1Copyright © 2013 The Nielsen Company
ADVERTISING
& AUDIENCES
STATE OF THE MEDIA
APRIL 2013
STATE OF THE MEDIA | APRIL 2013
2 STATE OF THE MEDIA | ADVERTISING & AUDIENCES
Money...
It influences just about all our decisions, from the products we purchase
every day to when the bills are paid. In a landscape where technology
offers a myriad of viewing options, from traditional TV to the latest
wireless devices, earning power also affects when we view, how much we
view, and even what else we’re doing when viewing.
AND SCHOOL
But it’s not the only factor. For this year’s Advertising and Audiences
Report, Nielsen took a look at what drives people’s viewing habits. We
found that, whether it be streaming a kids’ program from the backseat
of an SUV or sitting in front of a TV at home, traditional and innovative
ways to watch are linked to education as well as income.
3Copyright © 2013 The Nielsen Company
Hands
Across America
WHAT DEVICES DO WE OWN?
Emerging technologies tend to follow a similar path into the hands of
consumers. When the newest devices – from the smartest smartphones
to ultra-high-definition TVs – first hit the market, adoption is limited to
those with both the desire and the discretionary income to buy them.
Most of us, however, wait until price points come down to earth, at
which point market penetration broadens.
4 STATE OF THE MEDIA | ADVERTISING & AUDIENCES
Device Penetration By Household Income
84% [-1.9%]
74% [+0.1%]83% [-7.9%]88% [-2.1%]88% [+2.3%]91% [+0.1%]
DVD - 95.1M
46% [+9.0%]
25% [+12.8%]41% [+8.6%]52% [+8.7%]60% [+11.0%]68% [+6.0%]
DVR - 50.7M
45% [-0.2%]
32% [+1.5%]41% [-6.3%]48% [-2.5%]55% [+7.4%]57% [+0.9%]
GAME CONSOLES - 50.5M
ALL HOMES
LESS THAN $3OK
$30K - $50K
$50K - $75K
$75K - $100K
$100K +
[ + XX% ]INDICATES
YEAR-OVER-YEAR
CHANGE ( 2012-13 VS 2011-12)
5Copyright © 2013 The Nielsen Company
DISTRIBUTION
of Primetime
TV Viewing
HOLDING STEADY
Sometimes the best news is no news at all. Primetime viewing remains
generally stable and made modest gains among middle class homes. Homes
with the highest incomes netted one fifth of primetime TV viewing. Further, the
primetime viewing number for homes headed by a college graduate was over
25 percent.
Less than $30K per year	 23.8%	 26.0%	 26.9%	
$30K - $50K per year	 22.4%	 21.5%	 20.4%	
$50K - $75k per year	 19.2%	 20.1%	 20.3%	
$75k - $100K per year	 12.4%	 11.7% 	 11.3%	
Over $100K per year	 22.2%	 20.6%	 21.1%	
	
INCOME 2010 / 2011 2011 / 2012 2012 / 2013
Distribution of Primetime TV Viewing By Income (P2+)
No High School Diploma 14.2%	 14.2%	 14.6%
High School Graduate	 28.3%	 27.4%	 28.5%
	1 - 3 Years College	 31.6% 	 32.6%	 31.4%	
4+ Years College	 26.0%	 25.7%	 25.6%	
	
EDUCATION 2010 / 2011 2011 / 2012 2012 / 2013
DISTRIBUTION of Primetime TV Viewing by EDUCATION (P2+)
6 STATE OF THE MEDIA | ADVERTISING & AUDIENCES
VIEWING FROM
MORNING ’TIL
NIGHT…
Whether catching the news, getting sports highlights, or tuning in to
their favorite shows, consumers are eager to watch TV. Traditional TV
viewing differs throughout the day among households with different
income and education levels. The numbers are further complicated
by the fact that a subset of the morning audience leaves for work in
the middle of that daypart. That said, almost all households share an
arc that peaks at primetime.
P2+ TV USAGE DURING SELECT PARTS OF THE DAY
LATE NIGHTPRIME TIMEDAYTIMEMORNING
38 Mins
47 Mins
40 Mins
38 Mins
33 Mins
29 Mins
40 Mins
43 Mins
41 Mins
30 Mins
1 Hr 12 Mins
1 Hr 23 Mins
1 Hr 16 Mins
1 Hr 12 Mins
1 Hr 5 Mins
1 Hr 1 Mins
1 Hr 19 Mins
1 Hr 20 Mins
1 Hr 12 Mins
1 Hr 3 Mins
1 Hr
1 Hr 31 Mins
1 Hr 9 Mins
56 Mins
44 Mins
37 Mins
1 Hr 24 Mins
1 Hrs 16 Mins
1 Hr 2 Mins
40 Mins
32 Mins
44 Mins
36 Mins
31 Mins
26 Mins
23 Mins
40 Mins
39 Mins
34 Mins
24 Mins
All Homes
Less than $30K
$30K - $50K
$50K - $75K
$75K - $100K
Over $100K
NO High School
DIPLOMa
HIGH SCHOOL
GRADUATE
1-3 YEARS College
4+ YEARS College
INCOME
EDUCATION
12
6
39
6
9
12
6
39
12
6
39
3
12
7Copyright © 2013 The Nielsen Company
TIMESHIFTING
MORE THAN BEFORE
Not surprisingly, consumers want what they want when they want
it – and some more than others. While timeshifting has continued to
increase among all income levels, higher earners timeshift the most.
30.5%
EARN MORE
THAN $100k/YEAR
21.9%
EARN
$50K - $75K/YEAR
14.8%
EARN LESS THAN
$30K/YEAR
Distribution of Time Shifting
By Income (P2+)*
Daily Time Spent timeshifting IN MINUTES P2+
ALL
HOMES
LESS THAN
$30K PER YEAR
$50K - $75K
PER YEAR
$30K - $50K
PER YEAR
2011-2012
23 MINS
$100K +
PER YEAR
$75K - $100K
PER YEAR
2012-2013
25 MINS
2011-2012
15 MINS
2012-2013
16 MINS
2011-2012
21 MINS
2012-2013
25 MINS
2011-2012
25 MINS
2012-2013
27 MINS
2011-2012
27 MINS
2012-2013
27 MINS
2011-2012
28 MINS
2012-2013
30 MINS
19.2%
EARN
$30K - $50K/YEAR
13.7%
EARN
$75K - $100K/YEAR
* Based on total day
8 STATE OF THE MEDIA | ADVERTISING & AUDIENCES
Subscribing
To New Ways
WHO ARE THE OPPORTUNISTIC
VIEWERS LEADING THE RISE OF
SUBSCRIPTION-BASED STREAMING
SERVICES?
There’s no denying that online video subscription services have made
waves. For the Advertising & Audiences Report, Nielsen looked at
homes that had a credit or debit card charge in the last 12 months to a
service such as Netflix, Hulu Plus, Amazon Prime, Blockbuster.com, or
Vudu. Not surprisingly, perhaps, wealthy households ($100K +) were
85 percent more likely to have a streaming service than the rest of the
population. It’s also noteworthy that homes with tablets over-index
significantly in terms of their subscription-based streaming service.
% OF SVOD HOUSEHOLDS
INCOME <$50K
INCOME $50K - $100K
INCOME $100K +
PROFESSIONAL
CLERICAL
BLUE COLLAR
NON-WORKING
PACIFIC
CENTRAL
EASTERN
DO NOT HAVE KIDS
TABLETS
20%
43%
37%
63%
26%
26%
49%
29%
42%
14%
17%
28%
INDEX TO TOTAL POPULATION
47
115
185
102
128
94
92
166
150
94
63
89
9Copyright © 2013 The Nielsen Company
TABLETS & TVs
A MATCH MADE IN TECH HEAVEN
Tablets are enhancing consumers’ TV viewing experience during both
the program and commercial breaks. Consumers love to visit social
networks while watching. But that’s not all they do. Over a third go
shopping and 20 percent look up information on an advertised product
while they watch.
Simultaneous TV / Tablet Activities, Q3 2012
36%
Visited a Social
Networking site
during the program
33%
Shopped
while viewing
29%
Looked up information
related to the TV program
I was watching
36%
Visited a Social
Networking site during
a commercial break
20%
Looked up product
information for an
advertisement I saw on TV
13%
Looked up coupons
or deals related to an
advertisement I saw
10 STATE OF THE MEDIA | ADVERTISING & AUDIENCES
WHO IS WATCHING
VIDEO ONLINE?
Not all streaming services are equal, as attested to by the way groups
at different income levels use them. While YouTube has an oversized
lead over Netflix and Hulu in terms of average unique viewers, there is
a distinct difference in the viewing experience. Netflix and Hulu serve
viewers looking for long form, TV-like content.
2012 Unique Viewers Per Month
By Household Income (Millions of Viewers)
2.8M
3.7M
3.2M
2.2M
1.9M
1.6M
3.0M
2.4M
1.5M
1.9M
25.2M
34.1M
31.3M
21.6M
17.0M
YOUTUBE
( 31.7B )
4.3B
8.7B
6.8B
4.1B
6.3B
HULU
( 4.2B )
.5B
1.4B.9B
.5B
.8B
NETFLIX
( 7.4B )
YOUTUBE
( 132.8M )
HULU
( 14.3M )
NETFLIX
( 10.8M )
.8B
2.3B
1.5B
.8B
1.7B
$0K - $25K
$25K - $50K
$50K - $75K
$75K - $100K
$100K+
NO RESPONSE
.1B .3B 1.5B
.5M .4M 3.6M
2.8M
3.7M
3.2M
2.2M
1.9M
1.6M
3.0M
2.4M
1.5M
1.9M
25.2M
34.1M
31.3M
21.6M
17.0M
YOUTUBE
( 132.8M )
HULU
( 14.3M )
NETFLIX
( 10.8M )
$0K - $25K
$25K - $50K
$50K - $75K
$75K - $100K
$100K+
NO RESPONSE
.5M .4M 3.6M
YouTubeNetflixHulu
2.8M
3.7M
3.2M
2.2M
1.9M
1.6M
3.0M
2.4M
1.5M
1.9M
25.2M
34.1M
31.3M
21.6M
17.0M
YOUTUBE
( 31.7B )
4.3B
8.7B
6.8B
4.1B
6.3B
HULU
( 4.2B )
.5B
1.4B.9B
.5B
.8B
NETFLIX
( 7.4B )
YOUTUBE
( 132.8M )
HULU
( 14.3M )
NETFLIX
( 10.8M )
.8B
2.3B
1.5B
.8B
1.7B
$0K - $25K
$25K - $50K
$50K - $75K
$75K - $100K
$100K+
NO RESPONSE
.1B .3B 1.5B
.5M .4M 3.6M
2012 Average monthly Time Spent
BY HOUSEHOLD INCOME (Billions of Minutes)
YouTubeNetflixHulu
11Copyright © 2013 The Nielsen Company
Show Me
the Money
HOW MUCH IS SPENT ON
PRIMETIME ADVERTISING?
From getting into the minds of criminals to dealing with the fallout of a
political scandal, TV dramas run the content gamut. Given that range,
and their nail-biting or heart-tugging nature, it’s no surprise primetime
remains attractive to advertisers hoping to reach viewers. In 2012,
advertisers spent almost 40% of their total TV dollars in primetime.
$7.8B DRAMA
$5.6B REALITY
$5.6B SPORTS
$5.6B OTHER
$2.7B COMEDY
$2.2B NEWS
2012 PRIMETIME TV AD SPEND BY GENRE
Total
TV Ad spend
rose from $71.8
billion in 2011
to $76.5 billion
in 2012—a SEVEN
percent INCREASE.
12 STATE OF THE MEDIA | ADVERTISING & AUDIENCES
Lasting
Impressions
WHAT MAKES AN
EFFECTIVE ADVERTISEMENT?
Getting consumers to remember your ads requires some of the same
qualities that make for success in TV’s best shows. Wit, humor, and creativity
mark out the best-remembered new branded integrations of 2012.
Most RECALLED New Branded
Integrations in 2012
#1 - Subway Restaurants
Show: Chuck, Network: NBC
Description: A new Subway restaurant is opened in a Buy More
department store.
Brand Recall Index: 2.18*
#2 - Subway Restaurants
Show: Community, Network: NBC
Description: A new Subway restaurant is opened in the
Greendale’s cafetorium.
Brand Recall Index: 2.13
#3 - J. Crew Clothing
Show: Glee, Network: FOX
Description: Marley’s mom sews a J.Crew tag onto a second-hand sweater.
Brand Recall Index: 2.11
#4 - Subway Restaurants
Show: Community, Network: NBC
Description: Shirley says that Greendale Community College listened to her
dream of owning a sandwich shop.
Brand Recall Index: 2.05
#5 - Porsche Luxury Cars
Show: Two and a Half Men, Network:CBS
Description: Alan tells Robin and Bridget that he’d vote with them for a brand
new red Porsche, then he is shown driving one.
Brand Recall Index: 2.0
*Read as: Viewers were 2.18 times more likely to recall the brand with this ad than with the average ad.
MOST
LIKED NEW
COMMERCIALS
in 2012
One of the top five
characteristics of ads
successful in terms
of brand linkage, and
a constant that runs
through each ad below, is
the fact that the advertiser
established an “ownable”
creative concept — from
a signature character to a
theme that spans across a
campaign.
#1 - Ancestry.com
Ellen Harrington
Length: 15 seconds
#2 - Wendy’s
My dad Dave Thomas
Length: 30 seconds
#3 - JCPenney
No receipt no return
Length: 60 seconds
#4 - Ocean Spray
Cran-Cherry George
Washington
Length: 15 seconds
#5 - JCPenney
Why so many coupons?
Length: 60 seconds
13Copyright © 2013 The Nielsen Company
About Nielsen
Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with
leading market positions in marketing and consumer information, television and other media
measurement, online intelligence, mobile measurement, trade shows and related properties.
Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA
and Diemen, the Netherlands.
For more information, visit www.nielsen.com.
Copyright © 2013 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo
are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and
service names are trademarks or registered trademarks of their respective companies. 13/6117
SOURCING
Share of TV Universe by Income
Less than $30K per year – 31.3%	 $30K - $50K per year – 18.6%
$50K - $75K per year – 17.6%	 	 $75K - $100K per year – 11.5%
Over $100K per year – 21.0%
Share of TV Universe by Education
No High School Diploma – 11.9%	 1-3 Years College – 31.4%
High School Graduate – 26.1 %	 4+ Years College – 30.7%
Based on Nielsen’s 2012/2013 TV Universe Estimates.
PAGE REFERENCES
4 Nielsen NPOWER; Device penetration based on Household Installed counts (2011-2012 vs. 2012-2013).
5 Nielsen NPOWER; Distribution of Persons 2+ viewing based on Traditional TV (PUT). Based on share
of summed Projections. Season to Date: 9/20/10 – 1/30/11, 9/19/11 - 1/29/12, 9/24/12 - 1/27/13.
6 Nielsen NPOWER; Daily time spent in hours and minutes viewed by daypart for Traditional TV (PUT).
Season to Date: 9/19/11 - 1/29/12, 9/24/12 - 1/27/13.
7 Nielsen NPOWER; Daily time spent timeshifting (DVR Playback viewing source) in hours and minutes.
Season to Date: 9/19/11 - 1/29/12, 9/24/12 - 1/27/13.
Nielsen NPOWER; Distribution of time-shifting by income (P2+), DVR Playback viewing source.
Based on share of summed Projections. 9/24/12 - 1/27/13.
8 Nielsen Buyer Insights, August 2012; SVOD (Subscription Video On Demand)
Among P18+ included Netflix, Hulu Plus, Amazon Prime, Blockbuster, Vudu.
9 Nielsen Mobile Connected Device Report, Q3 2012.
10 Nielsen Video Census, 2012 average unique viewers (total);
Nielsen Video Census, 2012 average time spent viewing in minutes (total).
11 Nielsen Ad*Views, 2012. National ad expenditures on broadcast and cable.
12 “Most Recalled New Branded Integrations in 2012;” Nielsen TV Brand Effect, Full Year 2012. 		
“Most Liked New Commercials in 2012;” Nielsen TV Brand Effect, Jan-Nov 2012.
14 STATE OF THE MEDIA | ADVERTISING & AUDIENCES