A MESSAGE ON MEDIA FROM THE FUTURE

2015

WE ARE PIVOTIING ON THE MOST EXCITING AND TRANSITIONAL TIME OF THE LAST 20 YEARS

CHANGE IS THE ORDER OF THE DAY

YoY % Change

Google -1%

Facebook 34%

Microsoft 4%

Yahoo -12%

Twitter 58%

WHAT WE LEARNT IN 2014

BEST CAMPAIGNS

‘The Scarecrow’ - Chipotle

#lookup – British Airways

‘World’s Toughest Job’ – Cardstore

‘Winner Stays’ – Nike

BEST MEDIA STUNTS

BEST BRAND STORIES

Greenpeace vs Shell & Lego

Richard Branson-zilla – Virgin Media Big

Kahuna Bundle

Walking Dead – Times Square

Vinnie Chief Biscuit Officer – Fox’s Biscuits

BEST BRAND BEHAVIOUR

BEST BRAND BEHAVIOUR

• Faced being sued for not ‘providing wings’, or improving athletic or intellectual performance

• Agreed to pay US citizens who have bought one of its drinks equivalent of £6 or free products

• Problem turned into huge marketing stunt for Red Bull (not exceeding $13m)

THE THINGS EVERYONE TALKED ABOUT

ALS Ice-Bucket Challenge

Cancer Awareness ‘No make-up selfie’

Apple iCloud & Security

PIZZA HUT WON THE SOCIAL PRIZE

Bellwether forecasts 7.0% increase in adspend for 2014, before growth cools to 3.8% in 2015

DIGITAL ADVERTISING KEPT GROWING, WITH MOBILE LEADING THE CHARGE

AT ITS EXPENSE PRESS CONTINUES TO SUFFER

RADIO REMAINS STABLE AS STREAMING IS BOOMING

175M CINEMA ADMISSIONS PER YEAR 75% OF ADULTS GO AT LEAST ONCE A YEAR UP 28% FROM 2008

TIME SPENT WATCHING TV IS GOING DOWN

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014No

. o

f h

ou

rs o

f T

V v

iew

ed

pe

r d

ay

Non-commercial viewing Commercial viewing

4 hours 12 min 4 hours 8 mins 4 hours 14 mins 4 hours 18mins 3 hours 54 min

2 hours 30 mins

2 hours 43 mins

2 hours 41 mins

2 hours 42 mins

2 hours 40 mins

1 hour 24 mins

1 hour 29 mins

1 hour 27 mins

1 hour 32 mins

1 hour 38 mins

Source: BARB Jan-Mar 2010-2014, individuals

GOOD WEATHER AND CHANGING HABITS ARE HITTING VIEWING ACROSS THE BOARD

0

50

100

150

200

250

300

Individuals ABC1 adults Adults 16-34s Men hwch

Imp

acts

(m

illi

on

s)

Q1 2013

Q1 2014

-5.9%

-5.1%

-5.6%

-7.7%

-5.9%

-5.0%

1 MILLION HOMES NOW WITHOUT A TV

SCREEN WARS OR SCREEN LOVE?

MULTISCREENING IS BECOMING THE NORM

Of which

THE TRUTH IS, IT REALLY DEPENDS ON CONTEXT AND MOOD

Multi-Task Viewing Personal Viewing Session Viewing Clan Viewing

Sacrifice Viewing Partnership Viewing Feet-up Viewing

Source: Thinkbox Screen Life Oct 2014

& MULTISCREENING DOESN’T REDUCE AD RECALL

THE EMPIRE STRIKES BACK

Source: BARB 2014 UK data, eMarketer April 2014 data; includes time spent multi-tasking across platforms

TV >3hrs 52mins

Digital 55 minutes

SESSION LENGTH MATTERS

381

547

121

496

180 98

Sky Go (Mobile

and Tablet)

1.8million

Live Premiere

Sky+ Premiere

Live Repeats

Sky+ Repeats

Sky On Demand

(TV)

Only 21% of total viewing came from the live premiere

Source: BARB/Skyview Individuals. Sky Go data based on views

381,000

TV audiences are delivered over a longer

time frame

THEY LOVE THEIR MOBILES, BUT DON’T LOVE THE ADS ON THEM

FAVOURABILITY

ATTENTION

ONE FIFTH OF USERS USE AD BLOCKING SOFTWARE 85 PERCENT OF ALL CLICKS ARE DERIVED FROM 8 PERCENT OF USERS

One fifth of users use ad blocking software 85 percent of all clicks are derived from 8 percent of users Ads that win awards are 11 times more effective.

WELCOME TO THE DARKSIDE

PricewaterhouseCoopers - Global Entertainment and Media Outlook 2014-18

We know

Everything that is shared

We don’t know

HOW PEOPLE HAVE CHANGED IN 2014

Change in impacts over the last five

Source: BARB Jan-Mar 2010-2014 Base: 30” reweighted impacts

Men +3.2% Kids -4.7%

Individuals +0.9% ABC1 Adults +4.8% 16-34s Adults -2.3%

Adults +1.5%

MAJORITY OF VIEWING IS STILL LIVE

Source: BARB Jan-Mar 2014 – Individuals, Individuals with DTRs

Individuals Individuals with DTRs

88%

6%

6%

Individuals Individuals with DTRs

83%

8%

9%

Live Viewed on the same day as live (VOSDAL) Timeshifted viewing within 7 days

THE AVERAGE VIEWER WATCHED 47 ADS A DAY IN Q1 2014

SMARTPHONE USAGE IS ESTIMATED AT 2.42 HOURS PER DAY WITH AN ESTIMATED 90% OF THAT TIME SPENT WITHIN APPS

CHANGING ATTITUDES Age Statement Q3 2013 Q3 2014 Change

15-24 I tend to buy products from companies

who sponsor TV programmes 8.46% 4.83% -42.9%

15-24 I often notice the advertisements on the

Internet 42.8% 30.5% -28.8%

15-24 If I am going to be able to use a new

technology product, somebody has to show me how to use it

17.3% 25% -44.3%

65+ When I need information the first place I

look is the internet 29.6% 40.4% 36.5%

65+ I'm more inclined to purchase a product from a corporation that sponsors events

than one that doesn't 14.1% 10.8% -23.2%

ALL I tend to spend money without thinking 16.9% 16.5% -2.41%

15-24 Getting text messages from commercial

organisations is intrusive 55.7% 59.0% 6.07%

65+ Getting text messages from commercial

organisations is intrusive 58.9% 61.8% 4.91%

Confidence in sponsorship messages is down, and consumer are becoming more self

reliant in their use of technology. Although, consumers prefer to use this technology proactively (to find

information), and judge passively viewed

adverts as intrusive

CONFIDENCE IS RISING

0

10

20

30

40

50

60

I feel pretty confident that I’ll be ok

I’m concerned, but should be fine

I’m really worried Things are already really bad – They can’t get a lot

worse

Sep-11

Sep-14

Source: Lightspeed GMI/Mintel

CONFIDENCE IS RISING

CONFIDENCE IS RISING

BIGGEST ADVERTISING QUESTIONS IN

2014

BUT HOW DO YOU MEASURE IT?

FACEBOOK STRIKES FIRST

SEARCH WARS • Search will retain its dominant

position • In spite of increase in market

share for video and mobile advertising

TRULY UNIQUE AUDIENCE’S ARE BECOMING THE PREMIUM

LOOKING TO THE FUTURE

BIG GOES LOCAL

1.

& AGGRESSIVELY DIVERSIFYS

PROGRAMMATIC & NATIVE BECOME COMMONPLACE

2.

3. MOBILE FINALLY BECOMES A REAL GAME CHANGER

Source: Ooyala Global Video Index Report, Q1 2014. Study measured the anonymized viewing habits of viewers in 239 countries and territories, and data from Ooyala’s video publishers, which include hundreds of video publishers, brands and operators.

532% growth in mobile and tablet viewing from

2012 to 2014

25%

20%

15%

10%

5%

0% Aug 2011

Mo

bile

sh

are

of

on

line

vid

eo

(%

)

Share of mobile and tablet video plays

Apr 2012

Dec 2012

Aug 2013

Mar 2014

VIDEO AND MOBILE WILL CONTINUE TO DOMINATE

Source: PWC – global Entertainment outlook 2014-2018

MOBILE PAYMENTS

INTEREST IN CONTACTLESS PAYMENTS ARE GROWING

Source: Kinetic Panel June 2014

65%

81%

62%

25%

AllAdults

18-34 35-54 55+

% of aware that have used the

functionality

• 27% feel comfortable with mobile to mobile payments

• 37% feel comfortable with contactless payment cards

MOBILE - NEW WAYS TO SEARCH

NEW FORMATS WILL AIM TO PROVIDE BETTER SOLUTIONS

4. PHYSICAL MEETS DIGITAL

VIRTUAL VACATION

5. BRAND ANNOYANCE

PRIVACY

• Whisper the ‘Anonymous’ app used for sharing secrets • Recently come to light that users have been tracked & monitored • User data collated and stored indefinitely • Some information shared by company with US Department of Defense

Every day. Everywhere. 17M videos shared

10B views

440M people

by

Source: NY Times, September 9, 2014

6. CLOUD POWER

THE AGE OF GIGABIT CONNECTIVITY

7. SUBSCRIBER LIVING

WE WILL HEAR MORE FROM…

AND OF COURSE…