1. AN UPDATE ON TAMS The journey from fixing TAM to present day usage… March 2015

2. © Broadcast Research Council of South Africa What we found post the 2012/2013 external audit… Aging meter technology - not digital ready; no time- shifted viewing; inability to cope with SA infrastructure. Aging panel – HH’s on the panel had been there for 15 years +. Not all TV sets in home were being measured. Unbalanced panel - not representative of TV Universe, reflected in very low weighting efficiencies of (Global best practice for panels is ) We had an aging, rather “unhealthy” panel on our hands, delivering data to the industry that did not reflect the TV Universe! 39% 70%

3. © Broadcast Research Council of South Africa How would we increase our weighting efficiencies from 39% 70%? What had to be done to get this fixed…

4. © Broadcast Research Council of South Africa What had to get done to get this fixed… 1.Firstly, proper controls, oversight, management, TRANSPARENT reporting, with regular audits had to be implemented. This was done through a set of stringent KPIs (which were embedded into the TAMS 2014 - 2018 Contract). “KPIs are the indicators of the “HEALTH OF THE PANEL”, our ECG, so to speak”

5. © Broadcast Research Council of South Africa What had to be done to get this fixed… The journey “back to health” began in earnest in May 2014, with an oversight team of Broadcast Researchers, AMF representatives & Telmar (the newly formed TAM Tech Committee):- With some of the main “panel health” KPI’s being: Reporting HHs % Several weighting indicators and checking on maximum weights Panel tenure Coverage of TV sets in home

6. © Broadcast Research Council of South Africa What had to be done to get this fixed… Effective oversight of TAM: Controls Placed in TAM Contract with penalties. Management & TRANSPARENT Reporting Oversight meetings with the TAM Tech Committee - every 5 weeks. Audits Ongoing 5 weekly audit. Annual audit with independent international TAM expert, Robert Ruud (first audit conducted in Aug / Sep 2014)

7. © Broadcast Research Council of South Africa What changes had to be made to the panel… In working through all the KPI’s, as well as the sound advice and learnings from international TAM auditor RR (a statistician), we started to understand what changes Nielsen’s had to make to the panel, to bring it “back to health”, these being: Install new meter technology, and phase out the aging meters. Expand the panel by 1 100 households (from September – December 2013) in order to reflect the proliferation of channels as well as our diverse audiences. Measure all TV sets in home.

8. © Broadcast Research Council of South Africa Some positive outcomes from these changes… New meter technology brought: Accuracy of measurement. The ability to measure the changes and new developments in the TV Landscape. DTT Migration readiness. The ability to measure time-shifted viewing. Battery back-up – resulting in more data collected from more meters on a daily basis, translating into a larger daily sample and a more representative panel. Measurement of TV devices (outside of Broadcast content).

9. © Broadcast Research Council of South Africa Some results from the TAM panel improvements… Remember those KPI’s: Reporting HH’s increased from 78% to 90% in 2014. The maximum daily weight for individuals dropped from 99 000 to 25 000, enhancing data stability. Panel tenure in excess of 8 years has been reduced by 60% and by year end 2015, no households will exceed 8 years tenure. The percentage of monitored TV sets in home has grown from 80% in January 2013 to a current 90%.. 78% to 90% 99 000 to 25 000 60% 90%

10. © Broadcast Research Council of South Africa The impacts these changes had on viewership data… Changes to “average time viewed” - cumulative reach lower than previous years due to: Measurement of households that experience “that new SA norm” – power outages & load-shedding - these HHs are now polled, as * “good” non-viewing HHs” Replacement of “old tenure HHs” with younger “lighter” viewers (in aligning to a more representative / balanced panel) New meters that were installed throughout the panel allowed for measurement of ALL activity taking place off the TV device, reducing linear broadcast content to about 90%. *Good non-viewing HHs are households that have been verified and not having viewed any TV on a particular day, and are counted in the daily sample.

11. © Broadcast Research Council of South Africa Over to Nielsen for a word or two on… The 2014 Universe Update The Challenges of: - LSM’s (as a panel balancing variable) - Load-shedding (and some early tests) - Recruiting from LSM 1-4 & PVR HHs - DSTV Panel Management A look at two new reporting variables: - Total Screen Share - Total Broadcast Share

12. © Broadcast Research Council of South Africa The 2014A Universe Update… HH Universe increases by 1.5% HH Universe increases by 1.5% 2011 Census update Jan 2011 Feb 2015 The Universe update to 2014A occurred on the 2 nd February 2015 Households

13. © Broadcast Research Council of South Africa The 2014A Universe Update… The HH Universe increased by 1.5% (192 735 HHs), & the Individual Universe grew by 0.86% (371 019 individuals), due to a lower average number of individuals in home. Access to DSTV grew by 14% (2 Mill individuals ), driven by the uptake of the DSTV Compact Bouquet and a range of lower priced offerings. Viewers using PVR increased by almost 20% (550 939 individuals). The Non Pay Universe declined by 1.5 Million individuals. Overall the Children’s Universe increased by 1.7% (176 353 children). All standard adult age categories have increased except for the 35 to 49 age group. The biggest increase occurred in the 65 + years age category, with 4% (102 664 individuals). Despite a shrinking rural pop, LSM 1 – 4 has increased by 10.5% (671 933 individuals), reflecting the general regression of household affluence due to a slow recovery of the global economy (GDP declined by 0.6%, early 2014).

14. © Broadcast Research Council of South Africa The 2014A Universe Update… Furthermore, LSMs on TAMS were aligned to AMPS; HiFi was added as a variable and x2 cell phones was removed. LSM variable weighting were adjusted. Universe & Sample Changes

15. © Broadcast Research Council of South Africa 239 206 189 173 172 160 170 157 134 187 173 181 163 147 ATV 209 Each Universe update will reflect the changes in the TV population. Below are some of the changes we see in audience profiles and average time viewed, and should be considered when planning. DAY PART: 6h00 to 23h00 Audience Profile & ATV in Minutes The 2014A Universe Update… *ATV: Ave time viewed

16. © Broadcast Research Council of South Africa The 2014A Universe Update… Test Data in October (Currency data against Test Data after Universe update applied) showed that with the Universe update, the increases in the proportions of light viewers resulted in a slight TVR% dip in the FTA channels and some Premium DSTV channels. When planning carefully consider the factors influencing viewing between source and projected periods, such as… Schedule changes Major sporting events Load shedding

17. © Broadcast Research Council of South Africa The Challenges of recruiting LSM 1 – 4 & PVR HHs… Actions taken: Continuous training of recruitment teams. Shorten time between recruitment & installation. Telephone appointments for difficult to access households. Supplementation of rural sample. “Dual” roaming to maximise polling.

18. © Broadcast Research Council of South Africa The Challenges of recruiting LSM 1 – 4 & PVR HHs… By increasing the LSM & PVR installed and reporting households, weighting efficiencies started to improve. Weighting Efficiencies improve LSM 1 – 4 sample increases

19. © Broadcast Research Council of South Africa The Challenges of LSM’s as a panel balancing variable… LSM is not an appropriate balancing variable for a panel: Mobile population Dynamic, rather than stable Not directly relevant to viewing behaviour in home? however we are looking at ways to deal with this challenge.

20. © Broadcast Research Council of South Africa The Challenges of load-shedding and some tests… The impact of load shedding on TV Viewing can be seen in the TAM data. Comparison of “Shape of Day” 7 Feb against 6 week average

21. © Broadcast Research Council of South Africa The Challenges of load-shedding and some tests… Metropolitan areas experience drops in TVR% of up to 25%. Rural households are most affected, with declines of up to 32.4%. Schedule 2 Load Shedding (5 to 7 Dec) Schedule 2 Load Shedding (5 to 7 Dec)

22. © Broadcast Research Council of South Africa Nielsen is testing some reporting tools for tracking load shedding (polling on battery & survey data), to be used in conjunction with daily viewing. The Challenges of load-shedding and some tests… Low incidence of polling on battery Load shedding High incidence of polling on battery

23. © Broadcast Research Council of South Africa The Challenges of DSTV Panel Management… How did we deal with the growing incidence of DSTV churn (DSTV suspended, changes between bouquet type)? - Moved from subscriber or panel member validation to viewing behaviour – a more accurate measure. - DSTV vs FTA analysis performed weekly and coded weekly. - RIM weighting testing to be conducted.

24. © Broadcast Research Council of South Africa A look at two new reporting variables… We are going to bring you the ability to break out measurement by Total Screen Share vs Total Broadcast Share (eKasi+; eAfrica+…)

25. © Broadcast Research Council of South Africa YearActivity 2015Live + VOSDAL MonthChannelTVR%TVRSHR % January Total TV12.125 199 831100.00% Broadcast Total TV9.944 264 11982.00% Others0.1044 0150.85% NBD0.74317 1386.10% Not Referenced1.34574 55811.05% 5 199 830 A look at two new reporting variables…

26. © Broadcast Research Council of South Africa Going forward into “panel health”… Universe Updates (twice per annum) – in order to keep the panel current, balanced & updated. Further panel expansion by 200 households in 2015 (from 2 700 HHs to 2 900 HHs) Thus creating further stability and yielding larger sample sizes Ongoing weekly reporting against KPI’s Ongoing management oversight and audits every 5 weeks by TAM Technical Committee (Broadcast Researchers, Media Agency representatives, Telmar) BRC to set-up TAM Advisory panel for ALL users Development of a TAM Gold Standard with the software suppliers Annual Audit by Robert Ruud – July / August 2015

27. © Broadcast Research Council of South Africa Going back to the journey from 39% to 70%... 39% 45% 63% 2012 20132014 Feb 2015 Weighting Efficiency 78%

28. © Broadcast Research Council of South Africa A final word from Robert Ruud… “From no management oversight and KPI reporting at all (pre May 2014); Nielsen South Africa are now reporting to the TAM Technical Committee on more KPI’s than any other TAM Service I have audited across the Globe”. - Robert Ruud