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Copyright © 2013 Nielsen Catalina Solutions

AdVantics On Demand ™ with Persons Viewing

Introducing

Table Of ContentsBackground ......................................................3Overview............................................................5Nielsen Single Source Plus ........................6Persons Viewing Methodology .................8Persons Viewing Data Validation .............9NPM Calibration .......................................... 10Usage Recommendations ........................ 11Summary .........................................................12

PAGE 2 Copyright © 2013 Nielsen Catalina Solutions

Nielsen Catalina Solutions Powers Precise, Profitable Marketing

NCS provides the most comprehensive single source view of advertising, helping consumer packaged goods (CPG) marketers, agencies, and media companies understand who is watching their ads and buying their products.

This joint venture between Nielsen and Catalina was established to enable CPG marketers to precisely deliver advertising to the most responsive consumers and measure the sales results, driving return on advertising. “Watch” data from industry-leading Nielsen television panels, cable set-top-box data, and a wide range of media channel partners is integrated with “buy” data from Nielsen Homescan and nearly 60 million shopper households.

Background

Background


AdVantics On Demand™ is a web-based platform for the continuous optimization of national TV advertising using a buyer-based approach.

AdVantics On Demand™ leverages the NCS Single Source Plus database, enabling CPG marketers and media companies to match television program viewing to consumers based on actual retail purchase behavior. All product categories and brands are available, providing unlimited custom target audience segments in addition to pre-built, syndicated segments or proprietary buyer segments.

What is AdVantics On Demand™ ?

Background

Activating television using this purchase behavior-based approach improves media efficiencies by an average of 10% to 15% and increases the

incremental sales lift among exposed buyers by up to 32%.


What is AdVantics On Demand™ ?

In August 2013, Nielsen Catalina Solutions (NCS) introduced persons viewing data in the NCS AdVantics On DemandTM web-based TV Targeting software platform, based on the NCS Single Source Plus sample, the largest and highest-quality consumer packaged goods single source media and shopper database.

The new persons viewing data gives AdVantics On DemandTM subscribers the ability to plan and post national television ad campaigns using “buyergraphics,” as well as purchase behavior-based targets combined with age/gender demographics for the full NCS television viewing panel, including from cable STB homes.

(Note: The previous release included persons viewing for the Nielsen panel only.)

Overview

PAGE 5Copyright © 2013 Nielsen Catalina Solutions

The NCS Single Source Plus database is a composite of multiple media consumption (“watch data”) and purchase behavior (“buy data”). The TV component of the NCS Single Source Plus database is composed of Nielsen People Meter (NPM) panel data, Nielsen Local Metered Market panel data, and set top box tuning data.

The Nielsen People Meter and Local Metered Market panels provide the highest quality and geographically representative respondent level data, at the highest standards in the world. Cable set top boxes provide a high volume of household tuning data for scale, from approximately 2.7 million households as of July 2013. The combination of Nielsen sample quality, representivity, and the addition of large-scale return path set top box (STB) data are essential for buyergraphic targeting.

NCS Single Source Plus

Buy DataWatch Data


The NCS Single Source Plus sample’s quality, scale, and representivity measures are superior to any industry alternative today. Detailed edits on STB tuning data informed by NPM panel viewing enable NCS to offer superior accuracy and calibration for alignment to NPM person ratings—a unique and superior advantage. In both the near term and ongoing future releases of the sample, NCS will continue to improve quality, representivity, and scale by adding gold standard Nielsen-metered homes, such as Nielsen “CodeReader” metered households, and through additional sources of cable STB data.

The purchase behavior information in the NCS Single Source Plus database is primarily shopper data supplied by Catalina Marketing, augmented by Nielsen Homescan data for all outlet purchase behavior insights. The shopping data is from nearly 60 million households from 26 major grocery chains in the U.S. The media data and shopper data are linked at the individual household level anonymously using a blind name and address match by a third party to ensure a pure, single-source watch and buy data set. As of July 2013, the resultant respondent-level database has approximately 650,000 households from which Nielsen Catalina Solutions measures what these households watch on television and what they buy in grocery stores.


Persons ViewingMethodology

With cable set top box and local metered market data, individual persons viewing records are not measured directly. Only household TV tuning records are available from set top boxes. To enable age/gender viewership reporting for set top box households, the Nielsen Measurement Science group developed a persons viewing imputation model approach.

For this method, each tuning event measured by the set meter or the set top box is assigned to a person or multiple persons within the household. The tuning event can also have “no viewers assigned” within the household. The specific persons viewing group assigned to a tuning event is based on a viewing probability. The viewing probability calculation takes a number of characteristics into account, including the following: household size, number of digital sets, time of day, programming/genre, and age and gender of all of the household members. The persons viewing probability levels are based on persons probability occurrence levels of the NPM panel. The household characteristics, including age and gender of each household member for the Nielsen Metered Market households, are self-reported; for the cable set top box households, these are provided by a third party during the household matching process.

Advanced modeling uses set top box (STB) data edited based on NPM Panels

Total persons viewing levels are adjusted by On/Off modeling


Persons Viewing Data Validation

The validation approach was composed of 3 major components: (1) validate the model accuracy, (2) perform viewing profile comparisons, and (3) validate the implementation.

For the model accuracy test, persons data was imputed for NPM households with known metered persons viewing data. The viewing minutes from the metered data were compared to the viewing from the imputed data. An overall rating comparison metric was used to assess model accuracy across various demographic breaks.

Of the demographic breaks tested, 92% showed no significant difference when comparing the actual persons

rating for the demo segment with the modeled persons rating.

92%

Multiple viewing profile analyses were performed, including evaluations of demographic profiles for the following: dayparts, genres and networks, average number of programs/networks viewed per person, and average percent of each network viewed per person. The validation showed that the overall profile of imputed persons viewing distribution correlates well to the viewing profiles of the metered persons viewing distribution, with some exceptions. The most significant difference showed that the imputation process does not report the extreme profile skews that can exist in the metered data. For example, networks and program genres, such as General Documentary, skew predominantly female in the metered data. While the imputed data will still show a greater concentration of female viewers to these networks and genres, the concentration will be to a lesser degree. This limitation to forecast viewing extremes will also be seen in special programming events. Major events, such as the Superbowl or Academy Awards, may show underrepresentation with the imputed persons viewing methodology. Another variance between the metered and imputed data showed that the number of networks viewed by individual persons was roughly 12% higher for the imputed data than the metered data, while the number of programs viewed was about the same. This impact was consistent over all of the networks.

To validate the software implementation, the software was run through quality assurance test cases, which confirmed that the methodology was implemented as designed, and calibrated outputs passed quality thresholds. In addition, supplemental validations were performed to confirm correct implementation of weighting and persons rating calculation within the AdVantics On DemandTM application. These tests were performed in addition to standard software development application testing.


The cable set top box and local Metered Market data are combined with the currency NPM panel data to provide the necessary scale for the NCS Single Source Plus sample. The resultant sample composition has some differences to the NPM panel. Many steps have been taken to ensure quality and accuracy of the results generated from the NCS Single Source Plus sample. These include: set on/off modeling, sample unification, sample weighting to match the NPM approach, and persons viewing imputation. Even with all of the quality processes in place, the NCS sample will yield slightly different results when compared to the currency NPM sample. To compensate for the differences, the AdVantics On DemandTM reporting application has implemented an NPM calibration process. This process is unique to NCS set top box viewing reporting applications.

The NPM calibration process is a report run time calculation that compares, row by row of output, the base viewing metrics from the NCS Single Source Plus sample to the same metric from the NPM sample. The proportionate difference between the NPM and NCS samples can be applied to all buyergraphic targets using the same base of data. This calibration process offsets biases that may be the result of intrinsic sample differences.

Note: all persons viewing imputation validation analyses were executed using raw viewing data prior to the NPM calibration in the system.

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NPMCalibration


Based on the outcome of the validation analyses, Nielsen Catalina Solutions has released persons viewing data from the full NCS TV Single Source sample in AdVantics On DemandTM, with usage caveats as follows. For persons viewing analyses including cable set top box households, only larger age/gender demographic breaks should be used. Examples of acceptable age breaks are Persons, Females and Males of age ranges: 18-34, 35-54, and 55+. Other broad age ranges are also acceptable. In addition, these breaks may be combined or broadened (e.g., 18-49, 25-54, 18+, etc.). Analyses of under-18 viewing, 2-17, should not be segmented by gender. Note that the application does not prevent the use of more granular demo breaks, so care should be taken to follow the guidance provided herein.

Race and ethnicity breaks were tested, and the validation shows that the imputation process can accurately ascribe persons viewing for these demographics, but the use of third party data to define specific households by race and ethnicity requires additional validation. Third party-provided household demographic attributes are run through quality checks and edits to ensure the household size and demos are accurate. As a result, race and ethnicity demographic breaks will not be released for cable STB households in AdVantics On DemandTM at this time.

Please contact your Nielsen Catalina Solutions representative if you have a question regarding a specific demographic break to be reported.

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UsageRecommendations

Note: Expansions and combinations of the above are also recommended.


Summary

AdVantics On DemandTM with the NCS Single Source Plus sample now provides the industry’s only large scale “buyergraphic” TV targeting data application with demographic age and gender reporting. This new capability uses Nielsen quality panel data, modeling, and imputation techniques to enhance the full NCS dataset so that it provides valuable insights for our subscribers, when used appropriately. Additionally, NCS is working closely with Nielsen Measurement Science to continue to improve the overall persons viewing imputation for cable set top box tuning methodologies and ongoing validation process to provide the highest-quality, single source TV media and CPG shopper data set in the industry.

The NCS Advantage

Industry-standard Nielsen datasets

Only all-outlet adjustment via

Nielsen Homescan®

Largest TV single source

for CPG

UPC-level analysis on 1.2 millionunique UPCs

Over 34 million transactions with $133 billion in U.S.

CPG spending daily

Copyright © 2013 Nielsen Catalina Solutions. All rights reserved. Nielsen is a trademark or registered trademark of CZT/ACN Trademarks, L.L.C. Catalina is a trademark or registered trademark of Catalina Marketing Corporation.

Other product and service names are trademarks or registered trademarks of their respective companies. 10/13

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