Dave Morgan

CEO/FounderSimulmedia

THE DATA-DRIVENFUTURE OFVIDEOADVERTISING

Dave Hohman

EVP, Agency SolutionsNielsen

2

LACK OF TV MEASUREMENTONLINE HAS FULL FUNNEL METRICS

IMPRESSIONS

VISITORS

UNIQUE VISITORS(UNDUPLICATED REACH)

COST-PER-CLICK

COST-PER-ACQUISITION

IMPRESSIONS(GRPS)

SALES

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$6B

$69B $75B$16B

CONVERGENCETV / ONLINE-VIDEO | AUDIENCE / PROGRAMMATIC

Source: MyersBizNet Media and Marketing Investment Data and Forecasts, 1/30/2013.

2013

FULL CROSS-CHANNEL COORDINATION & INTEGRATION

2020

SOME CROSS-CHANNEL COORDINATION & INTEGRATION

$83B

$33B

TVDigital Video

Digital Video

TV TVDigital Video

LITTLE CROSS-CHANNEL BUYING COORDINATION. NO INTEGRATION

Audience-Based

Programmatic

2016

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STORY OF TV FRAGMENTATION

Source: Nielsen, Kantar Media Intelligence and Simulmedia a7. All metrics reported in unequivalized Nielsen Live +3 commerical measures.

35%OF VIEWERSHIP ON TV PROGRAMS HASA RATING OF

0.5+

65%OF VIEWERSHIP ON TV PROGRAMS HASA RATING OF

<0.5

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AUDIENCE CONCENTRATIONS IN NICHES

Source: Nielsen, Kantar Media Intelligence and Simulmedia a7. All metrics reported in unequivalized Nielsen Live +3 commerical measures.

OF VIEWERSHIP ON TV PROGRAMS HASA RATING OF

0.5+

OF VIEWERSHIP ON TV PROGRAMS HASA RATING OF

<0.5BIG BOXRETAIL SHOPPERS:

10 % OF PROGRRAMSINDEX ABOVE 150

BIG BOXRETAIL SHOPPERS:

0% OF PROGRRAMSINDEX ABOVE 150

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1950’s& 1960’s

1970’s& 1980’s

1990’s - 2005

BLACK & WHITE TVFIRST SATELLITE

BROADCAST

RISE OF CABLE

TV

MORE ADVERTISER-SUPPORTED NETWORKS

VIDEO GAMES

2006 - Present

DIGITAL AND INTERNET

REVOLUTION

DVD DVR VOD

SMART-PHONES

HDTV TABLETS OVER-THE-TOP DISTRIBUTION

SMART TV WITH SOCIAL

CAPABILITIES

APP DRIVEN DIGITAL WORLD

Accelerating change in our futureCHANGES IN THE MEDIA LANDSCAPE

VCR

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Source: The Nielsen Cross-Platform Report Quarter 2 2014, NPOWER HHLD, Mobile Insights P13+, Custom Data Smart TV and Multimedia Device, May 2014 and May 2013 YOY

MORE CHOICES BEING DRIVEN BY TECHNOLOGY% diff YOY

+6%

-2%

+1% +1%

+2%

+14% +54%

+90%

NA

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AN EXPANDED VIEW OF MEDIA CONSUMPTION

Source: The Nielsen Cross-Platform Report Quarter 2 2014; Exhibit 1

Q2 2012

Q2 2013

Q2 2014

4:45

4:48

4:36

0:25

0:27

0:31

0:09

0:09

0:09

0:09

0:09

0:11

1:03

1:01

1:07

0:48

1:04

1:25

2:52

2:48

2:45 0.00208333333333333

Live TV Watching Time-shifted TV Using DVD/Blu-Ray Device

Using a Game Console Using Internet on a Computer Using a Smartphone

Listening to AM/FM Radio Using a Multimedia Device

Average time spent per Adult 18+ per day

Media choice drives consumer choice

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ENABLED SMART TV ALMOST DOUBLED FROM PRIOR YEAR

Source: Nielsen Custom Data HHLD

August 2013

No Smart TV; 85%

Smart TV and

en-abled;

7%

Smart TV and not enabled; 9%

15%

Smart TV Penetration

No Smart TV; 79%

Smart TV and

en-abled; 13%

Smart TV and not enabled; 9%

21%

August 2014

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72%

4%

13%

3%5%2%

Live TV (excluding AOT) AOT Timeshifting DVD Game Console Multimedia Device

LESS LIVE TV AMONG ENABLED SMART TV USERS, MORE AOT AND DEVICE CONTRIBUTION

Source: Nielsen Custom Study, HHLD, Prime, Percentage share of included sources, Live TV is based on all station minutes contributing to PUT, August 2014

Enabled Smart TV Not Enabled Smart TV No Smart TV

66%7%

13%

3%6% 4%

77%

4%

10%3%

5%1%

Live TV including

AOT

74% 76% 82%

Unidentified tuning or AOT may signify that an enabled Smart TV is being used to stream content

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BY DEVICE TYPE

BY ADVERTISING MODEL

BY CONTENT TYPE

BY DELIVERY TYPE

BY USAGE

CROSS PLATFORM – DEFINING OUR UNIQUE POSITION

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COMPARABLE RATING

LIGHTING UP DIGITAL – AND COMPARING DIRECTLY TO TRADITIONAL CURRENCY

Digital AudioRatings

DIGITAL AUDIO

Digital VideoRatings

Digital DisplayRatingsDIGITAL

DISPLAY

Digital TV/C3Ratings

GOLD STANDARD

PROCESSSINGLE SOURCE

PANEL

ONE ENCODING PROCESS

BIG DATA ENABLED

MEASUREMENT

ONE CLIENT-SIDE IMPLEMENTATION

Cross Platform

TV ORIGINATED

NATIVE DIGITAL ORIGINATED

SOFTWARE METER

MRC ACCREDITEDUNIVERSAL

Thank you

@Nielsen @Simulmedia