Metrics Measuring the Big Picture comScore Networks, Inc.

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Metrics Measuring the Big PicturecomScore
Networks, Inc.
MEASURING THE DIGITAL WORLD

• February 22, 2007

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Metrics Measuring the Big Picture

• Introduce comScore
• Briefly review data sources / overall
  capabilities
• Convey key 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
MeasurementAnyone, Anywhere, Any Time, Any Device
The digital world is not place or time dependent
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What We Do.

• comScore measures the continuous online
  activityof 2 million people enabling us to
  measure theironline and offline consumer
  behavior
• The consumer panel is a representative cross
  sectionof the US Population and worldwide
  regions and countries
• Permission to survey panelists Permission to
  matchto 3rd party databases Addition of other
  offlinedata through partnerships
• Portfolio of products and services that
  includesyndicated audience measurement, tracking
  studies,ad hoc analysis and custom panels

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comScore Measures the Digital WorldWho, What,
Where, Why?
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Advising Hundreds of Leading Businesses(partial
list)
Telecom
Financial
Retail
Travel
CPG
Pharma
Technology
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Advising Hundreds of Leading Businesses (partial
list)
Media
Agencies
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Online Population US vs. Rest of World
Online Population Growth Over Time
Online Population by Geography
Rest of the World
Total
US
US

• With approximately 740M people online today, Y/Y
  growth internationally is 5.5X US (2.3 vs.
  12.9)
• 565M (76) are located outside the US, but ten
  years ago, US accounted for 66 of the total

Source comScore World Metrix, December 2006
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Unique Visitors to Top Properties
9 of the top 10 Global Properties attract a
majority of Unique Visitors from outside the US
Source comScore World Metrix, December 2006
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Other Countries Catching Up to the US
Internet Users Age 15 (MM)
China, Japan, India and Korea combined represent
nearly 25 of the total worldwide online
population 22 larger than the US
Source comScore World Metrix December 2006
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US Internet Activity

• In December 2006
• 174 million Americans used the Internet
• Average user was online 22 days in the month, for
  a total of 29 hours, and viewed 2,589 pages
• 22 of total online duration was spent at
  communications sites
• Users spent an average of 6 hours with Email and
  5 hours on IM alone
• 84 of Internet visitors conducted at least one
  search
• Average searcher conducted 41 searches
• Total spending online in 2006 was 171 billion,
  up 20 from 2005
• 46 of online population bought online in
  December 2006
• Online non-travel (retail) spending totaled 102
  billion in 2006, an increase of 24 from 2005
• Average Internet buyer spent 224 in December
  2006

Source comScore Media Metrix and e-Commerce
Reports, December 2006
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Key Themes Broadband Driving Growth
Household Broadband Penetration
Connection Speed Metrics
Dec 05
Dec 06
Streaming
Searches (MM)
eCommerce (BN)
30
20
Travel
Non-Travel
Dec 05
Dec 06
Dec 05
Dec 06
Dec 05
Dec 06
Source comScore Networks, December 2006
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US Advertising Spend by Medium
Advertisers currently spend far more per
household on less efficient media such as
newspapers
Source Morgan Stanley Research
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The Internet is the Preferred Source of
Information
Percent Preference By Medium
Source comScore Survey among US primary grocery
shoppers in October 2005, base size 916
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Internet Advertising Trends 2005-2006
Internet Advertising Revenues by Ad Format
Internet Advertising Revenues (B)
E-mail
Leads/Referrals
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Classified
Display Ads
Search
2005
2006
Full-year 2006 numbers are estimated using 2006
first-half numbers
Internet ad revenues posted strong growth in 2005
and 2006, and this looks set to continue
Source IAB Internet Advertising Revenue Report,
2005 Full-Year Results, 2006 First Half Results
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Broadband Penetration is Growing Faster than
Total US Internet Users
174 Million US Internet Users 73 Home Broadband
Penetration
Source comScore Media Metrix, December 2006
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Portal Share of Usage Decline
Total US
Narrowband
Broadband
Total Minutes Growth
-13
3
6
Portal share of total minutes
Despite a growth in overall Portal engagement,
Portals share of total Internet minutes declined
Source comScore Media Metrix, December 2006
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US Portal Usage by Demographic
Percent of Time spent on Portals
While the percent of time spent on portals has
increased slightly for users 18-55, it has
decreased sharply for users under 18.
3
2
2
-11
-5
-2
Fragmentation of site visitation across
younger audience
Source comScore Media Metrix, December 2006
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Social Networking UGC Explosion
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Social Networking Levels of Engagement
UV Reach
MySpace and YouTube in particular have attained
the highest Reach gains within a year
Source comScore Media Metrix, December 2006
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Younger Demos Favor Ads on UGC Sites
How do you feel seeing/hearing advertising for
any product or service on UGC sites?
Advertising is Trustworthy
Advertising is Useful
I am Receptive
Source comScore Networks Survey
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Broadband Users are Valuable

• In December 2006, Broadband Users
• Spent 23 more online
• Were online for 2.2x as long
• Executed 2x as many searches
• Consumed 2.6x more pages
• Visited the internet twice as often

Source comScore Marketing Solutions, December
2006 McKinsey Quarterly
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73 of Users Streamed in December 06
Total US Internet Users (MM)
Internet Users who Streamed
Streaming includes flash data starting July 2006
In December 2006, almost 128 million people
streamed- about 73 of all Internet users
Source comScore Video Metrix, December 2006
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Streaming Engagement by Location
Number of Internet Video Streamers (Millions)
of Internet Users Who Stream Video
Avg. Video Streaming Minutes per User
The home location features the most streamers,
but the university location has the longest
duration per streamer (over 2 hours per)
Source comScore Streaming Report, December
2006 Panel comScore XPC Streaming includes
progressive downloads
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Streaming is Represented Across All Demographic
Segments
Total Internet
Video Streaming
Index to TI
51
51
100
All Females
49
49
100
All Males
42
42
100
Females 18
15
15
100
Females 18-34
24
25
104
Females 25-49
28
29
104
Females 25-54
7
7
100
Females 55
40
103
41
Males 18
108
13
14
Males 18-34
22
105
23
Males 25-49
26
108
28
Males 25-54
8
100
8
Males 55
82
102
84
Persons 18
28
104
29
Persons 18-34
46
107
49
Persons 25-49
54
106
57
Persons 25-54
16
94
15
Persons 55
Source comScore Streaming Report, December 2006
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Streaming Engagement By Content Category

• Multimedia, which includes sites like YouTube and
  MTV, appears to be the most popular among
  streamers
• About 1.6 billion streams are served in the
  Multimedia category by over 85 million streamers
• Users are viewing these streams for almost 45
  minutes each!

Source comScore Streaming Report, December 2006
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Select Video Streaming Entities
Source comScore Streaming Report, December
2006 Panel comScore XPC Streaming includes
progressive downloads
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Online Radio Listening Habits
Over 2.5 million people listened to Yahoo!
Launchcast Radio for over 9.5 hrs during an
average week in December
Persons 12, Monday-Sunday, 6amMidnight 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, December 2006
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Synergy Between Search Display Ads
The Internets 1-2 Punch Search Display
Synergy Between Search Display Ads
Net Impact 54
Net Impact 17
95 confidence
80 confidence
Source Yahoo! Press Release, October 2006
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Todays 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
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Thank You!
Anthony Psacharopoulos Senior Vice
President comScore Networks, Inc. 703.438.2355 aps
acharopoulos_at_comscore.com