The Entrepreneurial Media Company

10.26.11

Content is Everywhere and Anywhere

Accessibility of digital content through the technology evolution is driving increased
content consumption

but it is also leading to severe audience

fragmentation

Multi-Tasking Has Increased Daily Media Consumption

3 *Source: e-marketer

Lions Share of Video Viewing is Still on TV

Monthly Time Spent TV at Home Online Video Mobile Video

153 Hours, 47 Mins

4

3 Hours, 22 Mins

3 Hours, 37 Mins

Digital Advertising Has Grown to Over $30 Billion

$30+ billion

2004
1994

2012

Its More Complicated Than Ever

US Advertisers are Spending their Dollars in Paid Search

2012 Online Ad Spend Forecast
Mobile, $1.23 Social, $1.33 Streaming Radio, $0.32

Video, $4.21 Paid Search, $13.93 Classifieds, $3.65

= $30 billion
Display, $5.50

Mobile and social media spend to grow the most

7

Source: eMarketer, October 2011

But Consumers are Spending their Time in Social Media

Watching videos online continue to grow
Social Networking Online Gaming Emailing Portals Intant Messaging Videos/movies Search
8

30% 13%

-36% -25% -18% 10% 3%

2010 2009

0%

5%

10%

15%

20%

25%

Now, Were Seeing Shifts Dollars Going Into the Social Arena
In 2011, Facebook comprised 6% of total US online ad spend ($2B in revenue)

Facebook remains the largest social network in the US

64% of Adults 21-34 visit Facebook everyday
9

Over 200 million consumers are on Twitter

There are over 250 million tweets posted each day

Google+ launched in mid-2011 and has over 40 million users

In December, Google+ will open up to Businesses

Source: eMarketer, Sept 2011

3 Additional Digital Trends for Marketers

Video

Mobile

Search

10

Video Will Continue to Grow as More Devices Become Available

71% of internet users are watching videos
PCs Mobile

Connected TVs

Tablets

11

Source: eMarketer, 2011

Consumers are Increasing Time Spent with Mobile Devices

Mobile is fastest growing channel - Mobile internet usage will surpass PC/laptop internet usage by 2014 Consumers are utilizing their mobile devices for more of their daily internet routines: email, news, social networking, sports, weather, banking, etc 54% of GenY & 47% of GenX are currently accessing Social Media websites via Mobile devices

12

Source: eMarketer, comScore Aug 2011

Mobile usage will only increase with new devices in market

Currently mobile display is the format leader but is projected to fall behind search and video by 2014 Similar to the trends in digital video, mobile video is the fastest growing mobile ad format Location based mobile ads will become focus of mobile ad campaigns as they will provide greater ROI and POS opportunities Becoming the primary tool to access social media

iPad sales topped 25MM through beginning of June Business, shopping and gaming are the top 3 most common tablet activities Tablet users are open to video content. One third regularly watch the video commercial that often plays before other video content Tablet users are more likely to search online for products and services. 43% of tablet owners regularly search for product information and comparison shop

Emailing and Social Networking are top activities on a mobile device

Tablets mirror the demographics of the early adopters

Younger males with above average income - In August 2011, 54.7% of all tablet owners were male Adults 25-34 accounted for the largest share of tablet owners at 29.3% of the entire audience, while those age 35-44 accounted for 21.6 percent

Search is the First Place Consumers Look for Brands

Paid search makes up the bulk of US digital spending (46%) 82% of paid search dollars spent on Google YouTube is the second largest search engine behind Google Typically used for direct response campaigns though increasing number of advertisers using paid search for branding
16 Source: eMarketer, Oct 2011

E-Commerce

Total e-commerce spending continues to recover strongly from the recession, posting a +12% gain Y/Y
U.S. e-Commerce Dollar Sales Growth ($ Billions)

18

Source: comScore e-Commerce Measurement

E-Commerce growth significantly exceeds the growth of total retail, indicating that consumers continue to shift from retail to online
Quarterly e-Commerce Sales Growth vs. YA

19

Source: comScore e-Commerce Measurement

E-Commerce share of all consumer sales continues to grow, with almost one in every ten discretionary dollars spent online
e-Commerce Share of Corresponding Consumer Spending*

20

Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail

Beginning with Q4 2009, e-Commerce dollar sales have seen positive gains Y/Y for seven straight quarters
e-Commerce Dollar Sales ($ Billions)

21

Source: comScore e-Commerce Measurement