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THE NEW ADVERTISING MODEL
Summer 2006 Press Tour
David F. Poltrack Chief Research Officer, CBS
Corporation President, CBS VISION
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THE NEW ADVERTISING MODEL

• Commercial Ratings
• The DVR
• Program Engagement

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THE NEW ADVERTISING MODEL

• Commercial Ratings
• The DVR
• Program Engagement

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Commercial Rating IndicesPrimetime May 2006
Source NTI, NPOWER, 4/24/06-5/28/06
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Commercial Rating IndicesPrimetime Rank May 2006
Source NTI, NPOWER, 4/24/06-5/28/06
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Commercial Rating IndicesPrimetime Rank May 2006
Source NTI, NPOWER, 4/24/06-5/28/06
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Commercial Rating IndicesOther Network Dayparts
May 2006
Source NTI, NPOWER, 4/24/06-5/28/06
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THE NEW ADVERTISING MODEL

• Commercial Ratings
• The DVR
• Program Engagement

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The DVR
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The DVR

• The new technology from TiVo and Replay provides
  the ultimate in television convenience, it will
  spy on you, destroy prime time and shatter the
  power of the mass market
• Boom Box, Michael Lewis New York
  Times Magazine August 13, 2000

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The DVR
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The DVR
DVR Penetration 2003 3 2004 5 2005
8 2006 12-15
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Total Day Viewing DVR Households Shifted
Viewing by Day of Week
March 2006
Among DVR households, over 10 of total viewing
to Total Day on Monday - Wednesday were playback
minutes
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Primetime Viewing DVR Households Shifted
Viewing by Day of Week
March 2006
Among DVR households, 18.1 of total viewing to
Primetime on Tuesday were playback minutes
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DVR Playback by Delay IncrementTotal Day Viewing
Monthly Total
March 2006
Same-day playback accounts for 66 of all
playback minutes up to 7 days.
Delay from Record to Playback (in Days where not
noted)
Same day equals 3AM collection time
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DVR Playback by Delay IncrementPrimetime Viewing
Monthly Total
March 2006
Same-day playback accounts for 61 of all
playback minutes up to 7 days.
Delay from Record to Playback (in Days where not
noted)
Same day equals 3AM collection time
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DVR Playback by Delay IncrementPrimetime Viewing
April, 2006
Same-day playback accounts for 66 of all
playback minutes up to 7 days.
Same day equals 6AM collection time
Delay from Record to Playback (in Days where not
noted)
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DVR Playback by SourcePrimetime Viewing
Monthly Total
Share of Viewing - Playback
Percent of Viewing Activity
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DVR SURVEY - CBS
FAST FORWARD THROUGH COMMERCIALS
Source TV ENTERTAINMENT PANEL March 2004
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DVR ACTIVITY-NIELSEN
FAST FORWARD THROUGH COMMERCIALS
Source NTI, NPower, Commercial Minute analysis,
Playback Only, April 2006
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DVR SURVEY - CBS
COMMERCIAL SKIPPING

• 21 of those who skip commercials report
  recalling one or more commercials skipped
• On average these respondents provided category
  recall for two ads and brand recall for one ad

Source TV ENTERTAINMENT PANEL 10/31/04-11/14/04
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DVR SURVEY InsightExpress
COMMERCIAL SKIPPING
Source Demystifying Digital Video Recorders
InsightExpress Quarter 1, 2004
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• MILLWOOD-BROWN DVR AD IMPACT STUDY 2006

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THE NEW ADVERTISING MODEL

• Commercial Ratings
• The DVR
• Program Engagement

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Program Engagement ScoresIAG Research
Primetime 2005-06 Averages
Source IAG Research Primetime Returning to
Fall 2006 Programs, Originals Only, Excludes
Sports 9/19/05-4/30/06
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Brand Recall Scores IAG Research
Primetime 2005-06 Averages
Source IAG Research Primetime Returning to
Fall 2006 Programs, Originals Only, Excludes
Sports 9/19/05-4/30/06
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Program Engagement ScoresIAG Research
Primetime - 2005-06 Ranks
Source IAG Research Primetime 2005-06
Programs, Originals Only, Excludes Sports
9/19/05-4/30/06
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THE NEW ADVERTISING MODEL
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THE UNCOUNTED AUDIENCE
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THE UNCOUNTED AUDIENCE
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THE UNCOUNTED AUDIENCE
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THE UNCOUNTED AUDIENCE
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THE UNCOUNTED AUDIENCE
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THE UNCOUNTED AUDIENCE
How to extract value from each member of the
audience
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THE UNCOUNTED AUDIENCE
How to extract value from each member of the
audience ADDRESSABILITY
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ADDRESSABILITY

• Sell broad target audience to Advertiser 1
• Sell leftover audience to Advertiser 2
• Charge ad avoiders for ad-free viewing

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THE NEW ADVERTISING MODEL

• DVR playback adds viewers
• Commercial audience measurement meets advertiser
  need for accountability
• Extended home measurement adds college students
  to reported audience
• Engagement and ad recall measures offer proof of
  performance
• Marketing value of television advertising is
  reinforced
• Broadcast advantage over cable is enhanced

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