MBPT Spotlight: CNN Ready To Start Including Out-Of-Home TV Viewing Data in Its Fall Sales Guarantees - Broadcasting & Cable

MBPT Spotlight: CNN Ready To Start Including Out-Of-Home TV Viewing Data in Its Fall Sales Guarantees

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CNN
and HLN sales teams are ready to begin meeting with advertisers and
their media agencies to present beta testing results of Management
Science Associates (MSA) post buy reports. The results will include out-of-home
viewing data tied into TV media buys that show the audience lift
resulting from additional viewers from that platform.

The
special MSA reports incorporating the out-of-home data will reflect CNN
and HLN programming numbers from May and June. CNN plans to begin
basing its TV audience guarantees to advertisers with out-of-home data
included beginning in October. The MSA post reports reconciling that
October viewer data will be available to advertisers in December.

Management
Science Associates provides post TV buy reports to cable networks that
match commercials to demographics of the audience that watched them.

There
is a lag time of about four or five weeks to get the standard MSA
reports, which confirm that each marketer's commercials aired, the
ratings each garnered and how that compared to the guarantee offered by
the network. Tapping into the out-of-home data will add some additional
lag time. In the case of CNN, MSA will produce its traditional report
and then issue a revised report incorporating the additional data on
which CNN will base its guarantees.

While
networks have ordered MSA reports that include out-of-home data for
special event programming such as the Olympics, Super Bowl or World Cup,
Howard Shimmel, senior VP, ad sales & sports research at Turner
Broadcasting, says, "To the best of my knowledge no network has
incorporated out-of-home viewing data on an ongoing basis for regular
programming into their MSA reports."

CNN
has done out-of-home studies before, which it has used as part of its
sales pitches highlighting the network's additional viewership lift. But
this is the first time it will appear in MSA reports and the network
will actually attempt to monetize it.

Making the Most of Data

The
out-of-home results are compiled by combining Arbritron Portable People
Meter data with Nielsen data. CNN has labeled the program CNN
All-Screen. The network announced the creation of CNN All-Screen in the
spring and the partnership with Nielsen and Arbitron. In addition
to measuring out-of-home viewership for all programming, the reports will also
measure viewership on other platforms outside of traditional TV that CNN
will use to set its ad guarantees and sell against.

The MSA beta testing reports find out-of-home boosts CNN viewership by about 30%, Shimmel says.

Some
of the initial beta testing data found that CNN's unique audience
increased by 11% in April compared to Oct. 2012, when other platforms
were added. In addition to the lift CNN got from out-of-home among
adults 25-54, the network also got a 10% lift from viewers online and a
27% increase from mobile viewers, which included a portion of younger
viewers. The data also showed that 9% more adults 25-54 in April were
viewing CNN on more than one platform compared to Oct. 2012.

The
April All-Screen data also showed that the median age of the CNN TV
in-home viewer is 59, but the CNN TV out-of-home viewer has a median age
of 51. The CNN online viewer has a median age of 45 and the CNN mobile
viewer has a median age of 37. Shimmel says the data shows that a large
portion of younger viewers initially access CNN via mobile phones.

"We've
always known younger viewers were a big part of our audience, now we
can quantify it and monetize it," says Greg D'Alba, president, CNN News
Networks and Turner Digital Ad Sales & Marketing, who points out
that a lot of the programming changes being made at the network are
geared toward bringing in more younger viewers.

D'Alba
says a large portion of the out-of-home viewers are business travelers
"who are a highly desirable group for many different blue chip ad
categories."

The Benefits of Transparency

"The importance of data transparency in today's advertising
marketplace has grown and we are going to provide as much data as
possible to our advertisers," Shimmel adds. "We will be telling our advertisers how much
more audience they will be getting from out-of-home viewing and
documenting it for them on a regular basis. It's another tool to help
our advertiser and agency partners better plan and optimize their
TV-based campaigns."

The
media agencies have not yet seen the data and might have some
reservations about a portion of the out-of-home data that includes TV
viewing in airports and other locations where the sound is off. But the
combination of Arbitron and Nielsen data included in the officially
prepared MSA post buy reports add credibility to the CNN sales pitch.

D'Alba
believes the inclusion of out-of-home data that is reconciled by the
MSA reports will help boost CNN's scatter advertising sales once the
official reports are made available later this year.

Both
CNN and HLN have good stories to tell without out-of-home viewers added
in. During the second quarter, CNN passed MSNBC in viewers for both
total day and primetime for the first time since 2009. According to
Nielsen data, during the second quarter in primetime, CNN averaged
755,000 viewers, up 56% over the same period last year, while HLN
averaged 569,000 viewers, up 75%.

In
July, CNN averaged 656,000 viewers in primetime, up 26% over July 2012,
while HLN averaged 466,000 viewers, up 55% over July 2012.

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