A NEW SQAD VP ANNOUNCED S Q A D M A R K E T I N D I C AT O R S APRIL VOLUME 17 ISSUE 4. I N S I D E : There s a New SQARE in Town

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1 2014 APRIL VOLUME 17 ISSUE 4 S Q A D M A R K E T I N D I C AT O R S TVv2 SMI April 2014 # # # # # DP Mkts Mkts Mkts Mkts Mkts SMI EM DAY EF EN PA PR LN LF SMI =(#DOUBLEPLUSES +#SINGLEPLUSES + #SAME + #SINGLEMINUSES +1) / (#DOUBLEMINUSES + #SINGLEMINUSES + #SAME +#SINGLEPLUSES +1) An SMI greater than 1.00 indicates a tightening of the daypart in general, while an SMI less than 1.00 indicates a softening of the daypart in general. This SMI represents the ratio of the 3 numbers reported for each daypart. KEY: ++>=5%(higher), +>=2.5% but<5%(higher), 0 <2.5% change in either direction, - >=2.5% but <5% (lower), -- >=5%(lower) Hispanic Spot TV SMI March 2014 # # # # # DP Mkts Mkts Mkts Mkts Mkts SMI EM DAY EF EN PR LN There s a New SQARE in Town, (And a DATAVue Update, too!) In April, SQAD is releasing a new Spot TV product Spot TV CPP v2. This new product incorporates a major enhancement to the SQARE methodology which changes the way SQAD handles individual cells for Use for that product. where only 1 or 2 contributors are providing costs for these cells. This change in no way affects cells with input from 3 or more contributors. Clients will receive detailed information about this new product via . While the current Spot TV product will continue to be produced through June, this new product Spot TV v2 - is now the official data provided under our Subscription and License agreement. (The original Spot TV product is the official data for issues prior to 2014.) In addition to the release of TVv2, DATAVue has been updated, and DATAVue has the following changes: The SQARE methodology documents for all of SQAD s products are now available from the Help menu. To access the Help rblum@sqad.com menu, you must first choose a product and select at least one item each for columns and rows. Then when you click on Help from the menu bar the methodology document for the product you selected will be listed along with the DATAVue Quick Start Guide, full User Guide, and Guidelines For Radio clients, the former Arbitron pop-up box now says Nielsen Audio. Our new product Spot TV CPP v2 - has been added to our product tree. This product will be released to our Spot TV subscribers in April and will only be accessible from DATAVue Please be sure to install the new version of DATAVue, (version ) when you receive notification. Please contact your SQAD rep to review the Simulated Buy Technique, SQARE methodology or for more information about SQAD Spot TV CPP v2: Robin Blum, East Coast, , Samantha Marlowe, West Coast, , smarlowe@sqad.com If you have any questions, please contact your account representative or SQAD Support, , support@sqad.com. A NEW SQAD VP ANNOUNCED Dan Klar has been named Vice President of Product Management at SQAD. Over the past 14 years, Dan has held several positions at SQAD across the company working with all of our products, our infrastructure, our clients, and our vendors. Over the past year, while overseeing our strategic initiatives, he ushered in a collaborative and highly effective approach to our product development process. In his new position, Dan will work closely with SQAD s individual product management teams to ensure each SQAD product is of the highest quality and successfully meets our clients needs. Congratulations, Dan! I N S I D E : There s a New SQARE in Town New VP Appointed SQAD in the News: REELSEO SQAD in the News: CMO Today SQAD in the News: Media Daily News SQAD in the News: Medialife Do You Know SQAD? TV MarketTrend Report

2 SQAD in the News: In-stream Online Video Ad CPM Higher than Cable Prime Time? March 27, 2014 by Christophor Rick In stream Online Video Ad CPM Higher than Cable Prime Time? Here's a bit of news coming out of a company I have never heard of called SQAD (apparently pronounced squad, considering that cable advertising has been outside my wheelhouse I am not surprised, but they are on my radar now. The crux of their report is that in-stream video ads online are more expensive than cable television prime time ads. By how much? Quite a bit they say. SQAD has been around for some time, according to their website, and specialize in "media cost forecasting." SQAD receives actual buys from agencies and media buying companies for spot TV and radio as well as Hispanic Spot TV buys. Data for these media are filtered through SQARE to eliminate special programming that inappropriately alters the current and future CPPs (i.e., Thanksgiving Day Parade, Super Bowl, etc.). The proprietary SQARE model processes data that is based on actual buys for the current quarter. Using this information plus historical data from 16 rolling quarters, SQARE builds estimates for the future. Using the current quarter s actual estimates, projections for subsequent quarters are directionally based on movement seen in the current quarter. With nearly $13 billion* of spot media buys for TV, Radio and Hispanic Spot TV, SQAD creates forecasting algorithms, which allow users to budget and plan up to four quarters into the future. Alright, so they have track media buy costs for 16 rolling quarters, or four years, and are looking at the trends. Using their databases, they came up with a 2013 average CPM for online, in-stream video ads of $ That seems on the high side in my opinion and they say it is 38% higher than the average CPM for prime time cable TV. Meanwhile, network TV was almost double that of online in-stream video ads at $ The high network TV CPM seems right to me and that might be why it seemed that the online in-stream was too high at first glance. So here's how it all breaks down. The table shows data for 2012 and 2013 for all but in-stream video ads so we don't know how that one changed year-to-year (they only started tracking in January 2013, no wonder I have not heard of them). Cable TV prime time rose slightly and display ad CPMs are on the decline. We can probably imagine that in-stream online video ad CPMS rose just like network TV prime time CPM rates did. "In many cases, online premium video inventory is still somewhat limited, so it's not that surprising that rates are high right now," said Neil Klar, CEO of SQAD. "Broadcast TV networks command premium CPMs because of their reach and programming, and they have leveraged those commodities to obtain upper tier in-stream video CPMs." The highest rated TV show for the week of March 23rd was The Voice which pulled 5.1M viewers. NCIS pulled 17M when taking into account live and SD (same day, time shifted). That's a reach of 4-13% in the demographic. SQAD states that network TV websites (NBCU, CBS, ABC) had a combined average CPM of $30 which then results in a higher overall in-stream CPM. Weird, where is FOX? What about the CW? More importantly... How much is Hulu's CPM then? $23-30 perhaps? Remember my hypothetical piece back in December on that exact thing where I said, "Hulu is, hypothetically, averaging around $27.50 CPM for ad placements against its content." For you naysayers, I also said, "If there's a 10% margin of error, Hulu's ad CPM could be as low as $24.75." Boom.Mathematiced. SQAD in the News: Online Video Ads are Half the Price of Primetime Network TV March 24, By Jack Marshall Buying ad time on Web video is more expensive than on cable channels. But the major broadcast networks remain by far the costliest real estate for video advertisers, according to new data from advertising cost analysis firm SQAD. A study conducted by the company found the average cost of reaching a thousand online video viewers was $23.03 in 2013, 47 percent cheaper than the $44.11 it cost to reach a thousand 18 to 49-year-olds during primetime network TV. Ad space on cable TV is considerably cheaper than online video, however, with an average price of $15.63 to reach a thousand viewers, the company s research suggests. SQAD CEO Neil Klar said online video ad prices remain relatively high because inventory is still scarce. Broadcast TV networks continue to command premium prices, he added, thanks to highquality programming and extensive reach. Page 2 NEIL D. KLAR, PUBLISHER CHRISTINE L. MUELLER, EDITOR April 2014

3 March 28, 2014, by Wayne Friedman TV broadcast networks cost per thousand viewer prices are still tops among all media in with digital in-stream video CPMs higher than cable TV. For 2013, TV broadcast CPMs averaged $44.11 for adults 18-49, the most popular viewing category, with in-stream video (for all demographic groups) at $23.03 and cable TV at $15.63 for viewers. This is according to Tarrytown, NY-based SQAD, the independent researcher in the U.S. for TV, radio and digital costs and analysis. Both TV broadcast and cable TV network CPMs rose 5% year to year. ago. SQAD didn t offer any 2012 comparisons for in-stream video. SQAD in the News: CPMs Highest Among TV Broadcast Nets, Online Video Limited Looking at just the major TV providers that deliver digital video -- NBC, CBS, and ABC -- their premium programming average $30 CPMs in 2013 versus the overall $23.03 average for digital video. In many cases, online premium video inventory is still somewhat limited, so it's not that surprising that rates are high right now," stated Neil Klar, chief executive officer of SQAD. "Broadcast TV networks command premium CPMs because of their reach and programming, and they have leveraged those commodities to obtain upper-tier in-stream video CPMs," he added. Digital display CPMs continue to struggle, as other research has also shown -- down 1% year to year to $10.88 form $ SQAD in the News: Report: Cable buys more efficient than online When it comes to reaching people age 18-49, cable TV is a more efficient buy than streaming video ads. That s according to the cost forecast firm SQAD, which found the average CPM for in-stream video ads was $23.03 in 2013, or 38 percent higher than the average CPM for primetime cable ($15.63). Primetime network TV remained the priciest medium measured by SQAD, with CPMs averaging $44.11 last year. On the other end of the spectrum, online display ads were the cheapest medium measured with CPMs at $10.88, down from $10.98 in SQAD says streaming ads have higher CPMs than cable because online premium video inventory is still relatively limited, leading to higher rates. Interestingly, TV network web sites are driving up the CPMs of instream ads. The SQAD data shows the combined in-stream video CPMs for the NBC, CBS and ABC web sites was around $30.00, or nearly $7 more than the overall in-stream average. March 28, ANA Media Leadership Conference: A Brief Summary After attending the Media Leadership Conference on 3/30-4/1, SQAD s Larry Fried and Samantha Marlowe noted that the key discussions that interested and concerned marketers were Transparency, Programmatic Buying, and Ad Exchanges. The discussion of transparency centered on two key areas: Currency and Cost. Much of the discussion dealt with the development of a common currency that marketers could equate across all media. The Media Rating Council s online viewable GRP announcement was seen as a first step in accurately determining the value of a delivered impression. Virtually every speaker discussed the value inherent in programmatic buying and its future in all media. Statistics were cited predicting that more than half of display and a large percentage of in-stream video would be done programmatically in the next two years and would keep growing as it was the most effective way to correlate the massive amount of targeting data with a real time marketplace. On the subject of Ad Exchanges, speakers from Google and Agency Trading Desks extolled the virtue and power of their platforms, while marketers seem to feel that the need to react to competitors in a real time marketplace meant the control of data should reside in their hands. Predictions at the conference saw as much as 50% of dollars being placed directly through Marketer-controlled exchanges or marketer-controlled third party trading desks. April 2014 Page 3

4 DO YOU KNOW? To help with the information overload of looking at data, WRAP allows for customized highlighting of programs. The common Single Day Grid comes alive with a simple right-click on a title to add color shading. With multiple colors, programs can be conveniently highlighted by program type like red for network news. Even better, previously highlighted programs are recalled when a new report is created and can be exported to a spreadsheet in color. (Note: Simulated data shown due to copyrighted information.) For more information on agency, station or syndicator solutions, contact your SQAD Rep. It s a WRAP! Highlighting on Grids Congratulations, Robin Blum Congratulations to Robin Blum on receiving the 2014 Westchester Jewish Council Julian Y. Bernstein Distinguished Service Award. Robin will be honored the evening of May 14th. Robin has been involved with the Bronx Jewish Community Council since 2006, when, as the Social Action Chair of Community Synagogue of Rye, she created the Mitzvah Opportunity for All project. Robin reached out to the Bronx Jewish Community Council to partner with her to put the project into action. The project occurs on every Christmas day when Robin puts together a team of volunteers from Community Synagogue of Rye and beyond. The teams cook the kosher dinners in their homes and then gather to assemble and package the meals. The volunteers deliver meals and goodwill to the isolated elderly on what is often the loneliest of days. It is incredibly satisfying to give back, Robin said. My sister had polio and my husband has Multiple Sclerosis. Without a global village, I don t know personally where I would be. All of her friends are invited to the celebration on 5/14. Please contact Robin at rblum@sqad.com. Congratulations! SQAD Welcomes Hari Adarapu Hari joined SQAD in mid-march as Senior Software Engineer working on the WRAP suite. He s worked GE HealthCare, Walmart/SAM's Club, John Deere and and HCL Technologies. Hari lives in Montvale, NJ with his wife and daughter, Sahasra.When he s not at home, he enjoys playing volleyball and exploring new places. Welcome to a new work place, Hari welcome to SQAD! SQAD is on Twitter! Follow us for the latest ad business Page 4 April 2014

5 SQAD Spot TV MarketTrend Report - April 2014 TVv2 Issue Compared to March 2014 TVv2 Issue Second Quarter 2014 RANK MARKET EM DA EF EN PA PR LN LF 165 ABILENE-SWEETWATER ALBANY, GA ALBANY-SCHENECTADY-TR ALBUQUERQUE-SANTA FE ALEXANDRIA, LA ALPENA AMARILLO ANCHORAGE ATLANTA AUGUSTA AUSTIN BAKERSFIELD BALTIMORE BANGOR BATON ROUGE BEAUMONT-PORT ARTHUR BEND, OR BILLINGS BILOXI-GULFPORT BINGHAMTON BIRMINGHAM (ANN AND T BLUEFIELD-BECKLEY-OAK BOISE BOSTON (MANCHESTER) BOWLING GREEN BUFFALO BURLINGTON-PLATTSBURG BUTTE-BOZEMAN CASPER-RIVERTON CEDAR RAPIDS-WTRLO-IW CHAMPAIGN&SPRNGFLD-DE CHARLESTON, SC CHARLESTON-HUNTINGTON CHARLOTTE CHARLOTTESVILLE CHATTANOOGA CHEYENNE-SCOTTSBLUF CHICAGO CHICO-REDDING CINCINNATI CLARKSBURG-WESTON CLEVELAND-AKRON (CANT COLORADO SPRINGS-PUEB COLUMBIA, SC COLUMBIA-JEFFERSON CI COLUMBUS, GA COLUMBUS, OH COLUMBUS-TUPELO-WEST CORPUS CHRISTI DALLAS-FT. WORTH DAVENPORT-R.ISLAND-MO DAYTON DENVER DES MOINES-AMES Page 5

6 SQAD Spot TV MarketTrend Report - April 2014 TVv2 Issue Compared to March 2014 TVv2 Issue Second Quarter 2014 RANK MARKET EM DA EF EN PA PR LN LF 11 DETROIT DOTHAN DULUTH-SUPERIOR EL PASO ELMIRA ERIE EUGENE EUREKA EVANSVILLE FAIRBANKS FARGO-VALLEY CITY FLINT-SAGINAW-BAY CIT FLORENCE-MYRTLE BEACH FRESNO-VISALIA FT. MYERS-NAPLES FT. SMITH-FAY-SPRNGDL FT. WAYNE GAINESVILLE GLENDIVE GRAND JUNCTION-MONTRO GRAND RAPIDS-KALMZOO GREAT FALLS GREEN BAY-APPLETON GREENSBORO-H.POINT-W GREENVILLE-N.BERN-WAS GREENVLL-SPART-ASHEVL GREENWOOD-GREENVILLE HARLINGEN-WSLCO-BRNSV HARRISBURG-LNCSTR-LEB HARRISONBURG HARTFORD & NEW HAVEN HATTIESBURG-LAUREL HELENA HONOLULU HOUSTON HUNTSVILLE-DECATUR (F IDAHO FALLS-POCATELLO INDIANAPOLIS JACKSON, MS JACKSON, TN JACKSONVILLE JOHNSTOWN-ALTOONA JONESBORO JOPLIN-PITTSBURG JUNEAU KANSAS CITY KNOXVILLE LA CROSSE-EAU CLAIRE LAFAYETTE, IN LAFAYETTE, LA LAKE CHARLES LANSING LAREDO LAS VEGAS Page 6

7 SQAD Spot TV MarketTrend Report - April 2014 TVv2 Issue Compared to March 2014 TVv2 Issue Second Quarter 2014 RANK MARKET EM DA EF EN PA PR LN LF 63 LEXINGTON LIMA LINCOLN & HASTINGS-KR LITTLE ROCK-PINE BLUF LOS ANGELES LOUISVILLE LUBBOCK MACON MADISON MANKATO MARQUETTE MEDFORD-KLAMATH FALLS MEMPHIS MERIDIAN MIAMI-FT. LAUDERDALE MILWAUKEE MINNEAPOLIS-ST. PAUL MINOT-BISMARCK-DICKIN MISSOULA MOBILE-PENSACOLA (FT MONROE-EL DORADO MONTEREY-SALINAS MONTGOMERY (SELMA) NASHVILLE NEW ORLEANS NEW YORK NORFOLK-PORTSMTH-NEWP NORTH PLATTE ODESSA-MIDLAND OKLAHOMA CITY OMAHA ORLANDO-DAYTONA BCH-M OTTUMWA-KIRKSVILLE PADUCAH-C.GIRD-HARBG PALM SPRINGS PANAMA CITY PARKERSBURG PEORIA-BLOOMINGTON PHILADELPHIA PHOENIX PITTSBURGH PORTLAND, OR PORTLAND-AUBURN PRESQUE ISLE PROVIDENCE-NEW BEDFOR QUINCY-HANNIBAL-KEOKU RALEIGH-DURHAM (FAYET RAPID CITY RENO RICHMOND-PETERSBURG ROANOKE-LYNCHBURG ROCHESTER, NY ROCHESTR-MASON CITY-A ROCKFORD Page 7

8 SQAD Spot TV MarketTrend Report - April 2014 TVv2 Issue Compared to March 2014 TVv2 Issue Second Quarter 2014 RANK MARKET EM DA EF EN PA PR LN LF 20 SACRAMNTO-STKTON-MODE SALISBURY SALT LAKE CITY SAN ANGELO SAN ANTONIO SAN DIEGO SAN FRANCISCO-OAK-SAN SANTABARBRA-SANMAR-SA SAVANNAH SEATTLE-TACOMA SHERMAN-ADA SHREVEPORT SIOUX CITY SIOUX FALLS(MITCHELL) SOUTH BEND-ELKHART SPOKANE SPRINGFIELD, MO SPRINGFIELD-HOLYOKE ST. JOSEPH ST. LOUIS SYRACUSE TALLAHASSEE-THOMASVIL TAMPA-ST. PETE (SARAS TERRE HAUTE TOLEDO TOPEKA TRAVERSE CITY-CADILLA TRI-CITIES, TN-VA TUCSON (SIERRA VISTA) TULSA TWIN FALLS TYLER-LONGVIEW(LFKN&N UTICA VICTORIA WACO-TEMPLE-BRYAN WASHINGTON, DC (HAGRS WATERTOWN WAUSAU-RHINELANDER WEST PALM BEACH-FT. P WHEELING-STEUBENVILLE WICHITA FALLS & LAWTO WICHITA-HUTCHINSON PL WILKES BARRE-SCRANTON WILMINGTON YAKIMA-PASCO-RCHLND-K YOUNGSTOWN YUMA-EL CENTRO ZANESVILLE Page 8