Google Day - Istanbul, Turkey
State of the Internet: Global Perspectives &the Role of Turkey in the Digital World
Jack Flanagan, EVP, comScore, Inc.November 17, 2009
Agenda
� comScore Overview
– Who we are and what we do
� Global Context
– Online trends by country & region– Usage intensity, top categories
� Turkey: In Focus
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� Turkey: In Focus
– Usage Intensity– Penetration of Online Categories– Demographic Composition– Social Networking– News and Information
comScore Overview
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comScore Is The Leader In Online Measurement
� We are the largest provider of digital marketing intelligence, using a platform that helps our customers make better-informed business decisions and implement more effective digital business strategies
� We measure the continuous online activity of 2 million people globally who have granted us explicit permission to confidentially measure their Internet usage patterns
360°°°°View of Consumer Behaviour
Online Transactions
DemographicsLife Stages
Web Visiting and Viewing
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� Our products and solutions provide our customers deep insights into consumer behaviour, both online and offline
Media Exposure
Search Behaviour
Streaming Video
Recognized For Outstanding Growth And Innovation
America’s Fastest Growing
High Tech AwardRecognized as a technology leader for successfully developing innovative products.
Fastest Growing Global Research FirmcomScore is currently the fastest-growing firm in the prestigious Honomichl Global Top 25 report, ranked as the 20th largest global research firm
August 2008
2007 Technology PioneerFirst market research firm to be named a 2007 Technology Pioneer by the World Economic Forum.
December 2006
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America’s Fastest Growing Private CompaniescomScore was identified by Inc. Magazine as one of the fastest-growing private companies in the U.S. from 2003 to 2006September 2007
Top 100 Innovative CompaniesNamed one of the 100 companies that will shape the next year in technology. December 2004
World’s Largest DatabaseGrand prize winner for developing the largest NT decision support warehouse.December 2001, 2003, 2005
Deloitte 2008 Technology Fast 500comScore recognised amongst the Deloitte 2008 Technology Fast 500
November 2008
products.November 2004
Agencies
1,200+ Clients WorldwideSome of our European & Turkish customers
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Data collected from more than 2M panelists in over 170 countries
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Almost 40 countries reported on each month
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Global Context
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Middle East - Africa
Europe
North America
Latin America
Distribution of Worldwide Internet AudienceUS Internet Population vs. Rest of the World
Rest of the World
US
The US is No Longer the Center of the Online Univer se
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� In 1996, 2/3 of the world’s Internet population was in the US, yet today Asia Pacific is the largest r egion.
� Many emerging regions are likely to bypass old mode s, skipping dial-up to go straight to broadband, ma king multimedia, video, and collaborative content immedi ately accessible.
� Early adoption of mobile web in addition to PC web will likely be popular in many of these high-growth areas.
- AfricaAsia PacificUS
Source: comScore World Metrix, July 2009
Europe Continues Audience Growth
� Growth is flat in North America
� European growth mostly driven by Russia
� Asia continues rapid growth on a very large base
� Growth in LatAm expected to continue on the back of increased residential broadband penetration region-wide
960.21,165.2
Worldwide Online Population (Millions)
August 2008 August 2009
+4%
11© comScore, Inc. Proprietary and Confidential. Source: comScore Media Metrix, August 2008 to August 2009
August 2008 August 2009
389.6
271.1
183.8
70.3 45.4
477.2
325.6
191.0
90.2 81.2
Asia Pacific Europe North America Latin America Middle East - Africa
Online Population by Region (Millions)+22%
+4%
+20%
+28% +79%
Aug 2009Aug 2008
Internet Users Age 15+ (MM)
China Surges Past the US
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While US user growth has remained flat over the past year, China, Russia, and Brazil have
experienced impressive growth rates of 31%, 26% and 23%, respectively.
Source: comScore World Metrix, July 2009
Millions of Internet Users (15+, home & work locations)
Average Hours Per Visitor Per Month
43.1
32.5
29.7
29.5
28.5
28.3
Canada
United States
Turkey
Israel
United Kingdom
Mexico
Online Engagement by Country
Canada is the most engaged country,
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27.9
27.2
26.6
26.4
25.2
25.1
25.0
24.9
24.6
South Korea
France
Venezuela
Netherlands
Chile
Colombia
Spain
Brazil
Sweden
Canada is the most engaged country, followed by the US, both of which
increased time online over the past year (Canada +7%, US +17%)
Source: comScore World Metrix, July 2009
The Majority of Top Properties’ Audiences Coming fr om Outside US
370
854
702
592
84%
77%
77%
US Audience Non-US Audience Total Worldwide Unique Visitors (MM)
�The top 10 Global Properties attract a
84%
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196
19264%
237
19770%
76%
73%
295
268
81%
66%
Source: comScore World Metrix, July 2009
�The top 10 Global Properties attract a majority of Unique Visitors from outside the US; Google Sites and Microsoft Sites attain 84% of their audience from non-US countries.
�All top sites have experienced a shift in visitor composition to a more international audience: non-US visitors now represent 77% and 66% of Facebook’s and AOL’s visitors, respectively.
Extended Universe Reporting Is Important in Develop ing Markets:Usage Driven by Locations Outside of Home & Work
� The Extended Universe has the most impact in Brazil, where over 50% of the online population is outside of the ‘aged 15+, online from home or work’ definition
� India has considerable room for growth; currently only 7% of the population aged 15+ is online
109,948 300,000
350,000
Internet Penetration
30.8%Reach of Extended
Universe
15© comScore, Inc. Proprietary and Confidential. Source: comScore World Metrix, September 2009, and CIA population estimates
220,834
35,810 34,711 31,933 19,745
109,948
20,170 38,111 8,937
0
50,000
100,000
150,000
200,000
250,000
China India Russian Federation
Brazil Turkey
Extended Universe Additions
comScore Defined Universe
7.0%48.1%
28.9%51.3%
Global Search Market Thriving
Germany
France
United Kingdom
Japan
China
United States 21.8
11.5
7.9
5.7
5.0
4.6
Online Searches (bn) by Country August 2008 – August 2009
August 2008 August 2009
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Mexico
Spain
Italy
India
Russian Federation
Turkey
Brazil
Canada
Korea
Germany 4.6
3.5
3.4
3.3
2.7
2.5
2.5
2.5
2.1
2.0
� A total of 117.3 billion online searches were conducted globally in August 2009 – 42% more than in August 2008
� 81.4% of these searches were carried out outside of the US
� More searches are conducted in Turkey than in Italy or Spain, despite having a smaller online population
Source: comScore qSearch, August 2009
80%
90%
100%
Google Dominates Search in Turkey, But Not Everywhe re
� Google dominates many search markets, especially where there is no established local alternative; in Turkey, 98% of search engine searches are conducted on Google
� However, Yandex accounts for over half of search engine searches in Russia, and Baidu is the clear search leader in China
Share of Search Engine Searches
55%
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98% 94% 92% 87%
34%
15%0%
10%
20%
30%
40%
50%
60%
70%
Turkey Brazil India United Kingdom
Russian Federation
China
Source: comScore qSearch, August 2009
55%
72% Yandex
Baidu
3,000
3,500
Users In Less Developed Markets Are Less Active Onl ine
� Average time spent online is an indicator of the state of development of internet markets, and Turkish users spending more time online than UK users shows the Turkish market to be highly developed
� The average user in Turkey is online for over 31 hours per month, compared to 11 hours in India
Average Time Spent and Pages Viewed per Unique Visi tor per Month
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0
500
1,000
1,500
2,000
2,500
Turkey United Kingdom
Brazil China Russian Federation
India
Time Spent (mins) Pages Viewed
Source: comScore World Metrix, September 2009
Heavy Users Most Visible In Developing Markets
� In all of the largest developing markets, heavy internet users account for a higher volume of total pages than in the UK
� Russia has the highest page consumption disparity, with 73% of pages viewed by 20% of the population
80%
100%
Share of Page Views by User Segment
19© comScore, Inc. Proprietary and Confidential. Source: comScore World Metrix, August 2009
9% 11% 11% 10% 7% 4%
34% 31% 30% 30%24% 23%
57% 57% 59% 60%69% 73%
0%
20%
40%
60%
80%
United Kingdom
Turkey China Brazil India Russian Federation
Heavy Users
Medium Users
Light Users
Turkey: In Focus
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Profile of the Internet Audience in Turkey
� Internet users in Turkey skew young: nearly 40% of the Internet audience is under the age of 24, and nearly 70 percent are unde r the age of 34
� In comparison, only 54 percent of the global online population is under 34
Turkey
Distribution of Internet Users 15+
31%38% 18% 10% 3%
21© comScore, Inc. Proprietary and Confidential. Source: comScore Media Metrix, September 2009
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Worldwide
Europe
Persons: 15-24 Persons: 25-34 Persons: 35-44 Persons: 45-54 Persons: 55+
31%38% 18% 10% 3%
14%
10%
16%
14%
21%
22%
23%
26%
26%
28%
Top Properties in Turkey
Total Unique Visitors* (000) % Reach
Total Internet 19,745 100.0
1 Google Sites 18,361 93.0
� Google ranks as #1 property in Turkey
– 18.3 million unique visitors, 93% reach
� 40% of top properties are US sites
� Dogan Online top Turkish property with 11.1 million unique visitors
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1 Google Sites 18,361 93.0
2 Microsoft Sites 17,597 89.1
3 FACEBOOK.COM 16,050 81.3
4 Dogan Online 11,148 56.5
5 Milliyet Group 8,785 44.5
6 Mynet A.S. 8,321 42.1
7 BLOGCU.COM 8,239 41.7
8 Hurriyet Internet Group 7,471 37.8
9 Nokta Internet Teknolojileri 7,072 35.8
10 Yahoo! Sites 6,448 32.7
* Persons 15+ Home & Work – does not include shared internet access
High Category Penetrations are Further Evidence of Turkish Development
� The penetrations of key categories in Turkey are closest to those in the UK
� Turkey is the country with the highest category penetration in 5 of the 8 categories selected, with significantly higher reach for the News/Information and Games categories
Selected Categories Turkey United Kingdom
Brazil China India Russian Federation
Search/Navigation 92% 91% 79% 66% 72% 64%
Conversational Media 89% 90% 79% 52% 71% 65%
23© comScore, Inc. Proprietary and Confidential. Source: comScore World Metrix, September 2009
Entertainment 83% 86% 74% 64% 66% 65%
Retail 61% 76% 62% 50% 40% 42%
Multimedia 75% 72% 61% 51% 49% 50%
News/Information 76% 67% 56% 50% 43% 46%
Games 68% 57% 50% 49% 28% 44%
Sports 48% 44% 40% 22% 22% 14%
3
Turkey
But Demographic Composition Shows Turkey’s Online D evelopment to be Incomplete
� Young males are typically the earliest adopters in emerging internet markets and digital platforms
� The strong presence of these early adopters in Turkey – 71% of users are aged 15-34 and 58% are male – implies that there is still room for further advancement
UK
Percentage Composition of Unique Visitors by Age
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40
31
18
103
Source: comScore World Metrix, September 2009
21
19
21
19
19
15-24
25-34
35-44
45-54
55+
Facebook Leads Turkish Social Networking, but Less Developed Markets Prefer Local Players
� The surge of Social Networking giant Facebook - accessed by 81% of the Turkish online population –has not been a truly global phenomenon. Of the 214 million people 15+ online in Brazil, Russia, India and China, only 5.7% visited the site in September
� China has a particularly fragmented Social Networking market, still in it’s infancy, where Facebook reaches only 0.1% of the online population
50%
Social Networking Share of Total Pages
25© comScore, Inc. Proprietary and Confidential. Source: comScore World Metrix, September 2009
43% 40%
20% 19% 18%12%
0%
10%
20%
30%
40%Country
Leading Social
NetworkReach
Turkey 81.3%
United Kingdom 74.1%
Brazil 71.5%
Russian Federation 46.8%
India 44.0%
China 24.0%
Online A Major Platform for News & Information Cont ent in Turkey
� While half (25.4m) of the UK population 15+ visited a site in the News and Information category in August, the 109 million who did so in China makes up only 10% of the Chinese population 15+
� In Turkey, 76% of the online population and 27% of the total population 15+ access News/Information sites – almost as many individuals as in India
CountriesOnline Reach of
News/Information Sites
Unique Visitors to News/Information
Site
Total Population 15+ Reach of
News/Information Sites
Turkey 76.0% 15,016 26.9%
26© comScore, Inc. Proprietary and Confidential. Source: comScore World Metrix, September 2009
Turkey 76.0% 15,016 26.9%
United Kingdom 68.1% 25,387 49.9%
Brazil 56.2% 17,948 12.3%
China 49.6% 109,480 10.2%
Russian Federation 46.2% 16,025 13.3%
India 42.8% 15,339 1.9%
Top News & Information sites in Turkey
� 76% of the Turkey online population visited News & Information web sites
– 15 million unique visitors
� Milliyet.com.tr ranked as the number 1 site in the category with 8 million unique visitors
MILLIYET.COM.TR
News/Information
Unique Visitors
27© comScore, Inc. Proprietary and Confidential.
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
ENSONHABER.COM
NTVMSNBC.COM
SABAH.COM.TR
HABERTURK.COM
TUMGAZETELER.COM
Ekolay News
HABERLER.COM
Mynet News
HURRIYET.COM.TR
MILLIYET.COM.TR
Summary
� Internet growth will continue to come from outside the US
– Asia Pacific best poised for continued growth
� Extended universes very important in developing markets
– More than 50% in some markets (i.e. Brazil, China, India)
� Turkey shares many characteristics with the most developed internet markets;
– Strong presence of Search and key categories
– Dominance of Western supersites (Google, Facebook)
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– Dominance of Western supersites (Google, Facebook)
– High usage intensity of those online and visibility of ‘lighter’ internet users
� But there are signs that there is still ground to make up
– Internet penetration lower than Western European
– Current high rate of growth in internet users
– Demographic composition characterised by early adopters and young users