VAB-Report-MVPDs VOD – Driving Engagement and … Video On Demand Is Now Available In 62% Of Homes...

VAB REPORT: MVPD’S VOD – DRIVING ENGAGEMENT & AD LIFT

INSIGHTS

PGM ENGAGEMENT

VIEWING SOURCE PREFERENCE

PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE

PROFILE/ UPPER SCALE

PROFILE OF VOD V. ONLINE VIDEO

AD LIFT/ENGAGEMENT

AD IMPACT

GENERATES BRAND LIFT

DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI

CANOE VIEWED IMPRESSIONS

CANOE CAMPAIGN TYPES

CANOE AD OPPORT. BY BREAK

• MVPD’s On-demand platform is a top preference for viewing programming content

• VOD is available in 62% of the Homes• Growth driven by improved interface and surge of recently aired programming

• 79% of Cable subscribers use VOD per month (Comcast subs) & almost half (46%) time spent is with episodic TV viewing

• Consumers spend 9.3 hours/month with VOD content (Rentrak)

• Profile of VOD user: Younger, more educated, higher income homes tend to view VOD programming

• MVPD’s VOD creates ad lift & generates more engagement

• Cable VOD Day 4+ outperform ads in general environment in following metrics: – Likeability, relevance and attention– Driving consumers to brand’s website – Consideration for purchasing– Brand impact metrics & intent to purchase)

• VOD poised to grow 6% in next year to $2.5 Billion

INSIGHTS

MVPD’s VOD Insights

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




Consumers Are Just As Engaged With Television Programming as In Years’ Past

PGM ENGAGEMENT

82% Cite More/Same Engagement As Last Year

Engagement Versus Year Ago

TV Shows Movies

Source: Nielsen home entertainment consumer trends5/15:

Q: Thinking about all the ways you watch TV shows, how do the following activities compare to last year? Thinking about all the ways you watch movies, how do the

following activities compare to last year?

Same 60%

Non-Viewers2%

Non-Viewers3%

Less16%

More22%

Less15%

Same 51%

More31%

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




Provider’s On-Demand Remains A Top Preference For Viewing Programming Content

Source: 2015 Feb Hub Report on Timeshifting


Percentage of Shows Viewed Per Source

Shows you record on a DVR or TiVO

(Provider's) On-Demand service

Shows you stream from Netflix

Sites/apps from TV nets

Any other online source

Shows on Hulu/Hulu+

Amazon Prime/Amazon Instant

Site/App from {provider}

34

19

16

8

7

6

3

3

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




Today, Video On Demand Is Now Available In 62% Of Homes - Up 32% In Just Five Years

PENETRATION

VOD Availability in TV HHs

Source: Nielsen; September of each year.

‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

62%60%60%57%

53%

47%43%

72,391,000 UE

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




Source: SNL Kagan; revenue for cable, dbs,telco

AD REVENUE

In The Next Year, Video On Demand Revenue IsPoised To Grow

PPV/VOD Ad Revenue (in millions)

2016

2015

2014

2013

2012

2011

2010

2009

2,471

2,342

2,215

2,071

1,931

1,877

1,851

1,788

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




MVPD’s VOD Growth Is Driven By Its Improved Interface and Surge Of Recently Aired Programming Content

Source: SNL Kagan Multichannel market trends; Count represents avg monthly selection, reflecting turnover and refreshed content and are not comparable to average titles available simultaneously. 3/15;

Sampling of programming for one provider.

PROGRAMMING GROWTH

Sample Programs on VOD (Availability Varies by Cable Provider)

Average U.S. MVPD VOD Titles Per Month# of Titles Has Quadrupled In Past 5 years

2008

5,9508,100

10,403

15,667

20,081

27,930

33,875

2009 2010 2011 2012 2013 2014

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




MVPD’s Offer A Vast Variety Of On-Demand Content – Unmatched By Any SVOD Service

MVPD VOD V. SVOD

Source: SNL Kagan; Netflix reflects estimates based on 1/13, dec ‘13, dec’14; Hulu + reflected estimates based on dec’12/’’13/’14; avg mvpd reflects annual monthly estimates as of 3/15; amazon reflects estimates in July ‘13/’14. Includes both TV and movie titles.

Amazon

Hulu+

Avg MVPD

12,554

5,841

0

20,081

2012 2013 2014

9,848

7,293

16,712

27,930

8,83010,042

17,309

33,875

Netflix

SVOD vs. Average U.S. MVPD VOD Comparison: # of Titles Per month

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




In Fact, Regular Users Of On-Demand PreferVOD Over Streaming

PREFERENCE

Source: MRI How People Use Media; TV Everywhere/VOD,A13-64 in pay tv homes

StreamingServices

VOD 43%

30%

Among users of VOD and Streaming Services, those who turn to VOD at least once a week, prefer…

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




More Than Three Out of Four MVPD Subscribers Use Video On Demand

USERS OF MVPD VOD

Source: FierceCable 5/15 Comcast reported;

79% of Comcast Subscribers Use VOD Per Month

46% of Their Time Is Spent With Episodic TV Viewing

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




TIME SPENT

Source: Rentrak state of VOD report 2014; 9.3 in 2014 v. 8 hours in 2011

Time Spent (Hrs Per Month)

Consumers are Spending Over 9 Hours a Month Watching VOD Content; Spending a Signi�cant Amount Of Time With Your Commercial Since Fast-forward Feature Is Most Likely Disabled

Viewers spend 9.3 hours with VOD in 2014 – up +16% v. 2011

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




VOD Users Are More Likely To Be YoungerPROFILE/AGE

Source: Nielsen; VOD represents only nets Nielsen reports for bdcst+cable; 3Q15

VOD TV

Share of Audience

K2-11

11%8% 9%

4%

29%

13%

23%19%

27%

56%

T12-17 A18-34 A35-49 A50-99

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




They Tend To Be Higher Educated, Earn MoreAnd Hold Professional/Managerial Positions


Source: Nielsen; VOD represents only nets Nielsen reports for bdcst+cable; 3Q15

Earn $100K

31%

18%

34%

18%

31%

20%

4+ Years College POM

VOD TV

Share of Audience

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




When Compared To Online Video Viewers, VOD Viewers Tend To Be More Upscale


Source: MRI Doublebase 2014; watched vod in past month movies/shows any; online video viewer= watched any movies/shows online;A18+

Index To General Population

Master’s Degree 138 133

Married 106 87

Children in Home 122 166

HHI $75K+ 147 121

HHI $150K+ 181 131

VOD Viewer Online Video Viewer

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




MVPD’s VOD Creates Ad Lift & Generates More Engagement

AD LIFT/ENGAGEMENT

Source: Canoe/Magid 2015 study; general adv= live, DVR or VOD anytime; VOD d4+= free on demand between 4th-7th day after first airing/ top 2 box; Insurance Brand; P18-49

General Viewing VOD D4+ Viewing

TV Viewer Who Saw Ad On VOD Day 4+ v. TV Viewer Who Saw Ad in General Environment

How much didyou like the ad?

+3%

How relevant isthe ad to you?

+22%

How much attentiondid you pay to the ad?

+6%

Likeability

74%77%

58%

80%

62%68%

Relevance Attention

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




MVPD’s VOD Ads Have Stronger AD Impact – Driving Consumer To Visit Brand’s Website

AD IMPACT




Made me want to visit thebrand website

17%

31%

19%22%

15%

19%

Made me want to consider purchasing/switching

Made me want to search for information about the brand

+4%+14% +3%

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI





MVPD’s VOD Generates Greater Brand Lift




How much didyou like the brand?

+15%

How likely would yourecommend the brand?

+38%

How likely would youConsider purchasing?

+3%

Brand Opinion

35%

49%

36%

73%

21%24%

Intent To Recommend Intent to Purchase

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




VOD Dynamic Ad Insertion (DAI)DAI DEF

Canoe Enables National TV Network Programmers to easily insert advertising into their Video on Demand programming on cable operators’ VOD platforms

Consumer picks TV program�from cable VOD service

Consumer watches TV program

Consumer watches ads insertedas ad breaks occur before,

during, and after the program

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




Where Canoe VOD DAI isCANOE DAI FOOTPRINT

Coverage in 130 DMAs; 48 of the top 50; 35+M Households

= Canoe homes in DMA

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




Bene�ts of VOD DAI: Quality ProgrammingDAI NETWORKS

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




Familiar Business Model

• Sold by National Programmer Sales Teams

• % of Inventory goes to MSO for “local”

• Sold on CPM, like TV

• Targeting, like TV

• Viewed Ad Impression metric, like Digital

Timely & Reliable Measurement

• Pay only on actual viewed ad impressions verified by Canoe

• Stable, accurate, single source measurement *

• Compliments TV plan's reach as DAI reporting separate from VOD in Nielsen C3/C7 rating

• Compliments Rentrak’s overall VOD insights

BENEFITS OF VOD DAI

Bene�ts of VOD DAI

* MRC Accreditation of Canoe’s measurement service in process. �

Pre-Audit, Committee Review, & Membership Review stages passed.

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




Viewed Ad Impressions On The RiseCANOE VIEWED IMPRESSIONS

Source: Canoe, Oct 2015

Viewed Ad Impressions

2014 2015 YTD Oct

6,300,392,507

7,653,062,365

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




A Look At Campaign Types…CANOE CAMPAIGN TYPES


Campaigns Running in Q3 2015 { Campaign Orders }Come from linear, digital and hybrid groups

{ Category Types Include }Auto, QSR, Financial, Insurance,

Technology, Pharma, Toy, Shipping, Hospitality, Food, Health & Beauty, Fitness, Theatrical, Retail, Pet Care, Home Improvement, Beer & Wine,

Spirits, Armed Forces, Clothing, Travel,

Home Furnishing, Packaged Goods, Healthcare, Outdoor, Gaming,

Energy Drinks, Education, Industrial

88%

12%

External client ad campaigns Network Tune-In ads

988 Total Campaigns In 3Q15

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




2.0

4.5

1.0

Ad Opportunities Per BreakCANOE AD OPPORT. BY BREAK


Average Ad Opportunities per Break For campaigns that utilize

{ Frequency Capping }the average campaign caps at

Impressions per episode

2Pre-Roll Each

Mid-RollPost-Roll

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




If you would like additional video advertising information, insights or analysis please visit our website at www.TheVAB.com or feel free to contact us directly:

Sean Cunningham President & CEO212-508-1223

[email protected]

Danielle DeLauroSVP Strategic Sales Insights

[email protected]

Jason Wiese VP Strategic Insights

212-508-1219 [email protected]

Evelyn SkurkovichSr. Director, Strategic Insights

[email protected]

CONTACT US

Follow us on and like us on

INSIGHTS

PGM ENGAGEMENT


PENETRATION

AD REVENUE

PROGRAMMING GROWTH

MVPD VOD V. SVOD

PREFERENCE

USERS OF MVPD VOD

TIME SPENT

PROFILE/AGE



AD LIFT/ENGAGEMENT

AD IMPACT


DAI DEF

CANOE DAI FOOTPRINT

DAI NETWORKS

BENEFITS OF VOD DAI




VAB-Report-MVPDs VOD – Driving Engagement and … Video On Demand Is Now Available In 62% Of Homes...

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Transcript of VAB-Report-MVPDs VOD – Driving Engagement and … Video On Demand Is Now Available In 62% Of Homes...