Samba TV Strategy Guide 10 Strategies for This Year's Upfronts

2023 GUIDE TV’S BIGGEST EVENT: 10 Strategies for This Year’s Upfronts + + + + + + + ++ + + + + + + ++ + + ++ + + + + + + ++ + + +

Table of + + + + + + + + + + + + contents: + + + + 03 Introduction 04 Advertise to Your Audience, Not Broad Demographics 05 Is your competitor winning the fight for attention? One-up them now with conquesting 06 TV Attribution Should Be Driving Your Upfront Strategy 07 In a Multi-tasked Life, an Omniscreen Strategy is Key 08 Elusive and Expensive Viewers: Go Where Your TV Ad Dollars Cannot 09 Your Ticket to the Tentpoles 10 Just Because Viewers Are Defining their Own ‘Primetime’, Doesn’t Mean You Aren’t in Control 11 Stop Throwing Spaghetti at the Wall and Cleaning Up Wasted Budget 12 De-duplicated Measurement Is Critical 13 Light and Medium TV Viewers Provide Opportunity For Incremental Reach 14 Conclusion

03 04 05 06 07 08 Overview 09 10 11 It’s been over half a century since the first television upfronts in 1962. Add that to the viewership landscape being more fragmented than ever and the rules for advertisers to 12 utilize measurement have been rewritten. 13 In today’s world of myriad screens, traditional approaches to media buying simply won’t 14 cut it. The relevancy of legacy ratings-based buying currency has entirely shifted to new players with better technology for measuring outcome-based advertising. A traditional approach to TV Upfronts doesn’t get you the full potential reach of your target audience nor the positive impact on your business. Brands and agencies failing to adopt new omniscreen strategies at the rapid pace with which audiences themselves are changing have a lot to lose. What exactly is at stake? With over $20B in TV advertising dollars estimated to be committed in upcoming weeks, inefficient ad spend could result in millions - or even billions - of dollars of waste. The good news, however, is that audiences are utilizing more screen time than ever. With a creative approach you can leverage new methods and tactics to triumph in today’s television landscape. This guide has 10 distinct strategies that can help you leverage the chaos of the shifting environment and turn your Upfront strategy into a competitive advantage for your brand or agency.

1 Advertise to Your Audience, 03 Not Broad Demographics 04 05 Let’s be honest, no one’s end goal is really to target a demographic. What you’re really after is engaging your unique target audience, whether that be heavy purchasers of your 06 product, consumers visiting your website and mobile apps, streamers, bingers, DIYers, dog lovers, or even consumers that visit your competitors’ stores. 07 Integrating comprehensive TV data helps you achieve your goals of reaching your desired 08 audience, combining the best of traditional television advertising with addressable forms of digital media. 09 Strategic Tips for Reaching Your Audience 10 • Work with a first-party TV data provider with a representative and large-scale data set that can 11 create audience segments that go beyond broad demographics and align with your brand or business objectives. 12 • Genre-based (NASCAR fans, fashion fiends, culinary hobbyists, etc.) 13 • Show-based (specific television shows, series, or event viewers) • Viewing habits (Heavy, Medium or Light TV viewers, viewers by daypart, and methods like 14 linear, streaming video-on-demand, advertising-based video-on-demand, or hybrid viewers) • Customer-centric (utilizing first or third-party data for website visitors, previous purchasers, etc.) • Competitors (viewers of competitors’ ads or third-party data purchasers) • Mix and match these genre-based audiences with viewing habits to optimize reach across Heavy, Medium or Light viewers, streamers, and / or viewers of specific dayparts. • Check out the new self-service interface for Samba TV Audiences (no login required), which has all of Samba’s prebuilt PMPs and data segments and enables you to implement data-driven omniscreen campaigns in a few minutes on your preferred DSP. What They Watch Dog Food Purchasers Vet Life John Wick Dog Gone Puppy Bowl

2 Is your competitor winning the 03 fight for attention? One-up them 04 now with conquesting 05 06 Whether it be based on price or exclusivity, competitors today can (and will) try to keep you out of the market. Don’t let them. 07 TV commercial retargeting makes for a perfect opportunity to reach viewers on their 08 addressable digital devices in real-time following an airing of your competitor’s TV spot. A targeting campaign focused on addressable digital devices (phones, tablets, PCs) not 09 only allows you to message your audience in a more intimate way, but also gives you a streamlined way to track through to interest or conversion. 10 11 Strategic Tips for Conquesting 12 • Plan nowto conquest any known tentpole advertising locked up by your competitors. 13 • Work with partners that can track commercials in real-time and retarget on addressable digital 14 devices in near real-time. Work with your media agency to set up a programmatic conquesting campaign. • Create audience segments based on viewership of competitors’ ads to buy scatter inventory. In addition to scatter, continue to target these audiences throughout the season on addressable devices.

3 TV Attribution Should Be Driving Your 03 Upfront Strategy 04 05 Odds are that in this year’s Upfronts you (and / or your agency) will need to carry the load of tying together how impressions translate to conversions. 06 07 Strategic Tips for Comprehensive Attribution 08 • Define signals that drive your business: location data that tracks foot traffic, app login, check-ins, 09 store locator, website visits, online purchases, etc. • Map TV exposure to the business outcomes that matter to your brand. 10 • Make sure your TV dataset is multi-sourced and large enough to be unbiased and representative. 11 That means it must incorporate geography, demographics, and viewership behavior. 12 • Be relentless in looking for end-to-end measurement. Modern marketers know how to measure through from the ad exposure to business successes across linear, over-the-top (OTT), and digital. 13 Don’t settle for anything else. 14

4 In a Multi-tasked Life, an Omniscreen 03 Strategy is Key 04 05 Think back to when you last watched TV. If you were on your phone, you may be like the roughly 80% of adults who are on their phone while watching TV. Samba TV recently 06 published data showcasing how most of us are multitasking on other devices while we watch TV. With one in three adults shopping online, this means an omniscreen approach 07 is critical to your Upfronts strategy. Brands that combine their linear TV and OTT strategy with addressable digital devices, maximize their share of attention. 08 09 Strategic Tips for Omniscreen Campaigns 10 • Advertising to audiences of non-advertising supported shows 11 • Conquesting competitors in real-time 12 • Reaching elusive cord-cutters 13 • Leveraging tentpoles on your own terms 14 US Simultaneous internet and TV users, 2017 - 2022 8 in 10 Millions and % of population U.S. adults look at a mobile device Simultaneous internet and TV users % of population while watching TV 191.1 192.7 197.3 173.1 180.7 1 in 3 165.7 70.4% 73.9% 73.9% 79.0% U.S. adults shop 65.8% 68.1% online while streaming TV 1 in 3 2017 2018 2019 2020 2021 2022 millennials have made purchases through QR Individuals ages 18+ who use a desktop/laptop or mobile device to codes shown on a TV ad go online while watching digital video or traditional TV content on a TV set at least once per month. Source: eMarketer, July 2022

5 Elusive and Expensive Viewers: 03 Go Where Your TV Ad Dollars Cannot 04 05 The Ad-free Conundrum 06 Many of the most popular TV programs reside on ad-free platforms or premium cable networks. Last of Us, Succession, Suicide Squad, and Yellowstone draw scores of 07 viewers, but brands have been forced to sit on the sidelines, unable to incorporate these valuable and elusive viewers into their media strategy. 08 Now providers like Netflix and Disney, who have historically relied on a streaming video- 09 on-demand (SVOD) model, are embracing advertising-based video-on-demand (AVOD). This presents an exciting value proposition for advertisers and content owners looking to 10 reach their target audiences at scale. 11 12 Strategic Tips for Reaching Elusive Audiences 13 There *is* a way to reach these elusive 14 viewers by combining TV viewership data with innovative measurement strategies: • Partner with a first-party TV data provider that offers accurate and scalable audience segments of these ad-free programs. This requires advanced ACR capabilities that feed into the targeting capabilities. • Leverage cutting-edge creative capabilities, rather than simply recycling linear ads. • Redirect TV ad budgets toward digital media, premium OTT publishers, and even the walled gardens of social media to engage these elusive audiences. This also allows brands to reach cord-cutters on addressable digital devices through proven data-driven tactics. • For those committed to linear TV strategies, utilize custom audience discovery insights to determine what additional programs elusive audiences are watching and reallocate ad dollars to digital tactics powered by TV data.

6 Your Ticket to the Tentpoles 03 04 Tentpole TV events - the last bastions of broad linear TV reach - present different but equally frustrating challenges: limited inventory, decreasing viewership, and prohibitive 05 pricing. After all, how many brands can afford $7 million for a single thirty-second Super Bowl commercial? 06 Given that tentpoles are less susceptible to time-shifted viewing, their allure as part of 07 your annual media strategy is all the greater. Missing out on an exclusive tentpole 08 sponsorship or simply being priced out of opportunities can leave you feeling a bit like 09 Strategic Tips for Tentpoles 10 • Target viewers of tentpole events on their addressable digital devices during and after the 11 broadcast in order to cost-effectively engage your target audiences. • Even ‘mini-tentpoles’ like a niche award show or sporting event are opportunities to target these 12 smaller, but potentially more engaging TV audiences. 13 • Utilize first-party TV data to understand where else to reach these audiences at a lower cost. Take 14 March Madness, most brands pour dollars into the men’s tournament when the women’s tournament viewership is surging and reaching more diverse audiences. Moreover, 76% of those who watched the women’s March Madness also watched the men’s tournament. • Measuring the success of your tentpole strategy is critical - understand the true impact of reaching these audiences on driving campaign performance and business outcomes.

7 Just Because Viewers Are Defining their 03 Own ‘Primetime’, Doesn’t Mean You Aren’t 04 in Control 05 06 While television’s Golden Days targeting tactics like primetime roadblocking may be over, linear TV still provides a great opportunity for successfully connecting with 07 audiences. The key is to learn to augment different platforms with one another and view your campaigns holistically. 08 09 Strategic Tips to Reach Time-Shifted Audiences 10 • First-party TV data sheds light on the shows and categories that might provide higher percentages of live or same day viewers and those that tend to be watched time-shifted. Factor these realities 11 into your media plans and focus linear dollars on categories where live viewership stands the test of time (shifting). 12 • Leverage viewership segments of heavily time-shifted shows to reach these same audiences on 13 additional platforms. • Look for a TV data provider that can provide granularity of whether viewers specifically saw your ad 14 or not, regardless of whether they watched a particular show time-shifted. 69% 77.7% 0.2% Shifted Shifted Shifted 31% 23.3% 99.8% Live Live Live White Lotus Last Week Tonight The Today Show

8 Stop Throwing Spaghetti at the Wall and 03 Cleaning Up Wasted Budget 04 05 Nothing beats the satisfaction of being able to tie advertising dollars to a conversion, right? Why stop there when you can up the ante and measure the actual incremental 06 impact of a campaign? 07 Large and representative TV datasets give you the ability to measure incremental lift from a campaign by mapping the group exposed to your ad against a population that looks 08 identical and watches the same category of TV shows, with the only delta being the fact that they have not seen your ad. 09 10 Strategic Tips for Incremental Lift 11 • Augment TV to conversion reports with control groups of like-audiences to determine the actual incremental lift of TV advertising. 12 • Reserve budget for scatter inventory on shows, networks, and / or time slots that make a 13 material difference. 14 • Real-time measurement allows you to optimize committed campaigns mid-flight to move brands and products to align with the slots that perform the best against specific business objectives. • Target these same best-performing audiences with display advertising on addressable digital devices and OTT platforms. • Utilize these insights for planning ongoing advertising in subsequent years. Users that convert Users in control group that after ad exposure convert without exposure to ad 16% 14% e 12% t 10% a R 8% n While other networks show better overall o si conversion, Network 3 has by far the r 6% largest incremental lift after ad exposure ve n o 4% C 2% 0% TV Network 1 TV Network 2 TV Network 3 TV Network 4

9 De-duplicated Measurement Is Critical 03 04 Historically the silos of digital, linear, and OTT resulted in disjointed measurement that made it nearly impossible for brands. But, if you consider that 93% of linear impressions 05 reached just 55% of U.S. households, it’s clear that de-duplicated reach and frequency measurement should be a best practice that’s applied to every omniscreen campaign. 06 07 Strategic Tips to Optimizing Reach and Frequency 08 • Find a partner that can offer de-duplicated reach and frequency measurement 09 across all platforms to gain a true and unbiased measurement. • Stop over-saturating the same audiences; instead, optimize those wasted dollars on 10 incremental reach. 11 • Tie reach and frequency to conversion metrics to define your point of diminishing returns on frequency. Optimize remaining ad dollars to target untapped audiences. 12 13 14 93% of linear impressions 7% of linear impressions reached 55% of U.S. households reached 45% of U.S. households

10 Light and Medium TV Viewers Provide 03 Opportunity For Incremental Reach 04 05 As more people cut the cord and engage less with linear TV, the proportion of linear ads that reached Light TV viewers plummeted to just 7% during the second half of 2022. 06 While half of Americans were underreached or not reached at all, the other half were bombarded by more than 100 television ads daily, driving ad fatigue among the 07 overexposed. The need to drive incrementality and reach unique audiences, while also managing frequency to avoid consumer burnout, has never been more urgent. 08 The good news is that the Light and Medium TV Viewers, under-represented in legacy TV 09 measurement, provide a great opportunity for incremental reach. The key is in knowing how and where to reach these elusive audiences. 10 11 Strategic Tips to Reaching Light and Medium TV Viewers 12 • Supplement your linear advertising with an omniscreen OTT strategy that broadens campaign 13 reach to Light and Medium TV viewers. • Buy inventory on connected TV apps that help you reach viewers you can’t find on linear TV. 14 • Activate TV data against these audiences to reach them on addressable digital devices. • Leverage TV viewership of popular OTT content segments targeting them through social platforms. 146 Avg. number of linear ads seen per day by the top 55% of TV viewers 14 Avg. number of linear ads seen by the bottom 45% of TV viewers

Conclusion 03 04 05 Upfronts season is about more than simply allocating ad spend. It’s about celebrating our 06 next 12 months of entertainment. It’s about envisioning how consumers are going to be engrossed, taken to the edge of our seats, filled with stories. Upfronts in the digital age is 07 about creating and delivering media in ways we could have never imagined even a few years ago. 08 And, for those of us in the business of advertising, it’s about leveraging vast amounts of 09 data to make experiences more relevant, for reaching audiences in innovative ways, for converting viewers to customers with an efficiency that benefits us all, for leveraging new 10 technologies like artificial intelligence and machine learning to understand audiences better. And ultimately, to meet our viewers where they chose to be. 11 12 Here’s to a great season! 13 14