more likely to be moderate newspaper readers, internet users and radio listeners.

HHS with kids aged 0-14yrs who agree that “it is essential that school kids have healthy food in their lunches” are significantly more likely to be heavy consumers of direct and unaddressed mail. They are significantly less likely to be heavy newspaper readers and cinema goers. They are more likely to be moderate newspaper readers, internet users and radio listeners.

Confidential & ProprietaryCopyright © 2009 The Nielsen Company•Confidential & Proprietary • Copyright © 2007 The Nielsen Company

Education

Audience.2