IAB study

1Executive Summary, Total Canada, January 2009

IAB Canada's 2008 Canadian Media Usage Trend Study

PREPARED FOR IAB CANADA BY: PHD CANADATotal Canada: EXECUTIVE SUMMARY

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We’ve traced the Internet’s growth pattern in Canada for eight years.

We’ve seen the Internet grow into the third most time consuming medium amongst adults.

Internet’s number 3 rank appears consistent across most Canadian media studies.

The “time spent” gap between Internet and the broadcast media is shrinking.

Background

Internet has had solid growth for seven years now.

3

Purpose

A separate presentation is available that examines how the Internet is evolving in French Canada.

IAB Canada has commissioned this 5th media usage trend analysis and presentation.

It examines the 8-year period since 2000.

Canada’s main media surveys were analysed to create a ‘total media’ usage picture.

The studies are… PMB, NADbank, BBM RTS and comScore.

The Internet’s impact on advertiser media considerations is also highlighted.

To examine Internet’s current growth rate, by demo, relative to other media.

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Key learning

Methodology

Reach trend

Audience composition

Time spent trend

Share of time-spent trend

Future forecasts

Internet Imperative

Conclusion

Appendix: Internet usage questions on syndicated surveys

Contents

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Key learning

The Internet reaches… More adults each week than Magazines and Newspapers.More 18-24 and 25-34 year olds each week than the Radio medium.

18-24 year olds to the same extent as TV each week.

Internet’s growth rate… Rising at mid to high single digit levels over the last 2 years. Internet is now clearly Canada’s number 3 weekly time spent medium.

The gap in time spent between Internet and Radio continues to narrow.

Internet’s share of media time… Has grown from 14% in 2001 to 23% in 2007.

NADbank studies.

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Key learning

Internet demos of note... Women and 55+ very high growth rates. While traditional media exhibit flat to declining weekly time spent trends.

Internet usage in French Canada… Still lags English Canada time spent levels.

Eight years from now… Today’s 18-34 year olds will become 35-54 years old.As they age, the 18-24 and 25-34 year olds will continue to exhibit intense Internet

usage. The Internet will be the #1 medium for tomorrow's 25-34 and 35-54 year old consumers.

Shifting budget, TV to Internet… Balances media weight across all age groups.Internet’s age profile provides a “mirror image” to TV.

NADbank studies.

The Internet Imperative… A Heavy Internet/Light TV segment.The group accounts for about 25% of the population.

Consumer segment is a very important group of consumers.Are prime prospects for a wide range of upscale consumer products and services.

In other words… The Internet is Imperative!

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Methodology

NADbank is the primary data source because of its wealth of Internet data.

TELEVISION

NEWSPAPER

INTERNET

R A D I O

MAGAZINE

NADBANK PMB BBM RTS COMSCORE

Daily WeeklyReach

Time

Reach

Time

Reach

Time

Reach

Time

Reach

Time

Daily Weekly Daily Weekly Daily Weekly

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All studies show broadcast reach has been flat over the past eight years. Internet reach is now higher than magazine and newspaper, in third place after TV and Radio.

Base: Adults 18+, Total Canada

Reach: All Adults Trend

BBM RADIO RTS PMB NADbank

DAILY REACH

2000

2001

2002

2003

2004

2005

2006

2007

2000

‘01

2001

‘02

2002

‘03

2003

‘04

2004

‘05

2005

‘06

2006

‘07

2007

‘08

2000

2001

2002

2003

2004

2005

2006

2004

2001

2002

2003

2005

2006

2007

2008 20

07

100%

75%

25%

0%

100%

75%

50%

25%

0%

WEEKLY REACH

82%

93%97%

87%

96%

71%

48%

31%

82%60%51%

70%

44%

31%

86%60% 72%

64%82%65%53%33%

62%

COMSCORE

TELEVISIONRADIOINTERNETNEWSPAPERMAGAZINE

64%

72%

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When we look at percent reach by age group in the Nadbank study, we see that the internet is the #2 reach medium for 18-24 and 25-34 year olds.

Reach: by age group today


Base: Adults 18+, Total Canada, NADbank ‘07

This chart, from Nadbank’07, plots weekly reach for each medium over 5 age groups.

The Internet reaches more adults each week than Magazines and Newspapers… more 18-24 and 25-34 year olds each week than Radio… and is neck-and-neck with TV in 18-24 year old weekly reach.

(%Reach)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%18+18-24

25-3435-54

55+

10

Reach: by age group trend

Base: Adults 18+, Total Canada, NADbank ’07 and ‘01

Ad 18+

+38%

18-24

11%

25-34

+32%

35-54

+38%

55+

+88%

Weekly Reach Growth NADbank ’01 and ‘07

WeeklyReach

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%18-24 25-3418+ 35-54 55+

We see dramatic growth when we compare the Internet’s current weekly reach to NADbank’01 results (eight years ago) especially for Adults 55+.

NADbank ’01

NADbank ‘07

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Population composition based on PMB ’08, Total Canada. Internet composition based upon weekly reach in NADbank ‘07

The Internet’s strong youth profile suit.

18-2425-3435-54

55+Adults 18+

Internet Weekly reach composition by age

InternetWeekly ReachComposition

16%22%43%19%100%

Audience composition

Internet’s Age Development

(Ad18+ = 100 index)

13311610866100

Population

12%19%40%29%100%

NADbank ‘07

This chart compares the proportion of Internet audiences that each age group represents to its respective percent of the all-adult population.

It shows that all groups under 55 years of age over index for Internet use compared to the actual population.

The Internet is most highly developed among adults under 55 years.

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All studies show that time spent with the Internet is increasing. The Internet is Canada’s #3 weekly time spent medium according to both NADBank and PMB surveys.



Time spent: All Adults Trend

BBM RADIO RTS PMB NADbankCOMSCORE

0

2000

2001

2002

2003

2004

2005

2006

2007

2000

‘01

2001

‘02

2002

‘03

2003

‘04

2004

‘05

2005

‘06

2006

‘07

2007

‘08

2004

2001

2002

2003

2005

2006

2007

2008

2000

2001

2002

2003

2004

2005

2006 20

07

1,000

125

100

75

50

25

800

600

400

200

DAILY TIME (min)

WEEKLY TIME (min)

115

818

1,3581,894

109

4714

99

678

223

543

107

926

583

31

250

451

64

107

543

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Internet annual growth rates of time-spent are in the mid single-digit range.


Time spent: All Adults Trend

NADbank

0

2000

2001

2002

2003

2004

2005

2006

2007

1,000

800

600

400

200

818

99

678

223

‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07

INTERNETWeekly Time Spent (minutes)

401353309+14% +14%

444+11%

480+8%

515+7%

543+5%

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Time spent: by age

The Internet has become #1 in time-spent for Adults 18-24 and 25-34, having overtaken TV for both these age groups.


18-24 25-3418+ 35-54 55+ WeeklyMinutes

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200


NADbank ’07

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The Internet is a “mirror-image” of TV according to NADbank. Those who spend the most time Online, spend the least with TV.


Time spent: by age

18-24 25-3418+ 35-54 55+ WeeklyMinutes

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

NADbank ’07

TV older

Internet younger

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Share of Weekly Minutes Per CapitaTotal CanadaAdults 18+

2007Min

818678543223

992,361

The tremendous increase in time spent with the Internet, +75% since NADbank 2001, has resulted in a 5% increase in the total time people spend with all media. The Internet’s share of time spent with all media has grown from 14% to 23%.


Share of time-spent trend


NADbank

Weekly Time SpentMinutes Per Capita

(Minutes indexed to 2001)TV

RADIOINTERNET

NEWSPAPERMAGAZINE

TOTAL

2001

Min

818763309240120

2,250

Share

36%33%14%11%

5%100%

Share

35%29%23%

9%4%

100%

Index of Chge(min)

10089

1759383

105

100 index = no change

1,000

2000

2001

2002

2003

2004

2005

2006

827698

231

184

800

600

400

200

0

2007

818

678

223

99

543543 (175)

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Share of Weekly Minutes Per CapitaTotal CanadaMen 18+Women 18+

MEN 18+WOMEN 18+Women 18+ Share


TVRADIO

INTERNETNEWSPAPER

MAGAZINETOTAL

Share of time: men-women

NADbank

Women’s rate of growth in time spent with the Internet has out paced men since NADbank 2001… +89% growth for women versus 61% for men.

Men 18+ Share

2001

37%36%11%11%

5%100%

2007

33%28%25%10%

4%100%

2001

35%32%17%11%

5%100%

2007

36%30%21%

9%5%

100%

INTERNETWeekly Time Spent

Minutes Per Capita(Minutes indexed to 2001)

The gap between men and women time spent with Internet usage has narrowed, with the Internet now accounting for about one-fifth of women’s time spent with all media (21%).

2001

2002

2003

2004

2005

2006

1,000

800

600

400

200

0

1,200

2007

624

442

624 (161)

442 (189)

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French speaking Canadians spend less time with the Internet than English speakers, unlike other media. Because usage is growing at comparable rate for both language groups, about +76% since NADbank 2001, this gap has not narrowed.

TOTALENGLISHFRENCH

Share of Weekly Minutes Per CapitaTotal CanadaAdults 18+

French 18+ Share

TVRADIO

INTERNETNEWSPAPER

MAGAZINETOTAL

English 18+ Share

2001

38%35%11%11%

5%100%

2007

34%29%23%10%

4%100%

2001

36%34%14%11%

5%100%

2007

36%32%18%10%

6%100%

NADbank



Share of time: language


As a result, the Internet accounts for only 18% of time spent with all media by French speakers, compared to 23% for English speakers.

2001

2002

2003

2004

2005

2006

1,000

800

600

400

200

0

1,200

2007

543574

413543 (176)

413 (181)

574 (175)

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Share of Weekly Minutes Per CapitaTotal 18+

TVRADIO

INTERNETNEWSPAPER

MAGAZINETOTAL

25-34 Share

2007

30%27%33%

6%4%

100%

2001

33%35%19%

8%5%

100%

35-54 Share

TVRADIO

INTERNETNEWSPAPER

MAGAZINETOTAL

55+ Share

2001

35%36%14%10%

5%100%

2007

42%28%11%14%

5%100%

2001

43%31%

5%15%

6%100%

2007

33%33%22%

8%4%

100%

Adults 18-24 Adults 25-34Adults 35-54

Adults 55+

18-24 Share

2007

29%23%40%

5%3%

100%

2001

33%31%24%

7%5%

100% NADbank



Share of time: age

The older age groups have been the fastest growing users of the Internet since NADbank 2001… +66% for adults 35-54, +135% for 55+. Hence the gap in time spent between younger and older age groups is narrowing.

2001

2002

2003

2004

2005

2006

2007

1,000

800

600

400

200

0

1,020

782

492

265

NADbank

1,2001,020 (178)

492 (166)

782 (177)

265 (235)

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Future forecasts

The Internet… the number one time-spent medium for the next generation of 35-54 year old consumers.

NOW = NADbank 2007 … Base: Adults 18+, Total Canada


Consumers formulate their media usage habits in their late-teens and early-20’s.

As consumers age, these learned media usage habits persist. The high levels of Internet usage exhibited by 18-24 and 25-34 year olds will stay with them as they age into the 35-54 age break.

The Internet will become the number one medium for most age groups by 2016.

NOWWeeklyMinutes

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

18-24 25-34 35-54 55+18+

8 years from NOW

18-24 25-34 35-54 55+18+

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Internet Imperative

We can examine the relationship between Internet use and TV exposure, when we look at this PMB 2008 analysis of cross media use.

Base: Adults 18+, English Canada

INTERNETMinutes Per Week

450+

151-450

1-151

0

HEAVIER

Q133+

Q222-33

Q315-22

Q49-15

Q5<9

TELEVISIONHours Per Week

HEAVIER

25%Ad18+ Population

INTERNET IMPERATIVE

28%

TELEVISION IMPERATIVE

20%

DUAL

26%

LIGHT/LIGHT

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Product usage.

We can examine the relationship between these four Internet/TV user groups and the consumption of products/services via PMB’08.

Base: Adults 18+, English Canada

INTERNET IMPERATIVE

TELEVISION IMPERATIVE

DUAL LIGHT/LIGHT

137Recently purchased new $50,000+ car

68107 107

Indexed To Total Canada Ad18+ Population Composition

115Spent $5,000+ traveling in Canada

69124 102

123Spent $1,500+ per month on credit card

72110 102

140Carry $500,000+ in Life Insurance

6580 111

136Make $10,000+ RRSP contribution annually

7692 96

127Hold $500,000+ in Securities/Savings

93115 80

143Made $50,000+ in home improvements in past year

83101 83

140Home valued at $500,000+ 7595 98

142Spent $750+ in past year on Sports Clothing

71108 100

123Own LCD or Plasma TV set 82120 74

136Own $5,000+ Personal

Computing System72121 78

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Conclusions

Use the Internet to reach More adults than Magazines and Newspapers.More 18-34 year olds than Radio.

18-24 year olds to the same extent as TV.

Grow with the Internet Now increasing at high single digits levels. The Internet is now Canada’s #3 time spent medium.

The Internet is closing in on Radio.

Internet grows its share of media time Up to 23% in 2007 from 14% in 2001.

Underdeveloped Internet demos growing fast Women and 55+.

Eight years from now… The Internet will be the #1 medium for most consumers.

Shifting budget, TV to Internet The Internet is “IMPERATIVE”.

For more information please go to IAB Canada members can access the entire report in the member centre.

www.iabcanada.com

24Executive Summary, Total Canada, October 2008

IAB Canada's 2008 Canadian Media Usage Trend Study

25Executive Summary, Total Canada, October 2007

APPENDIX

Summary of Internet Usage Questions asked by three top

Canadian Syndicated Media Surveys

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NADbank

Daily market list (not full country).NADbank ’07 study, 2 waves, Jan-June ‘07 and Sept-Dec ‘07.

“Now thinking about the Internet, have you personally accessed the Internet in the past three months? And how much time did you spend on the Internet in past week.”

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PMB NADBANK

PMB’08, 2 year study reflects fieldwork Oct’05-Sept’07.

“People log on to the Internet for different reasons. Sometimes it is to send or receive e-mail, and sometimes to access the world wide web. Have you personally accessed the world wide web in the past month? “

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BBM RADIO RTS PMB NADBANK

BBM RTS Spring’08 study collected data Feb’07-Feb’08 from Spring’07 and Fall’07 radio diary respondents,.

BBM RTS Internet Question“Did you connect to and use the Internet in the Past 4 weeks (e.g. email, world wide web, newsgroups)… at home, at work, at school/college/university, at some other location?”

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BBM RADIO RTS PMB NADBANK

COMSCORE

All data is fall averaged for year in question.Measures Internet only.Added to prior 5 years of trending data.Panel based.

Includes internet based e-mailing activity only.

IAB study

Technology

internet reach

internet composition

total canada reach

reach medium

internet use

internet grow

media time

weekly reach growthnadbank