1. 1 Reconnecting With the Empowered Consumer “The View: His & Her Body Test”

2. 2 Today’s Empowered Consumer More choice More convenience More control

3. 3 Network TV Costs Climb While Ratings Decline Source: Ratings - Universal McCann: Nielsen Media Research, NTI by season 4-Net Average Primetime ratings; CPMs - CMR Industry costs (non-J&J) W1849 CPMs W 1849 Avg. 4-Net Prime Ratings

4. 4 J&J Third Largest Buyer of Network TV $1,000.3MM in U.S. Adspend (rank #8) $772MM in U.S. TV spend (rank #6) $504MM in U.S. Network TV spend (rank #3) Source: Taylor, Nelson Sofres CMR, Jan-Dec 2002

5. 5 Strategies to Recapture Consumer Attention Multimedia sponsorships In-Program Integration/Product Placement Original Program Production/Ownership Shift Spending to Alternate Channels Integrated, Interactive Sponsorships

6. 6 “The View: His & Her Body Test” Innovation Objectives: Objective: – Increase audience engagement with program content and advertising Strategy: – Leverage media investment and relationships with multimedia suppliers – Create new forms of TV programming that embrace interactivity and blend brand message into program content Hypothesis: – Interactive TV programming increases consumer involvement and response to advertising

7. 7 Roll Tape

8. 8 Results: Using Online to Drive Offline Impact Day-after survey of 1,000 passive viewers and 1,000 interactive participants Results showed that Interactors: – Stayed longer with the program – Skipped fewer commercials – Were more involved with our advertising Results

9. 9 Interactors Stayed Longer with the Program Results Q: How much of 'The View' His and Her Body Test on television did you watch?

10. 10 Interactors Skipped Fewer Commercials Q: Compared to your normal TV viewing, did you get up or channel surf more, less or the same during commercial breaks during the broadcast? Results

11. 11 Interactors Were More Involved With Our Advertising Q: Please use the table below to indicate how much you agree or disagree with each of the following statements about the broadcast. Top 2 box (Strongly Agree/Agree) Results

12. 12 The View: “His & Her Body Test” Innovation Objectives: Objective: Achieved – Increase audience engagement with program content and advertising Strategy: Executed – Leverage media investment and relationships with multimedia suppliers – Create new forms of TV programming that embrace interactivity and blend brand message into program content Hypothesis: Proven – Interactive TV programming increases consumer involvement and response to advertising

13. 13 Next Steps: Two eTV events in 2004: – Drive increased interactive usage – Improve on-air/online integration – Improve online creative – Investigate other emerging channels Results

14. 14 Back Pocket

15. 15 Usage Metrics 4.07 million viewers Age 18+ to the broadcast (source: Nielsen Media Research) 54,868 unique viewers who made use of interactive applications – Equals 1.3% of the total adult viewing audience Unique Users Gross # of Interactions Interactions Per User Synchronous PC39,396n.a. Interactive TV5,68611,4512.01 Cellular Text Messaging 9,78618,1931.86