1. Council for Research Excellence Video Consumer Mapping Study Mike Bloxham, Director Michael Holmes, Assoc Director Insight & Research, Center for Media Design CABA CH-RC Digital Home Ecosystem Forum, April 2009

2. The Key Players Involved The Video Consumer Mapping Study The Method Applied Selected Findings Agenda 2

3. The Key Players The Nielsen Company –Creator and supporter of the Council’s work Council for Research Excellence –A client-led group that operates independently from Nielsen The Media Consumption and Engagement Committee –Selected and guided the Video Consumer Mapping Study BSU Center for Media Design –A consumer-centric media insight and R&D facility Sequent Partners –A brand and media metrics consultancy 3

4. Council for Research Excellence Active Membership 4  Brad Adgate, Horizon Media  Shari Anne Brill, Carat*  Joanne Burns, 20th Television, Fox*  Michele Buslik, AAAA Media Research Committee; TargetCast TCM  Alex Corteselli, Telerep  Laura Cowan, Rick Johnson & Co.  Susan Cuccinello, TVB  Paul Donato, The Nielsen Company  Colleen Fahey-Rush, MTV Networks  Nancy Gallagher, NBC Universal  Mike Hess, Carat  George Ivie, Media Ratings Council  Bob Ivins, Comcast Spotlight  Mark Kaline, Kimberly Clark  Michael Link, The Nielsen Company  Pat Liguori, ABC Owned Television Stations  Billy McDowell, Raycom Media*  Dan Murphy, Univision*  Michael Nathanson, Sanford C. Bernstein and Co.  Michael Orgera, Warner Brothers*  Jessica Pantanini, Bromley Communications  Mike Pardee, Scripps Networks*  David Poltrack, CBS  Beth Rockwood, Discovery Communications  Greg Ross, Procter & Gamble  Matt Ross, Hearst-Argyle Television  Lyle Schwartz, Mediaedge: CIA  Ceril Shagrin, Univision  Tina Silvestri, NBC Universal  Noreen Simmons, Unilever*  Barbara Singer, Kraft*  Kate Sirkin, Starcom MediaVest Group  Steve Sternberg, Magna*  Ira Sussman, CAB  Beth Uyenco, Microsoft Advertising*  Jack Wakshlag, Turner Broadcasting*  Richard Zackon, Facilitator *Media Consumption and Engagement Committee Members. The MCE Committee members also include Tim Brooks, Consultant Jane Clarke, Time Warner Horst Stipp, NBC Universal

5. Principal Investigators Mike Bloxham Director Michael Holmes Associate Director Bill Moult founding partner Jim Spaeth founding partner 5

6. The Key Players Involved The Video Consumer Mapping Study The Method Applied Selected Findings Agenda 6

7. Video Consumer Mapping Study Objectives in order to Dimension current consumption of media—focusing on television and video—and how it is changing over time Guide video media audience measurement… 7 … by generating a comprehensive map of the current media ecosystem

8. Measuring Video Is Becoming A Multi-Platform, Multi-Place Challenge TVDVRDVD Porta- ble DVD In- store TV Video on laptop Video iPod Video cell phone 8

9. The Key Players Involved The Video Consumer Mapping Study The Method Applied Selected Findings Agenda 9

10. Primarily former Nielsen panelists (e.g. from FTO), recruited with Nielsen’s assistance Who? Full waking day observation of media exposure, life activities and location What? Observed twice, in Spring and Fall 2008 When? Six regionally dispersed DMAs Where? Computer-assisted observation How? A final sample of 952 observed days: Over ¾ million minutes of observation, at 10-second resolution How many? CRE VCM Study 10

11. CRE VCM Study DMAs A final sample of 952 observed days: –N=376 individuals in the Core sample, observed twice, yielding 752 observed days –Plus 100-person media Acceleration sample, yielding 200 observed days Core DMAs in yellow; Acceleration DMA in red Image from Google Earth™ Dallas, TX Seattle, WA Chicago, IL Indianapolis, IN Atlanta, GA Philadelphia, PA 11

12. The Observational Method 12

13. Computer-Assisted Observation Dana tm smart keyboards equipped with a custom Media Collector™ program Observers categorize location, life activities and media exposure via touch screen & keyboard Data are logged to file every 10 seconds 13 Image © 2008 Neo Direct

14. Locations and Activities 14 Locations Own home Other’s home Car Public Transportation Work School Other Life Activities Media only Work Meal preparation Meal eating Traveling or commuting Personal needs Household activities or chores Care of another Personal/household services Education Religion (includes church organizations) Organizations (civic, govt., community) Social activities (socializing) Exercise/sports/hobbies Other

15. Media Categories TV News program Sports program Entertainment/info program Ad/Program promotion Surfing Navigation (e.g., program guide) Video Playback Videotape DVD TiVo/DVR Other RadioWeb Search (Yahoo, Google, Ask, etc.) Social network (MySpace, etc.) Online gaming Media browsing (YouTube, iTunes) Other EmailInstant MsgSoftware Office/writing/work Offline PC Game Online PC Game (non-web) Media (photo/imaging/video/sound) Other (Programming, CAD) Computer Media CD on Computer (includes SACD) DVD on Computer (inc. music DVD) Digital Music Stored (on hard drive) Digital Music Streaming (real-time) Digital Video Stored Digital Video Streaming Other Phone Landline Mobile Talk Mobile Texting/SMS Mobile Camera Mobile Video Mobile Audio (MP3) Mobile Games (any built-in game) Mobile Web (includes online game) Other Portable Video Portable DVD Non-DVD (iPod, PSP, PDA, etc.) Other Music Portable Music (iPod, other MP3) Home/Office Stereo or boom box Other (e.g., music in retail setting) Print Newspaper Magazine Book Other Games Console Online Console Offline Portable (PSP, Gameboy, etc) Other (arcade, DVD extra, etc) Digital Transfer Download audio Download video Upload audio Upload video Other Cinema Other (walkie talkie or other 2-way radio, etc.) Apparent primary attention is noted in concurrent media exposures Supplemental flags are used to tag social/solitary viewing, altered speed, indoor/outdoor 15

16. Observers Were Trained Extensively Telephone and computer while working, at work Television while exercising out of home Game console while socializing, at home Training videos show typical behavior in context while animating the steps to log the exposure in the Media Collector software 16

17. Day in the Life Map 7am8am9am10am 11am12pm1pm2pm3pm4pm5pm6pm7pm8pm9pm10 pm Note: Map has been horizontally compressed to fit on this slide Legend First part of the day map Second part of the day map Hour markers

18. 11am12pm1pm2pm3pm4pm5pm6pm7pm8pm9pm10 pm 7am8am9am10am African-American woman, 43 Note: The map has been horizontally compressed to fit on this slide Print Audio Radio Computer Video Television Activity Location

19. 11am12pm1pm2pm3pm4pm5pm6pm7pm8pm9pm10 pm 7am8am9am10am African-American woman, 43 Note: The map has been horizontally compressed to fit on this slide

20. The Key Players Involved The Video Consumer Mapping Study The Method Applied Selected findings Agenda 20

21. Four-Screen Categorization Computer Screen 2 nd Web Email IM Software Computer Video 3 rd Mobile Screen Talk Text Web Mobile Other (e.g. camera) Mobile Video Text Message Environmental GPS Navigation In-Cinema Movie All Other Screens 4 th 1 st TV Screen Live TV DVD/VCR DVR Playback Game Console 21

22. The Composition of Consumers’ Screen Media Time Varied Across Age Groups, but Total Screen Time was Strikingly Similar Confirmation of earlier research or beliefs New information Confirms the direction expected, particularly for digital media… But with substantial additional detail now available in a “video consumer map” from a media-neutral source This is the first known information source documenting what could be considered a share competition for media consumers’ time across various screen media. 22 Averaging 8½ hours total when including concurrent media exposure, for all age groups except for the 45-54 group (at 9½ hrs) Except Among Those 45-54, Whose Screen Time was Highest.

23. Except for those 45-54, 4-screen totals all add to 8½ hrs +/-2% Live TV: 309min Playback via DVR: 15min DVD or VCR: 23min Console games: 7min Web: 49min Email: 37min IM: 8min Software: 46min Computer video: 2min Mobile talk: 17min Mobile text: 2min Mobile web: 1min Mobile other (e.g. camera, etc): 0.5min Mobile video: 0.1min Environmental /Other video: 4min In-Cinema movie: 2min GPS navigation: 2min 1 st screen 2 st screen3 rd screen 4 th screen 1 st screen2 nd screen3 rd 4 th 8½ hrs 8½ hrs – 2% 8½ hrs + 1% 9½ hrs + 1% 8½ hrs It is widely recognized that those 65+ are heavy users of Live TV Among those 55+ time with email declines substantially and IM disappears DVR playback is highest among those under 55 Those 45-54 use TV like those older but computer like those younger Web use is highest for those under 45 DVD use is highest among the 18-34 Computer and environmental video small and mainly among those under 25 How Consumers Accumulated Their Screen Time Average Daily Minutes, Core Sample, N=752 observed days, Spring and Fall 2008 All participants, including non-users of various media, including concurrent media exposure By age group Total 1 st screen: 353min Total 2 nd screen: 143min Total 3 rd screen: 20min Total 4 th screen: 8min Mobile is mostly about talking, but with 12 mins texting for those 18-24 1 st screen2 nd screen3 rd 4 th 8hrs 31mins 8hrs 32mins 8hrs 18mins 8hrs 33mins 9hrs 34mins 8hrs 30mins How Consumers Accumulated Their Screen Time Average Daily Minutes, Core Sample, N=752 observed days, Spring and Fall 2008 All participants, including non-users of various media, including concurrent media exposure By age group Live TV: 309min Playback via DVR: 15min DVD or VCR: 23min Console games: 7min Web: 49min Email: 37min IM: 8min Software: 46min Computer video: 2min Mobile talk: 17min Mobile text: 2min Mobile web: 1min Mobile other (e.g. camera, etc): 0.5min Mobile video: 0.1min Environmental /Other video: 4min In-Cinema movie: 2min GPS navigation: 2min 1 st screen 2 st screen3 rd screen 4 th screen Total 1 st screen: 353min Total 2 nd screen: 143min Total 3 rd screen: 20min Total 4 th screen: 8min It is widely recognized that those 65+ are heavy users of Live TV Among those 55+ time with email declines substantially and IM disappears DVR playback is highest among those under 55 Those 45-54 use TV like those older but computer like those younger Web use is highest for those under 45 DVD use is highest among those18-34 Computer and environmental video small and mainly among those under 25 Mobile is mostly about talking, but with 12 mins texting for those 18-24

24. By age group Screen mediaOther major media Those 65+ spent much less time with audio and much more time with newspapers Those under 25 spent very little time on landline phones 1 st screenAudio2 nd screenNewspapers3 rd screenMagazines4 th screen Landline phone Average Daily Minutes, Core Sample, N=752 observed days, Spring and Fall 2008 All participants, including non-users of various media, including concurrent media exposure. TV Screen, Computer and Audio Account for About 90% of Total Media Exposure Avg. 353min ( 48%) Avg. 143min ( 20%) Avg. 20min (3%) Avg: 8min (1%) Radio Avg. 84min (11%) Avg. 6min (1%) Avg: 25min (3%) Other Audio 80min (11%)

25. Rank 1234567891011121314151617 65+ Live TV 421min Web 19 Software 16 DVD or VCR 11 Email 11 Playback via DVR 7 GPS Navigation 4 Environm ental/ Other video 4 Mobile Talk 3 In-Cinema movie 2 IM 0.3 Console games 0.3 Computer Video 0.2 Mobile Text 0.06 Mobile Other 0.05 Mobile Web 0 Mobile Video 0 55-64 Live TV 346min Web 42 Email 38 Software 36 DVD or VCR 14 Mobile Talk 12 Playback via DVR 9 Environm ental/ Other video 4 GPS Navigation 4 In-Cinema movie 3 Mobile Web 1.3 Computer Video 1.2 Console games 1.2 Mobile Text 0.4 Mobile Other 0.2 IM 0 Mobile Video 0 45-54 Live TV 336min Software 52 Email 51 Web 46 DVD or VCR 21 Playback via DVR 19 Mobile Talk 18 IM 15 Environm ental/ Other video 5 Console games 3 GPS Navigation 3 Computer Video 2 Mobile Text 1.3 Mobile Web 0.7 In-Cinema movie 0.6 Mobile Other 0.5 Mobile Video 0.13 35-44 Live TV 230min Web 74 Software 62 Email 47 DVD or VCR 27 Mobile Talk 25 Playback via DVR 17 IM 15 Console games 5 In-Cinema movie 3 Computer Video 3 Environm ental/ Other video 3 Mobile Text 2 Mobile Other 0.6 Mobile Web 0.6 GPS Navigation 0.3 Mobile Video 0.06 25-34 Live TV 256min Web 56 Software 51 Email 45 DVD or VCR 35 Mobile Talk 19 Playback via DVR 16 Console games 14 Environm ental/ Other video 5 Computer Video 4 IM 3 Mobile Web 2 Mobile Text 2 In-Cinema movie 2 GPS Navigation 1.2 Mobile Other 0.6 Mobile Video 0.02 18-24 Live TV 210min Web 67 Software 62 DVD or VCR 34 Mobile Talk 29 Console games 26 Email 20 Playback via DVR 17 IM 15 Mobile Text 12 Environm ental/ Other video 9 Computer Video 6 In-Cinema movie 1.2 Mobile Other 1.1 Mobile Web 0.8 Mobile Video 0.1 GPS Navigation 0 Rank 1234567891011121314151617 65+ Live TV 421min Web 19 Software 16 DVD or VCR 11 Email 11 Playback via DVR 7 GPS Navigation 4 Environm ental/ Other video 4 Mobile Talk 3 In-Cinema movie 2 IM 0.3 Console games 0.3 Computer Video 0.2 Mobile Text 0.06 Mobile Other 0.05 Mobile Web 0 Mobile Video 0 55-64 Live TV 346min Web 42 Email 38 Software 36 DVD or VCR 14 Mobile Talk 12 Playback via DVR 9 Environm ental/ Other video 4 GPS Navigation 4 In-Cinema movie 3 Mobile Web 1.3 Computer Video 1.2 Console games 1.2 Mobile Text 0.4 Mobile Other 0.2 IM 0 Mobile Video 0 45-54 Live TV 336min Software 52 Email 51 Web 46 DVD or VCR 21 Playback via DVR 19 Mobile Talk 18 IM 15 Environm ental/ Other video 5 Console games 3 GPS Navigation 3 Computer Video 2 Mobile Text 1.3 Mobile Web 0.7 In-Cinema movie 0.6 Mobile Other 0.5 Mobile Video 0.13 35-44 Live TV 230min Web 74 Software 62 Email 47 DVD or VCR 27 Mobile Talk 25 Playback via DVR 17 IM 15 Console games 5 In-Cinema movie 3 Computer Video 3 Environm ental/ Other video 3 Mobile Text 2 Mobile Other 0.6 Mobile Web 0.6 GPS Navigation 0.3 Mobile Video 0.06 25-34 Live TV 256min Web 56 Software 51 Email 45 DVD or VCR 35 Mobile Talk 19 Playback via DVR 16 Console games 14 Environm ental/ Other video 5 Computer Video 4 IM 3 Mobile Web 2 Mobile Text 2 In-Cinema movie 2 GPS Navigation 1.2 Mobile Other 0.6 Mobile Video 0.02 18-24 Live TV 210min Web 67 Software 62 DVD or VCR 34 Mobile Talk 29 Console games 26 Email 20 Playback via DVR 17 IM 15 Mobile Text 12 Environm ental/ Other video 9 Computer Video 6 In-Cinema movie 1.2 Mobile Other 1.1 Mobile Web 0.8 Mobile Video 0.1 GPS Navigation 0 Complete Ranking Of Minutes for 17 Screen Media, by Age Group Using a 10 minute average as a cut off Those 18-24 are exposed to twice as many screen media 10+ mins as those 65+ (10 vs. 5); greater media diversity 25

26. Live TV Led All Video Time by a Large Margin, Followed By DVDs, with DVRs Third. 4 Confirmation of earlier research or beliefs New information This may confirm Nielsen TV viewership data… But disputes a common perception that TV is not the major medium for those in younger age groups Live TV continued to dominate other media. This was true not only in total minutes across all adults, but also in daily reach (94%) and average daily duration (5½ hours) for users. Total TV’s #1 position among media held across all age groups (though total audio time matched live TV time for those 18-24). 26 Confirms that DVR playback is a significant component of total TV time, though much smaller than live TV Demonstrates that DVD time (rarely discussed) is larger than DVR playback (often discussed)

27. Live TV Daily reach: 94% Avg. daily duration: 331 mins Usage per User: Average daily duration Users: Daily reach Total Usage = Daily reach X Daily duration 94% X 331= 311 avg. mins per ALL Core participants including non-users spent with Live Television 27

28. Live TV continued to dominate other media both in daily reach (94%) and average daily duration (5hr 31min) for users. Live TV Continued To Dominate Other Media Media Categories Any audio: Broadcast radio MP3s, CDs, etc. (not shown separately) Any computing: Any Internet Web Email IM Software Video includes DVDs and DVRs primarily and other video hierarchy media (shown on next chart) Any print includes newspapers, magazines, books (not shown separately) Any phone includes landline and mobile Media Categories Any audio: Broadcast radio MP3s, CDs, etc. (not shown separately) Any computing: Any Internet Web Email IM Software Video includes DVDs and DVRs primarily and other video hierarchy media (shown on next chart) Any print includes newspapers, magazines, books (not shown separately) Any phone includes landline and mobile 28

29. Adding DVR playback did not increase daily reach of TV; it increased daily duration, and video increased both. Adding DVR playback did not increase daily reach of TV; it increased daily duration, and video increased both. Live TV represented the overwhelming majority (88%) of total TV & video time DVD/VCR players matched DVR on duration, but were higher on daily reach. DVDs Followed by DVR Playback Were by Far the #2 And #3 Sources of Video After Live TV 29

30. Previously piloted by PepsiCo, P&G and Time Warner Targets devices/services in early adoption phase Designed to avoid “early adopter” trap Provided steep discount (50%) to participants who bought from catalog of selected items, to accelerate adoption by “early majority” consumers For a minimum of $1400 and maximum of $4000 in purchases (i.e., $700 to $2000 cost per participant) N=100 individuals observed before and after acceleration purchases Media Acceleration Process™

31. Acceleration Learning Was Dominated By HDTV Effect, But Also Led To DVR Analysis Device available Purchase count Category included in tables HDTV79HDTV Nintendo Wii41Nintendo Wii PS331PS3 Laptop computer21Laptop computer DVD player18DVD player iPod16Portable audio player iTouch14Portable video player Xbox 36012Xbox 360 Desktop computer7 Apple TV5 iPhone5 Zune4Portable audio player Kindle1 Archos Wifi1Portable video player DirectTV receiver (new service)1Satellite TV Cable/Satellite upgrade0 Slingbox0 Smartphone0 Tivo0 HDTV79 Video Games84 PS3 + Xbox 36043 Nintendo Wii41 Portable audio/video player35 Laptop computer21 DVD player18 iPhone5 DVR/Tivo0 The outlined 2 acceleration categories analyzed Other devices were all purchased by 5 or fewer participants each Accelerated categories analyzed Purchase count This sample did not need acceleration to try DVR (17 participants naturally adopted DVRs)

32. The evidence suggests that a new HDTV increases TV viewership: –1 st HDTV (in both Core and Accelerated samples) –2 nd HDTV (which was only possible to observe in the Accelerated sample) –Particular increase in Live TV and Sports However, the decline in TV viewership among early HDTV owners in Core suggests that some portion of the HDTV-based increase in TV viewing is temporary Game Consoles –Game Console Accelerators spent more time with Live TV and Gaming –Less time with computer applications – particularly computer video Media Acceleration Findings

33. The study report, summary PowerPoint deck, additional analyses and technical appendices are available for download from the client’s site: www.researchexcellence.com Thank you For more information 33