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LEAP-ing into the Future

Leveraging Emotional Attachment for Profit

NewMediaMetrics

New Media Metrics – For the New Media World

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Responding to Marketplace Changes and Consumer Pull

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Responding to Marketplace Changes and Consumer Pull

Emotional Attachment

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Responding to Consumer Pull

In today’s complex marketplace we must

Follow the consumer as they “PULL” media and messages to them

Understand the relative importance of differing media platforms and media types

Make a major shift from buying media to Buying the Buyers

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Emotional Attachment is a Powerful Measure of “Consumer Pull”

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Quantifying Emotional Attachment

NewMediaMetrics employs a proprietary, patent-protected process/approach to…

quantitatively measure Emotional Attachment (EA) to brands and media properties

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Quantifying Emotional Attachment

EA™ has been proven to be highly predictive of both

•purchase behavior and

•media viewing behavior

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Foundation

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1937

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John Bowlby (1907-1990), and his groundbreaking books on Attachment Theoryand the Bonding Process

Over 70 Years Ago, the Academic World Provided a Bedrock Foundation for Measuring

Emotional Attachments

Over 70 years of empirical proof

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Applying Emotional Attachment in the Marketing/Media World

Emotional Attachment to both brands and media properties is measured on a 11 point scale (0-10).

Those who rate a brand 9/10 – buy the product with great frequency, go deeper into product line, pay more, etc.

Those who rate a media property 9/10 – “pull” the media property to them and intently view it

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Its Important BecauseEmotionally Attached Consumer Are

2 ½ times more likely to pay attention to ad messages from specific brands

Paying 40% more attention to the media they are viewing and view it more often

43% of them were likely to activate social channels to tell their friends and family about new products and services

Over 3 times more likely to buy/use the product

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Media and Brand Alignment“LEAP-ing”

High-ValueBrandBuyers

MediaIntently Consume

Emotional Attachment

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New Measures for a Transforming Marketplace

Better Reflect Today’s Market

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The Transformational Marketplacefrom the Consumer’s Perspective

Print Pubs

Network/CableTV Networks OTT

DigitalWeb Media

Brands

Consumer

“Pull”

Content/Programming

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NMM Data reveals…EA™ Across 13 Platforms

Index To Average Emotional Attachment To Advertising By Media Platform

Index ToAverage 181 129 120 119 115 109 100 82 82 79 67 66 53

Source: New Media Metrics Inc. 2011 LEAP Database

TVOther

Traditional Media

Online, Social Networks And

Texting

Traditional media, Radio and print, generate only somewhat higher emotional attachment than new media options: Online in general, Social Networks and Cell Phone Text Messaging

Video onlineTablets

Smart Phone

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Teens And Young Adults Have The Greatest Range Of Platform Attachments

Emotional Attachment To Advertising By Media Platform9/10 On 10 Point Scale

Newer media are NOT “replacing” older media. Next generation consumers are able to consume many media across many platforms

TVOther

Traditional Media

Online, Social Networks And

Texting Video Online, TabletsSmart Phone

Source: New Media Metrics Inc. 2011 LEAP Database

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Impact on TV Viewing is Substantial

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Predicting TV Ratings with EA™

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TV Rating

Predicting TV Ratings with EA™

EA Across 40 Demos18-2425-3435-54

etc.

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EA = Media Engagement

Because…

People Highly Attached to a media property are– 46%* more likely to view every episode (frequency)

And

– 40%* more intently viewing that show (engagement)

EA predicts the “pull” (or draw) of the market and translates into viewer ratings.

* Global Media Agency: MediaVest EA Vetting Study

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PredictionsAll Shows 2006-2011

Graphed Model uses 2006, 2007, 2008, 2009 , 2010, 2011 Nielsen Ratings data. Model includes by-demographic EA Index and NTI data.

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2012

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Yahoo News – July 8, 2012

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2012 EA™ Ratings (as of May 2012)

NewMediaMetrics, using a network provided concept statement, knew Anger Management would be a hit while Bristol Palin would flop

prior to the show airing

Anger Management was the highest EA™ rated show out of all 29 new cable shows in study; Bristol was 28 out of 29

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But Changing TimesRequire Fresh Models

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2008-2011 TV ProgrammingPredictions in TV Environment Only

Models comparing EA directly to TV alone are quickly outdated

Source: TGP 2011 Statistical TV Prediction Model (prior to adjustment)

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LEAP-ing Forward

What is driving these trends...“I Watch At My Own Convenience”

What is driving these trends...“I Watch At My Own Convenience”

Cross-Platform Attachment (viewing) by Age

Cross-Platform Attachment (viewing) by Age

A View By Program

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Cross-Platform Viewing (Attachment) toRevolution among 35+

Cross Platform Viewing (Attachment) toRevolution among 18-24 year olds

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Cross Platform Viewing (Attachment) toThe New Normal among 35+

Cross Platform Viewing (Attachment) toThe New Normal among 18-24 year olds

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Cross-Platform Viewing (Attachment) toBeauty and the Beast among 18-24 years olds

55%

47%

30% 29%

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Taking into to Account Where People Will “Pull” Content

TV

DOT com

OTT

Tablet

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2008-2011 TV ProgrammingPredictions with Cross-Platform Adjustments

Cross-Platform Viewing Adjustments

Cross-PlatformEnvironment Adjustment

Source: TGP 2012 Statistical TV Prediction Model (with non-TV viewing EA adjustments)

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In Conclusion…

Profound transition

new forms of media to account for

new methods and metrics of evaluation and

new meaning and frameworks for consumer understanding and insight

BUT

Using approaches based on Fundamental Human Behaviors (EA™) brings the strongest insight

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NewMediaMetrics