Confidential & Proprietary Copyright © 2009 The Nielsen Company The World of Television and Internet Convergence Los Angeles Media and Marketing Research Council Chris Gregory, Program Manager February 26, 2009

Confidential & Proprietary Copyright © 2009 The Nielsen Company Agenda Topics TV/Internet Sources Cross-Platform Analyses Data Highlights – Election Day – Super Bowl – Cause/Effect – Simultaneous – Video Consumption

Confidential & Proprietary Copyright © 2009 The Nielsen Company TV/Internet Measurement Were answering a variety of questions: Are TV and Internet usage complementary? How does the interaction vary by demo/market break/daypart/genre? How does online streaming impact linear TV viewing? What are the causes and effects of advertising and promotions on these platforms? Does TV promotion drive people to a Website? Does online promotion drive people to watch a TV network/show? What is my networks reach across platform? Can Internet expand reach on top of a base TV buy? What is the relationship between people who visit my website and view my network/network airing my advertising?

Confidential & Proprietary Copyright © 2009 The Nielsen Company Nielsen Cross-Platform Tools TV/Internet Data Fusion – (MRI fusion available and Mobile Internet fusion on the way) TV/Internet Convergence Research Panel NPOWER, Excel Tables, Custom Quarterly 3-Screen Report

Confidential & Proprietary Copyright © 2009 The Nielsen Company TV/Internet Data Fusion TV data from NPM ~30,000 persons 2+ reporting ~22,000 persons with online access at home Internet data from Nielsen Onlines NetView panel ~ 23,000 persons aged 2+ metered home Internet use ~ 4,000 persons metered Internet use at work Supplementary information from Nielsen data ~ 40,000 persons self-reporting Internet and other media use, products and services TV-NPM Respondent Level Data Fusion Using Common Demo Variables Data Fused Database Respondent level TV and Internet Data

Confidential & Proprietary Copyright © 2009 The Nielsen Company 700 Forced Turnover Homes180 Newly Installed Homes120 Retired Hisp Homes TV/Internet Convergence Panel Cross-Platform - A 1000 home Cross-Platform panel comprised of: designed to provide single- source insights into TV and Internet consumption

Confidential & Proprietary Copyright © 2009 The Nielsen Company TV/Internet Convergence Panel Collection Technology Illustration

Confidential & Proprietary Copyright © 2009 The Nielsen Company Unique Benefits of the Convergence Panel Opportunity to observe simultaneous usage of TV and Internet Ability to measure Cause and Effect Gain additional insights with customized on-line surveys ?

Confidential & Proprietary Copyright © 2009 The Nielsen Company Convergence Research Panel How much simultaneous/concurrent usage exists? My network and website Same genre of content Unrelated

Confidential & Proprietary Copyright © 2009 The Nielsen Company Convergence Panel Coverage Personal Internet usage on PCs owned by the household (not work) Multiple PCs measured per HH PC-based, no Macs

Confidential & Proprietary Copyright © 2009 The Nielsen Company Data Fusion / Convergence Panel

Confidential & Proprietary Copyright © 2009 The Nielsen Company Cross-Platform Interaction

Confidential & Proprietary Copyright © 2009 The Nielsen Company Cross-Platform usage a plus, not a minus This is not a zero sum game – Each platform presents unique benefits, strengths, advantages – User consumption of these platforms is not mutually-exclusive - Relevant information - Context - Incredible depth - Clarity and presentation - Programming - Usability - Portability - Immediacy - Communications

Confidential & Proprietary Copyright © 2009 The Nielsen Company The Expanded Day Three Screen Measurement – The Expanded Day Because of their unique strengths, these platforms complement each other. This complementary nature results in simultaneous usage. Simultaneous usage translates into an expanded clock. The expanded clock presents marketers with more opportunities to convey their message. Complementary platforms, simultaneous usage, and expanded clocks represent new research questions for the industry.

Confidential & Proprietary Copyright © 2009 The Nielsen Company Heavy Internet users are heavy TV viewers Source: TV/Internet Convergence Research Panel, November Weighting not applied TV Usage by Internet Quintile

Confidential & Proprietary Copyright © 2009 The Nielsen Company Source: TV/Internet Convergence Research Panel, November Weighting not applied Heavy TV viewers are heavy Internet users Internet Usage by TV Quintile

Confidential & Proprietary Copyright © 2009 The Nielsen Company Election Day Insights

Confidential & Proprietary Copyright © 2009 The Nielsen Company TV/Internet Only, Only, Both Total Election Day Adult Reach = Mill 5.2 Mill134.8 Mill 23.6 Mill TV = Mill Internet = 28.8 Mill Source: TV/Internet Custom Data Fusion

Confidential & Proprietary Copyright © 2009 The Nielsen Company TV/Internet by Age Group P consistent across TV and Internet P greater share with Internet than with TV Source: TV/Internet Custom Data Fusion

Confidential & Proprietary Copyright © 2009 The Nielsen Company Only, Only, Both by Age Group Internet Only was the most evenly distributed, with only a slightly younger skew Source: TV/Internet Custom Data Fusion

Confidential & Proprietary Copyright © 2009 The Nielsen Company Super Bowl Highlights

Confidential & Proprietary Copyright © 2009 The Nielsen Company James Harrison sets Super Bowl record for longest interception run…..100 yards!!!

Confidential & Proprietary Copyright © 2009 The Nielsen Company The data highlight slide was removed to prevent wide distribution of preliminary, client-specific data.

Confidential & Proprietary Copyright © 2009 The Nielsen Company Cause & Effect Insights

Confidential & Proprietary Copyright © 2009 The Nielsen Company Does TV Advertising Exposure Drive People to Advertisers Web Site?

Confidential & Proprietary Copyright © 2009 The Nielsen Company Does Promotion Exposure Drive People to Networks Web Site?

Confidential & Proprietary Copyright © 2009 The Nielsen Company Simultaneous Insights

Confidential & Proprietary Copyright © 2009 The Nielsen Company Simultaneous Usage by Demo Overall, 2% of TV viewing and 30% of Internet usage is spent simultaneously Simultaneous users spend 4% of TV and 32% of Internet time simultaneously Source: TV/Internet Convergence Research Panel, December 2008 – Weighting not applied

Confidential & Proprietary Copyright © 2009 The Nielsen Company Top Ten Sites with Highest Simultaneous Reach Yahoo!, Yahoo! Home, Yahoo! Search Google, Google Search Source: TV/Internet Convergence Research Panel, December 2008 – Weighting not applied

Confidential & Proprietary Copyright © 2009 The Nielsen Company Top Ten Networks with Highest Simultaneous Reach Source: TV/Internet Convergence Research Panel, December 2008 – Weighting not applied

Confidential & Proprietary Copyright © 2009 The Nielsen Company Spanish Dominant Insights

Confidential & Proprietary Copyright © 2009 The Nielsen Company MySpace and Facebook by Language Class Source: TV/Internet Convergence Research Panel, December 2008 Note: Sample under 50 panelists for Spanish Dominant and for Facebook English/Spanish Equally

Confidential & Proprietary Copyright © 2009 The Nielsen Company Video Consumption Insights

Confidential & Proprietary Copyright © 2009 The Nielsen Company Streaming Users Source: TV/Internet Convergence Research Panel, December 2008 Slightly more than 1/2 of the sample had some streaming activity Less than 1/3 for Spanish Dominants

Confidential & Proprietary Copyright © 2009 The Nielsen Company TV Usage Source: TV/Internet Convergence Research Panel, December 2008

Confidential & Proprietary Copyright © 2009 The Nielsen Company Streaming Usage by Language Class Source: TV/Internet Convergence Research Panel, December 2008 Note: Sample under 50 panelists for Spanish Dominant and English/Spanish Equally Spanish speakers spend more time streaming

Confidential & Proprietary Copyright © 2009 The Nielsen Company Source: TV/Internet Convergence Research Panel, May 2008 – Weighting not applied Total Teens Heavy Teen Streamers 113 Minutes of Video/Day 152 Minutes of Video/Day Heavy Teen Streamers- 20% of consumption is non-live TV Time Spent with Video

Confidential & Proprietary Copyright © 2009 The Nielsen Company Total Men Heavy M18-54 Streamers 200 Minutes of Video/Day 202 Minutes of Video/Day Heavy M18-54 Streamers- 11% of consumption is non-live TV Time Spent with Video Source: TV/Internet Convergence Research Panel, May 2008 – Weighting not applied

Confidential & Proprietary Copyright © 2009 The Nielsen Company Total W18-54 Heavy W18-54 Streamers 215 Minutes of Video/Day 197 Minutes of Video/Day Heavy W18-54 Streamers- 14% of consumption is non-live TV Time Spent with Video Source: TV/Internet Convergence Research Panel, May 2008 – Weighting not applied

Confidential & Proprietary Copyright © 2009 The Nielsen Company Questions?

Confidential & Proprietary Copyright © 2009 The Nielsen Company Thank you!