April 20, 2006

Media Measurement

Larry Patterson

Nielsen Media Research

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Media Measurement Topics

• Meter Measurement Strategy– Current Metering Technology

– Future Metering Strategies

• Timeshifting Status and Next Steps

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Measurement Principles

• Follow the video

• TV measurement technologies must be adaptable to different environments

• No ‘one size fits all’ measurement solutions

– Toolbox approach

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Consumer Landscape

• “Gadgets" have grown up and matured as real entertainment devices - not toys

• New devices are digital and are often based upon computing technologies

• Focus is on connectivity, integration, and open standards—all areas normally associated with IT systems, not consumer products

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Future Media Measurement

• Current planning and work includes four internal teams focused on:– Expanded Electronic Measurement

– Out of Home

– Internet

– Engagement

• Comprehensive plan coming in June

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In Home Measurement

Increasing complexity

- Accuracy is paramount- Must detect/report ‘source’ data- Need to reduce field installation complexity/time- Must measure all timeshifting activity- Must be adaptable to future media technology

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• Mark II Platform

– 25+ years old - channel centric • 10,000 different TV models

• 2,000 different VCR models

• 250 cable & satellite STB models

• Spans simple TVs… to HDTVs

– 90,000 TVs still measured with Mark-II

– Being phased out

Mark II

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A/P Meter Platform

• A/P is a content based measurement system utilizing embedded codes and time stamped signatures to assign tuning credit.

• Active codes & Passive signatures– Multiple engines for redundancy

– Device agnostic approach to data collection

– Direct connection to TV audio- no noise

• Will measure nearly all popular digital (& analog) in-home TV devices

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A/P Meter Platform

• A/P platform provides the technical foundation for meter-based data collection in the future– Expanding local market measurement

– Out of home

• A combination of tools will be used to measure other devices– Personal media

– Internet viewing

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• Mailable Meter– Small, battery powered set top device

– Mailed to the home like the diary; one per set

– Collects audio signatures for duration of measurement

– Mailed back to Nielsen, like the diary

– Signatures extracted and matched for tuning credit

• Audience collected by a simplified diary

• Currently in Engineering field test in Florida

Future Use of A/P

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• Plug-in ‘Mailable Meter’ – Adding AC power expands functionality

• We added a People Meter

– Plugs into wall power, but not connected to the TV

– Collects codes and signatures throughout the day

– Nightly “data dump” to Nielsen via in-home wireless to phone line or cellular modem

• Currently in Engineering field test in Florida

Future Use of A/P

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Future Media Measurement

• The A/P platform can measure virtually every digital media device found in homes today– Extensible; Built on a flexible, software driven platform

• Four internal teams focused on the media landscape– Expanded electronic measurement

– OOH

– Internet

– Engagement

• Overall measurement plan coming in June

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Timeshifting Status and Next Steps

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Timeshifting Status and Next Steps

• A/P and DVR Household Status

• VOD Plan and Additional Timeshifting Measurement

• Timeshifting Data Analysis

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A/P and DVR Household Status

• Penetration of DVR and A/P homes continues to grow

SampleHousehold

Type

Installed Sample Counts

Set Meter DVR 1350

Set Meter Non-DVR 1061

LPM DVR 363

LPM Non-DVR 428

NPM DVR 277

NPM Non-DVR 363

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VOD and Other Timeshifting Measurement Plans

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Timeshifting Measurement Expands

• Modifications to A/P will enable collection and reporting of additional timeshifting data starting in Q/3/2006:– VOD

– “Start Over”

– DVD Recorders

– Network DVRs

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Timeshifting Measurement Expands

• Requirements for reporting additional timeshifted tuning and viewing:– A/P Encoding

• For non-DVR timeshifting, content MUST be encoded in order to be credited

• Only encoded content tuned/viewed in A/P households will be credited

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VOD Measurement Plan

Phase One — Recently Telecast Content

• Programming with original air date and time– A/P encoded by station or cable network– Available via On Demand channel after original telecast– VOD tuning will be included in playback ratings for content viewed

with seven days– VOD playback credit combined with DVR playback credit

• Example: Local News

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Crediting VOD – Recently Telecast

Time WAAA VOD Channel

6:00 PM – 6:30 PM WAAA Evening News

6:30 PM – 11:00 PM WAAA Evening News

11:00 PM – 11:30 PM WAAA Nightly News

11:30 PM – 5:00 AM WAAA Nightly News

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VOD Measurement Plan

Phase Two — Recently Telecast Content

• Breaks out “DVR only” tuning of recent programming from all timeshifted tuning

• Not initially segregated in local systems

Phase Three — Other VOD Content

• Measurement of SVOD and other VOD content

• Primarily a national initiative at this point

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Timeshifting Data Analysis

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Timeshifting Data Analysis Update

• Metered sample characteristics and a little data

• Diary sample characteristics and a little data

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DVR Sample Characteristics: November 2005

Unweighted %2006 National

UETotal 100.0 100.0Cable/ADS

Cable (b) 58.5 65.9Cable and/or ADS (b) 99.6 85.8No Cable/No ADS (b) 0.4 14.2ADS (b) 43.3 20.8

Household Size1-2 46.7 57.73-4 42.6 31.25+ 10.7 11.1

Presence of Non AdultsNone <18 52.2 64.5Any <18 47.8 35.5

Race of HeadBlack 11.1 12.1Hispanic

Hispanic 6.4 10.2Age of Head

<35 37.9 21.035-54 43.5 41.755+ 18.6 37.4

Average Day In-tab 807

Metered Sample Characteristic ReportTotal Metered Market Installed DVR Homes

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Playback Statistics – Nov 2005

• 99.6% of HUT minutes came from “live” tuning– .4% of HUT minutes derived from DVR playback

• 68% of playback occurred on the same day that the content was recorded (Same Day Playback)– 79% of playback occurred within 24 hours of the time that the

content was recorded

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Same Day Playback Trend

Majority of playback occurs within the same meter collection day.

Same Day Playback % By Measurement Period

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05

Same Day Playback Remaining Playback

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Playback Statistics – Nov 2005

• Broadcast sources derived larger share of playback credit than cable sources

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Meter Tuning by Source: Nov 2005

Playback crediting slightly favors major broadcast sources over cable.

Major Broadcast: ABC, NBC, CBS, FOX, WB, UPN, TEL, UNI

Distribution of Tuning by SourceNovember 2005

Live Live Plus Index (Live Plus To Live)

Major Broadcast 35.4% 40.2% 113.6

Other Broadcast 1.9% 1.7% 89.5

Pay Cable 5.7% 5.1% 89.5

Ad-Supported Cable 57.1% 52.9% 92.6

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Meter Daypart % - Live vs Live PlusDaypart Share Viewing

DVR HouseholdsNovember 2005

0%

5%

10%

15%

20%

25%

30%

Live 11% 25% 24% 25% 15%

Live Plus 7 Day 10% 25% 23% 28% 14%

Morning DaytimeEarly

FringePrimetime Late Night

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Timeshifting Data Analysis Update

• Timeshifting Data Observations from the 8 Day Diary

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Diary Sample Characteristics: Nov 2005Diary Sample Characteristics

Total Diary DVR HomesNovember 2005

  Intab Unweighted % 2005 National UE

Total 6353 100 100.0

Presence of Non Adults

None <18 3547 55.8 64.5

Any <18 2806 44.1 35.5

Race of Head

Black 522 8.2 12.1

Asian 121 1.9 3.8

Hispanic

Hispanic 487 7.7 10.2

Age of Head

<35 1940 30.5 21.0

35-54 2690 42.3 41.7

55+ 1723 27.1 37.3

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Diary Playback Data – Feb 2006

• 9% of the mailed households received 8 day diaries

• 5.7% of the in-tab households were 8 day diary households with 1+ quarter hour of timeshifted viewing– Cutback to set metered markets: 6.5% of diary in-tabs

• 80% of playback credit captured during diarykeeping week occurs within 24 hours of original telecast

• 99.6% of credited quarter hours came from Live tuning– .4% of credited quarter hours came from playback entries

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Local Timeshifting Summary

• Sample penetration continues to grow

• Impact on estimates of timeshifting is increasing– Most noticeable during prime time

• 8 day diary refinements scheduled for testing in May

• LPM sample timeshifting data will be added as the sample size grows