Key Insights from 2011 and What They Mean for the Coming Year

Introduction to 2012 Canada Digital Future in Focus

Technological innovations in digital device hardware and software have enabled a rapid increase in consumers‟ digital consumption habits, marking an exciting time for the digital media industry and depicting an even more influential year ahead. Successful navigation of this fast-evolving landscape requires a thorough review of the current environment, and more importantly, the underlying trends that are shaping the future of digital.

comScore presents the 2012 Canada Digital Future in Focus, its annual report on the

prevailing trends in general web usage and demographics, social media, online video,
digital advertising, mobile and search that are defining the current Canadian marketplace and insights into what these trends mean for the year ahead. For further information, please contact: Kevin Duong comScore, Inc. kduong@comscore.com +1 416.646.9981

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Table of Contents

Executive Summary Overview of Canadians Online The Category Perspective Social Networking comScore/PMB Fused Database Online Video Digital Advertising Mobile comScore Canada Custom Reporting Conclusion: Putting the Future in Focus 2012 About comScore

4 5 9 14 20 29 34 38 43 46 50

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Executive Summary

 Canada continues to lead the world in online engagement, with visitors spending an average 45 hours per month online, representing a fertile ground for digital marketers and advertisers.  Movie Retailer, Online Trading and Coupon sites represent the fastest-growing categories in terms of unique visitors.  While Facebook is nearing a point of visitor saturation in Canada, other social networks‟ visitor bases are posting strong growth, including Twitter, LinkedIn and Tumblr. Engagement on many social sites is trending upward, with Facebook driving the large majority of the increase in total minutes and page views for the overall category.

 Online video is becoming an increasingly popular channel, with total videos viewed up 58 percent. YouTube continues to dominate the marketplace, representing nearly 1 in every 2 videos viewed in Canada.
 Display advertising is evolving to be more social, not only with the rise of “socially-published ads” (i.e. those published on social networking sites), but also the increase of “socially-enabled” ads running across the web that direct click-throughs to the brand‟s Facebook fan page.  Smartphone penetration has reached 45 percent in Canada, with daily mobile content usage growing more than 50 percent in several key content categories.

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Overview of Canadians Online

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Canada‟s online population continues to lead in engagement

#1
Total Unique Visitors (000) Location Worldwide China U.S. Japan Germany India Brazil France U.K. S. Korea Italy Canada Q4 2010 1,314,031 287,451 181,239 72,913 49,257 45,692 41,827 41,170 39,335 38,581 30,155 22,945 Q4 2011 1,398,117 317,506 185,868 73,301 50,298 44,634 43,638 42,463 37,841 30,607 23,642 23,395 Average Hours/Visitor Q4 2010 23.1 13.5 35.3 18.4 24.1 21.8 26.6 11.9 25.8 32.3 27.7 43.5 Q4 2011 23.8 13.2 38.6 19.9 24.8 12.6 26.9 27.5 35.4 30.0 18.0 45.3

#2
Average Pages/Visitor Q4 2010 2,133 1,238 2,953 1,928 2,858 2,704 2,752 1,089 2,089 2,883 4,093 3,349 Q4 2011 2,271 1,274 3,360 2,144 2,894 1,178 2,145 2,817 3,223 4,035 1,919 3,781

#1
Average Visits/Visitor Q4 2010 53.0 38.6 80.9 43.8 60.0 52.9 68.7 30.6 56.5 69.4 50.1 95.2 Q4 2011 54.3 36.7 85.9 48.4 61.4 31.2 56.7 70.2 78.0 55.1 42.5 98.5

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Source: comScore, Inc., Media Metrix, Home & Work, Persons: 15+, 3 Mo. Avg. Q4 2010 & Q4 2011

Persons 55+ accessing the fixed Internet are increasing rapidly
Growth of Online Users by Age Q4 2010 vs. Q4 2011

10,000 9,000 Total Unique Visitors (000)

+2%

8,000
7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Persons: Under 18 4,690 4,493 -4%

-1% +6%

8,767 6,760 6,685

8,934

4,747

5,047

Persons: 18-34

Persons: 35-54

Persons: 55+

Q4 2010
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Q4 2011

7 Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, Dec 2010 – Dec 2011 Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011

Demographic Breakdown: Canada
Regional Breakout
Atlantic 7% British Columbia 13% Praries 18%

Ontario 38%

Quebec 24%

Age Segments by Gender
% Composition UVs Males Under 18 18-24 25-34 35-44 45-54 55+ 0% 4% 9% 4% Females 9% 35% 30% 25%

Household Income (CAD)
32% 27% 19% 19%

9%
9% 9% 9%

9%
9% 8% 11% 20%

20%
15% 10%

5%
0% Less than $40,000 $40,000 $74,999 $75,000 $99,999 $100,000 or more

5% 10% 15% % Composition Unique Visitors
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Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2011

The Category Perspective

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Social Networking and Entertainment sites now account for the greatest share of time spent online
Share of Time Spent (%)
25% Change vs. Dec-2010 +2.7pts 20% +4.1pts -4.9pts -1.4pts 10% +0.0pts -3.5pts 5% +0.1pts +0.5pts Games Retail Entertainment Portals e-mail News/Information Instant Messengers Social Networking

15%

0%

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Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, Dec 2010 – Dec 2011

Netflix made a big splash in its first full year in Canada, driving the Movie Retailers category to record heights
Top 10 Gaining Site Categories*
Q4 2010 7,000 6,000 Total Unique Visitors (000) 5,000 4,000 +31% 3,000 +106% 2,000 1,000 +81% +36% +28% +50% +27% +26% Q4 2011 +25%

+28%

0

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*Excluding Publisher & ISP Categories 11 Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011

Content Consumption Profile: Household Income More Than $60K

Approximately two-thirds of Canadian visitors to Political News and Education Information sites have a Household Income of more than $60,000.
% Composition Unique Visitors 68% % Composition Unique Visitors 67% 66% 65% 67% 115 114 64% 110 109 107 107 106 106 104 112 64% 65% 111 Composition UV Index 116

64%
63% 62% 61% 60% 59% 58% 57%

63%

63%

110 62% 62% 61% 61% 108 106 104 104 102

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Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, HHI: Over $60K, 3 Mo. Avg. Q4 2011

Composition UV Index

Content Consumption Profile: Household Income Less Than $60K
Whereas, approximately half of Canadian visitors to Personals, Travel Transactions and Online Gambling sites have a Household Income less than $60,000.
% Composition Unique Visitors 53% 52% % Composition Unique Visitors 51% 50% 49% 48% 47% 46% 114 45% 44% 43% 114 113 112 112 121 52% 126 50% 50% 122 120 48% 47% 47% 46% 46% 46% 46% 120 118 116 114 Composition UV Index 128 126 Composition UV Index 124

111

112 111 110

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Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, HHI: Under $60K, 3 Mo. Avg. Q4 2011

Social Networking

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Social continues to permeate the fabric of the Web, showing especially strong growth from an engagement perspective
Total Minutes (MM) on Social Networking Sites
Q4 2010 12,000 Q4 2011 +32% 10,708 10,000 8,105 8,000 15,000 6,000 14,844 20,000 25,000 +39% 20,648

Total Pages (MM) on Social Networking Sites
Q4 2010 Q4 2011

10,000
4,000 5,000

2,000

0 Total Minutes (MM)
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0 Total Pages (MM)
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Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011

Persons 18-24 are exhibiting the strongest surge in engagement with Social Networking sites
Avg. Hours per Visitor by Age on Social Networking Sites
Q4 2010 Q4 2011 5.9 9.4 6.5 10.8 6.6 8.7 6.3 7.3 5.5 6.2 3.7 5.4 0 2 4 6 8
Proprietary.

Avg. Pages per Visitor by Age on Social Networking Sites
Q4 2010 Q4 2011 648 1,173 711 1,326 722 1,006 666 827 607 661 425 581 0
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Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011

Persons: Under 18 +59% Persons: 18-24 +67% Persons: 25-34 +33%

Persons: Under 18

+81%
Persons: 18-24 +87% Persons: 25-34 +39%

Persons: 35-44 +16%
Persons: 45-54 +14%

Persons: 35-44 +24%
Persons: 45-54 +9%

Persons: 55+
+46%

Persons: 55+
+37% 10 12

500

1,000

1,500

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Females are currently more engaged on Social Networking sites, but males are catching up
Average Hours per Visitor by Gender on Social Networking Sites
Q4 2010 Q4 2011 4.7 6.5 6.6 8.8 0 1 2 3 4 5 6 7 8 9

Males

+39%

Females

+33%

10

Average Pages per Visitor by Gender on Social Networking Sites
Q4 2010 Q4 2011

Males

517
774

+50%

Females

726
999 0 200
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+38%

400
Proprietary.

600
17

800

1000

1200

Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011

Facebook‟s audience growth is nearing saturation in Canada, but users are spending more time on the site and visiting more frequently
+20% Total Minutes (MM) 12,000 +15% Total Visits (000) 1,050,000

10,000

1,000,000

Total Minutes (MM)

950,000 6,000 900,000 4,000 850,000

2,000

0

800,000

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Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, Dec 2010 – Dec 2011

Total Visits (000)

8,000

Many Social Networking sites across the landscape are witnessing terrific growth in visitors and minutes
Select Social Networking Sites Total Unique Visitors (000)
Q4 2010 Q4 2011

Total Minutes (MM)
Q4 2010 Q4 2011

Twitter.com

3,396

+60% 5,427

Tumblr.com

70 337

+382%

LinkedIn.com

2,951 4,104

+39%

Twitter.com

56 110

+98%

Tumblr.com

1,035

2,896

+180%

LinkedIn.com

38 65

+70%

Pinterest.com

378 0

+364% since Q2 2000 4000 6000

Pinterest.com

17 0

+2,038% since Q2

200

400

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Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2010, Q2 & Q4 2011

comScore/PMB Fused Database

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About comScore/PMB Fused Database

Since 2010, comScore and Print Measurement Bureau (PMB) have released a joint product offering that links Canadians‟ online media habits with print readership and other media consumption data, along with product and brand usage, all in one, single

database.

The comScore and PMB databases were combined using a state-of-the-art, sophisticated data linkage technique to ensure that the audience data from the two original databases are retained as well as the extensive PMB product and brand usage data. The fused database is released twice per year, in spring and fall, and is available exclusively to PMB members and comScore Canada clients.

The following examples use the Spring 2011 fused database to demonstrate the unique analyses that can be created using the comScore/PMB fused database.
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Auto site visitors are 13 percent more likely to love expensive sports cars, 9 percent more likely to attempt maintenance work

I love expensive sports cars

113

I try to do car maintenance work myself as much as possible

109

Given the choice, I'd always choose a full size/luxury auto

104

The choice of car tells a great deal about a person

101

I refuse to buy a car that is not fuel efficient

101

If possible, I use a local gas station for car maintenance/service
Interestingly, they are 6 percent less likely to become attached to their car

95

I get quite attached to my car
0
22

94
50 Index 100 150

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Source: comScore/PMB, 2011 Spring Fusion

Of Canadians visiting Auto sites, most are spending between $20,000 and $29,999 or under $10,000 on most recently acquired vehicle
$ Spent on Most Recently Acquired Vehicle*
Audience (000) 2,500 2,163 2,054 2,000 110 1,500 1,229 1,000 103 1,058 100 99 500 399 272 95 104 1,032 103 100 105 115 115 Index 120

Audience (000)

110 Index

0 Under $10,000 $10,000 $14,999
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90 $15,000 $19,999
Proprietary.

$20,000 $29,999
23

$30,000 $39,999

$40,000 $49,999

$50,000+

*Excluding “Not Stated” Source: comScore/PMB, 2011 Spring Fusion

Business/Finance site visitors are 9 percent more likely to consider themselves entrepreneurs and 6 percent less likely to seek expert advice

I consider myself an entrepreneur

109 106 106 106 100 100 99 98 97 94 80 90 100 Index 110 120

My main goal is to make a great deal of money as quickly as possible
I will welcome a cashless society I am more of a spender than a saver I always have an accurate account of my financial commitments

I spend money more carefully than I used to
I have taken steps to ensure I have suff. income for my retirement I prefer to postpone a purchase than to buy on credit I consider myself to be a risk adverse investor I seldom make a financial move without consulting an expert

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Source: comScore/PMB, 2011 Spring Fusion

Of Canadians visiting Business/Finance sites, most use Internet banking for Paying bills, Account queries and Transferring funds
Personally Used Internet Banking in Past 3 Months for*…
Audience (000) 8,000 7,000 6,000 Audience (000) 5,000 4,000 3,000 2,000 1,000 0 1,401 1,280 1,134 117 4,716 121 121 6,732 6,152 127 Index 138 140 135 130 125 125 120 115 110 971 635 625 575 407 406 395 105 166 100 Index

126

118
115

119

118
116

118
116

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*Excluding “Not Stated” **LOC refers to Line of Credit Source: comScore/PMB, 2011 Spring Fusion

Of Canadians visiting Business/Finance sites, a Personal Line of Credit is the most common type held
Loan/Line of Credit Personally Held*
Audience (000)
4,500 4,000 4,240 120 121 114 114 111 94 Audience (000) 3,000 2,143 99 99 98 129 113

Index
140 126 120 100 80

109
3,500

2,012
60 1,479 40

2,000
1,500 1,000 500 0

686 471 402 317 309 20 162 89 84 40 0

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*Excluding “Not Stated” **LOC refers to Line of Credit Source: comScore/PMB, 2011 Spring Fusion

Index

2,500

Of Canadians visiting Travel sites, Skiing/snowmobiling, Visiting a theme park/zoo and Visiting a national/provincial were most popular
Activities During Vacation In Canada Within the Past 12 Months*
Skiing/snowboarding Visit a theme park/zoo Visit any national/provincial park Snowmobiling Visit museum/art gallery Golf Sports activities Hiking/adventure tours Attend conference Hunting/fishing Take in night life Go to a beach Attend sporting events Sightseeing Go shopping Visit friends/relatives Attend cultural events
90 95 100 121 118 118 117 117 116 114 113 112 112 111 111 110 110 106 105 101 105 Index
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110

115

120

125

27

*Excluding “Not Stated” Source: comScore/PMB, 2011 Spring Fusion

Of Canadians visiting Travel sites, most Canadians used travel agents for the purpose of flight reservations
Used Travel Agent for Vacation in Canada*
800 700 600 500 400 300 200 100 0 733 111 335 100 229 102 182 154 87 Audience (000) 113 110 Index 116 120 115 105 100 95 Index Index

Audience (000)

110

90

$ Spent on Last Vacation Outside of Canada*
1,200 Audience (000) 1,000 800 107 437 113 780 Audience (000) 1,095 106 116 877 Index 842 108 120 115 110

600
400 200 0

105 572 99
101 359 100 95 90

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*Excluding “Not Stated” Source: comScore/PMB, 2011 Spring Fusion

Online Video

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YouTube, which owns nearly half of Canada‟s online video market, has seen a rise in viewing intensity over the past year
YouTube Videos per Viewer
300 +170% 271

250

200

150

100

101
50

0

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Source: comScore, Inc., Video Metrix, CA, Home & Work, Persons: 2+, Dec 2010 – Dec 2011

Total online video viewership is up 58 percent in the Canadian market year over year
The Entertainment category is showing the greatest increase in the number of videos viewed, streaming a monthly average of 5.3 billion in Q4 2011.

Videos Viewed (000)*

Category Entertainment News/Information Services Sports Games

Q4 2010 2,437,825 140,690 78,345 49,512 31,217

Q4 2011 5,289,603 259,624 140,222 91,593 59,108

% YoY Change +217% +185% +179% +185% +189%

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*Excluding Corporate Presence, Portals , Promotional Servers and XXX Adult 31 Source: comScore, Inc., Video Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011

Younger viewers (those under 35) account for 57 percent of all videos viewed online
% Composition Videos

12%
Persons: 55+ 19% Persons: Under 18 19%

18%

14%
Persons: 45-54 17%

% Composition Unique Viewers

Persons: 18-24 9%

13%

Persons: 25-34 18% Persons: 35-44 18%

18%

26%

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Source: comScore, Inc., Video Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2011

All age groups are accessing online videos at an increasing rate, with persons 18-34 exhibiting the strongest growth
As we continue to watch this trend continue upwards, we‟ll likely see more digital dollars moving towards video media.

Hours per Viewer
Q4 2010 50 45 40 35 30 25 20 15 10 5 0 +79% +79% +97% +100% +111% +125% Q4 2011 500 450 400 350 300 250 200 150 100 50 0 +48%

Videos per Viewer
Q4 2010 +70% Q4 2011 +75%

+35% +47% +53%

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Source: comScore, Inc., Video Metrix, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2010 & Q4 2011

Digital Advertising

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P&G led display ad volume in Canada for the second straight year; Netflix made a significant investment in their first full year in Canada
Total Display Ad Impressions (000)

Procter & Gamble Co. General Motors Corporation Netflix, Inc. Condis BV Microsoft Corporation Royal Bank of Canada Dell Inc. ING Groep N.V. BCE Inc. Vistaprint, Inc. 4,087,827

7,514,463 6,430,937 6,312,191 5,526,511 5,257,168

3,811,238 3,801,193
3,780,094 3,181,792

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Source: comScore, Inc., Ad Metrix, CA, Home & Work, Persons: 2+, Jan – Dec 2011

Majority of display ads are viewed on Social Media and Portal sites
The largest year over year growth comes from traditional media categories like

Entertainment, General News, and Newspaper Sites
Total Display Ad Impressions (000) in 2011
250,000,000

200,000,000

191,765,840

150,000,000

101,569,488
100,000,000 88,992,708 60,005,522

50,000,000

38,845,134

0

Social Media
© comScore, Inc.

Portals
Proprietary.

Entertainment
36

News/Information

E-mail

Source: comScore, Inc., Ad Metrix, CA, Home & Work, Persons: 2+, 2011

Display ads have gone Social, driving traffic to brands‟ Facebook pages from all over the Web as well as within Facebook itself
By Q4 2011, 24 percent of all online display ads were considered „socially-published‟, while 7 percent were „socially-enabled‟. Socially-Published Socially-Enabled

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Source: comScore, Inc., Ad Metrix Social, CA, Home & Work, Persons: 2+, 3 Mo. Avg. Q4 2011

Mobile

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Smartphone penetration has reached 45 percent of the Canadian mobile market, reflecting the growing need to be connected on-the-go
Mobile Penetration
Smartphone 100% 90% 80% 70% Feature Phone

67%
60% 50% 40% 30% 20%

64%

60%

55%

33%
10% 0% Mar-11
© comScore, Inc.

36%

40%

45%

Jun-11
Proprietary.

Sep-11
39

Dec-11

Source: comScore, Inc., MobiLens, CA, Persons: 13+, Mar – Dec 2011

Smartphones have rapidly penetrated the mobile market, up most significantly in Quebec (+16 pts.) and Atlantic (+15 pts.) since March
Smartphone Penetration by Region December 2011

British Columbia 51%
+14 pts. since March 2011

Atlantic 43%

Prairies 46%
+9 pts. since March 2011

Quebec 36%

Ontario 48%
+12 pts. since March 2011
40

+16 pts. since March 2011

+15 pts. since March 2011

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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Mar – Dec 2011

More Canadian Smartphone subscribers are accessing mobile content “almost every day”
Top Mobile Categories Accessed Almost Every Day by Smartphone Users
4,500 Smartphone Subscribers (000) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 +55% +30% +59% +40% +43%

+26%

+46%

+51%

+58%

+46%

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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Mar – Dec 2011

The primary result of scanning a QR code is for obtaining product information
In December 2011, more than 1.4 million Canadian smartphone subscribers scanned QR Codes with
their mobile device at least once in the month; 329,000 Canadian smartphone subscribers scanned a QR code at least once each week.
Product information Event information Charity/cause information 84% 79% 75% 65% 50% 37% 28% 30% 22% 18% 38% 27% 16% 18% 11% 29% 24% 35% 39% 41% 43% 66% 54% 44% 39% 36% 19% 23% 23% 25% 74% Coupon or offer Application download

90%
% Smartphone Subscribers 80% 70% 60% 50% 40% 30% 20% 10% 0%
Printed magazine Poster or flyer or or newspaper kiosk
© comScore, Inc.

63%

16%
8%

16%

Website on PC

Product packaging
42

Business card or brochure

Storefront

TV

Proprietary.

Source: comScore, Inc., MobiLens, CA, Persons: 13+,Dec 2011

comScore Canada Custom Reporting

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“Facebook” the most popular search term in Canada
51.9 billion searches in 2011

Online Entities

Retailer/Brands Search Term CANADIAN TIRE FUTURE SHOP WALMART AIR CANADA BEST BUY Searches (MM) 23.2 16.5 15.4 14.9 14.0

Directories/Resources

Search Term
FACEBOOK YOUTUBE HOTMAIL

Searches (MM)
648.0 271.8 198.2 134.2 81.9

Search Term
GOOGLE MAPS WEATHER CANADA 411 THEATERS GOOGLE TRANSLATE

Searches (MM)
22.0 20.4 19.3 15.6 14.9

GOOGLE
KIJIJI

The search terms above drove the overall growth of search in Canada. In Q4 alone, there were 14.4
billion searches made in Canada, up 22 percent from Q4 2010. Canadians, like many searchers worldwide, continue to search for online destinations within their search engine. Retailers and brands continue to gain positive momentum in search as well. “Canadian Tire” as a search term grew 22

percent from 19 million searches in 2010.

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Source: comScore, Inc., Custom Reporting, CA, Persons: 2+, 2011 Source: comScore, Inc., qSearch, CA, Home & Work, Persons: 2+, 2011

The holiday season continues to be a time of strong online search and commerce activity
As Canadians continue to consume more digital content on all devices and screens, the growth in search is something that marketers and digital content producers need to keep in mind.

In addition to searches, the online retail economy was particularly strong in Canada with more than 27 million items purchased in 2011. December was the exclamation point of E-Commerce in 2011, accounting for more than 10 million items transacted and 12 percent of the all items during the year.

Searches (MM)

% Change YoY

E-Commerce Items

% Change YoY

Oct 2011

4,790

+26%

8,554,529

0%

Q4

Nov 2011

4,835

+20%

8,480,663

+8%

Dec 2011

4,808

+20%

10,429,292

+5%

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Source: comScore, Inc., Custom Reporting, CA, Persons: 2+, 2011 Source: comScore, Inc., qSearch, CA, Home & Work, Persons: 2+, 2011

Conclusion: Putting the Future in Focus 2012

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As more dollars shift to digital in 2012, the industry will require greater transparency and standard metrics for campaign measurement

Digital advertising spend in Canada is expected to total 2.6 billion in 2011*. Brands invest in digital advertising with the expectation that their campaigns are being delivered and seen by their target demo, in geography, with the intended reach and frequency, in a brand safe environment. To better understand the current state of display ad delivery online, comScore conducted a U.S.-based charter study in December 2011 involving 12 national brands, 3,000 placements, 381,000 site domains and 1.7 billion ad impressions. Across all charter campaigns measured, 31 percent were delivered but never seen by a consumer, 4 percent were delivered outside the desired geography and 72 percent of campaigns had at least some ads running next to content deemed “not brand safe” by the advertiser. These findings, which are surprising to many, shed light on the need for greater accountability and transparency in the digital advertising delivery market. In 2012, we’ll likely see far greater adoption of tools that help to validate ad delivery across a variety of key dimensions, such as visibility, audience targeting, geographic delivery, brand safety and fraud. These tools will allow advertisers to course-correct while a campaign is in-flight, thus helping to ensure ads are delivered to their intended audience and that they actually have the chance to make an impact. Inherently, this will allow for more confidence in this medium as an advertising channel and better overall advertising ROI. Ultimately, this type of validation will help digital reach its full potential. A separate Canada-based charter study is currently in progress with 4 major brands. The goal of the research is to educate the Canadian market with local insights relating to digital ad delivery and validation.

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* Source: IAB Canada, Revenue Survey 2010

Social is quickly moving from a supporting role to a key pillar in monetizing digital

Social Media began as a platform to communicate and interact with others locally and globally. It has matured into a driving force for brands, commerce, social change, idea sharing, news, current events and advertising. In Canada, Social Media is the #1 category in terms of delivered ad impressions. The power of social led by companies like Facebook, LinkedIn and Twitter are changing the way that Canadians communicate and share information online and offline. Additionally, it is opening a world of opportunity in the way that brands communicate with the market, providing a first-of-its-kind platform for a more engaging and candid conversation with consumers. Overall, Social Networking is a prime example of how interactive tools can change society. The power of social, and more so the power of like, are driving consumer behavior and retail experiences. The depth of engagement across all ages is significant, and a sign that social remains extremely relevant and something to continue to watch in 2012. Social Media’s potential for mass reach and power of persuasion are key reasons why we see increased advertising opportunity through the use of paid impressions as well as socially-enabled advertising. Its popularity on mobile devices is further expanding its reach and influence in daily life. The world is getting more social by the second, and brands can reap the rewards of this evolving consumer behavior.

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Mobile is becoming a major channel for consumption of news, information and entertainment, as well as an agent for e-commerce

Smartphone adoption is expected to eclipse the 50 percent mark of Canadian mobile subscribers in 2012. As the mobile audience reaches this significant landmark, amidst the growing level of mobile content consumption with existing smartphone subscribers, marketers need to recognize mobile as an important channel for advertising and brand presence. Specifically, smartphones are beginning to impact the traditional sales funnel. The process of making a purchasing decision may occur over multiple screens, for example researching products on the smartphone while out and about, before finally making the purchase online or in person. In order for marketers to successfully compete in this multidimensional world, they must strategize the best ways to reach consumers at every step of the funnel, which should now include mobile. Additionally, it is important to acknowledge that smartphones are becoming a significant part of consumers’ everyday lives. Not only are they used for voice communication, but Canadians are increasing their usage with data, text messaging, instant messaging, QR code scanning, shopping and much more. Over the past year we have seen amazing growth in usage on mobile devices as it pertains to: Weather, Online Banking, Social Networking, Retail, Sports, Video Content, E-Mail, News/Information and Deals/Incentives. This points to mobile’s ability to deliver timely and relevant information to Canadians at the power of their finger tips. Consumer usage in all age groups are evolving, and it is essential that carriers, content providers, agencies and advertisers ready themselves for even more sophistication with mobile among the Canadian population in 2012. Whether through mobile advertising, mobile-enabled websites or mobile applications, it is going to become critical that marketers ensure they have a presence in the mobile arena in order to stay competitive.

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About comScore, Inc.

comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world and preferred source of digital business analytics. comScore helps its clients better understand, leverage and profit from the rapidly evolving digital marketing landscape by providing data, analytics and on-demand software solutions for the measurement of online ads and audiences, media planning, website analytics, advertising effectiveness, copy-testing, social media, search, video, mobile, cross-media, e-commerce, and a broad variety of emerging forms of digital consumer behavior. comScore services, which now include the product suites of recent acquisitions AdXpose, Nedstat, Nexius XPlore, ARSGroup and Certifica, are used by more than 1,800 clients around the world, including global leaders such as AOL, Baidu, BBC, Best Buy, Carat, Deutsche

Bank, ESPN, France Telecom, Financial Times, Fox, Microsoft, MediaCorp, Nestle, Starcom, Terra Networks,
Universal McCann, Verizon Services Group, ViaMichelin and Yahoo!.

For more information, please visit www.comscore.com

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For further information, please contact:

Kevin Duong
comScore, Inc.

kduong@comscore.com +1 416 646 9981

Kevin Duong Analyst, cMM Canada kduong@comscore.com 416.646.9981

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