1. ROI—A WAY OF LIFE IN MEDIA

2. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 2 PRESENTATION SPEAKERS Kate Sirkin EVP, Global Research Director Starcom MediaVest Group Aaron Fetters Director, Insights and Analytics Solutions Center The Kellogg Company Howard Shimmel Chief Research Officer Turner Broadcasting System, Inc.

3. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 3 WHAT’S ON THE AGENDA? The Media ROI Framework The Media Company Perspective The Agency Experience—Driving the Eco-System The Advertiser Strategy Table Talk & Panel Discussion

4. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 4 THE ROI LANDSCAPE Behavioral impact Smarter allocation, more accountability Marketing Mix A holistic view Single Source Buyer graphics & campaign-level ROI

5. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 5 SINGLE SOURCE ANALYTICS—CLOSING THE LOOP Complementary to other planning and measurement tools Plan Buy/Optimize Measure Form ObjectivesMeasure ROI Define Audience Optimize PlansMeasure Effectiveness

6. RESEARCH INNOVATIONS

7. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 7 MEDIA AUDIENCE DATA Digital Demographic. Behavioral. Geographical. TV Demo-based since 1960!

8. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 8 NEW DATA POWERS ADVANCED MEDIA TARGETING Nielsen Buyer Insights Nielsen Catalina Solutions Nielsen MotorStats Nielsen Mobile Vector

9. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 9 FIRST ADVANCED MEDIA TARGETING PRODUCT targetingNOW

10. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 10 A NEW WAY TO PLAN MEDIA Plan still produced within current sales rotation guidelines Demo delivery still guaranteed as it always was Optimized within these parameters to maximize delivery of your marketing target (ex. category buyer) Same mixSame demo guaranteeOptimized against your target

11. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 11 WE SELL NETWORKS BASED ON SELLING TITLES Early Morning Prime Dramas Series: 3–5p Late Series: 5–7p Moonlight Theater Prime Primetime In The Daytime Weekend Late 12–2a

12. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 12 EACH SELLING TITLE CONTAINS RANGE OF PROGRAMS AND TIME PERIODS Program / Time Period 12345678 Early Morning Prime Dramas Series: 3–5p Late Series: 5–7p Moonlight Theater Prime Primetime In The Daytime Weekend Late 12–2a

13. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 13 TODAY A SCHEDULE WITH THREE UNITS IN EACH SELLING TITLE MIGHT LOOK LIKE THIS Program / Time Period 12345678 Early Morningxxx Prime Dramas xx x Series: 3–5p xxx Late x x x Series: 5–7p x xx Moonlight Theaterx x x Prime x x x Primetime In The Daytime xx x Weekend x x x Late 12–2a x x x

14. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 14 BUT WHAT IF WE OVERLAID NEW DATA ABOUT THE PROBABILITY OF THE AUDIENCE BEING A CATEGORY BUYER? Strong Concentration of Cat Buyers Program / Time Period 12345678 Early Morningxxx Prime Dramas xx x Series: 3–5p xxx Late x x x Series: 5–7p x xx Moonlight Theaterx x x Prime x x x Primetime In The Daytime xx x Weekend x x x Late 12–2a x x x Average Concentration of Cat Buyers Low Concentration of Cat Buyers

15. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 15 Source: Nielsen Buyer Insights. 3Q13 to date (7/1/13–8/25/13) viewing to TBS/TNT; 1 min qualifier. Purchasing via NBI database for 52 weeks ending 3/31/13. Includes credit & debit transactions from NBI database only. Mass Merchandiser category (Kmart, Target, Wal-Mart). Excludes Movies, Marathons, Specials, Sporting Events, Sports Programming. Includes repeats. EXAMPLE: MASS MERCHANDISER SHOPPERS TN Early Morning (576) Law & Order (604) Angel (551) Late: 12–3a (587) CSI: New York (581) Perception (683) Cold Case (546) The Mentalist (630) Franklin & Bash (504) The Hero (593) Falling Skies (480) Primetime In Daytime (588) Bones (614) Major Crimes (474) Charmed (617) Supernatural (555) Smallville (545) Late: 12–2a (568) Perception (637) Cold Case (549) The Mentalist (622) The Hero (540) Falling Skies (388) CSI: New York (581) Franklin & Bash (409) Series: 3–5p (599) Bones (620) Supernatural (505) Castle (601) Major Crimes (447) Prime (648) Castle (610) Perception (582) The Mentalist (554) Major Crimes (719) Franklin & Bash (572) Rizzoli & Isles (833) Falling Skies (600) Series: 5–7p (559) Castle (629) Law & Order (557) The Mentalist (466) Bones (503) Supernatural (486) Weekend (575) Perception (549) Rizzoli & Isles (637) Franklin & Bash (535) Falling Skies (530) Major Crimes (619) Law & Order (522) The Hero (607) (#) = VPVH

16. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 16 …AND THEN WE USED THIS DATA TO PUT YOUR ADVERTISER SPOTS IN THE OPTIMAL PROGRAMS/TIMES Strong Concentration of Cat Buyers Program / Time Period 12345678 Early Morning x xx Prime Dramas xx x Series: 3–5p xxx Latexxx Series: 5–7p xxx Moonlight Theater xxx Prime xxx Primetime In The Daytime xxx Weekend x xx Late 12–2a x x x Average Concentration of Cat Buyers Low Concentration of Cat Buyers

17. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 17 WHY ARE WE EXCITED? Targeting works Solutions delivers materially more of an advertiser’s target Great reaction from the market in Upfront Opportunity to drive greater yield from TV

18. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 18 TARGETING WORKS! Unexposed Exposed P18–49 Auto TBS Campaign +21% 87% 93% +59% Exposed Unexposed Heavy Auto Searchers Significance

19. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 19 Original Optimized GRPsReach DemoMarketing Target 50.418.0 50.417.8 GRPsReach 59.124.7 94.328.1 Original Optimized 13.69.2 13.58.7 11.26.9 18.29.7 Original Optimized 15.19.6 15.19.6 16.49.9 18.511.1 Original Optimized 7.84.4 7.94.9 6.35.0 9.86.4 +59% +63% +13% +56% Beer Brand Domestic Auto Brand Paper Towel Brand Toothpaste Brand MORE OF YOUR TARGET

20. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 20 +33% Average lift in target grps

21. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 21 Disclaimer

22. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 22 CHALLENGES Predictability and Stability Scalablity Target Transparency Systems/ Data Access Cross-Platform Application

23. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 23 FUTURE PRODUCTS Use to inform allocation across selling rotations Use to inform allocation across Turner TV and digital assets

24. BUYER-BASED DATA HELPING SMG DELIVER MORE PRECISION FOR ADVERTISERS

25. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 25 THE EVOLUTION OF THE TV/VIDEO MARKETPLACE Precision video for all screens (convergence) Data-Driven Linear 1 st Screen Addressability 1 st Screen Connected 1 st Screen Active Amplification 1 st Screen Passive Amplification Multi-Screen ‘Digital’ Video Buying TV smarter and more precisely (Social Data, Purchase Data: Tardiis 2.0) ‘Addressable TV’ Audience or data- driven TV leveraging STB data From TV & Digital Video to Connected 1 st screen TV with over the top (OTT) video service Digital distribution of video —premium, mid and long tail on PC, mobile and tablet ‘Social TV’: Use 1 st screen to drive active 2 nd screen participation ‘TV Syncing’: Passive approach to syncing TV ad on all other screens

26. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 26 KEY THEMES Incorporate more data to drive client value; maximize budget efficacy Maximize efficiency using best data that feeds brand strategy and optimization agility Demonstrate accountability—actual sales impact is typically the best way Real-time, seamless and continuous learning—integrated workflow

27. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 27 PURCHASER DATASETS—WHICH WILL DRIVE MOST IMPACT IN PLANNING

28. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 28 HOW DO WE USE IT? TV planning via “single source” data ROI measurement for TV, print, digital and mobile Purchaser-based targeting in digital, mobile and addressable TV Targeting Accuracy Tests Multi Touch Attribution (MTA)

29. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 29 TV PLANNING VIA SINGLE SOURCE Third part matching of data at a HH level Watch data: Set top box data from cable companies and TiVo Nielsen media data Buy data: Shopper card data from retailers Nielsen Homescan panel Since source data combines observed data about what consumers watch and buy. This is achieved by matching set top box data with frequent shopper card data to create a “single source” dataset with TV viewing and purchasing for the same households. Anonymous single source households

30. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 30 TV BUYING EVOLUTION WITH SINGLE SOURCE Optimized CPMs based on audience value uncovered by buyer-graphics Much better aligned with client objectives Allocated within corporate inventory to maximize portfolio effect Larger buys for optimized CPMs Age/gender

31. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 31 PLANNING/MEASUREMENT PROCESS 1 5 Define business challenge and objectives Develop targets based on strategic definition Consider data options and requirements Determine communication goals, flights, and budgets 23 Forecast corporate needs translated to demo targets Purchase inventory Allocate versus buyer-based brand targets Design measurement plan 45678

32. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 32 ALLOCATING FOR MAXIMUM EFFICACY Real-time/Right-time Optimized to consumer response and marketplace opportunities Creative allocated to drive buy rate or penetration Point in time (quarterly/upfronts) Total campaign level

33. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 33 BRINGING IT ALL TOGETHER—CLOSING THE LOOP Integrated workflow that works within and outside Plan Buy/Optimize Measure Form ObjectivesMeasure ROI Define Audience Optimize PlansMeasure Effectiveness

34. THE KELLOGG’S OPPORTUNITY FROM BUYER GRAPHICS

35. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 35 ENABLING A DATA-DRIVEN MARKETING ECOSYSTEM Data-Based Decisioning Data-Driven Buying Data Analytics & Optimization Effectiveness Evaluation Data-Driven Ecosystem 3 rd Party CRM Other 1 st Party

36. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 36 DOES A BUYER-BASED APPROACH REALLY SELL MORE IN-MARKET AND DRIVE ROI? CASE STUDY Develop the financial estimate for TV-driven sales Validate the estimate in-market Expand the learnings for multiple brands and for future periods Continuously optimize, based on key drivers of ad response

37. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 37 Demo Target (F25–54) THE OPPORTUNITY FOR A BUYER GRAPHIC APPROACH 14% of reach to F25-54 goes to households who do not buy in the category RTE Cereal Category Buyers 51% of Category Buyers are not reached by the demographic target Missed Category Opportunity 52% of Kellogg’s Cereal Brand Buyers are not reached by the demographic target Kellogg’s Cereal Brand Buyers Missed Brand Opportunity

38. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 38 THE “SIZE OF THE PRIZE” COULD BE SIGNIFICANT FOR KELLOGG’S $30 MM–$64MM $2 MM–$4 MM Est. Incremental Retail Sales/Year* * Incremental retail sales opportunity derived from Kellogg’s Size Of Prize Deliverable (August 2013) Kellogg’s Cereal Brand

39. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 39 KELLOGG’S CEREAL BRAND 2012 +10% 2013 +14% TV campaign drove incremental sales lift 10% in 2012 and 14% in 2013 Average volume/household ■ Unexposed HH ■ Exposed HH

40. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 40 2013 2012 95 INDEX 105 INDEX KELLOGG’S CEREAL BRAND TV Campaign Audience Delivery Kellogg’s Cereal Brand BRPs increased by 10% in 2013 from 2012 while F25–54 GRPs remained constant ■ F25–54 GRP ■ F25–54 Kellogg’s Cereal Brand BRP

41. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 41 $3.4MM 814K $1.77 ANNUALIZED RESULTS—THE 2013 TV CAMPAIGN GENERATED INCREMENTAL SALES, UNITS, ROAS $5.2MM 1,273K $2.19 2012 Campaign 2013 Campaign incremental sales +52% incremental units +56% ROAs+24%

42. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 42 CONCLUSION Yes, the buyer-based approach actually increased sales, units, ROI—more can be gained! Develop the financial estimate for TV-driven sales Validate the estimate in-market Expand the learnings for multiple brands and/or for future periods Continuously optimize, based on key drivers of ad response

43. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 43 CLOSING THE LOOP—IT WORKS! Plan Buy/Optimize Measure Form ObjectivesMeasure ROI Define Audience Optimize PlansMeasure Effectiveness

44. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 44 c360.cnf.io Choose Your Session From the List Click / Tap on Each Poll to Respond

45. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 45 POLLING QUESTION Now that you have seen real, large scale application of buyer-based solutions, is the marketplace ready to go beyond age/gender?

46. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 46 TABLE TALK QUESTIONS What are some of the strengths / weaknesses of buyer-based thinking in the media process? What would it take to instill confidence in the broad marketplace and drive adoption?