State of Digital Video – Multiscreen Insights 2Q16

Device Penetration ...................................................................... 3-4

Reach by Device ........................................................................... 5-6

Video Viewing by screen ................................................................ 7

Live v. Timeshifted ........................................................................8

By Key Demo .................................................................................9

By Young Adults ..........................................................................10

By Ethnicity ............................................................................. 11-12

Computer/Smartphone Video Trends ................................. 14-18

App/Web Usage .....................................................................19-21

Strength of Cinema .................................................................23-25

Multi-Media Device Usage .....................................................27-30

Video Game Console Usage .................................................. 31-32

Contents

STATE OF DIGITAL VIDEO MULTI-SCREEN INSIGHTS – 2Q16 3

Households Embrace Various Technologies As Penetrations Surge – Especially Smart TVs

DEVICE PENETRATION

2Q16 Device Penetrations

HD TV94%

Smartphone83%

DVD76%

MVPD VOD63%

Tablet60%

DVR51%

SVOD53%

Game Console

44%

MultimediaDevice27%

EnabledSmart TV

24%

YOY diff % +3% +9% -4% +2% +15%

+2% +18% -4% +23% +33%YOY diff %

Source: Nielsen Total Audience Report, 2Q16


In Fact, Smart TV Growth Is Driven Across All Ethnically Diverse Consumers

Source: Nielsen Total Audience Report, 2Q16; penetrations

Composite 24% +33%

Black 20% +43%

Hispanic 28% +33%

Asian 34% +36%

Smart TVPenetration

Growth v. YAG

2Q16

DEVICE PENETRATION


With Alternate Viewing Platforms On The Rise, TV’s Reach Remains Strong

Source: Nielsen Total Audience Report, 2Q16; TV includes timeshifted TV

P2+ Monthly Reach/ 2Q16

REACH BY DEVICE

App/Web on smartphone

TV Video on smartphone

Internet on PC

Video on PC

DVD/Blue Ray Game Console

Multimedia Device

37%

29%28%

39%

58%64%

83%

93%


Viewing On TV Is Up 2.4 Million – Exceeding All Other Video Viewing Platforms

Source: Nielsen Total Audience Report, 2Q16; TV includes timeshifted TV; cinema= moviegoers

Number of P18+ Users Per Month: (in Millions)2Q16

50000

TV (includes timeshifted TV)

Video on Smartphone

Cinema

Video On PC

225.6

156.5

111.5

109.6

86.1

65.1

58.0

DVD/Blue-ray

Multimedia Device

Game Console

2Q14222.6

P18+ Monthly TV Reach (in Millions)

2Q15223.2

2Q16225.6

REACH BY DEVICE


TV Still Commands 89% of Total Video Time

Source: Nielsen Total Audience Report, 2Q16; TV includes timeshifted TV

Monthly Time Spent by Device Among P18+ (Hrs:min)

VIDEO VIEWING BY SCREEN

Video on Smartphone

1%

2:31

Video on PC 10%

17:14TV89%

151:53


…And 8 Out Of 10 Viewing Minutes Are Spent With Live TV Programming – Even Among Younger Adults

Source: Nielsen Total Audience Report 2Q16

Time Spent Per Month (Hrs:Min) 2Q16

P2+ P18-49 P25-54

% Time-shifted TV 16% 18% 18%

% Live TV 84% 82% 82%

K2-11 T12-17 P18-24 P25-34 P35-49 P50-64 P65+

% Time-shifted TV 16% 16% 16% 18% 19% 15% 13%

% Live TV 84% 84% 84% 82% 81% 85% 87%



Among Key Advertiser Targets, Television Commands The Majority Share Of Total Video Minutes

Monthly Time Spent by Device (Hrs:min)

Source: Nielsen Total Audience Report 2Q16; Total video=TV + internet video and smartphone video; In March 2016, Nielsen implemented a credited enhancement to improve reporting of mobile usage.

P18-34 91:55 25:51 3:37 76%

P18-49 111:43 21:57 3:01 82%

P25-54 129:55 20:18 2:26 85%

Watching Television

Watching Video on Computer

Watching Video on a Smartphone

TV’s Share of Total Video Time

Watching Television





Source: Nielsen Total Audience Report 2Q16; Total video=TV + internet video + smartphone video; In March 2016, Nielsen implemented a credited enhancement to improve reporting of mobile usage.

…and Among the Elusive Young, TV Captures More Than Three-Quarters Of Their Total Screen Time

Monthly Time Spent by Device (Hrs:min)

T12-17 67:05 12:58 n/a 84%

P18-24 76:55 25:22 4:32 72%

P25-34 102:31 26:07 2:54 78%

Watching Television



TV’s Share of Total Video Time

Watching Television





Across All Ethnicities, TV’s Reach Is Unquestionable – Even Among The Young

Source: Nielsen Total Audience Report 2Q16; Total video=TV; internet video and mobile video; In March 2016, Nielsen implemented a credited enhancement to improve reporting of mobile usage.

TV’s Share of Total Video Minutes By Demo By Ethnicity (Monthly)

K2-11 T12-17 P18-24 P25-34 P35-49 P50-64 P65+

Black 91% 93% 75% 75% 87% 93% 97%

Hispanic 84% 79% 68% 72% 83% 89% 92%

Asian n/a n/a 51% 63% 77% 88% 89%



All In All, TV Governs Majority Of Video Time

Source: Nielsen Total Audience Report 2Q16; Total video=TV + internet video + smartphone video; In March 2016, Nielsen implemented a credited enhancement to improve reporting of mobile usage.

TV’s Share of Total Video Minutes By Ethnicity (Monthly)/ P18+

3%

21%

3%

16%

2%11%

87% 81%

76%

Blacks Hispanics

Asians

TV

Video on PC

Video on Smartphone


Computer & Smartphone Video Trends


Fewer People Are Using The Internet on the Computer These Days, Especially Millennials


Absolute Change v. YAG in # of Users (OOO) of Internet With PC/ Monthly (2Q16 v. YAG)

P18-24 P25-34 P35-49 P50-64

P65+

847

K2-11 T12-17

-1,265

-863

-2,310

-1,677 -1,960

-1,008

COMPUTER/SMARTPHONE VIDEO TRENDS


…Which Has Led To Less Video Viewing On Their Computers – 12 Million Fewer P2+


Absolute Change v. YAG in # of Users (OOO) Viewing Video on PC/ Monthly (2Q16 v. YAG)

P2+ K2-11 T12-17 P18-24 P25-34 P35-49 P50-64 P65+

34%36%

26%

34%

51%

37%

52%

65%

-997

-954

-2,468

-2,611

-3,223

-2,294

-401

80

K2-11

T12-17

P18-24

P25-34

P35-49

P50-64

P65+

P2+ K2-11 T12-17 P18-24 P25-34 P35-49 P50-64 P65+

34%36%

26%

34%

51%

37%

52%

65%

-997

-954

-2,468

-2,611

-3,223

-2,294

-401

80

K2-11

T12-17

P18-24

P25-34

P35-49

P50-64

P65+

…But Those Who View, Spend Longer Period Of Time


% Change v. YAG in Monthly Time Spent with Computer Video (2Q16 v. YAG)


Smartphone’s Video Reach Propels To Its Highest Level – Over 156 Million Users

P18+ Monthly Reach of Smartphone Video (in millions)2Q16

Source: Nielsen Total Audience Report 2Q16; smartphone video=A18+; In March 2016, Nielsen implemented a credited enhancement to improve reporting of mobile usage.

116,363

132,310

156,531

2Q14 2Q15 2Q16



…Mainly Thanks To The Viewer Migration From Computer To Smartphone Video

Source: Nielsen Total Audience Report, 2Q16; smartphone= A18+; In March 2016, Nielsen implemented a credited enhancement to improve reporting of mobile usage.

Percent Change in # of Viewers P18+/Monthly/ 2Q16 v. YAG

Composite

Black

Hispanic

Asian

-9%

-12%

-10%

-7%

+18%

+13%

+9%

+13%

Computer Video Smartphone Video



Largely, Video Usage On Smartphone Is Up Considerably – Especially Among Blacks

Source: Nielsen Total Audience Report 2Q16; smartphone video=A18+; In March 2016, Nielsen implemented a credited enhancement to improve reporting of mobile usage.

% Change in Time Spent With Smartphone Video/Monthly

(2Q16 v. YAG)

% Change v. YAG in P18+ Monthly Time Spent by Ethnicity

(2Q16 v. YAG)

Composite

Hispanics

Blacks

Asian

30%

27%

63%

13%

A35-49 A50-64A18-24 A25-34

23%

47% 49%

9%

29%

A65+

Composite

Hispanics

Blacks

Asian

30%

27%

63%

13%

A35-49 A50-64A18-24 A25-34

23%

47% 49%

9%

29%

A65+



Smartphone App/Web Usage Rises To Its Highest Level To Date

# of P18+ (OOO) Using Smartphone App/Web Monthly

Source: Nielsen Total Audience Report 2Q16; In March 2016, Nielsen implemented a credited enhancement to improve reporting of mobile usage.

Composite Black Hispanic Asian

157,173 175,74

8202,324

19,82921,3

7028,775

30,60734,643

9,22110

,47411,

88524,883

1Q14 1Q15 1Q16

+15% +16% +13% +13%% Change v. YAG



App/Web Usage Is Driven Across The Board – Especially Among Adults 50+


% Change In App/Web Usage on Smartphone by AgeMonthly Time Spent 2Q16 v YAG

A65+

55%

A50-65

47%

A35-49

28%

A25-34

17%

A18-24

25%

69:00 63:3861:56 53:52 43:49 Time Spent(Hrs:min)

Usage Is Highest Among A18-49



…And Is Up Significantly Across All Ethnic Segments


Change in P18+ Video on Smartphone Monthly Usage2Q16 v. YAG

3,513,000 4,036,000 1,411,000

+23% +22% +25%

Black Hispanic Asian

% Change In Time Spent

Absolute ChangeIn Users


Strength Of Cinema…


Cinema Delivers Over 128 Million Viewers Monthly, Providing Additional Reach To Your Marketing Mix

1990’s

Source: Nielsen NCAR; 8/16; moviegoers for past month

P2+ 128,560,879

P18-49 91,967,772

P25-54 77,707,909

Cinema’s Reach

STRENGTH OF CINEMA


Cinema Reaches Advertiser’s Key Target – A18-49

Cinema Audience Profile


A55+

10.7%

A18-49

70.9%

T12-17

5.0%

CH2-11

8.3%

STRENGTH OF CINEMA


…And Recency is Key for Time Sensitive Marketing Campaigns – Over 60% of Movie-goers Attended In Past Week


When was the last time attended a movie in the theater?

20%

15%

10%

5%

17% 21%

6%

14%22% 23%

8%

16% 17%

7%

60% 63% 63%

86%

65%

59%

86%

In Past Week

2500

6%0% 3% 1% 3% 3% 1%

P2+ F12-17 M12-17 M18-34 F18-34 M18-49 F18-49

In Past Month Over A Month Ago Don't Know

STRENGTH OF CINEMA

With Rise Of Alternate Viewing Platforms, What Is State of Multi-Media Device & Gaming Usage?


More & More Are Viewing On Multimedia Devices As Reach Surpasses 86 Million Consumers – Up 9% From A Year Ago

Source: Nielsen Total Audience report 2Q16; multimedia device-usage of internet connected devices viewing source (includes apple tv, roku, google chromecast, smartphones and audio-video viewing sources (computer/latops, tablets, karaoke, video camcorders, security/digital cameras) that are connected to home TV set

# Of Users P2+ (OOO) on Multimedia Devices

1Q16

86,689

4Q15

79,701

3Q15

72,113

2Q15

66,491

1Q15

61,067

4Q14

53,236

42,693

2Q16

MULTI-MEDIA DEVICE USAGE


Time Spent Is Greatest Among Millennials

Source: Nielsen Total Audience Report 2Q16; multimedia device-usage of internet connected devices viewing source (includes apple tv, roku, google chromecast, smartphones and audio-video viewing sources (computer/latops, tablets, karaoke, video camcorders, security/digital cameras) that are connected to home TV set

Time Spent with Multimedia Devices/Monthly 2Q16(Hrs:min)

A50-65

24:17

A35-49

22:56

A25-34

23:52

A18-24

33:11

T12-17

32:51

CH2-11

20:35

25:50

A65+



However, Adults 18-24 Exhibit No Growth Year Over Year

Source: Nielsen Total Audience Report 2Q16; multimedia device-usage of internet connected devices viewing source (includes apple tv, roku, google chromecast, smartphones and audio-video viewing sources (computer/latops, tablets, karaoke, video camcorders, security/digital cameras) that are connected to home TV set

% Change in Time Spent with Multimedia Devices/Monthly2Q16 v. YAG

A50-65

4%

A35-49

16%

A25-34

9%

A18-24

13%

T12-17

0%

CH2-11

11%

18%

A65+



Significantly More Hispanics Have Embraced Multimedia Devices – More Than 6 Million More


Change in P2+ Multimedia Device Usage/Monthly 2Q16 v. YAG

+2,993,000 +6,055,000 +2,095,000

+29% +13% -4%

Black Hispanic Asian

% Change In Time Spent

Absolute ChangeIn Users



Game Console Usage Is Down Across The Board - More Than 4 Million Users In Total


T12-17

-810

A25-34

-1,013

A50-65

-479

A65+

-87

A2+

-4,335

CH2-11

-1,359

-392

A18-24

-198

A35-49

Absolute Change in Game Console Reach/Monthly2Q16 v. YAG

VIDEO GAME DEVICE USAGE


However, Time Spent Is Relatively Flat Among Younger Consumers But Up Double Digits With Adults 25+


A35-49

14%

A25-34

15%

A18-24

-2%

T12-17

1%

CH2-11

1%

23:44 43:50 33:57 33:58 18:28

A65+

1%

A50-64

16%

13:18 10:19Time Spent(Hrs:min)

% Change in Time Spent with Gaming Consoles/Monthly2Q16 v. YAG

Time Spent is Greatest With A12-34

VIDEO GAME DEVICE USAGE

CONTACT US For More Information Visit Us Online TheVAB.com

Sean Cunningham President & CEO

[email protected]

Danielle DeLauro SVP Strategic Sales Insights

[email protected]

Jason WieseVP Strategic Insights

[email protected]

Follow us: @VideoAdBureau

Like us: facebook.com/VideoAdvertisingBureau

Evelyn Skurkovich VP Strategic Research & Insights

[email protected]

Documents

State of Digital Video – Multiscreen Insights 2Q16