Video Ad Summit 2016 Opening Presentation

Convergence 2016: Factors driving change in the 2016/2017 Upfront and beyond

Tim Castree Managing Director, North America

The Year of Headlines

Verizon buys AOL for $4.4 billion AT&T, DirecTV complete merger to form biggest pay-TV company

F.C.C. Approves Charter Communications’ Time Warner Cable Buyout

ACQUISITION

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Microsoft to buy LinkedIn for $26.2B in cash, makes big move into enterprise social media


F.C.C. Approves Charter Communications’ Time Warner Cable Buyout Microsoft to buy LinkedIn for $26.2B in cash,

makes big move into enterprise social media

Twitter Beats Amazon, Verizon for Global NFL Streaming Deal

How Will Facebook Make Money Off Live Video? Just Look at TV.

Interpublic to Shift $250 Million in TV Ad Spending to YouTube

The Year in HeadlinesDISTRIBUTION

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Big Data Era Dawns for Advertising Dealmakers

Nielsen Plays Catch-Up as Streaming Era Wreaks Havoc on TV Raters

ComScore Completes $768M Merger With Rentrak In Bid For Cross-Screen Measurement

The Year in Headlines

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Big Data Era Dawns for Advertising Dealmakers

Nielsen Plays Catch-Up as Streaming Era Wreaks Havoc on TV Raters

ComScore Completes $768M Merger With Rentrak In Bid For Cross-Screen Measurement

NBCUniversal Will Start Selling TV Advertising Programmatically This Fall

Viacom Aims to Make Data Accessible to All Marketers

Fox Takes Stab At Programmatic TV Advertising

The Year in HeadlinesBUYING MODELS

5

4%

OTT & SMART TV

7%

TABLET

1%OTT

5%

MOBILE

7%

COMPUTER

77%

TV

3%

MOBILE

1%

COMPUTER

93%

TV

99%

TV

100%

TV

1%

COMPUTER

% of Time Spent on Devices

2000 2005 2010 2015

• Cable companies begin testing VOD and SVOD

2001• 2005 - Youtube launches• 2006 –Apple TV launches• 2007 – Netflix starts streaming

• 2008 – Hulu & Roku Launches• 2009 – Analog TV turns off

2005 - 2010• 2013 - Broadband customers surpass

number of cable subscribers• 2014 - Netflix wins an Emmy

2010 - 2015

CONSUMER-LED SHIFTS DRIVING CHANGE

6Source: Videology % estimates from Nielsen, eMarketer trend data.

4%

OTT & SMART TV

7%

TABLET

1%OTT

5%

MOBILE

7%

COMPUTER

77%

TV

3%

MOBILE

1%

COMPUTER

93%

TV

99%

TV

100%

TV

1%

COMPUTER

% of Time Spent on Devices

2000 2005 2010 2015

Most Watched Program(% of Viewers)

12.3%

9.2%

7.8%

16.9%

Time Spent on Devices

4.1Hours

4.5 Hours

7.6Hours

9.9Hours

CONSUMPTION BOOMING, YET FRAGMENTING

7Source: Highest rated programs based on Nielsen A18-49 Live+7 data. Time spent data calculated by Videology from Nielsen and KPCB data.

Source: Nielsen Total Audience Measurement, single TV episode (premiere of Limitless, CBS) from September 2015, all demos.

Live Viewing Varies by Demo:• Adults 50+ = 64% Live• Adults 25-34 = 15% Live

HOW WE WATCH TV TODAY…A GLIMPSE IN TIME

DVR 32%(1-7 days after airing)

Digital 8%(1-35 days after airing)

VOD 7%(1-35 days after airing)

Connected TV 6%(1-35 days after airing)

DVR 2%(8-35 days after airing)

LIVE 45%

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THE RESULT: ADVERTISERS and MEDIA COMPANIES FACE NEW CHALLENGES

New Players

Audience Buying

Siloed Tech Stacks

Fragmented Audiences

Unmeasured & Unmonetized

Channels

Converged Media

Landscape

1st Party Data

WALLED GARDENS:Self-Made & Other

3rd Party Data

Thank you.Now on to the panelists…

10

Internet

Video Ad Summit 2016 Opening Presentation