1 Television Truths Television Bureau of Canada June 2013

2 What is television? What is TV’s role?

3 What is Television? Content, not a device Story telling An emotional experience Entertainment Relaxation

4 What is TV’s role? Top of the purchase funnel Awareness building Creating an emotional connection Creating familiarity, positive opinion & consideration Creating desire & intent Driving to action To build brands!

5 Myth Busting The Internet is killing TV? PVRs are killing TV? TV ads are no longer effective?

6 Myth Busting The Internet is killing TV? The truth about who’s watching; what, and how much The truth how about ad revenue

7 Audience Measurement Portable People Meters (PPM) – Electronic measurement passively records viewing – National & majority of markets by population Personal Diaries – Reported viewing All of the following audience data is based on national PPM measurement BBM Canada

8 Who’s watching?

9 Who’s watching Weekly Reach across all demos is very high Time spent across all demos is substantial & remarkably similar Variances in time spent depend on life stage and daily obligations Young people are watching TV and lots of it Everyone is watching TV

10 Who’s watching Average Weekly Reach Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

11 Who’s watching Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

12 Who’s watching Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

13 Who’s watching Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

14 Who’s watching Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

15 Gender Average Weekly Reach Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

16 Gender Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

17 Language Average Weekly Reach Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

18 Language Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

19 Education Average Weekly Reach Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

20 Education Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

21 Household Income Average Weekly Reach Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

22 Household Income Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

23 Viewing Trends Stable viewing trends PPM capturing “lost” viewing Online increasing viewing Consumption Patterns

24 Kids are watching Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV/Total TV PPM; Total Canada; M-Su 2a-2a STBPPM

25 Teens are watching Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV/Total TV PPM; Total Canada; M-Su 2a-2a STBPPM

26 Adults are watching Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV/Total TV PPM; Total Canada; M-Su 2a-2a STBPPM

27 So are Young Adults Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV/Total TV PPM; Total Canada; M-Su 2a-2a STBPPM

28 So are Young Adults Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV/Total TV PPM; Total Canada; M-Su 2a-2a STBPPM

29 As are the traditional demos Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV/Total TV PPM; Total Canada; M-Su 2a-2a STBPPM

30 As are the traditional demos Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV/Total TV PPM; Total Canada; M-Su 2a-2a STBPPM

31 Adults 55+ are watching a lot! Average Weekly Per Capita Hours Source: BBM Canada InfoSys+ TV PPM; Total TV/Total TV PPM; Total Canada; M-Su 2a-2a STBPPM

32 Online increases viewing Online Video – Weekly Access Source: Media Technology Monitor Fall 2012; Total Canada

33 Online increases viewing Online Video – Average Weekly Per Capita Hours Source: Media Technology Monitor Fall 2012; Total Canada Adults 18-34

34 Online increases viewing Online Video – Weekly Access Source: Media Technology Monitor Fall 2012; Total Canada

35 Online increases viewing Online Video – Average Weekly Per Capita Hours Source: Media Technology Monitor Fall 2012; Total Canada Adults 25-54

36 What, when and how are we watching? Tuned to Canadian Carriers Prime is still the time Digital is the method The cord is uncut Consumption Patterns

37 What are we watching? Share of Viewing Source: BBM Canada InfoSys+ TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

38 Prime delivers the audience Viewing Patterns – AMA (000) Weekdays Source: BBM Canada InfoSys+ TV PPM; Total Canada 2+; M-Fr 2a-2a; 2011/12 Broadcast Year; AMA = Average Minute Audience 14,125.2

39 Prime delivers the audience Viewing Patterns – AMA (000) Weekends Source: BBM Canada InfoSys+ TV PPM; Total Canada 2+; Sa-Su 2a-2a; 2011/12 Broadcast Year; AMA = Average Minute Audience 13,184.5

40 Digital is the delivery system Reception Type – Linear TV Source: BBM Canada 2012/2013 Universe Estimates; BBM Canada Sep 2012 Technology Trends

41 The “Cord” is still intact Total TV Subscriptions (000) Source: Media Stats 2012; Digital Cable, DTH, Telco +1.4%+2.2%+2.7%+0.9%+0.1%Subscriber Growth:

42 Advertising Investment Ad revenue has grown $3.9 billion over the last ten years At the same time as online revenue has sky rocketed, revenue for most major media has been stable or also grown While TV revenue grew by $1 billion, most of the growth went to online allowing it to gain share from the other media Source: TVB Net Advertising Volume 2011 – Major Media OOH - Nielsen; Magazines - Magazines Canada; Daily & Community Newspapers - Newspapers Canada; Internet - IAB; TV & Radio - CRTC Note: The revenue for Outdoor, Magazines, Weeklies, Radio, Dailies & Television do not include the revenue generated by their online content/websites; that revenue is included in the Internet figures; Internet figures include revenue derived from Production and Search & Directories Canadian Net Advertising Revenue 10-Year Trends

43 Online has grown the pie Canadian Net Advertising Revenue 10-Year Trend – Millions $ +48.4% Source: TVB Net Advertising Volume 2011 – Major Media OOH - Nielsen; Magazines - Magazines Canada; Daily & Community Newspapers - Newspapers Canada; Internet - IAB; TV & Radio - CRTC Note: The revenue for Outdoor, Magazines, Weeklies, Radio, Dailies & Television do not include the revenue generated by their online content/websites; that revenue is included in the Internet figures; Internet figures include revenue derived from Production and Search & Directories

44 Stability for most media Canadian Net Advertising Revenue 10-Year Trend – Millions $ Source: TVB Net Advertising Volume 2011 – Major Media OOH - Nielsen; Magazines - Magazines Canada; Daily & Community Newspapers - Newspapers Canada; Internet - IAB; TV & Radio - CRTC Note: The revenue for Outdoor, Magazines, Weeklies, Radio, Dailies & Television do not include the revenue generated by their online content/websites; that revenue is included in the Internet figures; Internet figures include revenue derived from Production and Search & Directories

45 When the pie grows, share changes Canadian Net Advertising Revenue 10-Year Trend – Share Source: TVB Net Advertising Volume 2011 – Major Media OOH - Nielsen; Magazines - Magazines Canada; Daily & Community Newspapers - Newspapers Canada; Internet - IAB; TV & Radio - CRTC Note: The revenue for Outdoor, Magazines, Weeklies, Radio, Dailies & Television do not include the revenue generated by their online content/websites; that revenue is included in the Internet figures; Internet figures include revenue derived from Production and Search & Directories

46 Are all ads the same? Television versus Internet – 2011 $Millions Source: TVB Net Advertising Volume 2011 TV Advertising = Commercial Airtime Online Advertising = Advertising Display or Video $3,552 $2,593

47 More commercials going to air Clearance Trends Source: TVB Telecaster Services +11%+10% +11%

48 Myth Busting The Internet is killing TV? Everyone is still watching TV, even young adults Viewing is substantial, strong and steady Online video consumption is adding to time spent with TV content Prime continues to deliver the audience 94% of the population is still connected via the “cord” and that number is increasing, not decreasing Investment in TV airtime and creative is growing as advertisers continue to recognize the value of TV content

49 Myth Busting The Internet is killing TV? PVRs are killing TV? The truth about PVR penetration The truth about PVR usage

50 PVRs growing fast TV Household Penetration Rate % Source: BBM Canada

51 Live TV is the preference Share by Viewing Mode - Total Canada Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

52 Even in PVR HH’s, live TV is the norm Share by Viewing Mode – PVR Households Source: BBM Canada InfoSys+ TV PPM; Total TV PPM; Total Canada 2+; M-Su 2a-2a; 2011/12 Broadcast Year

53 Commercials continue to break through Skipping Mitigated Source: BBM Analytics OmniVu - September 2012

54 Even when PVR owners don’t stop Skipping Mitigated Source: BBM Analytics OmniVu - September 2012

55 Myth Busting The Internet is killing TV? PVRs are killing TV? PVRs  commercial avoidance Commercials can only be skipped in playback which represents just 5% of viewing Even in playback commercials are breaking through 59% of A18-34 will stop fast forwarding to watch commercials of interest 70% of A18-34 are aware of the advertisers in the commercials they are fast forwarding even if they don’t stop Source: BBM Analytics OmniVu - September 2012

56 Myth Busting The Internet is killing TV? PVRs are killing TV? TV ads are no longer effective? The truth about ad engagement The truth about consumer perceptions of advertising

57 Biometric Proof Conscious Associative Non Conscious Using Neuroscience to measure advertising effectiveness Emotions are the primary driver of human behaviour 95% of brain processing (including emotional responses) occurs below conscious awareness Biometric research tracks the physiological responses traveling from the emotional centres of the brain to measure pure engagement without bias Source: Innerscope Research

58 Biometric Proof Conscious Associative Non Conscious Biometric Study In 2010 a ground breaking Canadian study measured the brains response to advertising delivered in a variety of media with the following results: Television advertising followed by online video was most effective in creating emotional engagement Engagement with TV ads was 1.8x greater than online video, 3.1x greater than radio, 5.6x greater than newspaper, and many times greater than static online display Source: Innerscope Research

59 Consumer Perceptions The survey says… In a series of telephone interviews with 1,000 Canadians aged 18 +, television advertising received the highest marks in terms of: Noticeability Receptivity Attentiveness Effectiveness Source: BBM Analytics OmniVu; Nationally representative random sample weighted to population

60 Ad Influence – Adults Source: BBM Analytics OmniVu; March 2013; Nationally representative random sample weighted to population TV

61 Ad Receptivity – Adults Source: BBM Analytics OmniVu; June 2012; Nationally representative random sample weighted to population TV

62 Myth Busting The Internet is killing TV? PVRs are killing TV? TV ads are no longer effective? Measured biometrically, people are far more emotionally engaged by TV advertising than any other form People consistently report that TV advertising out performs any other advertising to which they are exposed

63 TV Myths Busted - Summary Everyone is still watching TV, even young adults Viewing is substantial, strong and steady Online video consumption is adding to time spent with TV content Prime continues to deliver the audience 94% of the population is still connected via the “cord” and that number is increasing, not decreasing Investment in TV airtime and creative is growing as advertisers continue to recognize the value of TV content PVRs  commercial avoidance Commercials can only be skipped in playback which represents just 5% of viewing Even in playback commercials are breaking through 59% of A18-34 will stop fast forwarding to watch commercials of interest 70% of A18-34 are aware of the advertisers in the commercials they are fast forwarding even if they don’t stop Measured biometrically, people are far more emotionally engaged by TV advertising than any other form People consistently report that TV advertising out performs any other advertising to which they are exposed: People report TV ads are more noticeable People are more receptive to TV ads People pay more attention to TV ads People feel that TV ads are more powerful, influential and persuasive

64 What about the other screens Four Screen World Source: Media Technology Monitor Fall 2012; Total Canada

65 Multi Platform Four Screen World Source: Media Technology Monitor Fall 2012; Total Canada

66 Video Consumption by Device Among those who use device and consume media type 97% Watch TV Shows Source: Ipsos Mobil-ology Wave 4 (Fall 2012); Based on people who own and use either a SmartPhone, Tablet or e-Reader (n=2,009)

67 Video Consumption by Device Among those who use device and consume media type 97% Watch TV Shows (n=2,000) 96% Watch Movies (n=2,000) 89% Watch the News (n=2,000) Source: Ipsos Mobil-ology Wave 4 (Fall 2012) ; Based on people who own and use either a SmartPhone, Tablet or e-Reader TVPCLaptopNetbookSmartphoneTablete-Reader

68 Source: Ipsos Mobil-ology Wave 4 (Fall 2012) Feature & Function Usage - Adult Smartphone Users Overview – Among device users

69 Feature & Function Usage - Teen Smartphone Users Overview – Among device users Source: Ipsos Mobil-ology Wave 4 (Fall 2012)

70 Feature & Function Usage - Adult Tablet Users Overview – Among device users Source: Ipsos Mobil-ology Wave 4 (Fall 2012)

71 For more information please visit tvb.ca.