The State of Social Media

Online Marketing Institute London, Feb 2012

Mike Shaw Director, Marketing Solutions comScore’s Innovative Approach Revolutionizes Measurement

2 Million Person Panel PERSON-Centric Panel with 360°View of Person Behavior SITE-Census Measurement

PANEL CENSUS

Unified Digital Measurement™ (UDM)

Patent-Pending Methodology Adopted by 90% of Top U.S. Media Properties

© comScore, Inc. Proprietary. 2 V1011 It is difficult to overstate the importance of social media

. Usage is nearly ubiquitous . Social media is impacting: – Geopolitics: Tunisia, Egypt, Libya, etc – US politics: 2008 election, and soon the 2012 election – Retail: Groupon visitation is up 250% versus the previous year – Marketing: Facebook is the single largest server of display inventory on the web – Consumer behavior: Social media accounts for 18% of all time spent online . The web’s connective tissue: hyperlinks  social connections

© comScore, Inc. Proprietary. 3 PercentageMore of Machines than halfIncluded of in local UDM Measurementonline populations engage in social networking.

North America North America Europe Middle East & Africa Asia Pacific

Canada 94% Argentina 96% Austria 86% Israel 94% Australia 96% 98% Brazil 97% Belgium 93% South Africa 88% China 53% Chile 94% Denmark 94% Hong Kong 93% Colombia 96% Finland 91% India 95% Mexico 96% France 91% Indonesia 94% Peru 96% Germany 90% Japan 58% Puerto Rico 90% Ireland 95% Malaysia 94% Venezuela 96% Italy 93% New Zealand 95% Netherlands 94% Philippines 96% Norway 89% Singapore 94% Poland 95% South Korea 87% Percentage of Online Population Portugal 96% Taiwan 94% Using Social Networking Russia 88% Vietnam 85% Spain 98% around the World* Sweden 93% % Reach of Online Population Switzerland 90% Turkey 96% * Data is based on the 43 countries on which United Kingdom 98% comScore reports individually.

Source: comScore Media Metrix, October 2011 The Rise of the Global Social Networking Audience 1,600 +88% 1,400 Total 1,200 +174% 1,000 Social Networking 800

600

400

200 Worldwide Total Unique Visitors (MM) 0 2007 2008 2009 2010 2011

Source: comScore Media Metrix, March 2007 - October 2011 Nearly1 in 5 minutes online is spent on social networks today.

2008 2009 2010 2011

35 Social Networking

30 Search/Navigation

Retail 25 Communications (Email/IM)

Other Content

Time Spent on Key Categories Online Worldwide Hours per Month (Billions)

Source: comScore Media Metrix, March 2007 - October 2011 1/3 of the world‟s social Middle East - Africa networkers are in 9% Asia Pacific. Asia Pacific 33% Regional Share of Europe Total Unique Visitors 30% to Social Networking

Latin America North America 10% 18%

Source: comScore Media Metrix, October 2011 Yet 5 of the most engaged markets for social networking are in Latin America.

11.1 Average Hours per Visitor 10.7 10.4 10.2 9.8 8.7 8.5 8.3 7.9 7.7

Source: comScore Media Metrix, October 2011 Average Hours per Person in Latin America 7.6 Spent on Social Networking

Average Hours per Person in Asia Pacific 2.9 Spent on Social Networking

7.6 7.2 7.0 6.4 2.9 % Latin Middle East Europe North Asia Pacific America - Africa America

Average Engagement with Social Networking by Region Average Hours per Visitor

Source: comScore Media Metrix, October 2011 Social Media sites draw more UK visitors than retail, e-mail, and news sites

% Reach 95.3 100 93.5 89.5 90 80 73.7 70 64.2 63.7 60 51.0 50 40 30 20.2 20 10 0

Source: comScore Media Metrix, January, 2012

© comScore, Inc. Proprietary. 10 The Growth of Today‟s Social Networking Leaders

2007 2008 2009 2010 2011

900

800

700 Facebook

600

500 LinkedIn

400

300

Total Unique Visitors (MM)

Source: comScore Media Metrix, March 2007 - October 2011 + surged to 25 million visitors in less than a month – faster than any other social network.

Months to Reach 25 Million Visitors 0 5 10 15 20 25 30 35

<1 month to Google+ MySpace Twitter Facebook reach 25 million

Total Unique Visitors (MM)

Source: comScore Custom Analytics, July 2011 Social Media‟s Online Audience Across all regions, women are more social.

8.2 Latin America 6.9 8.2 Europe 6.3 7.9 North America 6.0 3.3 Asia Pacific 2.7 6.5 Worldwide 5.0

Females 15+ Males 15+

Average Engagement with Social Networking by Gender Average Hours per Visitor

Source: comScore Media Metrix, October 2011 Males and users 55+ represent the fastest growing segment in social networking.

+5.0 +8.0 +8.4 +5.3 84.4% +8.4 +9.4 +9.3 83.9% 83.0% 82.9% 81.0% 80.0% 79.9% 79.4% 78.7%

75.0% 74.6% 71.6%

70.6% 71.7% % Reach %

Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+ Males Females

July-10 October-11

Social Networking Penetration Among Worldwide Demographic Groups % Reach

Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010 Women still spend more time on social than men, but the gender gap is narrowing for younger demographics.

4.9 Age 55+ 2.7 6.4 Age 45-54 Females 3.9 Males 5.6 Age 35-44 3.9 5.8 Age 25-34 4.9 8.6 Age 15-24 7.5 Average Hours per Visitor

Social Networking Engagement Among Worldwide Demographic Groups Average Hours per Visitor

Source: comScore Media Metrix, Worldwide, October 2011 saw the largest decline in engagement with web-based 15-24 year olds email and instant messaging

34% 25% 21% 15% 12% 1%

-4% -3% -8%

-22% -32% -37% -34% -36% -42% Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+

Instant Messengers Email Social Networking

Change in Average Time Spent with Content Category by Age Segment

Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010 …but also saw the highest increase in engagement with social networking.

34% 25% 21% 15% 12% 1%

-4% -3% -8%

-22% -32% -37% -34% -36% -42% Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+

Instant Messengers Email Social Networking

Change in Average Time Spent with Content Category by Age Segment

Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010 Social For digital natives, Networking social networking 483.0 is the norm. Instant Messengers

264.7

Email

67.1

Average Minutes per Visitor (15-24)

Source: comScore Media Metrix, Worldwide, October 2011 Social Media‟s Impact on Marketing 3 Facebook‟s worldwide site rank Facebook‟s global 55% penetration

Source: comScore Media Metrix, October 2011 in 4 minutes on social networking 3 sites are spent on Facebook in 7 minutes spent online 1are spent on Facebook

Source: comScore Media Metrix, October 2011 Today, there are only 7 markets where Facebook is not the leading social network.

Russia Poland Japan China South Korea Vietnam Brazil

Source: comScore Media Metrix, October 2011 Facebook is the largest publisher of online display ad impressions, attracting a “long tail” of smaller advertisers.

Publisher Share of Display Ad Impressions

Source: comScore Ad Metrix, U.S., Q3 2011 Despite Social Networking‟s leadership in the display ad market, it is not yet attracting its fair share of online ad dollars.

27.7% Display Ad Impressions

20.7% Page Views

16.9% Time Spent Online

14.8% Display Ad Estimated Spending

Social Networking Share of Key Metrics

Source: comScore Ad Metrix and Media Metrix, U.S., October 2011 75% of ads will become socially enabled by 2015

Google makes 7 predictions for display advertising market by 2015

1. 50% of online ads will have video in them

2. 50% of all targeted display advertising will rely on real-time bidding

3. Mobile will become #1 screen for advertising

4. New metrics will emerge to measure success of ad campaigns

5. 75% of ads will become socially enabled

6. 50% of brand campaigns will run rich media in ads

7. Display advertising will become a $50 billion industry

Source: Google's Seven Display Ad Predictions http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=136685

© comScore, Inc. Proprietary. 26 1 out of 12 display ads are socially-enabled. Among CPG advertisers, 1 out of 6 display ads are socially-enabled.

Socially Enabled, 8.2% Socially Enabled, Display Ad16.7% $

Display Ad Impressions Total Internet Display Ad Impressions CPG Advertisers

All All Other, Other, 91.8% 83.3%

Source: comScore Ad Metrix Social, U.S., November 2011 Are Facebook Brand Pages the new microsite? Yes, if CPG advertisers are any indication

Click Through Destination for New CPG Banner Ads NOT Running on Facebook

Facebook, 15%

Amazon, 6% All Other, 76% YouTube, 3%

© comScore, Inc. Proprietary. 28 Leading Brands on Facebook Globally

Leading brand pages by fan volume include FMCG, technology, clothing & leisure

40.0 Global Facebook Fans (m) 34.4 35.0

30.0 25.3 25.0 23.1 22.4 20.8 19.3 20.0 17.4 15.6 15.3 14.3 15.0 12.3 12.2 11.3 11.3 11.2 10.7 10.5 10.5 10.4 10.2 10.0

5.0

-

Source: Facebook fan pages & www.famecount.com, September 2011 © comScore, Inc. Proprietary. 29 The Power of Like: White Paper from comScore & Facebook

To download white paper please visit www.comscore.com/like

© comScore, Inc. Proprietary. 30 49% of time spent on Facebook is spent on the Newsfeed and Profile pages

Share of Time Spent on Facebook.com by Content Section Source: comScore Mediabuilder, U.K., Dec 2011

29% 32% Homepage/News Profiles Photos Apps/Tools 6% All Other 17% 17%

© comScore, Inc. Proprietary. 31 Brands control the three basic levers that will determine social media marketing success.

Many brands don’t consider these intermediary steps

Brand Fans “Talk News Feed Goal: Max Get Fans Messages About” Content (Who are Reach Fans News Feed Spreads to Reach, they?) in News Feed Content Friends ROI

1. Cut-Through 2. Engagement 3. Amplification The vast majority of brand exposure happens in the Newsfeed and on Profile pages

Starbucks received 156 impressions for every 1 page view on their brand page

Starbucks, Southwest & Bing: Ratio of Facebook Impressions for Fans & Friends of Fans to Page Views on Brand Fan Pages Source: comScore Social Essentials, U.S., May 2011 180 156 160

140

120

100

80 60 42 45 40

20

0 Starbucks Southwest Bing

© comScore, Inc. Proprietary. 33 Understanding How Facebook Works For Brands

Facebook Fans are NOT regular visitors to Facebook Fan Pages. Marketers need to reach out to Fans in their News Feed with relevant content!

Monthly Unique Visitors Brand No. of Fans To Facebook Fan Pages Coca Cola 24.0 Million 39,000

Oreos 17.5 Million 137,000

Best Buy 2.7 Million 175,000

Source: comScore, US data, Oct 2011

© comScore, Inc. Proprietary. 34

Friends of Fans represent a way for brands to efficiently amplify their reach substantially beyond Fans

Earned Exposed Fans Reach Frequency GRP FANS Impressions

Southwest 661K 2,457K 0.3% 3.7 1.1 Bing 1,070K 3,353K 0.5% 3.1 1.6 Starbucks 4,841K 13,664K 2.2% 2.8 6.3

Earned Exposed Friends Reach Frequency GRP FRIENDS Impressions

Southwest 853K 1,460K 0.4% 1.7 0.7 Bing 2,035K 3,183K 0.9% 1.6 1.5 Starbucks 8,846K 18,073K 4.1% 2.0 8.4

Friends expand Fans Reach by 33% to 86%

© comScore, Inc. Proprietary. 35 Fans and Friends of Fans exposed to earned brand impressions on Facebook exhibit higher brand engagement, than the average user

Friends Friends

Friends

Baseline Internet User

Source: comScore Social Esessentials May2011

© comScore, Inc. Proprietary. 36 Brand Exposure in Social Media Tends To Lead To Significantly Higher Usage of Owned Media

Football club website reach amongst UK Internet Users

30.0 26.9

25.0 23.2

20.0 18.7

15.0

10.0 7.6 6.6 6.8 5.0 1.6 1.4 1.3 0.0 Total Exposed Exposed Total Exposed Exposed Total Exposed Exposed Internet Friend of Fan Internet Friend of Fan Internet Friend of Fan Fan Fan Fan

Source: comScore Social Essentials, July 2011

© comScore, Inc. Proprietary. 37 Exposed Fans also tend to spend more at Starbucks than the average Internet user

Starbucks: Fans & Friends of Fans Purchase Activity vs. Average Internet User Source: comScore Social Essentials, U.S., May 2011

12% 11%

10% 8% 8%

6%

4%

2%

0% Spending per Buyer Transactions per Buyer

© comScore, Inc. Proprietary. 38 And Finally… Mobile Social Networking: U.S. Smartphone Owners Lead the Way

63.3% Smartphone 44.5% Smartphone owners accessed at least owners accessed at least once in month once in month

61.5% Smartphone 38.4% Smartphone owners accessed at least owners accessed at least once in month once in month

60.7% Smartphone 37.9% Smartphone owners accessed at least owners accessed at least once in month once in month

47.4% Smartphone 34.7% Smartphone owners accessed at least owners accessed at least once in month once in month

Product: MobiLens Data: Three month average ending September 2011* (*with the exception of Japan , Canada - 1 month data September 2011) © comScore, Inc. Proprietary. 40 Country: US, N= 30,659, EU5, N= 67,003, JP, N= 5,000 , CA, N= 5,500 Smartphones drive mobile social networking use.

64.1%

45.2% 38.8% 40.4% 36.5%

23.1% 25.4% 22.8%

U.S. EU5

Accessed Social Networking Site or Blog Almost Every Day U.S. EU5

Accessed Social Networking Site or Blog Ever Accessed Social Networking via App in a Month Accessed Social Networking via Mobile Browser % of Smartphone Audience

Source: comScore MobiLens, 3 Month Average Ending October 2011* Tablets and Connected Devices: The Future of Mobile Social Networking?

Incremental Reach and Duration of Time Spent on Selected Categories Relative to Computer Use for iPhone and iPad Owners

Incremental Reach Incremental Duration

Total Internet 0.2% 2.0x

Maps 56.8% 9.2x

News/Information 28.9% 1.6x

Email 23.6% 1.9x

Social Networking 12.5% 2.8x

Retail 8.7% 2.5x

Source: comScore Custom Analytics, U.S., September 2011 Summary

• Social networking is the most popular online activity worldwide • It‟s not just young people using social networking anymore – it‟s everyone • The importance of Facebook cannot be overstated • „Digital natives‟ suggest communications are going social • Social networking leads in online display advertising volumes, but lags in corresponding share of budget • Mobile devices are fueling the social addiction Thank You

Mike Shaw Director, Marketing Solutions

[email protected]