CABLE NATION: What s Driving Digital?
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1 CABLE NATION: What s Driving Digital? OVERVIEW INTERNET BRANDS TV INVESTMENT TV & WEB TRAFFIC TRAFFIC EXAMPLES AUTO TV & REVENUE REVENUE EXAMPLES TV STUDIES CONTACT US
2 OVERVIEW What s Driving Digital? Currently, the last site visited or search term entered receives the vast majority of credit for driving website traffic Consequently many experienced and successful marketers with digital destinations are shifting their advertising dollars to the internet in the search of increased website traffic and ideally revenue What s interesting is at the same time many of the most well-known, successful internet brands are spending more of their ad dollars on television Pure-play internet brands, whose businesses are solely reliant on internet traffic to drive revenue, spent over 4 billion dollars on TV advertising in 2013 alone Over the past five years, TV investment by pure-play internet brands has increased over a third (with Cable garnering the lion s share of dollars) So why do brands that have built their business through the internet rely on another medium as their primary traffic driver? Simple it swells any given channel with the most production leads: In an analysis of 75 pure-play internet advertisers, 85% show a direct correlation between TV spend and website traffic (e.g. TV spend up, traffic up; TV spend down, traffic down) An analysis of 11 different categories proves that TV generates increased revenue from the first year on-air
3 INTERNET BRANDS The Top Pure-Play Internet Brands Spent Over $4 Billion on TV Last Year
4 TV INVESTMENT Over the Past 5 Years, Pure-Play Internet Brands Have Increased Their TV Investment by Over a Third; 71% of TV Spend in Cable and Growing # of Brands: Website Category: 5 Year Trend TV Spend (Billions) $3.0 $3.1 $ ,701 2,599 2,560 2,426 2,425 Source: Nielsen AdViews; Website category (national + spot TV) $3.7 Website Category: 5 Year Trend TV Spend by Source +37% (Billions) vs. 09 Cable +82% vs. 09 $4.1 $92 $400 $875 $1,634 $101 $380 $812 $1,709 $100 $400 $745 $2,087 $168 $353 $812 $2,321 $110 $358 $688 $2, Cable Broadcast Spot B cast Syndication
5 TV & WEB TRAFFIC What is the Impact of TV Spend? 63 of the 75 Pure-Play Internet Brands Analyzed Exhibited a Direct Correlation Between TV Spend & Website Traffic 63 Website Brand Advertisers: Unique Visitors vs. TV Spend Feb. 13 April 14 (15 month Half vs. Half Comparison) TV Spend Down, Traffic Down 25 Advertisers When Spend DOWN -22% less unique visitors (on average) TV Spend Up, Traffic Up 38 Advertisers When Spend UP +33% more unique visitors (on average) Source: Nielsen AdViews; Website category (subcategories: auto, travel, dating, gaming, care giving, entertainment, educational, financial, insurance, business services, retail); National TV spend Feb April 2014; comscore unique visitors P15+ HIGHLIGHTS OVERVIEW MONTHLY INTERNET RATINGS BRANDS RATINGS TV INVESTMENT TREND TV & WEB TRAFFIC TRAFFIC RETURNING EXAMPLES BROADCAST AUTO PROGRAMS TV & 2014 REVENUE CABLE PROGRAMS REVENUE EXAMPLES SOCIAL TV TV STUDIES TIME SPENT CONTACT US US
6 TRAFFIC EXAMPLES A Few Real-World Examples From a Variety of Categories Demonstrates the Direct Effect TV Spend Has On Website Visits TV Spend (000): TV Spend Down, Traffic Down Feb. 13 Aug 13: $4,121.7 $271.3 $1,740.9 $2,891.3 Sep. 13 Apr 14: $3,065.1 $240.2 $539.8 $1,973.3 % Difference: -26% -12% -69% -32% Unique Visitors (000): Feb. 13 Aug 13: 14,364 3,273 5,558 8,351 Sep. 13 Apr 14: 10,951 2,535 1,826 6,090 % Difference: -24% -23% -67% -24% TV Spend (000): TV Spend Up, Traffic Up Feb. 13 Aug 13: $4,206.2 $1,040.2 $1,049.8 $616.7 Sep. 13 Apr 14: $5,145.3 $1,489.8 $1,379.4 $703.3 % Difference: +22% +43% +31% +14% Unique Visitors (000): Feb. 13 Aug 13: 9, ,303 Sep. 13 Apr 14: 11,944 1, ,575 % Difference: +21% +50% +89% +21% Source: Nielsen AdViews; National TV spend Feb April 2014; comscore unique visitors P15+. Spend & unique visitors based on Feb-Aug 13 vs. Sep-Apr 14 monthly averages HIGHLIGHTS OVERVIEW MONTHLY INTERNET RATINGS BRANDS RATINGS TV INVESTMENT TREND TV & WEB TRAFFIC TRAFFIC EXAMPLES AUTO TV & 2014 REVENUE CABLE PROGRAMS REVENUE EXAMPLES SOCIAL TV TV STUDIES TIME SPENT CONTACT US US
7 AUTO An Analysis of a Diverse Cross-Section of Auto Brands Reveals the Same Pattern: TV Spend Up, Website Traffic Up TV Spend (000): TV Spend Up, Traffic Up Feb. 13 Aug 13: $22,106.0 $19,122.0 $41,608.6 $27,205.1 Sep. 13 Apr 14: $28,556.1 $24,708.0 $65,618.5 $33,359.7 % Difference: +29% +29% +58% +23% Unique Visitors (000): Feb. 13 Aug 13: , Sep. 13 Apr 14: 1, ,715 1,597 % Difference: +26% +28% +41% +105% Source: Nielsen AdViews; Automotive Manufacturer category; TV spend (national + spot) Feb April 2014; comscore unique visitors P18+. Spend & unique visitors based on Feb-Aug 13 vs. Sep-Apr 14 monthly averages
8 TV & REVENUE Does TV Spend Ultimately Increase Revenue? TV Generated Revenue from the First Year On-Air Through Today Investments Streaming Video We conducted a TV spend vs. Revenue analysis of 12 different categories Travel Retail Computer Software ecommerce/ Auction Note: We analyzed a major non-conglomerate website company within each category. A major factor in selecting the company to represent the category was the public availability of revenue numbers. Source: Nielsen AdViews; Website category; National TV spend by year; Revenue as reported by company Internet Services Care Giving / Health 12 Company Total Credit Monitoring Home Year Prior to TV Launch 1st Year on TV 2nd Year on TV 2013 Dating TV Spend (000): $166,616 $393,275 $679,434 Revenue (000): $866,233 $1,843,221 $4,796,949 $31,430,163 Revenue per TV $ Spent $11.06 $12.20 $ st Year on TV: Every $1 spent on TV generated $11 in revenue 2 nd Year on TV: Every $1 spent on TV generated $12 in revenue Auto Last Year on TV: Every $1 spent on TV generated $46 in revenue
9 REVENUE EXAMPLES Specific Examples of TV Spend vs. Revenue by Company for Six Major Pure-Play Internet Categories 10 Year TV Advertiser 14 Year TV Advertiser Includes: 15 Year TV Advertiser Includes: Source: Nielsen AdViews; Website category; National TV spend by year; Revenue as reported by company Year Prior to TV Launch 1st Year on TV 2013 TV Spend (000): $22,479 $42,327 Revenue (000): $272,243 $580,611 $4,374,562 Revenue per TV $ Spent $25.83 $ Year Prior to TV Launch 1st Year on TV 2013 TV Spend (000): $35,222 $101,668 Revenue (000): $482,400 $1,240,000 $6,793,306 Revenue per TV $ Spent $35.21 $66.80 Year Prior to TV Launch 1st Year on TV 2013 TV Spend (000): $1,736 $18,313 Revenue (000): $86,129 $224,724 $16,047,000 Revenue per TV $ Spent $ $ OVERVIEW INTERNET BRANDS TV INVESTMENT TV & WEB TRAFFIC TRAFFIC EXAMPLES AUTO TV & REVENUE REVENUE EXAMPLES TV STUDIES CONTACT US
10 REVENUE EXAMPLES cont. Specific Examples of TV Spend vs. Revenue by Company for Six Major Pure-Play Internet Categories 11 Year TV Advertiser 17 Year TV Advertiser 9 Year TV Advertiser Source: Nielsen AdViews; Website category; National TV spend by year; Revenue as reported by company Year Prior to TV Launch 1st Year on TV 2013 TV Spend (000): $8,176 $22,763 Revenue (000): $91,784 $238,945 $1,304,217 Revenue per TV $ Spent $29.22 $57.30 Year Prior to TV Launch 1st Year on TV 2013 TV Spend (000): $4,445 $55,085 Revenue (000): $51,595 $254,022 $1,723,700 Revenue per TV $ Spent $57.14 $31.29 Year Prior to TV Launch 1st Year on TV 2013 TV Spend (000): $7,172 $20,260 Revenue (000): $73,000 $139,800 $1,400,000 Revenue per TV $ Spent $19.49 $69.10 OVERVIEW INTERNET BRANDS TV INVESTMENT TV & WEB TRAFFIC TRAFFIC EXAMPLES AUTO TV & REVENUE REVENUE EXAMPLES TV STUDIES CONTACT US
11 TV STUDIES More Evidence that TV Drives Internet Traffic: Two Independent Studies Confirming TV Ads are Primary Generators of Website Traffic 64% TV ad Deloitte State of Media Democracy Report Visited Website After Seeing Ad 61% Magazine ad 59% Newspaper ad 49% Online ad Source: Deloitte 2013 State of Media Democracy report; Keller Fay / ThinkBox % Mobile App ad 47% TV ad Keller Fay/ThinkBox Paid.Owned. Earned Report % of Visits Generated 12% Offline WOM 10% 8% 6% Online ad PR Online WOM
12 CONTACT US If you would like additional video advertising information, insights or analysis please visit our website at or feel free to contact us directly: Sean Cunningham President & CEO Jason Wiese VP Strategic Insights Follow us on and like us on Danielle DeLauro SVP Strategic Sales Insights Evelyn Skurkovich Sr. Director, Strategic Insights
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