A digital year in review - Comscore
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Transcript of A digital year in review - Comscore
1© comScore, Inc. Proprietary.
2© comScore, Inc. Proprietary.
A Digital Year in Review
What You Need to Know Moving Ahead
Graham Mudd
VP Search & Media
3© comScore, Inc. Proprietary.
Topics for Discussion
State of the Internet
– How users spend their time online
– Social networks & user generated content
– Online video trends
– The world of search
– The rise of mobile
U.S. E-commerce Trends
State of U.S. Online Advertising Market
Measuring Online Advertising Effectiveness
4© comScore, Inc. Proprietary.
State of the Internet
5© comScore, Inc. Proprietary.
66%
14%
34%
86%
1996 2010
0
200
400
600
800
1,000
Mil
lio
ns
Online Population
by Geography
Source: comScore Media Metrix July 2010
Online Population
Growth Over Time
Rest of the
World
US
Online Population: U.S. still growing but losing share of users as the
rest of the world grows faster
Total
U.S.
There are approximately 1.3 billion people online today. 86% are located outside the U.S.
6© comScore, Inc. Proprietary.
comScore Leverages Rich Panel Data to Deliver Unique and Broad
Digital Business Analytics
The Only Global Measurement
of Audience and E-commerce
170+ Countries Under Measurement
43 Markets Reported
2 Million Person Panel
360°View of Person Behavior
V0910
7© comScore, Inc. Proprietary.
Topline view of U.S. Internet activity in August 2010
213MM Americans used the Internet
Online an average of 25 days in the month
Spent an average of 32 hours online in the month
Viewed an average of 2,739 pages
Spent an average of 5.0 hours with email alone
90% of users searched, conducting 119 searches per searcher
181MM viewers watched an average of 198 videos per viewer
Source: comScore Media Metrix August 2010
8© comScore, Inc. Proprietary.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Services (email, IM etc.)
PortalsConversational
Media
Entertainment
Aug-2009
Aug-2010
Total Minutes (000) Spent and % Change vs. YASource: comScore Media Metrix
Internet use in the U.S. is changing. Time spent online shifts from Portals and E-mail to Social Networking, Community and
Entertainment
+21%
Tota
l M
inute
s (
000)
+56%
-1%0%
9© comScore, Inc. Proprietary.
What Online Categories are Driving Web Usage?
The 31+ hours the average user spends online is divided among several key content
categories such as e-mail, Entertainment and Social Networking.
Top Categories Reach Top Categories Engagement
Source: comScore Media Metrix April 2010
0
100
200
300
400
Ave
rag
e M
inu
tes
/UV
-22%
-8% +4%
+14%+6%
+3%
80%
85%
90%
95%
100%
Re
ac
h
+7pt.
+17pt.
+19pt.
+16pt.
Y/Y % point
changeY/Y % change
+0pt.
+17pt.
10© comScore, Inc. Proprietary.
What Properties are Driving Web Growth?
Blogging sites
including
Federated
Media
Publishing,
Gawker Media,
and Technorati
Media continue
to grow rapidly.
In addition,
News sites
such as
Examiner.com
Sites and The
Washington
Post Company
have grown
significantly
year over year.0
10,000
20,000
30,000
40,000
50,000
60,000
UV
s (
000)
April 2009 April 2010
+791%
+365%
+235%
+205%
+190%
+160%
+155%
+140%
+137%
+132%
+120%
+100%
+100%
+96%
Source: comScore Media Metrix April 2010
11© comScore, Inc. Proprietary.
Sources for Fastest Growing Sites
18,386
2,790
2,266
1,145
YouTube.com
Facebook.com
MySpace
UVs (000)
Warner Music Sources
4,777
1,836
1,340
581
Yahoo!
Facebook.com
Windows Live
UVs (000)
LinkedIn.com Sources
4,402
2,023
2,691
2,164
YouTube.com
Facebook.com
Yahoo!
UVs (000)
Hulu Sources
4,016
1,931
2,711
1,375
MSN
Yahoo!
Facebook.com
UVs (000)
The Washington Post Sources
The majority of traffic to the fastest growing sites comes from Google, Yahoo!,
and Facebook.com.
Source: comScore Media Metrix April 2010
12© comScore, Inc. Proprietary.
Profile: Tumblr Users
Tumblr has revolutionized blogging
by allowing users to share
anything—text, photos, quotes,
links, music, and videos—in a
customizable and easy-to-use
interface.
During the month of April, the 3.2
million people who visited Tumblr
consumed 85 pages per visitor.
Age
228Females:
18-24
composition index UV
Income
133$100K+
13
169
Tumblr.com
Jun-09 Apr-10
+1,247%
Total Min (MM)
composition index UV
0
50
100
150
200
250
300
Total Pages Viewed (MM)*
*The first month of data available in Media Metrix for Tumblr.com* is June 2009.
Source: comScore Media Metrix April 2010
13© comScore, Inc. Proprietary.
Income
128$75K-100K
Profile: Groupon Visitors
Groupon offers daily local deals that
are made possible through the
power of collective buying. As
opposed to other daily deal websites
where consumers must compete to
get the deals, Groupon‘s community
works together.
The average Groupon visitor spent
only 2 minutes on the site viewing 5
pages throughout the month of April.
Age
173Females:
45-54
composition index UV composition index UV % composition UV
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Unique Visitors (000)*
+1,918%
Gender
41
59 Males
Females
*The first month of data available in Media Metrix for Groupon.com is July 2009.
Source: comScore Media Metrix April 2010
14© comScore, Inc. Proprietary.
Profile: ChatRoulette Visitors
Gender
74
26
Age
411Males: 18-24
composition index UV
Income
144$100K+
composition index UV % composition UV
109
1,564
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jan-10 Apr-10
Unique Visitors (000)*
+1,330%
*The first month of data available in Media Metrix for ChatRoulette.com is January 2010.
Males
Females
The average ChatRoulette visitor
consumed 12 pages in April 2010 and
spent 1.7 minutes on each page.
Source: comScore Media Metrix April 2010
15© comScore, Inc. Proprietary.
Profile: Foursquare Visitors
Foursquare‘s location-based social networking
service allows users to post their current
location and find their friends. As such, it is
primarily an on-the-go mobile device service.
In April 2010, the average visitor spent only 3.8
minutes on the site viewing 5 pages on a PC.
Income
129$75K-100K
composition index UV composition index UV % composition UV
0
50
100
150
200
250
300
350
400
Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10
Unique Visitors (000)*
Gender
6040
Age
250Males: 21-34
Males
Females
+1,906%
*The first month of data available in Media Metrix for Foursquare.com is November 2009.
Source: comScore Media Metrix April 2010
16© comScore, Inc. Proprietary.
Social Networking in the U.S.
17© comScore, Inc. Proprietary.
50,000
70,000
90,000
110,000
130,000
150,000
Facebook monthly UVs now over 148 million in the U.S. while MySpace still
reaches 60 million – more people than any single multi-channel retailer siteU
niq
ue V
isito
rs (
000
)
Number of Unique U.S. Visitors (000) to Facebook.com and MySpace.com Source: comScore Media Metrix
+61% in Aug. 2010 vs. YA
-7% in Aug. 2010 vs. YA
In May 2009, Facebook surpassed MySpace for the first time in terms of total U.S. UVs, and the site is
continuing to experience explosive growth, now with more than 2X the monthly UVs of MySpace.
18© comScore, Inc. Proprietary.
46.5 45.9
22.3 21.5
22.5 22.1
8.8 10.5
Aug-09 Aug-10
MySpace
Facebook visitors equally split between under and over 35 yrs of age,
whereas two thirds of MySpace visitors are under 35
Percent Composition of Visitors by Age DemographicSource: comScore Media Metrix
28.8 30.7
22.5 20.9
31.5 28.4
17.2 20.0
Aug-09 Aug-10
Facebook.com
Ages 50+
Ages 35-49
Ages 25-34
Ages 24 &
Under
19© comScore, Inc. Proprietary.
0
5,000
10,000
15,000
20,000
25,000
30,000
Total Unique Visitors (000) to Twitter.comSource: comScore Media Metrix
Twitter experienced explosive growth in early 2009, which has since leveled off at
about 20+ million monthly UVs.
Un
iqu
e V
isito
rs (
000
)
23.8 million UVs
+14% vs. Aug „09 &
+2043% vs. Aug „08
20© comScore, Inc. Proprietary.
Heavy Social Network Users* Have Distinct Usage Patterns
They spend nearly twice as much time online as the average Internet
user.
They represent 18% of all Internet users but account for over 35% of
the page views consumed online
They visit a social network site an average of 2.7 times a day and
spend 31 minutes per day on social networks sites
They spend three times as much time on social networks as they do
on email or IM
* Defined as the heaviest 20% of social network users
Source: comScore Media Metrix August 2010
21© comScore, Inc. Proprietary.
Online Video in the U.S.
22© comScore, Inc. Proprietary.
Online Video Viewing Growing Strongly with Significant Growth
Potential
April 2010
US Video Viewers 178MM
% Of Internet Users Who Viewed
At Least One Video83%
Total # of Viewed Videos 30.3B
YoY Growth in Video Views 81%
Videos per Viewer 170
Viewing Time per Viewer 12 hr, 24 min
Reach of elusive audiences
Better engagement
However, monetization is still a big
challenge:
User experience
Rights for UGC (User
Generated Content)
Value Drivers of Online Video
Advertising
Source: comScore Video Metrix April 2010
23© comScore, Inc. Proprietary.
Time Spent Streaming Jumps as Long-Form Content Floods the Web
0
30,000
60,000
90,000
120,000
150,000
Total Minutes (MM) Videos (MM)
Total US Streaming Minutes and Video ViewsSites heavy with
long-form content
have burst onto the
scene over the
past year.
Specifically, Hulu is
now the ninth most
popular video
property.
Over the past year,
this new content
type has
contributed to the
hours spent
streaming per
viewer increasing
by 93%.
+81%
April 2009 April 2010
Hours per Viewer 6.4 12.4
Videos per Viewer 110.7 170.5
Minutes per Video 3.5 4.4
+127%
Source: comScore Video Metrix April 2010
24© comScore, Inc. Proprietary.
Who Are Video Viewers at YouTube and Hulu?
YouTube and Hulu‘s audiences have recently begun to differentiate themselves from each other.
Hulu‘s audience is now more skewed toward an 18-34 age group with an income of more than $75K.
Age Distribution
17%
18% 19% 19%
15%
13%12%
22%21%
18%16%
11%
<18 18-24 25-34 35-44 45-54 55+
YouTube
Hulu
Income Distribution
53%
10%
16%
21%
50%
10%
17%
23%
<$60K $60-75K $75-100k $100K+
YouTube
Hulu
86 116 106 104 98 92 98 100 103 102YouTube:
60 137 120 98 107 83 92 101 110 113Hulu:
Index to Total Internet Viewers
Source: comScore Video Metrix April 2010
25© comScore, Inc. Proprietary.
U.S. Search Market
26© comScore, Inc. Proprietary.
Global Search Market Growth of 21 Percent since April 2009 More Than 2.9 Million Searches per Minute
0
5,000
10,000
15,000
20,000
25,000
United States
China Japan United Kingdom
Germany France Russia Brazil Korea Canada
Top 10 Countries by Number of Searches (MM) Conducted*
Apr-09
Apr-10+37%
+42%
-2%+5%+32%+69%+19%+27%
+26%
+7%
0
15,000
30,000
45,000
60,000
75,000
90,000
Google Sites Yahoo! Sites Baidu.com Inc.Microsoft Sites Facebook Yandex eBay NHN Corporation
Ask Network Conduit.com
Top 10 Search Properties by Searches (MM) ConductedApr-09
Apr-10
+10% +33%**+20%-14%+34%+77%+337%
+32%
+17%
*Searches based on “expanded search” definition, which includes searches at the top properties where search activity is observed, not only
the core search engines.
**Conduit.com did not have any search activity in April 2009. The first month of activity in qSearch was December 2009.
Google sites
account for
nearly two-
thirds of the
129.5 billion
searches
conducted
worldwide in
April.
Microsoft sites
saw the
greatest gains
among the top
five search
properties,
growing 32% to
4.3 billion
searches, on
the strength of
its successful
introduction of
Bing.
Source: comScore Press Release April 2010: comScore qSearch
27© comScore, Inc. Proprietary.
203.6 201.6 201.7 202.5 204.1 201.6 206.7 207.9 211.7 214.4 216.0 219.0 217.7
108.4 108.2 108.6 106.4 106.8 105.8 106.6 107.2 107.4 108.0 103.1
109.0 108.7
-
20.0
40.0
60.0
80.0
100.0
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
Apr-2009 Jul-2009 Oct-2009 Jan-2010 Apr-2010
Search growth was driven the increasing base of unique searchers (214MM in
April 2010), while search intensity remained flat versus April 2009.
qSearch: Trends in the Search Market, cont‘d
Total U.S. Unique Searchers (Millions) vs. Search Intensity
+0%
Change vs.
Apr-09
+7%
Source: comScore qSearch
Unique Searchers
(Millions)
Searches Per Searcher
28© comScore, Inc. Proprietary.
qSearch : Trends in the Search Market, cont‘d
62.5%
27.6%
9.9% 22.7 21.4
100.2 100.0
335.0 339.9
0
50
100
150
200
250
300
350
400
Apr-09 Jul-09 Oct-09 Jan-10 Apr-10
Searches per Searcher
Heavy Searchers (Upper 20%) Moderate Searchers (Middle 30%) Light Searchers (Bottom 50%)
+1%
+0%
-6%
Change vs.
Apr-09
Search IntensityContribution of each segment
to total searches
While all searcher segments‟ search intensity remained relatively flat or decreased since
April 2009, heavy searchers‟ search intensity grew the most Y/Y with 340 searches per
searcher in April 2010.
Source: comScore qSearch
29© comScore, Inc. Proprietary.
The Rise of Mobile
30© comScore, Inc. Proprietary.
Mobile On Track to Eclipse the Desktop
Source: Morgan Stanley Research
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Desktop
Mobile
Number of Global Users (Millions)
31© comScore, Inc. Proprietary.
Mobile Media—It‘s Not Just ―The Kids‖ Who Are Doing It
Average mobile media user is 32 and 46% are female.
Younger demographics create their own ringtones, use social networking services and listen to music
(web 2.0 type services).
Mobile internet services (browsing, apps and e-mail) skew 55-60% male.
Source: comScore MobiLens, 3 month average
ending March 2010
Browser
Used App
Mobile Media
Purchased Game
Purchased Ringtone
Made Own Ringtone
Unlimited Data Plan
Listened to Music
Played Games
Ringback
Social Networking
40
42
44
46
48
50
52
54
24.0 26.0 28.0 30.0 32.0 34.0 36.0
% F
em
ale
Median Age
Demographics of Mobile Media Activities
Higher on chart = more female
Further to right = older
Size of bubbles = # of users
32© comScore, Inc. Proprietary.
Samsung, Motorola and LG Lead in Mobile Market Share
Although the iPhone gains a large amount of hype, it still only represents 4% of
total mobile owners in the United States and 11% of all mobile media users.
But RIM and Apple have outsized share of mobile media users
22%
22% 22%
8% 8%
5%
2%
19%
13%
17%
19%
4%
13%
1%0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0%
5%
10%
15%
20%
25%
Samsung Motorola LG RIM Nokia Apple Sony Ericsson
% M
ob
ile
Me
dia
Us
ers
% M
ark
et
OEM Market Share for Total Market and Mobile Media Users
Total Market (All Device Owners) Mobile Media
Source: comScore MobiLens, 3 month average
ending March 2010
33© comScore, Inc. Proprietary.
Mobile Video Remain a Niche
4.7% watched some form of video
“Broadcast TV” (linear video) grew 32% YoY increase in the number of users but still only
represents 1.3% of the market.
* Change of methodology for video measures in April 09
1.0%
1.3%
1.9%
2.1%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
% M
ark
et
TV / On Demand Video Trend, US
Broadcast TV On-Demand Video
Source: comScore MobiLens, 3 month average
ending March 2010
34© comScore, Inc. Proprietary.
30% of Mobile Owners Now Browse the Mobile Internet
More than 1 million mobile users began browsing the Internet each month (Q1‟09-Q1‟10)
Social networking users are showing the highest gains with 80% YoY growth.
0%
5%
10%
15%
20%
25%
30%
35%
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
% M
ark
et
Mobile Internet Trends
Apps (except native games) Mobile Browsing Email Social Networking IM
Source: comScore MobiLens, 3 month average
ending March 2010
35© comScore, Inc. Proprietary.
Mobile Users Access a Wide Range of Content
49%
44%
36%
34%
31%
29%
24%
22%
21%
21%
20%
18%
18%
17%
15%
13%
13%
12%
12%
12%
weather
search
news
maps
sports information
entertainment news
movie information
stock quotes or financial news
bank accounts
tech news
restaurant information
traffic reports
business directories
general reference
classifieds
television guides
gaming information
electronic payments
auction sites
online retail
Top 20 Mobile Content CategoriesReach Among Active Users
(Browsing, Apps, SMS), April 2010, US
Source: comScore MobiLens, 3 month average
ending April 2010
36© comScore, Inc. Proprietary.
Browsing Audience Larger than App Audience . . . Mostly
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Top 10 Mobile Content CategoriesBrowser v. AppUS, April 2010
Browser
App
Source: comScore MobiLens, 3 month average
ending April 2010
37© comScore, Inc. Proprietary.
1 in 5 Mobile Phone Owners in the US Now Have a Smartphone
Driving this increase are phones that provide a strong foundation for media
consumption
Apple, RIM, and Android-based phones show the most growth. All three phones
now market to consumers who want to mix business use with a personal phone
0
2
4
6
8
10
12
14
16
18
20
Pe
rce
nt
of
Mo
bil
e U
se
rs
Growth in Smartphone Ownership(as a percentage of total market)
Apple
RIM
Palm
Symbian
Microsoft
Source: comScore MobiLens, 3 month average
ending March 2010
38© comScore, Inc. Proprietary.
Android Share Has Grown 5X in 12 Months
85% YoY increase in overall smartphone ownership
Apple and RIM have grown share
Android has surged—will soon eclipse Microsoft
21%
25%
2%
10%
27%
14%
38%42%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
% S
ma
rtp
ho
ne
Ow
ne
rs
Smartphone Share Trend
Apple Android Microsoft RIM
Source: comScore MobiLens, 3 month average
ending March 2010
39© comScore, Inc. Proprietary.
E-Commerce in the U.S.
40© comScore, Inc. Proprietary.
$42 $53 $67 $82$102
$123 $130 $130
$67
$30$40
$51$61
$69
$77 $84 $80
$44
2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD
$72
$93$117
$143
Non-
Travel
Travel
+29%
+26%
+22%
+19%
+26%
+33%
+26%
+28%
+20%
+24%+24%
+13%
$171
$200
+17%
+20%
+12%
+6%
+9%
+7%
Following a soft 2009, total e-commerce sales through Q2 2010 were up
7% versus year ago. Travel and non-travel up 5% and 9%, respectively.
$214
0%
-5%
$209
-2%
e-Commerce Dollar Sales Growth ($ Billions)Source: comScore e-Commerce Measurement
+9%
+5%
+7%
$111
41© comScore, Inc. Proprietary.
-15%
-10%
-5%
0%
5%
10%
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
-5%
0%
5%
10%
15%
20%
25%
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
After two quarters of accelerating sales, e-commerce growth
plateaued in Q2
Quarterly e-Commerce Sales Growth vs. YASource: comScore e-Commerce Measurement
Quarterly Retail & Food Services Sales Growth* vs. YASource: U.S. Department of Commerce (DOC)
17%
23%
19%
11% 13%
6%
-3% 0% -1% -2%
4%4% 5%4%3%
-8%
1%2%
-9%-10%
-7%
2%
23%
3%
7%
6%
10% 9%
When excluding autos, gas
and food/beverage, Q2 retail
sales growth was marginally
softer at +6%
*Note: The U.S. Department of Commerce calculation includes total retail and food
service sales, which also includes motor vehicles and parts dealers.
42© comScore, Inc. Proprietary.
e-Commerce continues to gain share of retail spending on an apples-
to-apples basis
*Note: e-Commerce share is shown as a percent of DOC‘s Total
Retail Sales excluding Food Service & Drinking, Food & Bev.
Stores, Motor Vehicles & Parts, Gasoline Stations and Health &
Personal Care Stores.
e-Commerce Share of Corresponding Retail Spending*Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail
e-C
om
merc
eS
ha
re
e-Commerce share peaks in
colder seasons (Q4 & Q1)
4.3%
3.7%4.0%
4.6%
5.1%
4.3%4.5%
5.3%
5.9%
5.0%
5.3%
6.4%
6.7%
5.9%
6.3%
7.4% 7.3%
6.5% 6.6%
7.6% 7.7%
6.8%6.9%
7.7%8.1%
7.1%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
43© comScore, Inc. Proprietary.
Monthly e-Commerce Sales Growth vs. YASource: comScore e-Commerce Measurement
Positive growth returned in 2010, with notably strong growth rates in
March & April, a possible result of heavier promotion activity in
Spring of 2010
Month Growth Rate vs. YA
January 2010 +7%
February 2010 +4%
March 2010* +17%
April 2010 +12%
May 2010 +8%
June 2010 +7%
July 2010 +9%
*March saw an additional bump in activity due to timing of Easter
in 2010
For January through July 2010, non-US residents accounted for 6.6% of ecommerce
sales at U.S. sites
Note: International contribution is defined as the percent of e-
commerce sales made on U.S. sites by consumers residing
outside of the U.S. It excludes U.S. sites with non-U.S.
addresses (e.g. amazon.co.uk).
150
200
250
300
350
400
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31
Week
2009 2010
ShopLocal Index of Weekly Offers Per StoreSource: ShopLocal
44© comScore, Inc. Proprietary.
Lower-and-upper income segments are drivers of online growth in Q2 2010, but
the large mid-income segment shows no growth and is down versus pre-
recession periods two years ago
Income SegmentOnline Retail
Online Retail
Spending
Under $50,000
Total
+14%
+8%
+22%
Income Segment Online Retail Spending Online Retail Spending
Growth in Q2 „10 vs. Q2 „08 Growth in Q2 „10 vs. YA
$50,000 - $99,999 -8% -2%
$100,000 or more +28% +17%
e-Commerce Sales vs. YA by Income SegmentSource: comScore e-Commerce Measurement
Contribution of Total
e-Commerce Growth
for Q2 „10
+5%
-1%
+6%
Bracket
Share of
Spending
in Q2 „10
22%
41%
37%
45© comScore, Inc. Proprietary.
The State of the U.S. Online Advertising Industry
46© comScore, Inc. Proprietary.
While online advertising is only 14% of total ad spending, it fared best
out of all declining media spends in 2009
Source: IAB Internet Advertising Revenue Full Year Report, 2009
% of 2009 Ad Spending in the US
Online14%
TV39%
Print22%
Radio9%
Out of Home
4%Other12%
% Change in Advertising Dollars Spent
Newspapers
Trade Advertising
Magazines
Radio
Out of Home
Total Ad Supported
Broadcast TV
Directory
TV Distribution
Cable TV
Internet
Media 2008 to 2009
-3%
-5%
-9%
-12%
-14%
-15%
-17%
-19%
-21%
-25%
-28%
47© comScore, Inc. Proprietary.
Growth in online advertising slowed and went negative for the
majority of 2009 before increasing in Q4
SOURCE: IAB Internet Advertising Revenue Report, 2009 Full-Year Results, April
2010, IAB & PricewaterhouseCoopers
Online Ad Spending $ Billions and % Chg vs. YA
$4.9 $5.1 $5.2
$5.9 $5.8 $5.7 $5.8 $6.1
$5.5 $5.4 $5.5
$6.3
% Chg
vs. YA
+23% +24% +18%+24% +23% +12% +11% -5%+3% -5% +3%-5%
48© comScore, Inc. Proprietary.
Search Accounts for 47% of Q4 2009 Revenue Followed by Display
Related (Banners+Rich Media+Video+Sponsorships) at 37%
Search47%
Banners23%
Rich Media7%
Video5%
Sponsorships2%
Classifieds9%
Lead Gen6%
E-mail1%
Q4 2009 Revenue
SOURCE: IAB Internet Advertising Revenue Report, 2009 Full-
Year Results, April 2010, IAB & PricewaterhouseCoopers
49© comScore, Inc. Proprietary.
CPMs are lower in Q1, while display ads per total pages remain steady
Source: comScore Ad Metrix, April 2010; Adify‘s Q1 2010
CPM Trend
Display Ads per Total Page
0.6 0.7
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
eCPM Trends Across All Verticals
$4.54 $4.28
$6.04
$5.24
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
Q2 2009 Q3 2009 Q4 2009 Q1 2010
Median CPMs
50© comScore, Inc. Proprietary.
Social Networking sites account for 28 percent of all display ad
impressions
Selected Top Display Advertising CategoriesSource: comScore Ad Metrix, July 2010 U.S.
Publisher
Total Display
Ad
Impressions
(MM)
Total Internet : Total Audience 435,685
Social Networking 122,832
Portals 85,583
Entertainment 53,494
E-mail 41,322
Community 23,484
Games 16,830
General News 16,273
Sports 14,401
Photos 13,518
Newspapers 12,330
Social Networking 28.2%
Portals 19.6%
Entertainment 12.3%
E-mail 9.5%
Community 5.4%
Games 3.9%
General News 3.7%
Sports 3.3%
Photos 3.1%
Newspapers 2.8%
All others 8.2%
51© comScore, Inc. Proprietary.
Social Networking Ads Account for a High Proportion of all Display Ad
Impressions but Because of Low Prices Represent a Far Lower Share of
Display Ad Dollars
Source: comScore Ad Metrix, July 2010
Share of Total
Display Ad
Impressions
Share of Total
Estimated Display
Ad Spending ($)
Social Networking 28.2% 6.1%
Facebook.com 22.3% 3.3%
MySpace 3.8% 1.6%
Facebook.com alone delivers 1 out of 5 display ad impressions online.
52© comScore, Inc. Proprietary.
Digital, Technology, and Telecom/Mobile Brands Dominate the List of
Top Advertisers on Social Networking Sites Weak
Advertiser Total Display Ad Impressions
AT&T Inc. 1.3B
IAC - InterActiveCorp 1.0B
Google, Inc. 661M
Make-My-Baby.com 590M
Verizon Communications
Inc. 555M
Walt Disney Company 461M
AOL LLC 430M
Experian Interactive 371M
Progressive Corporation 343M
Universal Technical
Institute, Inc. 335M
Top Advertisers on Social Networking Sites in Total Display Ad Impressions (000) Time August 2010Source: comScore Ad Metrix
Advertiser Total Display Ad Impressions
Netflix, Inc. 321M
Microsoft Corporation 302M
Apollo Group, Inc. 279M
Time Warner Inc. 251M
Toyota Motor
Corporation 250M
Sony Corporation 241M
eBay Inc. 238M
Hewlett-Packard
Company 220M
Zoosk, Inc. 212M
Avis Budget Group, Inc. 198M
53© comScore, Inc. Proprietary.
Mobile Advertising Small but Set to Grow? Search to Dominate?
54© comScore, Inc. Proprietary.
Online Advertising Effectiveness:
What We‘ve Learned in 2010
55© comScore, Inc. Proprietary.
Click Rates on Individual Campaign Ads are Minimal
Source: DoubleClick for Advertisers, U.S. Advertisers, Jan- Dec ‗09
DoubleClick Rich Media Formats Only
A Cross-Section of Major U.S. Verticals
0.15%
0.08%
0.09%
0.06%
0.10%
0.09%
0.10%
0.07%
0.08%
0.09%
Auto
B2B
CPG
Financial Services
Media/Entertainment
Retail
Tech
Telecom
Travel
Wellness
Click-Through Rate on Individual Ad Campaigns by Industry Vertical for DoubleClick Rich-
Media Format
56© comScore, Inc. Proprietary.
Clickers represent a small, rapidly declining segment of Internet
users. Optimizing against clicks means ignoring 84% of Internet
users
July 2007 March 2009
Note: clickers are defined as anyone who clicked on at least one display ad for any campaign in month
Non-Clickers
68%
Clickers 32%
Non-Clickers
84%
Clickers16%
Source: comScore, Inc. custom analysis, Total US Online
Population, persons, July 2007 and March 2009 data periods
57© comScore, Inc. Proprietary.
2009 U.S. Measured Media Spend
$147 BillionD
ire
ct
Re
sp
on
se
Bra
ndin
g
$91B
$55B
2009 U.S. Online Media Spend
$24 Billion
$6B
$18B
63%
37%
6% of
branding
dollars
30% of direct
response
dollars
With a continued reliance on the click, digital is leaving value
branding dollars on the table
Source: Barclays, ThinkEquity Partners, Brand.net
58© comScore, Inc. Proprietary.
Measuring the Retail Impact of Online Ad Campaigns
200+ comScore studies conducted to assess impact of paid search and online ads
on online and offline sales
Real world analysis: comScore panelists divided into two matched groups
(exposed and non-exposed to advertising)
– Search only
– Display ads only
– Search and display ads together
– Neither
Passively measured behavior, no surveys involved:
• Online activity through comScore behavioral panel
– Linked to in-store buying through CRM databases, retailer loyalty cards (e.g. Kroger),
credit card data, IRI scanner panel
Analytical design compares behavioral changes in test and control groups from
pre- to post-campaign time periods
58
59© comScore, Inc. Proprietary.
82% of Online CPG Brand Campaigns Measured by comScore have
Generated an Average Lift of 22% in Brand Sales in Retail Stores
Campaigns we have analyzed
– Cookie Mixes, Cereal, Frozen Snacks, Pizza, Tea, Toothpaste, Juice Drinks, Deodorants,
Snack Bars, Pasta, Meals and more
Online advertising (banners, rich media and video) increased (i.e. lifted) offline sales
in 80% of all campaigns
-20%
0%
20%
40%
60%
80%
100%
Average $ lift was 22%82% of campaigns
showed a positive
sales lift
Percent Lift in
Dollar Sales
Source: comScore CPG Ad Effectiveness Study
60© comScore, Inc. Proprietary.
Case study: comparison of short-term offline sales lift for CPG brands
resulting from online advertising vs. TV advertising
* BehaviorScan tests conducted over one-year period. comScore studies conducted over a three-month period;
assumes 40% household Internet reach against target.
Source: comScore AdEffx Offline Sales Lift for Internet; IRI
BehaviorScan for TV
61© comScore, Inc. Proprietary.
The cost of various display advertising strategies can vary
dramatically
Cost Index
Source: “When Money Moves to Digital, Where Should it
Go?”, comScore & ValueClick, September 2010
62© comScore, Inc. Proprietary.
Not surprisingly, as targeting becomes more focused, reach declines
Reach Index
Source: “When Money Moves to Digital, Where Should it
Go?”, comScore & ValueClick, September 2010
63© comScore, Inc. Proprietary.
Retargeting proved to be the most successful strategy for increasing
site visitation
Source: “When Money Moves to Digital, Where Should it
Go?”, comScore & ValueClick, September 2010
64© comScore, Inc. Proprietary.
Likewise, retargeting was also very successful in driving search
Source: “When Money Moves to Digital, Where Should it
Go?”, comScore & ValueClick, September 2010
65© comScore, Inc. Proprietary.
Creative matters in digital, just as it has in TV advertising for years. Over 50%
of the impact of advertising is driven by the strength of creative.
Ad Quality 52%
Media Weight
13%
Other35%
*Quality of creative is based on ARS Persuasion Score which measures
changes in consumer preference through a simulated purchase exercise with
and without exposure to the creative .
comScore ARS Global Validation Summary includes an evaluation of 396 TV ad
campaigns, utilizing sales data from R. L. Polk New Vehicle Registration, IMS
HEALTH, IRI InfoScan, Markettrack, Nielsen SCANTRACK or Nielsen Retail
Index.
Media Weight = Ad planning elements, such as GRPs, wearout & continuity/flighting of airing
Ad Quality = quality of the creative based on ARS Persuasion Score*.
% Influence on Market Share ShiftsSource: Source: comScore ARS Global Validation Summary
Creative is 4x More
Impactful in Influencing
Sales Than
Planning Variables
Numbers represent the percent variance in market share shifts explained by the corresponding
factors.
66© comScore, Inc. Proprietary.
Conclusions
Online advertising is gaining share of traditional ad spend
E-commerce is gaining share of consumer spending
Both will emerge in stronger positions when the economy improves
Social Networks have become popular destinations online and their momentum
continues
Social Networks have added an almost ―infinite‖ supply of display ad inventory, and
along with Ad Networks have helped drive down CPMs
The click is not the appropriate metric to use to evaluate the effectiveness of online
ad campaigns. One needs to measure consumers‘ attitudinal and behavioral
response to ads, incorporating latency and offline impact
Even with minimal click rates, display advertising can have a significant impact on
site visitation, trademark search queries, and both online and offline sales
Data driven targeting of online display ads will be a key driver of spend shifting
online in 2011