Jane Clarke | CEO, Managing Director

The Next Wave of TV Measurement

CIMM MISSION

Now affiliate of ARF; still R&D coalition of cross-platform video ecosystem to innovate in:• Bringing more granular RPD data to TV for

planning, buying & attribution measurement• New methods to measure and compare

cross-platform TV/Video audiences• Designing future data platforms for

cross-platform premium video2

CIMM MEMBERS

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1. Rise of Granular Viewing Data and TV Attribution

2. Growth of Addressable TV

TWO TV MEASUREMENT TRENDS

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the science of allocating credit to exposures for driving sales or other outcomes.

the most scintillating, complicated and elusive topic in the television industry.

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2.

ATTRIBUTION

Household or device-level measure of ROI and tool for tactical optimization of media elements• Requires STB or SmartTV data matched to households or devices

Market-level measure of ROI and tool for strategic allocation of marketing and media elements • Requires media GRPs or impressions at the DMA level (or lower)

Marketing Mix Models

Attribution

Two Fundamentally Different ROI Measurements

7 Key Areas In TV Attribution

3. Can the modeler measure the outcome variable and business objectives you want?

Sales, Traffic, Brand Attitudes or TV Tune-In

1. Does the overall model approach fit your needs?Tactical Optimization or ROI?

2. What type of television is analyzed in the model?

Linear, DVR, VOD, Addressable, Premium TV and Short Video on Smart TVs or Mobile/Computer

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7. Understand QC, privacy and validation processes

4. Does the TV data meet your needs? Accuracy, representativity, granularity … How much is measured, modeled or matched? How are data matched?

5. Are all the media and marketing elements in the model? Other media, other marketing and non-marketing drivers

6. What method determines attribution?Statistical models, algorithmic or experimental design?

7 Key Areas In TV Attribution

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Industry Concerns and CIMM’s Next Steps

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1. Don’t forget fundamentals of TV advertisingCreative MattersUpper-funnel Branding Benefit

2. Challenges in measuring and combining all forms of TV viewing: linear, time-shifted, VOD, OTT, AddressableDisentangle Data IssuesDevelop Best Practices

3. CIMM Next Step: Bring More Confidence to Data & MethodologyControlled study to unpack data inputs for same campaigns:

Different sources for Ad Airings (Ad Occurrence) data Different combinations of Smart TV and STB data for Ad Exposure

Perception vs. Reality in TV

Scale (HH’s)

Data Sources

Programmatic

Sold on ROI?

Reality

Linear TV Audience Based Buyingon Linear TV

Pay TV Video On Demand (VOD

with DAI)

Digital VideoOver The Top(OTT)

Full Addressable TV

Perception

Linear TV Full Addressable TV

75+M/<5% of TV ads119+M/100% of TV ads

Nielsen, comScore

No

93+M/@20% of TV ads

RPD, Nielsen, comScore, First & Third Party Data

Some

Data targeting automated; Insertion manual

40+M/<5% of TV ads

Nielsen, comScore, RPD

No

70+M/<5% TV ads

No

85+M/@20% TV ads

No

RPD, Nielsen, comScore, First & Third Party Data

Some

Nielsen, comScore,Cookies / DMPs

Nielsen, comScore,Cookies / DMP’s

No Yes MixedYes

No

Source: Simulmedia

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Identify high-value households

leveraging first- & third-party datasets

Apply the same first-& third-party datasets to include additionalscreens and systems

Match the target set to determine the

qualified addressable TV HHs & deliver ads to only those homes,

at scale

Analyze the impact through closed-

loop measurement

Mobile, Tablet, Connected TV Screens

62%

Sales Lift Sales Lift

23%

17% 15%

7%

CIMM Workshop: How does Addressable Television work?

Addressable Television is valuable and scalable today!

75MILLION

ADDRESSABLE & OTTUS HOUSEHOLDS

§ Direct access to all addressable TV supply from all providers and video partners (connected TV, mobile, digital video extensions)

§ Platform technology unifies and standardizes campaigns.

§ Determines unduplicated reach, frequency and sales for a campaign, with the ability to bridge TV and digital

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TYPES OF ADDRESSABLE TV

Linear / VOD

Dynamically deliver messages only to households in a brands true

segment

Enables full closed-loop measurement against

marketer KPIs

70m US HHs

Zone Targeting

Deliver targeted advertising to specific zip and cable zones that over-index for a certain audience

attribute.

Enables close-loop measurement via household level exposure data

210 DMAs, 2700 Zones

Index Targeting

Use data to target TV content that a specific audience segment is

most likely to view.

Uses STB or ACR functionality in Smart TVs to identify content.

93M US HHs

OTT / TV Everywhere

Reach lighter traditional TV viewers or cord cutters/nevers on

IP and mobile devices

Runs in premium episodic TV content streamed via apps.

500m US OTT Devices

Addressable TV: Multiple inventory formats, devices, and services

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HHs in-market for:Luxury SUVs

Electric/Hybrid cars

AUTO

Automotive

DMV registration data

FIRST PARTY

Card membersCurrent/prospective

members

First-party client data via double blind match

SHOPPER

HHs purchasing:Dog food, Cat litter,

Craft beer, Soup, Decongestant meds

Loyalty card (store) data and credit/debit data

SET TOP BOX

Light/lapsed/heavy viewers of:

Specified programs or Networks

Set top box ACR data

PROPENSITY

(Demographics, psychographics,

behavioral)

Small business owners

Tech enthusiastsOrder flowers online

PHARMA

Allergy sufferersBirth control usersChronic migraine

sufferers

RX diagnosis data (HIPAA compliant)

Robust and diverse data ecosystems allow advertisers build rich profiles

Decile 0 1 2 3 4 5 6 7 8 9 10

% of Total ImpressionsAddressable Campaign*

Decile 0 1 2 3 4 5 6 7 8 9 10

% of Total ImpressionsNational Campaign

By implementing frequency capping and finding the target segment wherever they were watching, the Addressable campaign is able to deliver more even impression distribution against the target audience.

REACH HHS NOT EXPOSED IN NATIONAL CAMPAIGN

83% OF IMPS. GO TO ONLY 34% OF HHS

The Impact of Layering Addressable

*Addressable campaign for illustrative purposesReach derived from DTV set-top box data.

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SALES LIFT Purchase metricsSales lift; total buy rate; share shift analysis; days to purchase; optimal frequency; incremental sales

WEB TRAFFICEngagement metricsLift in visitors, days, visited, total visits; visits by page pixeled; visits by frequency; days to first visit from exposure

BRAND HEALTHAwareness metricsAd awareness, ad preference, ad consideration; perception by demographic, by competitive purchasers

FOOT TRAFFICMeasure foot trafficLift in location visitation, by network, by daypart, by day of week; incremental visitation; total exposed visitation

Today, measurement is primarily a closed-loop analysis with media delivery reported inconsistently by inventory owners and/or third parties

CIMM Workshop: Key Issues in Addressable TV

1. Complexity with a Payoff: Operationally challenging nowSuccess has made it worthwhile

2. Emerging Addressable Tactics:Granular precision audience segmentationFrequency capping for heavy TV viewersReach extension for less frequent TV viewers

CIMM Workshop: Key Issues in Addressable TV

3. Addressable Expansion: National InventoryNew Arrangements with MVPDs (Ampersand)

DAI in Smart TVs

4. Major Challenges with Opening Up National Inventory• New business agreements with MVPDs/OEMS to deploy

• Need profitable addressable pricing models that address

unsold impressions not “in target”

• Standardization of consumer targets, data sources and ROI

measurement

• Separation of addressable measurement from national

C3/C7 ratings

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• Example: Program “A” – Average National Cable Unit :30

Traditional Linear TV Economics

A18-49 Rating .14

A18-49 Impressions 180,000

A18-49 Net CPM $14.00

:30 Net Unit Value $2,520

Addressable Unit Economics

Target Addressable Segment (20% of :30 Linear Unit Imps)

36,000

Effective National Linear :30 CPM applied to Target Addressable Segment

$70.00

20% Discount Applied to National Linear :30 ECPM

$56.00

Unit Value of Addressable Impressions

$2,016

Linear Unit Economics

A18-49 Impressions 144,000

A18-49 Net CPM (at 25% discount for remaining Imp)

$10.50

:30 Unit Value of Remaining Linear Impressions

$1,512

New Total Unit Value: $352840% premium over linear-only sale

Tradition Linear-Only Sale Addressable + Linear Optimized Sale

The Math for a National Network

DAI in Smart TVs: Two ApproachesProject O.A.R Nielsen

Number of TV sets 12 million TVs (Vizio); in discussions with other OEMs* to launch an open standard

16.5 million homes from two manufacturers; in discussions with other OEMs

Launch timing December 2019 2019-20 – Integration, Development and Beta Testing2021 – Commercial introduction

Addressable insertion model SASO (creative versioning) SASOAddressable audience measurement reporting scope

National and local TV ad inventory

National and local TV ad inventory

Audience measurement and reporting principles

Emphasis: 3rd party verification; standardized identification through Ad-ID

Emphasis: tie back to Nielsen tenets: universe estimates, HH demographics, coverage, representation, computations

What’s Next?

1. MVPD Platforms: Xandr vs. Ampersand?2. Smart TVs: O.A.R. vs. Nielsen? 3. Standardization: Not only segment definitions,

but approaches to counting and validating impressions

4. Measurement: Industry agreement on methodology to separate addressable from non-addressable impressions.

Jane Clarke | CEO, Managing DirectorJane.Clarke@cimm-us.org

www.cimm-us.org@CIMM_NEWS