Wednesday, January 16, 2002

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PPM Research Update
To BBM Shareholders 24 November 2003
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We used to measure places now we measure
people.
Cam Cowie V-P Craig Broadcasting TVEC Member
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Vive la difference!

• Existing Currency
• Push button, wired

PPM Passive, wireless
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Todays Agenda

• Why PPM, and why now?
• How Does it Work?
• The Numbers and Results to Date
• FAQ
• Your Questions

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The Need A measurement system designed with
broad user input

• Circa 1988 Urged by advertisers, agencies and
  broadcasters to be
• Personal discrete demographic data
• Near Passive avoid reliance on recall
• Portable capture exposure to all media messages
• Single source optimize planning and scheduling
• Affordable large samples, robust databases
• Digital-Ready measure evolving technologies

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The Idea A meter based on audio encoding
technology
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The Result - 2003 PPM System The product of
more than a decade of R D
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The PPM System (version 3.0)Send and receive the
code its that simple
Recharging Unit
Encoder
Portable People Meter
Data Collection Unit
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PPM Delivery PackageNo installers needed just
plug and go
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Advances Delivered by PPM
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Advances Delivered by PPM
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Predictions Are Coming TrueThe intensity and
pace of technological change is increasing

• Circa 1988 the advertisers, agencies and
  broadcasters said, Develop a meter system that
  can handle digital evolving technologies.
• 2003 The future is now

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Consumers Unwired and FreeWe need to follow
them!

• Stop and think.in the past few years
• Wired world became cellular
• DVD killed VCRsDVD replaced by chipsand both
  can be played in any computer
• Laptops everywhereDVD and TV-capable
• Wireless internet access everywhere
• LCD displays merge computers and video into one
  device
• Live TV onboard Westjet
• TVs are everywhere.think about where you can now
  watch

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The Future is Now!

• The Sharp Wireless Aquos (1,700) Watch LCD TV up
  to 200 feet from base station

Panasonic HDTV with built in cable boxes. No more
access to cable boxes for audience.
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The Future is Now!

• The Panasonic DVR-810H has an 80 hour TiVo
  recorder and built in DVD burner to let you
  playback anywhere there is a DVD player

TekPanel 300650030 inch LCD television, PC
built in, recorder built ininternet capableand
100 wireless
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The Future is Now!

• MobiTV, a new cell phone service delivers TV to
  PCS cell phones. Includes cable channels plus
  internet-only network programs - commercials and
  all.

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The Future is Now!

• Both Sharp and Sony have announced by 2005 most
  televisions will be plasma, LCD projection, DLP,
  or flat screen

The Hewlett Packard and Gateway Media Center
computers with TiVo that can stream to your
television 1399 available now
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The Future is Now!

• The Archos AV320 and RCA Lyra portable video
  recorders record up to 40 hours of video for
  fully portable playback 499 US available now

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The ProblemWired, pushbutton meters will soon be
inadequate

• Pushbutton meters near their technological limit
• New technologies moving from the early adopters
  to mainstream very quickly
• If one television in the home cannot be measured,
  the home cannot be measured

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and a Practical Matter

• Where does a meter go?
• What about aesthetics?

Will panelist allow a device hooked up to their
new plasma TV?
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PPM Development Timeline
24 hr battery
2004
3 oz PPM
Patented motion-based PPM compliance
Portable recharger, modem
6 oz PPM
Backpack PPM
PPM Accessories
15 hr battery
8 oz PPM
1990
Brick-sized PPM
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How Does the PPM Data Look?
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PPM Data Makes Sense AMA, (000), M-S 2a-2a,
Individuals 2
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PPM Data Makes SenseAMA (000), M-S 7-11 pm,
A25-54
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Montreal EM Panel Status by Household Size
Percentage
Source PPM Meter Services Nov. 6, 2003
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Quebec Balance Panel Status by Household Size
Percentage
Source PPM Meter Services Nov. 6, 2003
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Montreal EM Panel Status by Reception Type
Percentage
Source PPM Meter Services Nov. 6, 2003
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Quebec Balance Panel Status by Reception Type
Percentage
Source PPM Meter Services Nov. 6, 2003
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Daily In-Tab Rates as a Percentage of PPMs in
Production

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Median PPM First Undocked Time vs. Last Docking
Time, by Demographic Group, Quebec Franco,
Weekdays
Hours
Source PPM Meter Services Sept. 29 Oct. 5
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Median PPM First Undocked Time vs. Last Docking
Time, by Demographic Group, Quebec Franco,
Weekends
Hours
Source PPM Meter Services Sept. 29 Oct. 5
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Median Weekday PPM Time in Motion vs. Undocked
Time, by Demographic Group, Quebec Franco
Hours
Source PPM Meter Services Sept. 29 Oct. 5
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Median Weekend PPM Time in Motion vs. Undocked
Time, by Demographic Group, Quebec Franco
Hours
Source PPM Meter Services Sept. 29 Oct. 5
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Average Hours Viewed by Carrying Time, Age/Sex
Hours
Source PPM Meter Services Oct. 27 Nov. 2
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Corresponding Sample Size by Demographic Group
for Average Hours per Capita by Carrying Time,
Quebec Franco
Sample Size
Source PPM Meter Services Oct. 27 Nov. 2
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Average Hours Viewed by Carrying Time, by Age/Sex
Hours
Source PPM Meter Services Oct. 27 Nov. 2
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Corresponding Sample Size by Demographic Group
for Average Hours per Capita by Carrying Time,
Quebec Franco
Sample Size
Source PPM Meter Services Oct. 27 Nov. 2
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• So, how does the Passive Meter Compare with the
  Pushbutton Meter?

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Pushbutton Meter vs. Passive MeterWhat
differences are anticipated?

• Passive Meter will produce higher audience
  estimates
• Increases anticipated
• Noon, fringe, primetime
• Younger age groups
• Lighter viewing quintiles
• Cable and Satellite
• Larger households

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Passive Meter vs. Pushbutton MeterMeters show
similar patterns with increases where expected
Sept 1 Oct 5, 2003
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Passive Meter vs. Pushbutton Meter Younger Age
Groups show greater lift
Viewing Index M-S, 2a-2a
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Passive Meter vs. Pushbutton MeterLighter
viewing quintiles show greater lift
AMA, A18, By Quintile
Sept 1 Oct 5, 2003
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Passive Meter vs. Pushbutton MeterCable and
Satellite show greater lift
Avg. PUT Levels M-S 2a-2a, A18 Sept 1 Oct 5,
2003
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• FAQ

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The differences are interesting has BBM looked
deeper into this?

• Ongoing data intensive, comprehensive,
  peer-viewed, research
• Sample composition consistent methodology, ES
  and recruitment
• Incidental viewing - linked to different
  operational definition of viewing opportunity
  to hear
• Non-compliance - are panelists doing what they
  are being asked to do?

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So, if panelist falls asleep in front of the TV,
will the PPM continue to record the viewing?

• Yes, PPM will continue recording
• Equally true of Push button system
• Unlike Pushbutton meter, we know if the meter is
  not in motion or is docked
• BBM could limit in-dock viewing through an edit
  rule, use panel management, or both

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And, will PPM record viewing if the panelist is
in an adjacent room?

• Audio at a level that could command a viewers
  attention, PPM will report the viewing
• Out of hearing range PPM will stop reporting
  viewing, automatically
• Pushbutton systems also record viewing when
  panelists leave the room and fail to push their
  buttons

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OK, so, what is non-compliance and how does it
account for some of these differences?

• On a button pushing panel, impossible to detect
  all non-compliers
• Difference between PUT levels increases with
  household size
• Passive system reveals non-compliance in larger
  homes even fatigue study not able to reveal
  non-compliance

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Avoiding Latent ViewersThe real reason Passive
Meter produces higher ratings
Quebec Fr. Sept 1 Nov16, 2003
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Avoiding Latent ViewersThe real reason Passive
Meter produces higher ratings
Quebec Fr. Sept 1 Nov16, 2003
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Median PPM Time in Motion by Household Size
Invariant across household size
Hours
Quebec Franco Source PPM Meter Services Sept. 29
Oct. 5
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How is the process of making PPM commercial
moving forward?

• Edit Rules Committee - Paul Street, CTV, Chair,
  reviews motion by status, qualification edits,
  etc reports to GoWhen and TVRC
• GoWhen Committee Special group of Industry
  reps charged with reviewing all viewing data,
  edit rules, etc reports to TVRC
• TVRC Paul Street, Chair, overall mandate to
  review, recommend and approve any methodological
  enhancements by BBM TV

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SummaryAs weve seen

• PPM Satisfies the needs defined by Advertisers,
  Agencies and Broadcasters over a decade ago
• Le marche it works!
• The differences between the push button wired
  meter and the passive wireless meter are as
  expected
• Overlap of old and new methodologies will support
  a smooth transition

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The time has come to stop measuring places and
begin measuring people.
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Thank You