MEASURING THE DIGITAL WORLD
State of the Internet comScore, Inc.
July 2008
Meeting Objectives
■ Introduce comScore – Briefly review data sources / overall capabilities used for this presentation
■ Convey State of the Internet, with a focus on: – High level trends/Worldwide opportunity – Continued growth of online advertising – Impact of increased broadband penetration – Emergence of new sites/business models – Evolution of streaming – Growth of eCommerce – Development of search
■ Stimulate discussion – not intended as a one-way dialogue!
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comScore Vision: Pervasive Digital Measurement Anyone, Anywhere, Any Time, Any Device
digital world is not place or time dependent The
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What We Do…. ■ 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.
■ Our products and solutions provide our customers deep insights into consumer behavior, both online and offline Proprietary and Confidential Do not distribute without written permission from comScore
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Proprietary Data Collection Technology
■ Complete URL/click-stream data ■ All panelists’ transactions are captured
Panelist’s PC
■ Secure
Browser
HTTPS Website
CProxy
Streaming Site
■ Non-Secure ■ All personally-identifiable information (PII) is stripped from web page on panelists’ machine before being transferred to Collection Server ■ More accurate ID of user location since the browser directly initiates the request
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HTTP Website
Collection Server
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comScore Measures the Digital World Who, What, Where, Why? AUDIENCE
ACTIONS
DEMOGRAPHICS
CONTENT VISITATION
LIFE STAGE
SEARCH
PC ATTRIBUTES
VIDEO / RADIO STREAMING
SEGMENTATION
COMMUNICATION
LINKED DATASETS Acxiom; Claritas/Prizm; internal CRM database, IRI, …
BROWSER IE, AOL, Netscape, …
Email, IM, Mobile
TRANSACTIONS Purchase / Subscriptions; Configurations; Price Request
IMPACT
LOCATION
ADVERTISING:
PC LOCATION:
Display, Streaming, Search Reach/Frequency Tracking & Exposure Effectiveness Sales: Results / Clickthrough / Referrals
ATTITUDINAL: Awareness, preference, customer satisfaction
Home; Work (Corporation, Laptop); University
INTERNATIONAL: US/Canada Europe Asia Latin America Language Regions
WORLDWIDE
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Recognized for Outstanding Growth and Innovation
2007 Technology Pioneer First market research firm to be named a 2007 Technology Pioneer by the World Economic Forum. December 2006
Fastest Growing Global Research Firm Currently ranked the 18th largest US and 21st largest global research firm. August 2007
High Tech Award Recognized as a technology leader for successfully developing innovative products. November 2004
America’s Fastest Growing Private Companies comScore ranked 97th among the nation’s fastest growing privately held firms.
World’s Largest Database
November 2004
Grand prize winner for developing the largest NT decision support warehouse. December 2001, 2003, 2005
Top 100 Innovative Companies
Rising Star
Named one of the 100 companies that will shape the next year in technology.
Named one of only three “Rising Stars” among Virginia-based technology companies.
December 2004
October 2004
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Advising Hundreds of Leading Businesses (partial list) Telecom
Financial
Retail
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Travel
CPG
Pharma
Technology
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Advising Hundreds of Leading Businesses (partial list) Media
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Agencies
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Mapping the Internet
WORLDWIDE WORLDWIDE CONTEXT CONTEXT
US US INTERNET INTERNET INDUSTRY INDUSTRY TRENDS TRENDS
Content Content // Visitation Visitation
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Streaming Streaming Activity Activity
eCommerce eCommerce
Search Search
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Online Population: US vs. Rest of World Online Population Growth Over Time
Online Population by Geography
Total
Rest of the World
US US
There There are are approximately approximately 950M 950M people people online online today; today; 787M 787M (83%) (83%) are are located located outside outside the the US. US.
Source: comScore World Metrix, July 2008 Proprietary and Confidential Do not distribute without written permission from comScore
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Unique Visitors to Top Properties US Audience
Non-US Audience
Total Worldwide Unique Visitors (MM)
83%
722.5
83% 77% 63%
542.2 271.0
244.3
80% 73%
236.8
55%
The The top top 10 10 Global Global Properties Properties attract attract aa majority majority of of Unique Unique Visitors from outside Visitors from outside the the US US
174.4 171.2
75%
159.8
67% 75%
636.4
144.8
Source: comScore World Metrix, July 2008 Proprietary and Confidential Do not distribute without written permission from comScore
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How the World Uses the Internet Worldwide Worldwide and and US US Reach Reach (%) (%)
•• Search Search is is second second only only to to Portals Portals in in terms terms of of Worldwide Worldwide and and US US reach, reach, with with Entertainment Entertainment and and Shopping following closely Shopping following closely •• Reach Reach is is higher higher for for almost almost all all categories categories in in the the US, US, except except for for the the Portals Portals and and Search Search categories categories where where Worldwide reach has surpassed US reach Worldwide reach has surpassed US reach Source: comScore World Metrix, July 2008 Proprietary and Confidential Do not distribute without written permission from comScore
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Other Countries Catching Up to the US Internet Users Age 15+ (MM)
China, China, Japan, Japan, Korea, Korea, and and India India combined combined to to represent represent 29% 29% of of the the total total Worldwide Worldwide online online population; population; this this total total is is 68% 68% larger larger than than the the US US online online population population
Source: comScore World Metrix, July 2008
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Online Engagement by Country Average Hours Per Visitor Per Month
•• In In terms terms of of online online behavior, behavior, Canada Canada is is the the most most engaged engaged country, country, followed followed by by Israel Israel •• The The US US falls falls in in the the top top half half of of aa list list dominated by mostly South American dominated by mostly South American and and Western Western European European countries countries
Source: comScore World Metrix, July 2008
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Online Engagement By Region
Internet Users (000) Age 15+
Average Hours Per Visitor Per Month
18.4 18.4
21.7 21.7
29.9 29.9
26.4 26.4
27.1 27.1 At At aa regional regional level, level, Asia Asia has has the the most most visitors, visitors, but but is is the the least least engaged, engaged, while while North North America America is is the most engaged the most engaged Source: comScore World Metrix, July 2008
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Top 10 countries based on Total Search Volume A total of 80.6 Billion online searches were conducted Worldwide in July 2008. China occupies the 2nd position in total online searches, contributing to 14% of Worldwide searches Top Top 10 10 Countries Countries by by Search Search Volume Volume
Search Volume (Millions)
21% The The Top Top 10 10 countries countries account account for for 66% 66% of of Worldwide Worldwide searches searches 14%
8% 5%
5% 3%
3%
3%
3%
2%
Source: comScore qSearch, July 2008 Proprietary and Confidential Do not distribute without written permission from comScore
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Global Search: The New Frontier Internet Internet Population Population vs. vs. Total Total Population Population 7%
Total Total Ad Ad Spend Spend by by Country Country
51% 8% 42%
39%
10%
50%
38%
31% 62%
%
2006 Total Ad Spend (MM) USA $163,036 China $48,518 Japan $34,240 UK $25,827 Germany $21,771 Brazil $18,302 Mexico $16,493 France $13,261 Italy $11,140 Canada $10,308
= Percentage of the Population Using the Internet
•• The The US US has has 1.8x 1.8x the the number number of of Internet Internet users users as as China, China, but but China China has has 4.4x 4.4x the the population population •• IfIf 25% 25% of of China's China's population population used used the the Internet, Internet, they they would would outnumber outnumber the the entire entire US US population population •• While While less less than than 10% 10% of of the the populations populations of of most most Latin Latin American American countries countries are are online online today, today, there there is is great great potential potential in the Latin American market as demonstrated by the total ad spend and population of countries like Brazil in the Latin American market as demonstrated by the total ad spend and population of countries like Brazil and and Mexico Mexico Source: comScore Marketing Solutions; MediaPost Search Insider, January 29, 2008 Proprietary and Confidential Do not distribute without written permission from comScore
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Worldwide Search Highlights Searches per Searcher
Searcher Conversion*
Result Pages per Search •• 90% 90% of of people people online online from from China China use use search, search, which which still still leaves leaves room room for for growth growth •• Canada Canada generates generates the the highest highest searches per searcher searches per searcher
United Kingdom Finland Canada France Italy Germany Korea Sweden Portugal Venezuela Japan China
1.3 1.6 1.4 1.4 1.4 1.4 1.3 1.6 1.5 1.4 1.5 1.6
The The first first search search page page is is extremely important extremely important as as the the average average searcher searcher looks looks at at less less than than two two result result pages pages per per search search
Source: comScore qSearch, July 2008 * Searcher Conversion: Searchers / Visitors Proprietary and Confidential Do not distribute without written permission from comScore
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Strong Potential For Mobile Web Mobile Internet usage is poised to take off – with mobile subscribers outnumbering Internet users three to one, driven primarily by users in emerging markets Number Number of of Mobile Mobile Subscribers Subscribers vs. vs. Internet Internet Users Users –– 2006 2006 Mobile Subs per Internet User
3.1
1.3
Internet Users
2.7
2.0
Mobile Subscribers
Source: comScore Marketing Solutions Proprietary and Confidential Do not distribute without written permission from comScore
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Mobile Phone Web Users Nearly Equal PC Based Internet Users in Japan Time Spent on PC vs. Mobile
Age Skews in PC vs. Mobile
Monthly Hours per UV
% Reach of Mobile Activities 147
65 91
76 111
#
=Index of PC to Mobile
“Mobile “Mobile Web Web is is aa significant significant opportunity. opportunity. Advertisers Advertisers can can now now reach reach 53 53 million million consumers consumers online. online. The The mobile mobile audience audience is is especially especially important important to to marketers marketers trying trying to to reach reach younger younger audiences.” audiences.” -Maru -Maru Sato, Sato, Managing Managing Director Director of of comScore, comScore, Japan Japan Source: comScore Press Release, September 20, 2007 Proprietary and Confidential Do not distribute without written permission from comScore
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Mobile Search is Growing Rapidly in the US and Europe Mobile search is gaining both popularity and frequency Google is the preferred brand for browser-based searches with a 60% share of mobile searchers in all countries measured by comScore M:Metrics Mobile Mobile Search Search Users Users (000) (000) Three-month Three-month average average ending ending June June 2007 2007 and and June June 2008 2008
+68%
June 2007
+38%
June 2008
+30% +48%
+40%
+40%
+40%
“The “The number number of of US US users users accessing accessing mobile mobile search search has has more more than than doubled doubled as as aa result result of of expanded expanded 3G 3G penetration penetration and and Smartphone Smartphone adoption, adoption, as as well well as as the the proliferation proliferation of of flat-rate flat-rate data data plans. plans. We We have have also also seen seen aa substantial substantial improvement improvement to to the the mobile mobile search search offerings offerings in in the the US US market.” market.” -Alistair -Alistair Hill, Hill, comScore comScore Analyst Analyst
*Includes top five countries listed Source: comScore M:Metrics MobiLens Proprietary and Confidential Do not distribute without written permission from comScore
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Mapping the Internet
WORLDWIDE WORLDWIDE CONTEXT CONTEXT
US US INTERNET INTERNET INDUSTRY INDUSTRY TRENDS TRENDS
Content Content // Visitation Visitation
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Streaming Streaming Activity Activity
eCommerce eCommerce
Search Search
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US Internet Activity In July 2008: ■ 189.1 million Americans used the Internet – Average user was online 19 days in the month, for a total of 26.6 hours, and viewed 2,406 pages
■ 20% of total time spent online was spent at communications sites – Users spent an average of 4.8 hours with Email and 4.1 hours on IM alone
■ 92% of Internet visitors conducted at least one search – Average searcher conducted 88 searches
■ Total 2008 online spending through July at US sites was $124.0 billion, up 11% from the same period in 2007. Travel accounted for $52.2 billion, or 42%, of total online spending in this period
Source: comScore Media Metrix , July 2008; comScore qSearch , July 2008; e-Commerce Reports, July 2008
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Key Themes: Broadband Driving Growth Household Household Broadband Broadband Penetration Penetration Unique Visitors
July 2007
Minutes % Change
Pages % Change
July 2008 UVs (millions)
% Change
BB% Change
NB% Change
BB% Change
NB% Change
Home
162,343
7%
6%
-34%
1%
-40%
Work
65,495
14%
-9%
-74%
0%
-77%
Total US
189,134
5%
-1%
-37%
-1%
-43%
July 2008
% % Streaming Streaming
Searches Searches (MM) (MM)
eCommerce eCommerce ($BN) ($BN) +9%
+25%
Travel
Non-Travel
July 2007
July 2008
July 2007
July 2008
July 2007
July 2008
Source: comScore Marketing Solutions; comScore Video Metrix , July 2008; comScore qSearch, July 2008
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Impact on Advertising Dollars
“Online is getting to the point where it may be more important than the 30second TV spot.” -Joel Ewanick, VP Marketing Hyundai Motor America
“Even ad-spending giant P&G is considering cutting its overall ad budget by as much as 10% this year and aggressively moving ad dollars to the Web.” -Wall Street Journal, May 12, 2008
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The Internet is the 3rd Most-Used Medium and About to Become 2nd Only to TV
Internet* 17%
Newspapers 8% Magazines 7%
Radio 19% Watching TV 37%
Video or DVDs 12%
* Excludes work usage Source: Forrester Research, March 2007 Proprietary and Confidential Do not distribute without written permission from comScore
Ad Dollars are Flowing Online‌
Media
Advertising Dollars Spent in 2007*
Internet
$21 Billion
Outdoor
$7
Cable TV
$26
Magazines
$14
Direct Mail
$61
Miscellaneous
$39
Overall
$295
Trade Journals
$4
Yellow Pages
$14
Broadcast TV
$46
Radio
$19
Newspapers
$44
Source: Global Insights as published in BusinessWeek * Other sources may define categories differently, leading to different results Proprietary and Confidential Do not distribute without written permission from comScore
Percent Change from 2006
Yet, Online Only Accounts for 7% of Total Ad Spending! 2007 Estimate ($ in Millions)
% Total
Direct Mail
$
60,988
21%
Broadcast TV
$
45,749
15%
Newspaper
$
42,939
14%
Internet
$
21,100
7%
Cable TV Networks
$
20,479
7%
Radio
$
18,592
6%
Yellow Pages
$
14,538
5%
Consumer Magazine
$
13,695
5%
All Other
$
55,977
19%
Total
$ 296,100
100%
Source: Advertising Age by Robert J. Coen, McCann-Erickson Inc; Newspaper Association of America; Radio Advertising Bureau; Simba Information; Outdoor Advertising Association of America; Interactive Advertising Bureau (IAB); Lehman Brothers Proprietary and Confidential Do not distribute without written permission from comScore
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Top Websites Reach More Americans than Top Network TV Shows Daily
US US Visitation Visitation to to Top Top Online Online Properties Properties (MM) (MM) –– July July 2008 2008
Versus Versus 25 25 MM MM viewers viewers for for American American Idol* Idol*
*Forbes, March 2008 Source: comScore Media Metrix, July 2008 Proprietary and Confidential Do not distribute without written permission from comScore
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Major TV Revenues vs. Ratings
Online $
Note: Rating = estimated percentage of the universe of TV households (or other specified group) tuned to a program at once. Ratings expressed as a %.
The The disparity disparity between between TV TV ratings ratings and and ad ad revenues revenues is is providing providing an an opportunity opportunity to to move move ad ad dollars dollars to to more more efficient efficient media media Source: Television Bureau of Advertising, Trends in Advertising Volume, 2004-2006 Proprietary and Confidential Do not distribute without written permission from comScore
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US Advertising Spending by Medium 2005 US Advertising Spending ($B)
Number of US Households (MM)
US Ad Spend/HH($)
$106
99
$1,071
Direct Phone
97
99
980
Direct Mail
57
99
576
Newspapers
49
50
980
Broadcast TV
45
99
445
Radio
20
60
333
Cable TV
19
70
271
Yellow Pages
16
99
162
Total Internet
13
60
217
Outdoor
6
99
61
Total
428
834
5,106
Average
$43
83
$511
Medium Promotions
Advertisers Advertisers currently currently spend spend far far more more per per household household on on less less efficient efficient media media such such as as newspapers newspapers Source: Morgan Stanley Research
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The Internet is the Preferred Source of Information
% Preference By Medium Issue
Internet
Magazine
Newspaper
Radio
TV
Reference Information
72
4
3
1
2
Travel Information
67
4
3
1
4
Technology News
53
8
5
2
8
Health Information
52
13
2
1
6
Product Reviews
52
20
5
1
5
Weather
45
<1
4
3
45
Auto Information
44
9
11
1
5
Financial Information
37
6
8
1
4
Diet Information
36
18
2
<1
5
Beauty Care Prod. Info
31
22
4
<1
10
Entertainment news
29
12
11
2
37
Family Information
26
22
3
1
3
General News
25
1
17
2
52
Grocery Product Info
24
5
34
1
12
Sports Information
23
1
14
2
25
Source: comScore Survey among US primary grocery shoppers in October 2005, base size = 916
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Internet Advertising Trends 2006-2007 Internet Advertising Revenues by Ad Format
Internet Advertising Revenues ($B) +26%
Sponsorship
+35%
Rich Media Video Email Leads/ Referrals
+30%
Classifieds
+32%
+76% -12%
+22% -15%
+18%* Display Ads*
Search
Q1 Q1 2008 2008 revenues revenues totaled totaled $5.8B, $5.8B, representing representing an an 18% 18% increase increase over over Q1 Q1 2007 2007 and and making making itit the the second second highest highest quarter quarter ever ever recorded, recorded, after after Q4 Q4 2007’s 2007’s $5.9B. $5.9B. *Display ads include Ad Banners/Display Ads, Rich Media, Sponsorship, and Slotting Fees *Q1 ‘08 revenues are an18% increase over the same period in 2007. Source: IAB Internet Advertising Revenue Report, 2006 and 2007 Proprietary and Confidential Do not distribute without written permission from comScore
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Mapping the Internet
WORLDWIDE WORLDWIDE CONTEXT CONTEXT
US INTERNET INDUSTRY TRENDS
Content Content // Visitation Visitation
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Streaming Streaming Activity Activity
eCommerce eCommerce
Search Search
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35-54 Year Olds are in the Driver’s Seat Total Total US US Internet Internet by by Age Age Band Band –– July July 2008 2008
>55
35 – 54
18 – 34
12 – 17 2 – 11
Source: comScore Media Metrix, July 2008
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Not all visitors are created equal â&#x2013;
Heavy Users Account for 63% of Duration, 62% of Total Page Views, and 51% of Session Visits Engagement Engagement by by Usage Usage Segments Segments
Heavy Users
Medium Users
Light Users
comScore comScore Segment Segment Metrix: Metrix: Implications Implications for for Online Online Advertising: Advertising: Frequency Frequency Capping, Capping, Scheduling, Scheduling, Targeting Targeting * Visits refer to session visits, not day visits Source: comScore Media Metrix, July 2008 Proprietary and Confidential Do not distribute without written permission from comScore
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Top Sites Deliver Far Less Than Their Nominal Reach and Need Ad Networks to Expand Effective Reach At Least Half of Top Sites Audiences Are Hard to Reach by a Typical Campaign Reach of US Internet Audience
Bottom 50% of Viewers for Each Site
74.4%
72.4% 58.7%
Yahoo! Sites
Google Sites
AOL Media Network
56.5%
MSN-Windows Live
% of Page Views Viewed by Bottom 50% of Site Users
% of Total Page Views
Yahoo! Sites
Average PVs per Light User (bottom 50%)
10.3
Source: comScore Marketing Solutions, December 2007 Proprietary and Confidential Do not distribute without written permission from comScore
Google Sites
AOL Media Network
14.7
7.4
AOL Media Network MSN-Windows Live
7.3
US Visitor Growth Across All Locations Total Total Internet Internet UVs UVs (MM) (MM) +5% +7%
+14%
0%
Source: comScore Media Metrix
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Broadband Penetration is Growing Faster than Total US Internet Users
189.1 Million US Internet Users 85% Home Broadband Penetration
Source: comScore Media Metrix
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The Influence of Broadband in the US Total Total Broadband Broadband UVs UVs (MM) (MM) +16%
•• There There has has been been significant significant yearyearover-year Broadband growth over-year Broadband growth at at Home Home and and Work Work •• Broadband Broadband now now reaches reaches more more than than three three out out of of every every four four US US Internet-using homes Internet-using homes •• Total Total Internet Internet broadband broadband penetration has penetration has been been increasing increasing steadily steadily
+16%
+3%
Source: comScore Media Metrix
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Total US Consumption Growth by Speed Total Total Page Page Views Views by by Speed Speed (MM) (MM)
-4%
Total Total Minutes Minutes by by Speed Speed (MM) (MM)
-5%
NB -43% -37%
BB
-1%
-1%
Both Both Page Page Views Views and and Minutes Minutes are are decreasing decreasing rapidly rapidly for for Narrowband Narrowband users users while while remaining remaining stable stable for for Broadband Broadband users. users. Source: comScore Media Metrix
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Role of Broadband in Internet Growth
Increase Increase in in BB BB Bandwidth Bandwidth
Online Activities
Consumer Needs
Search Content/Visitation Communications Shopping/Commerce Members Digital Living Room Gaming Advertising
Family/Relationships Health/Fitness Finances Work Religion Education/Training Home/Real Estate Recreation/Leisure
Growth Growth in in Internet Internet Usage Usage
Broadband Broadband users, users, with with faster faster speeds speeds and and quicker quicker downloads, downloads, have have driven driven broad broad functionality functionality that that appeals appeals to to the the full full spectrum spectrum of of consumer consumer needs needs
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Top Activities by Connection Speed Category
Broadband Index to Total Internet
Services e-mail Instant Messengers Photos Discussion/Chat Portals Search/Navigation Entertainment Multimedia Entertainment - Music TV Entertainment - Movies Kids Retail Computer Hardware Comparison Shopping Books Department Stores Apparel Consumer Electronics Directories/Resources Directories Reference Maps News/Information General News Weather Politics Conversational Media Social Networking Business/Finance Personal Finance Banking Technology Education Games Online Gaming Source: comScore Media Metrix, July 2008
100 101 104 110 105 100 103 105 110 108 109 109 111 103 107 109 109 108 109 109 105 108 109 109 106 107 110 109 105 105 103 104 105 107 108 108 108
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Narrowband Index to Total Internet 98 92 76 46 70 99 85 71 47 54 49 49 40 83 61 52 50 58 49 49 74 58 51 48 66 61 46 48 71 70 82 79 73 59 56 56 53
While While Broadband Broadband and and Narrowband Narrowband users users display display similar similar skews skews across across the top categories … the top categories … … … Broadband Broadband users users over-index over-index in in almost every one of these almost every one of these categories categories
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Verizon FiOS Subscribers are More Engaged than Broadband Users in Every Category Top 10 Category Visitation - Index to Total US Index FiOS Index Games 137 Gambling 156 Gambling 136 Games 151 Auctions 123 Telecommunications 138 ISP 119 Auctions 133 Sports 118 Education 126 Telecommunications 118 Sports 124 Technology 117 Career Services and Development 122 Education 117 Health 121 Automotive 115 Hobbies/Lifestyle 120 Community 114 Technology 119 BB
Top 15 SubCategory Visitation - Index to Total US BB Index FiOS Online Gambling 159 Online Gambling Teens 158 Training and Education Gaming Information 157 Gaming Information Instant Messengers 146 Instant Messengers Humor 143 Teens Online Gaming 141 Kids Kids 141 Genealogy Training and Education 139 Toys Gay/Lesbian 139 Retail - Music Discussion/Chat 138 Humor Web Hosting 138 Computer Software Personals 136 Discussion/Chat Technology - News 134 Online Gaming Genealogy 134 Technology - News Blogs 134 Web Hosting
Index 191 189 183 183 177 172 169 163 160 157 157 155 154 153 153
*FiOS- Fiber Optic Service Source: comScore Marketing Solutions, Q1 2007
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Broadband vs. FiOS Demographic Composition: Household Income and Age Household Income Index FiOS FiOS users users over-index over-index in in the the higher higher income income groups, groups, but but significantly significantly underunderindex in the lower income brackets. index in the lower income brackets. Broadband Broadband users, users, on on the the other other hand, hand, do do not not fluctuate fluctuate too too much much across across the the income groups. income groups.
Head of Household Age Index
FiOS FiOS users users under-index under-index the the total total US US between the ages of 18 and 34, and between the ages of 18 and 34, and over-index over-index among among the the older older age age groups. Broadband users do groups. Broadband users do not not deviate deviate from from the the US US population population in in terms terms of of HoH HoH age. age.
*FiOS- Fiber Optic Service Source: comScore Marketing Solutions, July 2008
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Portals’ Share of Usage Stabilizes Year Over Year
Total US % Total US Internet Minutes Growth
-5%
Broadband -1%
Narrowband -37%
Portal share of total minutes
Portals’ Portals’ share share of of total total Internet Internet minutes minutes has has declined declined slightly slightly year year over over year year
Portal set includes Yahoo!, MSN, AOL, MySpace, Lycos, Netscape, MyWay, Terra Networks, Univision, etc… Source: comScore Media Metrix
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US Portal Usage by Demographic
% % of of Time Time spent spent on on Portals Portals
0% -5%
-2%
0%
-1%
-2%
The The percentage percentage of of time time spent spent on on portals portals has has either either decreased decreased or or remained remained stable stable among most age groups among most age groups Portal set includes Yahoo!, MSN, AOL, MySpace, Lycos, Netscape, MyWay, Terra Networks, Univision, etcâ&#x20AC;Ś Source: comScore Media Metrix Proprietary and Confidential Do not distribute without written permission from comScore
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How Internet Users Communicate Total Minutes Spent by Category (MM) % of Total Communication Minutes Blogs
2%
IM
30%
•• IM IM users users are are highly highly engaged engaged •• 39% 39% of of Internet Internet population population uses IMs uses IMs
% of total Internet minutes
69%
•• Users Users on on an an average average IM IM application spend 192 application spend 192 mins/month mins/month IM’ing IM’ing with with about 4 buddies about 4 buddies
20%
Communications Communications categories categories comprise comprise aa fifth fifth of of the the average average Internet Internet user’s user’s monthly monthly duration duration Source: comScore Media Metrix
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Up And Coming Websites To Watch Total Unique Visitors (000) +247% +307% Social networking for music fans
Personalized comparison-shopping engine
+82% +122%
The user-driven component of Answers.com
Business-oriented networking site
+172% +58%
meebo Social networking for comic book fans
Portal where users can access all IM applications from anywhere, at anytime
Source: comScore Media Metrix, July 2008
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Case Studies: Increasing Dependence on the Internet
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About A Quarter Of The Population Engages In Online Banking Online Banking Customers Top 10 Banks (000)
Q/Q change
4.9% 5.2% 12.7% 18.5% 8.7% 6.9% 6.2%
3.1% 0.6%
2.6%
4.2% 1.8%
Y/Y 2.6%
3.7% 4.4% -0.9% 0.9% 1.8% 0.9%
Note: Online Banking Customers: Defined as anyone that logged into any of the top 10 banks and had a Checking, Savings or Money Market relationship
•• 48.6 48.6 MM MM Online Online Liquid Liquid Deposit Deposit Account Account customers customers logged logged into into their their accounts accounts in in Q208 Q208 •• Quarter Quarter over over quarter quarter was was essentially essentially flat flat with with aa slight slight increase increase of of 0.9% 0.9% from from Q108 Q108 Source: comScore Marketing Solutions
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52
54% of Online Financial Applicants had No Intention of Completing Application Composition of Online Financial Applicants
“As “As more more consumers consumers research research and and purchase purchase financial products on the Web, the importance financial products on the Web, the importance of of understanding understanding application application abandonment abandonment will will increase…today’s increase…today’s financial financial services services sites sites have a ways to go at both understanding have a ways to go at both understanding and and solving solving this this important important issue.” issue.” -Brad -Brad Strothkamp, Strothkamp, Forrester Forrester Research Research Senior Senior Analyst Analyst
Top Top Reasons Reasons Cited Cited by by Applicants Applicants Not Not Intending Intending to to Complete Complete
Top Top Reasons Reasons Cited Cited by by Applicants Applicants Intending Intending to to Complete Complete but but who who Later Later Abandoned Abandoned
Source: comScore Press Release, September 10, 2007 Proprietary and Confidential Do not distribute without written permission from comScore
53
Jump in E-Servicing Visits Represents Potential Cost Savings for Insurers Auto Insurer e-Servicing Overview e-Servicing Visits as a Percentage of Total Visits
55% 37%
•• e-Servicing e-Servicing activity activity climbed climbed 15% in the second quarter 15% in the second quarter of of 2007, 2007, more more than than twice twice the the rate rate of of growth growth in in total total visits visits to to the the auto auto insurer insurer sites. sites.
26%
33%
22%
•• Direct Direct insurers, insurers, Geico.com Geico.com and and Progressive.com, Progressive.com, were were more effective than the agent more effective than the agent insurers insurers at at driving driving customers customers towards towards e-servicing e-servicing online. online.
“Given “Given the the competitive competitive nature nature of of the the auto auto insurance insurance industry, industry, it’s it’s imperative imperative to to find find ways ways to to both both reduce reduce costs costs and and satisfy satisfy customers. customers. E-servicing E-servicing can can be be aa key key ingredient ingredient in in accomplishing accomplishing both both of of these these objectives.” objectives.” -Kevin -Kevin Levitt, Levitt, vice vice president president of of comScore comScore Financial Financial Solutions Solutions Source: comScore Press Release, October 8, 2007
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54
Pet Food Recall Causes Stir Online US Unique Visitors (MM) +72% FDA.gov FDA.gov was was the the top top gaining gaining property property in in April, April, due due in in large large part part to to consumers seeking consumers seeking information information on on the the pet pet food food recall recall
+34% Nestle Nestle was was the the 8th 8th highest highest gaining gaining property, property, driven driven mostly mostly by by increased increased traffic traffic to to the the Purina.com Purina.com site site as as consumers searched for information consumers searched for information on on the the pet pet food food recall recall
+105%
“Events “Events like like the the pet pet food food recall, recall, which which affected affected millions millions across across the the nation, nation, demonstrate demonstrate how how powerful powerful aa medium medium the the Web Web has has become become for for disseminating disseminating important important information…” information…” -- Jack Jack Flanagan, Flanagan, executive executive vice vice president president of of comScore comScore Media Media Metrix Metrix Source: comScore Press Release, May 11, 2007
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55
Official Sports Sites See Spike in Traffic; NBA Sees Traffic From Around the World Worldwide Worldwide Visitation Visitation to to NBA.com NBA.com
US US Unique Unique Visitors Visitors (MM) (MM)
Latin America
Middle East / Africa
+57% Europe
+38%
North America
+22% Asia Pacific
Despite being an American league, more than half of the traffic to NBA.com comes from outside the US • China alone accounts for 23% of visitors
The The beginning beginning of of baseball baseball season, season, the the NFL NFL Draft, Draft, and and the NBA playoffs all created a surge of traffic in April the NBA playoffs all created a surge of traffic in April to to the the major major US US sports sports leagues’ leagues’ official official sites sites
• Several international stars like Yao Ming have helped turn the NBA into a global brand
Source: comScore Press Releases, May 11, 2007 and May 30, 2007 Proprietary and Confidential Do not distribute without written permission from comScore
56
MLSnet.com Experiences The Ups And Downs Of The “Beckham Effect” Worldwide Unique Visitors (000)
•• When When LA LA Galaxy Galaxy announced announced the the signing signing of of UK UK soccer soccer star star David David Beckham Beckham in in January, January, traffic traffic jumped jumped to to 808,000 808,000 unique unique visitors; visitors; aa 252% 252% month-on-month month-on-month increase. increase.
Makes debut for the LA Galaxy in a match against Chelsea
Beckham announces retirement from England captaincy
LA Galaxy signs Beckham on with a 5 year contract
Beckham sprains his knee and is sidelined for the next 11 games
•• Beckham Beckham has has doubled doubled the the number number of of visitors visitors to to mlsnet.com mlsnet.com versus versus last last year, year, which which was was aa World World Cup Cup year. year. •• When When Beckham Beckham debuted debuted for for the the American American club club in in July July 2007, 2007, MLSnet.com MLSnet.com saw saw aa record record 594,000 594,000 unique unique visitors visitors in in the the US. US. •• The The number number of of total total unique unique visitors visitors to to MLSnet.com MLSnet.com was was cut cut in in half half after after Beckham Beckham was was sidelined sidelined by by his his injuries injuries on on August August 29th. 29th.
“David “David Beckham’s Beckham’s impact impact on on the the MLS MLS league’s league’s official official website website has has been been enormous…If enormous…If anyone anyone can can raise raise the the profile profile of of soccer soccer in in the the States, States, David David Beckham Beckham is is undoubtedly undoubtedly the the man man to to do do it.” it.” -Bob -Bob Ivins, Ivins, EVP EVP of of International International Markets Markets at at comScore comScore Source: comScore Media Metrix, September 2007
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57
Start of Premiership Season Sets Off Stampede of Traffic to Fantasy Football Sites in the UK +135%
Total Worldwide Unique Visitors (000) +54% +90%
47.9% 47.9% of of the the total total time time spent spent on on these sites is from Monday these sites is from Monday through through Friday Friday occurring occurring between 9:00am between 9:00am and and 5:00pm. 5:00pm.
“Traditional “Traditional fantasy fantasy football football formats formats have have established established themselves themselves extremely extremely well well on on the the Internet Internet because because they they are are the the ultimate ultimate user user participation participation platform platform in in aa Web Web 2.0 2.0 world. world. The The immediacy immediacy of of team team statistics statistics and and injury injury reports reports encourages encourages fantasy fantasy managers managers to to really really engage engage with with site site content content and and pushes pushes traffic traffic to to related related pages pages on on the the host host website.” website.” -Andrew -Andrew Wainstein, Wainstein, Managing Managing Director Director of of Fantasyleague.com Fantasyleague.com Source: comScore Press Release, October 22, 2007
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58
Obama Generates More Searches, but McCain Captures the Streaming Crowd Average Monthly Searches (000) January 2008 – June 2008
Average Monthly UVs (000) and Videos (000) January 2008 – June 2008
•• The The number number of of searches searches including including the the term term “Obama” “Obama” was was approximately approximately 4x 4x that that of of “McCain” “McCain” •• This This likely likely reflects reflects the the public’s public’s interest interest in in Obama’s historic candidacy as well as the Obama’s historic candidacy as well as the desire desire to to find find out out more more about about this this relative relative newcomer on the national political newcomer on the national political stage. stage.
Source: comScore Press Release, September 4, 2008 Proprietary and Confidential Do not distribute without written permission from comScore
59
Launch of Tech Metrix â&#x20AC;˘ Track computer hardware configurations: system manufacturer, processor name/type, operating system, service pack, CPU, RAM, screen resolution, hard drive size â&#x20AC;˘ Measure software usage: installed programs and version number, interactive duration, default browser and browser settings, number and size of data files, and multimedia file types
+6% More More hard hard drive drive space space means means more more online online gaming, gaming, music music downloads, downloads, and and picture picture slideshows slideshows
-6%
Source: comScore Press Releases, August 1, 2007
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60
CBS Scores on the Web With March Madness “Our “Our clients clients were were willing willing to to pay pay us us [rates] [rates] for for online online that that were were equal equal to to or or higher higher than than the the TV. TV. It's It's less less about about where where the the consumption consumption takes takes place place than than what's what's being being consumed. consumed. This This was was live live exclusive exclusive coverage coverage of of the the NCAA NCAA tournament.” tournament.” -Rich -Rich Calacci, Calacci, senior senior vice vice president president of of advertising advertising sales sales for for CBSSports.com CBSSports.com
•• Online Online viewers viewers were were more more valuable valuable than than television television viewers viewers
•• CBS CBS made made $4.83 $4.83 in in
2008
advertising advertising for for each each of of its its 4.8M 4.8M online online viewers viewers vs. vs. only only $4.12 $4.12 for for each each of of its its 132M 132M television viewers television viewers
2006
•• The The price price for for an an online online ad ad is is as as much much as as 2x 2x more more expensive than expensive than aa television television ad ad per per viewer viewer
20032005
CBS began showing most of the games free online, but required viewers to register
No registration requirement; CBS made the game available from online rival ESPN.com and other Web sites
*CBSSports.com Source: washingtonpost.com, April 17, 2008 Proprietary and Confidential Do not distribute without written permission from comScore
61
Social Networking
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62
Web 2.0 Enables Marketers to Reach and Present Content to Consumers in New Waysâ&#x20AC;Ś
This next generation of Internet-based services that are content and/or technology driven enable people to collaborate and exchange information online in ways not previously available.
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63
Social Networking & UGC Explosion
craigslist
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64
How Companies are Using Web 2.0 Technologies….
■ More than half say they are pleased with their investment over the past 5 years – Only 13% say they are disappointed
■ They view Web 2.0 technologies as strategic and 75% say they plan to maintain or increase their investment ■ Companies that acted quickly are more satisfied than late movers
Source: McKinsey 2007 Survey of 2,487 executives Worldwide, of whom 44% hold C-level positions
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65
How Companies are Using Web 2.0 Technologiesâ&#x20AC;Ś (continued)
70% of businesses using Web 2.0 technologies say they use them to interact with customers
Hereâ&#x20AC;&#x2122;s how they use them: Customer-toBusinesses feedback
% saying investment will increase
New customers, new markets Pharma Financial Services Telecomm High Tech Retail
Customer services
Source: McKinsey 2007 Survey of 2,487 executives Worldwide, of whom 44% hold C-level positions
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66
Social Networking Levels of Engagement
% UV Reach July 2007 July 2008 MySpace YouTube Blogger Facebook Craigslist Photobucket Flickr.com Classmates.com Shutterfly Slide
Mins/UV
% Î&#x201D; Mins
39 25 16 17 13 13 7 8
40 39 24 21 18 12 10 9
230 116 6 164 87 25 7 11
20% 86% 33% 13% 43% -5% 20% 33%
3 3
2 2
18
-12%
4
-59%
Blogger Blogger and and YouTube YouTube in in particular particular have have attained attained the the highest highest % % Reach Reach gains gains within within aa year year
Source: comScore Media Metrix
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67
â&#x20AC;&#x153;Top Friendsâ&#x20AC;? Ranks as Most Engaged Facebook Application Top Top Facebook Facebook Applications Applications Engaged Engaged Widget Widget Viewers Viewers (000) (000)
Top Top Web Web Widget Widget Viewing Viewing Audiences* Audiences* Unique Visitors (000) Unique Visitors (000) 81%
32% 22%
#
22%
18%
15%
11% 9%
9%
9%
8%
= Penetration of US Internet Audience
88 out out of of every every 10 10 Internet Internet visitors visitors viewed viewed aa widget widget in in November November
Visitors Visitors between between the the ages ages of of 18-24 18-24 were were twice twice as as likely likely as the average Facebook visitor to engage with as the average Facebook visitor to engage with applications, applications, while while those those aged aged 25 25 and and older older were were less less likely than average to exhibit this behavior likely than average to exhibit this behavior
*Facebook.com excluded from list due to different measurement methodology Source: comScore Press Release, January 24, 2008; comScore Widget Metrix, November 2007 Proprietary and Confidential Do not distribute without written permission from comScore
68
Youth Flocking to Social Networking Sites Growth in Visitation to MySpace & Facebook MySpace MySpace UVs UVs (000) (000)
Facebook Facebook UVs UVs (000) (000)
+16% +19%
+15%
-15%
Facebook Facebook and and MySpace MySpace have have both both enjoyed enjoyed steady steady growth growth among among the the 18-24 18-24 age age group. group.
Source: comScore Media Metrix Proprietary and Confidential Do not distribute without written permission from comScore
69
MySpace Trying to Retain Its Base of Exclusive Users Cross Visitation of MySpace & Facebook 18-24 Unique Visitors (MM)
12-17 Unique Visitors (MM)
16.9 14.7
11.7 10.4
47% 56%
67%
48%
My Space Exclusively 18%
16% 28%
10%
Facebook Exclusively
19%
33% 23%
34%
Both Sites
%
=% of Total Facebook and MySpace Audience
#
= Total Unique Visitors (MM)
Source: comScore Media Metrix
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70
What to advertise on Social Networking sites to 18-34 year olds? % Saying they would be receptive to advertising on User Generated Content Sites Leisure
Necessities
Source: comScore Marketing Solutions
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71
Social Networking Goes Global
% Change +30%
Worldwide Unique Visitors (000) Bebo Bebo attracts attracts 58% 58% of of its its visitors visitors from from Europe, Europe, while Orkut is firmly entrenched in while Orkut is firmly entrenched in Latin Latin America America (55%) (55%) and and Asia-Pacific Asia-Pacific (37%) (37%)
+21% +61%
Friendster Friendster attracts attracts aa significant significant proportion proportion of of its its visitors visitors (89%) (89%) from from the the Asia-Pacific Asia-Pacific region region
+43% +76% +139%
MySpace MySpace (58%) (58%) and and Facebook Facebook (35%) attract large (35%) attract large portions portions of of their their respective respective audiences audiences from from North North America America
+14%
“Literally “Literally hundreds hundreds of of millions millions of of people people around around the the world world are are visiting visiting social social networking networking sites sites each each month month and and many are doing so on a daily basis. It would appear that social networking is not a fad but rather an activity many are doing so on a daily basis. It would appear that social networking is not a fad but rather an activity that that is being woven into the very fabric of the global Internet.” -Bob Ivins, EVP of International Markets at comScore is being woven into the very fabric of the global Internet.” -Bob Ivins, EVP of International Markets at comScore Source: comScore Media Metrix, July 2008 Proprietary and Confidential Do not distribute without written permission from comScore
72
US Levels of Engagement in Virtual Worlds UVs (000)
Average Daily UVs (000)
Mins/UV
Visits/UV
Webkinz
10,702
1,496
8
7
ClubPenguin
6,709
727
39
6
Stardoll
2,607
240
62
4
440
57
70
11
SecondLife
Source: comScore Media Metrix, July 2008
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73
Club Penguin Has a Strong International Presence
Club Penguin Worldwide UVs (000)
Club Penguin Worldwide UVs
+15%
Other Europe
Asia Pacific
North America
Over Over half half of of all all users users are are outside outside of the United States of the United States
Source: comScore Media Metrix, July 2008
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74
Internet Advertising
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75
TV Still King of Advertising Media Where are you most likely to pay attention to/notice advertising for any product/service?
*UGC sites include Social Networking sites, blogs, etcâ&#x20AC;Ś Source: comScore Marketing Solutions Ad Receptiveness Survey, Oct 31, 2006-Nov 10, 2006
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76
Consumers Feel They Can Trust Information on TV Where would you find trustworthy information for any product/service?
*UGC sites include Social Networking sites, blogs, etcâ&#x20AC;Ś Source: comScore Marketing Solutions Ad Receptiveness Survey, Oct 31, 2006-Nov 10, 2006
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77
Younger Demos Favor Ads on UGC Sites How do you feel seeing/hearing advertising for any product or service on UGC sites?â&#x20AC;Ś II am am Receptive Receptive
Advertising Advertising is is Trustworthy Trustworthy
Advertising Advertising is is Useful Useful
*UGC sites include Social Networking sites, blogs, etcâ&#x20AC;Ś Source: comScore Marketing Solutions Ad Receptiveness Survey, Oct 31, 2006-Nov 10, 2006
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78
Are Older Demos Just More “Web” Cynical? .... Nope How do you feel about seeing/hearing Internet advertising for any product or service?… II am am Receptive Receptive
Advertising Advertising is is Trustworthy Trustworthy
Advertising Advertising is is Useful Useful
Source: comScore Marketing Solutions Ad Receptiveness Survey, Oct 31, 2006-Nov 10, 2006
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79
Visitors of UGC Sites Skew Younger Than Non-Visitors
Average age of visitors to the following site groupings
Blogs Blogs
Social Social Networking Networking Sites Sites
User-Generated User-Generated Content Content
*UGC sites include Social Networking sites, blogs, etcâ&#x20AC;Ś *Social Networking sites include myspace.com, facebook.com, etcâ&#x20AC;Ś Source: comScore Marketing Solutions Ad Receptiveness Survey, Oct 31, 2006-Nov 10, 2006
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80
18-34 Year Olds Exhibit Particularly High Blog Usage
How often do you…
Write/publish Write/publish aa post post on on your your own own blog blog
Read Read blogs blogs
Post Post comments comments on on other other people’s people’s blogs blogs
% Responding “At least once a week” Source: comScore Marketing Solutions Ad Receptiveness Survey, Oct 31, 2006-Nov 10, 2006
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81
18-34 Year Olds Dominate Social Networks How often do you use social networking sites to…
Contact Contact people people you you don’t don’t know know
Contact Contact friends friends
Find/coordinate Find/coordinate social social events or make plans events or make plans
% Responding “At least once a week”
*Social Networking sites include myspace.com, facebook.com, etc… Source: comScore Marketing Solutions Ad Receptiveness Survey, Oct 31, 2006-Nov 10, 2006
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82
What to advertise on UGC sites to 18-34 year olds? Where would you be receptive to advertising for the following products/services? 18-34 year olds High Fun
Significant Expenditure
High Trust
Source: comScore Marketing Solutions Ad Receptiveness Survey, Oct 31, 2006-Nov 10, 2006 Proprietary and Confidential Do not distribute without written permission from comScore
83
The Consumer is in Control (Think UGC)…. “The power is with the consumer …. they are beginning in a very real sense to own our brands and participate in their creation …. we need to learn to begin to let go.” A.G. Lafley CEO Procter & Gamble
“Today, the customer is in charge … and whoever is best at putting the customer in charge makes all the money.” Stephen F. Quinn SVP Marketing Wal-Mart Proprietary and Confidential Do not distribute without written permission from comScore
84
The Long Tail Challenge Number Number of of Domains Domains (000)* (000)*
•• The The Long Long Tail Tail phenomenon phenomenon creates creates aa challenge challenge for for advertisers advertisers
•• The The number number of of internet internet domains domains climbs climbs each each year, year, furthering furthering the the reach reach of of the the long long tail tail
•• When When looking looking beyond beyond the the top top 10 10 properties, properties, the the market market is is extremely extremely fragmented fragmented
Number Number of of Properties Properties Visited Visited Each Each Month Month per per UV UV
•• The The average average visitor visitor spends spends 78% 78% of of their their time time online online each each month at only 10 different month at only 10 different sites, sites, with with 39% 39% of of their their total total time online being spent time online being spent at at only only one one site site
*As classified in the comScore Client Focus Dictionary ** As of May 2008 Source: comScore Marketing Solutions Proprietary and Confidential Do not distribute without written permission from comScore
85
The Offline Impact of Online Ads Web Web Ads Ads Boost Boost In-Store In-Store Sales, Sales, Too Too
•• People People tend tend to to respond—with respond—with their their wallets—more wallets—more to to search search ads ads than than to to display display ads ads
•• Search Search ads ads are are generally generally more more costly costly per impression than per impression than are are display ads display ads
•• Using Using both both types types of of ads ads in in one one campaign campaign increases increases sales sales more more than the two, added than the two, added together, together, do do in in separate separate campaigns campaigns
“Internet “Internet advertising advertising stimulates stimulates off-line off-line sales…online sales…online campaigns campaigns increase increase sales sales more more at at advertisers’ retail cash registers than on their websites. Data like that should embolden advertisers’ retail cash registers than on their websites. Data like that should embolden executives executives to to shift shift ever ever more more dollars dollars to to online online advertising.” advertising.” –– Magid Magid Abraham, Abraham, CEO CEO of of comScore comScore Source: Harvard Business Review, April 2008 Proprietary and Confidential Do not distribute without written permission from comScore
86
Mapping the Internet
WORLDWIDE WORLDWIDE CONTEXT CONTEXT
US US INTERNET INTERNET INDUSTRY INDUSTRY TRENDS TRENDS
Content Content // Visitation Visitation
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Streaming Streaming Activity Activity
eCommerce eCommerce
Search Search
87
Broadband Users are Valuable
In Q2 2008, Broadband Users: – Spent 53% more online – Were online for 5.4x as long – Consumed 6.7x as many pages – Visited the Internet 6.0x as often
Source: comScore Marketing Solutions, Q2 2008
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88
75% of Users Streamed in July 2008 Total US Internet Users (MM)
% Internet Users who Streamed
*Streaming includes flash data starting July 2006
In In July July 2008, 2008, 142.5 142.5 million million people people streamedstreamed- about about 75% 75% of of all all Internet Internet users users Source: comScore Video Metrix; Flash video format added in July 2006
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89
Streaming Video Already Pervasive
■ Online viewers watched an average of 3.9 hours of online video during July 2008 (235 minutes) ■ The average online video duration was 2.9 minutes ■ Three-quarters (75%) of US Internet users viewed video online ■ The average online video viewer consumed 80 videos in July, or almost three per day
Source: comScore Video Metrix, July 2008
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90
Online Video Viewing is Growing Strongly with Significant Growth Potential Value Drivers of Online Video Advertising
Reach of elusive audiences Better engagement Scarcity. Online Video are often sold out. However, monetization is still a big challenge: User experience Rights for UGC (User Generated Content)
Source: comScore Video Metrix, August 2008, U.S. Only Proprietary and Confidential Do not distribute without written permission from comScore
91
Streaming Engagement by Time of Day Daypart Share of US Home Video Consumption Weekday Weekday
Weekend Weekend
10am 10am –– 8pm 8pm video video engagement engagement represents represents an an opportunity opportunity to to leverage leverage Internet Internet video video with traditional TV “primetime” 8pm11pm buy with traditional TV “primetime” 8pm- 11pm buy Source: comScore Video Metrix, July 2008; Panel – comScore XPC Proprietary and Confidential Do not distribute without written permission from comScore
92
Males Are Slightly More Engaged Video Video Activity Activity â&#x20AC;&#x201C;â&#x20AC;&#x201C; By By Gender Gender
+35%
+17%
Source: comScore Video Metrix, August 2008 Proprietary and Confidential Do not distribute without written permission from comScore
93
While There are Similar Preferred Genres Between TV and Online By Streamers…
Preferred Preferred Genres Genres for for TV TV ■ ■ ■ ■ ■ ■
News Sports news/updates Entertainment News Game shows Sports Events Music Videos
Preferred Preferred Genres Genres for for Online Online ■ ■ ■ ■ ■ ■
Music Videos News Sports Updates Entertainment news Comedy Instruction/Advice
Source: comScore / Media Contacts Custom Survey, January 2008 Proprietary and Confidential Do not distribute without written permission from comScore
94
…Different Content is Being Viewed Online vs on TV ■ The type of content consumed online is not necessarily the same content that is most popular in viewing on TV Top Top TV TV Genres Genres Favorite “Live” TV Genre ■ Sports Events ■ Drama ■ News ■ Science Fiction ■ Situation Comedy ■ Talent/Reality
Top Top Internet Internet Streaming Streaming Categories Categories Internet Categories by Highest Reach ■ Entertainment - Multimedia ■ Portals ■ Conversational Media ■ TV ■ XXX Adult ■ News/Information
Confirms Confirms that that streamers streamers are are using using online online video video as as aa complement complement to to television television –– not not aa replacement replacement 95 Source: comScore / Media Contacts Custom Survey, January 2008 Proprietary and Confidential Do not distribute without written permission from comScore
Streamers are Less Likely to View Full Show Content for Sports and Entertainment News ■ The most popular content for full length shows is significantly different than the most popular for abbreviated versions or “highlights.” ■ Streamers are viewing content more suited to highlights such as general, sports, and entertainment news while watching full length programming for TV shows and movies.
Top Top Online Online Content Content for for Full Full Show Show ■ ■ ■ ■ ■ ■
Drama Feature Films Science Fiction Daytime Soaps Situation Comedy Game Shows
Top Top Online Online Content Content for for Highlights Highlights ■ ■ ■ ■ ■ ■
Sports news/updates Entertainment news Sports events News Instruction/Advice/Talk Animation/Cartoons
Source: comScore / Media Contacts Custom Survey, January 2008 Proprietary and Confidential Do not distribute without written permission from comScore
96
Streamers are Heavy Consumers of Both TV and the Internet Hours Hours per per Week Week Consuming Consuming Media Media
•
69% of streamers view TV for 7 or more hours per week
•
40% view TV for 13 or more hours per week
•
Slightly less spend 7 or more hours per week on the Internet (56%)
1a. Using the scale below, please tell us on average, approximately how many hours per week you spend doing each of the following?
Source: comScore / Media Contacts Custom Survey, January 2008 Proprietary and Confidential Do not distribute without written permission from comScore
97
All Streamers are Not Equal Heavy Streamer % % of of Population Population
20%
Avg. Avg. Monthly Monthly Time Time Streaming Streaming
841 mins
Avg. Avg. Number Number of of Videos Videos Viewed Viewed
247 Videos
87%
72%
Medium Streamer
Light Streamer
30%
77 mins
50%
6 mins
12%
50 Videos 22%
2%
8 Videos 6%
Source: comScore / Media Contacts Custom Survey, January 2008 Proprietary and Confidential Do not distribute without written permission from comScore
98
Light Streaming Does Not Necessarily Mean Light Overall Media Consumption TV
Internet
Media Media Consumption Consumption by by Duration Duration
30% 39% 46%
â&#x2013; Heavy TV users are not the same as Heavy Streamers; Light Streamers are heavier TV consumers â&#x2013; All segments can be reached online; Light Streamers spend similar amounts of time online as the other segments
1. Using the scale below, please tell us on average, approximately how many hours per week you spend doing each of the following? Source: comScore / Media Contacts Custom Survey, January 2008 Proprietary and Confidential Do not distribute without written permission from comScore
99
Streaming is Represented Across All Demographic Segments Total Internet
Video Streaming
Index to Total Internet
All Females All Males
50% 50%
50% 50%
99 101
Female: 18+
41%
40%
99
Female: 18-34
14%
14%
99
Female: 25-49
22%
23%
101
Female: 25-54
26%
27%
101
Female: 55+ Male: 18+
8% 39%
7% 40%
92 101
Male: 18-34
13%
14%
107
Male: 25-49 Male: 25-54
21% 25%
22% 25%
102 101
Male: 55+ Persons: 18+
8% 80%
8% 80%
93 100
Persons: 18-34
28%
28%
103
Persons: 25-49
43%
44%
102
Persons: 25-54
51%
52%
101
Persons: 55+
16%
15%
93
Source: comScore Video Metrix, July 2008
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100
Streaming Engagement By Content Category Streamers (000)
Streamer Reach
Streams (000)
Streams/ Streamer
Minutes/ Streamer
Entertainment
112
79%
4,186
37
99
Multimedia
97
68%
3,158
33
92
TV
39
27%
414
11
28
Entertainment - Music
25
17%
190
8
20
Kids
28
20%
436
16
18
Entertainment - Movies
19
14%
61
3
4
Radio
15
11%
121
8
19
Humor
11
7%
53
5
9
Entertainment - News
5
4%
14
3
3
Portals
96
67%
1,059
11
16
Conversational Media
58
41%
468
8
11
57
40%
462
8
11
Retail
30
21%
124
4
22
News/Information
44
31%
256
6
11
General News
33
23%
183
6
10
Weather
8
5%
22
3
3
Sports
21
14%
139
7
12
Community
35
25%
416
12
17
24
17%
350
14
16
Social Networking
Family
Multimedia, Multimedia, which which includes includes sites sites like like YouTube and MTV, YouTube and MTV, appears appears to to be be the the most most popular popular among among streamers: streamers: •Over •Over 33 billion billion streams streams are served in the are served in the Multimedia Multimedia category category by almost 100 by almost 100 million million streamers streamers •Users •Users are are viewing viewing these streams these streams for for almost almost 100 100 minutes minutes each! each!
Source: comScore Video Metrix, July 2008 Proprietary and Confidential Do not distribute without written permission from comScore
101
Top Video Streaming Portal Properties
Streamers (MM)
Streamer Reach
Streams (MM)
Share of Streams
Streams/ Streamer
Minutes/ Streamer
Minutes/ Stream
Minutes (MM)
Total Internet
142,507
100%
11,425,890
100%
80.2
235.0
2.9
33,482
Yahoo! Sites
37,610
26%
269,452
2%
7.2
13.3
1.9
501
AOL LLC
22,959
16%
95,106
1%
4.1
4.3
1.0
99
Microsoft Sites
32,640
23%
282,748
2%
8.7
14.4
1.7
471
TOP CONTENT SITES: Yahoo! Sites
AOL LLC
Microsoft Sites
•
Yahoo! Music
•
AOL News
•
MSN Video
•
Yahoo! News
•
AOL Music
•
MSNBC
•
Yahoo! Movies
•
Moviefone
•
MSN Movies
•
Yahoo! Sports
•
AOL Television
•
MSN Games
Microsoft Microsoft serves serves the the highest highest number number of of streams, streams, in in addition addition to to having having the the highest highest duration duration per per user user Source: comScore Video Metrix, July 2008
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102
Podcast Downloading Represented Across All Demographics Demographics of iTunes Podcast Audience
Female
Male
Total Podcast Audience Index
Index = 74
Index = 125
Males Males make make up up 63% 63% of of the the total total podcast podcast audience audience despite despite making making up up only only half half of of the the total total Internet Internet audience. audience.
18-24
203
25-34
68
35-44
113
45-54
103
55-64
41
65+
29
35-54 35-54 year year olds olds make make up up about about half half of of the the podcast podcast audience audience despite conventional thinking that this market despite conventional thinking that this market is is dominated dominated by by younger younger consumers consumers
Source: comScore Press Release, May 16, 2007
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103
Podcast Downloading Skews to High Income and More Educated Consumers Potential for this new medium to attract significant advertising dollars Total Podcast Audience
Total Podcast Audience Index
< $25,000
7%
78
$25,000 - $50,000
16%
77
$50,000 - $75,000
27%
95
$75,000 - $100,000
19%
109
> $100,000
31%
128
High School
25%
89
Some College / Assoc Degree
28%
82
College / Graduate Degree
47%
125
HOUSEHOLD INCOME
EDUCATION LEVEL
Many Many top top podcasts podcasts are are in in the the business business and and educational educational genres, genres, which which explains explains some of the appeal to the higher income and more educated segments some of the appeal to the higher income and more educated segments Source: comScore Press Release, May 16, 2007
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104
Online Radio Listening Habits
July 2008
Average Weekly AQH Person
Yahoo! Sites CBS Radio Clear Channel Live 365
113,200 224,400 92,000 40,300
Average Weekly CUME Person 1,207,200 2,108,100 1,272,900 416,000
Average Weekly Time Spent Listening 11 hours, 49 minutes 13 hours, 25 minutes 9 hours, 7 minutes 12 hours, 12 minutes
CBS CBS Radio Radio had had the the most most listeners listeners (over (over 2.1 2.1 million), million), and and these these users users listened listened for for over over 13 13 hours hours aa week week on on average average
Persons 12+, Monday-Sunday, 6amâ&#x20AC;&#x201C;Midnight AQH: The estimated number of people listening to an online radio station/network for a minimum of five minutes during an average fifteen minute period of time during the reported daypart. CUME: The estimated number of unique people listening to an online radio station/network for a minimum of five minutes during the reported daypart. Source: comScore Arbitron Online Radio Ratings, July
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105
Radio and Online Spending About About 10 10 million million people people aa month month listen listen to to online online radio; radio; this this audience audience is is valuable valuable
% % Who Who Shop Shop Online Online (eCommerce (eCommerce Including Including Travel) Travel)
•• People People who who listen listen to to Internet Internet Radio Radio tend tend to to also also spend spend more more money money online online •• Radio Radio listeners listeners are are 60% 60% more more likely likely to to be be online online buyers. buyers. •• Radio Radio listeners listeners spend spend an an average average of of $216 $216 on on other other eCommerce eCommerce products products online online every month! every month! Source: comScore Marketing Solutions
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106
Mapping the Internet
WORLDWIDE WORLDWIDE CONTEXT CONTEXT
US US INTERNET INTERNET INDUSTRY INDUSTRY TRENDS TRENDS
Content Content // Visitation Visitation
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Streaming Streaming Activity Activity
eCommerce eCommerce
Search Search
107
eCommerce Continues Its Upward Trend
■ Total 2008 online spending through July at US sites was $124.0 billion, up 11% from the same period in 2007 – Travel spending through July 2008 totaled $52.2 billion, up 11% from the same period in 2007 – Online non-travel (retail) spending through July 2008 totaled $71.8 billion, an increase of 11% from the same period in 2007
■ Buyers increased 7% from July 2007 to July 2008 ■ Dollars / Buyer increased 1% from July 2007 to July 2008
Source: comScore Marketing Solutions, July 2008
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108
E-commerce Sales Through Q2 2008 Posted a 12% Gain Versus the Same Period Last Year Online Consumer Dollar Sales Growth Excluding Auctions, Autos and Managed Travel ($Billions)
+17% +20% $171 Total
+22%
13%
$117 Total
+12% 20%
$93 Total $72 Total
12%
$143 Total
+26% +29%
26%
11%
33% 21%
Travel NonTravel
$200 Total
24% 26%
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26%
24%
12%
109
US Retail E-Commerce Grows 9% versus Last Year E-Commerce Growth in Total Dollars Spent Year Over Year July 2007 vs. July 2008
Highest-Growth Retail Categories in Total Dollars Spent Year Over Year July 2007 vs. July 2008
Top Product Categories, by Dollars Non-Travel (Retail) Spending July 2007
July 2008
Computers & Peripherals
Computers & Peripherals
Apparel & Accessories
Apparel & Accessories
Office Supplies
Event Tickets
Consumer Packaged Goods
Consumer Packaged Goods
Consumer Electronics
Office Supplies
Event Tickets
Furniture & Appliances
Furniture & Appliances
Consumer Electronics
Books & Magazines
Books & Magazines
Home & Garden
Home & Garden
Music, Movies & Videos
Computer Software
Source: comScore Marketing Solutions, eCommerce WW data on US sites Proprietary and Confidential Do not distribute without written permission from comScore
110
High Ticket Items: Sky’s the Limit
Transactions in the comScore Database… HOME FURNITURE Panelist Domain ABCDEF walmart.com BCDEFA yahoo.com CDEFAB samsclub.com DEFABC officemax.com EFABCD sharperimage.com FABCDE overstock.com
Product Category Home Furniture Home Furniture Home Furniture Home Furniture Home Furniture Home Furniture
Price $1,600 $900 $700 $700 $700 $600
Product Name Virginia Highlands Country Oak 7-piece Bedroom Set, King Corbeau Racing Seat- CR1 (pair of seats) Serta Wisteria Plush Mattress Set- Queen Quartet Dry-Erase Magnetic Conference Room Cabinet Ijoy Turbo 2 Robotic Massage Chair Spring Air Pillowtop Mattress Set (Queen)
JEWELRY & WATCHES Panelist Domain GHIJKL bluenile.com HIJKLG bluenile.com IJKLGH shopnbc.com JKLGHI overstock.com KLGHIJ yahoo.com LGHIJK amazon.com
Product Category Jewelry & Watches Jewelry & Watches Jewelry & Watches Jewelry & Watches Jewelry & Watches Jewelry & Watches
Price $6,850 $3,950 $4,800 $1,600 $1,000 $250
Product Name Platinum Setting With Princess-Cut Diamond Accents (over 1/4 ct. tw.) Platinum Three-Stone Oval Fancy-Yellow Diamond Ring (1 ct. tw.) 14K WG OR YG Diamond Flex Threerow Ring 14-KT. Gold and Diamond Tennis Bracelet (5.0 TDW) Tag Heuer New Link Ladies Watch W J1310.BA0571 14K Satin/Polished White Gold .20CT Diamond Engagement Ring Size: 8
MISC Panelist MNOPQR NOPQRM OPQRMN PQRMNO QRMNOP RMNOPQ
Product Category Audio & Video Equipment Desktop Computers Audio & Video Equipment Audio & Video Equipment Travel Packages Sport & Fitness
Price $4,000 $3,800 $3,500 $2,000 $1,450 $1,200
Product Name Sampo- 50" Widescreen HD-Ready Plasma TV W/ DVI & PC Inputs Dimension XPS Pentium 4 Processor With HT Technology 3.4 GHZ Samsung Television Gateway 30" HDTV Ready Color LCD TV With Stand and Remote Travel Package Bowflex Xtreme XTLU W/I Trainer Software & Ball
Domain bestbuy.com dell.com sears.com hsn.com expedia.com theshoppingchannel.com
Source: comScore Marketing Solutions
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111
Top Online Product Categories By Average Order Value
Average Order Value ($/Transaction) July 2008
*Excludes Auctions and Large Corporate Purchases Source: comScore Marketing Solutions, eCommerce WW data on US sites
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112
Whistle (and Buy Online) While We Work % of US Online Consumer Spending by Hour of Day Aligned to Local Time WORK
HOME
SCHOOL
14%
12%
10%
8%
6%
4%
2%
A M 10 -1 1 A M 11 -1 2 A M 12 -1 PM 12 PM 23 PM 34 PM 45 PM 56 PM 67 PM 78 PM 89 PM 910 PM 10 -1 1 PM 11 -1 2 PM
AM
AM
AM
AM
AM
AM
AM
AM
910
89
78
67
56
45
34
23
A -1 12
12
M
0%
Consumers Consumers using using the the Internet Internet at at work work accounted accounted for for 34% 34% of of all all online online non-travel non-travel spending, spending, aa sharp sharp drop drop from from aa level level of of 58% 58% in in November November 2005 2005 driven driven by by the the substantial substantial increase increase in in the the number number of of home home high speed Internet connections (+18% over the past year). high speed Internet connections (+18% over the past year). Source: comScore Marketing Solutions, September 2007
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113
Q3 eCommerce Spending By Location Dollar Sales ($BN) spent by location Q3 2007 vs. Q3 2008
+6%
+12%
As As broadband broadband connectivity connectivity rises rises at at home home and and at at work, work, online online spending spending continues to grow. continues to grow. *Excludes Auctions and Large Corporate Purchases Source: comScore Marketing Solutions, eCommerce US data Proprietary and Confidential Do not distribute without written permission from comScore
114
2007 Online Holiday Shopping Season Surpasses $29 Billion In Sales, Up 19% Versus Year Ago 2007 2007 vs. vs. 2006 2006 Full Full Holiday Holiday Season Season Retail Dollars Spent (Millions) Retail Dollars Spent (Millions) +21%
Top Top 10 10 Online Online Spending Spending Days Days of of 2007 2007 Holiday Holiday Season Season Retail Dollars Spent (Millions) Retail Dollars Spent (Millions)
+33%
+22% +29%
This This year, year, there there were were 32 32 days days between between Thanksgiving Thanksgiving and and Christmas, Christmas, compared compared to to 31 31 days last year. During this period in 2007, online sales grew by 21% versus year ago, days last year. During this period in 2007, online sales grew by 21% versus year ago, aa full full 22 percentage percentage points points higher higher than than the the overall overall holiday holiday season-to-date season-to-date growth growth rate. rate.
Source: comScore Press Release, December 30, 2007 Proprietary and Confidential Do not distribute without written permission from comScore
Multi-Channel Retailers Gain Share and Post Higher Order Values
Retailer Dollar Share by Channel Type
Average Order Value +2.1% vs. 2007
Average Order Value +6.6% vs. 2007
Source: comScore Marketing Solutions, eCommerce US data Proprietary and Confidential Do not distribute without written permission from comScore
Top Pure-Play and Multi-Channel Retail Sites US Visitor Change (MM) July 2007- July 2008 -18%
+14%
Multi-Channel Pure-Play
0% -7% +7%
+20% -10% -12%
+7% -14%
+34%
+14%
+20% +4%
+4% +5% +6%
-39%
-9%
Source: comScore Media Metrix
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117
Growth in Auto Insurance Purchases Online
Growth Growth in in Online Online Auto Auto Insurance Insurance Activities Activities 2006 2006 vs. vs. 2005 2005
• 2006 represented a tipping point in the adoption of the Internet for purchasing auto insurance policies • 70mm insurance quotes were submitted between 2004 and 2006 • In 2006, the number of policies purchased online increased 58% vs 2005, while insurance quotes only increased 15%
Quotes Submitted
Policies Purchased
• 65% of consumers claim that they would consider purchasing their next auto insurance policy online, per a recent comScore survey
Source: comScore Marketing Solutions, Press Release April 12, 2007 Survey: March 1-8, 2007; 2,043 US online consumers
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118
“The Role of Search in Consumer Buying” 2006 comScore Study with Google The Three Components of How Search Drives Buying
Direct Online Effects
16%
Latent Online Effects
21%
Latent Offline Effects
63%
Source: Google/comScore “The Role of Search in Consumer Buying” Press Release, March 21, 2006; based on holiday-related purchases completed online and offline across 11 product categories for 60 days post-search Proprietary and Confidential Do not distribute without written permission from comScore
119
Search Converts, Often with a Halo Effect The Influence of Search: Consumer Electronics Study Design:
Non-Buyers
Offline
•
Tracked online buying behavior of Internet users that comScore observed conducting a Computers/Consumer Electronics search for 90 days post-search
•
Surveyed searchers to measure offline impact
Subsequent
Key findings:
Buyers
Online
High buyer conversion from search (25%)
•
Among the online converters, 85% purchased in a subsequent user session (“latency effect”)
•
Vast majority (92%) of search-topurchase conversion occurred offline
Same
Source: Overture/comScore “Impact of Search Engine Usage on Consumer Buying” Press Release, December 2004; based on Consumer Electronics/Computer searchers
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•
120
Generic Search Terms Dominate & Convert
Search Term Preferences Specific Branded
Generic
Source: Overture/comScore â&#x20AC;&#x153;Impact of Search Engine Usage on Consumer Buyingâ&#x20AC;? Press Release, December 2004; based on Consumer Electronics/Computer searchers
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121
Importance of Search in Influencing Offline Buying Average, Average, All All Categories Categories
Study Design:
Non-Buyers
Offline
Subsequent
Buyers
Online
Same
•
Tracked online buying behavior of Internet users that comScore observed conducting a search for 60 days post-search
•
Surveyed searchers to measure offline impact
Music Music // Movies Movies // Videos Videos Non-Buyers
Offline
Subsequent
Key findings: Buyers
Online
Same
•
High buyer conversion from search (25%) for all categories
•
Of these buyers, 37% completed their purchase online
•
Among the online converters, majority (56%) purchased in a subsequent user session (“latency effect”)
Video Video Games Games & & Consoles Consoles Non-Buyers
Offline
Buyers
Online
Subsequent
Same
Source: Google/comScore “The Role of Search in Consumer Buying” Press Release, March 21, 2006; based on holiday-related purchases completed online and offline across 11 product categories Proprietary and Confidential Do not distribute without written permission from comScore
122
Online Advertising Can Fuel In-Store Sales
Research Online vs. Purchases Online
Retailers should focus on targeting those consumers who look for information online before purchasing
Offline
In-store Online
Online
•• When When consumers consumers were were exposed exposed to to online online advertising, advertising, they they were were more more engaged, engaged, viewing viewing an an average average of of 66 more more pages pages during their online session during their online session •• Consumers Consumers exposed exposed to to advertising advertising online online were were more more likely likely to to research research online online before before purchase, purchase, and and ultimately ultimately spent spent 41% 41% more more in-store than consumers who were not in-store than consumers who were not exposed exposed
Only Only 7% 7% of of all all retail retail sales sales take take place place online, online, despite despite the the fact that 89% of consumers research purchases online fact that 89% of consumers research purchases online
Source: comScore Press Releases, July 30, 2007 Proprietary and Confidential Do not distribute without written permission from comScore
123
Online Consumer-Generated Reviews Have Significant Impact on Offline Purchase Behavior Percent Percent of of Review Review Users Users Identifying Identifying Review Review as as Having Having aa Significant Significant Influence Influence on on their their Purchase* Purchase*
24% 24% of of Internet Internet users users reported reported using using online online reviews reviews prior prior to paying for a service delivered offline to paying for a service delivered offline
Review Review users users also also noted noted that that reviews reviews generated generated by by fellow fellow consumers consumers had had aa greater greater influence influence than than those those generated generated by by professionals professionals
Amount Amount Consumers Consumers are are Willing Willing to to Spend Spend for for 5-Star 5-Star Service Service
97% 97% of of those those surveyed surveyed who who said said they they made made aa purchase purchase based based on on an an online online review review said said they they found found the the review review to to have have been been accurate accurate
Consumers Consumers were were willing willing to to pay pay at at least least 20% 20% more more for for services services receiving receiving an an “Excellent” “Excellent” (5-star), (5-star), rating rating than than for for the the same same service service receiving receiving aa “Good” “Good” (4-star), (4-star), rating rating
* Based on responses indicating at least 4 on a 5 point scale Source: comScore Press Release, November 29, 2007 Proprietary and Confidential Do not distribute without written permission from comScore
124
Mapping the Internet
WORLDWIDE WORLDWIDE CONTEXT CONTEXT
US US INTERNET INTERNET INDUSTRY INDUSTRY TRENDS TRENDS
Content Content // Visitation Visitation
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Streaming Streaming Activity Activity
eCommerce eCommerce
Search Search
125
Key Highlights & Trends July 2008 - US Market
■ qSearch 2.0: Top Worldwide Search Properties – –
Total searches at 17.2 billion in July 2008, up 25% versus one year ago Search growth driven both by intensity growth, up 19% year-over-year and unique searcher growth, at 194MM and up 5% in the same time frame
■ Search Engines – –
Google, Yahoo!, and Ask see solid search growth within the search engine space versus one year ago Google tops both searchers and search intensity, showing 14% and 32% respective year-over-year growth
■ Non-Search Engines – –
Fox Interactive Media leads with 547MM searches and 52MM searchers in July 2008 craigslist, inc. has highest search intensity with 16.6 searches per searcher and shows strong growth in both searches and searchers
■ Click Performance – –
Organic Clicks lead click growth, up 26% versus one year ago and topping 9.4 billion Despite purposely decreasing coverage, Google has the most paid clicks with 609MM in July 2008; Yahoo has highest coverage, with 69% of searches with a paid ad; Ask has the highest portion (24%) of total clicks coming from paid clicks
■ Search Types – –
Of toolbar, partner, and auto and search-box search types, toolbar leads with 1.9 billion searches – up 27% versus one year ago Auto and search-box search shows strongest search growth, driven by increasing penetration and intensity
Source: comScore qSearch 2.0
Total US Internet Searchers
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qSearch 2.0: Top Worldwide Search Properties Total US Searches
â&#x2013; Total searches are up 25% versus one year ago, with growth from search engines outpacing non-search engines
Searches Searches (Billions) (Billions)
Total Searches Non-Search Engines
Change vs. Jul-07 +25%
Search Engines
+19%
+26%
Source: comScore qSearch 2.0
Total US Internet Searchers
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20% of Online Search Population Makes Up 65% of Searches, 65% of Result Pages, and 53% of Visits
Unique Searchers, Searches, Search Result Pages and Visits
Heavy Searchers
Medium Searchers
Light Searchers
Source: comScore qSearch 2.0, July 2008 Proprietary and Confidential Do not distribute without written permission from comScore
128
qSearch Click
Total Clicks Growth â&#x2013; Organic clicks lead click growth, up 26% versus one year ago
Clicks Clicks (Billions) (Billions) Change vs. Jul-07
Total Clicks Paid Clicks Organic Clicks
+25% +11%
+26%
Source: comScore qSearch 2.0
Total US Internet Searchers
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Googleâ&#x20AC;&#x2122;s Market Capitalization is Driven by 9% of Its Total Click Activity
Click Thru Composition â&#x20AC;&#x201C; July 2008
9%
12% 11% 18%
Source: comScore Marketing Solutions, July 2008
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130
Growth by Search Type Searches Searches (MM) (MM) by by Search Search Type Type
â&#x2013; Auto and search-box searches growth is strong at 81% versus July 2007, but remain a small portion of total activity â&#x2013; Other search types also show strong year-over-year search growth
Change vs. Jul-07 +25%
17,158 +81% Total Internet Searches
13,692
+27%
Auto and SearchBox Searches Toolbar Searches All Other Searches
+22%
Source: comScore qSearch 2.0
Total US Internet Searchers
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e-Commerce Sites Are The Most Frequent Users of Search Engine Marketing
Total Internet
The top 10 paid search advertisers are all retail or comparison shopping sites
Sponsored Link Exposures (000)
Share of Sponsored Link Exposures
19,762,951
100%
1
eBay.com
801,744
4.1%
2
Smarter.com
365,766
1.9%
3
Shopping.com
357,012
1.8%
4
Bizrate.com
297,649
1.5%
5
Amazon.com
284,328
1.4%
6
Dealtime.com
283,574
1.4%
7
Shopzilla.com
245,398
1.2%
8
Target.com
202,482
1.0%
9
Nextag.com
163,220
0.8%
10
Shop.com
123,009
0.6%
3,119,182
16%
Top 10 Sites
Top Top retail retail sites sites are are willing willing to to pay pay top top dollar dollar for for premium premium placement placement at at major major search search engines, engines, especially especially given given that that retail retail e-commerce e-commerce is is aa $100 $100 billion billion per per year year industry industry 53.8% 53.8% of of all all Google Google Web Web Search Search click-thrus click-thrus went went to to retail retail sites, sites, while while only only 27.2% 27.2% of of Yahoo! Yahoo! Web Web Search, Search, 10.4% 10.4% of of MSN MSN Web Web Search, Search, 5.8% 5.8% of of AOL AOL Search, Search, and and 1.6% 1.6% of of Ask.com Ask.com click-thrus click-thrus went went to to retail retail sites sites Source: comScore Press Release, June 5, 2007 Proprietary and Confidential Do not distribute without written permission from comScore
132
Comparative Influence of Search
Q: When you shop via the Internet, where do you typically start the process?
Source: comScore â&#x20AC;&#x153;Evolution of the Multi-Channel Consumerâ&#x20AC;?, February 2005
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133
Search Intensity and Conversion
Total Category Searches (MM)
Online Conversion
Searches Per Searcher
Searches Per Buyer
All Categories
552.5
10.4%
6.7
65.1
Home & Garden
121.0
4.4%
3.1
70.2
Consumer Electronics
74.3
2.8%
2.5
88.0
Music, Movies, Video
66.6
4.7%
2.8
59.0
Toys & Hobbies
59.5
5.2%
2.4
46.2
Apparel & Accessories
40.8
15.0%
2.3
15.4
About About one one out out of of ten ten product product category category searches searches result result in in an an online online sale sale
Source: comScore Marketing Solutions, â&#x20AC;&#x153;The Role of Search in Consumer Buyingâ&#x20AC;?, March 2006
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134
Buyer Conversion Summary
Buyer Conversion
% of Buyers Converting Offline
% of Buyers Converting Online
Average, All Categories
25%
63%
37%
Apparel & Accessories
43%
65%
35%
Toys & Hobbies
42%
88%
12%
Music/Movies/Videos
28%
83%
17%
Consumer Electronics
18%
84%
16%
Video Games & Consoles
17%
93%
7%
Jewelry & Watches
15%
75%
25%
One-quarter One-quarter of of all all product-related product-related searches searches result result in in the the purchase purchase of of that that product, product, 63% 63% of of these these are are converted converted offline offline versus versus 37% 37% online online
Source: comScore Marketing Solutions, â&#x20AC;&#x153;The Role of Search in Consumer Buyingâ&#x20AC;?, March 2006
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135
Search Marketing Vital for Brand Building and Driving Offline Sales for Consumer Packaged Goods Companies CPG Sites’ Unique Visitors: Searchers vs. Non-Searchers 113
#
270
67
CPG Product Category Spending: Searchers vs. Non-Searchers
335
=Index of Searchers to Non-Searchers
“Search “Search may may be be one one of of the the most most effective effective means means of of reaching reaching qualified qualified consumers consumers when when and and where where they they are are most most receptive receptive to to learning learning about about our our brands. brands. Ultimately Ultimately this this drives drives offline offline sales.” sales.” -Randy -Randy Peterson, Peterson, Search Search Innovation Innovation Manager Manager from from Procter Procter & & Gamble Gamble
Motivation for Visiting the CPG Site Searchers Non-Searchers Information & Help 73% 58% Find more information about products 48% 36% Learn about new products Compare competitive products Consumer and professional reviews Purchase Decision Help me make a purchase decision Get/compare products Find where to buy/local places Promotion Find out about special offers See official company website
44% 26% 21% 64% 40% 36% 31% 47% 40% 29%
38% 10% 10% 44% 28% 23% 15% 59% 47% 22%
Source: comScore Press Release, October 23, 2007
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136
Search + Display Ad Effectiveness Results: comScore Norms for Offline Sales Lift Search ads generate a greater lift in offline sales, but have a far lower reach and cost substantially more than Display ads Offline $$ Per (000) Exposed
Incremental Impact On Offline $â&#x20AC;&#x2122;s
Test Control +119%
+82%
% of All Exposed Users
11 %
8%
80 %
Search & Display
Search Only
Display Only
+16%
Search & Display
Search Only
Display Only
Source: comScore Marketing Solutions Proprietary and Confidential Do not distribute without written permission from comScore
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Today’s Challenge: Effective Marketing in a “Media Multi-Tasking” World
70% of web users say they watch TV occasionally to regularly while they surf – BIGresearch's Simultaneous Media Survey July 2006
Proprietary and Confidential Do not distribute without written permission from comScore
138
Thank You!
NAMES TITLES comScore, Inc. TEL EMAIL
Proprietary and Confidential Do not distribute without written permission from comScore
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