MediaImpressions_Apr 25 08qxp

Media Impressions Friday, April 25, 2008 The Power of Brands Just released this week by MEC’s global market research sibling, Millward Brown Optimor, was the 3rd annual BrandZ Top 100 Most Powerful Brands Global Study. Specifically, this year’s BrandZ report estimates that the combined “brand value” of all top 100 brands analyzed increased to a substantial total of $1.94 trillion for 2008, reflecting a +21.3% growth from the $1.60 trillion reported in 2007 (or more than 2X the increase resulting from 2006 vs. 2007 study (+10.6%)). Among the Top 5 global brands leading the list are Google who remains at the top of the chart again with a calculated brand value of $86.1 billion (+30% change vs. YAG), followed by GE at $71.4 billion (+15% change vs. YAG), Microsoft at $70.9 billion (+29% change vs. YAG), Coca Cola at $58.2 billion (+17% change vs. YAG), & China Mobile at $57.2 billion (+39% change vs. YAG). Relative to the Top 3 growth brands, Blackberry is the leader with a +390% increase (rank: 51/BV: $13.7 billion), Apple is next at a +123% growth (rank: 7/BV: $55.2 billion) and Amazon nearly doubled with +93% (rank: 61/BV: $11.5 billion). At the other end of the growth spectrum, the 3 brands that incurred the greatest loss in brand value year-to-year were: Motorola (chg: -30%/rank: 92/BV: $7.6 billion), Merril Lynch (chg: -16%/rank: 74/BV: $9.8 billion) and Home Depot (chg: -16%/rank: 40/BV: $15.4 billion). Top Trends Asian Brands - The Established vs. The Emerging: Seven brands in this year’s Top 100 come from the established or “mature” Asian economies: Hong Kong, Japan, & South Korea (Toyota, HSBC, Honda, NTT DoMoCo, Canon, Samsung & Nissan; and, their aggregate brand value increased by a moderate +7% in the last year (to over $121 billion). In comparison, the value of the four “emerging” Chinese brands - China Mobile (rank: 5/BV: $57.2 billion), ICBC (rank: 18/BV: $28.0 billion), China Construction Bank (rank: 31/BV: $19.6 billion) & Bank of China (rank: 32/BV: $19.4 billion) which made it to this year’s BrandZ Top 100, increased by a significant +51% (to over $124 billion). Notably, considering the overall national investment supporting this year’s Summer XXIX Olympiad being hosted by Beijing, China (Opening on 8/8/2008), it is of no surprise that these Chinese brands would be surging locally. As a result, it is predicted that it would be just a matter of time when these brands grow beyond the continental geography more and into a number of international countries. PAGE 1 The Power of Brands (continued) Continued Rise of the BRICs (Brazil, Russia, India & China): Overall, domestic brands from emerging economies are gaining noticeable momentum, with Chinese brands exhibiting strong performances (see above), as Russian-based mobile operator, MTS (BV: $8.1 billion), captured a rank of 89 in its first year out. Other BRIC non-top 100 brands to watch out for in future ranking reports include Russia’s Baltika (category: beer; BV: $1.1 billion) & Lukoil (category: motor fuel; BV: $851 million), and Brazil’s Brahma (category: beer; BV: $944 million). Technology Boom: The total technology sector (includes mobile operators), was represented by 30 brands this year, which accounted for over $800 billion in estimated brand value, up +32% on average vs. YAG, thereby, outperforming all other analyzed categories. Brand value growth was significant as the difference reflected an increase of more than $193 billion and more than 57% of the total increase estimated for the top 100 global brands. * Mobile Operators (+40%): To-date, mobile phones are considered ubiquitous as almost everyone has the use of a handset in some form or another. The extensive global use of this technology has primarily been attributed to the liberalization of the industry and the subsequent intense price pressure which has affected consumer subscription prices year on year. Specifically, the introduction of European-wide services led to increased competition. The arrival of 3G technology that provided features like video calling & game downloading were driving factors for category growth. Globally, all mobile operators’ key objective is aiming to strengthen their relationships with the subscribers and promote increased use of services. Technology (+ 29%): Growth in the technology category is driven by innovation, and increasingly, by the brand experience. Strong technology brands include not only consumer facing brands such as Google, Microsoft & Apple, but also the necessary related software, B2B and professional service brands that engage & implement the respective electronics, web facilities & so on. As depicted in earlier forecasts of Internet growth, the software industry has been benefiting from this increased use and experiencing double-digit revenue growth. BrandZ’s Top 100 Most Powerful Brands Global Study 2008 Category Brand Value Growth Categories that experienced growth in 2008 are ranked as follows: Category 1). Mobile Operators * 2). Technology * 3). Personal Care 4). Fast Food 5). Luxury 6). Beer 7). Insurance 8). Apparel 9). Coffee 10). Soft drinks 11). Financial Institutions 12). Retail 13). Bottled water 14). Cars 15). Motor Fuel 16). Spirits Brand Value Growth 40% 29% 27% 27% 24% 24% 23% 23% 18% 17% 16% 10% 9% 7% 5% na Note: The Personal Care category now incorporates deodorant brands into its scope; Financial Institutions have been separated from those in the Insurance sector; Spirits is a new category added to this report; * includes MEC Global adjustments to category brands. * Other Category Highlights Personal Care (+27%): Personal care brands that offer physical benefits beyond cleaning and hydrating, such as teeth-whitening and skin-firming, have been significantly growing around the world, especially in emerging markets. Specifically, these benefits have significantly influenced and helped shift traditional consumer perceptions of personal care products into the 21st century: today these products are more than toiletries, they are beauty products. A particular trend in the personal care category has been the development of spa-influenced products and brands that are commanding lucrative price premiums as well as aspirational goals. Fast Food (+27%): The introduction of healthier & higher quality alternatives into fast-food restaurant menus is paying off as consumers are returning to fast food restaurants, particularly in established markets. In emerging markets and especially in Asia, operators have been expanding as growth has been attributed to the aspirational status that Western brands traditionally hold (i.e., McDonald’s = rank: 8/BV: $49.5 billion). Specifically, KFC is one of the strongest food chains in China, purportedly thanks to its “new fast food” positioning, compared to coffee houses which have reached maturity in major markets as profits are no longer growing as fast as in previous years but are still substantial. PAGE 2 The Power of Brands (continued) How Brand Value is calculated “Brand Value is the financial value of a brand, defined as the sum of all earnings that a brand is expected to generate.” For the purpose of the BrandZ Top 100 brands’ ranking, brand value is determined in three key steps: 1. Intangible Earnings: Establish a company’s intangible earnings and allocate them to individual brands & countries of operation, based on publicly available financial data from Bloomberg, Datamonitor and Millward Brown Optimor’s proprietary research. 2. Brand Contribution: Determine the portion of intangible earnings attributable to brand alone, as opposed to other factors such as price. This metric, defined as “Brand Contribution”, reflects the share of earnings from a product or service’s most loyal consumers or users. For this second step, relative research-based loyalty data from the BrandZ proprietary database is utilized. 3. Brand Multiple: Project the brand value forward based on market valuations, the brand’s risk profile, and its growth potential. Data for this step is sourced from the BrandZ database, Bloomberg and Millward Brown Optimor’s own proprietary research. Using these growth inputs, the final metric available from the BrandZ ranking, Brand Momentum, and the index of the brand’s short-term growth potential are all created. Step 1: Intangible earnings Intangible corporate earnings allocated to each brand by country, based on company & analyst reports, industry studies, revenue estimates, etc. Step 2: Brand Contribution Portion of intangible earnings attributable to brand. Directly driven by BrandDynamics Loyalty Pyramid & Category Segmentation collected with the BrandZ Study. Step 3: Brand Multiple Brand earnings multiple. Calculated based on market valuations, brand growth potential & Voltage as measured by Brand Dynamics. Data sources: Data sources: Data sources: Luxury (+24%): The total (brand) value of the global luxury brands category is approximately worth $400 billion, and this figure is likely to grow to $2 trillion by the next decade, 2010. This dynamic increase is fueled by a growing number of consumers, especially from the number of emerging markets, who are fast becoming wealthy and establishing a “new luxury” trend. “New luxury” in this definition refers to products & services that deliver even higher levels of quality, taste, and aspiration. As a result, luxury brands have been extending their branding into travel & leisure and construction sectors via the development of branded hotels & residential complexes. In comparison, luxury brands in established markets are becoming under increased pressure to be more socially & environmentally responsible. (note: a recent report by the WWF criticized luxury brands for being “slow to recognize their responsibilities and opportunities.”) Beer (+24%): Despite the increased frequency of smoking bans and ever-growing competition from alternative alcoholic beverages, the brand value of the global beer category has grown +24% from YAG. Specifically, beer companies have been focusing distribution in emerging markets which continue to drive substantial growth for the entire category. Respectively, domestic beer brands from emerging markets are also growing, and the recent success of Brazilian brands Skol & Brahma exemplify this trend. In the U.S., the increased preference for imported premium beers and healthier options influenced a new section of beer to report on, “luxury imported light”, whose sales have been reported to be 2X as strong as those of regular imported beers. Overall, in developed major markets, as imported beers are experiencing strong growth, local beer brands have been facing stagnant volume sales. As a whole, brewing companies are consolidating brands in order to retain market share at home & expand abroad, as the entire category awaits the next The World Cup to help lift sales especially in match game markets and countries. Insurance (+23%): With a dramatically changing consumer base and even tougher regulations, the insurance category is experiencing unprecedented volatility in the market place. In North America, Europe, and Japan, assets are shifting from equities to annuities and other fixed-income products because of the aging PAGE 3 The Power of Brands (continued) population. China is a compelling target for insurance companies thanks to looser regulatory barriers, a growing middle class, and an ageing population in need of retirement security. Overall, new markets will drive profits as demand slows down in developed markets. Collectively, they spent $2 billion on advertising last year, surpassing the beer, entertainment, and soft drink industries. Apparel (+23%): As consumers are increasingly happy to wear sports brands whether they play sports or not, the current driving force behind the apparel industry are the areas of sports and online retailing, where they are especially contributing to growth in footwear & clothing. In China, in particular light of the Summer Olympics, a greater interest in Western sporting events has developed, resulting in a respective consumer awareness and consumption of Western sports brands. Overall, retailers are focusing on online channels as more and more consumers turn to e-retailing. Global sporting events like the World Cup & the Olympics have thrust the industry into the limelight more. Coffee (+18%): In spite of the recent Starbucks news that a number of shops would be closing around the world (i.e., BV: $12 billion/-25% change vs. YAG ), the global coffee sector has been experiencing a slow but positive growth in 2007. Innovation, a trend favoring premium ranges, and increased demand for fairtrade products have helped keep up the sector. Coffee consumers this year tended to shift away from instant brands and selected ground brands instead. Soft Drinks (+17%): The greater focus on healthy-eating vs. obesity in many parts of the world is impacting the soft drinks sector. “In the next three years the category is forecast to decline by -1% in real terms and to drop by 13 percent in volume.” Subsequently, diet & low-calorie products that account for 40% of the category are seeing better results (i.e., in colas, diet versions outsell the full sugar brands reflecting 53% of SOM). As a few über-brands dominate the soft drinks sector, however, their substantial investment in promotions guarantees continued growth even if at a slower rate. Overall, the sector continues to embrace online channels to reach out to younger consumers, particularly via music Web sites for downloading or video uploading. Other marketing channels for brands that are opportunistic are big sporting events (i.e., World Cup, Olympics). Financial Institutions (+16%): Despite the immediate challenges faced by British & U.S. banks because of the sub-prime mortgage predicament, overall brand value of financial institutions increased. In contrast, Chinese bank brands have benefited from recent IPOs which likely strengthened the bond between brands & their shareholders, contributing to the 2 consecutive years of impressive growth. Retail (+10%): Health is an important trend as many food stores now display nutritional information on product labels more; and, retailers are developing etailing channels to address the demand for more convenient ways to shop. Going “green” is big: Wal-Mart pledged to bar products that contribute to global warming; Tesco promised to create a “carbon-calorie counter” for every product it sells; and Marks & Spencer intends to make its business carbon neutral within 5 years. Bottled Water (+9%): The category is under a “green” spotlight as environmental issues focus on the production & distribution of bottled water vs. a primary resource that is on-tap. Specifically, the focus on healthier-eating has led to growth in the bottled water category. Still water continues to outsell sparkling, and flavored water varieties from well-known brands are performing well despite questions around their health benefits. PAGE 4 More definitions What is BrandZ? Carried out annually by Millward Brown on behalf of WPP companies since 1998, BrandZ is a quantitative brand equity study. The data for BrandZ is based on a vast collection of consumer interviews about brands & categories in which respondents are asked to evaluate brands competitively (i.e., they are asked to think about all the brands that they know within a category) and advise on particular brand attributes that matter to them most. These attributes are key measures of brand strength. Todate, BrandZ has interviewed over 1 million consumers who cumulatively compare approximately 50,000 brands. What is Brand Contribution (BC)? Made available by the BrandZ Ranking, BC quantifies the role of a brand in driving earnings. BC reflects the share of earnings attributable to brand alone. The BC metric is obtained by isolating income that comes from a brand’s most loyal consumers, whose purchase decision is based on brand rather than other factors such as price. BC is calculated by using research-based consumer loyalty data from the BrandZ database. BC is presented as an index from 1 to 5 where 5 indicates the strongest BC. What is Brand Momentum (BM)? BM is an index of a brand’s annual growth rate (1 year) relative to the average shortterm growth rate of all brands in the BrandZ Ranking. BM is presented as an index from 1 to 10 where 10 indicates brands with highest short-term growth potential. Brands with average short-term growth rates get a BM score of 5. Brands with above average growth rates have a BM score above 5, brands with below average growth rates have a BM score below 5. BM is based on 3 inputs: 1). a brand’s likelihood to gain market share and increase value which we obtain from validated predictive growth metrics in the BrandZ database; 2). sector growth rates by country (i.e. the differences in growth rates across categories); 3). growth opportunity in a particular country and category. A brand’s growth potential also depends on its current market share and awareness rates. The Power of Brands (continued) Brands vs. the Stock Market For the first time this year, we have been able to compare the performance of the BrandZ Top 100 Most Powerful Brands as a portfolio against the performance of the stock market. Bearing in mind the challenging economic conditions that are being experienced in major parts of the world, it is particularly interesting to see the role that a brand plays in driving absolute value. To take account of the economic developments during the first quarter of 2008, we calculated this portfolio up to the beginning of April. In order to do this, we created a portfolio of all the brands in the Top 100 that are publicly listed and frequently traded (i.e. not illiquid). The Top 100 Most Powerful Brands portfolio is benchmarked against the S&P 500. For each of the three years that the ranking has been running, we changed the portfolio to reflect that year’s Top 100 brands. We can see from the chart, that investing in the BrandZ Top 100 Most Powerful Brands results in a five-fold increase in performance. To understand the importance that a brand plays in this, we created a Strong Brands Portfolio. We isolated those brands in the Top 100 for which brand contributed over 30% of earnings. These brands represented about two-thirds of the BrandZ Top 100 each year. When we compared the performance of this portfolio to the S&P 500 index, we discovered a seven-fold increase. The difference in performance between both the Top 100 and the Strong Brands portfolios demonstrates the power of brands. This is particularly relevant when the economy is in a downturn, because strong brands can help to protect businesses from risk. Cars (+7%): Overall, a series of key factors including crude oil & raw material prices, exchange rate fluctuations, and structural & environmental/energy influence on auto designs, has dramatically affected the automotive industry. In mature markets, car companies are expected to adopt & incorporate new technologies to attract consumers and generate growth (e.g., GPS, safety, wireless access, etc.). In emerging markets such as Asia & Latin America, the auto industry is likely to continue to grow even more. Overall, car brands that offered new designs, fuel efficiency, and green models did better than the competition, according to BrandZ Ranking. Motor Fuel (+5%): Given the oil production issues, the motor fuel sector is the slowest-growing category in this year’s report. Companies are trying to manage the difficult balancing act of promoting “green” & “sustainability” in a manner that is consumer credible (i.e., passes the laugh test and does not fall under the mantra of “greenwashing”). Brands are globalizing, as is shown by the expansion not only of the BP brand, but also the recent appearance of Russia’s Lukoil brand in retail gasoline in the U.S. and other international markets. Spirits (New): New to this report is the Spirits category. Driving growth factor for the sector as companies innovate & extend their brands aspirationally upwards is what has been recently coined as the “premiumization” of spirits brands. Specifically, the European segment is trading at a higher relative valuation today (e.g., higher earnings & bigger marketing investment by key brands) compared to more than a decade ago. In the U.S., the spirits sector also delivered growth in the premium segments. In emerging markets, profits & sales of spirits brands are also accelerating respectively. Overall, a challenge common to all brands in the spirits category is stricter advertising restrictions, especially around young consumers. Compared to other global reports, this unique ranking identifies key drivers of brand value & provides a distinct understanding of how these factors can be influenced & activated. For additional detail on select brands, please contact your respective client account leaders at MEC &/or MediaLab. PAGE 5 The Power of Brands (continued) BrandZ™ Global Top 100 Most Powerful Brands by Value, 2008 Brand 1). Google 2). GE (General Electric) 3). Microsoft 4). Coca-Cola (1) 5). China Mobile 6). IBM 7). Apple 8). McDonald's 9). Nokia 10). Marlboro 11). Vodafone 12). Toyota 13). Wal-Mart 14). Bank of America 15). Citi 16). HP 17). BMW 18). ICBC 19). Louis Vuitton 20). American Express 21). Wells Fargo 22). Cisco 23). Disney 24). UPS 25). Tesco 26). Oracle 27). Intel 28). Porsche 29). SAP 30). Gillette 31). China Construction Bank 32). Bank of China 33). Verizon Wireless 34). Royal Bank of Canada 35). HSBC 36). Mercedes 37). Honda 38). L'Oréal 39). Pepsi (2) 40). Home Depot 41). Dell 42). Deutsche Bank 43). ING (3) 44). Carrefour 45). NTT DoCoMo 46). Target 47). Siemens 48). Banco Santander 49). Accenture 50). Orange Brand value % chg 86,057 71,379 70,887 58,208 57,225 55,335 55,206 49,499 43,975 37,324 36,962 35,134 34,547 33,092 30,318 29,278 28,015 28,004 25,739 24,816 24,739 24,101 23,705 23,610 23,208 22,904 22,027 21,718 21,669 21,523 19,603 19,418 19,202 18,995 18,479 18,044 16,649 16,459 15,404 15,378 15,288 15,104 15,080 15,057 15,048 14,738 14,665 14,549 14,137 14,093 30% 15% 29% 17% 39% 65% 123% 49% 39% (-5%) 75% 5% (-6%) 15% (-10%) 17% 9% 70% 13% 7% 2% 28% 5% (-4%) 39% 29% 18% 62% 20% 20% 82% 42% 18% 39% 6% 1% 8% 34% 15% (-16%) 10% 14% 31% 29% 11% 27% 61% 20% 34% 42% Brand Brand value % chg 13,734 12,782 12,499 12,398 12,030 12,011 11,944 11,870 11,707 11,600 11,511 11,465 11,327 11,220 11,200 11,182 11,022 10,971 10,862 10,839 10,576 10,401 10,335 9,802 9,762 9,631 9,457 9,425 9,341 9,285 9,273 9,123 8,940 8,682 8,656 8,507 8,437 8,117 8,077 7,907 7,903 7,575 7,382 7,209 7,148 7,143 7,141 7,102 6,970 6,855 390% 14% 21% 9% 30% (-25%) 45% (-7%) 5% 22% 93% (-13%) 1% (-3%) (-13%) 28% 10% (-13%) (-3%) 9% 37% 1% 39% (-16%) 15% 39% n/a 8% 43% 32% 0% n/a 11% 34% 15% 15% n/a 73% n/a 46% (-6%) (-30%) 12% 10% 28% 2% 50% 21% 52% 73% 51). BlackBerry 52). Chase 53). Nike 54). Canon 55). AT&T 56). Starbucks 57). Goldman Sachs 58). Samsung 59). Nissan 60). Marks & Spencer 61). Amazon 62). Yahoo! 63). Morgan Stanley 64). UBS 65). eBay 66). H&M 67). Wachovia 68). Ford 68). Chevrolet 70). Budweiser (4) 71). Colgate 72). Harley-Davidson 73). Subway 74). Merrill Lynch 75). JP Morgan 76). Hermès 77). BBVA 78). State Farm 79). Gucci 80). Cartier 81). FedEx 82). Tide 83). T-Mobile 84). Zara 85). Chanel 86). IKEA 87). Ariel 88). Telefónica Movistar 89). MTS 90). Esprit 91). TIM 92). Motorola 93). Barclays 94). Avon 95). Auchan 96). VW (Volkswagen) 97). AXA 98). AIG 99). Mastercard 100). Standard Chartered Bank Note: (1) Coke's value includes both Coke & Diet Coke; (2) Pepsi's value includes both Pepsi & Diet Pepsi; (3) ING's value includes both ING Bank & insurance; (4) Budweiser's value includes both Bud & Bud Light; % chg in BV vs. YAG; ICBC = Industrial and Commercial Bank of China; BBVA = Banco Bilbao Vizcaya and Argentaria; MTS = Mobile TeleSystems; TIM = Telecom Italia Mobile. Source: Millward Brown Optimor (including data from Datamonitor International & Bloomberg) in $ millions. PAGE 6 Week To Week BY 2007/2008 # 30 April 14 - April 20, 2008 Highlights of the Week by Network Week #30 of the 2007/2008 Broadcast season -- For the 15th consecutive week in a row, FOX remained the lead network with one of the most coveted television demos, Adults 18-49, with a 3.2 rating/9 share. Overall, the network has led across the board this week, taking the winning lead in 3 other key demos - Adults 18-34 (2.7/9), Adults 25-54 (3.6/9), and Total Viewers (8.75 million). As has become the norm over the past six seasons, and through this seventh season, the 2 nights of American Idol 7 (AI7) led the way in the Top 10 primetime network ratings chart, though the program has been showing a degree of wearout with AI7 - Performance Tuesday receiving its lowest ratings in 5 years time among Adults 18-49. NBC, which is usually perched in 4th place, got a big boost from the season finale of The Biggest Loser 5 (which BTW saw its first female winner in the show's history) to take 2nd place in Adults 18-49 with 2.4/7 overall, instead. Tying each other for 3rd place in Adults 18-49, ABC & CBS each scored a 2.3/7 rating, with the Tiffany net's strongest players coming in the form of Monday comedies & crimefighting dramas and the House of Mouse seeing strong performances mainly from Dancing with the Stars & Desperate Housewives recently returning to regular scheduling. FOX: Despite Tuesday night's performance show scoring its lowest Adults 18-49 ratings in five years, AI7 - Tuesday (A 18-49: 8.8/23; 23.65 mill. vwrs.) and AI7 - Wednesday (A 18-49: 8.8/22; 23.34 mill. vwrs.) tied each other for first place honors in Adults 18-49’s Top 10 program list and also took first & second places, respectively, in Total Viewers’ Top 10s. Moreover with younger viewers, AI7 - Wednesday took first in Persons 12-34 (6.6/19) and AI7 - Tuesday snagged second (6.5/20) in that same demo too. Gordon Ramsay's Hell's Kitchen (A 18-49: 4.7/12; 10.56 mill. vwrs.), AI7 - Tuesday’s lead out, tied for sixth in Adults 18-49 and also took fourth place in Persons 12-34 (3.9/11). In a related American Idol contestant FOX theme, AI2 contestant Kimberly Locke, playing for charity, became the first contestant ever to sing the million dollar song on Don't Forget the Lyrics (A 18-49: 3.1/08; 9.29 mill. vwrs.), which also 3-way tied for #20 in Adults 18-49. NBC: The Office (A 18-49: 5.0/13; 9.86 mill. vwrs.) was the week's #1 program among Men 18-34 (5.7/17) Top 10s, was fifth in Adults 18-49 & third in Persons 12-34 (4.6/14) list. Law & Order: SVU - Tuesday (A 18-49: 4.7/13; 13.27 mill. vwrs.) tied for sixth in Adults 18-49 & also took ninth in Total Viewers. With its first ever female winner, the season finale of The Biggest Loser 5 (A 18-49: 4.4/11; 11.39 mill. vwrs.) won 8th place in Adults 18-49 while Scrubs (A 18-49: 3.7/10; 7.19 mill. vwrs.) took #13 in Adults 18-49’s list. ABC: Returning from its WGA strike hiatus, Desperate Housewives - Sunday (A 18-49: 5.3/13; 15.75 mill. vwrs.) tied for 3rd place in Adults 18-49’s Top 10 program list, was 4th in Total Viewers and 5th in Persons 12-34’s (3.8/11) Top 10s. Dancing With the Stars Performance Monday (A 18-49: 4.1/11; 17.20 mill. vwrs.) tied for 9th in Adults 18-49 and took 3rd in Total Viewers, while DWTS - Results Tuesday (A 18-49: 3.6/09; 15.42 mill. vwrs.) took #14 in Adults 18-49 and 5th place in Total Viewers’ list CBS: Two and a Half Men (A 18-49: 5.3/13; 13.94 mill. vwrs.) tied for 3rd in Adults 1849’s top 10s and took 7th in Total Viewers. Comedy Rules of Engagement (A 18-49: 4.1/10; 10.40 mill. vwrs.) tied for 9th in Adults 18-49, while CSI: NY (A 18-49: 3.9/10; 13.43 mill. vwrs.) tied for #11 in that same adult demo, and also took #8 in Total Viewers. Criminal Minds (A 18-49: 3.5/09; 12.98 mill. vwrs.) took #15 in Adults 18-49 and finished 10th in Total Viewers too. Ad-supported Cable Networks: USA Network, on which a Saturday 9 PM airing of NCIS was the #1 scripted program on cable TV for the week, was back to its usual 1st place post among the cable ratings line-up, with a 0.92 rating in Adults 18-49. Following USA: TBS took second with 0.82; TNT took third with 0.80; ESPN finished fourth with 0.67; and Discovery finished fifth with 0.63. PAGE 7 Week To Week BY 2007/2008 # 30 Leading National Networks & Programs Source: Nielsen Media Research Top 10 Network TV Programs by Adults 18 - 49 Ratings/ Share 1. 1. 3. 3. 5. 6. 6. 8. 9. 9. FOX/American Idol 7 - Tuesday = 8.8/23 FOX/American Idol 7 - Wednesday = 8.8/22 ABC/Desperate Housewives - Sunday = 5.3/13 CBS/Two and a Half Men = 5.3/13 NBC/The Office = 5.0/13 NBC/Law & Order: SVU - Tuesday = 4.7/13 FOX/Hell's Kitchen = 4.7/12 NBC/The Biggest Loser 5 = 4.4/11 ABC/Dancing With the Stars - Performance Monday = 4.1/11 CBS/Rules of Engagement = 4.1/10 Top 10 Network TV Programs by Total Viewers 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. FOX/American Idol 7 - Tuesday = 23.65 million FOX/American Idol 7 - Wednesday = 23.34 million ABC/Dancing With the Stars - Performance Monday = 17.20 million ABC/Desperate Housewives - Sunday = 15.75 million ABC/Dancing With the Stars - Results Tuesday = 15.42 million CBS/NCIS = 15.13 million CBS/Two and a Half Men = 13.94 million CBS/CSI: NY = 13.43 million NBC/Law & Order: SVU - Tuesday = 13.27 million CBS/Criminal Minds = 12.98 million Top 5 Cable Networks by Adults 18-49 Rtgs // mill. tot. vwrs. 1. 2. 3. 4. 5. USA: 0.92 // 2.71 TBS: 0.82 // 2.07 TNT: 0.80 // 1.81 ESPN: 0.67 // 1.56 Discovery: 0.63 // 1.39 TiVo's Most Recorded Shows 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Grey’s Anatomy (1) American Idol 7 (2) Desperate Housewives (4) House (3) Lost (5) CSI (6) The Office (7) Dancing With the Stars (8) CSI: Miami (10) Oprah Winfrey (9) Source: TiVo; Most-Recorded shows are from Season Pass rankings based on anonymous, aggregated data, for the week ending 4/20/2008; the previous week’s rank is reflected in parentheses. PAGE 8 At A Glance Marketplace NETWORK TV & CABLE TV: AWAITING THE UPFRONT & TIGHT While most of the networks achieved a lift in impressions with their new episodes aired, the number of programs scheduled were still few & far between, so gains achieved did not offset averages to move weekly (A18-49: -15%) & STD (A18-49: -11%) ratings to the plus side. As a result, scatter inventory is still being affected by make-good needs & impacting overall prices, in both network & cable TV. Ad categories remaining most competitive in this quarter have been Pharmaceuticals, Movies and DVDs, Telecommunications/HD, Wireless, HBA, Fast Foods & Restaurants, FMCGs, Financial Services, Autos + Retail/DoIt-Yourself. Note: it is 2 more weeks till the major nets’ upfronts (May 12: NBC (Part 2); May 13: ABC, ESPN & The CW; May 14: CBS & Turner Networks (TBS, TNT, truTV); May 15: FOX), so the industry is abuzz about predicting how the nets will package their offers including digital & in light of the DTV switch. SPOT TV: SOFT & NEGOTIABLE BY MARKET Though political ads filled market schedules in Pennsylvania last week, this week conditions across all markets are relatively soft going into the month of May. It is expected that as North Carolina & Indiana primaries are run (May 6th) that overall market conditions nationally will get a bit tighter given Mother's Day & the long-weekend holiday of Memorial Day. In the meantime, seasonal investment bursts continue & includes DIY/Home Improvement, Telcos, Pharma, Financial services, Autos plus network TV Tune-ins. MAGAZINES: MIXED & NEGOTIABLE Conditions remain the same as the season rolls into the Summer months and demand for the medium is relatively mixed & driven by particular industries including Soft Drinks, Beer & Spirits, FMCGs, DIY, Luxury brands, Diets & Health plans, HBA, Consumer Electronics/HDTV, and Telecommunications. RADIO: STILL SOFT & NEGOTIABLE BY MARKET Like local TV, conditions remain the same as inventory is available across all markets going into the month of May and most stations are willing to negotiate, even for last minute schedules. Sectors using the medium more have been Fast Foods & Restaurants, Autos, Telecommunications, Wireless, TV Tune-ins, Office services and Auto. Reminder: Conditions summarized here reflect general industry trends released & cited in various articles, write-ups and assorted blogs & newslines. Subsequently, for specific application to brands, please consult your lead planner and/or buyer to verify relevant factors for consideration. Primetime Scorecard Source: Nielsen Media Research - Prime Ave. Live + SD Note: Live + SD = viewing estimates include same day(3A-3A) DVR playback; * Strict Prime Daypart (Mon-Sat 8p-11p, Sun 7p-11p). ** Data from year ago are based on finals. *** Data are preliminary from April 7 - April 20. ^ Averages based on measurement periods prior to 12/26/05 are based on pre-TSV (Live) data only. Averages crossing this date will include a combination of pre-TSV (Live) and time shifted data. Includes regulars, specials, and breakouts. Excludes only paid political programming and programs with less than 5 minute duration. As of August 27 2007, there are an estimated 112.8 million television households in the USA. A single national household ratings point represents 1% or 1,128,000 households. Weekly Average Current Season 04/14/08 - 04/20/08 (Week #30) Network ABC CBS NBC FOX CW Univision Total Viewers * 7.91 (-17%) 8.54 (-11%) 7.32 (+17%) 8.75 (-15%) 2.29 (-25%) 3.48 (- 7%) 38.29 (-10%) Adults 18-49 Adults 25-54 Adults 18-34 2.3/7 (-30%) 1.7/5 (-41%) 2.9/8 (-21%) 2.3/7 (-11%) 1.5/5 (-11%) 3.0/8 (-10%) 2.4/7 (+13%) 1.7/5 (+ 7%) 2.8/7 (+16%) 3.2/9 (-19%) 2.7/9 (-22%) 3.6/9 (-16%) 0.9/3 (-28%) 1.0/3 (-29%) 0.9/2 (-25%) 1.5/4 (-10%) 1.8/6 (+ 1%) 1.4/4 (-14%) 12.6/36 (-15%) 14.6/38 (-11%) 10.3/33 (-19%) STD Average Current Season 09/24/07 - 04/20/08 (Week #1-30) Network ABC CBS NBC FOX CW Univision Total Viewers * 8.78 (- 8%) 10.05 (-19%) 7.99 (-10%) 10.96 (+ 9%) 2.44 (-22%) 3.53 (- 2%) 43.75 (- 8%) Adults 18-49 Adults 25-54 Adults 18-34 2.8/8 (-16%) 3.3/8 (-13%) 2.2/7 (-20%) 2.8/8 (-23%) 3.6/9 (-22%) 1.9/6 (-25%) 2.7/7 (-11%) 3.2/8 (-11%) 2.2/7 (-11%) 4.1/11 (+ 6%) 4.5/11 (+ 8%) 3.7/11 (+ 3%) 1.0/3 (-25%) 0.9/2 (-23%) 1.0/3 (-28%) 1.5/4 (- 3%) 1.5/4 (- 5%) 1.7/5 (+ 1%) 15.0/41 (-11%) 17.0/42 (-10%) 12.7/38 (-12%) PAGE 9 At A Glance Comparing Media Use Broadcast TV: Programs Week of April 7 - April 13, 2008 (Rating point equals 1.1 mill. homes) Cable TV: Programs Week of April 7 - April 13, 2008 (Rating point equals 1.1 mill. homes) Program Title (Network) 1). American Idol (FOX/Tues) 2). Dancing With…Stars (ABC/Mon) 3). NCAA Men's Bask. Champ. (CBS) 4). CSI (CBS) 5). American Idol (FOX/Thurs) 6). Dancing With…Stars (ABC/Tues) 7). Idol Gives Back 2 (FOX/Wed) 9). Desperate Housewives (ABC) 9). Without a Trace (CBS) 10). NCIS (CBS) Source: Nielsen Media Research Ratings 12.8 12.2 12.0 11.9 10.9 10.7 9.7 9.4 9.4 8.4 Program Title (Network) 1). Memory Keeper's Daughter (Life) 2). SpongeBob… (Nick/Fri, 8 PM) 3). Rock of Love 2 (VH1) 5). SpongeBob (Nick/Sat, 9:30 AM) 5). WWE Raw (USA/Mon, 10 PM) 6). SpongeBob…/Barnyard (Nick) 7). SpongeBob… (Nick/two episodes) 10). WWE Raw (USA/Mon, 9 PM) 10). SpongeBob… (Nick/two episodes) 10). Masters (Fri)/MLB (Sun) (ESPN) Source: Nielsen Media Research Ratings 3.9 3.6 3.0 2.9 2.9 2.8 2.7 2.6 2.6 2.6 Magazines Ad Pages, May 2008 Publication Food 1). Food & Wine 2). Gourmet 3). Cooking Light 4). Bon Appétit 5). Every Day with Rachael Ray Travel 1). Condé Nast Traveler 2). Departures 3). Travel + Leisure 4). A. F.'s Budget Travel 5). Nat'l Geographic Traveler Source: Nielsen Media Research Ad Pgs (% chg) 158.7 (+17.8) 127.5 (-18.1) 115.3 (-25.0) 111.2 (+ 9.0) 82.8 (+ 3.2) 237.7 (+ 7.3) 163.8 (- 2.3) 121.6 (+ 3.5) 66.9 (-21.3) 64.7 (+ 3.4) Movie Box Office Weekend estimates, in $ millions Title (Weeks out) 1). Forbidden Kingdom (1) 2). Forgetting Sarah Marshall (1) 3). Prom Night (2) 4). 88 Minutes (1) 5). Nim's Island (3) 6). 21 (4) 7). Street Kings (2) 8). Horton Hears a Who (6) 9). Expelled…Allowed (1) 10). Leatherheads (3) Gross $ (Total $ Out) 20.9 (20.9) 17.3 (17.3) 9.1 (32.6) 6.8 (6.8) 5.7 (32.9) 5.5 (70.0) 4.0 (19.9) 3.5 (144.4) 3.2 (3.2) 3.0 (26.6) Source: Baseline Research Contact If you have any questions or comments, please contact: Edith Wong Chief Knowledge Officer, Global Tel: (+ 1 212) 474 - 0135 email: edith.wong@mecglobal.com MediaImpressions, a publication of Mediaedge:cia Global Solutions 825 Seventh Avenue New York, N.Y. 10019 A GroupM Company PAGE 10