A SUPPLEMENT TO

Published April 17, 2006 © Copyright 2006 Crain Communications Inc. Interactive Marketing & Media | Advertising Age | 3 INTERACTIVE MARKETING AND MEDIA DATA ON THE DIGITAL WORLD

WELCOME TO OUR FIRST ever Interactive Fact Pack. Wait. Did I just say first? Seems impossible, but it’s true. The reason it seems impossible is because Advertising Age has been covering interactive marketing and media since the early ‘90s, when we introduced a weekly section in our print publi- cation and went online ourselves, first on and then, of course, the Web. This latest product expands our commitment to being the leading source of news, infor- mation and data in this vibrant area. There’s a lot here to interact with. The stories these numbers tell are as fascinat- ing as the development of this media and marketing channel. You’ll learn, among other things, that nearly four of 10 U.S. households already have broadband access. And that reading blogs is one of the most popular activities among online users. It’s no surprise that search is a robust growth area, but the fact that it will account for 41.5% of 2006’s online spending is a shocker. Its growth rate will likely slow, but it will get a bigger share of marketers’ dollars. If you had any doubts about the increasing importance of social networking and user-generated content, note that the popular (and controversial) MySpace is already among the top 10 most-trafficked ONLINE AD SPENDING sites. RSS content is small, but growing, Data from eMarketer, which benchmarks projec- and another example of users’ desire to tions against Interactive Advertising Bureau/ PricewaterhouseCoopers data, for which the last control their online experience. There’s full year measured was 2005. Dollars in billions. not yet much real data on other hot, PROJECTED AS % emerging areas such as video on demand FORMAT 2006 TOTAL and user-generated comment, but look for it in future fact packs. Such change is Paid search $6.47 41.5 the nature of this medium. Check out in- Rich media 1.79 11.5 game advertising: it’s now pegged at just $173 million but expected to top half-a- Classified 2.73 17.5 billion dollars by 2009. Display ads 2.89 18.5 It’s important to note that the interac- .62 4.0 tive market is monitored by dozens of Sponsorships 0 companies, trade groups and publications. Referrals 0.78 5.0 Since their methodologies vary, industry .16 1.0 totals often do as well. But in total this E-mail 0 Fact Pack will give you the clearest pic- Slotting fees 0.16 1.0 ture you can get. Dive in. Total 15.60 100.0 —Scott Donaton 4 | Advertising Age | FactPack CONTENTS Overview The interactive channels marketers are using, and plan to use 6 Web sites The most unique visitors and the highest ad revenue 8 Online display advertising The top 25 marketers and the top categories 22 Consumer Internet usage Internet penetration, habits and consumer spending 28 Classified The top classified sites and recruitment sites by share of market 36 Search market share and the top search terms 38 Mobile Mobile device habits, WAP subscribers by carrier and handset share 42 E-mail What marketers are spending and what blocked e-mail costs 44 Games The top 5 games and how marketers plan to spend 46 RSS Users of Really Simple Syndication visit news sites more often 47 Awards & top agencies Interactive awards, the top 10 interactive agencies and top ad networks 48 Miscellaneous PC market share and digital player share 50

TO REACH US By e-mail: This report was compiled by Advertising Age in Chicago. Contact [email protected]; Postal mail: Advertising Age , 711 Third Ave., New York, N.Y. 10017; Phone: (212) 210-0100. Subscription and print sin- gle copy sales (888) 288-5900; Advertising (212) 210-0159; Library services (312) 649-5476. DataCenter staff: R. Craig Endicott, Kevin Brown, Scott MacDonald, Mark Schumann, Mike Ryan, Maureen Morrison. 6 | Advertising Age | FactPack OVERVIEW A World of Success FT.com’s US visitors are worldly and MARKETERS USING INTERACTIVE successful. And hard to beat: Source: Forrester Research’s fourth quarter 2005 Marketing Panel Online Study. More than 230 mar- keters were asked if they were currently using, piloting or expected to direct each of these channels during the next 12 months. • Highest US Income PERCENT RESPONDING BY MARKETER CATEGORY • More US Car Buyers CONSUMER MEDIA & FINANCIAL EQUIPMENT CHANNEL PRODUCTS COMMUNICATIONS RETAIL SERVICES & TECH • More US Finance/Banking tch.com, NYT.com, Yahoo! Finance. Yahoo! tch.com, NYT.com, Rich media e-mails 86% 76% 71% 51% 59% Contextual targeting 71 87 71 60 54 osition of those in the banking/finance industry Rich media display ads 71 81 60 63 51 Blogs/social networks 69 70 54 28 51 Behavioral targeting 63 85 83 72 56 RSS 63 65 37 37 38 Mobile marketing 46 70 34 31 28 Advergames/in-game ads 43 41 31 22 8 PLANNED SPENDING ON EMERGING AD TACTICS Source: MarketingSherpa as cited by eMarketer, from a study of ad:tech attendees, January 2006. PERCENT RESPONDING DEFINITELY MORE THAN A MARKETING TACTIC SPENDING ON YEAR OUT Adding RSS feeds 40% 19% In-house blogs 35 18 Ads on third party blogs/blog networks 30 19 Video ads 27 26 Ads in RSS feeds 21 27 Mobile/wireless 20 32 In-house podcasts 18 31 A global view for a global world. Sponsoring podcasts 14 32 For further information on how to reach this influential audience, Product placement in video games 10 36

please call Lucy Gould at 212-641-6646 Highest average HHI, highest composition of those who "will definitely purchase" a car/truck in the next 6 months, highest comp among competitive Forbes.com, set, Economist.com, which Business includes; Week FT.com, Online, MarketWa WSJ.com, CNNMoney.com, Source: @Plan Spring 2006 8 | Advertising Age | FactPack WEB SITES Here. There. Everywhere. TOP FIVE PORTAL SITE COS. BY UNIQUE VISITORS Ranking based on data from comScore Media Metrix. Sales and earnings from public documents. Ad spending is measured media ad spending from TNS Media Intellience.

Yahoo yahoo.com; Sunnyvale, Calif. 120 million unique visitors a month averaged 244.9 minutes on the sites. NUMBERS 2005 2004 % CHG EXECUTIVES Even here. Revenue (billions) $5.26 $3.57 47.1 9,816 employees led by Terry S. Semel, chmn, CEO & dir; Jerry Net income (billions) 1.90 0.84125.9Yang, co-founder & chief Yahoo; , co-founder & chief Ad spending (millions) 36.8 55.1 -33.2 Yahoo; TOP MKTG EXEC: Cammie Dunaway, chief mktg officer

Microsoft Corp. msn.com, msnbc.com (joint venture), microsoft.com; Redmond, Wash. 110.8 million unique visitors a month averaged 176 minutes on the sites. NUMBERS 2005 2004 % CHG EXECUTIVES Revenue (billions) $39.79 $36.83 8.0 61,000 employees led by William H. Gates III, chmn; Steven A. Net income (billions) 12.25 8.17 50.0 Ballmer, CEO; TOP MKTG EXEC: Kevin Turner, COO Ad spending (millions) 463.0 485.5 -4.6 ValueClick Media is now the most powerful way to achieve direct response and brand marketing results online. Time Warner .com, cnn.com, multiple media sites; New York 110.4 million unique visitors a month averaged 290.5 minutes on the sites.

NUMBERS 2005 2004 % CHG EXECUTIVES Where your consumers are... Revenue (billions) $43.65 $42.09 3.7 85,000 employees led by Richard D. Parsons, chmn & CEO-Time Warner; Our vast reach provides access to more than two-thirds of the U.S. Internet audience. Net income (billions) 2.91 3.36 -13.4 Jonathan F. Miller, chmn & CEO-AOL; TOP MKTG EXEC: John Partilla, pres- Technology, expertise and custom capabilities allow us to precisely target your audience, Ad spending (millions) 2,102.9 2,047.4 2.7 Time Warner Global Mktg; Joe Redling, chief mktg officer-AOL wherever they may be online.

Where you should be... google.com; Mountain View, Calif. Google No other network offers better direct response and brand marketing solutions or a more 94.6 million unique visitors a month averaged 32.3 minutes on the sites. knowledgeable sales and account management staff to support the success of NUMBERS 2005 2004 % CHG EXECUTIVES advertisers and their agencies. Revenue (billions) $6.14$3.19 92.4 5,680 employees led by Eric E. Schmidt, chmn & CEO; Larry Page, Our new display advertising and lead generation technologies make ValueClick Media Net income (billions) 1.47 0.40 267.2 co-founder & pres-products; Sergey Brin, co-founder & pres-tech; the highest performing and most scalable way to reach consumers online. Ad spending (millions) 8.1 4.6 76.9 TOP MKTG EXEC: Omid Kordestani, sr VP-global sls & bus devel Here. There. Everywhere. eBay .com; San Jose, Calif. But don’t take our word for it. Let our results speak for themselves. 66.6 million unique visitors a month averaged 94.4 minutes on the sites. www.valueclickmedia.com/evenhere NUMBERS 2005 2004 % CHG EXECUTIVES Revenue (billions) $4.55 $3.27 39.2 11,600 employees led by Pierre M. Omidyar, chmn; Margaret C. Net income (billions) 1.08 0.78 39.0 Whitman, pres & CEO; TOP MKTG EXEC: John Donahoe, pres-eBay Marketplace ValueClick Media, a ValueClick, Inc. company Ad spending (millions) 128.9 101.2 27.3 30699 Russell Ranch Road, Suite 250, Westlake Village, CA 91362 818.575.4500 10 | Advertising Age | FactPack

TOP 25 WEB SITES BY UNIQUE VISITORS Source: comScore Media Metrix. Unique visitors in thousands for 166,966,000 total visits in February 2006 versus 160,287,000 visits in February 2005. ComScore defines unique visitors as “the estimated number of different individuals that visited any content of a , a category, a channel, or an appli- cation during the reporting period.” Rankings by category continue on Pages 16 through 21. * Growth is largely attributed to NYTD's acquisition of About.com. Average minutes are per visitor.

% CHG AVERAGE RANK SITE UNIQUE VISITORS VS. 2/05 MINUTES 1 Yahoo sites 120,004 3.5 244.9 2 MSN-Microsoft sites 110,783 0.2 176.0 3 Time Warner Network 110,423 -1.6 290.5 4 Google sites 94,627 27.0 32.3 5 eBay 66,613 7.4 94.4 6 Ask.com 43,030 2.1 19.9 7 sites 42,660 11.0 18.8 8 MySpace 37,349 NA 172.6 9 New York Times Digital * 34,841 322.6 9.7 10 Verizon Communications Corp. 32,058 17.4 16.6 11 Walt Disney Internet Group 31,662 12.0 39.1 12 Weather Channel 27,887 -4.0 10.7 13 CNET sites 26,492 -9.1 17.3 14 Expedia 25,392 11.0 18.4 15 Viacom 25,250 -24.2 59.0 16 United 24,816 108.2 23.6 17 Apple Computer 24,277 58.9 12.6 18 Monster Worldwide 24,050 -14.0 14.9 19 23,443 -16.0 9.3 20 AT&T 22,355 6.6 22.3 21 Vendare Media 22,017 NA 1.9 22 Adobe sites 21,895 57.0 3.1 23 Bank of America 21,047 30.8 33.0 24 Wal-Mart 20,999 9.4 14.7 25 Gorilla Nation Media 20,770 18.0 10.3 Total audience 166,966 4.2 NA 12 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 13

TOP 25 U.S. PARENT WEB SITES BY AD REVENUE TOP 25 U.S. WEB SITES BY AD REVENUE Source: TNS Media Intelligence. Dollars are in millions for calendar 2005 and represent only display Source: TNS Media Intelligence. Dollars are in millions for calendar 2005 and represent only display advertising on more than 2,500 sites. Percent change computed versus 2004 data, not shown. advertising on more than 2,500 sites. Percent change computed versus 2004 data, not shown.

RANK SITE U.S. AD SPENDING % CHANGE RANK SITE (URL IF DIFFERENT) U.S. AD SPENDING % CHANGE 1 Yahoo $1,094.0 -30.8 1 AOL.com $556.0 1.0 2 AOL 902.3 28.6 2 MSN.com 291.7 9.7 3 Microsoft 772.8 -7.4 3 Yahoo.com 275.0 40.5 4 Lycos 218.1 -7.2 4 Yahoo TV coverage (tv.yahoo.com) 205.3 -64.3 5 AT&T 198.2 37.1 5 (sports.yahoo.com) 203.6 -10.8 6 CNET 177.2 12.8 6 AT&T Worldnet (ATT.net) 192.9 39.4 7 167.5 -2.4 7 MSNBC.com 188.2 -21.2 8 Dow Jones Online 149.9 48.5 8 MarketWatch.com 135.9 40.3 9 CNN Interactive 134.6 33.4 9 Excite Lifestyles (lifestyle.excite.com) 134.3 -5.7 10 American Greetings 124.9 15.3 10 Yahoo Health (health.yahoo.com) 105.5 -22.7 11 ABC Internet Group 124.7 -20.9 11 Weather Channel (weather.com) 97.3 36.1 12 About 115.1 59.0 12 ESPN.com 96.3 -12.4 13 News Corp. 105.3 77.1 13 CNET.com 91.1 -6.3 14 ESPN Internet Group 102.7 -11.6 14 ABCNews.com 81.9 -11.2 15 Weather Channel Interactive 97.3 36.1 15 BlueMountainArts.com 78.2 20.8 16 Time Inc. 94.2 36.7 16 New York Times (nytimes.com) 77.0 93.1 17 New York Times 90.6 111.6 17 WashingtonPost.com 70.3 67.4 18 Washington Post 85.9 50.9 18 Gamespy.com 68.7 90.7 19 Flipside 69.3 28.2 19 MSN Games by Zone (zone.msn.com) 63.1 5.1 20 Viacom 60.0 32.8 20 CBS.SportsLine.com 59.6 31.8 21 Morningstar 54.4 71.6 21 Uproar.com 58.8 33.7 22 E.W. Scripps 53.8 72.5 22 CNN.com 55.4 8.9 23 Playboy 50.5 44.9 23 Morningstar.com 54.4 71.6

24 Expedia 49.8 -6.3 24 Lycos Movies Clips (entertainment.lycos.com/movies) 51.1 48.2 25 ZDNet 49.6 39.4 25 Playboy.com 50.5 44.9 Total measured Internet advertising 8,322.7 13.3 Total measured Internet advertising 8,322.7 13.3 14 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 15

TOP 25 WEB SITE CATEGORIES BY AD REVENUE WHERE $8.32 BILLION IS SPENT Source: TNS Media Intelligence for calendar 2005. Ad revenue is in millions. Percent change computed Source: TNS Media Intelligence for calendar 2005. See table on facing page. on 2004 data, not shown. Data is only for display advertising on more than 2,500 U.S. Internet Web sites. *No. 1 is multi-service such as MSN, Yahoo and AOL and No. 10 is just portals and search engines Portals, search such as Ask and About. Categories are from TNS. engines, ISPs 13.6%; $1.13 billion All other RANK TYPE OF SITE U.S. AD SPENDING % CHANGE 55.0%; $4.58 billion 1 Portals, search engines & ISPs: Multi-service* $1,130.3 10.9 News, current events 9.2%; $763 million 2 News & current events 762.7 11.5 3 Business, finance & investing 717.7 33.5 Business, finance 4 General interest/entertainment 582.1 34.0 8.6%; $718 million 5 546.2 12.0 Sports General interest 6 Local news & guides 470.4 67.4 7.0%; $582 million 7 Movies, videos, TV & cable 368.0 -47.0 Sports 6.6%; $546 million 8 Health & fitness 367.1 14.7 9 Computing & technology 322.1 27.0 10 Portals & search engines* 303.5 -11.6 11 Games 296.7 44.6 12 Travel 225.7 27.2 13 Internet service providers 222.5 34.9 14 Automotive 179.0 32.8 15 Cards & screen savers 171.2 16.5 16 Music, broadcasts & radio 165.4 17.0 17 TV stations 133.5 12.6 18 Real estate 104.5 3.6 19 Common cultures/communities 101.6 37.3 20 Names, numbers & mapping 93.6 -12.1 21 Shopping services, guides & alerts 89.2 16.4 22 Special interests/hobbies 87.3 46.0 23 Food 82.2 33.2 24 Shopping 81.4 -5.5 25 Gambling, sweepstakes & lotteries 78.2 31.1 Total 8,322.7 13.3 16 | Advertising Age | FactPack What Should You Know About Online Advertising? TOP 5 SITES IN 15 MAJOR CATEGORIES Source: comScore Media Metrix. Unique visitors in thousands for 166,966,000 total visits in February 2006 versus 160,287,000 visits in February 2005. Rankings continue through Page 21. Categories cho- “At least as sen based on general popularity. RANK SITE UNIQUE VISITORS % CHANGE much as the AUTOMOTIVE competition.” 1 EBay Motors U.S. 9,160 7.4 2 General Motors Corp. 8,000 11.4 3 Ford Motor Co. 6,009 -6.7 is the most comprehensive and 4 MSN Autos 6,000 25.7 up-to-date source of research and statistics 5 Kelley Blue Book Co. 5,270 -9.8 on e-business and online marketing.

Total automotive 47,880 -0.2 Online is changing fast. And if you don’t keep up, you could be left behind. NEWS/RESEARCH The sheer volume of data covering e-business, online marketing and interactive technologies is overwhelm- 1 MSN Money 11,574 10.4 ing. How do you find the specific information you need? 2 Yahoo Finance 8,679 -16.0 No matter how much information you have, there is always the fear. Are you missing something? 3 6,620 -14.0 Dow Jones & Co. Data from different research firms rarely agrees. 4 Forbes 5,997 70.4 Which numbers should you trust? Analyzing and making sense of mountains of data is 5 CNN Money 5,716 -2.8 time-consuming. How do you find the time to think, make smart decisions and act? Total news/research 39,547 -15.7 You can solve these problems. You can spend less effort, less time and far less money and let eMarketer

May 2005

Women Online in the US: CAREER SERVICES AND DEVELOPMENT do the job for you. See how to get smart fast. A Growing Majority Debra Aho Williamson, Senior Analyst [email protected]

Impetus: The Internet may be reaching a tipping point. Females now make up 51.6% of the US online population, and the female majority will become even more pronounced over the next few years, particularly in online shopping and buying.As women, who dominate offline spending, extend that influence online, they will transform content, commerce and marketing.Are marketers, retailers,Web content sites and agencies prepared for the women s Web?

Internet Users in the US, by Gender, 2003-2008 (in Overview millions) Technological, economic and societal shifts are changing the 2003 online demographic mix in the US. Females have grown more 79.9 comfortable with technology and the Internet, and while Look into an eMarketer subscription. 84.4 1 19,705 3.2 women’s earnings still trail men’s, educational and salary 2004 trends suggest that women’s economic flexibility and clout is CareerBuilder 82.3 on the rise.As a result, more females are going online, and 87.8 females will constitute an undeniable majority in the US online 2005 population in the near future. Females have long embraced the 84.2 Internet as a communications medium, and have shown a 91.2 strong interest in online games, health content and music. 2006 Now, adult women, who dominate consumer spending offline, 85.9 are shifting more and more of their shopping online.As the 94.2 female influence grows across the Internet, companies will For a demo, and a free eMarketer Analyst 2007 need to use techniques that appeal to females, including 87.7 word-of-mouth marketing, e-mail and relationship-building 96.9 continuity programs. 2008 89.3 Issues & Questions 99.2 I How large is the female online population in the US and how Male Female quickly will it grow? Note: ages 3+; all locations; eMarketer uses the US Department of Commerce 2003 Internet user number-someone ages 3+ who has I Will females drive future growth in online shopping? accessed the Internet in the last month-as its benchmark source. 2 12,363 -20.1 eMarketer has extrapolated the Department of Commerce number to end I What activities do females pursue online? of year Source: eMarketer, April 2005 b Monster Report – take your choice from over 70 063771 ©2005 eMarketer, Inc. www.eMarketer.com I How can companies est reach this growing majority?

published every year – call or e-mail today. The First Place to Look 3 Yahoo Hotjobs 5,849 -30.7 4 Job.com 2,519 14.8 800-405-0844 5 College Board Property 2,426 NA [email protected] www.emarketer.com Total career services and development 45,201 -2.1

©2006 eMarketer Inc. All rights reserved. 18 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 19

TOP 5 SITES IN 15 MAJOR CATEGORIES Source: comScore Media Metrix. Unique visitors in thousands for 166,966,000 total visits in February 2006 versus 160,287,000 visits in February 2005. Rankings continue through Page 21. Categories cho- sen based on general popularity. RANK SITE UNIQUE VISITORS % CHANGE RANK SITE UNIQUE VISITORS % CHANGE ENTERTAINMENT - MUSIC CLASSIFIEDS 1 Yahoo Music 20,818 -5.7 1 Craigslist.org 8,524 130.3 2 AOL Music 18,641 0.7 2 Trader Publishing Co. 7,615 19.0 3 MSN Music 17,275 28.0 3 AutoTrader 4,743 -10.7 4 ITunes 15,508 182.6 4 Cars.com 3,283 2.7 5 Artistdirect Network 10,549 59.7 5 Apartments.com 1,767 -13.9 Total entertainment - music 78,136 6.5 Total classifieds 26,878 35.5 GAMBLING PERSONALS 1 Cassava Enterprises 8,057 -11.2 1 Yahoo Personals 5,325 -15.1 2 PCH.com 5,116 -29.7 2 Match.com sites 3,895 -15.5 3 PartyGaming 3,746 -50.5 3 Spark Networks 2,336 -22.6 4 Powerball.com 3,271 283.2 4 True.com 1,947 47.4

5 EPrize.net 3,116 58.5 5 Mate1.com 1,941 542.0 Total gambling 43,164 -10.9 Total personals 22,249 -11.8 GAMES ENTERTAINMENT - MOVIES 1 Yahoo Games 18,319 -16.6 1 IMDB.com 15,092 41.1 2 MSN Games 10,468 -11.4 2 Yahoo Movies 12,138 -17.1 3 EA Online 9,768 -16.0 3 MSN Movies 12,001 5.4 4 AOL Games 7,078 -15.3 4 11,722 6.4 5 Atom Entertainment 7,015 28.5 5 Hollywood Media Corp. 7,668 -23.1 Total games 67,962 -3.4 Total entertainment - movies 58,646 6.1 20 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 21

TOP 5 SITES IN 15 MAJOR CATEGORIES Source: comScore Media Metrix. Unique visitors in thousands for 166,966,000 total visits in February 2006 versus 160,287,000 visits in February 2005. Rankings continue through Page 21. Categories cho- sen based on general popularity. RANK SITE UNIQUE VISITORS % CHANGE RANK SITE UNIQUE VISITORS % CHANGE BLOGS HEALTH 1 Blogger.com 15,640 528.0 1 WebMD Health 13,093 21.9 2 MySpace Blogs 11,345 NA 2 NIH.gov 8,381 11.4 3 Six Apart Sites 8,699 NA 3 MSN Health 6,203 27.9 4 MSN Spaces 7,925 800.6 4 About Health and Fitness 4,680 NA 5 Xanga.com 7,246 7.3 5 Waterfront Media 4,060 NA Total blogs 47,694 NA Total health 63,260 6.1 SPORTS NEWS/INFORMATION 1 ESPN 17,806 42.7 1 New York Times Digital* 34,841 322.6 2 FOX Sports on MSN 15,852 34.0 2 Weather Channel 27,887 -4.0 3 Yahoo Sports 13,026 58.1 3 MSNBC 26,484 20.1 4 AOL Sports 11,695 37.9 4 Yahoo News 26,437 7.4

5 NFL Internet Group 8,393 0.6 5 CNN 20,546 -1.7 Total sports 61,707 16.4 Total news/information 107,361 0.8 TRAVEL RETAIL 1 Expedia 25,392 11.0 1 EBay 66,613 7.4 2 Trip Network 15,897 -7.3 2 Amazon sites 42,660 11.0 3 Travelocity 12,246 -6.9 3 Apple Computer 24,277 58.9 4 Orbitz 12,169 -17.2 4 Wal-Mart Stores 20,999 9.4 5 Southwest Airlines 9,902 NA 5 Target Corp. 19,876 26.0 Total travel 69,260 2.7 Total retail 132,226 3.2 22 | Advertising Age | FactPack Advertising Age: One brand...Many platforms ONLINE DISPLAY ADVERTISING 80% of Advertising Age Online users log on at least once a week $8.32 BILLION INTERNET DISPLAY ADS BY CATEGORY Have you logged on today? Source: TNS Media Intelligence. Dollars are in millions for calendar 2005 and represent only display advertising on more than 2,500 sites. *See note on Page 27 for information on the categories, which are aggregated by Ad Age. • Full content of the magazine available every Sunday • More video content, including a full-screen viewer Telecommunications, to watch TV spots and other videos Internet and ISPs • More robust search engine to help you fi nd 18.3%; $1.53 billion All other the articles you want the most 41.8%; $3.46 billion • Opinions, forums and polls so you can participate in discussions and debates with our editors and the advertising community Retail 12.4%; $1.04 billion Every week, 82,000+ agency, media and marketing executives come to Advertising Financial services Age Online. Log on now and see what everyone 12.4%; $1.03 billion else is talking about.

Media General services 6.5%; $543 million To advertise, contact Allison Arden, General 8.6%; $714 million Manager, Interactive • Tel: 212.210.0794 • [email protected] DISPLAY AD GROWTH Source: TNS Media Intelligence. Figures are in millions of dollars. YEAR U.S. SPENDING % CHG 2005 $8,322.7 13.3% 2004 7,342.9 20.8 2003 6,080.1 18.0 2002 5,151.5 -11.1 2001 5,797.1 NA 24 | Advertising Age | FactPack

TOP 25 U.S. INTERNET ADVERTISERS Source: TNS Media Intelligence. Dollars are in millions for calendar 2005 and represent only display advertising on more than 2,500 sites. Percent change computed versus 2004 data, not shown. Directory of Services

RANK MARKETER U.S. AD SPENDING % CHANGE ADVERTISING AGE 1 Vonage Holdings Corp. $275.8 370.1 For 75 years, Advertising Age has led the way covering advertising news and marketing trends. In book and online, 2 Time Warner 169.7 16.5 Advertising Age offers an unmatched weekly distribution to over 339,000 advertising, marketing and media 3 GUS 166.5 92.4 professionals. 4 Dell 155.4 30.0 To advertise, print and online: Allison Arden, General Manager. Tel: 212.210.0794 or [email protected]. 5 Verizon Communications 144.0 15.5 6 142.9 85.6 For classifi ed: Angela Carola. Tel: 800.248.1299 or Classmates Online [email protected]. 7 Netflix 136.4 -19.9 CREATIVITY 8 General Motors Corp. 110.5 67.1 For 20 years, Creativity and Creativity’s AdCritic (www.adcritic com) have covered the best advertising 9 Hewlett-Packard Co. 108.0 -22.5 work across all media, and the talent behind it. Every month, in book and online, Creativity has a total distribution 10 Microsoft Corp. 103.0 -31.9 to 235,000 creative directors, agency producers, client marketers and other creatives. 11 TD Ameritrade Holding Corp. 91.8 39.5 12 90.4 69.7 To advertise, print and online: Adam Gold, Walt Disney Co. Advertising Director. Tel: 212.210.0241 or [email protected]. 13 89.1 -7.3 Apollo Group For classifi ed: Sylvia Kaplan. Tel: 212.210.0407 or 14 Scottrade 85.1 34.7 [email protected]. 15 IAC/InterActiveCorp 77.3 -9.3 AD AGE GROUP CUSTOM PROGRAMS Offering a wide variety of options to tailor your brand 16 E-Trade Financial Corp. 71.6 27.0 message to a targeted audience.

17 EBay 66.7 171.2 To develop your own custom program: Suzanne Hermalyn, Director, Business Development. 18 Viacom 66.2 71.6 Tel: 508.497.8688 or [email protected]. 19 Charles Schwab Corp. 64.4 8.7 AD AGE GROUP EVENTS 20 Emode.com 61.1 89.6 Bringing together leaders and top executives from marketing, agency and media, Ad Age Group Events are 21 Monster Worldwide 58.9 18.2 a great place to network and build your brand among the industry’s top-level decision makers. 22 AT&T 57.6 -19.9 For information on specifi c events, go to 23 Ford Motor Co. 55.0 20.9 www.adage.com/events or call 212.210.0155. 24 Expedia 48.6 -0.4 25 News Corp. 47.6 12.0 © 2006 Crain Communications Inc. 26 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 27

U.S. INTERNET SPENDING TOTALS BY CATEGORY ABOUT THE CATEGORIES Source: TNS Media Intelligence. Dollars are in millions for calendar 2005 and represent only display Categories are aggregated from TNS classifications as follows (not comprehensively): Automotive advertising on more than 2,500 sites. *See note on facing page for information on the categories. includes manufacturers and dealerships; Retail includes discount department & variety stores, depart- Percent change computed versus 2004 data, not shown. ment stores, retail, shopping centers & catalog showrooms; Telecom, Internet services and ISP includes telephone companies (wireless, local and long distance), Internet service providers, web designers, com- RANK CATEGORY* U.S. INTERNET AD SPENDING % CHANGE munications networks, telephone equipment, and offline Internet support; Medicines & proprietary remedies: Pharmaceutical houses, medicines & proprietary remedies, fitness, eye glasses, medical 1 Telecommunications, Internet & ISPs $1,525.3 16.5 equipment; Financial services includes banks and credit cards; Food, beverages & confectionery: 2 1,035.4 -8.0 Beverages, confectionery & snacks, dairy, produce, meat & bakery goods, prepared foods, ingredients, Retail mixes & seasonings; General Services: Apparel services, business services, beauty shops, doctors, nurs- 3 Financial services 1,031.7 12.7 es, chiropractors, dentists, hospitals, clinics & medical centers, legal services, rental services, dating serv- ices, spectator sporting events, exterminators, electric & water companies; Personal care: Cosmetics & 4 General services 714.5 38.7 beauty aids, personal hygiene, hair products, toiletries, hygienic goods & skin care; Movies, recorded 5 542.7 35.2 video and music includes DVDs; Direct response advertising includes direct response advertising in all Media classifications; Airlines, hotel, car rental and travel includes cruise ship travel; Apparel: ready-to-wear, 6 Airlines, hotels, car rental & travel 512.9 23.3 underclothing & hosiery, jewelry, accessories footwear; Home furnishings, appliances & electronics: household furnishings & accessories, building materials, equipment & fixtures, appliances, electronics; 7 Automotive 422.1 15.8 Home supplies and cleaners: Household soaps, cleansers & polishes, laundry soaps, foils, wraps, paper 8 390.1 0.5 products; Miscellaneous: Aviation (excluding freight), employment recruitment, agriculture, lawn and Medicine & remedies garden, industrial, luggage, cameras, film. 9 Computers & software 357.8 -11.4 10 Education 254.1 11.1 11 Government, politics & religion 171.9 18.3 12 Insurance 162.1 -10.8 13 Toys & games 123.3 54.2 14 Movies, recorded video & music 115.8 0.2 15 Food, beverages & candy 108.8 37.0 16 Personal care 79.4 50.9 17 Home furnishings, appliances & electronics 78.9 114.3 18 Real estate 69.8 -1.8 19 Restaurants 45.2 105.5 20 Beer, wine & liquor 43.2 -2.0 21 Apparel 26.8 -59.3 22 Hardware & home building supplies 14.7 33.4 23 Home supplies & cleaners 13.5 130.2 24 Sporting goods 9.5 16.5 25 Gas & oil 7.7 69.4 28 | Advertising Age | FactPack CONSUMER INTERNET USAGE

INTERNET PENETRATION BY ACCESS TECHNOLOGY Point is a special in-book and online section of Advertising Age that focuses Source: Ad Age from eMarketer data, using the Federal Communications Commission as its benchmark on the business issues and imperatives of CMOs and other senior-level for broadband households for 2003. Based on 283.4 million people in the U.S. ages 3+. (See Page 30) marketing executives. Coming soon! Look for video interviews with CMOs on Advertising Age Online (www.adage.com). Point will also conduct webcasts on the topics that matter most to CMOs. Broadband users Published monthly, Point reaches 178,000 client-side marketers, plus 105.1 million; 37.1% bonus distribution to key events throughout the year, including… Not online 108 million; 38.1% iMedia Brand Summit ANA Everything Except TV Conference Dialup users Advertising Age’s Madison+Vine Advertising Age’s Entertainment 70.3 million; 24.8% Conference Marketers of the Year ANA Agency Relations Forum AAAA Account Planning Conference AAAA Management Conference & Advertising Age’s Women to Watch Annual Meeting ANA Agency Relations Forum Advertising Age’s American Consumer Advertising Age’s Madison+Vine East Conference ANA Annual Conference $172.4 BILLION IN U.S. ONLINE RETAIL SALES IN 2005 Ad:Tech San Francisco Advertising Age’s & Creativity’s Source: Forrester Research U.S. eCommerce 2005 to 2010. All figures are projected. (See Page 34) US Marketing Forum Redefi ning Creativity ANA Ad Financial Management Ad:Tech New York Conference Advertising Age’s Media Mavens Spencer Stuart CMO Summit Advertising Age’s Marketing 50 Travel $62.8 billion; 36.4% AMA Effi e Awards Gala To reach this senior-level audience month after month, contact Suzanne Hermalyn • Tel: 508-497-8688 • [email protected]. Home products Other $76.6 billion; 44.4% $19.1 billion; 11.1% Computers, hardware and software $13.9 billion; 8.1% © 2006 Crain Communications Inc. 30 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 31

INTERNET USERS IN THE U.S. BY ACCESS TECHNOLOGY Source: eMarketer, using the Federal Communications Commission as its benchmark source for broadband households for 2003. *Other includes xDSL technologies other than ADSL, fixed wireless (MMDS & WiMAX), satellite, fiber, Ethernet, powerline technology and other traditional wireline technologies such as T1 lines. USERS, HOUSEHOLDS, SUBSCRIBERS 2003 2004 2005 2006 2007 2008

Internet users (in millions) 164.3 170.1 175.4 180.1 184.6 188.5 percent change 3.5% 3.1% 2.7% 2.5% 2.1%

U.S. population ages 3+ (in millions) 278.4 280.9 283.4 286.1 288.6 291.2 percent change 0.9% 0.9% 1.0% 0.9% 0.9% Internet users as % of population ages 3+ 59.0% 60.6% 61.9% 63.0% 64.0% 64.7% +/- change 1.6 1.3 1.1 1.0 0.7

Broadband users (in millions) 71.5 86.5 105.1 124.2 141.7 157.3 percent change 21.0% 21.5% 18.2% 14.1% 11.0%

Dial-up users (in millions) 92.8 83.6 70.3 55.9 42.9 31.2 percent change -9.9% -15.9% -20.5% -23.3% -27.3%

Internet households (in millions) 64.1 68.8 71.5 74.1 78.0 82.2 percent change 7.3% 3.9% 3.6% 5.3% 5.4%

Broadband households (in millions) 26.0 34.3 42.3 51.1 60.4 69.4 percent change 31.9% 23.3% 20.8% 18.2% 14.9%

Dial-up households (in millions) 38.1 34.5 29.2 23.0 17.6 12.8 percent change -9.4% -15.4% -21.2% -23.5% -27.3% Broadband as % of all U.S. households 23.1% 29.9% 36.2% 42.9% 49.8% 56.3% +/- change 6.8 6.3 6.7 6.9 6.5 Broadband as % of all Internet households 40.6% 49.9% 59.2% 69.0% 77.4% 84.4% +/- change 9.3 9.3 9.8 8.5 7.0 ADSL broadband subscribers 9.5 13.7 18.0 22.4 27.1 31.2 percent change 44.2% 31.4% 24.4% 21.0% 15.1% Cable broadband subscribers 16.4 20.5 24.2 28.2 32.0 35.7 percent change 25.0% 18.0% 16.5% 13.5% 11.6% Other broadband subscribers* 2.3 2.6 2.8 4.1 5.6 6.6 percent change 13.0% 7.7% 46.4% 36.6% 17.9% Total broadband subscribers 28.2 36.8 45.0 54.7 64.7 73.5 percent change 30.5% 22.3% 21.6% 18.3% 13.6% 32 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 33 ONLINE ACTIVITIES OF U.S. ADULT INTERNET USERS U.S. INTERNET USERS BY RACE Source: Pew Internet and American Life Project, October 2005, as cited by eMarketer. Data is a compi- Source: eMarketer. eMarketer, using a 2003 baseline from the Department of Commerce's October lation of two surveys: February-March 2005 n=2,201 and May-June 2005 n=2,001. 2003 estimate of the percentage of individuals ages 3+ in each segment who had access to the Internet at the time of the survey. AT-HOME AT-HOME ACTIVITY DIAL-UP USERS BROADBAND RACE 2004 2005 2006 68% 82% Get a news product USERS (IN MILLIONS) 59 81 Buy a product online White 128.3 131.9 134.8 Bank online 35 59 African-American 17.6 18.4 19.2 Download computer programs 35 47 Hispanic 14.9 15.9 17.0 Asian-American 8.7 9.4 10.0 Play online games 33 41 Read someone else’s blog 20 35 AS PERCENT OF TOTAL INTERNET USERS White 75.4% 75.2% 74.8% Participate in an online auction 19 39 African-American 10.3% 10.5% 10.7% Download music 17 33 Hispanic 8.8% 9.1% 9.5% Create a blog 411 Asian-American 5.1% 5.3% 5.6%

IMPORTANCE OF ACTIVITIES BY ONLINE FREQUENCY Source: The Conference Board, TNS NFO, first quarter 2006, as cited by eMarketer. A household is classified as being online if the household head reports being online at least monthly. Of all online households whose primarily reason for logging on is to conduct financial transactions (and less than 12% of households fall into this category), 75.9% log on to the Internet on a daily basis. While financial transactions are the main draw to the Internet for these households, they are also likely using the Internet for other purposes. They all are! HOW OFTEN HOUSEHOLDS ARE ONLINE And you’ll find them at Pogo.com TM SEVERAL ABOUT AT LESS TIMES ONCE LEAST THAN Get your message to our loyal, engaged audience at Pogo, the online ACTIVITY DAILY A WEEK A WEEK MONTHLY MONTHLY site where adult gamers come to relax, hang out and play games. Reach nearly 10 million people who spend an average of 36 minutes at Pogo Personal communication 70.4% 16.0% 4.6% 4.0% 5.0% every day*. Micro targeting and content integration will keep your brand front and center with the audience you need to reach. Personal research 68.5 16.1 4.6 4.4 6.4 Contact: West/[email protected] Purchasing products 72.9 14.8 3.8 4.0 4.5 or [email protected] Financial transactions 75.9 14.4 3.2 3.5 3.0 Entertainment 71.1 15.7 4.0 4.0 5.1 Work-related activities 74.2 14.9 3.1 3.6 4.2 Following the news 72.8 15.4 3.6 3.7 4.5 *Source: Media Metrix, February 2006. Models and the Digital Media are being used for illustrative purposes only. ©2006 Inc. All rights reserved. Pogo and Pogo.com are trademarks or registered trademarks of Pogo Corporation in the U.S. and/or other countries. All other trademarks are the property of their respective owners. PogoTM is an Electronic ArtsTM brand. 34 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 35

U.S. ONLINE RETAIL SALES ONLINE CONTENT SPENDING BY CATEGORY Source: Forrester Research U.S. eCommerce 2005 to 2010. All figures are projected. *Some categories Source: Online Publishers Association/comScore Networks. Dollars are in millions for calendar 2005. are aggregated by Ad Age. Percent change is computed versus 2004 figures, not shown.

U.S. ONLINE RETAIL SALES PROJECTIONS (IN BILLIONS) RANK CATEGORY CONSUMER SPENDING % CHANGE 2005-2006 1 Entertainment/lifestyle $573.8 38.8 CATEGORY* 2005 % CHG 2010 2 Personals/dating 503.4 7.2 Apparel $12.5 22.2% $25.9 3 Business content/investment 320.3 2.4 Books 4.1 13.1 6.2 4 Research 152.3 32.3 Computer hardware/software 13.9 7.2 17.0 5 117.3 21.6 Computer hardware 11.3 7.0 13.8 Personal growth 6 108.4 22.1 Computer software 2.6 8.1 3.2 Games 7 78.7 -10.5 Consumer electronics 8.5 17.6 16.8 General news 8 65.4 -7.2 Flowers/cards/gifts 4.8 21.5 8.9 Community-made directories Health/beauty 2.9 36.3 7.8 9 Sports 51.3 -2.8 Home products 19.1 23.1 40.6 10 Greeting cards 45.7 5.3 Jewelry/luxury goods 3.2 26.8 6.1 Music/video 4.4 21.7 8.7 TOP CATEGORIES BY TIME SPENT ONLINE Music 1.6 24.0 2.6 Source: comScore Media Metrix. Unique visitors in thousands for November 2005 representing all per- Video 2.9 20.5 6.1 sons at U.S. home, work, college and university locations. Sporting goods/equipment 4.1 22.8 8.7 DAILY SHARE UNIQUE MINUTES OF ONLINE VISITORS Tickets 5.4 16.6 9.4 RANK CATEGORY PER USER DAY (000) Toys/video games 3.9 14.9 6.3 1 Portals 17.3 33.5% 160,080 2.5 11.8 3.5 Toys 2 E-mail 7.3 14.1 125,834 Video games 1.4 20.1 2.8 3 Promotional servers 5.8 11.3 157,383 Auto/auto parts 9.3 0.0 19.4 4 Instant messengers 5.1 9.8 74,064 Food/beverage 5.8 27.4 16.9 5 Retail 3.9 7.6 136,863 Travel 62.8 16.9 119.1 6 Entertainment 2.8 5.4 129,441 Airline tickets 38.5 13.8 63.7 7 2.4 4.6 71,390 Car rentals 2.7 22.2 5.8 Games Full-service travel agents 1.1 45.5 3.7 8 Online Gaming 2.0 4.0 41,572 Hotel reservations 20.5 20.5 45.9 9 Community 1.6 3.1 110,141 Total U.S. 172.4 17.0 328.6 10 Directories/resources 1.5 2.9 121,896 36 | Advertising Age | FactPack CLASSIFIED RECRUITMENT SITES BY SHARE OF MARKET Source: Forrester Research, from U.S. Online Marketing Forecast 2005 to 2010. Revenues are in millions for 2005. *Sites not affiliated with CareerBuilder. RANK VENDOR SHARE U.S. REVENUE % CHG 1 Monster 37.8% $523 16.9% 2 CareerBuilder 22.8 315 24.0 3 Yahoo Hotjobs 10.4 144 15.2 4 Online newspapers* 13.0 180 26.8 5 Other online job sites 16.0 220 15.8 Total 100.0 1,382 19.0

CareerBuilder 22.8% Yahoo Hotjobs 10.4%

Monster 37.8% Online newspapers* 13.0%

Other online job sites 16.0%

U.S. ONLINE CLASSIFIEDS AD SPENDING Source: Forrester Research, from U.S. Online Marketing Forecast 2005 to 2010. U.S. MARKETING SPENDING IN MILLIONS 2004 2005 2006 2007 2008 2009 2010 Real estate $565 $657 $748 $820 $878 $921 $955 Automotive 447 614 754 888 1,003 1,102 1,186 Recruitment 1,161 1,382 1,617 1,876 2,119 2,353 2,564 Job listings 767 898 1,035 1,182 1,314 1,435 1,539 Resume database 325 401 485 581 678 776 872 Other advertising 70 83 97 113 127 141 154 Total 2,173 2,654 3,119 3,584 4,000 4,375 4,705 38 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 39 SEARCH SITE RANKING SEARCH Source: Hitwise data for the week of March 11, 2006. Hitwise collects Internet usage information through partnerships with ISPs and opt-in panels to monitor more than 10 million users in the U.S. and more than 25 million worldwide. SHARE OF 5.82 BILLION ONLINE SEARCHES MARKET Source: comScore qSearch, a division of comScore Networks. Percent change based on share of 5.24 RANK NAME DOMAIN SHARE billion searches in February 2005. The 2006 figure represents a 11.1% overal increase in searches. 1 Google www.google.com 46.11%

PERCENT OF 2 Yahoo Search search.yahoo.com 15.91 ENGINE SEARCHES IN FEB. 2006 % CHG 3 MSN Search search.msn.com 12.28 Google sites 42.3% 6.0% 4 Google Image Search images.google.com 5.63 Yahoo sites 27.6 -3.5 5 Ask.com www.ask.com 2.23 MSN-Microsoft sites 13.5 -2.8 6 AOL Search www.aolsearch.com 1.56 7 1.49 Time Warner network 8.0 -0.9 Yahoo Image Search images.search.yahoo.com 8 0.93 Ask.com 6.0 0.7 My Web Search www.mywebsearch.com 9 Information.com www.information.com 0.88 10 Dogpile www.dogpile.com 0.79 SEARCH ENGINE MARKET SHARE 11 My Search www.mysearch.com 0.64 Source: comScore qSearch, a division of comScore Networks. 12 InfoSpace www.infospace.com 0.54 13 Yahoo Directory dir.yahoo.com 0.39 14 Gleaned.com www.gleaned.com 0.37 All other 2.6% Google 42.3% 15 Answers.com www.answers.com 0.36 Ask.com 6.0%

Time Warner SEARCH ENGINE USE BY GENDER network 8.0% Source: Hitwise data for the week of March 11, 2006. Hitwise collects Internet usage information through partnerships with ISPs and opt-in panels to monitor more than 10 million users in the U.S. and more than 25 million worldwide.

MSN- Microsoft RANK NAME MALE FEMALE 13.5% 1 Google 53.01% 46.99% 2 Yahoo Search 50.05 49.95 3 46.52 53.48 Yahoo 27.6% MSN Search 4 Ask.com 42.69 57.31 5 AOL Search 41.25 58.75 40 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 41 SPONSORED LINK CLICKS SNAPSHOTS OF TOP SEARCH TERMS Source: Harris Interactive study commissioned by iCrossing cited by eMarketer. How often U.S. adult Four lists of top search terms are presented below. Sources: Wordtracker’s Key Words report, March 15, Internet users click on a sponsored link when using a search engine to look for a specific product/serv- 2006 is for the previous 100 days. The hits count is the number of sightings of a keyword in a database ice. Internet users for this survey are those who use search engines to research products/services of more than 370 million search terms from queries on metacrawlers on the web such as Metacrawler before making online purchases. and Dogpile. Adult terms are omitted. Google Zietgeist for the week ending March 13 shows the top 10 PERCENT OF RESPONDENTS gaining search queries published by Google. *These two lists are from Hitwise for four weeks ending AGE ALWAYS OFTEN SOMETIMES RARELY NEVER March 11, 2006. Google terms are the top search terms on Google. The generic shopping terms are those which had the most success driving traffic to shipping or classified sites across all engines. 18-34 1% 10% 37% 37% 15% 35-44 4 15 43 33 6 WORDTRACKER GOOGLE TERMS (FROM HITWISE)* 45-54 2 14 48 29 7 RANK QUERY HITS RANK QUERY 55+ 02055204 1 google 203,442 1 myspace 2 ebay 158,819 2 ebay FREQUENCY OF SEARCH ENGINE USE 3 yahoo 149,466 3 yahoo Source: Center for Survey Research and Analysis at the University of Connecticut as cited by eMarketer 4 paris hilton 133,869 4 myspace.com for February 2006. 5 myspace 113,561 5 PERCENT OF ACTIVITY RESPONDENTS 6 girls 108,001 6 yahoo.com More than once a day 23% 7 eminem 99,863 7 hotmail Once a day 16% 8 lyrics 93,124 8 my space 3-5 days a week 18% 9 carmen electra 90,736 9 dictionary 1-2 days a week 14% 10 games 90,068 10 gmail 11% Once every few weeks GOOGLE ZEITGEIST GENERIC SHOPPING TERMS* Less often 16% RANK QUERY RANK QUERY U.S. SEARCH MARKETING SPENDING 1 dana reeve 1 prom dresses 2 spacecraft 2flowers Source: Forrester Research, from U.S. Online Marketing Forecast 2005 to 2010. 3pi 3 lingerie U.S. MARKETING SPENDING IN MILLIONS 2004 2005 2006 2007 2008 2009 2010 4 ncaa 4 furniture Agency fees $424 $537 $691 $813 $946 $1,092 $1,258 5 sopranos 5sextoys Paid inclusion 222 271 321 366 408 447 485 6 teri hatcher 6 checks Contextual listings 648 914 1,181 1,426 1,665 1,881 2,089 7 wafah dufour 7 shoes Paid search 2,974 3,949 4,873 5,682 6,444 7,113 7,740 8 sebastian telfair 8 auto parts Total 4,268 5,671 7,067 8,287 9,463 10,533 11,571 9 world baseball classic 9 tires As % of online spending 36% 39% 41% 42% 43% 44% 44% 10 10 books 42 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 43 MOBILE MOBILE DEVICE USE AND CONTENT CONSUMPTION WAP SUBSCRIBERS BY CARRIER Source: M:Metrics survey of 35,649 U.S. mobile subscribers. Data based on three-month moving aver- Source: M:Metrics. Subscriber figures are three month averages ending January 2006. WAP is Wireless age for period ending January 31, 2006. Projected subscriber totals are in thousands. Application Protocol. RANK ACTIVITY U.S. SUBSCRIBERS % SHARE % CHG RANK CARRIER U.S. SUBSCRIBERS % SHARE 1 Sent text message 62,421 34.1% 2.4% 1 Cingular/AT&T 37,788,212 28.79% 2 Retrieved news and information 19,008 10.4 2.3 2 Verizon 33,479,382 25.51 3 Purchased ringtone 18,372 10.0 3.9 3 Sprint PCS 14,151,552 10.78 4 Used photo messaging 17,971 9.8 5.7 4 T-Mobile 14,142,047 10.78 5 Used personal e-mail 14,026 7.7 4.3 5 Nextel 9,653,777 7.36 6 Used mobile instant messenger 11,979 6.5 3.6 6 Alltel 5,430,539 4.14 7 Used work e-mail 8,479 4.6 7.5 7 US Cellular 3,573,817 2.72 8 Purchased wallpaper or screensaver 7,372 4.0 2.7 8 Virgin Mobile 2,193,944 1.67 9 Downloaded 6,006 3.3 -0.7 9 Cellular One/Dobson/Western 1,644,712 1.25 10 TracFone 1,142,586 0.87 TOP MOBILE SITES 11 Other carrier 8,039,919 6.13 12 Total 131,240,484 100.00 Source: M:Metrics. Subscribers in millions are projected from a survey of 36,649 mobile users in January 2006. The percentage indicates the percent of respondents who accessed this type of infor- mation ”ever in a month.” U.S. HANDSET MARKET SHARE NEWS 13.4% SEARCH 5.0% Source: Strategic Analytics. Units sold are in millions for calendar 2005. RANK SITE SUBSCRIBERS RANK SITE SUBSCRIBERS RANK VENDOR UNITS % CHG % SHARE 1 CNN.com 4.3 1 Google 4.6 1 Motorola 47.33 27.6% 33.1% 2 Yahoo 4.1 2 Yahoo 4.1 2 LG 25.04 120.3 17.5 3 ESPN Sports News 4.0 3 MSN 1.4 3 Nokia 24.23 -10.7 17.0 WEATHER 7.2% MAPS, DIRECTORIES 4.3% 4 Samsung 23.24 -4.0 16.3 RANK SITE SUBSCRIBERS RANK SITE SUBSCRIBERS 5 Kyocera 6.97 -19.6 4.9 1 Weather.com 4.2 1 Yahoo 3.5 6 Sanyo 5.50 -1.8 3.8 2 Yahoo 3.0 2 Google 2.9 7 Other 10.57 -16.8 7.4 3 Google 1.5 3 MapQuest 2.8 8 Total market 142.88 4.9 100.0 44 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 45 E-MAIL TOP 10 E-MAIL SERVICE E-MAIL VOLUME FORECAST DELIVERY STATISTICS ON E-MAIL PROVIDERS BY VOLUME Source: JupiterResearch. Retention includes pro- Source: Return Path, based on a consumer survey run in February 2006 using Return Path's Authentic motional e-mail. Acquisition includes sponsored Response online panel. Source: JupiterResearch E-mail Marketing Buyers newsletters. Receipts are examples of transac- Guide, October 2005. Volume figures are not tional e-mail. STATISTICS available and volume may not be a precise meas- OVERALL NON-DELIVERY: For the second half of 2005, 20.5% of permission-based commer- ure of each company’s size. 1,890 716 cial e-mail was blocked or filtered by the 31 ISPs and B2B filters monitored by Return Path. 2005 56 RANK VENDOR 3,253 This means that the e-mail either went to the bulk folder or was not delivered at all. Based 1,888 on more than 117,000 campaigns run through Return Path's Mailbox Monitor service. 691 1 Epsilon Interactive/Dart Mail 2006 58 2,910 ISPs with the highest and lowest filtering rates 2 Cheetahmail 1,885 666 2007 59 HIGHEST LOWEST 3 Yesmail 2,578 1,883 RANK ISP PERCENT FILTERED RANK ISP PERCENT FILTERED 4 Digital Impact 641 2008 61 2,255 1 42.9% 1 7.8% 5 JL Halsey (E-mail Labs and Lyris) Excite EarthLink 1,880 617 40.4 8.1 6 2009 63 2 Gmail 2 Mac.com Responsys 1.942 33.8 9.4 7 1,878 3Lycos 3 CompuServe EDialog 593 2010 64 8 Constant Contact 1,640 CONSUMER INFO: 73.4% of consumers report not getting an e-mail they expected to receive, only to find it either went to the junk folder or didn't get delivered at all. Annual number500 of10 0e-mails0 150 0per 2active000 2e-mail500 3 consumer000 3500 9 Silverpop 60.7% of consumers get 50 or more non-personal e-mails per week. Only 13.7% get RETENTION TRANSACTIONAL less than 20 non-personal e-mails per week. 10 Exact Target ACQUISITION SPAM COST OF BLOCKED E-MAIL U.S. E-MAIL MARKETING SPENDING Source: JupiterResearch U.S. e-mail Marketing Forecast, 2005-2010. Jupiter forecasts that e-mail Source: Forrester Research, from U.S. Online Marketing Forecast 2005 to 2010. delivery rates will increase as marketers, e-mail infrastracture companies and ISPs adopt better practices and tighter controls over spam. U.S. MARKETING SPENDING IN MILLIONS 2004 2005 2006 2007 2008 2009 2010 120 $106 $107 $105 $102 $98 $92 Newsletter 100

sponsorships $275 $326 $380 $425 $468 $505 $541 80

Outsourced e-mail 60 374 378 396 414 424 479 542 delivery 40 12% 11% E-mail list rental 744 747 746 761 665 622 581 20 11% 10% 9% 8% 1,393 1,451 1,522 1,600 1,557 1,606 1,664 Total 2005 2006 2007 2008 2009 2010 E-mail as % of total COST OF BLOCKED RETENTION AND SPONSORED E-MAIL (IN MILLIONS) online mktg spending 12% 10% 9% 8% 7% 7% 6% PERCENT OF BLOCKED E-MAIL OF TOTAL RETENTION AND SPONSORED E-MAIL SPENDING 46 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 47 GAMES RSS TYPES OF GAMES PLAYED ONLINE MOST OFTEN RSS STANDS FOR REALLY SIMPLE SYNDICATION Source: Entertainment Software Association as cited by eMarketer, May 2005. Data is for the U.S. TO USE RSS, a consumer can employ a subscription aggregator/RSS reader such as PERCENT OF Bloglines, Newsgator or My Yahoo to bring content into a browser. These services TYPE RESPONDENTS aggregate all the sites a consumer has subscribed to, like NYTimes.com or Puzzle, board, game show, trivia, card 56.8% Gawker.com, for example, and deliver the information from the services directly to Action, sports, strategy, role play 19.0 the user as soon as it is updated. 34% of RSS users get syndication through manual- ly created feeds on Bloglines, according to Bill Flitter, VP-marketing and founder of Shockwave, flash, browser-based mini-games 9.6 Pheedo, an ad network for RSS. Persistent multi-player universe 9.1 Depending on the service provider a user tion types (publications, topics, news sources) selects, subscribing varies in complexity. they want to receive. A user may not realize the Other 8.5 To sign up for a Bloglines account, users need data is distributed via RSS. to provide an e-mail address and a password. Marketers and ad networks can feed adver- Once the account is created, a user adds subscrip- tising into syndicated data using behavioral tar- tions by pasting in URLs—which reside behind geting. RSS ad networks can then analyze the all those little orange RSS and XML buttons online behavior of those receiving the ads. PROJECTED U.S. IN-GAME VIDEO AD REVENUE popping up all over the web. Applications, podcasts, video and other kinds In My Yahoo, the process is a little more of digital information also can be distributed and Source: Yankee Group as cited by eMarketer for May 2005. Figures in millions of dollars exclude adver- seamless. Users click on the names of informa- updated this way. tising on game Web sites, but include static ads and product placement. 2003 2004 2005 2006 2007 2008 2009 NEWS SITE VISITS BY RSS USERS In-game advertising $10.0 $34.0 $71.9 $173.1 $302.9 $432.7 $562.5 Source: Nielsen/Netratings as cited by eMarketer, September 2005 survey of 2,219 home, work and school Internet users. Advergames 69.0 83.6 113.7 153.3 203.5 259.9 312.2 AVG. NEWS SITES VISITS TO A TOP 20 VISITS TO ALL USER TYPE VISITED NEWS SITE OTHER NEWS SITES RSS users 10.6 32 16 TOP VIDEO GAMES AND HARDWARE Non-users 3.4 11 4 Source: NPD Group. Games are ranked by units sold in the U.S. in 2005. PS2 is Sony’s PlayStation 2; GBA is Nintendo’s ; XBX is Microsoft’s . NPD reports life-to-date console hardware installs through February 2006 as follows: Playstation 2: over 33 million units; DEMOGRAPHIC PROFILE OF U.S. RSS USERS Nintendo GameCube: over 11 million units; Microsoft Xbox: over 14 million units; Microsoft : Source: Nielsen/Netratings as cited by eMarketer, September 2005 survey of 2,219 home, work and over 1 million units. Units, in millions, represent minimum levels. school Internet users. RANK GAME (PLATFORM), PUBLISHER UNITS RELEASED PERCENT OF RESPONDENTS IN EACH DEMOGRAPHIC ONLINE 1 Madden NFL 06 (PS2), Electronic Arts 2.9 Aug-05 BEFORE COLLEGE INCOME 18-34 USER TYPE MALE 1994 GRADUATE $100,000+ YRS OLD 2 Pokemon Emerald (GBA), Nintendo of America 1.7 Apr-05 78% 48% 46% 25% 17% 3 Gran Turismo 4 (PS2), Sony Corp. 1.5 Feb-05 Aware RSS users 4 Madden NFL 06 (XBX), Electronic Arts 1.2 Aug-05 Unaware RSS users 54 36 53 27 25 5 NCAA Football 06 (PS2), Electronic Arts 1.1 Jul-05 Non-RSS users 46 34 43 22 16 48 | Advertising Age | FactPack Interactive Marketing & Media | Advertising Age | 49

TOP 10 INTERACTIVE AGENCIES AWARDS & Source: Ad Age’s forthcoming Agency Report (AA, May 1, 2006). Tables on this page are rankings by 2005 U.S. interactive revenue in millions. All figures are Ad Age estimates.

TOP AGENCIES RANK AGENCY [PARENT] U.S. INTERACTIVE REVENUE % CHANGE 1 Avenue A/ [aQuantive] $189.8 36.5 2 Sapient 167.2 22.5 3 Digitas 155.0 46.2 4 Agency.com [Omnicom] 92.5 25.9 5 OgilvyInteractive [WPP] 91.2 15.0 6 Grey Interactive Worldwide [WPP] 77.0 11.9 SCOTT BREITHAUPT SCOTT Advertising Age’s first Interactive Awards Special Report (AA, Nov. 7, 2005) select- 7 Modem Media [Digitas] 75.4 11.7 ed Chrysler Group, an advertiser operating in a traditionally conservative TV-centric category, as its Interactive Marketer of the Year. Chrysler was cited for its innovation 8 Organic [Omnicom] 72.0 43.1 and financial commitment to the Internet. 9 Tribal DDB [Omnicom] 66.0 46.7 PepsiCo was selected as the winner for Best Web Site for understanding and using the 10 62.6 50.5 Internet for brand relevance with the fickle youth market. Cited were Pepsi-Cola R/GA [Interpublic] North America’s youth-oriented leadership on its PepsiWorld.com and MountainDew.com Web sites and the transfer of its “Pepsi Smash” music show from TV to Yahoo.Music.com TOP 5 AD NETWORKS Best Online Campaign went to Virgin Atlantic and its agency Crispin Porter & Bogusky for an extension to the “Go jet set, BY UNIQUE VISITORS go” effort in which downloadable banners were offered. Source: Ad Age ranking of iMedia connection data. Go to: http://www.imediaconnection.com/resource- Examples included having a dream interpreted and a hair- connection/adnetwork.asp and http://www.imediaconnection.com/adnetworks/. Among other interest- cut delivery by mouse clicks. ing ad networks, ClickDiario serves the Spanish-language market and had 45 million unique visitors; Third Screen Media targets mobile devices, and had 4 million unique visitors in 2005. Interactive Agency of the Year was R/GA, which imple- ments technology to engage consumers by surrounding each account with a cross- MILLIONS OF discipline team that homes in on what kind of relationships the consumer has with UNIQUE BILLIONS OF WEB a brand. It was feted for its 2005 Nike id build-your-own sneaker effort in Times RANK NETWORK VISITORS IMPRESSIONS SITES Square. 1 Advertising.com 134.1 35.0 3,000 Best Media Agency honors went to Avenue A/Razorfish, named for its ability to meas- ure the impact of marketer campaigns and demonstrate the ROI of online advertis- 2 Tacoda 128.0 5.0 3,000 ing. One campaign noted was that of Levi Strauss & Co. and its “Find your style” 3 117.0 9.0 860 online advertising. 24/7 Real Media 4 112.0 25.0 13,500 Best Online Media Seller was Yahoo for becoming far more than a seller or portal, ValueClick Media/Fastclick becoming a full-fledged media company and offering strategic vision to its market- 5 BlueLithium 100.0 6.0 1,000 ing partners. 50 | Advertising Age | FactPack MISCELLANEOUS TOP PC VENDERS BY MARKET SHARE Source: An IDC preliminary ranking of 2005 shipments, in thousands. 1) Data for Lenovo includes shipments for IBM PCs (including Desktop and Portable PCs and excluding x86 Servers and Personal Workstations) starting in Q2 2005, and only Lenovo data for prior quar- ters. 2) IDC estimates prior to Gateway's financial earnings report. 3) Toshiba U.S. shipments based on IDC estimates. Includes shipments to distribution channels or end users. RANK VENDOR SHIPMENTS SHARE WORLDWIDE 1 Dell 37,732 18.1% 2 HP 32.525 15.6% 3 Lenovo 1 12,995 6.2% 4Acer 9,803 4.7% 5 Fujitsu/Fujistu Siemens 8,489 4.1% Total market 208,586 100.0% U.S. 1 Dell 21,466 33.5% 2 HP 12,452 19.4% 3 Gateway 2 3,924 6.1% 4 Apple 2,554 4.0% 5 Toshiba 3 2,260 3.5% Total market 64,089 100.0%

SHARE OF PORTABLE DIGITAL PLAYER SALES Source: NPD Group for U.S. sales of over 19.1 million units in calendar 2005. BRAND UNIT VOLUME SHARE Apple 72.7% SanDisk 6.9 Creative Labs 3.9 Iriver 2.9 Samsung 2.5