PGM VAB REPORT: MVPD S VOD DRIVING & AD LIFT
MVPD s VOD Insights MVPD s On-demand platform is a top preference for viewing programming content VOD is available in 62% of the Homes Growth driven by improved interface and surge of recently aired programming 79% of Cable subscribers use VOD per month (Comcast subs) & almost half (46%) time spent is with episodic TV viewing Consumers spend 9.3 hours/month with VOD content (Rentrak) Profile of VOD user: Younger, more educated, higher income homes tend to view VOD programming MVPD s VOD creates ad lift & generates more engagement Cable VOD Day 4+ outperform ads in general environment in following metrics: Likeability, relevance and attention Driving consumers to brand s website Consideration for purchasing Brand impact metrics & intent to purchase) VOD poised to grow 6% in next year to $2.5 Billion PGM
PGM Consumers Are Just As Engaged With Television Programming as In Years Past 82% Cite More/Same Engagement As Last Year PGM TV Shows Engagement Versus Year Ago Movies Less 16% Non-Viewers 2% More 22% Less 15% Non-Viewers 3% More 31% Same 60% Same 51% Source: Nielsen home entertainment consumer trends5/15: Q: Thinking about all the ways you watch TV shows, how do the following activities compare to last year? Thinking about all the ways you watch movies, how do the following activities compare to last year?
Provider s On-Demand Remains A Top Preference For Viewing Programming Content Percentage of Shows Viewed Per Source PGM Shows you record on a DVR or TiVO 34 (Provider's) On-Demand service Shows you stream from Netflix 16 19 Sites/apps from TV nets 8 Any other online source 7 Shows on Hulu/Hulu+ 6 Amazon Prime/Amazon Instant Site/App from {provider} Source: 2015 Feb Hub Report on Timeshifting 3 3
Today, Video On Demand Is Now Available In 62% Of Homes - Up 32% In Just Five Years PGM VOD Availability in TV HHs 72,391,000 UE 43% 47% 53% 57% 60% 60% 62% Source: Nielsen; September of each year. 09 10 11 12 13 14 15
MVPD s VOD Growth Is Driven By Its Improved Interface and Surge Of Recently Aired Programming Content PGM Average U.S. Titles Per Month # of Titles Has Quadrupled In Past 5 years 33,875 27,930 Sample Programs on VOD (Availability Varies by Cable Provider) 15,667 20,081 5,950 8,100 10,403 2008 2009 2010 2011 2012 2013 2014 Source: SNL Kagan Multichannel market trends; Count represents avg monthly selection, reflecting turnover and refreshed content and are not comparable to average titles available simultaneously. 3/15; Sampling of programming for one provider.
MVPD s Offer A Vast Variety Of On-Demand Content Unmatched By Any SVOD Service SVOD vs. Average U.S. Comparison: # of Titles Per month PGM Netflix 33,875 Hulu+ 27,930 Amazon Avg MVPD 20,081 16,712 17,309 12,554 5,841 9,848 7,293 8,830 10,042 0 2012 2013 2014 Source: SNL Kagan; Netflix reflects estimates based on 1/13, dec 13, dec 14; Hulu + reflected estimates based on dec 12/ 13/ 14; avg mvpd reflects annual monthly estimates as of 3/15; amazon reflects estimates in July 13/ 14. Includes both TV and movie titles.
In Fact, Regular Users Of On-Demand Prefer VOD Over Streaming Among users of VOD and Streaming Services, those who turn to VOD at least once a week, prefer PGM VOD 43% Streaming Services Source: MRI How People Use Media; TV Everywhere/VOD,A13-64 in pay tv homes 30%
PGM
More Than Three Out of Four MVPD Subscribers Use Video On Demand PGM 79% of Comcast Subscribers Use VOD Per Month 46% of Their Time Is Spent With Episodic TV Viewing Source: FierceCable 5/15 Comcast reported;
Consumers are Spending Over 9 Hours a Month Watching VOD Content; Spending a Significant Amount Of Time With Your Commercial Since Fast-forward Feature Is Most Likely Disabled Time Spent (Hrs Per Month) PGM Viewers spend 9.3 hours with VOD in 2014 up +16% v. 2011 Source: Rentrak state of VOD report 2014; 9.3 in 2014 v. 8 hours in 2011
VOD Users Are More Likely To Be Younger Share of Audience VOD TV 56% PGM 29% 23% 19% 27% 11% 8% 9% 4% 13% K2-11 T12-17 A18-34 A35-49 A50-99 Source: Nielsen; VOD represents only nets Nielsen reports for bdcst+cable; 3Q15
They Tend To Be Higher Educated, Earn More And Hold Professional/Managerial Positions Share of Audience PGM VOD TV 31% 34% 31% 18% 18% 20% Earn $100K 4+ Years College POM Source: Nielsen; VOD represents only nets Nielsen reports for bdcst+cable; 3Q15
When Compared To Online Video Viewers, VOD Viewers Tend To Be More Upscale PGM Index To General Population VOD Viewer Online Video Viewer Master s Degree 138 133 Married 106 87 Children in Home 122 166 HHI $75K+ 147 121 HHI $150K+ 181 131 Source: MRI Doublebase 2014; watched vod in past month movies/shows any; online video viewer= watched any movies/shows online;a18+
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MVPD s VOD Creates Ad Lift & Generates More Engagement TV Viewer Who Saw Ad On VOD Day 4+ v. TV Viewer Who Saw Ad in General Environment PGM How much did you like the ad? How relevant is the ad to you? How much attention did you pay to the ad? +3% +22% +6% 74% 77% 58% 80% 62% 68% Likeability Relevance Attention General Viewing VOD D4+ Viewing Source: Canoe/Magid 2015 study; general adv= live, DVR or VOD anytime; VOD d4+= free on demand between 4th-7th day after first airing/ top 2 box; Insurance Brand; P18-49
MVPD s VOD Ads Have Stronger AD Impact Driving Consumer To Visit Brand s Website TV Viewer Who Saw Ad On VOD Day 4+ v. TV Viewer Who Saw Ad in General Environment PGM +14% +3% 31% +4% 17% 19% 22% 15% 19% Made me want to visit the brand website Made me want to consider purchasing/switching Made me want to search for information about the brand General Viewing VOD D4+ Viewing Source: Canoe/Magid 2015 study; general adv= live, DVR or VOD anytime; VOD d4+= free on demand between 4th-7th day after first airing/ top 2 box; Insurance Brand; P18-49
MVPD s VOD Generates Greater Brand Lift TV Viewer Who Saw Ad On VOD Day 4+ v. TV Viewer Who Saw Ad in General Environment PGM How much did you like the brand? How likely would you recommend the brand? How likely would you Consider purchasing? +15% +38% 73% +3% 49% 35% 36% 21% 24% Brand Opinion Intent To Recommend Intent to Purchase General Viewing VOD D4+ Viewing Source: Canoe/Magid 2015 study; general adv= live, DVR or VOD anytime; VOD d4+= free on demand between 4th-7th day after first airing/ top 2 box; Insurance Brand; P18-49
PGM
VOD Dynamic Ad Insertion (DAI) Canoe Enables National TV Network Programmers to easily insert advertising into their Video on Demand programming on cable operators VOD platforms Consumer picks TV program from cable VOD service PGM Consumer watches TV program Consumer watches ads inserted as ad breaks occur before, during, and after the program
Where Canoe is Coverage in 130 DMAs; 48 of the top 50; 35+M Households PGM = Canoe homes in DMA
Benefits of : Quality Programming PGM
Benefits of Familiar Business Model Sold by National Programmer Sales Teams % of Inventory goes to MSO for local Sold on CPM, like TV Targeting, like TV Viewed Ad Impression metric, like Digital Timely & Reliable Measurement Pay only on actual viewed ad impressions verified by Canoe Stable, accurate, single source measurement * Compliments TV plan's reach as DAI reporting separate from VOD in Nielsen C3/C7 rating Compliments Rentrak s overall VOD insights * MRC Accreditation of Canoe s measurement service in process. Pre-Audit, Committee Review, & Membership Review stages passed. PGM
Viewed Ad Impressions On The Rise Viewed Ad Impressions PGM 6,300,392,507 7,653,062,365 2014 2015 YTD Oct Source: Canoe, Oct 2015
A Look At Campaign Types PGM Campaigns Running in Q3 2015 { Campaign Orders } Come from linear, digital and hybrid groups 12% 88% 988 Total Campaigns In 3Q15 { Category Types Include } Auto, QSR, Financial, Insurance, Technology, Pharma, Toy, Shipping, Hospitality, Food, Health & Beauty, Fitness, Theatrical, Retail, Pet Care, Home Improvement, Beer & Wine, Spirits, Armed Forces, Clothing, Travel, Home Furnishing, Packaged Goods, Healthcare, Outdoor, Gaming, Energy Drinks, Education, Industrial External client ad campaigns Source: Canoe, Oct 2015 Network Tune-In ads
Ad Opportunities Per Break PGM Average Ad Opportunities per Break 4.5 For campaigns that utilize { Frequency Capping } the average campaign caps at 2.0 2 1.0 Impressions per episode Pre-Roll Each Mid-Roll Post-Roll Source: Canoe, Oct 2015
CONTACT US PGM If you would like additional video advertising information, insights or analysis please visit our website at www.thevab.com or feel free to contact us directly: Sean Cunningham President & CEO 212-508-1223 seanc@thevab.com Jason Wiese VP Strategic Insights 212-508-1219 jasonw@thevab.com Follow us on and like us on Danielle DeLauro SVP Strategic Sales Insights 212-508-1239 danielled@thevab.com Evelyn Skurkovich Sr. Director, Strategic Insights 212-508-1220 evelyns@thevab.com