South Korea Latin America Taiwan Asia Pacific Europe

State of the Internet with a focus on Asia Pacific November 2009

Joe Nguyen, Vice President for Southeast Asia, comScore, Inc. Note: A copy of this presentation will be sent to all attendees within 24 hours of today’s webinar Our Story in Numbers

Corporate headquarters: Reston, The Only Global Measurement USA of Audience and e-Commerce – Offices in London, Paris, Dusseldorf, Madrid, Tokyo, NYC, Chicago, San Francisco, Seattle, Toronto, Singapore Year founded: 1999 Employees: 550 Successful IPO ( NASDAQ: SCOR ) – June 26, 2007 2 million panelists WW Number of Domains coded in 38 Media Metrix Reported Countries Dictionary: 591,770

170+ Countries with Panel Presence 700 Servers + 1000 TB of Storage

Telecom/ Media Agencies Financial Retail Travel CPG Pharma Technology Mobile

To Meter Cell Phones

To Provide Behavioral Ad Effectiveness (Campaign Metrix) To Measure Video Streaming (Video Metrix) To Deliver a Worldwide Internet Audience Measurement (World Metrix) To Measure the Search Market (qSearch) To Build and Project from 2M+ Longitudinal Panel To Monitor and Report eCommerce Data

External Recognition

WORLD ECONOMIC Top 100 World’s Largest FORUM Innovative Companies Windows Database Technology Pioneer December 2004 December 2001, 2007 2003, 2005 © comScore, Inc. Proprietary and Confidential. 4 Media Metrix Reporting Markets

Countries Currently Reporting Currently in Beta as of Q3 2009

Australia Indonesia China Philippines Hong Kong Vietnam India Japan Other Regions Currently Reporting Malaysia New Zealand Worldwide – 172 countries Singapore North America South Korea Latin America Taiwan Asia Pacific Europe

Global growth at 21%; tipped the 1 Worldwide Online Population billion mark in the past year (Millions) Growth is flat in North America, +21% European growth driven by Russia 1,165.2 960.2 Latin America and Middle East/Africa show rapid growth on a percentage basis but Asia’s growth is on a much

larger base August 2008 August 2009

Online Population by Region Aug 2008 +22% (Millions) Aug 2009

477.2 +20% 389.6 325.6 +4% 271.1 +28% 183.8 191.0 +79% 90.2 81.2 70.3 45.4

Asia Pacific Europe North America Latin America Middle East - Africa

■ China continues explosive growth, with many other countries in the region also continuing to show expansion

Internet Users (MM) In Asia Pacific Region

164.6 China +31 215.5 57.4 Japan +18 67.6 30.3 CNNIC estimates 298 MM India +17 35.4 total Internet users* in 26.5 China as of Dec 2008, up South Korea +10 29.0 41.9 percent from 210 MM 11.3 a year earlier. The Australia +12 12.6 increase of 88MM is 10.5 approximately twice the Taiwan +13 11.9 size of the online 8.6 population in France! Malaysia +9 9.4 * including ages 6+ and people 3.8 Hong Kong +4 accessing the Internet from 3.9 shared computers and Internet 2.4 cafes Singapore 2.3 +14 2.3 New Zealand +15 2.6 Other Asia 72.1 +20 Pacific 86.6

Internet users ages 15+ accessing the internet from a Home or Work computer

■ Currently, however, the region’s usage is Average Time Online below the global average of 22.4 hours per Hours per Visitor, August 2009 user in August 2009 Asia Pacific 16.9 ■ Users in South Korea, Hong Kong and South Korea 30.6 Singapore spend the most time online Hong Kong 25.6 ■ Countries with high broadband availability Singapore 21.4 and penetration are more likely to have heavier internet usage Vietnam 19.9 Australia 19.6 ■ As broadband becomes more widely available in the region, usage will also Japan 19.2 increase Taiwan 18.1 ■ 3G USB Modems are making headway into Philippines 17.8 many Asian markets and increasing Indonesia 15.8

broadband penetration New Zealand 15.4

China 14.9

Malaysia 14.1

India 11.0

■ Though they are almost all based in the Audience Geography United States, the Top 15 Global Worldwide Top 15 Properties properties source the majority of their August 2009 audience from outside the U.S. World- % % However, the top global sites’ appeal to Wide Non-US Asia the Asian Pacific audience is below UV Pacific Total Internet 1,165,194 86% 41% average Google Sites 867,618 84% 33% Microsoft Sites 707,803 84% 30% ■ Global sites’ ability to develop or acquire Yahoo! Sites 595,983 77% 38% local channels is important to Facebook.com 389,525 77% 18% international growth, but is crucial in this Wikimedia Foundation Sites 307,641 81% 25% AOL LLC 260,547 66% 14% region eBay 243,335 74% 16% Amazon Sites 200,671 70% 27% ■ Tencent, Inc., the parent property of the CBS Interactive 194,036 76% 36% very popular Instant Messenger Ask Network 189,937 65% 15% application QQ, is the first Asian Apple Inc. 176,468 73% 26% Fox Interactive Media 164,612 59% 15% property to break into the Top 15. The Mozilla Organization 161,893 83% 20% However, almost all of its traffic comes Adobe Sites 148,378 77% 26% from Asia, particularly from mainland Tencent Inc. 145,701 100% 99% China. Asia Pac share for most sites are below the Total Internet average

■ The Asia Pacific region is extremely diverse ■ A strong global brand is not sufficient for success here, true localization is important; in some markets, it is critical

Asia South Hong New Non-US Pacific China Japan India Korea Australia Taiwan Malaysia Kong Singapore Zealand Total Internet 85.6% 41.0% 18.5% 5.8% 3.0% 2.5% 1.1% 1.0% 0.8% 0.3% 0.2% 0.2% Google Sites 98 80 50 95 103 65 114 82 103 87 111 109 Microsoft Sites 98 74 53 84 64 70 127 97 88 109 128 113 Yahoo! Sites 90 93 33 162 141 90 92 161 137 156 139 93 Facebook.com 90 45 0 12 69 22 164 24 116 160 196 143 Wikimedia Foundation Sites 95 61 6 161 90 38 124 53 89 84 129 111 AOL LLC 77 33 4 24 75 14 98 26 78 42 66 186 eBay 86 40 18 18 44 151 186 41 50 41 88 87 Amazon Sites 82 66 28 212 60 15 105 27 52 48 90 100 CBS Interactive 89 87 97 41 86 79 128 50 93 62 131 119 Ask Network 76 36 3 17 118 17 148 10 84 35 141 102 Apple Inc. 85 65 15 179 50 45 216 52 52 121 155 171 Fox Interactive Media 69 36 19 34 35 20 220 9 120 20 77 98 The Mozilla Organization 97 49 6 62 85 26 106 44 109 66 135 96 Adobe Sites 90 64 35 93 73 78 99 64 92 88 121 101 Tencent Inc. 116 242 507 4 0 26 7 52 26 110 35 5 Index = each country or region’s share of traffic to each site, compared to that country or region’s share of the worldwide internet population x 100

Europe Americas,

Asia Pacific UnitedKingdom MidEast & Africa Ireland Australia Denmark Canada NewZealand Norway PuertoRico India Sweden Colombia Singapore Portugal Venezuela Malaysia Finland Switzerland Mexico Hong Kong Belgium Chile South Korea Netherlands Argentina Taiwan Austria Brazil Japan Italy SouthAfrica China Turkey Israel Spain

France English Germany non-English Local Language

Russia Other

■ Half of the Top 20 Properties for the ■ Particularly within China, Korea, and Japan, region are Chinese sites majority of Top Domains are local sites or localized versions of global sites Unique Asia Visitors Pacific Minutes/ Unique Unique in Asia Reach Visitor China Visitors Korea Visitors Google Sites 283,806 59.5 112.4 QQ.COM 133,796 NAVER.COM 22,715 Yahoo! Sites 227,182 47.6 182.6 BAIDU.COM 130,943 DAUM.NET 21,957 Microsoft Sites 214,008 44.8 152.4 SINA.COM.CN 96,739 NATE.COM 14,608 Tencent Inc. 144,302 30.2 315.4 SOSO.COM 88,013 GOMTV.COM 14,590 Baidu.com Inc. 143,458 30.1 65.1 163.COM 76,171 CYWORLD.COM 13,886 SINA Corporation 106,473 22.3 40.3 GOOGLE.CN 70,199 JOINS.COM 12,155 Alibaba.com Corporation 90,107 18.9 62.9 TAOBAO.COM 61,879 TISTORY.COM 11,167 XUNLEI.COM 61,520 GOOGLE.CO.KR 10,715 Sohu.com Inc. 81,992 17.2 35.3 SOHU.COM 60,789 GMARKET.CO.KR 10,370 NetEase.com Inc. 81,324 17.0 35.8 TUDOU.COM 52,752 YAHOO.CO.KR 10,039 Wikimedia Foundation Sites 77,365 16.2 13.8 Xunlei Networking 72,541 15.2 49.8 Facebook.com 71,153 14.9 152.7 Unique Japan Visitors CBS Interactive 69,490 14.6 8.8 Tudou Sites 57,866 12.1 27.0 YAHOO.CO.JP 54,887 Amazon Sites 54,014 11.3 12.5 GOOGLE.CO.JP 39,417 FC2.COM 34,146 Youku 51,308 10.8 47.4 RAKUTEN.CO.JP 33,307 Oak Pacific Interactive Sites 49,435 10.4 98.2 GOO.NE.JP 28,914 Apple Inc. 46,731 9.8 5.4 WIKIPEDIA.ORG 28,739 PConline.cn Sites 44,015 9.2 10.2 YOUTUBE.COM 28,009 eBay 40,140 8.4 39.7 GOOGLE.COM 25,476 AMAZON.CO.JP 24,125 NIFTY.COM 22,892

■ On average, the Asia Pacific Internet Population audience skews slightly younger Age Distribution by Country than the average global Internet China 34% 32% 23% 8% population India 41% 36% 15% 7% Asia Pacific 30% 29% 22% 11% Malaysia 38% 26% 23% 9% 5%

Worldwide 28% 26% 22% 14% 10% Japan 18% 23% 23% 17% 19% Persons: 15-24 Persons: 25-34 Persons: 35-44 Persons: 45-54 Persons: 55+ South Korea 22% 26% 26% 18% 8%

■ China, India, and Malaysia skew Australia 21% 20% 21% 18% 19% substantially young: 77% of India’s web population is under 35, Taiwan 25% 29% 22% 15% 9% compared to 54% of the global Hong Kong 21% 24% 26% 20% 9% population ■ Not surprisingly, countries with Singapore 20% 25% 27% 19% 9%

higher internet penetration = more New Zealand 22% 23% 20% 16% 19% mature web audiences

Persons: 15-24 Persons: 25-34 Persons: 35-44 © comScore, Inc. Proprietary and Confidential. 13 Persons: 45-54 Persons: 55+ How Does Asia Use the Internet?

■ Entertainment is most popular category Key Site Categories in Asia Pacific (includes Music, Movies, Asia Pacific Internet Audience % Reach TV, Multimedia, Entertainment News, Humor) Entertainment 71.2 e-mail 59.0 ■ E-mail is still very important to web Social Networking 56.1 users, despite the contact that News/Information 55.2 alternatives provide (SMS, IM, SNs) Retail 54.4 ■ Popularity of Social networks is Blogs 48.5 unsurprising, with more than half of all Technology 47.6 internet users visiting a Social Community 47.5 networking site during the month Games 47.1 Business/Finance 39.9 ■ Though e-commerce is certainly still in Photos 34.2 its infancy in this region, visiting to Retail Instant Messengers 31.8 sites is robust, with more than half of Sports 26.3 Apac web users visiting a Retail site Education 23.6 Travel 22.7 ■ Diversity of this region means there is Career Services and … 20.8 wide variation among individual Automotive 17.6 countries Health 14.8 Government 10.1

■ Entertainment Reach is highest in South Korea, Singapore, and the Philippines ■ Web users in Singapore, Japan, and Hong Kong spend the most time on Entertainment ■ Entertainment consumption is closely linked to broadband penetration, due to high bandwidth requirements of audio and video streaming and downloading

Entertainment Entertainment % Reach Avg Hours/User

Asia Pacific 71.2 Asia Pacific 2.5 South Korea 83.8 South Korea 2.7 Singapore 79.2 Singapore 4.1 Philippines 78.0 Philippines 2.5 Vietnam 76.2 Vietnam 1.8 Japan 75.7 Japan 4.3 Australia 73.4 Australia 2.3 HK 72.7 HK 3.8 Malaysia 71.0 Malaysia 2.4 New Zealand 70.1 New Zealand 2.4 Indonesia 65.9 Indonesia 1.4 Taiwan 65.7 Taiwan 1.3 India 63.8 India 1.3 China 63.8 China 2.3

■ With the exception of YouTube and a handful of others, the Top Entertainment Properties in the region are predominantly Chinese sites

Top Entertainment Sites – Asia Pacific

Average Total Unique % Reach Minutes per Visitors (000) Visitor Total Internet : Total Audience 477,217 100.0 1,015.0 Entertainment 339,708 71.2 148.5 YOUTUBE.COM 97,658 20.5 142.3 CBS Interactive 69,490 14.6 8.8 QQ.COM Music 57,901 12.1 30.8 Tudou Sites 57,866 12.1 27.0 Youku 51,308 10.8 47.4 QQ.COM Entertainment 47,018 9.9 16.5 QQ.COM Show 45,614 9.6 5.5 iTunes Software (App) 34,396 7.2 KuGou Inc. 34,328 7.2 10.3 SINA Podcast 33,932 7.1 1.4 Baidu Top Music Albums 33,913 7.1 10.3 PPStream, Inc. 33,286 7.0 54.7 Sony Online 26,554 5.6 8.2 SINA Entertainment 25,312 5.3 7.1 Xunlei Movie 23,482 4.9 7.4 RENREN.COM 22,526 4.7 129.6 AOL Music 22,330 4.7 2.9 QIANQIAN.COM 22,041 4.6 8.2

■ With 340 million Unique Visitors in Asia Pacific, YouTube is certainly the most popular Entertainment site in the region ■ In many countries, it takes a substantial share of all time spent on Entertainment content. In countries where this is not the case, local providers were able to maintain early market share

YouTube YouTube % Reach Share of Entertainment Minutes

Asia Pacific 20.5 Asia Pacific 28% Singapore 57.8 Singapore 60% Philippines 55.6 Philippines 64% Australia 47.0 Australia 60% New Zealand 46.9 New Zealand 61% Malaysia 45.0 Malaysia 59% Japan 41.4 Japan 48% Hong Kong 40.3 Hong Kong 44% Indonesia 34.2 Indonesia 49% India 30.4 India 46% Taiwan 27.7 Taiwan 35% Vietnam 25.0 Vietnam 16% South Korea 12.3 South Korea 11% China 0.1 China 0%

■ Facebook has more than YOY Aug ‘08 Social Networks Asia Pacific % Reach Increase SN Rank doubled its share in Asia 6.4% FACEBOOK.COM +9% #8 Pacific to become the 14.9% 11.7% Baidu Space leading Social Network in 11.4% 0% #2 1.3% the region QQ.COM Alumni 8.0% +7% N/A 4.7% Windows Live Profile ■ A number of social networks 4.6% 0% N/A are challenging Baidu Space 3.5% QQ.COM Mini World +1% N/A for share of the Chinese 4.7% 0.8% KAIXIN001.COM +4% N/A market in this category 4.9% 4.3% Orkut 0% #14 ■ Friendster’s reach has 4.5% 4.8% CyWorld shrunk significantly, dropped 3.8% -1% #12 4.9% its lead among the multi- 51.COM 3.7% -1% #10 regional Social Networks 3.9% HI5.COM -1% #15 competing in this region 3.3% 4.4% MySpace Sites 3.2% -1% #18 8.4% FRIENDSTER.COM 2.9% -6% #5 3.7% MIXI.JP 2.5% -1% #16 0.2% TWITTER.COM 2.2% +2% N/A 0.6% KAIXIN.COM 2.4% +2% N/A

■ Language considerations gave local Top Social Networks Social Networks in certain countries an Country Social Network Reach early-mover advantage China BaiduSpace 24% ■ Switching costs for Social Networking India Orkut 43% Regional users are relatively high, and the nature Japan MIXI.JP 17% Social of user recruitment (“friending”) lets Networks these sites maintain concentrated South Korea CyWorld 48% strongholds Taiwan Wretch.cc 58%

■ Elsewhere, translation efforts by Hong Kong Facebook 53%

Facebook have allowed it to enter non- New Zealand Facebook 48% English-speaking Asian markets, and to overtake Friendster, which initially had a Singapore Facebook 66% strong presence in Southeast Asia Australia Facebook 55% Facebook Indonesia Facebook 80%

Malaysia Facebook 39%

Philippines Friendster 69%

Vietnam Facebook 40%

■ 55.2% of web users in Asia Pacific visited a News/Info site, and spent an average of 50 News/Information Sites % Reach minutes ■ Though Japan is not the heaviest user of the Apac Reach 55.2 category overall, Japanese web users are more Vietnam 80.4 likely to visit each of the subcategories, outpacing South Korea 74.2 the regional averages Japan 67.5 Taiwan 64.4

Asia Pacific Visiting to News/Info Categories HK 60.4

% Reach Time Spent (Minutes) Australia 51.5 China 49.7 News/Information 55.2 50.6 Singapore 49.3

General News 42.7 28.0 New Zealand 47.5 Indonesia 45.5 Newspapers 27.7 22.3 Philippines 42.8 Weather 8.6 7.3 Malaysia 41.9

Politics 3.5 4.7 India 41.8

■ China and Japan lead the region in total Search volume, due to the relativerela size of their markets, but Korea, Australia, and Singapore lead the region in search activity on a normalized basis ■ Searches on Google account for two-thirds of global searches; in Asia-Pacific, Google accounts for less than 45%

Search Intensity Asia vs WW Share of Searches Average Searches per Searcher

Asia Pacific 84.5

South Korea 133.1

Australia 125.0

Singapore 124.8

Hong Kong 121.5

New Zealand 113.8

Japan 110.7

Malaysia 83.1

India 79.2

Taiwan 75.6

China 61.7

■ In most Asian markets, Google takes the lion’s share of search activity, but in a few, it takes second- or even third-seat to dominant local providers ■ Intuitive locally-focused, in-language results = strong local brand

China Google Share of Search Google Sites, Share of Searches % of Total Searches Conducted on Google 14% Baidu.com Alibaba.com Inc., 64% Asia Pacific 44.9 Corporation, 7% India 88.8 TENCENT Australia 83.3 Inc., 6%

New Zealand 79.6 All Other, 9% Singapore 71.1 South Korea Google Malaysia 70.1 Sites, 9% Share of Searches Yahoo! Japan 47.0 NHN Sites, 8% Corporation, Hong Kong 30.7 50% SK Group, 3% Taiwan 21.2 Lycos Sites, China 14.0 24%

Korea 8.5 All Other, 31%

■ Visiting to Retail sites is strongest in Japan and South Korea ■ E Commerce still certainly in its infancy in countries like Malaysia, Indonesia, and India; ■ Consumers visit retail/product sites and comparison shop online even when they are not yet confident of the security of online transactions, or would otherwise prefer to make their actual purchases offline

Retail Comparison Shopping % Reach % Reach

Asia Pacific 54.4 Asia Pacific 21.4 Japan 73.7 Japan 57.6 South Korea 69.4 South Korea 44.2 Australia 57.5 Australia 18.2 Taiwan 55.2 Taiwan 36.9 Singapore 53.8 Singapore 9.6 New Zealand 51.4 New Zealand 13.7 Hong Kong 51.3 Hong Kong 13.8 China 50.4 China 14.8 Vietnam 46.7 Vietnam 2.6 Philippines 40.2 Philippines 8.5 India 39.9 India 6.5 Indonesia 36.3 Indonesia 5.3 Malaysia 35.8 Malaysia 6.1

■ Product categories that will lead online Retail will vary by country, depending on local interest and presence of local providers % Reach of Retail Subcategories by Country

Asia South New Hong Japan Australia Taiwan Singapore China Vietnam Philippines India Indonesia Malaysia Pacific Korea Zealand Kong Retail 54.4 73.7 69.4 57.5 55.2 53.8 51.4 51.3 50.4 46.7 40.2 39.9 36.3 35.8 Comparison Shopping 21.4 57.6 44.2 18.2 36.9 9.6 13.7 13.8 14.8 2.6 8.5 6.5 5.3 6.1 Books 17.8 41.0 8.2 21.1 10.9 18.1 19.1 13.8 14.5 10.4 15.0 13.4 8.8 10.8 Computer Hardware 11.3 23.6 11.9 22.4 7.5 18.7 15.6 16.9 6.5 5.5 10.8 9.6 12.6 10.4 Consumer Electronics 11.0 14.1 25.3 8.2 12.4 11.6 9.1 17.1 9.9 8.6 4.8 7.6 12.0 4.2 Computer Software 9.2 10.5 10.1 12.1 9.5 12.9 11.3 8.6 6.1 8.8 11.4 14.1 11.8 9.6 Apparel 8.9 19.6 11.9 10.9 8.0 10.0 10.1 7.6 7.8 1.5 5.4 2.5 3.2 3.8 Health Care 5.1 9.0 0.6 2.6 1.0 2.3 2.2 1.2 7.0 0.5 1.7 1.9 0.6 1.1 Mall 5.1 14.4 15.2 2.4 0.9 0.8 1.0 1.4 3.8 0.1 0.4 0.9 0.3 0.3 Fragrances/Cosmetics 3.8 13.9 2.4 2.7 7.0 2.1 2.3 4.7 2.0 2.6 0.9 0.6 0.5 0.9 Retail - Music 3.5 14.1 2.1 4.8 2.6 3.0 3.5 6.6 1.4 0.4 2.5 1.0 1.6 1.6 Retail - Food 3.0 15.2 1.9 3.6 1.0 3.5 4.0 1.9 0.5 0.8 0.5 0.7 0.2 1.3 Department Stores 2.8 4.5 16.1 6.3 0.6 1.2 2.3 0.9 1.5 0.3 1.1 0.9 0.5 0.5 Tickets 1.9 6.9 4.2 7.1 1.8 4.0 4.4 2.9 0.3 0.1 0.4 1.1 0.3 0.5 Flowers/Gifts/Greetings 1.7 1.9 1.5 5.1 0.2 3.6 3.9 1.9 0.4 0.8 2.9 4.3 1.9 2.0 Jewelry/Luxury Goods/Accessories 1.4 2.8 0.6 3.2 0.8 3.4 1.7 2.2 1.0 0.9 1.5 1.2 0.8 0.8 Consumer Goods 1.4 7.4 0.0 0.9 0.3 1.1 1.5 0.3 0.2 0.1 0.5 0.9 0.1 0.3 Sports/Outdoor 1.4 5.5 0.9 4.6 0.4 2.2 3.4 0.9 0.1 0.3 1.4 0.6 1.2 1.0 Home Furnishings 1.3 4.5 1.0 3.0 1.4 1.3 1.2 1.4 0.5 0.1 0.8 0.7 0.5 1.1 Toys 1.2 5.1 0.6 2.8 0.7 2.1 1.9 2.3 0.1 1.9 1.4 0.5 0.9 0.8

Asia Pacific is the dominant regional audience and will be critical in the global Internet competition Web penetration will continue to increase in emerging markets within Asia, and even in markets where web usage is well-established, increased broadband adoption will drive additional consumption Though Yahoo!, Google, MSN and other U.S. brands currently lead the Top Property rankings in this region, there are a host of local sites that are already carving out regional niches, and are poised to take market share Internet usage is distinct by market – High broadband penetration drives increased Entertainment usage in Japan, Hong Kong, Singapore – Social Networks in China, India, Korea, and Japan are holding Facebook off – for now. Elsewhere, Facebook has overtaken Friendster and MySpace to be the dominant SN in the region – E-commerce and online shopping is still in its infancy in Asia In this extremely diverse region, effective localization is critical: a strong global brand is not sufficient for success. Language is important, but understanding and catering to the online and offline culture is important as well

If you have questions or comments on today’s presentation, please email Joe Nguyen at [email protected]

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