GfK-KN Media:Measuring

“Audiences in Motion”

March 2012

© 2012 GfK Custom Research North America

This material was prepared at the effort and expense of GfK-Knowledge

Networks. No part of it may be circulated, copied or reproduced for distribution

without the prior written consent of GfK.

Audiences Are on the Move…

TV Analog to digital pay TV services Blockbuster to Netflix

Audio Analog terrestrial to digital satellite Timeslots to podcasts

Print Ink to Internet to mobile Text to multimedia

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…So Where Are the Opportunities?

The path may be the same, but the destinations (outcomes) may be different

KN’s Media Practice guides our clients to derive optimal value from their audience.

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Buyers

Sellers

Distributors

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Knowledge Networks’ Media PracticeLeading media research practice

40+ years of experience through our Statistical Research, Inc. (SRI, 1969-2001) lineage, as part of KN (2001 to 2011), and now GfK

Recognized as leading media methodologists

– 2009 CTAM Research Case Study Award - winner2009 EXPLOR Award for research innovation - finalist2007 CTAM Research Case Study Award - finalist1994 ARF Lysaker Award - winner

– 2009 ARF Lifetime Achievement Award (Gale Metzger - SRI’s founder)

Clients include most major TV networks, ad agencies, radio networks, Internet media, and magazine publishers, as well as many advertisers

Research “acceptance” among media buyers/sellers

– Less time justifying your vendor/methods means more time to pitch results

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Key Practice Competencies

Media Audience

Measurement

Media Technology

Insights

Advertising Effectiveness

Audience Insights

~20% syndicated services~80% custom research

KNOWLEDGEPANEL®

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KnowledgePanel® is the Heart of KN

Probability-selected Internet Panel that is truly representative of U.S. population – 50,000 strong

Statistically valid and projectable due to our address-based sample (ABS) recruitment methodology

Captures the 25%+ of U.S. HHs without Internet access by providing those panelists with a netbook and dial-up

Includes cell phone-only households – almost 30% of US HHs

Representative Hispanic sample (English and Spanish speaking) through KnowledgePanel Latino

Extensive background data on panelist attitudes, opinions and behaviors

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Why is a probability sample important?KnowledgePanel vs. Opt-In SamplesProblems with Opt-In Samples

Exclusion of non-Internet households

Unknown probabilities of selection, precluding calculations of margin of error

Unknown, but substantial clustering and biases within respondents

U.S. Adult Population

100%

KN Sample

97%

KN Sample

74%

Landline Telephone Sample

(RDD)

Internet Survey Sample

75%

Unknowable Clustering of Opt-In Web Panel,

Non-Probability Sample

Media Audience Measurement

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Media Audience Measurement

MultiMedia Mentor®

Single source, cross-platform media usage

Media planning and strategy

Understanding the changing media audience

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Simultaneous Media Use Has Tripled Since 2000

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17%

47%

Fall 2000 Fall 2010

Base: Persons 13-64

Source: Multi Media Mentor

% of TV Users Simultaneously Using TV & Internet

Total TouchSM

A custom, property-level measure of cross-platform “events” or “a day in the life” of a particular audience

Total, unduplicated property reach and time spent

Understanding the cross-platform audience

Documenting cross-platform lift for advertising and sponsorship sales

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Research Issues Addressed by Total Touch

There is no “currency-based” solution that addresses media companies’ need to understand multi-platform use

In any case, standard “currency” (ratings) have a number of drawbacks:

They are not single source. No analysis can be made of unduplicated cume audiences or audience combinations across the different media

Their measurement of out-of-home usage is limited or not available

They do not measure simultaneous use of different media platforms

They do not include custom variables that can be used for analysis or sales

They are not designed for rapid turn-around.

Alternative solutions are not representative, not scalable, or not affordable

Shadowing consumers to physically record their media use

Personal “listening” devices that rely on audio encoding/matching

Issues with workplace measurement

Pure opt-in samples are not representative

2010 World Cup: Cross-Platform Increases TV Audience by Half

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From ESPN World Cup press release:

Using Total Touch data, ESPN estimated out-of-home viewing and usage of non-TV platforms added 46% to ESPN’s daily World Cup average in-home TV audience

Internet Radio

Mobile Magazine

Base: Persons 13-64

Source: Total Touch

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2008 Olympics:Buys Outside NBC Prime Increased Reach

Age 18-64, Total population, Average Days 1 - 17

NBC "primetime plus", 62%

Other NBCU, no primetime,

28%

NBC "primetime only" , 10%

Share of Average NBCU Olympics Daily Cume

NBC “primetime only” = only viewed NBC in primetime, no other NBCU Olympics consumptionNBC “primetime plus” = viewed NBC in primetime plus consumed Olympics via other NBC daypart or NBCU cable, online, mobileOther NBCU, no primetime = no NBC in primetime at all but consumed Olympics via other NBC daypart or NBCU cable, online, mobile

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Media Technology Insights

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The Home Technology Monitor™

Annual Ownership and Trend report– A broad, high quality HH-level

measurement of media technology in the home

How People Use® Media insight reports– Usage of/reaction to emerging

technologies, resultant changes in TV and media use

– Social Media and Program Choice– Over-the-Top TV– Connected TVs – TV’s Web Connections

“Over the Top” TV: Friend or Foe?

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Source: The Home Technology Monitor™

2011 Ownership and Trend ReportBase: TV households

15% of TV HHs in 2011 use connected devices to watch TV or movies,

up from 8% in 2010

Average number of the 20 new primetime programs…

…have heard of

…actually watched

…have read or posted about in social media

…that social media increased/decreased interest

6.9

0.3

0.5

2.0

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Social Media and Program Choice: The average 13-54 had their viewing influenced by social media on about 4% of the new Fall programs of which they were aware

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Awareness and Viewership of New Primetime Programs – All persons 13-54 –

Base: Total13-54 (N=1015), Gen Y 13-32 (n=447), Gen X 33-46 (n=300), Young Boomers 47-54 (n=268)

.23 increased interest and

.05 decreased interest

• On average, 13-54s were aware of 6.9 of the 20 new programs listed in the survey, influenced by SM about 0.3 of them

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The Faces of Social Media

Faces of Social Media Segments

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Active SoMe Users

Influenced by SoMe

S1. Evangelists

Passive SoMe Users

Not Influenced by SoMe

S2. Highly Influenced

Active Users

S3. Low Influenced

Active Users

S5. Low Influenced

Passive Users

S4. Highly Influenced

Passive Users

10%10%

18%

S6. Non Users of SM

24%24%38%38%

5%5%6%6%

16%16%Bubbles Represent Segment Size (% among population)

The Faces of Social MediaSM SyndicatedSyndicated

The Faces of Social MediaSM CustomCustom

Activity

Sentiment

Source

Dimension

Activity

Sentiment

Source

Dimension

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Activity Timeline: Dancing with the Stars MentionsMarch 1, 2011 – May 30, 2011

# of

Men

tions

# of Mentions base sizes: DWTS (n=184,008)

Season Premiere

discussion & excitement for different Contestants

Season Premiere

discussion & excitement for different Contestants

Season Finale Kym and Hines

announced winners

Season Finale Kym and Hines

announced winners

Classical night and Jennifer Hudson

performs

Classical night and Jennifer Hudson

performs

The Largest Spikes were Driven by the Premiere and Finale Episodes of DWTS

13% 7% 6% 6% 5%

# of Mentions base sizes: DWTS Contestants and Judges, no news (n=7,472)

% of All Mentions

Positive

Neutral

Negative

Engaged Viewers Posted Often with Positive Comments About Their Favorite Contestants

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Mobile Research

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KN’s QuantM Mobile Research Platform

Interviews at the point of experience

Diaries and Digital

Ethnographies

Self complete on individuals own devices

Mobile CAPI Mobile Diary Mobile Panel

Viewing Circumstances

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Viewing Source Location Audience

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10050050100

Mobile respondents generally feel engaged and happy when watching programs/movies

Engagement with program/movie

Program/Movie made me feel…

Program/Movie made me feel.

Not at all engaged (B3B)

Very engaged (T3B)

Program and Movie Diagnostics

– Total Mobile Respondents –

M20. Would you say you were very engaged with the program, not engaged at all, or something in between? M21. Would you say that the program/movie made you feel happy, sad, or something in between? M22. Would you say the program/movie made you feel relaxed, excited, or something in between? Base: Total MOBILE respondents (N=146)

Respondents report being even more engaged and happy while watching a TV program or movie on playback (DVD, streamed, DVR)

Sad (B3B)

Happy (T3B)

Relaxed (B3B)

Excited (B3B)

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David TiceSenior Vice President

Media Team908-497-8075

dtice@knowledgenetworks.com

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