Video Metrix 2.0 Client Walk-Through

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The Past, Present and Future of Online Video The Changing Shape of the Online Video Market

Owen West EU Business Development Director [email protected]

Discussion Topics

NOW = The Worldwide State of Online Video

THEN = How We Got Here: The New Era of Online Video

WHY = The Drivers Behind The New Era

CASE STUDY = YouTube and The Age of Convergence

CRYSTAL BALL = The Next Era of Online Video

NASDAQ SCOR Clients 1,900+ worldwide Employees 1,000+ Local Presence 32+ locations in 23 countries 170+ countries under measurement; Global Coverage 43 markets reported Headquarters Reston, VA

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

PANEL CENSUS

Unified Digital Measurement™ (UDM)

Patent-Pending Methodology 1 Million Domains Participating Adopted by 80% of Top 100 Global Media Properties

And a behavioural© comScore, Inc. Proprietary cross and Confidential.-platform 4 measurement capability V0411 (Non Video) Stories That Have Shaped Digital in 2012

FACEBOOK IPO 1 RAISED THE PROFILE OF SOCIAL NETWORKING AND DIGITAL ADVERTISING….FOR THE BEST?!

2012 SUMMER OLYMPICS 2 ILLUMINATED THE RISE OF MULTIMEDIA & ‘ALWAYS-ON’ CONSUMPTION

SOCIAL MEDIA 3 A DEMOCRATISING FORCE AHEAD OF U.S. PRESIDENTIAL ELECTION

4 MOBILE DISRUPTING ONLINE BUSINESSES IN MANY WAYS

MIND THE ‘DIGITAL OMNIVORE’ 5 MULTI-DEVICE INCREMENTAL EFFECT & PLATFORM CANNIBALISATION

The Online Video Marketplace now offers Huge Audiences Nearly 1.3 Billion people watch an average of 170 Online Videos each per month Worldwide

July 2012 Growth since Sept 2011

Total Unique Viewers 1.3 billion 7%

Average Daily Unique Viewers 591 million 17%

Videos 214 billion 15%

Total Minutes (MM) 1.468 trillion 24%

Percentage of Total Views Consumed by Males Aged 15-34

40% 37.1% 35% 30% 29.1% 25% 20% 15% 10% 5% 0% Pages Videos

Unique Viewers (Millions) 80

70 Other 60 Males 15-34 50

10 28.2% 16.6% 17.8% 19.3% 20.0% 21.5% 41.0% 0 Germany France UK Spain Italy Russia Turkey

Unique Viewer Composition: 50% Males Aged 15-34 Jul-11 Jul-12 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Germany France UK Spain Italy Russia Turkey

*EU-3 includes UK, France and Germany

© comScore, Inc. Proprietary and Confidential. 11 Source: comScore Video Metrix, Demographic Profile, July 2012 THEN = How we got here: The New Era of Online Video in Europe The Shift from Quantity to Quality Rapid Growth of Unique Viewers and Video Views Stopped in Q1 2010 for EU-3

Unique Viewers Videos (Billions) (Millions) 140 30

120 25 100 20 80 15 60 10 40 20 5 0 0

Unique Viewers (Millions) Videos (Billions)

© comScore, Inc. Proprietary and Confidential. 13 Source: comScore Video Metrix, Media Trend *EU-3 includes UK, France and Germany A Closer Look Uncovers the Story of a Shift From Quantity to Quality at the Turn of 2011

Unique Viewers Videos (Billions) (Millions) 140 30

120 25 100 20 80 Sept 2010 – 15 60 March 2011 10 40 Change Minutes per Video +11% 20 5 Total Minutes + 3% 0 0

Unique Viewers (Millions) Videos (Billions)

© comScore, Inc. Proprietary and Confidential. 14 Source: comScore Video Metrix, Media Trend *EU-3 includes UK, France and Germany 2011 Saw the Rise to a New Era of Online Video…Continuation of Quantity to Quality...Longer Videos

Unique Viewers Videos (Billions) (Millions) 140 30

120 25 100 20 80 15 60 March – Sept 2011 Change 10 40 Minutes per Video +4% 20 5 Total Minutes + 33% 0 0

Unique Viewers (Millions) Videos (Billions)

© comScore, Inc. Proprietary and Confidential. 15 Source: comScore Video Metrix, Media Trend *EU-3 includes UK, France and Germany The Last Year Has Seen a Balancing of Topline Internet Viewing…..Early Adopters Migrating to Their Connected Devices

Unique Viewers Videos (Billions) (Millions) 140 30

120 25 100 20 80 15 60 10 40 20 5 0 0

Unique Viewers (Millions) Videos (Billions)

© comScore, Inc. Proprietary and Confidential. 16 Source: comScore Video Metrix, Media Trend *EU-3 includes UK, France and Germany WHY = The Drivers Behind the New Era of Online Video; A Quality Viewing Experience A Choice of Quality Content Convenient and Accessible A Price Worth Paying

A Quality Viewing Experience: Online Video has Come a Long Way

UGC/’Numa Numa’ Song PREMIUM/FROZEN PLANET

UGC PREMIUM

Shorter format Longer format Low budget High budget Low quality High quality Low talent/interest High talent/interest Unknown content Known content = Minimally monetised = Well monetised

Unique Viewers (millions)

4.6

2.7 2.2 1.8

0.8

© comScore, Inc. Proprietary and Confidential. 20 Source: comScore Video Metrix, July 2012, UK A Choice of Quality Content: VOD Audiences Are Loyal, Why?; Quality Content Delivered From Favourite Destinations <30 days post-airing Huge inventories 8.8m Unduplicated No Schedules Reach Personalisation Metadata

Only 2.2m Watch From 2 or More Sites

© comScore, Inc. Proprietary and Confidential. 21 Source: comScore Video Metrix, Audience Duplication July 2012, UK A Choice of Quality Content: Not Just the Big Boys….. Online Video Specialists Cultivate Niche & Attractive Audiences

2 x More Likely 77% of TED’s (228%) Than the Viewers With ‘Average’ Video Viewer Household Income to Watch Videos From >£35K Technology Sites

© comScore, Inc. Proprietary and Confidential. 22 Source: comScore Video Metrix, Demographic Profile and Cross Viewing, UK, June 2012 A Choice of Quality Content: US Powerhouses Leverage Their Existing Large Audiences in Europe

Typical Video Unique Viewers (000) in EU-7* Audience:

Social Viacom Digital 32,185 Networkers

Microsoft Sites 19,538 Gamers

Yahoo! Sites 17,339 Techies

Source: comScore Video Metrix, Key Measures and Cross Viewing (taken from UK data), July 2012

Unique Viewers (000) in EU-7*

VEVO; Music Videos 50,017

Viacom Digital 32,185

Microsoft Sites 19,538

Yahoo! Sites 17,339

Source: comScore Video Metrix, Key Measures and Cross Viewing (taken from UK data), July 2012

% Growth Index of Vimeo (UGC Video Sharing) Worldwide, September 2011=100

200

180 Total Minutes 160

140 MinutesMinutes perper Video Video 120 Unique Viewers 100

103.4m Unique Viewers Worldwide

232.3m Unique Viewers Worldwide

© comScore, Inc. Proprietary and Confidential. 26 Source: comScore Video Metrix, Key Measures, July 2012 Convenient and Accessible: Syndicated Nature of Online Video Brings Relevancy to the Viewer & Huge Advertising Opportunities

Unique Viewers (000) for Perform Sports

512 1,456 UK Italy 5,671 1,863 France Turkey Spain 2,013 Germany Russia

2,766

© comScore, Inc. Proprietary and Confidential. 27 Source: comScore Video Metrix, Key Measures, July 2012 Convenient and Accessible: Control & Visibility to User Behaviour Helps Deliver Relevant Content to Visitors

2.0m 3.0m Watchi Watchi ng on 2 ng on 2 Averageor Videos Per Sessionor on a DAx Client Site* more more sites Without Live sites Recommendations Feed 3.6 2.0 With Live Recommendations Feed

• 1 in 3 video viewers comment • 2 in 5 upload videos • 1 in 2 regularly share videos • More than 1 in 2 view online video with others

Users exposed to Top Gear’s Brand messages via their Friends on Facebook are 219% more likely than the average internet user to visit Topgear.com

Sources: comScore Custom Marketing Solutions Study (US 2011) © comScore, Inc. Proprietary and Confidential. 29 and Social Essentials, September 2011, UK Convenient and Accessible: …..Enter Mobile and Connected Devices

Unique Viewers (MILL) on Mobile Devices Help Deliver Premium Video Wherever & Whenever in EU-5 16.0 +56%

14.0 14.8

12.0 +63% 10.0 10.0 9.5 8.0 +50% 6.0 6.1 6.6 4.0 4.4 2.0

0.0 Broadcast OR On- On-demand video or TV Broadcast TV programming Demand/TV-Programming programming

June 2011 June 2012

Consumption of Videos in the UK by Video Type

July 2011 July 2012

5.2% 10.4%

Content Ads

© comScore, Inc. Proprietary and Confidential. 32 ‘Online Advertising Effectiveness in the UK’ – comScore / .Fox Network, Jan 2010 A Price Worth Paying: The Line Between Advertising and Content is Getting Thinner

The Force: Volkswagen • Over 46m Views • Over 4.7m Shares • 34% of ‘Buzz’ non- English

“We want to say to our advertisers „Produce stuff that our viewers would really like to see‟” – Chris Anderson, TED

. Every step from concept to impact can be researched, tried, tested

and understood – Message and concept – Copy, format and placement testing – Media planning – Delivery analysis and decision making – Evaluating impact and ROI

© comScore, Inc. Proprietary and Confidential. 34 CASE STUDY = YouTube and the Age of Convergence; A Quality Viewing Experience A Choice of Quality Content Convenient and Accessible A Price Worth Paying

YouTube Leads the Way

651m People watched an average of 113 YouTube videos each in July

Unique Viewers Videos (Billions) (Millions) 12 105

10 100

8 95 6 90 4

85 2

0 80 Sep-2010 Dec-2010 Mar-2011 Jun-2011 Sep-2011 Videos (Billions) Unique Viewers (Millions)

Unique Viewers Videos (Billions) (Millions) 12 105

10 100

8 95 6 Y/Y Growth 90 4 Minutes per Video +29% Total Minutes (bn) + 56% 85 2

0 80 Sep-2010 Dec-2010 Mar-2011 Jun-2011 Sep-2011 Videos (Billions) Unique Viewers (Millions)

A Quality Viewing Experience: YouTube is Moving to HD

10% of YouTube's videos are

available in HD

© comScore, Inc. Proprietary and Confidential. 39 Source: Google Press Statistics, September 2012 A Choice of Quality Content: YouTube’s Partnerships with Premium Content Providers Brings Quality Content to the Masses

28.4m Unduplicated Reach

BBC Worldwide BBC @ YouTube @ YouTube 8.5m UVs 5.9m UVs

Only 1.7m watch BBC Sites from 2 Entities or 15.8m UVs More

© comScore, Inc. Proprietary and Confidential. 40 Source: comScore Video Metrix, Audience Duplication, July 2012 Convenient and Accessible: YouTube Effectively Leverages the Internet’s Strengths to Bring the Right Content to the User Everywhere

. Syndicated – 18% of UK YouTube viewers don’t visit youtube.com in a given month . Searchable – YouTube accounts for 17% of searches in Europe . Mmmm, It’s Moreish – Recommendations account for about 60% of all video clicks from the home page . Social – 100 million people take a social action on YouTube every week . Cross Platform – 20% of global YouTube views come from mobile devices

Sources: comScore Media/Video Metrix, qSearch, July 2012 and Google Press Statistics © comScore, Inc. Proprietary and Confidential. 41 (September) A Price Worth Paying: Revenue Sharing, TrueView and Transparency Encourage Unobtrusive, Relevant Advertising

“YouTube is now being tracked Over 60% of all by comScore, giving media YouTube in-stream ads buyers real data to factor in to purchasing decisions. They‟ve are now skippable now got the tools to convince brands that they need to be transitioning TV dollars online”

Redbullusa @ YouTube 3.8m people watching an average of 6.9minutes each per month

 Convergence of content quality towards Web TV

 Linking premium content providers with a mass audience

 Low barriers to finding, sharing and viewing content anywhere & anytime

 Linking advertising with the content

 Advertising as content, with the user in control

 Openness to create transparency in the marketplace

In late 2006, YouTube was bought by Google for US$1.65 billion

. We have entered a New Age for online video; …content has emerged around quality, not quantity . Video advertising can be engaging and effective, without being intrusive; …free from old programming schedules and advertising models, video offers a platform perfect for targeted & branded promotions . The market presents huge potential and challenges …but is there to be understood . The Next Era of a converging landscape requires; …openness, transparency and partnerships as the drivers of success

Any Questions? Thank you for listening & receive the presentation directly at;

Owen West Marc Gosschalk EU Business Development Director EU Video Product Manager [email protected] [email protected]