CROSS-MEDIA MEASUREMENT- Where do we go from here?

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1 CROSS-MEDIA MEASUREMENT- Where do we go from here?

2 The Changing Way People Watch Television

3 Engagement with TV/Video is Growing TV/Video Program Viewing Hours Weekly DVD/Blue Ray Streaming 1:21 0:30 n/a 38:08 2:34 39:16 3:12 1:10 0:50 0:11 VOD DVR Live TV 33:43 33:53 +2% (CAGR) Source: Nielsen Cross Platform Report, Q vs. 2011

4 Engagement with TV/Video is Growing 28% Watching More Watching About the Same 55% 17% Watching Less Source: CBS New Technology Survey, December 2013

5 Engagement with TV/Video is Growing Share of TV/Video Program Viewing Hours DVD/Blue Ray Streaming VOD 3% 1:47 1% 1% 7% 2:27 8% 2% 2% 1% DVR Live TV 31:41 88% 30:08 86% Source: Nielsen Cross Platform Report, Q vs. 2011

6 VIEWERS ARE ENGAGING WITH CONTENT IN NEW WAYS THAT RESHAPE THE OVERALL EXPERIENCE Binge Viewing Multitasking Social Engagement 84% enjoy watching multiple episodes of a show in a row 81% often watch older episodes of a show to catch up 56% have used another device while watching to research/ purchase something seen on TV 29% enjoy shows that have an interactive social component 39% get or share ideas about TV with online social networks 20% interact regularly with favorite TV programs on Social Media* Note*: Source: Interact with favorite programs at least once per week Cambridge/Nielsen 2014 Media Demand Landscape

7 ONLINE STREAMING GROWTH SEASON-TO-DATE VS. YEAR AGO All Entertainment-TV Category Streaming CBS Streaming 6,319,366,000 4,808,314, % +40% 693,621, ,433, Source: ComScore; Sept-Oct Both Years; Number of Video Streams

8 CBS ONLINE STREAMING TOP SEASON-TO-DATE HOW I MET YOUR MOTHER BIG BANG THEORY, THE NCIS CRIMINAL MINDS GOOD WIFE, THE ELEMENTARY SURVIVOR: BLOOD VS WATER MENTALIST, THE NCIS: LOS ANGELES HOSTAGES TWO AND A HALF MEN CSI HAWAII 5-O AMAZING RACE THE CRAZY ONES 565, , , , , , , , , , , , ,044 1,355,628 1,308,001 Source: Rentrak, First 4 Weeks of Season-to-date Average

9 TV Program Streaming How Streamed 50% 42% 38% 31% 58% 62% 58% 49% 27% 31% 30% 31% 26% 18% 19% 10% 51% 43% On Desktop On Laptop On TV On Mobile Device Tablet Source: CBS Entertainment Panel, November Each Year

10 MEDIAN AGE ONLINE VS. TELEVISION SEASON-TO-DATE Source: CBSI Internal Data; CBS/CAN Video Data; Nielsen NPM Program Online TV Difference The Mentalist The Amazing Race Elementary The Big Bang Theory The Crazy Ones Hawaii Five How I Met Your Mother Survivor Mom The Good Wife Hostages Broke Girls NCIS NCIS:LA Criminal Minds Person of Interest Undercover Boss Blue Bloods CSI Two And A Half Men

11 VIDEO ON DEMAND GROWTH SEASON-TO-DATE VS. YEAR AGO All Free VOD CBS Free VOD 15,362,508,891 19,682,458, % +58% 3,480,222,860 2,201,835, Source: Rentrak, 9/23/13-11/24/13 vs. 9/24/12-11/25/12; Time Spent in Minutes

12 CBS VOD TRANSACTIONS TOP SEASON-TO-DATE BIG BANG THEORY, THE GOOD WIFE, THE NCIS HOSTAGES ELEMENTARY THE CRAZY ONES HOW I MET YOUR MOTHER TWO AND A HALF MEN HAWAII 5-O CSI BLUE BLOODS MENTALIST, THE THE MILLERS MOM SURVIVOR: 949, , , , , , , , , , , , , ,334 1,526,146 Source: CBSi Data Warehouse, Season-to-date Average

13 VOD HAS AN UPSCALE AUDIENCE PROFILE Median Age (2+) Median Income (HH) $ Linear TV Non-Linear VOD $49,900 $68,100 Rating Index Rating Index TOTAL US $75,000+ HH Income $100,000+ HH Income $100K+/Professional, Owner, Manger $100K+/HH with Some College $100K+/HH with Children Source: Nielsen NPM, CBS Primetime, 9/23/13-3/23/14; Live+ 3 Data

14 CBS DVR PLAYBACK TOP SEASON-TO-DATE BIG BANG THEORY, THE NCIS PERSON OF INTEREST ELEMENTARY SURVIVOR CRIMINAL MINDS BLUE BLOODS INTELLIGENCE GOOD WIFE, THE HOW I MET YOUR MOTHER MENTALIST, THE HAWAII FIVE-0 CSI NCIS: LOS ANGELES TWO AND A HALF MEN 5,611,000 4,905,000 4,788,000 4,327,000 4,325,000 4,298,000 4,135,000 4,091,000 3,987,000 3,961,000 3,916,000 3,831,000 3,803,000 3,214,000 7,571,000 Source: Nielsen NPM, Season-to-date Average, Live+7 vs. Live

15 Non-Linear Viewing Timeline CBS Primetime Season-to-Date DVR Playback 86% 14% VOD 38% 22% 40% Streaming 35% 18% 47% Days 1-3 Days 4-7 Days 8-28 Source: NTI/NHI, (9/23/2013 3/30/2014); Rentrak ODE (9/23/13-3/30/14); CBSi OCR (9/23/13-3/30/14)

16 OnDemandCommercialRatings

17 Non-Linear Viewing Timeline CBS Primetime Season-to-Date STREAMING STREAMING VOD 18% 11% VOD 10% 7% STREAMING 21% VOD 10% 71% DVR PLAYBACK 83% DVR PLAYBACK 69% DVR PLAYBACK Source: NTI/NHI, (9/23/2013 3/30/2014); Rentrak ODE (9/23/13-3/30/14); CBSi OCR (9/23/13-3/30/14)

18 MEDIA DEMAND LANDSCAPE 2014 INSIGHTS AND OPPORTUNITIES

19 Need States 2014 MEDIA DEMAND LANDSCAPE Media Trendsetters Program Passionates Engaged Streamers Demand Segments TV Traditionalists TV Sports Fans TV Moderators Digital Selectives Thrill of the Game Authentic & Inspirational Stimulate & Explore Friends & Family To Whom Viewers grouped by their underlying motivations around media and TV involvement Action & Suspense Lighthearted Fun Convenient Catch- Up Relax & Unwind Keep Me Informed For What Different Viewing Occasions in which the viewer/listener seeks a distinct combination of rational and emotional benefits Source: Cambridge/Nielsen 2014 Media Demand Landscape

20 SEVEN DEMAND SEGMENTS DEFINE THE RANGE OF MEDIA ENGAGEMENT AND VIEWER PREFERENCES 2014 Media Demand Segments To Whom Media Trendsetters 20%/43 hrs. Early adopters of content and technology; social diffusers Program Passionates 15%/38 hrs. Dedicated to high quality shows; time shift to keep up Engaged Streamers 13%/38 hrs. Enjoy streaming TV and sharing via social media TV Traditionalists 15%/41 hrs. Love traditional TV and regularly follow favorite programs TV Sports Fans 14%/42 hrs. TV interest is anchored in sports and competition TV Moderators 11% / 26 hrs. Limited engagement with TV news and information focused Digital Selectives 12% / 27 hrs. Little engagement with TV programs; prefer streaming when do watch Source: Cambridge/Nielsen 2011 Media Demand Landscape; Nielsen Fusion

21 VIEWING BEHAVIORS HAVE SHIFTED BROADLY Media Trendsetters Program Passionates Engaged Streamers* TV Traditionalists TV Sports Fans TV Moderators Digital Selectives* Streaming/ VOD/Other DVR Live 8% 5% 14% 7% 4% 10% 13% 8% 3% 11% 23% 6% 3% 2% 5% 7% 3% 4% 6% 6% 5% 4% 6% 6% 3% 11% 25% 6% 87% 79% 86% 79% 86% 71% 95% 88% 93% 88% 91% 88% 86% 69% Note*: Source: Change vs. Streamers Cambridge/Nielsen 2011 Media Demand Landscape; Cambridge/Nielsen 2014 Media Demand Landscape

22 The Advertiser Perspective

23 PROGRAMMATIC MARKETING From Wikipedia, the free encyclopedia: In digital marketing, programmatic marketing campaigns are automatically triggered by any type of event and deployed according to a set of rules applied by software and algorithms. Human skills are still needed in programmatic campaigns as the campaigns and rules are planned beforehand and established by marketers

24 REAL-TIME BIDDING From Wikipedia, the free encyclopedia: Jump to: navigation, search Real-time bidding (RTB) refers to the means by which ad inventory is bought and sold on a perimpression basis, via programmatic instantaneous auction, similar to financial markets. [1] With realtime bidding, advertising buyers bid on an impression and, if the bid is won, the buyer s ad is instantly displayed on the publisher s site. [2] Real-time bidding lets advertisers manage and optimize ads from multiple ad-networks by granting the user access to a multitude of different networks, allowing them to create and launch advertising campaigns, prioritize networks and allocate backfill percentages [clarify]. [3]

25 HARNESSING THE FULL POWER OF TELEVISION ADVERTISING Re-tool Marketing and Media Mix Models Measure Long term Advertising Effects Improve targeting Measure the Message Dynamic ROI Tracking Pre-testing Adaptive Models

26 CBS LOCAL CROSS-MEDIA MEASUREMENT PROOF OF CONCEPT: INITIAL FINDINGS

27 BETTER TOGETHER: IN LOS ANGELES, NEARLY TWICE THE REACH FROM COMBINING CBS RADIO AND LOCAL TELEVISION Los Angeles total persons A18+. Television: Live+7, Total Day, October 2013; Sample sizes: PPM = 2,527, LPM = 1840 Oct 3-9 reach: Television + Radio = 22%, Television Only = 29%, Radio Only = 22%; 73% Combined. Oct reach: Television + Radio = 40%, Television Only = 27%, Radio Only = 20%; 87% Combined.

28 CBS LOCAL TELEVISION AND RADIO TOGETHER PROVIDE UNMATCHED REACH! Average Weekly Reach (A25-54): 91% 86% 91% 84% 93% 49.6% 39.7% 47.1% 35.7% 55.1% 19.6% 24.2% 15.1% 40.5% 25.3% 28.7% 21.6% 21.8% 8.1% 12.2% New York Los Angeles Chicago Philadelphia Boston Television and Radio Television Only Radio Only All markets: Adults 25-54, based on DMA, M-Su 6a-Mid. Television: Live+7, Total Day, October 2013; Stations: New York, WCBS/WLNY-TV, WCBS-AM/WFAN-AM/WINS-AM/WWFS-FMWCBS-FM/WNOW-FM Los Angeles, KCBS/KCAL-TV, KAMP-FM/KCBS-FM/KNX-AM/KROQ-FM/KRTH-FM/KTWV-FM Chicago, WBBM-TV, WBBM-AM/WBBM-FM/WSCR-AM/WXRT-FM/WUSN-FM/WJMK-FM Philadelphia, KYW/WPSG-TV, KYW-AM/WOGL-FM/WIP-AM/WIP-FM/WPHT-AM Boston, WBZ/WSBK-TV, WBZ-AM/WBZ-FM/WZLX-FM/WODS-FM/WBMX-FM

29 CROSS-MEDIA MEASUREMENT- Where do we go from here?

30 THANK YOU

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