The Digital World in Focus

Gian Fulgoni Executive Chairman comScore, Inc.

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comScore is a leading internet technology company that provides Data & Analytics for a Digital World

NASDAQ Clients

SCOR 2,100+ Worldwide

Employees
Headquarters Global Coverage Big Data

1,000+
Reston, Virginia, USA Measurement from 172 Countries; 44 Markets Reported Over 1.5 Trillion Digital Interactions Captured Monthly
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V0113

Data sourced from comScores global panel of 2 million Internet users

2 Million Person Panel 360View of Person Behavior

PERSON-Centric Panel with WEBSITE-Census Measurement

Online & Offline Buying Transactions Media & Video Consumption

Web Visiting & Search Behavior

Online Advertising Exposure Advertising Effectiveness Demographics, Lifestyles & Attitudes

PANEL

CENSUS

PANEL

Mobile Internet Usage & Behavior

Unified Digital Measurement (UDM)

Patent-Pending Methodology 1 Million Domains Participating
Adopted by 90% of Top 100 U.S. Media Properties

Plus 5 Million TV Set Top Boxes for 3-Screen Measurement

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V0411

Topics for Today Global Overview

Internet User Trends

Top Online Properties

Social Media Search Online Video Mobile Multi-Platform

Lessons Learned About Digital Advertising

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#FutureinFocus

GLOBAL OVERVIEW

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Distribution of Worldwide Internet Audience The U.S. is no Longer the Centre of the Online Universe

34%
Outside US Middle East - Africa 9% North America 14% Latin America 8% Asia Pacific 42%

87%
Outside US

66%

Europe 27%

13%
1996 2012

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Source: comScore MMX, December 2012, Worldwide 15+,

Online Desktop Audience Across the Globe China Comprises 22% of Global Audience Brazil and India Post Highest Growth
351.2 Indias internet audience grew 25% since July 2012, overtaking Japan as the worlds 3rd largest internet audience

Total Monthly Unique Visitors (000)

196.3

Brazils web population posted the highest growth worldwide, increasing by 41% since July 2012

78.3 73.7

65.5 64.3

53.0

42.6 39.2

29.5 25.6 24.7 23.9 22.8 20.0 16.8 15.2 14.5

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Source: comScore MMX, December 2012, Europe 15+

Time Spent and Growth Across Regions Asia Pacific is Largest and Still Growing, Lat Am has Highest Percent Growth
Monthly Hours per Visitor

35.9 25.8 25.4 21.0

Global Average: 24.5 Hours a Month

17.6

North America
+6% Monthly Unique Visitors (MM) 617 655

Europe

Latin America

Asia Pacific

Middle East - Africa

+5% 399 419 +4% 213 222 +13% 134 152 --134 134 Jul-12 Jul-13

Asia Pacific

Europe

North America

Latin America

Middle East Africa

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Source: comScore MMX, July 2012 and July 2013, Worldwide 15+,

Engagement Across Global Audiences

Heavy Users Not Only in Europe and North America; Emerging Markets Post High Usage Too
Italy United States United Kingdom Canada Brazil Vietnam Turkey France Argentina Israel Taiwan Finland Spain Netherlands Poland Thailand Chile China Hong Kong Russian Federation 46.9 36.3 34.8 33.1 32.1 29.3 28.3 27.4 26.4 25.9 24.7 24.7 24.6 24.5 24.4 24.3 23.7 23.6 23.0 22.7

Average Monthly Hours per Visitor

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Source: comScore MMX, July 2013

Established Online Audiences in North America, Europe Skew Older 60 percent of Latin American Web Audience is Under 35
Persons: 15-24 Persons: 45-54 Persons: 25-34 Persons: 55+ Persons: 35-44

WW

26%

26%

21%

14%

13%

% of Online Population

Asia Pacific

28%

30%

23%

11%

8%

Europe

21%

24%

21%

17%

16%

North America

21%

18%

18%

18%

26%

Latin America

32%

28%

20%

12%

8%

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Internet Audience 15+ accessing Internet from a Home or Work Desktop Source: comScore Media Metrix, July 2013

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Women Spend Less Time Online than Men in All Regions Percent Difference in Usage is Largest in Lat Am, Europe
Males 15+ Females 15+ Average Monthly Hours per Visitor 37.6 34.3 25.3 27.2 27.0 24.3 21.5 20.4 23.8

23.7

WW

Asia Pacific

Europe

North America

Latin America

Female Share of Internet Population

47%

45%

49%

51%

49%

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Internet Audience 15+ accessing Internet from a Home or Work Desktop Source: comScore Media Metrix, July 2013

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Males 35-44 are Heaviest Users Among Age/Gender Groups Among Women, 45-54 year-olds are the Heaviest Desktop Internet Users

Average Monthly Hours Online per User

26.4 25.3

25.1

25.3 24.9 23.8

24.0
23.5 22.6

24.3

Males
15-24 25-34 35-44 45-54 55

Females

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Internet Audience 15+ accessing Internet from a Home or Work Desktop Source: comScore Media Metrix, July 2013, Worldwide

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TOP ONLINE PROPERTIES

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Top Global Web Properties

Unique Visitors (000) Google Sites Microsoft Sites Facebook Yahoo! Sites Wikimedia Foundation Sites Amazon Sites Baidu.com Inc. TENCENT Inc. Minutes per Visitor

1,208,800
877,967 796,943 724,542 492,107 403,717 358,243 341,391 12.1 22.0 72.1 128.5 56.1

219.3

362.1

247.0

Alibaba.com Corporation
Sohu.com Inc.

317,744
317,645 32.4

128.6

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Internet Audience 15+ accessing Internet from a Home or Work Desktop Source: comScore Media Metrix, July 2013

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SOCIAL MEDIA

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Most Avid Users of Desktop-based Social Networking in Latin America Lowest Reach and Usage of Category in Asia Pacific
Monthly Reach of Social Networking Average Monthly Time Spent on Social Networking (Hours)

Worldwide

79.5% 71.9%

5.6 2.4 8.1 5.4

Asia Pacific

Europe

83.3%

North America

88.0% 94.0% 74.4%

Latin America

9.0
7.0
Internet Audience 15+ accessing Internet from a Home or Work Desktop Source: comScore Media Metrix, July 2013

Middle East-Africa

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Virtually All Time Social Networking in Latin America is Spent on Facebook

Facebook Share of Total Minutes Spent on Social Networking By Region

99%

80%
69% 69%

87%

94%

WorldWide

Europe

Latin America

Asia Pacific

North America

Middle East - Africa

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Share of [M]FACEBOOK.COM Minutes vs. Social Networking Category Internet Audience 15+ accessing Internet from a Home or Work Desktop Source: comScore Media Metrix, July 2013

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#FutureinFocus

SEARCH

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Google Captures Lions Share of Searches in All Markets but Asia, Where Baidu Ranks on Par With Google
Total Searches 62,794 (MM)
50,425

34,063 21,136 75% Google Share of Searches 34%

67%

88%

9,361 89%

Asia Pacific

Europe

North America

Latin America
All Other

Middle East - Africa

Google Sites

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Source: comScore, qSearch, December 2012, UK 6+

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Google Captures 86% of the EU Search Engine Market

10% Share of Monthly Searches

2% 1% 1%

Google Search Yandex Web Search

86%

Mail.Ru - Search Bing Ask Network

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Source: comScore, qSearch, December 2012, Europe 15+

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Google, Baidu Near Even in Asia Pacific Search Engine Market

8% 9% Share of Monthly Searches

Google Sites

39%

Baidu.com Inc. Alibaba.com Corporation Qihoo.com Sites

10%

34%

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Source: comScore, qSearch, July 2013, Asia Pacific15+

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Turkey Leads The Way With Most Searches per Searcher Worldwide Average for July 2013 is 110 Searches per Searcher

Searches Per Searcher Per Month

Monthly Searches per Searcher
201 173 162 160 155 155 149 147 146 145 130 127 124 123 123 121 117 115 115 111

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Source: comScore, qSearch, July 2013

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#FutureinFocus

ONLINE VIDEO

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Online Video Reaches 1.3 Billion Viewers Worldwide on a monthly basis Average Consumption Shows some Seasonality, up 13% YOY
1,360,000 1,340,000 1,320,000 1,300,000 1,280,000 1,260,000 1,240,000 1,220,000 1,200,000 July 2012
210 190 170 150 130 110 90 70 50 July 2012 Average Videos per Viewer July 2013 Online Video Growth on Desktop 7%

Total Unique Viewers (000) July 2013

Videos per Viewer

13%

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Source: comScore Video Metrix, July 2012 to July 2013, Worldwide 15+

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Google (i.e. YouTube) Still King of Online Video

YouTube accounts for 99.7% of Googles video viewers

Top 10 Destinations for Online Videos Total Monthly Viewers

Videos per Viewer

794,919

Google Sites
Facebook Youku Inc. VEVO TENCENT Inc. Viacom Digital Sohu.com Inc. Tudou Sites BrightRoll Platform IQIYI.COM 319,873 268,072

100.5 14.0 20.0

248,681

15.1
231,916

15.0
223,317

8.8
214,268

13.3
213,688

12.9
192,479

11.5
170,171 (000)

15.3

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Source: comScore Video Metrix, July 2013, Worldwide 15+

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82 MILLION AMERICANS
ARE GOING TO WATCH

1.6 BILLION VIDEOS

TODAY
comScore, Inc. Proprietary. Source: comScore Video Metrix, December 2012

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NUMBER OF VIDEOS WATCHED ONLINE IN U.S.

+800%
OVER LAST 6 YEARS
comScore, Inc. Proprietary. Source: comScore Video Metrix, December 2012

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Huge Upside: Time spent watching online video in the U.S. is equivalent to only 5% of the time spent watching TV. Will this increase rapidly because of viewing patterns of younger segments? Monthly Hours (Millions) Spent Watching TV vs. Online Video

44,999

Time Spent Watching Online Video Equivalent to 5% of TV

2,365
TV (Live + Time-Shifted) Online Video
SOURCE: TV: Nielsen Cross Platform Report, Q2 2013 Online Video: comScore Video Metrix, US, June 2013
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#FutureinFocus

MOBILE LANDSCAPE

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Size of Global Mobile Audiences & Smartphone Penetration

Smartphone Users United States Japan Germany UK Italy France Spain
Total Mobile Audience (MM)

60% 36% 59% 70% 59% 59% 74%

61.0 49.5 48.0 102.7

238.5

47.5 36.0

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Source: comScore MobiLens, 3 month average ending July 2013

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The Whos Who of the EU5 Smartphone Market Leading Smartphone Handset Manufacturers and Operating Systems

Top 5 Smartphone Handset Manufacturers (OEM)

Top 5 Smartphone Operating System (OS)

Samsung Apple Nokia

15%

5% 3%

Google Apple

7%
7% 9% 32% 15%

Symbian

50%
RIM Microsoft

HTC RIM

16%
Other

21%

20%

Other

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Source: comScore MobiLens, 3 month average ending December 2012, EU5, 13+

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The Whos Who of the U.S. Smartphone Market Leading Smartphone Handset Manufacturers and Platforms

Top Smartphone Handset Manufacturers (OEM) 2% 5% 7% 7% 44% 9%

Top Smartphone Operating System (OS)

Apple Samsung HTC Motorola LG BlackBerry Nokia

0% 4%3%

Android

Apple

41%

52%

BlackBerry

Microsoft

26%

Symbian

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Source: comScore MobiLens, 3 month average ending July 2013, US, 13+

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MULTI-PLATFORM USAGE IN THE U.S.

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The Brave New Digital World: Adoption of Smartphones & Tablets has dramatically changed the digital media landscape
160,000,000

Number of Device Owners (Smartphone and Tablet)

140,000,000

143 MILLION
Number of Device Owners +25% vs. YA

120,000,000

100,000,000

80,000,000

71 MILLION
+55% Vs. YA

60,000,000

40,000,000

20,000,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

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Source: comScore MobiLens/TabLens 3 month average ending June 2013

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Devices Play Different Roles Throughout the Day

Tablets
Share of Device Page Traffic on a Typical Workday

PCs dominate
working hours

popular at night

Mobile brightens the commute

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Source: comScore Device Essentials, Monday, 21st January 2013, US UK

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Smartphones and Tablets have driven a doubling of time spent with digital media over past 3 years. In total, no evidence of desktop cannibalization
Total U.S. Digital Media Time by Platform (Billions Minutes)

+93%
100

Tablet
+370% Phone

381 81 477

416

+15% Desktop

May 2010 U.S.

May 2013 U.S.

Source: comScore Media Metrix Multi-Platform

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Desktop consumption of Weather content has been cannibalized by extensive phone use; while engagement with Sports content has seen strong growth across all platforms
U.S. Time Spent in Minutes (Billions) by Platform: Desktop, Smartphone & Tablet
Source: comScore Media Metrix Multi-Platform, U.S., February 2013

Sports Category
Tablet

Weather Category

1.1 0.4 3.5

Smartphone

0.4

Tablet

2.1
Smartphone

0.7
3.2 7.8 6.5
Desktop Desktop

1.7

Feb-10

Feb-13

Feb-10

Feb-13

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Billion Dollar

Research Lab:

A Look into the Future

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More Screens = More Time Spent on Every Device

Average Time Spent Per Day Following Olympics 8hr 29min
47 min

6hr 50min
51 min

40 min

55 min

Tablet Mobile PC/Laptop

5hr 18min 4hr 19min

50 min

59 min

6hr 7min 4hr 19min 4hr 28min 5hr

TV

TVTV Only

Only

TV + PC/Laptop TV + Only PC/Laptop

TV + PC/Laptop + TV + PC/Laptop + TV + TV + Mobile Only+ Mobile + Tablet PC/Laptop PC/Laptop +

Mobile

Mobile + Tablet
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The Internet is not yet displacing TV in the U.S.: Time spent online using desktop and mobile devices equals only onethird of time spent watching TV
U.S. Monthly Total Hours Spent in Q1 2013 TV vs. Multi-Platform Internet Use (Millions of Hours)

48,361

16,466

TV Internet (Desktop + Mobile)

Note: TV includes Live and Timeshifted viewing. Internet includes Desktop, Smartphone and Tablet consumption.
SOURCE TV: Nielsen Cross Platform Report, US, Q1 2013
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SOURCE Internet: comScore Media Metrix Multi-Platform, US, Q1 2013

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#FutureinFocus

DIGITAL ADVERTISING: LESSONS LEARNED

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Four Key Challenges with All Digital Advertising

Viewability

Targeting

Brand Safety

Fraud

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The Cookie Challenge

Branding advertisers on TV are accustomed to audience guarantees and expect the same in digital Accuracy of cookie-based digital media plan delivery is problematic

Cookie Deletion

Cookies Are Not People

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Source: comScore 2011

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Viewability: In-view rates are low

comScore vCE Benchmarks (2013)
Real-World Scenario

1000s campaigns, 290 billion impressions Mix of advertisers

Mix of publishers

NOT IN-VIEW

54%

46%

IN-VIEW

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vCE Charter Study (2012)

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Premium Publishers Boast Higher Average In-View Rates than Ad Networks/Exchanges

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Huge return from increasing viewability: A 40% increase in viewability drives a 75% increase in sales lift for Kelloggs

Digital Sales Lift Index

Sales Lift Indexed to 100 for Less Than 50% Viewability of Impressions

175 100

Less Than 50% Viewability

At Least 70% Viewability

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40% improvement in viewability generating 75% increase in sales impact

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Using comScore vCE, campaign delivery can be monitored and optimized in-flight. In the example below, Publisher 1 is delivering results superior to Publishers 2 & 3 and would receive a greater share of ad spend In-Flight Campaign Optimization by Publisher Based on Cost and Effectiveness Opportunity to optimize - budgets follow performance Multiple publishers, each with high reach potential Wide variance in performance observed

Brand X - Q3/Q4
Publisher Avg Frequency Impressions in Target Impressions in View Lift in Awareness CPM

1 2 3

3.5 3.0 8.4

24.5% 16.9% 23.5%

83% 91% 71%

5.74 0.55 0

$2.44 $9.08 $8.62

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Real-Time: In-flight optimization of Reach, Frequency and Targeting is driving rapid gains in marketing ROI for Kelloggs

Increase in ROI from Improved In-Flight Targeting Brand 1 ROI Brand 2 ROI

5X
ROI
Year 1

6X 3X ROI

2X

Year 2

1H Year 3

Year 1

Year 2

1H Year 3

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Key Takeaways
Internet use surging on a global basis and the U.S. is no longer center of the digital world. China now has worlds largest desktop user base. Google, Microsoft and Facebook are the top three global properties Facebook dominates social networking on a global basis Google dominates search in all regions with the exception of Asia-Pac 1.3 billion people around the world watch online video on a monthly basis, with strong growth occurring in number of viewers and videos viewed. YouTube dominates With the availability of smartphones and tablets, the multi-platform omnivore has emerged. But, its not a zero-sum game: More devices result in more time on all devices, including TV In-flight optimization of digital media plans in terms of reach, frequency, targeting and viewability can dramatically increase ROI
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Thank You! The Digital World in Focus

For more information about comScore, please email us at:

learnmore@comscore.com

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