The digital world in focus 2013

© comScore, Inc. Proprietary.

The Digital World in Focus

Gian Fulgoni

Executive Chairman

comScore, Inc.

© comScore, Inc. Proprietary. 2

comScore is a leading internet technology company that

provides Data & Analytics for a Digital World™

NASDAQ SCOR

Clients 2,100+ Worldwide

Employees 1,000+

Headquarters Reston, Virginia, USA

Global

Coverage

Measurement from 172 Countries; 44 Markets

Reported

Big Data Over 1.5 Trillion Digital Interactions Captured

Monthly

V0113


Data sourced from comScore’s global panel of 2 million Internet users

2 Million Person Panel

360°View of Person Behavior

CENSUS

Unified Digital Measurement™ (UDM)

Patent-Pending Methodology

1 Million Domains Participating Adopted by 90% of Top 100 U.S. Media Properties

PANEL

PERSON-Centric Panel with

WEBSITE-Census Measurement

Web Visiting & Search Behavior Online

Advertising Exposure

Advertising Effectiveness

Demographics, Lifestyles & Attitudes

Media & Video Consumption

Transactions

Online & Offline

Buying

Mobile Internet Usage & Behavior

PANEL

V0411 Plus 5 Million TV Set Top Boxes for 3-Screen Measurement


Topics for Today

Global Overview

Internet User Trends

Top Online Properties

Social Media

Search

Online Video

Mobile

Multi-Platform

Lessons Learned About Digital

Advertising

© comScore, Inc. Proprietary. © comScore, Inc. Proprietary.

GLOBAL OVERVIEW

#FutureinFocus


66%

13%

34%

87%

1996 2012

Outside US

Distribution of Worldwide Internet Audience

The U.S. is no Longer the Centre of the Online Universe

Source: comScore MMX, December 2012, Worldwide 15+,

Asia Pacific

42%

Europe 27%

North America

14%

Middle East - Africa

9%

Latin America

8%

Outside US

© comScore, Inc. Proprietary. 7 Source: comScore MMX, December 2012, Europe 15+

Online Desktop Audience Across the Globe

China Comprises 22% of Global Audience

Brazil and India Post Highest Growth

351.2

196.3

78.3 73.7 65.5 64.3

53.0 42.6 39.2

29.5 25.6 24.7 23.9 22.8 20.0 16.8 15.2 14.5

To

tal M

on

thly

Un

iqu

e V

isit

ors

(00

0)

India’s internet audience grew 25% since

July 2012, overtaking Japan as the world’s

3rd largest internet audience

Brazil’s web population posted the highest

growth worldwide, increasing by 41% since

July 2012


35.9

25.8 25.4 21.0

17.6

North America Europe Latin America Asia Pacific Middle East - AfricaMo

nth

ly H

ou

rs p

er

Vis

ito

r

Source: comScore MMX, July 2012 and July 2013, Worldwide 15+,

Time Spent and Growth Across Regions

Asia Pacific is Largest and Still Growing, Lat Am has Highest Percent Growth

Global Average:

24.5 Hours a Month

617

399

213

134 134

655

419

222 152 134

Asia Pacific Europe North America Latin America Middle East -Africa

Mo

nth

ly U

niq

ue

Vis

ito

rs

(MM

)

Jul-12

Jul-13

+6%

+5%

+4%

+13% ---

© comScore, Inc. Proprietary. 9 Source: comScore MMX, July 2013

Engagement Across Global Audiences Heavy Users Not Only in Europe and North America; Emerging Markets Post High Usage Too

46.9

36.3

34.8

33.1

32.1

29.3

28.3

27.4

26.4

25.9

24.7

24.7

24.6

24.5

24.4

24.3

23.7

23.6

23.0

22.7

Italy

United States

United Kingdom

Canada

Brazil

Vietnam

Turkey

France

Argentina

Israel

Taiwan

Finland

Spain

Netherlands

Poland

Thailand

Chile

China

Hong Kong

Russian Federation

Ave

rag

e M

on

thly

H

ou

rs p

er

Vis

ito

r


Established Online Audiences in North America, Europe Skew Older

60 percent of Latin American Web Audience is Under 35

26%

28%

21%

21%

32%

26%

30%

24%

18%

28%

21%

23%

21%

18%

20%

14%

11%

17%

18%

12%

13%

8%

16%

26%

8%

WW

Asia Pacific

Europe

North America

Latin America

% o

f O

nli

ne P

op

ula

tio

n

Persons: 15-24 Persons: 25-34 Persons: 35-44

Persons: 45-54 Persons: 55+

Internet Audience 15+ accessing Internet from a Home or Work Desktop

Source: comScore Media Metrix, July 2013


Women Spend Less Time Online than Men in All Regions

Percent Difference in Usage is Largest in Lat Am, Europe

25.3

21.5

27.2

37.6

27.0

23.7 20.4

24.3

34.3

23.8

WW Asia Pacific Europe NorthAmerica

LatinAmerica

Avera

ge M

on

thly

Ho

urs

p

er

Vis

ito

r Males 15+

Females 15+

Female Share of Internet Population

47% 45% 49% 51% 49%




Males 35-44 are Heaviest Users Among Age/Gender Groups

Among Women, 45-54 year-olds are the Heaviest Desktop Internet Users

25.3

23.5

25.1

22.6

26.4

24.0

25.3 24.9

23.8

24.3

Males Females

Avera

ge M

on

thly

Ho

urs

On

lin

e p

er

User

15-24 25-34 35-44 45-54 55


Source: comScore Media Metrix, July 2013, Worldwide


TOP ONLINE PROPERTIES


Top Global Web Properties

1,208,800

877,967

796,943

724,542

492,107

403,717

358,243

341,391

317,744

317,645

Google Sites

Microsoft Sites

Facebook

Yahoo! Sites

Wikimedia FoundationSites

Amazon Sites

Baidu.com Inc.

TENCENT Inc.

Alibaba.comCorporation

Sohu.com Inc.

219.3

56.1

362.1

128.5

12.1

22.0

72.1

247.0

128.6

32.4

Unique Visitors (000) Minutes per Visitor




SOCIAL MEDIA


Most Avid Users of Desktop-based Social Networking in Latin America

Lowest Reach and Usage of Category in Asia Pacific

79.5%

71.9%

83.3%

88.0%

94.0%

74.4%

Worldwide

Asia Pacific

Europe

North America

Latin America

Middle East-Africa

Monthly Reach of Social Networking

5.6

2.4

8.1

5.4

9.0

7.0

Average Monthly Time Spent on Social Networking (Hours)




Virtually All Time Social Networking in Latin America

is Spent on Facebook

80% 69%

99%

69%

87% 94%

World-Wide

Europe LatinAmerica

AsiaPacific

NorthAmerica

MiddleEast - Africa

Facebook Share of Total Minutes Spent on Social Networking

By Region

Share of [M]FACEBOOK.COM Minutes vs. Social Networking Category




SEARCH

#FutureinFocus

© comScore, Inc. Proprietary. 19 Source: comScore, qSearch, December 2012, UK 6+

Google Captures Lion’s Share of Searches in All Markets but Asia,

Where Baidu Ranks on Par With Google

Asia Pacific Europe NorthAmerica

LatinAmerica

Middle East- Africa

Google Sites All Other

Total

Searches

(MM)

Google

Share of

Searches

62,794

50,425

34,063

21,136

9,361 34%

75%

67% 88% 89%

© comScore, Inc. Proprietary. 20 Source: comScore, qSearch, December 2012, Europe 15+

Google Captures 86% of the EU Search Engine Market

86%

10%

2% 1%

1%

Sh

are

of

Mo

nth

ly

Searc

hes

Google Search

Yandex WebSearch

Mail.Ru - Search

Bing

Ask Network

© comScore, Inc. Proprietary. 21 Source: comScore, qSearch, July 2013, Asia Pacific15+

Google, Baidu Near Even in Asia Pacific Search Engine Market

39%

34%

10%

9%

8%

Sh

are

of

Mo

nth

ly

Se

arc

he

s

Google Sites

Baidu.com Inc.

Alibaba.comCorporation Qihoo.com Sites

© comScore, Inc. Proprietary. 22 Source: comScore, qSearch, July 2013

Turkey Leads The Way With Most Searches per Searcher

Worldwide Average for July 2013 is 110 Searches per Searcher

201

173 162 160 155 155 149 147 146 145

130 127 124 123 123 121 117 115 115 111

Mo

nth

ly S

earc

hes p

er

Searc

her

Searches Per Searcher Per Month


ONLINE VIDEO

#FutureinFocus


50

70

90

110

130

150

170

190

210

Videos per Viewer

Source: comScore Video Metrix, July 2012 to July 2013, Worldwide 15+

Online Video Reaches 1.3 Billion Viewers Worldwide on a monthly

basis

Average Consumption Shows some Seasonality, up 13% YOY

July

2013

July

2013

13%

7%

1,200,000

1,220,000

1,240,000

1,260,000

1,280,000

1,300,000

1,320,000

1,340,000

1,360,000Online Video Growth on Desktop

July

2012

July

2012

Total Unique Viewers (000)

Average Videos per Viewer

© comScore, Inc. Proprietary. 25 Source: comScore Video Metrix, July 2013, Worldwide 15+

Google (i.e. YouTube) Still King of Online Video

Videos per Viewer

100.5

14.0

20.0

15.1

15.0

8.8

13.3

12.9

11.5

15.3

YouTube accounts for

99.7% of Google’s

video viewers

794,919

319,873

268,072

248,681

231,916

223,317

214,268

213,688

192,479

170,171

Google Sites

Facebook

Youku Inc.

VEVO

TENCENT Inc.

Viacom Digital

Sohu.com Inc.

Tudou Sites

BrightRollPlatform

IQIYI.COM

Top 10 Destinations for Online Videos Total Monthly Viewers

(000)

© comScore, Inc. Proprietary. 26 Source: comScore Video Metrix, December 2012

82 MILLION AMERICANS

ARE GOING TO WATCH

1.6 BILLION VIDEOS

TODAY

© comScore, Inc. Proprietary. 27 Source: comScore Video Metrix, December 2012

NUMBER OF VIDEOS

WATCHED ONLINE IN U.S.

+800%

OVER LAST 6 YEARS


44,999

2,365

TV (Live + Time-Shifted) Online Video

Huge Upside: Time spent watching online video in the U.S. is equivalent to

only 5% of the time spent watching TV. Will this increase rapidly because of

viewing patterns of younger segments?

Monthly Hours (Millions) Spent Watching TV vs. Online Video

SOURCE: TV: Nielsen Cross Platform Report, Q2 2013

Online Video: comScore Video Metrix, US, June 2013

Time Spent Watching

Online Video Equivalent

to 5% of TV


MOBILE LANDSCAPE

#FutureinFocus

© comScore, Inc. Proprietary. 30 Source: comScore MobiLens, 3 month average ending July 2013

UnitedStates

Japan

Germany

UK

Italy

France

Spain

Size of Global Mobile Audiences & Smartphone Penetration

238.5

Total Mobile

Audience (MM) Smartphone Users

102.7

61.0

49.5

48.0

47.5

36.0

60%

36%

59%

70%

59%

59%

74%

© comScore, Inc. Proprietary. 31 Source: comScore MobiLens, 3 month average ending December 2012, EU5, 13+

The Who’s Who of the EU5 Smartphone Market

Leading Smartphone Handset Manufacturers and Operating Systems

32%

21% 16%

9%

7%

15%

Top 5 Smartphone Handset Manufacturers (OEM)

Samsung

Apple

Nokia

HTC

RIM

Other

50%

20%

15%

7%

5% 3%

Top 5 Smartphone Operating System (OS)

Google

Apple

Symbian

RIM

Microsoft

Other

© comScore, Inc. Proprietary. 32 Source: comScore MobiLens, 3 month average ending July 2013, US, 13+

The Who’s Who of the U.S. Smartphone Market

Leading Smartphone Handset Manufacturers and Platforms

44%

26%

9%

7%

7% 5% 2%

Top Smartphone Handset Manufacturers (OEM)

Apple

Samsung

HTC

Motorola

LG

BlackBerry

Nokia

52% 41%

4% 3% 0%

Top Smartphone Operating System (OS)

Android

Apple

BlackBerry

Microsoft

Symbian


MULTI-PLATFORM USAGE IN THE U.S.


The Brave New Digital World: Adoption of Smartphones & Tablets has

dramatically changed the digital media landscape

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Nu

mb

er

of

Devic

e O

wn

ers

143 MILLION

71 MILLION

Number of Device Owners (Smartphone and Tablet)

Source: comScore MobiLens/TabLens 3 month average ending June 2013

+25%

vs. YA

+55%

Vs. YA

© comScore, Inc. Proprietary. 35 Source: comScore Device Essentials, Monday, 21st January 2013, UK

Devices Play Different Roles Throughout the Day S

ha

re o

f D

evic

e P

ag

e T

raff

ic o

n a

Typ

ica

l W

ork

da

y

Mobile brightens the commute

Source: comScore Device Essentials, Monday, 21st January 2013, US

Tablets

popular at

night PCs dominate

working hours


Smartphones and Tablets have driven a doubling of time spent with

digital media over past 3 years. In total, no evidence of desktop

cannibalization

416 477

81

381

100

May 2010 U.S. May 2013 U.S.

Tablet

+93%

Total U.S. Digital Media Time by Platform

(Billions Minutes)

+370%

Phone

+15%

Desktop

Source: comScore Media Metrix Multi-Platform


Desktop consumption of Weather content has been cannibalized

by extensive phone use; while engagement with Sports content has

seen strong growth across all platforms

6.5 7.8

0.7

3.5

1.1

Feb-10 Feb-13

Tablet

Smartphone

Desktop

3.2

1.7

0.4

2.1

0.4

Feb-10 Feb-13

Tablet

Smartphone

Desktop

Sports Category Weather Category

U.S. Time Spent in Minutes (Billions) by Platform: Desktop, Smartphone & Tablet Source: comScore Media Metrix Multi-Platform, U.S., February 2013


Research Lab: A Look into the Future

Billion Dollar


4hr 19min 4hr 28min 5hr 6hr 7min

50 min

59 min

55 min 51 min

40 min

47 min

TV Only TV + PC/LaptopOnly

TV + PC/Laptop +Mobile Only

TV + PC/Laptop +Mobile + Tablet

More Screens = More Time Spent on Every Device

Average Time Spent Per Day Following Olympics

4hr 19min

5hr 18min

6hr 50min

8hr 29min

TV

Only TV +

PC/Laptop

TV +

PC/Laptop +

Mobile

TV +

PC/Laptop +

Mobile +

Tablet

Tablet

Mobile PC/Laptop

TV


SOURCE TV: Nielsen Cross Platform Report, US, Q1 2013

SOURCE Internet: comScore Media Metrix Multi-Platform, US, Q1 2013

The Internet is not yet displacing TV in the U.S.:

Time spent online using desktop and mobile devices equals only one-

third of time spent watching TV

TVInternet (Desktop + Mobile)

48,361

16,466

U.S. Monthly Total Hours Spent in Q1 2013 TV vs. Multi-Platform Internet Use (Millions of Hours)

Note: TV includes Live and Timeshifted viewing.

Internet includes Desktop, Smartphone and Tablet consumption.


DIGITAL ADVERTISING: LESSONS LEARNED

#FutureinFocus


Four Key Challenges with All Digital Advertising

Viewability Brand Safety Targeting Fraud

© comScore, Inc. Proprietary. 43 Source: comScore 2011

The Cookie Challenge

Branding advertisers on TV are accustomed to audience guarantees and

expect the same in digital

Accuracy of cookie-based digital media plan delivery is problematic

Cookie Deletion Cookies Are Not People

© comScore, Inc. Proprietary. 44 vCE Charter Study (2012)

Viewability: In-view rates are low

comScore vCE Benchmarks (2013)

1000’s campaigns, 290 billion impressions

Mix of advertisers

Mix of publishers

46% 54%

“Real-World Scenario”

IN-VIEW NOT IN-VIEW


Premium Publishers Boast Higher Average In-View Rates than Ad

Networks/Exchanges

© comScore, Inc. Proprietary. 46 40% improvement in viewability generating 75% increase in sales impact

Huge return from increasing viewability: A 40% increase in viewability

drives a 75% increase in sales lift for Kellogg’s

Digital Sales Lift Index Sales Lift Indexed to 100 for Less Than 50% Viewability of Impressions

Less Than 50%Viewability

At Least 70%Viewability

100

175


Using comScore vCE, campaign delivery can be monitored and optimized

in-flight. In the example below, Publisher 1 is delivering results superior to

Publishers 2 & 3 and would receive a greater share of ad spend

In-Flight Campaign Optimization by Publisher

Based on Cost and Effectiveness

• Opportunity to optimize - budgets follow performance

• Multiple publishers, each with high reach potential

• Wide variance in performance observed

Brand X - Q3/Q4

Publisher Avg

Frequency

Impressions

in Target

Impressions

in View

Lift in

Awareness CPM

1 3.5 24.5% 83% 5.74 $2.44

2 3.0 16.9% 91% 0.55 $9.08

3 8.4 23.5% 71% 0 $8.62


Real-Time: In-flight optimization of Reach, Frequency and Targeting is

driving rapid gains in marketing ROI for Kellogg’s

Year 1 Year 2 1H Year 3

ROI

3X

6X

Year 1 Year 2 1H Year 3

ROI 2X

5X

Brand 1 ROI Brand 2 ROI

Increase in ROI from Improved In-Flight Targeting


Key Takeaways

Internet use surging on a global basis and the U.S. is no longer center

of the digital world. China now has world’s largest desktop user base.

Google, Microsoft and Facebook are the top three global properties

Facebook dominates social networking on a global basis

Google dominates search in all regions with the exception of Asia-Pac

1.3 billion people around the world watch online video on a monthly

basis, with strong growth occurring in number of viewers and videos

viewed. YouTube dominates

With the availability of smartphones and tablets, the multi-platform

omnivore has emerged. But, it’s not a zero-sum game: More devices

result in more time on all devices, including TV

In-flight optimization of digital media plans in terms of reach,

frequency, targeting and viewability can dramatically increase ROI

© comScore, Inc. Proprietary.

Thank You!

The Digital World in Focus

For more information about comScore,

please email us at:

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