0900 revision anne mac donald

Television and Technology:

Friends, Foes, or Just

Fragmented?A brief look at the changes and challenges facing the television and marketing industries in an age when technology is both lending a hand and getting in the way of progress

By Anne MacDonaldExecutive Vice PresidentChief Marketing OfficerTravelers April 12, 2011

Ad Spending: 2010-2011

April 12, 2011Proprietary and Confidential – Internal Use Only 2

Sources: eMarketer, GroupM Spending Forecast

GROUPM

$68

2011 (E)

43%

($ in Billions)

BROADCAST & CABLE

$59 $60.9

2010 2011 (E)

39.1%38.6%

DIGITAL

$30.9$34.8

2010 2011 (E)

21.6%19.9%

3

Time Spent per Day by Medium*: Adults 18+

*Daily time based on total A18+ population, not just users of a medium; **Average time spent per Usage Day for A18+ Internet population is 1:28Source: Nielsen NAD-D 2008; Arbitron RADAR 101 All Persons (June 2009); Time spent 12 month average from comScore projected to U.S. population; Entertainment Software Association; TVB.org

Television 4:55

Radio2:25

Internet**1:00

Video Games 1:05

Newspapers 0:27

Magazines 0:16

Total hh:mm 10:08

April 12, 2011Proprietary and Confidential – Internal Use Only

April 12, 2011Proprietary and Confidential – Internal Use Only 4

Pro

duct

ivit

y

Time

+400%

April 12, 2011Proprietary and Confidential – Internal Use Only 5

LISTEN TO ME!

April 12, 2011Proprietary and Confidential – Internal Use Only 6

Proprietary and Confidential – Internal Use Only 7April 12, 2011

Changes in human behavior are always slower than advancements in

technology

April 12, 2011Proprietary and Confidential – Internal Use Only 8

Addressable television could provide some answers…

April 12, 2011Proprietary and Confidential – Internal Use Only 9

…but there are challenges

April 12, 2011Proprietary and Confidential – Internal Use Only 10

Proprietary and Confidential – Internal Use Only 11

Challenges to Addressable

Many players in the mix

Agencies

Networks

MSOs

Satellite distributors

Content providers

Measurement companies

April 12, 2011

April 12, 2011Proprietary and Confidential – Internal Use Only 12

April 12, 2011Proprietary and Confidential – Internal Use Only 13

Proprietary and Confidential – Internal Use Only 14

CANDOR

CONSOLIDATION

COST MANAGEMENT

COMMON DATA DEVELOPMENT

COLLABORATION

April 12, 2011

Television and Technology:

Friends, Foes, or Just

Fragmented?

Thank You