Understanding the Cross-Media Measurement Challenge

HOWARD SHIMMEL JUNE 15, 2015

WE FACE

MAJOR ISSUES WITH CROSS-

MEDIA MEASUREMENT

•  How we monetize our audiences •  How we distribute our networks

•  How we window our programming

THESE ISSUES IMPACT ALL ASPECTS OF TURNER’S BUSINESS:

WE ALSO FACE

AND INDIVIDUAL MEDIA MEASUREMENT

THE PAST, THE PRESENT, THE FUTURE THE PAST

•  Straight forward linear TV business, major disruption on 2007 with move to C3 •  Digital business, focused on premium content and major sponsorships

THE PRESENT •  More change faster •  TV business becoming more complex- Audiences and Impacts, Platforms, Competitors •  Bifurcated digital business- Premium video becoming more like TV, display mostly

programmatic

THE FUTURE •  We don’t know

WHERE OUR CONTENT IS CONSUMED

DVR Playback (4-7 days)

VOD (C3)

OTT Devices Mobile / PC Streaming (within 7 days)

DVR Playback (C3)

DVR Playback (8+ days)

VOD (4-7 days)

Smart / Connected TV

Out-of-Home

SVOD

Mobile / PC Streaming (8+ days)

TRADITIONAL TV ON DEMAND ALTERNATIVE VIEWING SOURCES

VOD (8+ days)

Live TV

TV MEASUREMENT ISSUES •  Greater sample sizes to address increasing fragmentation

•  Panels, set top box, smart TV data •  Volume measurement versus individual respondents

•  C3/C7/C Infinity •  Move to audiences, not age/sex demos

•  Need for scalable ROI measurement

•  SVOD, OTT, VOD measurement and insight

TOTAL US TRADITIONAL TV SVOD / AOT /

OTHER PC / MOBILE STREAMING TOTAL VIDEO USAGE TIME

PERSONS 18-24 Q1 2014 21.3 7.5 11.3 40.1 Q1 2015 17.6 8.8 15.4 41.7

ACTUAL CHANGE -3.7 1.3 4.1 1.7 % CHANGE -17% 17% 36% 4%

PERSONS 25-34 Q1 2014 27.0 7.2 10.2 44.4 Q1 2015 24.1 8.0 14.8 46.9

ACTUAL CHANGE -2.9 0.7 4.7 2.5 % CHANGE -11% 10% 46% 6%

PERSONS 35-49 Q1 2014 33.3 5.0 6.5 44.8 Q1 2015 31.7 5.6 10.5 47.9

ACTUAL CHANGE -1.6 0.6 4.0 3.0 % CHANGE -5% 12% 62% 7%

PERSONS 50+ Q1 2014 46.6 3.7 3.1 53.4 Q1 2015 45.4 4.2 5.5 55.1

ACTUAL CHANGE -1.2 0.5 2.4 1.7 % CHANGE -3% 13% 80% 3%

BIG CHANGES IN VIEWING BEHAVIOR IN PAST YEAR

NETFLIX EARNINGS RELEASE: 10 BILLION HOURS STREAMED 1Q 2015 6.5 BILLION HOURS STREAMED 1Q 2014

% DOMESTIC STREAMING

% ON TV

NETFLIX SHARE RELATIVE TO TOTAL TV (TOTAL US POP)

HIGH 90%

MEDIUM 80%

BTIGs 73%

LOW 60%

HIGH 95% 8.2% 7.3% 6.7% 5.6%

CENTRIS’ 92% 7.9% 7.1% 6.5% 5.4%

MEDIUM 75% 6.6% 5.9% 5.4% 4.5%

LOW 50% 4.5% 4.0% 3.7% 3.0%

NETFLIX SHARE OF TV VIEWING

NETFLIX IS ~6.5% OF TV VIEWING

% OF TOTAL VIEWING BY PLATFORM LEAKAGE

Live DVR 1-3 DVR 4-7 VOD 4-7 VOD 8+ TVE Monetization Reporting

TBS Ground Floor 84 13 2 0.4 0.8 0.2 3.2 3.4

TBS Cougar Town 71 23 5 0.5 1.1 0.2 6.6 6.8

TNT Librarians 62 28 7 0.8 1.8 0.2 9.6 9.8

TNT The Last Ship 46 39 7 1.4 3.5 1.0 11.9 12.9

LEAKAGE & NON-MONETIZED VIEWING SNAPSHOT

DIGITAL MEASUREMENT ISSUES •  Measuring all platforms/Cross-Device usage •  Viewability •  Demos- OCR and vCE

•  Kids Measurement

•  Granularity of measurement

WHAT DO WE NEED IN A CROSS-PLATFORM SOLUTION? §  Link to currencies used to transact individual media, use high quality fusion or data integration

to combine individual media together

§  Include all platforms §  Needs to provide a platform view, a program/content view, and a selling inventory view

§  Should include both consumption and advertising for display, video, gaming

§  Data needs to exist in systems that are used to analyze audience dynamics and develop integrated packages for our advertisers

–  Combined package of linear TV, digital video, VOD with DAI, Sling TV with DAI

§  Planning data needs to be predictive of data used in post-analysis

Source: 2015 NCAA Cross Platform Report provided by Nielsen. 3/17/15-4/6/15. Data sources include: Nielsen, Nielsen Audio, Adobe and Google Analytics (for B/R),

2015 MARCH MADNESS CROSS-PLATFORM PICTURE 2015 Uniques (000) – 185 Million Total

CAMPAIGN  ROI  EXAMPLE  

ADVERTISED  CAPRI  SUN   TOTAL  CAPRI  SUN  

INCREMENTAL  $/HH   7.25  ¢   7.99  ¢  

ALL  TV  &  DIGITAL  HOUSEHOLDS  REACHED*   28,870,699  

PROJECTED  INCREMENTAL  DOLLARS**   $3.49  MM   $3.84  MM  

COST  FOR  TV  &  DIGITAL  CAMPAIGN   $1,926,954    

RETURN  ON  AD  SPEND   $1.81   $1.99  

*  25.2MM Households were reached through TV, while 7.6MM Households were reached through Digital (3.9MM were exposed to both TV and Digital) **  Projected  Incremental  Dollars  is  based  on  Incremental  $/HH  by  All  TV  Households  Reached,  projected  up  to  reflect  dollars  at  a  Total  Grocery  level    

Source:  dunnhumby  2014/Confiden6al  

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POTENTIAL SOLUTIONS •  Nielsen Total Audience •  Comscore Project Blueprint •  Rentrak •  Reality Minds •  Symphony AM •  Insight Express