Canada's Digital Future in Focus

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Key Insights from 2011 and What They Mean for the Coming Year



2 © comScore, Inc. Proprietary.

Introduction to 2012 Canada Digital Future in Focus

Technological innovations in digital device hardware and software have enabled a rapid

increase in consumers‟ digital consumption habits, marking an exciting time for the digital

media industry and depicting an even more influential year ahead. Successful navigation

of this fast-evolving landscape requires a thorough review of the current environment, and

more importantly, the underlying trends that are shaping the future of digital.

comScore presents the 2012 Canada Digital Future in Focus, its annual report on the

prevailing trends in general web usage and demographics, social media, online video,

digital advertising, mobile and search that are defining the current Canadian marketplace

and insights into what these trends mean for the year ahead.

For further information, please contact:Kevin Duong

comScore, Inc.

[email protected] +1 416.646.9981

mailto:[email protected]

http://www.facebook.com/comscoreinc

http://itunes.apple.com/gb/app/comscore-for-ipad/id481015821?mt=8

http://www.linkedin.com/company/comscore-inc.

https://twitter.com/comscore

http://www.youtube.com/comscore





Executive Summary 4

Overview of Canadians Online 5

The Category Perspective 9

Social Networking 14

comScore/PMB Fused Database 20

Online Video 29

Digital Advertising 34

Mobile 38

comScore Canada Custom Reporting 43

Conclusion: Putting the Future in Focus 2012 46

About comScore 50

Table of Contents




Canada continues to lead the world in online engagement, with visitors spending an average 45hours per month online, representing a fertile ground for digital marketers and advertisers.

Movie Retailer, Online Trading and Coupon sites represent the fastest-growing categories in terms ofunique visitors.

While Facebook is nearing a point of visitor saturation in Canada, other social networks‟ visitor

bases are posting strong growth, including Twitter, LinkedIn and Tumblr. Engagement on manysocial sites is trending upward, with Facebook driving the large majority of the increase in totalminutes and page views for the overall category.

Online video is becoming an increasingly popular channel, with total videos viewed up 58 percent.YouTube continues to dominate the marketplace, representing nearly 1 in every 2 videos viewed inCanada.

Display advertising is evolving to be more social, not only with the rise of “socially-published ads”(i.e. those published on social networking sites), but also the increase of “socially-enabled” adsrunning across the web that direct click-throughs to the brand‟s Facebook fan page.

Smartphone penetration has reached 45 percent in Canada, with daily mobile content usage growingmore than 50 percent in several key content categories.

Executive Summary




Overview of Canadians Online




Total Unique Visitors (000) Average Hours/Visitor Average Pages/Visitor Average Visits/Visitor

Location Q4 2010 Q4 2011 Q4 2010 Q4 2011 Q4 2010 Q4 2011 Q4 2010 Q4 2011

World-Wide 1,314,031 1,438,302 23.1 24.4 2,133 2,370 53.0 56.0

China 287,451 330,817 13.5 13.8 1,238 1,391 38.6 38.2

United States 181,239 187,869 35.3 40.3 2,953 3,566 80.9 89.7

Japan 72,913 73,450 18.4 21.2 1,928 2,266 43.8 52.1

Russian Federation 45,692 52,491 21.8 24.6 2,704 2,729 52.9 57.4

Germany 49,257 50,856 24.1 25.5 2,858 2,943 60.0 62.5

India 41,170 46,391 11.9 12.8 1,089 1,209 30.6 31.8

Brazil 39,335 45,740 25.8 27.7 2,089 2,166 56.5 57.0

France 41,827 42,823 26.6 28.1 2,752 2,882 68.7 71.8

United Kingdom 38,581 37,462 32.3 37.1 2,883 3,419 69.4 82.1

South Korea 30,155 30,837 27.7 31.2 4,093 3,983 50.1 57.9

Italy 22,617 24,226 16.8 18.5 1,696 2,020 40.4 43.8

Canada 22,945 23,594 43.5 45.6 3,349 4,014 95.2 101.7

Canada‟s online population continues to lead in engagement

#1 #1#1

Source: comScore, Inc., Media Metrix, Home & Work, Persons: 15+, 3 Mo. Avg. Q4 2010 & Q4 2011


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4,690

6,760

8,767

4,7474,493

6,685

8,934

5,047

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Persons: Under 18 Persons: 18-34 Persons: 35-54 Persons: 55+

T o t a

l U n

i q u e

V i s i t o r s

( 0 0 0

)

Q4 2010 Q4 2011

Persons 55+ accessing the fixed Internet are increasing rapidly

Growth of Online Users by Age

Q4 2010 vs. Q4 2011

-4%+6%

-1%

+2%

Source: comScore, Inc., Media Metrix, CA, Home & W ork, Persons: 2+, Dec 2010 – Dec 2011Source: comScore, Inc., Media Metrix, CA, Home & W ork, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011



Demographic Breakdown: Canada

Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2011

19%

32%

19%

27%

0%

5%

10%

15%20%

25%

30%

35%

Less than$40,000

$40,000 -$74,999

$75,000 -$99,999

$100,000 ormore

% C

o m p o s i t

i o n

U V s

Household Income (CAD)

9%

9%

9%

9%

4%

9%

11%

8%

9%

9%

4%

9%

0% 5% 10% 15% 20%

55+

45-54

35-44

25-34

18-24

Under 18

% Composition Unique Visitors

Age Segments by Gender

Males Females

Ontario38%

Quebec24%

Praries18%

BritishColumbia

13%

Atlantic7%

Regional Breakout



The Category Perspective




0%

5%

10%

15%

20%

25%

Social Networking

Entertainment

Portals

e-mail

News/Information

Instant Messengers

Games

Retail

Social Networking and Entertainment sites now account for thegreatest share of time spent online

Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, Dec 2010 – Dec 2011

Share of Time Spent (%)

+2.7pts

+4.1pts

-4.9pts

-1.4pts

+0.0pts

-3.5pts

+0.1pts

+0.5pts

Change vs.Dec-2010



11 © comScore, Inc. Proprietary. *Excluding Publisher & ISP CategoriesSource: comScore, Inc., Media Metrix, CA, Home & W ork, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

T o

t a l U n

i q u e

V i s i t o r s

( 0 0 0 )

Q4 2010 Q4 2011

Netflix made a big splash in its first full year in Canada, driving theMovie Retailers category to record heights

+106%

+81%

+50%

+31%

+28%

+28%

+27%

+26%

+25%

Top 10 Gaining Site Categories*

+36%




Content Consumption Profile: Household Income More Than $60K

Approximately two-thirds of Canadian visitors to Political News and Education Information sites have

a Household Income of more than $60,000.

67%

65%64%

64%

63% 63%62% 62%

61% 61%

115

111

110109

107107

106 106

104 104

102

104

106

108

110

112

114

116

57%

58%

59%

60%

61%

62%

63%

64%

65%

66%

67%

68%

C

o m p o s

i t i o n

U V I n d e x

% C o

m p o s

i t i o n

U n

i q u e

V i s i t o r s

% Composition Unique Visitors Composition UV Index

Source: comScore, Inc., Media Metrix, CA, Home & W ork, Persons: 2+, HHI: Over $60K, 3 Mo. Avg. Q4 2011




Content Consumption Profile: Household Income Less Than $60K

52%

50% 50%

48%47% 47%

46% 46% 46% 46%

126

121120

114 114 113

112 112 111 111110

112

114

116

118

120

122

124

126

128

43%

44%

45%

46%

47%

48%

49%

50%

51%

52%

53%

C o m p o s

i t i o n

U V I n d e x

% C o

m p o s

i t i o n

U n

i q u e

V i s i t o r s

% Composition Unique Visitors Composition UV Index

Whereas, approximately half of Canadian visitors to Personals, Travel Transactions and Online

Gambling sites have a Household Income less than $60,000.

Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, HHI: Under $60K, 3 Mo. Avg. Q4 2011




Social Networking




14,844

20,648

0

5,000

10,000

15,000

20,000

25,000

Total Pages (MM)

Q4 2010 Q4 2011

Social continues to permeate the fabric of the Web, showingespecially strong growth from an engagement perspective

8,105

10,708

0

2,000

4,000

6,000

8,000

10,000

12,000

Total Minutes (MM)

Q4 2010 Q4 2011

+32%

+39%

Total Minutes (MM) on

Social Networking Sites

Total Pages (MM) on


Source: comScore, Inc., Media Metrix, CA, Home & W ork, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011




Persons 18-24 are exhibiting the strongest surge in engagement withSocial Networking sites

5.4

6.2

7.3

8.7

10.8

9.4

3.7

5.5

6.3

6.6

6.5

5.9

0 2 4 6 8 10 12

Persons: 55+

Persons: 45-54

Persons: 35-44

Persons: 25-34

Persons: 18-24

Persons: Under 18

Q4 2010 Q4 2011

581

661

827

1,006

1,326

1,173

425

607

666

722

711

648

0 500 1,000 1,500

Persons: 55+

Persons: 45-54

Persons: 35-44

Persons: 25-34

Persons: 18-24

Persons: Under 18

Q4 2010 Q4 2011

Avg. Hours per Visitor by Age on


Avg. Pages per Visitor by Age on


+59%

+46%

+67%

+33%

+16%

+14%

+81%

+37%

+87%

+39%

+24%

+9%





8.8

6.5

6.6

4.7

0 1 2 3 4 5 6 7 8 9 10

Females

Males

Average Hours per Visitor by Gender on Social Networking Sites

Q4 2010 Q4 2011

Females are currently more engaged on Social Networking sites, butmales are catching up

+39%

+33%

+50%

+38%


999

774

726

517

0 200 400 600 800 1000 1200

Females

Males

Average Pages per Visitor by Gender on Social Networking Sites

Q4 2010 Q4 2011




Facebook‟s audience growth is nearing saturation in Canada, but

users are spending more time on the site and visiting more frequently

800,000

850,000

900,000

950,000

1,000,000

1,050,000

0

2,000

4,000

6,000

8,000

10,000

12,000

T o

t a l V i s i t s ( 0 0 0 )

T o

t a l M i n u

t e s

( M M )

Total Minutes (MM) Total Visits (000)

+20% +15%

Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, Dec 2010 – Dec 2011




17

65

110

337

38

56

70

0 200 400

Pinterest.com

LinkedIn.com

Twitter.com

Tumblr.com

Total Minutes (MM)

Q4 2010 Q4 2011

378

2,896

4,104

5,427

1,035

2,951

3,396

0 2000 4000 6000

Pinterest.com

Tumblr.com

LinkedIn.com

Twitter.com

Total Unique Visitors (000)

Q4 2010 Q4 2011

Many Social Networking sites across the landscape are witnessingterrific growth in visitors and minutes

+180%

+39%

+60%+382%

+98%

+70%

Select Social Networking Sites

Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2010, Q2 & Q4 2011

+364%since Q2

+2,038%since Q2




comScore/PMB Fused Database




About comScore/PMB Fused Database

Since 2010, comScore and Print Measurement Bureau (PMB) have released a joint

product offering that links Canadians‟ online media habits with print readership and

other media consumption data, along with product and brand usage, all in one, single

database.

The comScore and PMB databases were combined using a state-of-the-art,

sophisticated data linkage technique to ensure that the audience data from the two

original databases are retained as well as the extensive PMB product and brand usage

data. The fused database is released twice per year, in spring and fall, and is available

exclusively to PMB members and comScore Canada clients.

The following examples use the Spring 2011 fused database to demonstrate the unique

analyses that can be created using the comScore/PMB fused database.




94

95

101

101

104

109

113

0 50 100 150

I get quite attached to my car

If possible, I use a local gas station for car maintenance/service

I refuse to buy a car that is not fuel efficient

The choice of car tells a great deal about a person

Given the choice, I'd always choose a full size/luxury auto

I try to do car maintenance work myself as much as possible

I love expensive sports cars

Index

Auto site visitors are 13 percent more likely to love expensive sportscars, 9 percent more likely to attempt maintenance work

Interestingly, theyare 6 percent lesslikely to become

attached totheir car

Source: comScore/PMB, 2011 Spring Fusion




2,054

1,058

1,229

2,163

1,032

399272

103

100

110

104

99

103

115

90

95

100

105

110

115

120

0

500

1,000

1,500

2,000

2,500

Under$10,000

$10,000 -$14,999

$15,000 -$19,999

$20,000 -$29,999

$30,000 -$39,999

$40,000 -$49,999

$50,000+

I n d e x

A u

d i e n c e

( 0 0 0 )

Audience (000) Index

Of Canadians visiting Auto sites, most are spending between $20,000and $29,999 or under $10,000 on most recently acquired vehicle

*Excluding “Not Stated” Source: comScore/PMB, 2011 Spring Fusion

$ Spent on Most Recently Acquired Vehicle*




94

97

98

99

100

100

106

106

106

109

80 90 100 110 120

I seldom make a financial move without consulting an expert

I consider myself to be a risk adverse investor

I prefer to postpone a purchase than to buy on credit

I have taken steps to ensure I have suff. income for my retirement

I spend money more carefully than I used to

I always have an accurate account of my financial commitments

I am more of a spender than a saver

I will welcome a cashless society

My main goal is to make a great deal of money as quickly as possible

I consider myself an entrepreneur

Index

Business/Finance site visitors are 9 percent more likely to considerthemselves entrepreneurs and 6 percent less likely to seek expert advice





6,732

6,152

4,716

1,401 1,280 1,134 971

635 625 575 407 406 395166

117118

115

119118

121

127

116118

116

126125

121

138

100

105

110

115

120

125

130

135

140

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

I n d e x

A u

d i e n c e

( 0 0

0 )


Of Canadians visiting Business/Finance sites, most use Internetbanking for Paying bills, Account queries and Transferring funds

Personally Used Internet Banking in Past 3 Months for*…

*Excluding “Not Stated” **LOC refers to Line of Credit





4,240

2,1432,012

1,479

686

471 402 317 309162 89 84 40

109113

120114 114 111

121

129

9499 99 98

126

0

20

40

60

80

100

120

140

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

I n d e x

A u

d i e n c e

( 0 0 0 )


Of Canadians visiting Business/Finance sites, a Personal Line ofCredit is the most common type held

Loan/Line of Credit Personally Held*

*Excluding “Not Stated” **LOC refers to Line of Credit





101

105

106

110

110

111

111

112

112

113

114

116

117

117

118

118

121

90 95 100 105 110 115 120 125

Attend cultural events

Visit friends/relatives

Go shopping

Sightseeing

Attend sporting events

Go to a beach

Take in night life

Hunting/fishing

Attend conference

Hiking/adventure toursSports activities

Golf

Visit museum/art gallery

Snowmobiling

Visit any national/provincial park

Visit a theme park/zoo

Skiing/snowboarding

Index

Of Canadians visiting Travel sites, Skiing/snowmobiling, Visiting themeparks/zoos and Visiting national/provincial parks were most popular

Activities During Vacation In Canada Within the Past 12 Months*





733

335

229182 154

87

111

100

113

102

116

110

90

95

100

105

110

115

120

0

100

200

300

400

500

600700

800

I n d e x

A u

d i e n c e

( 0 0 0 )

Used Travel Agent for Vacation in Canada*


Of Canadians visiting Travel sites, most Canadians used travelagents for the purpose of flight reservations

437

780

1,095

877

572

359

842

107

113

106

116

99101

108

90

95

100

105

110

115

120

0

200

400

600

800

1,000

1,200

I n d e x

A u

d i e n c e

( 0 0 0 )

$ Spent on Last Vacation Outside of Canada*






Online Video




YouTube Videos per Viewer

YouTube, which owns nearly half of Canada‟s online video market,has seen a rise in viewing intensity over the past year

101

271

0

50

100

150

200

250

300 +170%

Source: comScore, Inc., Video Metrix, CA, Home & W ork, Persons: 2+, Dec 2010 – Dec 2011




Total online video viewership is up 58 percent in the Canadian marketyear over year

The Entertainment category is showing the greatest increase in the number of videos viewed,

streaming a monthly average of 5.3 billion videos in Q4 2011.

Videos Viewed (000)*

Category Q4 2010 Q4 2011 % YoY Change

Entertainment 2,437,825 5,289,603 +217%

News/Information 140,690 259,624 +185%

Services 78,345 140,222 +179%

Sports 49,512 91,593 +185%

Games 31,217 59,108 +189%

*Excluding Corporate Presence, Portals , Promotional Servers and XXX AdultSource: comScore, Inc., Video Metrix, CA, Home & W ork, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011




Younger viewers (those under 35) account for 57 percent of all videosviewed online

Persons:Under 18

19%

Persons: 18-249%

Persons: 25-34

18%

Persons: 35-4418%

Persons: 45-5417%

Persons: 55+19%

14%

18%

12% 18%

13%

26%

% CompositionVideos

% CompositionUnique Viewers

Source: comScore, Inc., Video Metrix, CA, Home & W ork, Persons: 2+, 3 Mo. Avg. Q4 2011

All i li id i i i h




All age groups are accessing online videos at an increasing rate, withpersons 18-34 exhibiting the strongest growth

As we continue to watch this trend continue upwards, we‟ll likely see more digital dollars moving

towards video media.

0

5

10

15

20

25

30

35

40

45

50

Q4 2010 Q4 2011

0

50

100

150

200

250

300

350

400

450

500

Q4 2010 Q4 2011

+79%

+111% +125%

+79%

+97%

+100%

+48%

+70% +75%

+35%

+47%

+53%

Hours per Viewer Videos per Viewer

Source: comScore, Inc., Video Metrix, CA, Home & W ork, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011




Digital Advertising

P&G l d di l d l i C d f th d t i ht




P&G led display ad volume in Canada for the second straight year;Netflix made a significant investment in their first full year in Canada

3,181,792

3,780,094

3,801,193

3,811,238

4,087,827

5,257,168

5,526,511

6,312,191

6,430,937

7,514,463

Vistaprint, Inc.

BCE Inc.

ING Groep N.V.

Dell Inc.

Royal Bank of Canada

Microsoft Corporation

Condis BV

Netflix, Inc.

General MotorsCorporation

Procter & Gamble Co.

Total Display Ad Impressions (000)

Source: comScore, Inc., Ad Metrix, CA, Home & Work, Persons: 2+, Jan – Dec 2011




Majority of display ads are viewed on Social Media and Portal sites

Total Display Ad Impressions (000) in 2011

Source: comScore, Inc., Ad Metrix, CA, Home & Work, Persons: 2+, 2011

191,765,840

101,569,48888,992,708

60,005,522

38,845,134

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

Social Media Portals Entertainment News/Information E-mail

The largest year over year growth comes from traditional media categories like

Entertainment, General News, and Newspaper Sites

Di l d h S i l d i i t ffi t b d ‟ F b k




Display ads have gone Social, driving traffic to brands‟ Facebook

pages from all over the Web as well as within Facebook itself

By Q4 2011, 24 percent of all online display ads were considered „socially-published‟, while

7 percent were „socially-enabled‟.

Socially-Published Socially-Enabled

Source: comScore, Inc., Ad Metrix Social, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2011




Mobile

Smartphone penetration has reached 45 percent of the Canadian




Smartphone penetration has reached 45 percent of the Canadianmobile market, reflecting the growing need to be connected on-the-go

33% 36%40%

45%

67% 64% 60%

55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mar-11 Jun-11 Sep-11 Dec-11

Smartphone Feature Phone

Source: comScore, Inc., MobiLens, CA, Persons: 13+, Mar – Dec 2011

Mobile Penetration

Smartphones have rapidly penetrated the mobile market up most




Smartphones have rapidly penetrated the mobile market, up mostsignificantly in Quebec (+16 pts.) and Atlantic (+15 pts.) since March

British Columbia51%

Atlantic43%

Quebec36%

Prairies46%

Ontario48%

+14 pts.since

March 2011

+9 pts.since

March 2011 +12 pts.since

March 2011

+16 pts.since

March 2011

+15 pts.

sinceMarch 2011

Smartphone Penetration by Region

December 2011


More Canadian Smartphone subscribers are accessing mobile




More Canadian Smartphone subscribers are accessing mobilecontent “almost every day”

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

S m a r t p

h o n e

S u

b s c r i b e r s

( 0 0 0 )

+43%

+40%

+59%

+55%+30%

+26%+46% +51%

+58% +46%

Top Mobile Categories Accessed Almost Every Day by Smartphone Users


The primary result of scanning a QR code is for obtaining product




The primary result of scanning a QR code is for obtaining productinformation

79%75%

65%

84%

66%74%

63%

37%

50%

38%

29%

39%

54%

36%

8%

18% 16%11%

19%23%

39%

28% 30%27%

35%

41% 43%44%

16%

22%18%

16%

24% 23% 25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Printed magazineor newspaper

Poster or flyer orkiosk

Website on PC Productpackaging

Business card orbrochure

Storefront TV

% S m a r t p

h o n e

S u

b s c r i b e

r s

Product information Event information Charity/cause information Coupon or offer Application download

In December 2011, more than 1.4 million Canadian smartphone subscribers scanned QR Codes with

their mobile device at least once in the month; 329,000 Canadian smartphone subscribers scanned a

QR code at least once each week.

Source: comScore, Inc., MobiLens, CA, Persons: 13+,Dec 2011




comScore Canada Custom Reporting




“Facebook” the most popular search term in Canada

Online Entities

Search Term Searches (MM)

FACEBOOK 648.0

YOUTUBE 271.8

HOTMAIL 198.2

GOOGLE 134.2

KIJIJI 81.9

Retailer/Brands


CANADIAN TIRE 23.2

FUTURE SHOP 16.5

WALMART 15.4

AIR CANADA 14.9

BEST BUY 14.0

Directories/Resources


GOOGLE MAPS 22.0

WEATHER 20.4

CANADA 411 19.3

THEATERS 15.6

GOOGLE TRANSLATE 14.9

The search terms above drove the overall growth of search in Canada. In Q4 alone, there were 14.4

billion searches made in Canada, up 22 percent from Q4 2010. Canadians, like many searchers

worldwide, continue to search for online destinations within their search engine. Retailers and brands

continue to gain positive momentum in search as well. “Canadian Tire” as a search term grew 22

percent from 19 million searches in 2010.

Source: comScore, Inc., Custom Reporting, CA, Persons: 2+, 2011Source: comScore, Inc., qSearch, CA, Home & Work, Persons: 2+, 2011

51.9 billion searches in 2011

The holiday season continues to be a time of strong online search




The holiday season continues to be a time of strong online searchand commerce activity

Searches(MM)

% ChangeYoY

E-Commerce Items% Change

YoY

Oct 2011 4,790 +26% 8,554,529 0%

Nov 2011 4,835 +20% 8,480,663 +8%

Dec 2011 4,808 +20% 10,429,292 +5%

As Canadians continue to consume more digital content on all devices and screens, the growth in

search is something that marketers and digital content producers need to keep in mind.

In addition to searches, the online retail economy was particularly strong in Canada with more than

27 million items purchased in 2011. December was the exclamation point of E-Commerce in 2011,

accounting for more than 10 million items transacted and 12 percent of the all items during the year.

Q4

Source: comScore, Inc., Custom Reporting, CA, Persons: 2+, 2011Source: comScore, Inc., qSearch, CA, Home & Work, Persons: 2+, 2011




Conclusion: Putting the Future in Focus 2012

As more dollars shift to digital in 2012 the industry will require greater




As more dollars shift to digital in 2012, the industry will require greatertransparency and standard metrics for campaign measurement

Digital advertising spend in Canada is expected to total 2.6 billion in 2011*. Brands invest in digital advertising with the

expectation that their campaigns are being delivered and seen by their target demo, in geography, with the intendedreach and frequency, in a brand safe environment.

To better understand the current state of display ad delivery online, comScore conducted a U.S.-based charter study inDecember 2011 involving 12 national brands, 3,000 placements, 381,000 site domains and 1.7 billion ad impressions.Across all charter campaigns measured, 31 percent were delivered but never seen by a consumer, 4 percent weredelivered outside the desired geography and 72 percent of campaigns had at least some ads running next to contentdeemed “not brand safe” by the advertiser.

These findings, which are surprising to many, shed light on the need for greater accountability and transparency in thedigital advertising delivery market. In 2012, we’ll likely see far greater adoption of tools that help to validate ad deliveryacross a variety of key dimensions, such as visibility, audience targeting, geographic delivery, brand safety and fraud.These tools will allow advertisers to course-correct while a campaign is in-flight, thus helping to ensure ads aredelivered to their intended audience and that they actually have the chance to make an impact. Inherently, this will allowfor more confidence in this medium as an advertising channel and better overall advertising ROI. Ultimately, this type ofvalidation will help digital reach its full potential.

A separate Canada-based charter study is currently in progress with 4 major brands. The goal of the research is toeducate the Canadian market with local insights relating to digital ad delivery and validation.

* Source: IAB Canada, Revenue Survey 2010

Social is quickly moving from a supporting role to a key pillar in




Social is quickly moving from a supporting role to a key pillar inmonetizing digital

Social Media began as a platform to communicate and interact with others locally and globally. It has matured into a

driving force for brands, commerce, social change, idea sharing, news, current events and advertising.

In Canada, Social Media is the #1 category in terms of delivered ad impressions. The power of social led by companieslike Facebook, LinkedIn and Twitter are changing the way that Canadians communicate and share information onlineand offline. Additionally, it is opening a world of opportunity in the way that brands communicate with the market,providing a first-of-its-kind platform for a more engaging and candid conversation with consumers. Overall, SocialNetworking is a prime example of how interactive tools can change society. The power of social, and more so the powerof like, are driving consumer behavior and retail experiences.

The depth of engagement across all ages is significant, and a sign that social remains extremely relevant andsomething to continue to watch in 2012. Social Media’s potential for mass reach and power of persuasion are key

reasons why we see increased advertising opportunity through the use of paid impressions as well as socially-enabledadvertising. Its popularity on mobile devices is further expanding its reach and influence in daily life. The world is gettingmore social by the second, and brands can reap the rewards of this evolving consumer behavior.

Mobile is becoming a major channel for consumption of news




Smartphone adoption is expected to eclipse the 50 percent mark of Canadian mobile subscribers in 2012. As the mobile

audience reaches this significant landmark, amidst the growing level of mobile content consumption with existingsmartphone subscribers, marketers need to recognize mobile as an important channel for advertising and brandpresence.

Specifically, smartphones are beginning to impact the traditional sales funnel. The process of making a purchasingdecision may occur over multiple screens, for example researching products on the smartphone while out and about,before finally making the purchase online or in person. In order for marketers to successfully compete in this multi-dimensional world, they must strategize the best ways to reach consumers at every step of the funnel, which should

now include mobile.

Additionally, it is important to acknowledge that smartphones are becoming a significant part of consumers’ everyday

lives. Not only are they used for voice communication, but Canadians are increasing their usage with data, textmessaging, instant messaging, QR code scanning, shopping and much more. Over the past year we have seenamazing growth in usage on mobile devices as it pertains to: Weather, Online Banking, Social Networking, Retail,Sports, Video Content, E-Mail, News/Information and Deals/Incentives. This points to mobile’s ability to deliver timely

and relevant information to Canadians at the power of their finger tips. Consumer usage in all age groups are evolving,and it is essential that carriers, content providers, agencies and advertisers ready themselves for even moresophistication with mobile among the Canadian population in 2012. Whether through mobile advertising, mobile-enabledwebsites or mobile applications, it is going to become critical that marketers ensure they have a presence in the mobilearena in order to stay competitive.

Mobile is becoming a major channel for consumption of news,information and entertainment, as well as an agent for e-commerce




About comScore, Inc.

comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world and preferred source of

digital business analytics. comScore helps its clients better understand, leverage and profit from the rapidly

evolving digital marketing landscape by providing data, analytics and on-demand software solutions for the

measurement of online ads and audiences, media planning, website analytics, advertising effectiveness,

copy-testing, social media, search, video, mobile, cross-media, e-commerce, and a broad variety of

emerging forms of digital consumer behavior. comScore services, which now include the product suites of

recent acquisitions AdXpose, Nedstat, Nexius XPlore, ARSGroup and Certifica, are used by more than 1,800

clients around the world, including global leaders such as AOL, Baidu, BBC, Best Buy, Carat, Deutsche

Bank, ESPN, France Telecom, Financial Times, Fox, Microsoft, MediaCorp, Nestle, Starcom, Terra Networks,

Universal McCann, Verizon Services Group, ViaMichelin and Yahoo!.

For more information, please visit www.comscore.com

http://www.comscore.com/

http://www.comscore.com/



Kevin DuongAnalyst, cMM Canada

For further information, please contact:

Kevin DuongcomScore, Inc.

[email protected] +1 416 646 9981




Canada's Digital Future in Focus

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