INTERNAL USE ONLY This PowerPoint was created for internal use only. It is not presentation ready....

INTERNAL USE ONLY

This PowerPoint was created for internal use only. It is not presentation ready. It is intended to house stats and information that support the argument you might make for an advertiser to decrease TV spend. It also contains hints on how to explain the importance of some of the stats to your client.

A client-facing PDF has been made for your use. You can find the client facing piece in Salesforce.com Content or your marketing department can download it from the Creative Library.

You may have seen the recent headlines…

Read more: http://www.nytimes.com/2013/05/13/business/media/tv-networks-face-falling-ratings-and-new-rivals.html?pagewanted=all&_r=1&

The New York TimesMay 12, 2013As the major television networks prepare to unveil their new fall lineups in New York this week, they face threats from seemingly every corner. Prime-time ratings for the Big Four broadcasters — ABC, CBS, NBC and Fox — together are dropping more precipitously than ever. Even their biggest hits, like “American Idol” and “Dancing With the Stars,” are fading fast. […] New technologies are making it easier to skip those ads, anyway. That’s not all: there are more outlets for programming cropping up all the time, with Netflix and Amazon and dozens of cable channels competing for actors, producers and, most important, viewers.

As TV Ratings and Profits Fall, Networks Face a Cliffhanger

http://www.nytimes.com/2013/05/13/business/media/tv-networks-face-falling-ratings-and-new-rivals.html?pagewanted=all&_r=2&

Key Takeaways• AUDIENCE: Broadcast networks are having trouble reaching

their target audience

• TECHNOLOGIES: New technologies are making it easier for viewers to skip broadcast advertisements

• FRAGMENTATION: New programming outlets are popping up all the time

• Broadcast is down. But honestly, all “traditional” MASS-media is down

• The Mad Men single-solution advertising days are over

• Fragmentation has changed the way consumers interact with media

• It’s no longer about reaching more people, it’s about reaching the right people

• Our targeted solutions help your advertiser win in this fragmented world

Why do we care?

AUDIENCE

Broadcast ratings in the 18 to 49 year old demographic, the one most coveted by advertisers, are not doing well. Our various media solutions can help advertisers target that demographic more effectively. We are also able to reach a more affluent and educated audience.

TV consumption continues to consistently decrease, while internet consumption continues to consistently increase.

TV Consumption

HEAVY TV WATCHERS

People who watch TV a lot are 88% more likely to be age 75+.

32% of heavy TV watchers are age 55+, yet broadcast TV’s key demographic is age 18-49.

If your advertiser’s key demographic is age 18-49, broadcast TV may not be helping them reach the right audience.

TV Consumption

We Reach 18 to 49 year olds

In Cincinnati, over the course of an entire week, primetime shows on ABC reach only 30% of 18-49 year olds.One Sunday newspaper reaches 36% of 18-49 year olds

68% more 18-49 year olds visit cincinnati.com on an average day than watch an average 30 min primetime ABC program

In Des Moines, 1 out of 3 18-49 year olds read the Sunday paper. It would take 25 primetime spots on the NBC station to reach that same amount

27% more 18-49 year olds visit desmoinesregister.com on an average day than watch an average 30 min primetime NBC program

And in Nashville, a week of print and online reaches 18% more 18-49 year olds than a week of primetime NBC programming

SOURCE: Scarborough R1 2013

We Reach an Affluent Audience

Source: Scarborough Research, USA + database, Release 1, 2012

72% of those with household incomes in the range of $50,000 to $99,999 read a print newspaper, e-edition, or visit a newspaper website in an average week

76% of those with household incomes in the range of $100,000 to $249,999 read a print newspaper, e-edition, or visit a newspaper website in an average week

78% of those with household incomes in the range of $250,000 or greater read a print newspaper, e-edition, or visit a newspaper website in an average week

Is your advertiser trying to reach an affluent audience? If so, TV ads may not be the best choice.


Affluents spend more time on the internet, than they do watching TV, especially between ages 18 and 44.


We Reach an Educated Audience

Just 60% of those with a high school education or less read a print newspaper or an e-edition or visit a newspaper website in an average week.

71% of those with some college education read a print newspaper or an e-edition or visit a newspaper website in an average week.

75% of those with a four-year college degree read a print newspaper or an e-edition or visit a newspaper website in an average week.

80% of those who have done postgraduate work or have a graduate degree read a print newspaper or an e-edition or visit a newspaper website in an average week.

74% of those employed in professional occupations read aprint newspaper or an e-edition or visit a newspaper website in an average week.

However…

TECHNOLOGIES

New technologies are making it easier for viewers to skip commercials. If an advertiser schedules a broadcast TV ad, the odds of the viewer seeing it are less likely than ever before.

Netflix is a subscription based on-demand service that provides internet streaming of TV shows through their "Watch Instantly" option online. This allows a customer to download and watch certain broadcast TV shows and not have to watch commercials.

With Hopper's® new PrimeTime Anytime™, three hours of primetime programming are available to you for up to 8 days from initial air date. Plus you can save your favorite primetime content forever. You can also instantly skip commercials in primetime TV on ABC, CBS, FOX and NBC.

TiVo provides an on-screen guide of scheduled broadcast and cable television shows. One of it’s features allows you to record shows when they air and then fast forward through commercials when the recording is played.

Commercial–skipping examples

iTunes is a media library application developed by Apple Inc. through which users can purchase and download commercial-free television shows.

Online video subscriptions are extremely popular. Usage grew tremendously from 2011 to 2012.

If an advertiser is paying for broadcast advertisements, their money may not being going as far as it used to. Viewers are turning to other paid services for TV consumption. These other options often allow the consumer to skip commercials, which most people see as a big benefit.

Growth in Online Subscriptions

51% of US internet user households own a DVR. This means nearly 51% of households have the ability to skip TV advertisements.

Heavy DVR Usage

41% of internet users spend 1 or more hours a day watching recorded TV shows.

All those people have the capability to skip commercials.

= 40.9%

Watching Recorded Shows

FRAGMENTATION

Media is more fragmented than ever. Consumers are “tuning out” the noise and it’s hard to get their attention. The consumers are in control and today’s purchase funnel looks more like a flight map.

THEN NOW

Complicated Purchase Cycle

What used to be a mass audience on TV is now dispersed across other platforms.

Consumers divide their time and attention not only among different media channels, but also among subchannels within the same media.

For an advertiser, it’s important to be at many consumer touch points, not just TV.

Consumers are Multitasking

Marketing has evolved

<1990 1990’s 1999 2000’s 2010

Direct MailTelephone

TelevisionRadioPrint

Display

IMEmail



DisplayWebsiteSearch

Online Display

IMEmail




Online DisplayPaid Search

Landing PagesMicrosites

Online VideoWebinars

Affiliate Marketing

SMSMobile Email

IMEmail







Affiliate MarketingBlogsRSS

PodcastsContextual

WikisMobile WebMySpace

Addressable VoiceMobile Email

SMSIM

EmailDirect MailTelephone







PodcastsContextual

WikisMobile WebMySpaceBehavioralFacebook

TwitterYouTube

Virtual WorldsAugmented Reality

Widgets

But we’ve got it covered

<1990 1990’s 1999 2000’s 2010



Display

IMEmail




Online Display

IMEmail







Affiliate Marketing

SMSMobile Email

IMEmail








PodcastsContextual

WikisMobile WebMySpace

Addressable VoiceMobile Email

SMSIM

EmailDirect MailTelephone







PodcastsContextual

WikisMobile Web

MySpaceBehavioralFacebook

TwitterYouTube

Virtual WorldsAugmented Reality

Widgets

We can customize the right solution for your clients

SMSWebinars

Email

BlogsContextual

Paid SearchTwitter YouTubeAugmented Reality

Mobile Web

Print Website

DisplayDirect

Mail

Landing Pages

Online Display

Facebook

Search

MicrositesOnline Video

Behavioral

Mobile Email

CONCLUSION

It all comes down to targeting. In today’s fragmented and changing world, we have the capability to target the right audience with the right medium. We can help your client reach the coveted 18 to 49 year old demographic, as well as people who are more affluent, educated, and tech-savy. Our capabilities are virtually unmatched.

Get local dataWhat about your local broadcast stations? How are they doing in your market? Make your story stronger and use Nielsen Ad*Views to find out how the broadcast stations in your market are reaching the 18 to 49 demographic in any day. Create a prospect list by knowing which advertisers are running on that station and show them how their GRPs locally are trending. USCP licenses Ad*Views and is available in more than 30 markets. Check with your marketing department.

More info on Ad*Views: http://sps.gannett.gci/areas/marketing/rpt/mplus/default.aspx

http://sps.gannett.gci/areas/marketing/rpt/mplus/default.aspx

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