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State of the Global Internet with Lessons Learned from Measurement of Online Advertising

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State of the Global Internet with Lessons Learned from Measurement of Online Advertising State of the Global Internet With Lessons Learned from Measurement of Online Advertising Gian Fulgoni Executive Chairman and Co-Founder, comScore Inc Discussion Topics . A Brief Introduction to comScore . Key Trends in Global Internet Behavior . Lessons Learned About Online Advertising: – The Click – The Cookie – Ad Visibility – Facebook © comScore, Inc. Proprietary. 2 comScore is a Global Leader in Measuring the Digital World NASDAQ SCOR Clients 1,900+ worldwide Employees 1,000+ Headquarters Reston, VA 170+ countries under measurement; Global Coverage 43 markets reported Local Presence 32+ locations in 23 countries © comScore, Inc. Proprietary. 3 V0411 comScore’s UDM Approach Leverages the Best of Panel and Server Data 2 Million Person Panel PERSON-Centric Panel with 360°View of Person Behavior SITE-Census Measurement Web Visiting & Search Online Behavior Online & Offline Advertising Buying Exposure PANEL CENSUS Advertising Transactions Effectiveness Media & Video Demographics, Consumption PANEL Lifestyles & Attitudes Unified Digital Measurement™ (UDM) Mobile Internet Usage & Behavior Patent-Pending Methodology 1 Million Domains Participating Adopted by 80% of Top 100 Global Media Properties And, a behavioral© comScore, Inc. Proprietary. cross -platform4 measurement capability V0411 The U.S. Is No Longer the Center of the Online Universe U.S. Internet Population vs. Rest of the World Distribution of Worldwide Internet Audience Middle East - Rest of the Africa, World 34% Latin America, 8.8% 9.0% Asia 87% North Pacific, America, 41.3% U.S. 14.6% 66% Asia Pacific Europe, 13% 26.4% 1996 2011 . In 1996, 2/3 of world’s Internet population was in the US, yet today Asia Pacific is the largest region with over 40% of online population. Many emerging regions likely to bypass old modes, skipping dial-up to go straight to broadband, making multimedia, video, and collaborative content immediately accessible. Early adoption of mobile web in addition to PC web will likely be popular in many of these high- growth areas. © comScore, Inc. Proprietary. 5 Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011 Asia Continues Significant Growth in Size of Internet Audience . Growth expected to continue as home Worldwide Online Population broadband penetration increases in Asia (Millions) and Latin America +9% . Growth in developing regions likely to 1,444 also continue as people move from 1,323 shared-access to home & work use . Growth slow in North America 2010 Dec 2011 Dec . European growth mostly driven by Russia +11% Dec-11 Dec-10 595 534 +6% +3% 381 361 +15% +14% 210 203 129 112 126 111 Asia Pac Europe North America Latin America Middle east Africa © comScore, Inc. Proprietary. 6 Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2010 and Dec 2011 Shared-Access Environments Make up Significant Portion of Total Population in Some Regions . Shared-access population in India is almost as large as the Internet population accessing from work and home 331 Unique Visitors (MM) 15+ H/W Other 105 47 43 52 32 25 29 11 12 China India Brazil Mexico Indonesia © comScore, Inc. Proprietary. 7 Source: comScore Media Metrix, Dec 2011 Size of Online Audience in BRIC countries, 15+ Home & Work . Significant growth in BRIC countries in the past year, particularly in China, where 13% growth represents 40 million new web users from work & home . Growth similarly high in many Latin American and Asian markets Online Population Sizes (MM) BRIC +13% Dec-10 Dec-11 331 291 +12% +15% +15% 42 47 45 52 46 53 China India Brazil Russia © comScore, Inc. Proprietary. 8 Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2010 to Dec 2011 India Internet Users are Much Younger than Global Average . Internet audience in India skews dramatically younger: 75% of web audience is under 35, compared to 52% of the world and 55% of the region Composition of Internet Audience 15+ Worldwide 26 26 22 14 12 Asia Pacific 28 27 23 12 9 75% India 33 41 17 6 3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 15-24 25-34 35-44 45-54 54+ © comScore, Inc. Proprietary. 9 Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2011 India’s Usage Relatively Low Compared to Some Other Countries . Web users in China and India are lighter users than Russians and Brazilians . Expect usage rates to increase as home/work Internet penetration increases and broadband becomes more readily available Total Hours Online per Visitor WW AVG: 24.4 Russia 25.1 Brazil 26.7 Indonesia 16.4 Mexico 21.1 China 14.1 India 13.0 © comScore, Inc. Proprietary. 10 Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2011 Young People Drive Internet Consumption in India Today, Suggesting Future Overall Usage Will Rise Dramatically . 25-34 year olds are India’s heaviest Internet users Time Online by Age Total time in Billion Minutes 16 14.9 14 12.4 12 10 8 6.1 6 4 2 2 0.87 0 15-24 25-34 35-44 45-54 55+ © comScore, Inc. Proprietary. 11 Internet Audience 15+ accessing Internet from Home or Work Source: comScore Media Metrix, Dec 2011 Social Networking Has Exploded Globally Millions of Monthly Users In Oct 2011 Around the world, Social Networking 1,179.4 now reaches billion 916.8 1.2 users 444.9 82% of the world’s online population Total Unique Visitors (MM) Visitors Unique Total Email Instant Social 95% Messengers Networking Reach among Source: comScoreIndia Media online Metrix, October users 2011 © comScore, Inc. Proprietary. 12 The Rise of the Global Social Networking Audience Worldwide Total Unique Visitors (MM) 1,600 1,400 +88% Total Internet 1,200 1,000 +174% Social 800 Networking 600 400 200 0 2007 2008 2009 2010 2011 Source: comScore Media Metrix, March 2007 - October 2011 © comScore, Inc. Proprietary. 13 Nearly 1 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 © comScore, Inc. Proprietary. 14 3 Facebook’s worldwide site rank Facebook’s global 55% penetration 2 Facebook’s India site rank Source: comScore Media Metrix, October 2011 © comScore, Inc. Proprietary. 15 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 © comScore, Inc. Proprietary. 16 Since 2010, Facebook has taken the lead in 6 new markets across Asia, Latin America, and Europe Jan-2010 Apr-2010 Jul-2010 Oct-2010 Jan-2011 Apr-2011 Jul-2011 Oct-2011 Facebook 788MM Facebook overtakes overtakes StudiVZ in Windows Germany Live in Portugal Facebook Facebook overtakes Hyves overtakes Yahoo! in the Holland 471.4 Facebook Wretch in Taiwan overtakes Facebook Orkut in India overtakes Windows Live in Mexico Facebook’s Ascent in Recent Years Total Unique Visitors (MM) Source: comScore Media Metrix, January 2010 - October 2011 © comScore, Inc. Proprietary. 17 Social Networking is Not Just Facebook linkedin reaches 1@ in 8 online users in India and 1 in 14 @ worldwide Twitter reaches 1 in 12 online @ users in India and 1 in 10 users worldwide Source: comScore Media Metrix, Worldwide, October 2011 © comScore, Inc. Proprietary. 18 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 © comScore, Inc. Proprietary. 19 …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 © comScore, Inc. Proprietary. 20 Online Advertising: Lessons Learned © comScore, Inc. Proprietary. 21 Some things we’ve learned about online advertising • The click is at best an incomplete and at worst a misleading metric • Display advertising is an efficient and effective way to build sales both online and offline • Accurate delivery of media plan is critical • Facebook is a very efficient way to amplify reach and persuasiveness © comScore, Inc. Proprietary. 22 Clickers represent a small and declining segment of Internet users •There were 50% fewer clickers in 2009 (16%) than in July 2007 (32%) • 8% of all Internet users account for 85% of all clicks • Optimizing against clicks means ignoring 84 percent of Internet users July 2007 March 2009 Clickers Clickers 16% 32% Non- Non-Cli Clickers 68% cker84 % Source: comScore, Inc. Custom Analysis, Total US Online Population, persons, July © comScore, Inc. Proprietary. 23 2007 and March 2009 data periods Global Click Rates on Individual Campaigns are Pitifully Low Worldwide Click-Through Rates* Austria 0.05% France 0.11% Finland 0.05% Italy 0.11% UK 0.07% Germany 0.11% Canada 0.08% Belgium 0.11% Australia 0.08% Denmark 0.11% U.S. 0.09% New Zealand 0.13% Spain 0.09% Netherlands 0.15% Switzerland 0.09% Greece 0.17% Singapore 0.09% India 0.19% Ireland 0.10% Hong Kong 0.22% Luxemburg 0.10% China 0.64% *Click-through rates across static image, flash and rich media formats Source: DoubleClick Benchmarks data representing a cross-section of countries, Jan to Dec, 2010 © comScore, Inc.
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