Key Insights from 2012 and What They Mean for the Coming Year

February 2013 © comScore, Inc. Proprietary. Introduction #FutureinFocus

Executive Summary Media fragmentation is occurring at light speed in comScore has been preparing for a future today’s multi-platform environment, which scenario where most people will consume content features not only computers, but smartphones, on the go and PCs would no longer be the centre tablets, gaming platforms and a seemingly ever- of the digital universe. This future is quickly increasing number of emerging devices. becoming a reality. Major media events in 2012, like the Olympics for The following report examines how the latest example, have shown us that consumers have trends in web usage, online video, mobile and become more platform agnostic in their digital search, social and shopping are currently shaping media consumption and happily switch devices the UK digital marketplace and what that means throughout the day and into the night to stay up to for the coming year, as comScore helps bring the date on email, news, social media etc. digital future in focus.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Berit Block [email protected]

Cathy McCarthy [email protected]

UK has highest engagement in Europe UK advertisers continue to invest in online Consumers in the UK spend more than 37 In December 2012, 16% more display ads were hours per month online on their PC, published than in December 2011. More than 923 representing the highest of all 18 EU billion display ad impressions were delivered across markets analysed. Movies and Job Search the web in 2012 increasing the importance for were the fastest growing categories. validation and measuring viewable impressions.

Media landscape is fragmenting Facebook remains the leading social network Nearly 1/3 of page views in the UK now Social Networks capture the largest percentage of occur on a smartphone or tablet. The rapid consumers’ time and also display impressions in the adoption of internet enabled devices is UK. There are some rising stars to watch – Tumblr, contributing to a more fragmented digital Instagram, Pinterest and Goodreads – that have all media landscape. had strong growth rates across PC and mobile.

Online video continues to grow Consumers experiment with m-commerce The online video audience in the UK grew 8 Online shopping now reaches 9 out of 10 UK percent in the past year, whilst the audience internet users on PC, while Mobile shopping is for video viewing on a mobile grew 262 growing rapidly. Our study shows that 1 in 5 Brits percent. YouTube still top video property used their smartphone to purchase a good or followed by Amazon and Facebook. service in December 2012

SETTING THE SCENE Global Overview 5 European Online Landscape 8 European Mobile Landscape 12

2013 UK FUTURE IN FOCUS Online Landscape 17 Mobile Landscape 20 Digital Audience Behaviour 25 Online Video 36 Search 41 Digital Advertising 44 Spotlight: § Social 50 § Silver Surfers 54 § Shopping 59

Conclusions 65 Tweetable Highlights 69 Methodology 70 About comScore 74

GLOBAL OVERVIEW

34% Latin Outside US Middle America East - Africa 8% 9% Asia North Pacific 87% America 42% 14% Outside US

Europe 66% 27%

13%

1996 2012

42.8 Global Average: 24.7 Hours a Month

Visitor Visitor 26.9 22.7

per 18.9 18.2

Hours

North America Europe Latin America Asia Pacific Middle East - Africa

+7% 637 596 +7%

382 408 +2% +6% +1% Dec-11 211 215 127 135 129 131 Dec-12 Unique Visitors (MM) Visitors Unique

Asia Pacific Europe Middle East - North America Latin America Africa

EUROPEAN ONLINE LANDSCAPE

Russia’s internet audience grew 15% since December 2011 and reached a new milestone: over 61 million internet users Total Unique Visitors (000) Visitors Unique Total 61,345 6,404 6,371 52,448 43,021 39,357 28,722 23,917 22,410 5,034 5,027 4,743 3,772 3,476 3,336 2,598 19,350 12,006

United Kingdom 37.3 Turkey 31.0 Netherlands 30.6 Poland 29.3 Finland 27.8 France 27.7 Europe 26.9 Russian Federation 26.1 Norway 24.9 Germany 24.6 Spain 23.8 Belgium saw the strongest Belgium 22.4 growth of time spent per Sweden 22.0 visitor across Europe. Average Hours per Visitor HoursperVisitor Average Users spent an additional Portugal 20.6 2 hours online compared Denmark 20.6 to a year ago. Ireland 19.5 Italy 18.5 Switzerland 16.6 Austria 14.4

Europe 23.1 24.2 20.6 17.5 14.7

France 15.1 17.6 20.2 19.2 27.9

Germany 15.7 19.3 19.3 24.3 21.4

Italy 20.8 21.2 23.5 19.4 15.1 % of Total Minutes Minutes Total %of

Spain 16.4 24.9 25.4 19.1 14.3

UK 20.1 22.8 20.2 19.4 17.6

Persons: 15-24 Persons: 25-34 Persons: 35-44 Persons: 45-54 Persons: 55+

EUROPEAN MOBILE LANDSCAPE

EU5 241,000

Germany 61,000

United Kingdom 49,500

Italy 48,000 241 Million

France 47,500

Spain 35,000 Total Mobile Audience (000)

© comScore, Inc. Proprietary. Source: comScore MobiLens, 3 month average ending December 2012, EU5, 13+ 13 Over 35% of EU5 Mobile Users Are Under 35 Years Old UK has Biggest Proportion of 18-24 Year Old Mobile Users

30.0 31.2 28.8 31.5 28.1 30.1

17.6 17.3 18.5 16.6 21.4 18.9

18.1 16.7 21.3 16.7 17.4 19.7

16.5 16.9 16.4 15.8 15.1 18.2

11.4 11.8 10.4 10.2 8.9 9.2 6.6 7.7 6.4 5.9 5.5 7.2 EU5 France Germany Italy Spain United Kingdom

Persons: 13-17 Persons: 18-24 Persons: 25-34 Persons: 35-44 Persons: 45-54 Persons: 55+

December 2012 was the first month all European countries crossed the 50% 64% mark for smartphone 51% penetration.

53% 57% 53% EU5 Average

66%

© comScore, Inc. Proprietary. Source: comScore MobiLens, 3 month average ending December 2012, EU5, 13+ 15 Device Share of Page Views Across Countries in Europe 20% of UK Page Views are from Mobiles and Tablets

65% 70% 75% 80% 85% 90% 95% 100%

Russian Federation 75.4% 21.3% 3.2% United Kingdom 79.4% 13.2% 6.5% Ireland 81.7% 11.5% 5.5% Norway 87.2% 6.7% 5.9% Netherlands 87.5% 4.6% 7.7% Switzerland 88.0% 6.8% 4.9% Finland 88.0% 7.6% 4.2% Austria 89.3% 7.3% 3.3% Sweden 89.9% 6.5% 3.5% Italy 90.1% 6.4% 3.3% Denmark 90.3% 5.1% 4.4% Spain 91.6% 5.8% 2.2% Germany 92.4% 4.6% 2.8% Belgium 92.7% 2.9% 4.0% France 93.1% 4.2% 2.5% Portugal 94.3% 3.6% 1.9% Poland 95.9% 3.1% 0.9% Turkey 96.5% 2.2% 1.3% PC Mobile Tablet Other

UK ONLINE LANDSCAPE

© comScore, Inc. Proprietary. UK Online Population on the Up 44.8 Million Brits Surfed the Web via a Home or Work Computer +5% 44,804 Olympics frenzy fuels internet audience growth Growth Over 1 Year Year Over 1 Growth 42,731

Total Unique Visitors (000)

9,129 8,018 7,489 7,367 7,353

5,447 51% Male 49% Female Total Unique Visitors (000) Visitors Unique Total

Age: 6-14 15-24 25-34 35-44 45-54 55+

£50K or more 31.1%

£35K-£49,999 21.2%

£25K-£34,999 15.3% HH Income

£10K-£24,999 21.8%

Under £10K 10.6%

UK MOBILE LANDSCAPE

Total UK Mobile Audience: 49.5 million Total UK Smartphone Audience: 31.7 million

Age Composition of The gender split Age Composition of Mobile Audience for smartphones Smartphone Audience is identical to the UK online audience: 51% male, 49% female 13-17 13-17 7% 55+ 9% 18-24 55+ 19% 12% 18-24 30% 15%

25-34 45-54 17% 16% 25-34 45-54 22% 17% 35-44 35-44 17% 19%

UK smartphone penetration is at 64%, but 82% of phones acquired in December were smartphones

82% 74%

Smartphone

Dec-11 Dec-12

© comScore, Inc. Proprietary. Source: comScore MobiLens, 3 month average ending December 2012, UK 13+ 22 Google Remains the Leading Smartphone Operating System Battle for 3rd place Behind Google and Apple Continues

36.6 38.2 38.7 40.2 40.6 42.1 42.4 42.9 43.6 45.4 46.6 47.3 47.7

Google

26.4 26.7 26.7 26.3 26.6 Apple 26.9 27.4 28 28.5 28.4 28 27.6 27.8 RIM Symbian 18.3 18.1 18.4 17.6 17.8 Microsoft 17.1 17.3 16.8 16.4 15.3 15.2 14.6 14.4

14.5 13.1 12.3 11.9 11.2 10.1 9.2 8.5 7.8 7.1 6.4 6.4 5.7 2.5 2.4 2.4 2.5 2.8 2.8 2.7 2.7 2.8 3 3.1 3.4 3.8 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12

7,000 +243%

6,000

5,000 Over 6 million Brits had a smartphone 4,000 as well as a tablet in December 2012

3,000

2,000 Smartphone Users (000) with Tablet UsersSmartphone Tablet (000) with

1,000

Source: comScore MobiLens, 3 month average ending December 2011 - 3 month average ending © comScore, Inc. Proprietary. December 2012, UK 13+ 24 #FutureinFocus

DIGITAL AUDIENCE BEHAVIOUR

18,000

16,000

14,000

12,000

10,000 The average UK internet user spent 6.5 hours on 8,000 social media sites during December 2012 6,000 Total Minutes (MM) Minutes Total 4,000

2,000

Social Media Services Entertainment Portals Retail Auctions

Year over Year Growth 1,384 Retail - Movies 2,764 +100%

1,181 Job Search 1,790 +51%

8,019 Computer Software 10,629 +33%

4,861 Consumer Goods 6,397 +32%

635 Pharmacy 825 +30%

4,065 Politics 5,216 +28%

2,511 Health Care 3,221 +28% Total Unique Visitors (000) Visitors Unique Total 9,661 Beauty/Fashion/Style 12,238 +27%

7,372 Lotto/Sweepstakes 9,288 +26%

9,698 Education - Information 12,158 +25% Dec-11 Dec-12

40,706

33,591 31,790

26,408 26,378 22,023 23,174 22,948 22,500 20,633 18,540 14,090 9,386 6,747 4,541 4,764 4,573 4,276 2,905 1,984

Total Unique Visitors (000) Average Daily Visitors (000)

MULTIPLE DEVICE USAGE

Connected devices are here to stay – 20% of UK page views are from mobiles and tablets

Mobile, 13.2%

PC, 79.4% Other, 20.6%

Tablet, 6.5%

Other, 0.9%

© comScore, Inc. Proprietary. Source: comScore Device Essentials, December 2012, UK – Share of browser based page views 30 Device Preferences Throughout the Day Most Weekday Tablet Usage Occurs Between 8pm and 9pm

Tablets popular at night PCs dominate working hours

Mobiles brighten the commute Share of Device Page Traffic on a Typical Workday Workday aTypical on DeviceShare of PageTraffic

© comScore, Inc. Proprietary. Source: comScore Device Essentials, Monday, 21st January 2013, UK 31 Newspapers Extend Reach via Video and Mobile The Sun Extends Reach by Nearly 17% when Accounting for Mobile

Incremental Accounting for these incremental audiences, Audience (%) media companies are able to demonstrate via Mobile significantly wider scale to advertisers. Learn more about MMX MP (Beta): 13,392 +11% www.comscore.com/MMX_Multi-Platform 12,064 11,274 +9.5% 10,295 9,650 +9.3% 8,831

5,034 +10.7% 4,546 4,748 +16.9% 4,061

2,560 1,588 1,216 1,039 702

Mail Online The Guardian Telegraph Media Independent.co.uk The Sun Online Group Total Digital Population (000) PC (Web and Video) Unique Visitors/ Viewers (000) Mobile Browsing Unique Visitors/ Viewers (000)

Sites with Highest Share of Video Viewers Compared to Total Digital Audience (Among Top 100)

Vimeo +52%

Perform Sports +40%

AOL, Inc. +16%

Dailymotion.com +14%

Adobe Sites +13%

Amazon Sites +11%

Turner Digital +10%

Disney Online +7%

Sky Sites +5%

Demand Media +5%

PC-Based Unique Visitors (000) Exclusive Video Unique Visitors (000)

Services 26,136

Search/Navigation 24,353

Retail 23,739

Social Media 23,009

Portals 22,780 Total Unique Visitors (000) Visitors Unique Total

Services 45.4

Social Media 34.2

News/Information 33.1 Average time spent accessing the internet via a Weather 23.8

Total Hours(MM) Total mobile browser in the UK: 9.5 Hours Retail 13.6 per user a month

Top 10 Mobile Websites Top 15 Apps

Apple iTunes 10,687 Google Sites 23,750 Yahoo! Stocks 6,734 Facebook.com 15,704 YouTube 6,575

Amazon Sites 10,662 Google Maps 5,349 Facebook 4,534 BBC Sites 9,574 Apple Maps 4,153

Yahoo! Sites 9,451 Google Search 3,112 Instagram 2,598 The winners of the Wikimedia Foundation 9,306 app world are Sites BBC News 2,000 Facebook, Google and Apple - keeping Twitter 1,549 Total Unique Visitors (000) Visitors Unique Total Microsoft Sites 6,951 in mind that many apps are pre- eBay 1,431 installed, while e.g. Glam Media 6,325 Skype 1,390 Instagram is actively downloaded by UK Vodafone Group 6,153 Sky Sports Live Football Score 1,303 users.

BBC iPlayer 1,168 Terra - Telefonica 5,335 Amazon Mobile 1,016

ONLINE VIDEO

8% 38,000 Online Video Growth on PC 37,000 36,000 35,000 34,000 33,000 Total Unique Viewers (000) 32,000 Dec Dec 2012 2011 Mobile Video Growth 14,000

262% 12,000 10,000 8,000 6,000 4,000 2,000 Total Unique Viewers (000) 0 Dec Dec 2011 2012

Source: comScore Video Metrix, December 2012, UK 6+

YouTube accounts for 99.7% of Google’s video viewers Top 10 Destinations for Online Content Videos Videos per Viewer

Google Sites 32,026 106.6

Amazon Sites 17,013 5.0

Facebook.com 13,520 9.6

VEVO 11,448 13.2

BBC Sites 9,479 17.7 Collective 8,637 Video 9.2

Viacom Digital 7,280 5.3

Yahoo! Sites 5,370 9.6

AOL, Inc. 5,143 21.2

Vimeo 4,410 3.4 Total Unique Viewers

Top YouTube Partner Channels by Unique Visitors (000)

VEVO @ YouTube 11,387

Warner Music @ YouTube 6,441

Google @ YouTube 6,095

Maker Studios Inc. @ YouTube 5,787

FullScreen @ YouTube 5,748

Machinima @ YouTube 5,378

Base79 @ YouTube 3,508

BroadbandTV @ YouTube 2,925

ygent @ YouTube 2,487

BBC @ YouTube 2,281

% Ads of Total Videos: Advertising is one of the most 28.8% important revenue streams for publishers. Get the insights to redesign your pages or create more effective ad packages, in real time. www.comScore.com/Monetization

% Ads of 19,554 Total Videos: 30.7% % Ads of Total Videos:

Total Videos (000) Videos Total 23.6%

% Ads of % Ads of Total Videos: % Ads of 6,744 Total Videos: Total Videos: 5,433 16.6% 47.2% 8.2% 1,493 1,219 745

News/Information - The Guardian Mail Online Telegraph Media The Sun Online The New York Newspapers Group Times Brand

242.7

195.4

160.8 149.5 138.4 138.8 133.6 131.0 127.3 125.9 124.0 118.2 118.2 117.4 115.5 105.5 103.8 93.4 89.6 SearchesperSearcher

4% 2% 2%

Google Search

Bing

Yahoo! Search

Ask Network

Share of SearchesShare of AOL Search Network

91%

DIGITAL ADVERTISING

Were the ads seen by the Top UK Display Advertisers desired target audience? Go 5,000,000 to www.comScore.com/vCE to learn more about the 4,500,000 importance of viewable impressions. 4,000,000

3,500,000

3,000,000 2,852,418 2,725,211 2,500,000 2,275,515 2,222,851 2,000,000 1,770,693 1,910,286 1,805,620 1,500,000 1,255,962 1,000,000 1,071,599

500,000 424,610 Total Number of Display Ad Impressions (000) Number of Display Total 0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

Microsoft Corporation British Sky Broadcasting Group plc

eBay, Inc. Vodafone Group Plc

Google Inc.

Top Categories by % Share of Display Ad Impressions

Social Media 11% Entertainment 2% Portals 3% 31% 3% Services

5% Community

News/Information 5% Auctions

Sports 5% Games 14% 10% Retail

11% Other

Social Networking - Received 25.8 coupon/offer/deal 16.6

Social Networking - Clicked on 26.2 advertisement 16.3

Social Networking - Read posts from 57.7 organizations/brands/events 36.4

30.3 Saw in-game ads 20.5

Scanned QR/bar code with mobile 14.5 % of 18-24 Year Old Smartphone Users phone 10.8 % of Smartphone Users

38.7 Web/App Ads: Recall seeing ads 28.0

Google Sites 44,167 130.1

Amazon Sites 21,736 8.9

eBay 20,221 38.7

Ask Network 12,989 7.7

Microsoft Sites 11,045 17.6

Facebook.com 9,990 4.0

Yahoo! Sites 8,350 16.7

Answers.com 6,759 2. Sites 5

BBC Sites 5,353 3.3

Twitter.com 3,543 8.1

Unique Searchers (000)

FOCUS ON SOCIAL, SILVER SURFERS AND SHOPPING

Median Age

31,790 37.5 Facebook.com 14,090

10,894 33.8 Twitter.com 1,763

7,644 Linkedin 968 39.8

6,697 Tumblr.com 830 29.3

2,677 Deviantart.com 368 27.9

2,415 Pinterest.com 143 34.2

2,052 Ask.fm 358 24.4

Myspace 2,005 75 32.5

Goodreads.com 1,313 77 32.1

1,083 Steamcommunity.com 136 24.8 Total Unique Visitors (000) Average Daily Visitors (000)

YoY +101% +140% Growth

+33,907% +1,112% 6,697 +717% +849% 4,893 Total Unique Visitors (000) Unique Visitors Total +163% +373% 3,420 2,415 1,313 771 235 128

Tumblr.com Instagram.com Pinterest.com Goodreads.com PC Mobile

Source: comScore MMX, December 2012, UK 6+

Year over Year Growth

Ever in month 21,962 +27%

Once to three times throughout the month 3,527 +13% Mobile Mobile At least once each week 5,024 +8%

Frequency of Accessing Frequencyof Almost every day 13,412 +20% Social Networking Sitesvia Networking Social

% of Mobile Social Media Users

Read posts from people known personally 85.5%

Posted status update 69.0% Read posts from organizations/brands/ 56.4% events Followed posted link to website 54.6%

Read posts from public figures/celebrities 50.7%

SILVER SURFERS

Composition of UK Internet Audience During 2012, the internet audience aged over 55 years grew by 11% to 9.1 12.2% Persons: 6-14 20.4% million. Total time spent for this age group even Persons: 15-24 grew by 25%. Persons: 25-34 16.7% Persons: 35-44 16.4% Persons: 45-54 17.9% Persons: 55+ 16.4%

Index* for 55+ Year Olds – Likelihood compared to Total Internet Audience

Automotive Travel Business/Finance Telecommunications Gambling

98 100 102 104 106 108 110 112 114 116 118

Source: comScore MMX, December 2012, UK 6+

**Composition Index = % of Online Visitors by Demographic Segment/% of Total Internet Users from the Demo Segment © comScore, Inc. Proprietary. x 100; Index of 100 indicates average representation. 55 Silver Surfers Try Their Luck Camelot Group (National Lottery) Attracts High Share of Over 55s

5,000 180 169 4,471 4,500 157 160 4,000 140 135 134 133 3,500 125 122 122 118 118 120 3,000 2,892 100 2,500 2,233 1,849 80 2,000 1,749 1,695 1,536 1,214 60 1,500 1,100 1,047 1,000 40 500 20 0 0

Total Unique Visitors (000) above 55 Index

In December 2012, 71% of new devices 80.0 acquired by Brits aged 55+ were 70.0 smartphones

60.0

50.0

40.0

30.0

20.0 Feature Phone

Smartphone 10.0

0.0 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12

OEM Shares in the UK OEM Shares Amongst 55+ Age Group

2% 3% 2% 4% 3% 20% 5% 10% 5% 33% 6% 10%

28% 8%

18% 30%

Nokia Samsung Apple Sony RIM HTC LG Motorola Other

DO ALL ROADS LEAD TO RETAIL?

YoY Apple has nearly Growth +0% +87% as many unique visitors on Mobile than PC

+5% +80%

+6% +75% +18% +49% 26,378

+18% +88% Total Unique Visitors (000) Visitors Unique Total 13,348 11,472 10,814 10,442 7,883 6,595 2,378 2,171 922

Amazon Sites Home Retail Group Apple.com Tesco Stores Dixons Retail Plc. Worldwide Sites PC Mobile

Source: comScore MMX, December 2012, UK 6+

Retail - Movies 2,764 +100%

Computer Software 10,629 +33%

Consumer Goods 6,397 +32%

Health Care 3,221 +28%

+17% RetailSubcategories growth strongest with Retail - Food 16,874

Apparel 19,993 +5%

Consumer Electronics 12,554 +2%

Books 4,382 +1%

Comparison Shopping 17,169 -6% RetailSubcategories weakest growth with Retail - Music 5,510 -11%

Total Unique Visitors (000)

+55% 900,000 In December 2012, 16% more display ads were published than in December 800,000 2011. UK Retailers grew the number of display ads they placed online by 51% 700,000 over the same period.

600,000 +85% 500,000

400,000 +68% +142% 300,000 N/A +608% -21% +254% +27884% 200,000 +86%

Total Display Ad Impressions (000) Display Total 100,000

Dec-11 Dec-12

1. PURCHASING 2. SHOWROOMING 3. SHARING 20% of smartphone users The smartphone, the perfect People use social media purchased a good or service companion for comparing to share what they have on their device. Price per prices, finding shop locations purchased, check into item and overall monthly etc. is with you at all stages a shop etc. spend is growing rapidly. of the purchase funnel.

Top 3 Retail Activities on a Mobile

26% 20% 19% Find Compare Research Store Location Product prices Product Features

© comScore, Inc. Proprietary. Source: comScore MobiLens, 3 month average ending December 2012, UK 13+ 63 iPhone - The Mobile Shoppers’ Best Friend 1 in 3 iPhone Users Made a Purchase via their Smartphone

33.1

iPhone users are twice as likely as Android users to shop 1-3 times a month % of Smartphone Users

19.9 20.4 % of iPhone 18.1 Users

% of Android 11.9 Users 10.6 10.3

6.7 6.2

2.6 1.8 1.6

Almost every day At least once each Once to three times Ever in month week throughout the month

CONCLUSION

ADAPTABLE ANALYTICS REQUIRED This past year saw digital media’s continued rise It’s the pinnacle of convenience for consumers, in prominence as part of peoples’ personal lives but an utter headache from an audience and in business environments. Consumers are measurement and advertising analytics quickly becoming platform agnostic in their digital standpoint. comScore has adapted to this media consumption and in today’s world they can changing digital world to become a trusted choose when and how they’d like to consume resource for understanding cross-platform content. It might be that they started watching a consumer behaviour and enabling multi-platform film at home on their TV, continued watching it on unification of all data. their smartphone on the way to work, and finished Consumers have already adopted multiple watching it in bed at night on their tablet. platforms and devices – 2013 is the year businesses need to follow if they desire a unified, platform-agnostic view of consumer behaviour.

VALIDATION MATTERS In the UK, more than 923 billion display ad comScore’s 2012 research about viewable impressions were delivered across the web in impressions, spanning over 8 EU markets and 2012 at a growth of 16 percent indicating an 14 advertiser brands, showed that an average increasing level of comfort with a medium capable of 3 in 10 ads were never actually seen by their of delivering strong marketing ROI. target audiences. It is more important than ever While delivering advertising at scale remains for advertisers to evaluate campaign viewability to improve optimisation and maximise the important, an increased premium on accountability and performance means advertisers may be return on their media spend. sacrificing quantity for quality – whether that Look for advertisers to demand more means leveraging more rich media, experimenting accountability and publishers to reconfigure site with larger ad units, or demanding ad viewability. design and ad inventory to improve performance in the coming year.

IMPROVED ACCOUNTABILITY In April 2012, it was announced that UKOM, the comScore is excited to provide the UK market leading voice for online audience measurement with important insights on today’s fragmented for advertisers, media agencies and online media digital media landscape. The ability to owners in the UK, signed an agreement understand usage across computers, confirming comScore as the new partner for online smartphones and tablets will better reflect the media measurement in the UK market as of 2013. state of digital media today, facilitate cross- platform comparisons, and enable clients to The selection of comScore followed an open tender and rigorous six-month selection process effectively manage their digital investments. by UKOM, which is jointly owned by the AOP and IAB, and governed by a cross-industry board with representatives of the IAB, AOP, ISBA and IPA.

• Dec 2012 was first month all EU countries crossed 50 percent mark for smartphone penetration

• 44.8 million people in UK used the internet in Dec 2012, up 5 percent over the year

• UK internet users spend 37 hours online per month, more than any other EU country

• UK online video audience grew 8 percent in past year, whilst mobile video grew 262 percent

• 63 percent UK smartphone penetration, 82 percent of phones acquired in Dec 2012 were smartphones

• Google captures almost 48 percent of UK smartphone OS market

• Over 6 million UK smartphone users also owned a tablet in December 2012

• Online shopping now reaches 9 out of 10 UK internet users

• 1 in 5 Brits used their smartphone to purchase a good or service in December

• Instagram’s UK mobile audience grew 1112 percent between Dec 2011 and Dec 2012

• Nearly One-Third of Web-Based Page Views in UK Are Viewed on Smartphones and Tablets

METHODOLOGY

This report utilises data from the comScore suite of products, including comScore MMX Multi-Platform (Beta), comScore qSearch, comScore Ad Metrix, comScore Video Metrix, comScore MobiLens, comScore Device Essentials and comScore GSMA Mobile Media Metrics (MMM). comScore MMX The comScore MMX suite of syndicated products sets the standard for digital audience measurement and media planning. Powered by Unified Digital Measurement™, the revolutionary measurement approach that bridges panel-based and website server-based metrics to account for 100 percent of a site’s audience, MMX delivers the most accurate and comprehensive suite of audience metrics, providing valuable demographic measures, such as age, gender, household income and household size. MMX reports on more than 70,000 entities, with audience measurement for 43 individual countries and 6 global regions, as well as worldwide totals.

The comScore MMX product suite includes individual products utilised within this report including comScore MMX Multi-Platform (Beta), comScore qSearch, comScore Ad Metrix and comScore Video Metrix. http://www.comscore.com/Products/Audience_Analytics/MMX

© comScore, Inc. Proprietary. 71 Methodology and Definitions comScore MobiLens comScore MobiLens provides market-wide insight into mobile digital media consumption, brand-level audience metrics, and details of device ownership and technology penetration. Using proprietary data collection methods, we survey nationally representative samples of mobile subscribers age 13+ in the U.S., UK, France, Germany, Spain, Italy, Canada, and Japan. The MobiLens sample is substantial enough to provide projected data for sub-segments as small as 1 percent of mobile subscribers. For 2012, the estimated monthly survey completes utilised for this report are 5,000 mobile phone owners in the UK. For the following analysis, the three-month average figures amount to a sample of 15,000 mobile users. For more information, please visit: http://www.comscore.com/Products/Audience_Analytics/MobiLens

comScore Device Essentials* comScore Device Essentials provides insight into digital traffic share across all devices worldwide, offering detail into device characteristics, connection type, and category consumption. The product is based on the comScore Unified Digital Measurement (UDM) approach, measuring browser-based page views coming from computers, mobile, and other connected devices to more than one million domains tagging with comScore. For more information, please visit: www.comscore.com/Products_Services/Product_Index/Device_Essentials

*Please note that Device Essentials has undergone a methodological enhancement with © comScore, Inc. Proprietary. December 2012 data to account for additional connected devices. 72 Methodology and Definitions comScore GSMA Mobile Media Metrics (MMM) GSMA Mobile Media Metrics (MMM) is a partnership between the GSM Association (GSMA), comScore, and the UK’s 4 mobile operators: O2, Vodafone, EverythingEverywhere and 3UK. GSMA MMM aligns the power of connected mobile data with Wi-Fi activity and rich demographics to unveil the most powerful view of the who, the what and the where of mobile web via a secure, industry-audited process. The mobile network operators provide irreversibly anonymised census-level data for mobile internet usage. Demographic data is ascribed onto the unique persistent ID for each anonymous user in the operator data. Wi-Fi usage, not seen in the mobile network traffic, is captured in server-side logs of media owners and overlaid onto the operator data to create the most comprehensive view of connected mobile activity in the UK. For more information, please visit: http://www.comscore.com/Products_Services/Product_Index/ GSMA_Mobile_Media_Metrics_MMM

comScore, Inc. (NASDAQ: SCOR) is a global leader in digital measurement and analytics, delivering insights on web, mobile and TV consumer behaviour that enable clients to maximise the value of their digital investments.

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UK Digital Future in Focus 2013

Key Insights from 2012 and What They Mean for the Coming Year

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