Tvis june2016 tvis_luke

Targeting Audiences Across ScreensLuke Stillman

1) The struggles of linear television2) The rise of OTT and digital video3) How cross screen enhances TV’s value4) The future of cross screen advertising

Targeting Audiences Across Screens

Target Audience

2005 2010 2015 2020 (Proj.)

45% 45%34% 27%

26% 20%15% 15%

7% 9%7% 7%8% 7%5% 5%

3%7%

10%

4% 23% 28%

DVD/VideoConsole GamesNewspapersMagazinesReading Books for Leisure*Owned Music/PodcastsPC InternetMobileRadioOn Demand TV∞Live TV

75.5 75.6

89.0

89.3

Source: MAGNA GLOBAL estimates based on the total US population∞ Includes DVR, VOD and OTT streaming* Includes eBooks

Total Media Time is Maxed Out (Adults 18+)

Digital is Overtaking Television (% of Budgets)

Source: MAGNA GLOBAL

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200%

10%

20%

30%

40%

50%

60%

TV

DIGITAL

19941995199619971998199920002001200220032004200520062007200820092010201120122013201420152526272829303132333435

26.4

29.8

28.0

26.2

31.6 hours per week (4h 30m per day)

(-6%)

(-6%)

Source: Nielsen. Includes time shifted viewing after 2005

Traditional TV Viewing Peaked in 2009 (A18-49)

A18-24

1.01

0.790.72

A25-54

2.28

2.18

1.99

4Q13

4Q14

4Q15

(-22%)

(-9%)

(-4%)

(-9%)

Source: Nielsen, Broadcast Prime

Linear TV Primetime Ratings Declining

2005Live TV: 100%

2015Live TV: 66%

Video Consumption Migrating Away from TV (% of Time)

Source: Nielsen, Comscore, Media In Mind, MAGNA GLOBAL

2015 2016 2017 2018 2019 202030

50

70

90

110

130

150

170

53

168

37

66

86 91

OTT Devices* Enabled Smart TVs Connected Game Consoles

Mill

ions

of U

nits

Increasing Penetration of TV Streaming Devices

Source: MAGNA GLOBAL* Includes standalone units like Roku, Google Chromecast, Amazon Fire, Apple TV, etc.

Hulu

Amazon

Netflix

SVOD

10%

19%

44%

48%

Source: Nielsen

Subscription Video on Demand Access

Homes That Add SVOD Watch Less TV

Source: Nielsen

Source: Nielsen

Alternative Video Viewing Offsets TV Declines

2014E 2015E 2016E 2017E 2018E 2019E 2020E05

10152025303540

23.6 21.9 21.0 20.2 19.6 19.2 18.9

4.1 4.1 4.2 4.3 4.3 4.3 4.4

Adults 18-49, Hours per Week

Live TV DVR/VOD Game Console (video)OTT Video PC Streaming Mobile streaming

33.7 33.1

33.3

33.4 33.5

33.7

33.7

Source: MAGNA GLOBAL

Overall Video Viewing Isn’t Declining

Early Cross Screen CampaignsCrossDevice TV + Digital

Video

Linear TV + OTT

40

20

60

80

Mill

ion

Hou

seho

lds

35

2015 2016 2017 2018 2019 2020

40

4956

63

70

Total Addressable Households

Source: MAGNA GLOBAL

Total Addressable Advertising Spend & Share

Source: MAGNA GLOBAL

2015 2016

$300 million$470 million

Non-Addressable99%

Household Addressable1%

Linking Data Sets Together

Household Audience

Device Graph Audience

Walled Garden Audience

Data Onboarding Platform

Cross Screen Execution BenefitsExposure 1:Approved

Exposure 2:Approved

Exposure 3:Denied

TV vs. Digital Measurement MetricsReach & Frequency

Brand Recall, Purchase Intent, etc.

Website Visits

Digital Actions

Product Sales

Incr

easin

g M

easu

rem

ent

Gran

ular

ity

Augmenting TV Measurement

Step 1: Exposure to TV

Creative

Step 3: CampaignResults inPurchase

Step 2: Digital ActionsTaken

Pros and Cons of Cross Screen CampaignsConsPros

Reduced Waste

More Effective

Better Reporting

More Flexibility

Limited Scope

More Expensive

Disrupts Ops

Privacy Issues

The Future of Cross Screen Campaigning1) Data Matching Improvements2) Measurement Improvements3) Addressable TV Build-out4) Fewer Format Silos5) More & Different Data

Thank You!Luke.stillman@magnaglobal.com