Confidential & Proprietary • Copyright © 2009 The Nielsen Company

Media & Money ConferenceRandall Beard, Global EVP at Nielsen IAG -- CPG

04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company

The Seismic Shift in Targeted Advertising and Media

•Current State

• Analogue: Airlines

• Yield Management in Marketing?

• TV Engagement

• Ad Engagement

• Implications & Future State

04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company

Approach Rules of Thumb

Target Audience

Measurement

Primary Focus

Financial Impact

Timing

Broad

Viewership

1 Screen

Unclear Outcomes

Annual

Advertising & Media – Current State

04/08/23 Confidential & ProprietaryCopyright © 2009 The Nielsen Company

Introduction of Yield Management

• Optimize Revenue

• Perishable Resource

• Price Discrimination

Analogue: Birth of Yield Management

Airline Industry circa 1985

• Peoples Express

• Highly profitable

• AA launches SuperSavers

• Peoples bankruptcy

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“the single most important

technical development in

transportation management

since we entered deregulation”

Robert CrandallFormer Chairman & CEO of American Airlines

Yield Management – Disruptive

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For Advertisers

• Right Ad

• Right Consumer

• Right Program

• Right Price

For Airlines

• Right Seat

• Right Customer

• Right Time

• Right Price

Yield Management: Airlines to Marketing ?

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Digital

Cross Media Measurement

New Measurement Tools

• Precision Targeting

• TV Engagement

• Ad Engagement

• Purchase Data link

Real Time

Accountability

Yield Management in Marketing – Key Enablers

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PROBLEM

Inadequate real-time tools and measurement

Advertisers willing to pay for ad and media effectiveness

BUT

Yield Management: Airlines to Marketing

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TV Program Engagement

•What is it?

•Does it Matter?

TV Program Engagement

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0%

10%

20%

30%

40%

50%

60%

70%

80%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

When viewers are paying more attention to a TV program, they also pay more attention to the ads that air within that program

Gen

eral

Rec

all

Program Engagement

Program Engagement Impacts Ad Recall

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Ad Engagement

• What is it?

• Does Context Matter?

Advertising Engagement

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Source: Nielsen IAG Ad Data, 09.15.07 - 02.27.08. Based on A18-54 with Household Income $50K+

Purchase Intent Differs By Program Genre For the Same Creative Unit

Program Genre Purchase Intent (Top 2 Box)

Auto Racing 173

Sports Magazines 158

Professional Football–Pre-Game 119

Drama/Adventure 119

Animation 104

Feature Film 104

Reality 96

Situation Comedy 92

Game Show 92

Professional Football–Game 88

Talk Format 81

College Football–Game 77

Documentary/Salute/Tribute 69

Total 100

Advertising Engagement – By Program Genre

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Where is all this leading ?

Yield Management in Marketing – What’s Next

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Science / Algorithms

Advertising & Media – Broad Trends

Broad Target

Viewership

1 Screen

Unclear Outcomes

Annual

Rules of Thumb

Precision Targets

Engagement

3 Screens

Purchase / ROI

Real Time Replanning

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Advertisers will move toward Yield Management• Right Audience – Demo + Psycho, Behavioral

• Right Program – Ratings + TV Program Engagement

• Right Ad – Creative + Ad Engagement

• Right Time – Annual + Periodic Replanning

All linked to consumer purchase behavior…

…with Marketing ROI as key outcome

Future State: Marketing Yield Management

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The Future – Closer Than You Think

ROI Driven Advertising & Media

“…Get on board soon or

risk being grounded…”

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Discussion / Q&A

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