TV EVERYWHERE /OTT CTVE
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1 TV EVERYWHERE /OTT CTVE CTV Media, Inc 2017
2 THE WAY YOU WATCH TV IS CHANGING Live Linear TV Set Top Box VOD (in your living room) TV Everywhere Mobile Laptop Tablet OTT : Roku Amazon Fire TV Chromecast, Apple TV, Xbox 2 2
3 THE VIDEO ECOSYSTEM : HOW YOU ACCESS CONTENT MVPDs vmvpds Streaming Devices Smart TVs Game Consoles Streaming Services By 2021, there will be 114mm connected TV users in the US. 3
4 74% OF ALL HHS STILL SUBSCRIBE TO CABLE, SATELLITE OR TELCO 26% OF ALL HHS ARE CONSIDERED CORD CUTTERS OR CORD NEVERS Multi-Channel HHS (MVPD Multi Video Program Distribution*) 74% of all HH s Subscribe to Cable, Satellite or Telco 3% 11% OTA HHs (Over-The-Air*) 12% of all HH s are OTA HHs Households that receive broadcast network signals using an antennae. These HH s also access OTT content through vmvpd s 12% vmvpd-only HHs (Subscription Aggregator) 3% of all HH s subscribe to vmvpd s Sling TV, Playstation Vue or DirecTV Now that deliver aggregated live, linear networks and on-demand content similar to traditional multi-channel offering for a monthly subscription 74% OTT-only HHs (Individual Paid Subscription) 11% of all HH s are OTT-Only HHs which means Internet delivery using OTT devices such as Smart TV & Game Console ie: Netflix, YouTube * OTA, vmvpd s and OTT are considered cord cutters & cord nevers. Source: 2017 S&P Global Market Intelligence, Kagan 4 4
5 TV EVERYWHERE/OTT VIEWING BY DEVICE DESKTOP / LAPTOP 27% 20% STB VOD* +34% YOY -15% YOY SMART PHONE 16% 2Q17 29% OTT DEVICE +32% YOY +14% YOY 8% TABLET +2% YOY TV Everywhere is authenticated viewing through MPVD app or network app on laptop, smartphone, tablet, Smart TV or OTT device (Roku, Apple TV, Chromecast). Source: Freewheel 2Q17 VMR Report 5
6 WHY A MULTI-SCREEN APPROACH MATTERS ADULTS SPEND THE MOST TIME WATCHING TV WEEKLY HOURS.MINS OF USAGE (IN POPULATION) ADULTS P18-34 P35-49 P50+ TV TV-CONNECTED DEVICES PC SMARTPHONE TABLET 6 6
7 THE NEXT BIG THING IN ADVERTISING IS HERE OTT/TVE viewing combines the power of digital advertising with the premium content of traditional television, creating one of the most compelling environments for viewers to engage with both content and the advertiser s message. DESIREABLE AUDIENCES: OTT allows marketers to reach viewers who are harder to find on traditional TV, including affluent millennials and cord cutters. The median OTT viewer is 23 years younger than TV viewers, and their median household income is nearly $10k higher per year than traditional TV households. ENGAGED VIEWERS: Over one-third of OTT visits are over an hour long and viewers complete 98% of all premium video ads. BRAND LIFT: OTT campaigns produce a greater lift in brand awareness and favorability than desktop and mobile according to a recent Hulu study, demonstrating the engaged OTT viewing environment is more conducive to promoting brands than other digital channels. INCREMENTAL REACH: Advertisers should not be concerned that OTT audiences overlap with people they re reaching through linear buys. In reality, OTT has compensated for a large part of the primetime TV ratings decline, replacing traditional television for many viewers. We found that viewers treat OTT devices just like traditional television they watch a large amount of live streamed content and tune in mostly during the popular, primetime TV hours. Therefore, marketers who only advertise through linear TV spots would miss out on these OTT audiences, who are watching the same content during the same time period, but on a different platform. 7
8 DESIREABLE AUDIENCES OTT delivers the audiences that many advertisers would pay a premium to reach. According to an analysis of Nielsen data, the median OTT viewer is younger and more affluent than the traditional TV viewer. In May 2017, the median age for OTT audiences was 13 years younger than traditional television., and their median household income was almost $10K more per year. Further, our analysis of entertainment networks on FreeWheel showed over 75% of ad view were reached viewers between the ages of 18 to 49. AD VIEW COMPOSITION BY AUDIENCE GROUP, ENTERTAINMENT CONTENT Q OTT vs TRADITIONAL TV, MEDIAN AGE & HOUSEHOLD INCOME MAY 2017, NIELSEN NPOWER 8
9 TVE / VOD AD VIEW INVENTORY Total Volume of Ad Views 27% 73% Syndicated Ad Views by Platform Publisher (Ntwk) Syndicated Publisher Ad Views Share 10% 65% 34% 90% MVPDs Aggregator Long-Tail Direct Programmatic Source: Freewheel 4Q17 9
10 INCREMENTAL REACH Advertisers want their message to target audiences as efficiently as possible. Since OTT devices use the same screen as linear TV, some have raised concerns that OTT viewers may overlap with linear TV audiences. While there is currently no precise way to measure unique reach across devices, a growing body of evidence points to distinct characteristics between OTT and linear TV Viewers. Primetime linear TV ratings have dropped 24% from May 2013 to May Over the same time period, primetime OTT ratings have grown to supplement much of the decline in linear TV. As of May17, 15% of primetime viewing is done on an OTT device. The content viewed on OTT devices is the same content on linear TV. This emphasis that the viewers are highly unlikely to overlap with linear TV viewers. 5-YEAR RATINGS TREND OF ADULTS (18-49) DURING PRIMETIME (7PM-12AM), LINEAR TV & OTT DEVICES NIELSEN NPOWER, MAY 2013 MAY
11 CTV EVERYWHERE Premium FEP Video by Custom Geography On All Devices CTV Everywhere is CTV s customized TV Everywhere (TVE) / Over the Top (OTT) package airing across all cable/satellite providers in your desired DMA(s). Customize geography by trade radius, zip code clusters, county or DMA level Viewers targeted by IP address, not home market log in Create network clusters that line up with your linear TV campaign Commercials are full screen, non-skippable views with no bot traffic Convert TVE IMPs to demo GRPs Campaign IMP reporting by: Network Daypart Device Day Click Through rate Completion Rate Reach & Frequency 11
12 CTV EVERYWHERE Premium FEP Video Network App Partners 12
13 Audience Viewing STB Data 13
14 Audience Finder Spectrum Reach s measurement of 6M HHs combines media consumption data across multiple video platforms with household demographic and behavioral data to enable audience analysis 14
15 Audience Finder Network Report STB Viewing data for: Married Home Owner HH income: $25k-$100k Education: HS-Bachelor The report is based on entire US for April viewing by NETWORK. STATION IN AUDIENCE HRS VIEWED TOTAL HOURS VIEWED PERCENTAGE OF TARGETED AUDIENCE INDEX DIY 1,182,552 3,589,145 17% 146 TWC 2,930,736 9,566,344 45% 135 FOX NEWS 17,384,829 57,243,152 47% 134 BIG TEN 149, ,315 7% 133 AMERICAN HEROES 1,447,249 4,979,587 21% 128 HALLMARK 5,577,168 19,345,332 45% 127 HISTORY 5,316,039 18,593,345 55% 126 GSN 2,352,554 8,243,432 19% 126 SCIENCE 1,557,551 5,485,806 23% 125 FBN 1,038,753 3,716,005 15% 124 MILITARY CHANNEL 172, ,698 5% 124 NAT GEO WILD 1,053,789 3,829,310 22% 122 TV LAND 4,729,740 17,293,714 39% 121 FYI 647,643 2,378,354 19% 120 ANIMAL PLANET 2,949,725 11,129,764 45% 117 FOX SPORTS 1 1,806,583 68,397,731 28% 117 CMT 1,301,480 4,923,399 30% 117 GOLF 2,212,236 8,406,039 25% 116 SEC NETWORK 117, ,034 6% 116 HGTV 8,522, ,378,708 55% 115 DISCOVERY 4,805,410 18,723,187 54%
16 THANK YOU! REBECCA VAN BLYENBURGH Contact us: 1490 Manning Pkwy, Powell, OH 43065LGA Follow us on: facebook.com/ctvmediainc Twitter.com/ctvmedia 16
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