Webinar The Shifting Role Of GRPs In Media Buying Michael Glantz, Analyst October 29, 2012. Call in at 12:55 p.m. Eastern time

Agenda TV remains king but demands new metrics. The role of GRPs for planning and measurement will diminish over time. Demand for new TV audience insights will outpace standards. What It Means

Agenda TV remains king but demands new metrics The role of GRPs for planning and measurement will diminish over time Demand for new TV audience insights will outpace standards What It Means

In the US, TV is still the dominant ad channel. Source: September 2, 2011, “Forrester Research Interactive Marketing Forecast By Industry, 2011 To 2016 (US)” Forrester report

But consumers are watching in new ways. Image source: Scott Macklin (http://mcdm.uw.edu/)

Multitasking while watching is becoming the norm. More than 2/3 of US adults multitask while they watch TV. Base: 3,583 US online adults (2009); 2,945 US online adults (2010); 37,350 US online adults (2011); and 30,549 US online adults (2012)

Social media creates new layers of engagement. Image source: Twitter (http://twitter.com/); Diageo (http://www.diageo.com/en-row/Pages/default.aspx) Social media creates new layers of engagement.

Fragmentation exposes the need for cross-platform metrics.

GRPs no longer reflect today’s audiences Only measure age and gender Are fundamentally backward-looking Video platforms can already target audiences beyond GRPs.

Agenda TV remains king but demands new metrics. The role of GRPs for planning and measurement will diminish over time. Demand for new TV audience insights will outpace standards. What It Means

Despite their weaknesses, GRPs will still be the currency of the T/V ecosystem. Source: September 17, 2012, “The Shifting Role Of GRPs In Media Buying” Forrester research

Everyone speaks the language of GRPs already.

Video can’t compete with TV’s spending power.

Video lacks the reach TV planners live and die by.

GRPs remain the currency but new planning and measurement tools emerge Source: September 17, 2012, “The Shifting Role Of GRPs In Media Buying” Forrester research

Innovative metrics emerge at the T/V fringe Non-standard STB data sets emerge at scale. New players map new data to current to enable smarter planning. Addressable TV advertising is finally here!

Agenda TV remains king but demands new metrics. The role of GRPs for planning and measurement will diminish over time. Demand for new TV audience insights will outpace standards. What It Means

We need to rethink our definition of TV.

Brands will value TV spots differently depending on what they look at. = ? Source: Google images (http://images.google.com/)

New “secret sauces” to evaluate TV and video

More advanced media agency analytics Source: google images More advanced media agency analytics

Agenda TV remains king but demands new metrics. The role of GRPs for planning and measurement will diminish over time. Demand for new TV audience insights will outpace standards. What It Means

Buying methods will diverge Content-centric Audience-centric Across all screens and devices

TV-everywhere enables smarter buying.

Planning and inventory management systems are overhauled. Source: Google images (http://images.google.com/)

Media mix models become more complex and mature. ` Image source: Picdn.net (http://picdn.net/), Dr. Ted Williams (http://drtedwilliams.net/), Who (http://www.who.int/), Shure Distribution (http://www.shure.co.uk/), the National Academy of Sciences (http://www.pnas.org/), Jeff Mather (http://jeffmatherphotography.com/), FAO (http://www.fao.org), and Integrated Publishing (http://tpub.com/)

In a nutshell TV is in the midst of a behavior sea change. Despite its disadvantages, look for GRPs to remain the currency of video and TV. Marketers and agencies will embrace complexity for smarter planning and measurement now.

Michael Glantz +1 212.857.0753 mglantz@forrester.com