MAURICIO LEON SIMON NUDDS DORON WESLY COMMERCIAL DIRECTOR PERFORMICS DIRECTOR OF UK MEDIA ANALYTICS NIELSEN DORON WESLY HEAD OF MARKET STRATEGY TREMOR VIDEO

IS VOD WITH BENEFITS?

GENERATE MORE EFFICIENT & EFFECTIVE CAMPAIGNS VOD IS A LEAN-FORWARD MEDIUM WITH LESS CLUTTER THAT CAN: AMPLIFY AWARENESS COMPLEMENT A TV BUY GENERATE MORE EFFICIENT & EFFECTIVE CAMPAIGNS Netnet: As TV Spend increases, incremental reach from VOD decreases. This effect is amplified for heavy and medium/heavy TV viewers. If you add VOD to TV, you’re getting not just a little more people, your getting higher awareness and stronger message association. This lowers the cost of getting more awareness because impact is so much higher if combine those 2 together VOD (online video) as a lean-forward medium that has less clutter and less commercial load, may: Amplify awareness and reach Generate more efficient and effective campaigns Reach and affect higher socioeconomic strata who are light TV viewers Complement a TV buy

OBJECTIVE: HOW DOES VOD COMPLEMENT phase 1: had 10 people with tv, with vod reached 2 more phase 2: start with tv add vod and see how much changes in order to increase awaremeness on person x cost _ dollars

PHASE ONE: PHASE TWO: VOD CONTRIBUTION TO TV’S INCREMENTAL REACH VOD CONTRIBUTION TO TV'S AWARENESS AND MESSAGE ASSOCIATION phase 1: had 10 people with tv, with vod reached 2 more phase 2:start with tv add vod and see how much changes in order to increase awaremeness on person x cost _ dollars Phase 1 VOD contribution to TV's incremental reach @ what frequency level? @ what TVR level? Phase 2 VOD contribution to TV's awareness and message association Cost per percent point increase per person Light vs. heavy/medium TV viewers Reduce TV decay effects

PHASE ONE: VOD CONTRIBUTION TO TV’S INCREMENTAL REACH OCT. 2011 - DEC. 2011

TV + VOD INCREMENTAL REACH 10-41% OF PEOPLE ONLINE WERE NOT EXPOSED TO TV FMCG Beverage Alcohol 1.33% FMCG Beverage 0.33% Finance 0.44% Retail (ce) 0.19% Tech 0.45% FMCG Beverage Alcohol A16-34 ~41% FMCG Bev ABC1 Women ~14% Finance ABC1 ~20% Retail (ce) ABC1 ~10% Tech A16-34 ~15% Modeled incremental reach potential FMCG Beverage up to 3.02% Finance up to 3.24% Retail up to 2.59% Tech up to 4.12%

METHODOLOGY Fusion of TV and VOD (online) panels MEASURE REACH AND FREQUENCY ACROSS SINGLE CAMPAIGN 5 BRANDS ACROSS 4 CATEGORIES FMCG BEVERAGE (x2) RETAIL FINANCE TECH passive - meter on computer and on tv. used existing meter that is on computer and tv; can meassure both for same person to measure reacha and frequency across single campaign; Fusion of TV and VOD (online) panels Measure reach and frequency across single campaign 5 brands across 4 categories FMCG beverage (1 non-alcoholic, 1 alcoholic brand) Finance Retail (consumer electronics) Tech Measurement period: Oct. 2011-Dec. 2011 MEASUREMENT PERIOD: OCT. 2011 – DEC. 2011

METHODOLOGY STEP 4 STEP 3 STEP 2 STEP 1 COMBINE EXTRACT VISUALISE TAG NetNet Phase 1 methodology, measure reach and frequency across TV and VOD for five brands using combined Nielsen & BARB panel data. Step 1: Tag VOD campaign with the Nielsen tag. Step 2: Visualise all those that have been exposed to the VOD campaign on the Nielsen NetView meter. Capture data at a respondent level-basis (with associated demographic profiles and weights). Step 3: Nielsen IMS extracts the respondent level data and associated demographic/ weights based on those exposed to the TV campaign from the BARB database. Step 4: Fuse data sets (Nielsen Fusion) to determine the incremental reach/contribution of VOD campaign when combined with TV campaign.

METHODOLOGY BARB Respondent Level Data To isolate the impact of online activity when combined with TV, we utilize Nielsen-IMS’ CampaignRF fusion tool Nielsen Online Respondent Level Data To isolate the impact of online activity when combined with TV, we utilise Nielsen- IMS’ CampaignRF fusion tool. •This allows us to identify those respondents that have been exposed and pair them by matching common characteristics in both the BARB & Nielsen Online panels (i.e. demos, geo demos, etc.) via a hub study (TGI). •These linking variables were validated by a series of statistical tests and analyses to ensure they closely match to produce an accuracy level of 95% or higher.

Using common demo variables METHODOLOGY On-the-fly fusion Using common demo variables BARB Respondent Level Data We link respondents from one dataset to another by using the common variables (i.e. demos, geo demos, etc.) that exist on the BARB panel, Nielsen NetView panels and a hub where the reach results are reported. Nielsen Online Respondent Level Data

METHODOLOGY “Fused result of TV and online viewing” On-the-fly fusion BARB Respondent Level Data Nielsen Online Respondent Level Data On-the-fly fusion Using common demo variables These linking variables were validated by a series of statistical tests and analyses to ensure they closely match to produce an accuracy level of 95% or higher.

FMCG BEVERAGE ALCOHOL A16 % Reach 70% 65.93% VOD Effect Incremental to Base of Campaign +1.33 64.6% vod penetration in uk is growing and thus upside will only get bigger TV Only TV + VOD 25 150 Source: Nielsen IMS CampaignRF, Oct.-Dec. 2011

FMCG BEVERAGE ABC1W 15+ % Reach 90% 87.56% +0.33 87.89% VOD Effect Incremental to Base of Campaign vod penetration in uk is growing and thus upside will only get bigger TV Only TV + VOD 50 550 Source: Nielsen IMS CampaignRF, Oct.-Dec. 2011

FINANCE ABC1 ADULTS % Reach 80% +0.44 78.9% 78.46% VOD Effect Incremental to Base of Campaign vod penetration in uk is growing and thus upside will only get bigger TV Only TV + VOD 50 250 Source: Nielsen IMS CampaignRF, Oct.-Dec. 2011

RETAIL (CONSUMER ELECT) ABC1 15+ % Reach 89.72% +0.19 89.91% 90% VOD Effect Incremental to Base of Campaign vod penetration in uk is growing and thus upside will only get bigger TV Only TV + VOD 50 600 Source: Nielsen IMS CampaignRF, Oct.-Dec. 2011

TECH 16-34S % Reach 87.38% +0.45 87.83% 90% VOD Effect Incremental to Base of Campaign vod penetration in uk is growing and thus upside will only get bigger TV Only TV + VOD 50 550 Source: Nielsen IMS CampaignRF, Oct.-Dec. 2011

VOD PENETRATION UK DIGITAL VIDEO VIEWERS 2012 32.6 8.9% 69.9% 51.4% 2013 34.4 5.5% 71.7% 53.8% 2014 36.3 5.8% 74.1% 56.4% 2015 37.8 4.1% 75.6% 58.3% 2016 39.1 3.3% 76.7% 59.7% 2017 40.0 2.4% 77.4% 60.6% Digital Viewers (millions) –% change –% of internet users –% of population Digital Viewers (millions) 32.6 34.4 36.3 37.8 39.1 40.0 UK VOD is growing by leaps and bounds Growth will increase incremental reach possibilities As more and more people use VOD, incremental reach will be greater 2010-2012 (November) comScore showing Video Metrix % Reach (of Total UK population) of 2010 – 62% 2011 – 60% 2012 – 64% Nielsen estimates penetration in UK of VOD to be around 40% Source: eMarketer, Feb 2013

PHASE TWO: VOD CONTRIBUTION TO TV'S AWARENESS AND MESSAGE ASSOCIATION NetNet Combining VOD with television DOES make more people aware of the brand, improve the cost effectiveness of the campaign, and help sustain television's impact after it is off air.

VOD AMPLIFIES VOD amplifies TV VOD fills gaps for light TV viewers

+ VOD INCREASE RETURN ON BRANDING TV + VOD increase return on branding investment

EXTENDS VOD IMPACT VOD extends TV's impact Pulse TV throughout the year and use VOD during dark periods

EXPERIMENTAL DESIGN (TEST VS. CONTROL) METHODOLOGY EXPERIMENTAL DESIGN (TEST VS. CONTROL) NATIONAL REP. SAMPLE FOR ABC1 TARGET VOD EXPOSURE BASED ON COOKIE FILE TV EXPOSURE (OTS) BASED ON MEDIA CONSUMPTION REPORTING (12 MIN. SURVEY) AVIVA MEASUREMENT PERIOD: AUG.-NOV. 2012 Experimental design (test vs. control) National rep. sample for ABC1 target VOD exposure based on cookie file TV exposure (OTS) based on media consumption reporting (12 min. survey) 1 brand (finance) Measurement period: Aug.-Nov. 2012 NetNet Phase 2 methodology: Surveyed (nationally representative sample) people who only saw the VOD campaign and compared their brand awareness level to people who also saw the television campaign, to people who only saw the TV campaign, and to people who did not see any advertising from the brand.

Do you watch commercial TV? MEDIA CONSUMPTION QUESTIONS Do you watch commercial TV? NetNet Exposure to VOD was measured through cookies and exposure to TV was based on a series of opportunity-to- see questions Do you watch commercial TV? (i.e. TV with adverts) Thinking about your commercial TV viewing habits, on average, what time of day do you watch TV on Mon.-Fri, Sat., Sun. On average, how many hours of commercial TV do you watch a day? Which, if any, of the following TV shows have you watched since 1st of Sep. 2012? Exclude online and catch-up TV and streaming. Source: Nielsen, Tremor Video Wave 1 = Last month, Wave 2 since Sep 1 2012

Thinking about your commercial TV viewing habits, on average, what time of day do you watch TV? NetNet Exposure to VOD was measured through cookies and exposure to TV was based on a series of opportunity-to- see questions Do you watch commercial TV? (i.e. TV with adverts) Thinking about your commercial TV viewing habits, on average, what time of day do you watch TV on Mon.-Fri, Sat., Sun. On average, how many hours of commercial TV do you watch a day? Which, if any, of the following TV shows have you watched since 1st of Sep. 2012? Exclude online and catch-up TV and streaming. Source: Nielsen, Tremor Video Wave 1 = Last month, Wave 2 since Sep 1 2012

On average, how many hours of commercial TV do you watch a day? NetNet Exposure to VOD was measured through cookies and exposure to TV was based on a series of opportunity-to- see questions Do you watch commercial TV? (i.e. TV with adverts) Thinking about your commercial TV viewing habits, on average, what time of day do you watch TV on Mon.-Fri, Sat., Sun. On average, how many hours of commercial TV do you watch a day? Which, if any, of the following TV shows have you watched since 1st of Sep. 2012? Exclude online and catch-up TV and streaming. Source: Nielsen, Tremor Video Wave 1 = Last month, Wave 2 since Sep 1 2012

SPOT SCHEDULE ITV / ITV+1 • Downton Abbey • Coronation Street • X-factor Station Day Time Sec Programme ITV London Sun 9:45:00 PM :30 Downton Abbey Which, if any, of the following TV shows have you watched since 1st of Sep. 2012? NetNet Exposure to VOD was measured through cookies and exposure to TV was based on a series of opportunity-to- see questions Do you watch commercial TV? (i.e. TV with adverts) Thinking about your commercial TV viewing habits, on average, what time of day do you watch TV on Mon.-Fri, Sat., Sun. On average, how many hours of commercial TV do you watch a day? Which, if any, of the following TV shows have you watched since 1st of Sep. 2012? Exclude online and catch-up TV and streaming. Source: Nielsen, Tremor Video Wave 1 = Last month, Wave 2 since Sep 1 2012 Source: Nielsen, Tremor Video Wave 1 = Last month, Wave 2 since Sep 1 2012

VOD AMPLIFIES TV DOMINANT STRATEGY TV is off-air: VOD sustains and increases viewers’ brand awareness (Unaided Awareness) 37.7% 39% 41.4% +5.5% VOD Effect Incremental to Base of Campaign 35.9% 33% 2.6% Net Net VOD sustains and increases the television-awareness level during the period when television is off air. Overall, TV + VOD campaign raised unaided awareness and message association Always-on strategy isn’t always feasible with TV-only campaign VOD bolsters brand impact, when TV goes dark, extending campaign In crowded space (finance), it’s critical to maintain an ongoing presence to sustain brand salience (top-of-mind awareness) In absence of TV, while brand message still in mind, VOD can pick up when TV always is not feasible to maintain an always-on strategy Before Campaign Sep.-Oct. TV Sep.-Oct. TV + VOD Nov. No VOD Nov. VOD Nov. Carry Over Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug-Nov 2012

VOD AMPLIFIES TV DOMINANT STRATEGY TV + VOD (vs. TV alone): A higher percentage of viewers connected the core message with the brand (Message Association) 48% 43.6% VOD Effect Incremental to Base of Campaign 31.7% 29.2% +5.6% 26.1% -3.1% Net Net VOD sustains and increases the television-awareness level during the period when television is off air. Overall, TV + VOD campaign raised unaided awareness and message association Always-on strategy isn’t always feasible with TV-only campaign VOD bolsters brand impact, when TV goes dark, extending campaign In crowded space (finance), it’s critical to maintain an ongoing presence to sustain brand salience (top-of-mind awareness) In absence of TV, while brand message still in mind, VOD can pick up when TV always is not feasible to maintain an always-on strategy Before Campaign Sep.-Oct. TV Sep.-Oct. TV + VOD Nov. No VOD Nov. VOD Nov. Carry Over Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012

RETURN ON BRANDING INVESTMENT It appears that TV + VOD are less cost efficient at increasing awareness and message association. But the story is very different for light TV viewers (1/4 of ABC1 Target). Cost to Raise Awareness per Person (Index) Unaided Awareness 100 171 Message Association 100 101.1 TV TV + VOD Net Net: At a top-level view, the combination of TV and VOD appears to be more expensive at increasing awareness than just TV alone. However, this does not account for different levels of television viewing. Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012; TV heavy + medium = >14 hours/week, TV light = <14 hours/week

TV + VOD REACH OVERLAP 26M VIEWERS ABC1 hrs./day EFFECTIVE REACH LIGHT 0 – 1.5 LIGHT-MED 1.6 – 2.2 MEDIUM 2.3 – 3.6 MED-HEAVY 3.7 – 5 HEAVY 5.1 – 5.7 14.9% of TV viewing 55.5% of TV viewing Even though light TV viewers are ¼ of ABC1 Target, they only compromise 15% of TV viewing. ABC1 Heavy, Medium, and Light TV Viewers Aviva TV: Heavy, Medium, Light 39.5% Aviva TV Light 48.4% Aviva VOD 55.5% Target: ABC1 Population size: 26,735,507 Total TV Effe Reach pop: 10,545,820 Total TV Effe Reach % 39.45% Light TV Viewers pop 5,108,396 Light TV Viewers % 48.44%** VOD Reach % 10.65% % light TV viewers exposed to VOD 55.5% Total Light TV Viewers impacted by VOD 2,835,159,5*** Total Heavy & Medium TV Viewers impacted by VOD 7,710,661 77% of Light TV Viewers were also exposed to VOD [Summary: VOD is a way to reach those who don’t watch TV that much] Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012; TV heavy + medium = >14 hours/week, TV light = <14 hours/week; *Calculated % x TV Pop; **Calculated based on nationally rep data; ***Light TV Viewers x % Exposed to VOD

TV + VOD REACH OVERLAP 26M VIEWERS ABC1 hrs./day TOTAL REACH LIGHT 0 – 1.5 LIGHT-MED 1.6 – 2.2 MEDIUM 2.3 – 3.6 MED-HEAVY 3.7 – 5 HEAVY 5.1 – 5.7 14.9% of TV viewing 55.5% of TV viewing Even though light TV viewers are ¼ of ABC1 Target, they only compromise 15% of TV viewing. ABC1 Aviva TV: Heavy, Medium, Light 71% Heavy, Medium, and Light TV Viewers Aviva TV Light 31.5% Aviva VOD 77.7% Target: ABC1 Population size: 26,735,507 Total TV Effe Reach pop: 10,545,820 Total TV Effe Reach % 39.45% Light TV Viewers pop 5,108,396 Light TV Viewers % 48.44%** VOD Reach % 10.65% % light TV viewers exposed to VOD 55.5% Total Light TV Viewers impacted by VOD 2,835,159,5*** Total Heavy & Medium TV Viewers impacted by VOD 7,710,661 77% of Light TV Viewers were also exposed to VOD [Summary: VOD is a way to reach those who don’t watch TV that much] Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012; TV heavy + medium = >14 hours/week, TV light = <14 hours/week; *Calculated % x TV Pop; **Calculated based on nationally rep data; ***Light TV Viewers x % Exposed to VOD

TV HEAVY/MEDIUM VS. TV LIGHT RETURN ON BRANDING INVESTMENT: TV HEAVY/MEDIUM VS. TV LIGHT Cost to Raise Awareness per Person (Index) Unaided Awareness 100 58.7 108.6 Message Association 100 63.8 528.3 TV Heavy/Medium + VOD TV TV Light + VOD Net Net: At a top-level view, the combination of TV and VOD appears to be more expensive at increasing awareness than just TV alone. However, this does not account for different levels of television viewing. VOD increases effective frequency amongs light TV viewers Light TV avg. frequency of <1 VOD increases frequency thus generating brand lift Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012; TV heavy + medium = >14 hours/week/>2 hours per day, TV light = <14 hours/week/<2 hours/day

PHASE 2: MESSAGE ASSOCIATION Decay ON AIR VOD Message Association +2.5 TV Every month TV is off air, we see a 3.1% decay is message association VOD offsets this with a 2.5% higher lift than when TV was on air Sept-Oct. Net Net Each week television is off the air, people remember less and less about the brand message. Running VOD when TV is off the air sustains and increase the effectiveness of the television campaign for people exposed to VOD. Note: visual fading TV commercial over time [Testing how much you remember ad after you saw it, over time] -3.1 WK 1 WK 2 WK 3 WK 4 Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012

PHASE 2: MESSAGE ASSOCIATION Decay y = -22.81ln(x) + 48.202 R2 = 0.86996 ON AIR TV OFF-AIR VOD ON-AIR VOD Message Association +2.5 TV Every month TV is off air, we see a 3.1% decay is message association VOD offsets this with a 2.5% higher lift than when TV was on air Sept-Oct. Net Net: Each week television is off the air, people remember less and less about the brand message. Running VOD when TV is off the air sustains and increase the effectiveness of the television campaign for people exposed to VOD. Note: visual fading TV commercial over time [Testing how much you remember ad after you saw it, over time] -3.1 WK 1 WK 2 WK 3 WK 4 WK 5 WK 6 WK 7 WK 8 Source: Nielsen, Tremor Video n=1375 @90% confidence level Aug.-Nov. 2012

FRIENDS WITH BENEFITS INDEED HYPOTHESIS TV + VOD = TV WITH BENEFITS VOD is a lean-forward medium with less clutter that can: Amplify awareness and reach Generate more efficient and effective campaigns Complement a TV buy Incremental Reach: VOD + TV increases by up to 1.33% When TV goes dark: VOD bolsters brand awareness by 5.5%, extending campaign Light TV Viewers: TV + VOD (vs. TV alone) delivers almost 2x the return on branding Brand Performance: TV + VOD drive higher brand performance

THANK YOU MAURICIO LEON SIMON NUDDS DORON WESLY mauricio.leon@performics.co.uk @mozleon SIMON NUDDS simon.nudds@nielsen.com DORON WESLY dwesly@tremorvideo.com @sabredutch