DIGITAL

MARKETING & MEDIA
FACT PACK
IN ASSOCIATION WITH
Published April 23, 2007 © Copyright 2007 Crain Communications Inc.

Digital Marketing & Media | Advertising Age | 3
30+ billion ads per month - 200+ million unique users - 7,000+ premium web sites

Your audience is on our network

DIGITAL MARKETING AND MEDIA
DATA ON THE DIGITAL WORLD
LET’S FACE IT.

You need a network that can keep up with your audience online. We are the industry leader in real time audience intelligence, keeping your campaign in step with consumer browsing and response patterns. Our diverse reach and optimization technology work for you, creating unstoppable marketing momentum and demand.

To learn more please visit buyer.casalemedia.com

Ready to discuss opportunities for engaging your audience online? Please call Tony DeSena at 818.615.2022
Copyright © 2007 Casale Media Inc.

MEDIA

It’s becoming critical to stay atop the digital media and marketing space, but the pace of technological change is making it increasingly difficult. That’s why we’ve again pulled together the important data and trends to serve as a guide to marketing in this space. This, our second annual Digital Fact Pack, is full of fascinating numbers. Some highlights: Big players continue to dominate online advertising, thanks to both their audience scale and their ability to re-aggregate smaller, disparate audiences. The top 10 online properties took in 99% of 2006 gross online ad revenue. Net online ad revenue is a slightly less stilted story, but continues to illustrate that when it comes to online ad revenue, the Long Tail of the web has a big, fat head (Page 11). 48.3% of Americans will be hooked up to a broadband connection this year and $243.1 billion will be spent in U.S. online retail sales. After breaking onto the scene a few years ago, social networking is flourishing. MySpace and Facebook continue to defy gravity, growing 72.5% and 59.2% (Feb. ‘07 versus Feb. ‘06), respectively, and, depending on what surveys you use, advertisers are set to spend between 4.7% and 7.7% of their online ad budgets on the space (Pages 20 and 46). While new mobile applications are picking up steam, consumers they have not yet warmed to the idea of advertising. In fact, more than half of consumers are not at all willing to watch ads on their phones in return for free mobile phone applications (Page 42). That’s just a taste of what’s inside. We slice ad spending by category and take an in- Data from American Advertising Federation (AAF), November 2006, via eMarketer. Shows depth look at the different areas in which the percentage of media budgets allocated to marketers are spending their online dollars. select emerging media according to U.S. advertising executives. It’s important to note the interactive realm is monitored by dozens of companies, media MEDIA % OF BUDGET and trade groups. Since their methodologies Search 27.0% vary, totals do, too.. Oh, and speaking of the ever-changing Online video 14.9 digital space, since last year’s Fact Pack we’ve 8.4 doubled the frequency of our dedicated dig- Blogs ital section in the print version of Ad Age Podcasts 8.0 and launched a weekly newsletter that Social networking 7.7 rounds up the best of our digital coverage. 5.5 So use this Digital Marketing & Media Fact RSS Pack as a guide, but visit AdAge.com/digital Mobile 5.2 for continuous coverage of the space. 3.6 —ABBEY KLAASSEN Video games

EMERGING MEDIA

COVER PHOTO BY PAUL COOKLIN

Digital Marketing & Media | Advertising Age | 5

CONTENTS
Overview
Online ad spending by format; behavioral targeting

6 8 21 22 28 36 38 42 44 45 46 48 50

Websites
The most unique visitors and the highest ad revenue by site

Blogs
Blog user stats and a case study calculating the ROI of blogs

Online display advertising
The top 25 marketers and the top categories

Consumer internet usage
Penetration, user habits and purchases, what else consumers do while online

Video online
What users watch, where and how much marketers are spending

Search
Search-engine market share and the top search terms; Google versus Yahoo

Mobile
Mobile device habits, handset share, willingness to watch ads

E-mail
What marketers are spending and e-mail volume

Games
In-game ads annoy users less than other interactive ads

Social networking
Top sites, users demographics and marketer spending

Awards & top agencies
Digital A-List awards, the top 10 interactive agencies and top ad networks

Miscellaneous
Podcast ad spending and user stats; data overload among middle managers

6 | Advertising Age | FactPack

OVERVIEW
U.S. ONLINE AD SPENDING BY FORMAT
Data from eMarketer, February 2007, which benchmarks its U.S. online advertising spending projections against the Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC) data, for which the last full year measured was 2005; online ad data include categories as defined by IAB/PwC benchmark—display ads (such as banners), paid search ads (including contextual text-links), rich media (including video), classified ads, sponsorships, referrals/lead generation, e-mail (embedded third-party ads in emails, not email marketing) and slotting fees. Dollars in millions. FORMAT Paid search 2005 $5,142 PROJECTED ANNUAL REVENUE 2006 2007 2008 2009 $6,970 1,476 3,444 2,788 902 492 164 164 16,400 $8,288 2,145 3,900 3,315 975 488 195 195 19,500 $10,234 2,916 4,522 4,046 1,071 536 238 238 23,800 $12,224 3,794 5,058 4,637 1,265 562 281 281 28,100 2010 $14,212 5,007 5,491 5,168 1,292 485 323 323 32,300 2011 $16,151 6,205 5,840 5,840 1,278 456 365 365 36,500 ‘06-’11 % CHANGE 131.7 320.4 69.6 109.5 41.7 -7.3 122.6 122.6 122.6

Rich media/video 1,003 Display ads Classified Referrals Sponsorships E-mail Slotting fees Total 2,634 2,132 753 502 251 125 12,542

BEHAVIORAL TARGETING: REACHING POTENTIAL BUYERS
Data from Forrester Research’s NACTAS 2006 Benchmark Survey. TECHNOLOGY OWNERSHIP TO IDENTIFY ENABLED CONSUMERS ONLINE BEHAVIOR TO IDENTIFY POTENTIAL BUYERS INTENSITY OF BEHAVIOR TO IDENTIFY EARLY ADOPTERS NEW APPLICATION VIDEO STREAMING SERVICES MUSIC ON CELL PHONES ONLINE CONSUMERDIRECTED HEALTH PLAN

Has broadband and a home network 15% of market Uses mobile data service 15% of market Has broadband 40% of market

Downloads video or music today 8% of market

Top quartile of time spent with video 2% of market

Downloads music or Does these at least listens to internet radio a few times weekly 7% of market 3% of market Ever done research into a Top quartile of disease, drug or doctor time spent online 26% of market 11% of market

8 | Advertising Age | FactPack

WEBSITES
TOP FIVE PORTAL SITE COS. BY UNIQUE VISITORS
Ranking based on data from comScore Media Metrix. Sales and earnings from public documents. Ad spending is U.S. measured media ad spending from TNS Media Intelligence. *Fiscal year ends June 30. ** Yahoo '05 net income included about $1 billion in special gains and tax benefits; '06 net income reduced $222 million by accounting change.

Yahoo yahoo.com; Sunnyvale, Calif.
128.6 million unique visitors a month averaged 281.5 minutes on the sites.
NUMBERS
Revenue (billions) Net income (billions)** Ad spending (millions)

2006
$6.43 0.75 35.3

2005
$5.26 1.90 36.6

% CHG
22.2 -60.4 -3.6

EXECUTIVES
11,400 employees led by Terry S. Semel, chmn & CEO; Jerry Yang, co-founder & chief Yahoo; David Filo, co-founder & chief Yahoo; TOP MKTG EXEC: Cammie Dunaway, chief mktg officer

Time Warner aol.com, cnn.com, multiple media sites; New York
117.9 million unique visitors a month averaged 269.8 minutes on the sites.
NUMBERS
Revenue (billions) Net income (billions) Ad spending (millions)

2006
$44.22 6.55 1,837.2

2005
$42.40 2.67 2,074.4

% CHG
4.3 145.3 -11.4

EXECUTIVES
92,700 employees led by Richard D. Parsons, chmn & CEO-Time Warner; Randy Falco, chmn & CEO-AOL; TOP MKTG EXEC: John Partilla, pres-Time Warner Global Mktg

Google google.com, youtube.com; Mountain View, Calif.
114.7 million unique visitors a month averaged 79.5 minutes on the sites.
NUMBERS
Revenue (billions) Net income (billions) Ad spending (millions)

2006
$10.60 3.08 20.5

2005
$6.14 1.47 8.1

% CHG
72.8 110.1 152.8

EXECUTIVES
10,674 employees led by Eric E. Schmidt, chmn & CEO; Larry Page, co-founder & pres-products; Sergey Brin, co-founder & pres-tech; TOP MKTG EXEC: David Lawee, VP-mktg

Microsoft Corp. msn.com, msnbc.com (joint venture), microsoft.com; Redmond, Wash.
114.2 million unique visitors a month averaged 167.0 minutes on the sites.
NUMBERS
Revenue (billions)* Net income (billions)* Ad spending (millions)

2006
$44.28 12.60 447.0

2005
$39.79 12.25 461.9

% CHG
11.3 2.8 -3.2

EXECUTIVES
71,000 employees led by William H. Gates III, chmn; Steven A. Ballmer, CEO; TOP MKTG EXEC: Mich Mathews, senior VP-central mktg group.

eBay ebay.com; San Jose, Calif.
79.6 million unique visitors a month averaged 73.9 minutes on the site.
NUMBERS
Revenue (billions) Net income (billions) Ad spending (millions)

2006
$5.97 1.13 144.4

2005
$4.55 1.08 158.2

% CHG
31.1 4.0 -8.8

EXECUTIVES
13,200 employees led by Pierre M. Omidyar, chmn; Margaret C. Whitman, pres & CEO; TOP MKTG EXEC: John Donahoe, pres-eBay Marketplace

Clipstream

TM

10 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 11

TOP 25 PARENT WEB SITES BY UNIQUE VISITORS
Source: comScore Media Metrix. Unique visitors in thousands for 175,653,000 total visits in February 2007 versus 166,966,000 visits in February 2006. ComScore defines unique visitors as “the estimated number of different individuals that visited any content of a website, a category, a channel, or an application during the reporting period.” This is a measure of visitors, not the number of registered users, subscribers, or videos streamed. *Percentage increase due to the inclusion of numerous Fox acquisitions, including MySpace, which was added to Fox data in August 2006. Rankings by category continue on Pages 16 through 21. Average minutes are per visitor. % CHG AVERAGE RANK SITE UNIQUE VISITORS (000) VS. 2/06 MINUTES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Yahoo sites Time Warner network Google sites Microsoft sites eBay Fox Interactive Media (incl. MySpace)* Amazon sites Ask network Wikipedia sites New York Times Digital Viacom Digital The Weather Channel Apple CNET networks Gorilla Nation AT&T Adobe Sites Wal-Mart Expedia United Online CBS Corp. Target Corp. Monster Worldwide Lycos Disney Online Total visits across all categories 128,559 117,942 114,694 114,155 79,559 77,969 48,905 48,722 43,656 39,769 39,128 37,374 36,767 29,881 29,098 27,391 26,035 25,125 25,060 24,773 23,045 23,038 22,794 22,341 21,959 175,653 7.1 6.8 21.2 3.0 19.4 461.5 14.6 13.2 122.3 14.1 NA 34.0 51.5 12.8 40.1 22.5 18.9 19.7 -1.3 -0.2 22.7 15.9 -5.2 -4.7 NA 0.0 281.5 269.8 79.5 167.0 73.9 162.3 16.5 17.4 12.5 10.8 47.0 11.9 8.7 17.8 13.9 34.7 3.4 15.2 15.9 25.3 20.9 11.1 13.9 7.2 48.9 1,721.9 1 2 3 4 5 6 6 8 9 10

U.S. ONLINE ADVERTISING MARKET
Data from IAB/PricewaterhouseCoopers, Piper Jaffray, company reports, via Marketspace. Share includes intercompany transactions. ALL AD REVENUE IN 2006 SHARE OF TOTAL IN 2006 RANK SITE GROSS NET GROSS NET Google Yahoo AOL MSN IAC CNET Fox Interactive Viacom Disney Internet Group New York Times Digital Top 4 Top 10 Total U.S. online advertising $6.0 4.6 1.9 1.5 0.5 0.4 0.4 0.4 0.3 0.3 14.2 16.7 16.8 $4.1 3.0 1.3 1.1 0.4 0.4 0.4 0.4 0.3 0.2 9.6 11.8 36.1% 27.7 11.6 9.2 3.2 2.6 2.6 2.6 2.0 2.0 85.0 99.0 24.7% 18.1 7.8 6.8 2.6 2.3 2.3 2.3 1.7 1.4 57.0 70.0

12 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 13

TOP 50 U.S. PARENT WEB SITES BY DISPLAY AD REVENUE
Data from TNS Media Intelligence on more than 2,800 sites. Dollars are in millions for calendar 2006, represent only display advertising; excludes search and broadband video. Percent change computed versus 2005 data, not shown. RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SITE Yahoo Microsoft Network AOL Media Network Time Warner New York Times and About.com Lycos Network & Terra Lycos AT&T CNET ABC Internet Group ESPN Internet Group Fox and News Corp. Excite Network Dow Jones American Greetings ZDnet USA Today & Gannett Co. Weather.com Cox Enterprises E.W. Scripps Viacom Tradetrek.com Washington Post Gay.com Condenet/Conde Nast IDG.net U.S. AD SPENDING $1,157.9 939.4 778.9 326.6 239.7 207.3 205.2 198.7 188.8 182.5 176.8 172.2 163.7 118.0 109.3 104.5 73.0 72.7 69.7 69.2 67.7 66.4 65.8 61.5 59.3 % CHANGE 5.8 21.6 -14.7 16.2 16.5 -4.2 3.5 12.1 16.8 77.7 52.5 2.8 9.2 -5.5 120.5 43.2 -25.0 16.0 23.5 15.4 160.7 -22.7 59.3 38.9 97.3 RANK 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 SITE Playboy Orbitz TheStreet.com Travelocity.com TV Guide Online Internet Movie Database (IMDB) Ticketmaster Flipside.com CBS Internet Group Morningstar.com Homestore.com SmartMoney.com Hearst Publications ClearStation Forbes Egreetings Network ivillage DealTime.com Emdeon New York Daily News Online Internet.com Fool.com Nasdaq Univision Kelley Blue Book U.S. AD SPENDING 59.3 58.7 58.3 57.3 56.2 55.9 55.0 54.5 51.2 50.7 49.5 45.9 45.7 44.9 43.3 41.4 41.0 40.9 39.1 38.8 33.7 33.3 33.1 32.4 31.8 % CHANGE 17.5 46.7 44.7 44.8 31.0 26.4 90.2 -7.4 93.8 -6.8 14.6 16.1 63.2 20.9 32.4 54.2 43.0 24.6 48.1 -10.8 24.7 29.5 12.5 39.5 36.3

14 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 15

TOP 25 WEB SITE CATEGORIES BY AD REVENUE
Data from TNS Media Intelligence on more than 2,800 sites. Dollars are in millions for calendar 2006 and represent only display advertising; excludes search and broadband video. Percent change computed versus 2005 data, not shown. *No. 1 is multi-service such as MSN, Yahoo and AOL and No. 10 is just portals and search engines such as Ask and About. Categories are from TNS. RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 TYPE OF SITE Portals, search engines & ISPs: Multiservice* Business, finance, investing News & current events Sports Local news & guides General interest/general entertainment Computing & technology Movies, videos, TV & cable TV stations Portals & search engines Games Health & fitness Travel Internet service providers* Automotive Cards & screen savers Common cultures/communities Music, broadcasts & radio Real estate Shopping Special interests/hobbies Food Meeting places Hispanic Education & reference Total U.S. AD SPENDING $1,277.9 900.5 766.8 715.4 689.0 644.1 523.8 374.0 340.9 318.6 315.0 282.0 260.1 229.7 206.8 199.0 138.1 134.4 116.4 109.2 109.1 107.7 85.1 81.3 75.0 9,769.8 % CHANGE 13.1 25.5 9.1 31.0 48.3 16.1 62.6 1.6 21.2 5.0 5.4 -22.8 15.2 3.2 15.5 16.3 35.9 -9.9 11.3 34.1 25.0 31.1 21.5 64.1 27.9 17.5

WHERE $9.77 BILLION IS SPENT
Source: TNS Media Intelligence for calendar 2007. See table on facing page.

Portals, search engines, ISPs
All other 55.5%; $5.42 billion 13.1%; $1.28 billion Business, finance 9.2%; $900.5 million News & current events 7.8%; $766.8 million Sports 7.3%; $715.4 million Local news & guides 7.1%; $689.0 million

conexión

Connection. Our network of Spanish-language newspaper websites allows you to connect with Latinos in top U.S. Hispanic markets through ImpreMedia's trusted brands and within a relevant content environment. ImpreMedia. Buy us and you’ll own the market.

www.impremedia.com

Contact Mary Zerafa at (213) 896-3600 • mary.zerafa@impremedia.com

16 | Advertising Age | FactPack

TOP 5 SITES IN 16 MAJOR CATEGORIES
Source: comScore Media Metrix. Unique visitors in thousands for more than 175 million total visits in February 2007. Rankings continue through Page 21. More extensive notes about visitors are on Page 10. RANK SITE UNIQUE VISITORS FEB. 2007 FEB. 2006 % CHANGE

AUTOMOTIVE
1 2 3 4 5 eBay Motors U.S. General Motors Corp. Ford Motor Co. AutoTrader KBB.COM 12,592 8,340 6,237 6,067 5,601 9,160 8,000 6,009 4,743 5,270 37.5 4.2 3.8 27.9 6.3

NEWS/RESEARCH
1 2 3 4 5 Yahoo Finance AOL Money & Finance MSN Money Dow Jones & Co. CNN Money 11,945 11,676 11,016 5,407 5,248 8,679 10,583 11,574 6,620 5,716 37.6 10.3 -4.8 -18.3 -8.2

CAREER SERVICES AND DEVELOPMENT
1 2 3 4 5 CareerBuilder Monster Yahoo HotJobs Job.com College Board Property 20,834 13,745 9,548 3,392 2,207 19,705 12,363 5,849 2,519 2,426 5.7 11.2 63.2 34.7 -9.0

ENTERTAINMENT - MUSIC
1 2 3 4 5 Yahoo Music AOL Music MySpace Music ARTISTdirect Network MTV Networks Music 23,379 16,452 15,744 13,842 13,053 20,818 18,641 NA 10,549 NA 12.3 -11.7 NA 31.2 NA

18 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 19

TOP 5 SITES IN 16 MAJOR CATEGORIES
Source: comScore Media Metrix. Unique visitors in thousands for more than 175 million total visits in February 2007. Rankings continue through Page 21. More extensive notes about visitors are on Page 10. RANK SITE UNIQUE VISITORS FEB. 2007 FEB. 2006 % CHANGE RANK SITE UNIQUE VISITORS FEB. 2007 FEB. 2006 % CHANGE

GAMBLING
1 2 3 4 5 PCH.com Eprize.net California Lottery PokerStars iWin.com 8,300 3,650 1,835 1,651 1,632 5,116 3,116 1,306 NA NA 62.2 17.1 40.5 NA NA

ENTERTAINMENT - MOVIES
1 2 3 4 5 IMDB.com Yahoo Movies MSN Movies Moviefone Hollywood Media Corp. 18,980 14,526 11,869 11,452 8,948 15,092 12,138 12,001 11,722 7,668 25.8 19.7 -1.1 -2.3 16.7

GAMES
1 2 3 4 5 Yahoo Games EA Online MSN Games Atom Entertainment IGN Entertainment - Games 19,506 12,837 10,347 9,817 7,374 18,319 9,768 10,468 NA NA 6.5 31.4 -1.2 NA NA

BLOGS
1 2 3 4 5 Blogger Six Apart sites Windows Live Spaces Yahoo 360° WordPress.com 22,281 10,477 8,320 4,413 4,388 NA 8,699 7,925 3,262 230 NA 20.4 5.0 35.3 1808.5

CLASSIFIEDS
1 2 3 4 5 Craigslist.org Dominion Enterprises AutoTrader Cars.com Apartments.com 15,991 6,818 6,067 3,814 2,543 8,524 7,615 4,743 3,283 1,767 87.6 -10.5 27.9 16.2 43.9

SPORTS
1 2 3 4 5 ESPN Fox Sports on MSN Yahoo Sports AOL Sports NFL Internet Group 15,207 14,704 13,109 9,002 8,891 17,806 15,852 13,026 11,695 8,393 -14.6 -7.2 0.6 -23.0 5.9

PERSONALS
1 2 3 4 5 Yahoo Personals Match.com sites True.com Singlesnet.com Spark Networks 4,941 3,919 3,812 3,114 2,768 5,325 3,895 1,947 568 2,336 -7.2 0.6 95.8 448.5 18.5

TRAVEL
1 2 3 4 5 Expedia Travelport Travelocity Southwest Airlines Co. Yahoo Travel 25,060 19,160 11,492 9,447 9,024 25,392 NA 12,246 9,902 8,597 -1.3 NA -6.2 -4.6 5.0

20 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 21

TOP 5 SITES IN 16 MAJOR CATEGORIES
Source: comScore Media Metrix. Unique visitors in thousands for more than 175 million total visits in February 2007. Rankings continue through Page 21. More extensive notes about visitors are on Page 10. RANK SITE UNIQUE VISITORS FEB. 2007 FEB. 2006 % CHANGE

BLOGS
BLOG USERS
Data from Pew Internet & American Life Project, July 2006, via eMarketer for November 2005 through April 2006 for U.S. adult internet users. ACTIVITY Internet users Read blogs Keep a blog MILLIONS OF USERS 147 57 12

BLOG READERS
Data from the Radio Television News Directors Foundation (RTNDF) commissioned by The Ford Foundation, October 2006 for 1,106 respondents, via eMarketer. Shows the frequency with which U.S. adults read blogs, April-May 2006. FREQUENCY Every day Several times a week About once a week Seldom Never Don’t know what blogs are % OF RESPONDENTS 3.1% 4.0 4.5 20.1 52.3 16.0

HEALTH
1 2 3 4 5 WebMD Health NIH.gov MSN Health Everyday Health About.com Health 16,466 9,321 7,777 6,860 5,540 13,093 8,381 6,203 4,060 4,680 25.8 11.2 25.4 69.0 18.4

RETAIL
1 2 3 4 5 eBay Amazon sites Apple Wal-Mart Target Corp. 79,559 48,905 36,767 25,125 23,038 66,613 42,660 24,277 20,999 19,876 19.4 14.6 51.5 19.7 15.9

U.S. INTERNET USERS WHO KEEP BLOGS
Data from USC Annenberg School Center for the Digital Future, November 2006, via eMarketer for November 2005 through April 2006 for U.S. internet users who keep a blog, 2003 & 2006. YEAR 2003 2006 % OF RESPONDENTS 3.2% 7.4

BLOG AD SPENDING
Data from PQ Media and Marketing Vox, April 2006, via eMarketer for the U.S. only in millions. 2005 $16.6 2006 $36.2 2010 $300.4

NEWS/INFORMATION
1 2 3 4 5 New York Times Digital The Weather Channel Yahoo News MSNBC CNN 39,769 37,374 36,235 25,783 22,915 34,841 27,887 26,437 26,484 20,546 14.1 34.0 37.1 -2.6 11.5

CALCULATING THE RETURN ON INVESTMENT OF BLOGGING
Data from a case study estimating the ROI of General Motors’ FastLane blog in Forrester Research’s Jan. 27, 2007, report, “Calculating The ROI Of Blogging: A Case Study.” The model is adjusted for risk and other factors such as declining press coverage. Forrester offers underlying data in spreadsheets online. A complimentary copy of the full case study is available at: http://www.forrester.com/roiofblogging 2005 2006 2007 BENEFITS: Consumer insight Blog visibility Press $180,000 6,844 380,990 10,540 578,374 35,521 255,675 291,196 99% $180,000 6,844 214,900 8,727 410,470 — 255,675 255,675 61% $180,000 6,844 169,760 6,970 363,574 — 255,675 255,675
Scenario Probability Most likely 65% Best case 5% Worst case 30% Risk-adjusted ROI ROI 42% 79% 26% 39%

SOCIAL NETWORKING
1 2 3 4 5 MySpace.com Blogger Facebook.com Yahoo Geocities Classmates.com sites 64,443 22,281 16,737 16,563 14,465 37,349 NA 10,513 19,434 13,756 72.5 NA 59.2 -14.8 5.2

Word of mouth Total benefits COSTS: Initial Recurring Total costs RETURN ON INVESTMENT

22 | Advertising Age | FactPack

ONLINE DISPLAY ADVERTISING
$9.77 BILLION INTERNET DISPLAY ADS BY CATEGORY
Source: TNS Media Intelligence. Dollars are in millions for calendar 2006 and represent only display advertising excluding search and broadband video on more than 2,800 sites. See note on Page 27 for information on the categories, which are aggregated by Ad Age.

All other 41.7%; $4.07 billion

Telecommunications, Internet and ISPs 15.3%; $1.49 billion

Financial services 15.2%; $1.48 billion

Retail 12.9%; $1.26 billion Automotive 7.4%; $727.2 million General services 7.6%; $737.7 million

Smart Online Marketers Know Where to Find the Right Answers.
When you need the latest facts, figures and analysis on online marketing and advertising, there is one place to find them. No one has more up-todate information – from over 2,000 sources around the world – anywhere. No one provides clearer analysis. And no one makes it easier to access.

DISPLAY AD GROWTH
Source: TNS Media Intelligence. Dollars are in millions, and exclude search and broadband video ads.

For a demonstration of how an eMarketer subscription can help you make smarter, better-informed business decisions for your company – and your clients’ companies – contact David Iankelevich at 212-763-6037 or sales@emarketer.com.

YEAR
2006 2005 2004 2003 2002

U.S. SPENDING
$9,769.8 8,318.0 7,342.9 6,080.1 5,151.5

% CHG
17.5% 13.2 20.8 18.0 -11.1

®

800-405-0844 sales@emarketer.com www.emarketer.com
©2006 eMarketer Inc. All rights reserved.

24 | Advertising Age | FactPack

TOP 25 U.S. INTERNET ADVERTISERS
Data from TNS Media Intelligence on more than 2,800 sites. Dollars are in millions for calendar 2006 and represent only display advertising; excludes search and broadband video. Percent change computed versus 2005 data, not shown. RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MARKETER Vonage Holdings Corp. AT&T Dell Walt Disney Co. General Motors Corp. Experian Group Verizon Communications Apollo Group IAC/InterActiveCorp TD Ameritrade Holding Corp. United Online Netflix Hewlett-Packard Co. E-Trade Financial Corp. Scottrade Monster Worldwide Ford Motor Co. FMR Corp. (Fidelity Investments) Time Warner Nextag Dollar Thrifty Automotive Group Microsoft Corp. American Express Co. Sony Corp. Charles Schwab Corp. Total U.S. AD SPENDING $185.7 166.9 137.8 133.2 129.7 128.3 123.6 123.6 123.0 119.8 115.9 115.2 111.4 106.9 105.0 102.6 99.1 97.4 90.6 90.1 88.0 81.7 80.8 73.6 72.1 9,769.8 % CHANGE -32.7 196.9 -13.3 46.7 16.0 -29.5 -14.2 38.7 37.2 30.5 -23.2 -15.8 3.1 49.3 23.3 74.3 80.1 236.8 -46.0 198.6 176.4 -20.7 180.0 65.8 12.1 17.5

Don’t miss reaching 697,000+ advertisers who want to tap into the power of Search!

CLOSES September 19 ONLINE Advertising Age Online (adage.com) for 12 months PRINT Delivered with Advertising Age, November 5th issue

Bonus distribution at Ad:Tech New York; iMedia Agency Summit & eMarketer events
To advertise, contact Suzanne Hermalyn, Director, Business Development Tel: 508-497-8688 · shermalyn@crain.com

ADAGE.COM

26 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 27

U.S. INTERNET SPENDING TOTALS BY CATEGORY
Data from TNS Media Intelligence on more than 2,800 sites. Dollars are in millions for calendar 2006 and represent only display advertising; excludes search and broadband video. Percent change computed versus 2005 data, not shown. *See note on facing page for information on the categories. RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CATEGORY* Telecommunications, internet services and ISP Financial services Retail General services Automotive Media Computers, software Airlines, hotels, car rental, travel Medicine & remedies Education Movies, recorded video & music Toys & games Government, politics, religion Insurance Food, beverages & candy Real estate Personal care Home furnishings, appliances & electronics Beer, wine & liquor Restaurants Apparel Home supplies & cleaners Hardware & home building supplies Pet food & pet care Sporting goods Total all categories U.S. INTERNET AD SPENDING $1,494.7 1,481.9 1,257.5 737.7 727.2 716.4 456.0 452.2 379.3 273.7 189.7 159.9 155.6 151.2 133.7 131.7 105.5 84.6 61.0 48.5 39.4 29.8 26.3 21.3 13.5 9,769.8 % CHANGE -0.8 43.8 14.2 3.6 71.4 31.7 29.0 -11.8 -3.3 8.8 60.2 29.3 -9.3 -6.7 23.2 42.0 32.6 2.4 38.7 7.4 42.7 122.8 74.9 -44.9 41.0 17.5

ABOUT THE CATEGORIES
Categories are aggregated by Ad Age from TNS classifications as follows (not comprehensively): Automotive includes manufacturers and dealerships; Retail includes discount department & variety stores, department stores, retail, shopping centers & catalog showrooms; Telecom, internet services and ISP includes telephone companies (wireless, local and long distance), internet service providers, web designers, communications networks, telephone equipment, and offline internet support; Medicines & proprietary remedies: Pharmaceutical houses, medicines & proprietary remedies, fitness, eyeglasses, medical equipment; Financial services includes banks and credit cards; Food, beverages & confectionery: Beverages, confectionery & snacks, dairy, produce, meat & bakery goods, prepared foods, ingredients, mixes & seasonings; General Services: Apparel services, business services, beauty shops, doctors, nurses, chiropractors, dentists, hospitals, clinics & medical centers, legal services, rental services, dating services, spectator sporting events, exterminators, electric & water companies; Personal care: Cosmetics & beauty aids, personal hygiene, hair products, toiletries, hygienic goods & skin care; Movies, recorded video and music includes DVDs; Direct response advertising includes direct response advertising in all classifications; Airlines, hotel, car rental and travel includes cruise ship travel; Apparel: Ready-to-wear, underclothing & hosiery, jewelry, accessories, footwear; Home furnishings, appliances & electronics: household furnishings & accessories, building materials, equipment & fixtures, appliances, electronics; Home supplies and cleaners: Household soaps, cleansers & polishes, laundry soaps, foils, wraps, paper products; Miscellaneous: Aviation (excluding freight), employment recruitment, agriculture, lawn and garden, industrial, luggage, cameras, film.

28 | Advertising Age | FactPack

CONSUMER INTERNET USAGE
INTERNET PENETRATION BY ACCESS TECHNOLOGY
Data from eMarketer, using the Federal Communications Commission as its benchmark for broadband households for 2007. Based on 288.5 million people in the U.S. ages 3-plus in 2007. See chart, Page 30.

FACTS. JUST THE FACTS.

Broadband users 139.4 million; 48.3% Not online 103.5 million; 36.0%

HISPANIC FACT PACK SEARCH MARKETING CHINA FACT PACK FACT PACK Publishes July 23 Publishes December 3
Closes June 4 All the data, stats and demographics marketers need to tap into this booming market that is fueling double-digit growth spending by marketers. Capture your share of the dollars by advertising in this indispensible year-round sales tool. Publishes November 5 Closes September 19 The latest data on the sites, tools and options available to convert consumer searches into sales. Advertise your search tools and capabilities to capture your share of this business. Closes October 22 With city stats, demographics, language and cluster data, consumer spending patterns and projections, it’s the one source every marketer will use to understand marketing in China. Advertise your own abilities to deliver brand messaging to the Chinese marketplace.

Dial up users 45.2 million; 15.7%

$243.1 BILLION IN U.S. ONLINE RETAIL SALES IN 2007
Data from Forrester Research’s U.S. eCommerce Report showing projections for 2006 and 2007. All figures are in billions of U.S. dollars. See related chart on Page 34.

Travel $86 billion; 35.4% Computers, hardware & software $19.0 billion; 7.8% Automotive & auto parts $19.0 billion; 7.8% Apparel, accessories & footwear $16.4 billion; 6.7%

Other $90.2 billion; 37.1% Home furnishings $12.5 billion; 5.1%

TO ADVERTISE OR FOR MORE INFORMATION: Suzanne Hermalyn, Director, Custom Marketing Solutions. Tel: 508.497.8688. E-mail: shermalyn@adage.com

© 2007 Crain Communications Inc.

ADAGE.COM

30 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 31

INTERNET USERS IN THE U.S. BY ACCESS TECHNOLOGY
Data from eMarketer (March 2007) using the following sources and methodologies: 1historical data from the International Telecommunication Union (ITU) as a baseline; penetration figures are based on population estimates from the U.S. Census Bureau's International Data Base (IDB); an internet user is USERS, HOUSEHOLDS, SUBSCRIBERS IN MILLIONS 2005 2006

CH
defined as someone who uses the internet at least once per month; 2Broadband is defined as an internet connection of 200 kbps in at least one direction and includes ADSL, cable, satellite, fixed wireless, fiber, powerline, WiMax and emerging technologies used at home. Figures are rounded. 2007 2008 2009 2010

Internet users1
percent change

175.4 283.4 61.9% 108.1 67.3 72.1 43.9 28.2 61.7% 60.9% 17.4 25.6 0.9 116.8

181.9
3.7% 0.9%

188.1 288.5

3.4% 0.9% 1.6

193.9 291.1

3.1% 0.9% 1.4

200.1 293.8

3.2% 0.9% 1.5

206.2 296.3

3.0% 0.8% 1.5

Population ages 3+
percent change

286.0 63.6%
1.7

Internet users as % of population ages 3+
+/- change

65.2% 139.4

66.6% 153.6

68.1% 165.1

69.6% 173.5

Broadband users
percent change

124.3
15.0%

12.1%

10.2%

7.5%

5.1%

Dial-up users
percent change

-17.1% 3.3%

55.8

-19.0%

45.2

-22.8%

34.9

-22.1%

27.2

-17.3%

22.5

Online households 2
percent change

74.5 54.6 19.9

78.6 65.0 13.6

5.5%

82.9 74.1

5.5%

87.8 81.1

5.9% 9.4%

92.3 86.2

5.1% 6.3%

Broadband households 2
percent change

24.4%

19.0% -31.7%

14.0% -35.3%

Dial-up households 2
percent change

-29.4% 0.9

8.8

-23.9%

6.7

-9.0%

6.1

Online households as % of all U.S. households 2
+/- change

62.6% 73.3%
12.4

64.9% 82.7% 28.1

2.2

67.2% 89.4% 31.8

2.4

70.0% 92.4% 34.5 40.9

2.7

72.3% 93.4% 36.2 43.1

2.4

Broadband as % of all online households 2
+/- change

9.4

6.7

3.0

1.0

ADSL broadband households
percent change

32.2% 16.8% 88.9% 1.9%

23

22.2% 14.0% 64.7%

13.2% 11.1% 57.1%

8.5% 7.9%

4.9% 5.4%

Cable broadband households
percent change

29.9 1.7

34.1

37.9

Other broadband households
percent change

2.8

4.4

29.5%

5.7

21.1%

6.9

Total U.S. households
percent change

119

121.2

1.8%

123.3

1.7%

125.5

1.8%

127.6

1.7%

32 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 33

TOP ONLINE ACTIVITIES OF INTERNET USERS
Data from Mediamark Research Inc. (MRI) for U.S. adult internet users only, showing percent of respondents, October 2006, via eMarketer. *Includes traded stocks, bonds or mutual funds. RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 ACTIVITY Used e-mail Obtained the latest news/current events Made a purchase online for personal use Paid bills online Used instant messenger Obtained financial information Obtained sports news/information Played games online Made personal or business travel plans Obtained medical information Downloaded music Visited a TV network’s or TV show’s website Tracked investments* Obtained information about real estate Looked for employment Watched video online Listened to radio on the internet Made a purchase for business use Obtained information for a new car purchase Visited blogs Made a phone call online Used online gambling site INTERNET USERS 70.5% 40.2 34.2 30.7 26.8 24.8 23.8 22.4 19.8 17.4 15.7 14.1 13.2 12.3 12.1 11.4 10.9 10.7 10.0 6.7 2.6 2.2 % CHG VS. 2005 1.6% -4.6 5.7 NA 20.6 -5.2 -7.0 -1.3 -0.5 -2.5 23.3 -1.7 NA -8.3 -7.7 123.7 3.8 2.4 -12.1 163.9 197.7 NA % CHG VS 2002 9.7% 12.3 57.7 NA NA 21.4 15.1 22.4 24.9 26.2 NA 35.1 NA 36.6 11.3 NA 25.6 51.5 -2.7 NA NA NA EFFECT

EFFECT OF TECHNOLOGY ON THE SOCIAL LIVES OF U.S. ADULT INTERNET USERS
Data from Henley Center HeadlightVision for Yahoo and OMD, September 2006, via eMarketer. Table shows percent of respondents for July-August 2006. RESPONDENTS BY AGE 18 TO 34 55% 55 46 40 36 34 35 PLUS 36% 44 32 22 17 18

Wouldn’t be able to stay in touch with friends and family without technology Enjoy shopping online Have friends who live in different cities and countries because of the internet Give advice about new technology to others Technology has provided me with a platform to overcome my shyness Social life would suffer without technology

Marketing has a new secret weapon!
ActiveAccess is the ultimate opt-in channel that allows you to deliver:
-Videos -Promotions -Entertainment -Special Alerts -Messaging & Text Crawls -Advertising -Breaking News & Information

SIMULTANEOUS ACTIVITIES WHILE ONLINE
Data from BIGresearch, December 2006, for 15,167 U.S. adults, via eMarketer. RANK 1 2 3 4 5 ACTIVITY Watching TV Reading mail Listening to the radio Reading newspaper Reading magazine Other activities REGULARLY 39.5% 24.5 22.7 12.3 9.2 25.7 OCCASIONALLY NEVER 30.4% 28.2 38.2 21.1 26.4 45.5 30.1% 47.4 39.1 66.6 64.5 28.9

Directly to the computer desktop.

Get in on the secret!
Visit www.activeaccess.com/secret

800.331.5086

34 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 35

U.S. ONLINE RETAIL SALES
Data from Forrester Research. Table shows U.S. eCommerce data for 2006 and 2007. All figures are projected in billions of U.S. dollars. See related pie chart on Page 28. U.S. ONLINE RETAIL SALES PROJECTIONS (IN BILLIONS) PROJECTED PROJECTED 2007 2006 % CHG $16.4 7.0 19.0 1.9 5.9 19.0 1.5 11.9 1.0 3.1 7.2 7.2 12.5 4.8 1.0 9.9 6.3 1.6 5.4 0.7 6.8 7.0 86.0 243.1 $13.8 5.9 15.9 1.6 5.3 16.8 1.4 9.8 0.8 2.6 6.2 5.8 10.2 4.0 0.8 8.2 5.3 1.3 4.3 0.5 5.8 5.8 73.4 205.5 18.8% 18.6 19.5 18.8 11.3 13.1 7.1 21.4 25.0 19.2 16.1 24.1 22.5 20.0 25.0 20.7 18.9 23.1 25.6 40.0 17.2 20.7 17.2 18.3 1 2 3 4 5 6 7 8 9 10

TOP CATEGORIES BY TIME SPENT ONLINE
Data from comScore Media Metrix. Unique visitors in thousands for February 2007. DAILY MINUTES SHARE OF ONLINE UNIQUE VISITS RANK CATEGORY PER USER DAY (000) Portals E-mail Instant messengers Retail Entertainment Games Online gaming Community Directories/resources Discussion/chat 18.5 7.8 5.4 4.2 3.0 2.5 2.2 1.7 1.6 1.6 33.5% 14.1 9.8 7.6 5.4 4.6 4.0 3.1 2.9 2.8 160,080 125,834 74,064 136,863 129,441 71,390 56,532 110,141 121,896 46,043

CATEGORY Apparel, accessories & footwear Appliances & tools Autos & auto parts Baby products Books Computer hardware & software Computer peripherals Consumer electronics Cosmetics & fragrances Flowers & cards Food, beverages & groceries Gift cards & gift certificates Home furnishings Jewelry Movie tickets Music & videos Office supplies OTC medicines & personal care Event tickets Pet supplies Sporting goods & apparel Toys & video games Travel Total

Local television stations are online publishers. TVB ePort will provide the eBiz connectivity.

Enabling eBusiness

To learn more, contact info@tvb-eport.net

36 | Advertising Age | FactPack

VIDEO ONLINE
TOP VIDEO PROPERTIES
Data from comScore Video Metrix for January 2007 for all persons at home, work, college. Unique Streamers are in thousands. PROPERTY Google sites YouTube.com (part of Google) Fox Interactive Media Yahoo sites Time Warner network Viacom Digital Microsoft sites Disney Online Apple ESPN NBC Universal CBS Corp. ABC.com Total streaming audience STREAMERS 54,732 48,666 41,633 35,872 24,384 18,921 18,127 12,634 7,695 6,356 5,724 5,344 5,268 122,872

TYPE OF VIDEO VIEWED
Data from eMarketer showing percent of 1,463 U.S. respondents asked the types of video content viewed for February-March 2006. VIDEO TYPE News stories Movie previews Weather Jokes/bloopers Music videos TV show clips/excerpts Sports content Video game content Cartoons TV previews Short films Educational content TV shows Business/work-related content User-generated content RESPONDENTS 40.0% 30.0 30.0 28.0 27.0 17.0 16.0 13.0 11.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 14.0

Ready for online video advertising? Confused by the options?

USER-GENERATED VIDEO
Screen Digest estimates that 47% of online video content was user generated in 2006, and projects an increase to 55% by 2010, according to eMarketer.

Full-length movies Other None of the above

Keeping up with constant change can be a full time job. We know, because it’s OUR full time job. We place hundreds of campaigns across our publisher network so you don’t have to. If you have questions about online video and how to get your brand involved in the video revolution, ask Tremor Media. Call Randy Kilgore at 646.421.6210

U.S. ONLINE VIDEO AD DOLLARS AND VIEWERS
Data from eMarketer, which benchmarks its ad spending projections against Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC), for which the last full year measured was 2005. Video viewer defined as an one who downloads or streams video (content or advertising) at least monthly. 2004 Online video ad spending Video ad spending growth U.S. viewers (millions) $135 58.8% 69.6 2005 $225 66.7% 89.4 U.S. MARKETING SPENDING IN MILLIONS 2006 2007 2008 2009 $410 71.1% 107.7 $775 68.8% 123.4 $1,300 69.2% 137.2 $2,000 50.0% 149.0 2010 $2,900 42.4% 157.0

www.tremormedia.com

38 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 39

SEARCH
SHARE OF 6.9 BILLION ONLINE SEARCHES
Source: comScore qSearch, a division of comScore Networks. Point change based on share of 6.9 billion searches in January 2006. The 2007 figure represents a 26% overall increase in searches. PERCENT OF SEARCHES JAN. 2007 JAN. 2006 +/- CHG 47.5% 28.1 10.6 5.2 5.0 3.5 41.4% 28.7 13.7 5.6 NA NA 6.1 -0.6 -3.1 -0.4 NA NA RANK 1 2 3 4 5 SITE Google sites Yahoo sites Microsoft sites Ask network Time Warner network All other

TOP 25 U.S. SEARCH ENGINES
Data from Hitwise—which collects usage data through partnerships with ISPs and opt-in panels monitoring more than 10 million users in the U.S. and more than 25 million worldwide—for the week ending March 31, 2007 . RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 NAME Google Yahoo Search MSN Search Google Image Search Ask.com AOL Search Yahoo Image Search Windows Live Search My Web Search Dogpile Lycos Search MSN Video Mamma.com Yahoo Video Ask - Images SurfSanity AltaVista Google Book Search Google Scholar Ask.com UK InfoSpace HP Search Yahoo Directory AOL Video Search.com DOMAIN www.google.com search.yahoo.com search.msn.com images.google.com www.ask.com www.aolsearch.com images.search.yahoo.com www.live.com www.mywebsearch.com www.dogpile.com search.lycos.com video.msn.com www.mamma.com video.search.yahoo.com images.ask.com www.surfsanity.com www.altavista.com books.google.com scholar.google.com www.uk.ask.com www.infospace.com search.hp.netscape.com dir.yahoo.com video.aol.com www.search.com MARKET SHARE 51.83% 15.94 9.13 6.02 2.15 1.73 1.51 1.05 1.05 0.58 0.47 0.34 0.33 0.32 0.28 0.27 0.25 0.24 0.22 0.19 0.18 0.16 0.16 0.16 0.15

SEARCH ENGINE MARKET SHARE
Source: comScore qSearch, a division of comScore Networks.

All other 3.5% Google 47.5% Time Warner network 5.0% Ask.com 5.2%

20 21 22 23 24 25

MSNMicrosoft 10.6%

SEARCHES PER SEARCHER
Source: comScore qSearch, a division of comScore Networks. RANK 1 SITE Google sites Yahoo sites Microsoft sites Ask network Time Warner network MONTHY SEARCHES PER SEARCHER JAN. 2007 JAN. 2006 +/- CHG 29.3 22.3 13.4 10.1 11.3 27.1 21.4 15.5 10.4 NA 2.2 0.9 -2.2 -0.3 NA 2 3 4 5

Yahoo 28.1%

40 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 41

TOTAL U.S. INTERNET AD REVENUE MINUS TRAFFIC ACQUISITION COSTS FOR GOOGLE & YAHOO
Data from an eMarketer February 2007 report based on reported revenue through 2006 and eMarketer projections for Google and Yahoo for 2007. Traffic acquisition costs (revenues shared with affiliate sites on network) are commonly abbreviated as “TAC.” Gross revenue minus TAC is net revenue. GOOGLE NET REVENUE (IN MILLIONS) 2005 2006 2007 GROWTH VERSUS PRIOR YEAR 2005 2006 2007 GOOGLE SHARE OF INTERNET AD SPENDING 2005 2006 2007 SHARE OF PAID SEARCH AD SPENDING 2005 2006 2007 46.9% 58.7 75.6 19.0% 15.0 15.8 65.8% 73.8 91.4 19.2% 25.0 32.1 19.4% 18.3 18.1 38.7 43.2 50.3 90.7% 69.9 53.0 YAHOO 37.3% 22.9 18.0 GOOGLE & YAHOO $2,410 4,095 6,265 $2,439 2,996 3,536 YAHOO

GOOGLE’S ZEITGEIST
Data from Google. Google Zeitgeist for the week ending March 31, 2007, shows the top 10 gaining search queries published by Google. RANK 1 2 3 4 5 6 7 8 9 10 QUERY blades of glory ron jeremy hayden panettiere transformers gwen stefani cesar chavez xbox 360 elite happy feet discovery channel allegra versace

HITWISE’ SHOPPING TERMS
Data from Hitwise for four weeks ending March 10, 2007. Hitwise collects usage data through partnerships with ISPs and opt-in panels monitoring more than 10 million users in the U.S. and more than 25 million worldwide. Terms are those that drove traffic to shopping on the web. RANK 1 2 3 4 5 6 7 8 9 QUERY ebay craigslist ebay.com walmart target amazon best buy amazon.com www.ebay.com home depot lowes sears prom dresses craigslist.com circuit city walmart.com craigs list ticketmaster netflix target.com costco qvc dell ebay motors hollister

WORDTRACKER
Data from Wordtracker’s Keywords report, April 3, 2007, for the previous 48 hours. The hits count is the number of sightings of a keyword in a database of search terms from queries on metacrawlers. Adult terms are omitted. RANK 1 2 3 4 5 2010 $485 1,258 2,089 7,740 6 7 8 9 10 QUERY myspace google anna nicole smith yahoo ebay akon myspace.com antonella barba games play mapquest

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

U.S. SEARCH MARKETING SPENDING TO 2010
Data from Forrester Research’s “U.S. Online Marketing Forecast,” May 2, 2005. Paid inclusion is the amount spent on submitting pages to paid directories (like Froogle, Yahoo Shopping) for cataloging. Paid search is the amount spent on paid search media on search engines. Contextual listings is the amount spent buying contextual ads across content sites in different search engine or aggregator networks. Agency fees is the amount of money paid to interactive agencies or search marketing vendors for help managing the above three buys. CHANNEL Paid inclusion Agency fees Contextual listings Paid search Total DIGITAL MARKETING SPENDING IN MILLIONS OF DOLLARS 2006 2007 2008 2009 $321 691 1,181 4,873 7,067 $366 813 1,426 5,682 8,287 $408 946 1,665 6,444 9,463 $447 1,092 1,881 7,113 10,533

11,571

42 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 43

MOBILE
MOBILE DEVICE USE AND CONTENT CONSUMPTION
Data from M:Metrics. “U.S. Mobile Subscriber Monthly Consumption of Content and Applications” surveyed 30,567 U.S. mobile subscribers. Data based on three-month moving average for period ending Jan. 31, 2007. Projected subscriber totals are in thousands. RANK 1 2 3 4 5 6 7 8 9 ACTIVITY Sent text message Used photo messaging Browsed news and information Purchased ringtone Used personal e-mail Used mobile instant messenger Used work e-mail Downloaded mobile game Purchased wallpaper or screensaver U.S. SUBSCRIBERS 78,325 29,416 20,585 20,024 16,932 12,643 10,187 7,288 6,903 % SHARE 39.2% 14.7 10.3 10.0 8.5 6.3 5.1 3.6 3.5 % CHG 2.5% -0.2 2.0 5.0 0.0 1.2 0.6 -2.2 4.3

MOBILE PHONE ADVERTISING, REVENUE AND PENETRATION
Data from eMarketer. 1 Includes spending on text-message promotions and ad-supported voice minutes; 2 Includes spending on ad placements around mobile video content, mobile music, mobile TV and mobile social networks. 3 Messaging includes text, multimedia and instant messaging and e-mail; 4 Entertainment includes graphics/logos, games, ringtones, other music, audio, interactive entertainment and communities, adult, TV and film; 5 Information includes productivity, non-voice directory, news, sports, travel, etc. Figures are rounded. 2006 2007 2008 2009 2010

AD SPENDING IN MILLIONS
Worldwide general mobile ad spending 1 U.S. general mobile ad spending 1 Worldwide mobile multimedia ad spending 2 U.S. mobile multimedia ad spending 2 Worldwide total spending U.S. total spending $1,432 410 109 11 1,541 421 $2,496 878 215 26 2,710 903 $4,316 1,547 421 55 4,736 1,602 $6,141 2,285 749 110 6,890 2,395 $9,006 3,202 1,295 213 10,300 3,415

U.S. REVENUE IN BILLIONS
Messaging 3 Entertainment 4 Information 5 Total $3.3 1.1 1.0 5.4 $5.9 2.6 2.0 10.5 $10.1 5.9 3.8 19.8 $12.5 9.5 5.1 27.1 $15.0 15.0 7.5 37.5

YAHOO LEADS IN MOBILE USAGE
14.1 million mobile subscribers accessed e-mail, instant messaging, search, news, directory or weather categories using Yahoo sites, according to M:Metrics, followed by Google at 8.2 million. See note at right.

TOP MOBILE NEWS SITES
Source: M:Metrics. Subscribers in millions are projected from a survey of 30,567 mobile phone users based on a three-month moving average for period ending Jan. 31, 2007. A projected 26,860,374 respondents accessed “News and Information” sites ”ever in a month.” RANK 1 2 3 4 5 6 7 8 9 10 SITE CNN/cnn.com Yahoo ESPN Sports News ABCNews.com Fox News MSN Mobile/MSNBC Fox Sports USA Today NFL AOL Mobile SUBSCRIBERS 3.8 3.6 2.5 1.7 1.6 1.6 1.2 1.1 1.0 0.9

PENETRATION
U.S. mobile phone subscribers (millions) As % of U.S. population 228.7 76.5% 249.3 82.6% 269.2 88.3% 285.4 92.7% 296.8 95.4%

WILLINGNESS TO WATCH ADS
Data from Harris Interactive (August 2006) via eMarketer showing U.S. adult mobile phone users' willingness to watch advertising on their phones in return for free mobile phone applications. RATING 7 (very willing) 6 5 4 (neutral) 3 2 1 (not at all willing) % OF RESPONDENTS 10% 7 9 12 6 6 51

U.S. HANDSET MARKET SHARE
Data from Strategy Analytics, prepared by Wireless Device Strategies Service. Units are in millions for calendar 2006. Figures are rounded. RANK 1 2 3 4 5 6 7 VENDOR Motorola LG Samsung Nokia Kyocera Sanyo Others Total UNITS 61.3 24.2 24.1 22.7 6.8 5.3 14.8 159.1 % CHG 29.5% -2.4 3.2 -6.4 -2.5 -3.8 0.5 8.4 % SHARE 38.5% 15.2 15.1 14.3 4.3 3.3 9.3 100.0

44 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 45

E-MAIL
TOP 10 E-MAIL SERVICE PROVIDERS
Data from JupiterResearch E-mail Marketing Buyers Guide, October 2006. Volume figures (not shown) are self-reported by the ESPs and corroborated by JupiterResearch; volume may not be a precise measure of each company's size. RANK VENDOR 1 2 3 4 5 Epsilon Interactive/Dart Mail Cheetahmail Yesmail JL Halsey (E-mail Labs and Lyris) Exact Target RANK VENDOR 6 7 8 9 10 e-Dialog Silverpop Acxiom Digital Responsys Constant Contact RANK GAME 1 2 3 4 5 World Of Warcraft Star Wars:Empire At War MS Age Of Empires III Civilization IV Guild Wars Factions

GAMES
TOP 10 ONLINE PLAYABLE GAMES
Data from NPD Group for 2006 by minimum number of units sold in thousands (U.S. retail, including online) Games are PC editions only. UNITS 808.0 355.5 305.0 274.8 225.5 RANK GAME 6 7 8 9 10 Call Of Duty 2
Lord of the Rings:Battle For Middle Earth II The Sims 2:University Expansion Pack

UNITS 204.3 201.5 195.6 190.8 189.8

Warcraft III Battle Chest Battlefield 2

U.S. E-MAIL MARKETING SPENDING AND USER DATA
Data on ad spending from Forrester Research’s U.S. Online Marketing Forecast 2005 to 2010. Data on e-mail volume including both personal and commercial e-mail (in trillions) and e-mail users—defined as those age 3-plus using e-mail more than once a month—from eMarketer. 2005 2006 2007 2008 2009 2010

IN-GAME ADS ARE LESS ANNOYING THAN OTHER INTERACTIVE ADS
Data from Forrester Research’s survey of 5,051 North American households about their gaming activities “Why Game Marketing Matters Report.” To the question: “For those type of ads that you have seen, please indicate which attitudes best describe your interaction with the ads,“ those shown below answered, “The ad was annoying.”
0 20 40 60 80

U.S. E-MAIL MARKETING SPENDING IN MILLIONS
Newsletter sponsorships Outsourced e-mail delivery E-mail list rental Total E-mail % total online mktg $326 378 747 1,451 10% $380 396 746 1,522 9% $425 414 761 1,600 8% $468 424 665 1,557 7% $505 479 622 1,606 7% $541 542 581 1,664 6%

Pop-ups Banner ads Product placements or sponsorships of an 0% online game
0

25% 50% 75% Percent responding (base: North American online consumers)
20 40 60 80

100%

ADVERGAMERS USE ADVERTISING
“18% of those who play advergames say that advertisements help them decide what to buy, compared with only 12% of nongamers,” according to Forrester Research’s July 2006 “Why Game Marketing Matters” report.

U.S. E-MAIL VOLUME
Volume (in trillions) 2.09 2.37 2.69 NA NA NA

PROJECTED U.S. IN-GAME VIDEO AD REVENUE
Data from eMarketer, April 2007. Figures in millions of dollars. 1 Includes static, dynamic and rich media in-game ads; product placement/integration and advergaming and excludes mobile games; 2 Refers to games wholly designed with the intention of promoting a product and excludes mobile games. 2006 U.S. video-game advertising 1 Advergames only 2 $346 164 2007 $502 207 2008 $665 262 2009 $829 311 2010 $928 339 2011 $969 344 156.2 3.7% 89.1% 161.5 3.4% 89.7% 166.8 3.3% 90.4% 171.8 3.0% 91.1% 176.5 2.7% 91.8% 180.8 2.4% 92.2%

U.S. E-MAIL USERS
E-mail users (in millions) Percent change E-mail users as % of internet users

46 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 47

SOCIAL NETWORKING
TOP SOCIAL NETWORKING SITES BY UNIQUE VISITORS
Source: comScore Media Metrix, via eMarketer. Unique visitors in thousands for 173.4 million total visits in September 2006 versus 169.3 million in September 2005. See Page 10 for more extensive notes. UNIQUE VISITORS (000) SEPT. 05 % CHG 21,640 16,190 8,540 5,285 4,564 7,947 2,958 NA NA 5,932 3,242 797 775 365 1,201 3,318 305 730 46 57 NA 169,232 158.0 -8.0 56.0 107.0 116.0 -12.0 134.0 NA NA -40.0 -15.0 200.0 111.0 322.0 -13.0 -69.0 157.0 6.0 NA 420.0 NA 2.0 RANK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 SITE MySpace.com Classmates.com sites Facebook.com Bolt Media Windows Live Spaces Xanga.com Flickr.com Yahoo 360° MyYearbook.com LiveJournal.com Hi5.com Bebo.com Tagged.com 43Things.com Friendster.com TagWorld.com Linkedin.com Piczo.com Sconex.com Orkut.com Cyworld Total internet audience (U.S.) SEPT. 06 55,849 14,926 13,341 10,934 9,844 6,956 6,925 5,697 3,949 3,546 2,740 2,394 1,638 1,541 1,043 1,025 786 773 590 294 254 173,428

SOCIAL NETWORK AD SPEND TEEN SOCIAL NETWORK USE
Data from eMarketer for the U.S. only for sites where social networking is the primary activity. Social network offerings from portals and other sites include Orkut (Google), Yahoo 360 (Yahoo) and MSN Spaces (MSN). Vertical social networks are social networking sites devoted to a specific hobby or interest. Marketer-sponsored social networks are created by a marketer and are either stand-alone sites or part of a larger marketer site. In all cases, figures include online advertising spending as well as site or profile page development costs. SOCIAL NETWORK AD SPEND. 2006 2007 2011 Millions of dollars % all online ad spending BY NETWORK TYPE MySpace $350 2.2% $865 4.7% $2,150 8.5% 2007 $525 Data from Pew Internet & American Life Project, January 2007 for 493 respondents ages 12-17 who use social networking sites; via eMarketer. % OF RESPONDENTS

FREQUENCY
Several times a day Once a day 3-5 days a week 1-2 days a week Every few weeks Less often 22% 26 17 15 9 11

REASON FOR USE
Stay in touch with friends you see Stay in touch w/friends you rarely see Make plans with your friends Make new friends Flirt with someone 91% 82 72 49 17

General social network sites (Facebook, Bebo, Piczo, Friendster, etc., not MySpace) 200 Network offerings from portals, other sites Vertical and marketer-sponsored networks Total 95 45 865

VISITORS TO SOCIAL NETWORK SITES BY AGE
Data from comScore Networks via eMarketer for August 2006. AGES 12-17 18-24 25-34 35-54 55+ Unique visitors (000) MYSPACE 11.9% 18.1 16.7 40.6 11.0 55,778 FACEBOOK 14.0% 34.0 8.6 33.5 7.6 14,782 FRIENDSTER 10.6% 15.6 28.2 34.5 8.1 1,043 XANGA 20.3% 15.5 11.0 35.6 7.3 8,066 TOTAL INTERNET 9.6% 11.3 14.5 38.5 18.0 173,407

48 | Advertising Age | FactPack

Digital Marketing & Media | Advertising Age | 49

AWARDS & TOP AGENCIES
CLAUDE SHADE

TOP 10 DIGITAL AGENCIES
Data from Ad Age’s upcoming Agency Report (AA, April 30, 2007). Tables on this page are rankings by 2006 U.S. interactive revenue in millions. All figures are Ad Age estimates. Agencies with interactive revenue greater than 75% of total revenue are considered wholly interactive and are ranked at 100% of the revenue; those with less than 75% interactive revenue are ranked by their interactive revenue only. RANK 1 2 3 4 5 6 AGENCY [PARENT] Avenue A/Razorfish Sapient Digitas Wunderman Rapp Collins Worldwide OgilvyInteractive Organic AKQA DraftFCB IMC2 U.S. INTERACTIVE REVENUE 2006 2005 % CHANGE $235.4 228.0 163.2 113.4 107.1 103.2 102.0 98.0 94.1 92.7 $189.8 176.0 155.0 NA 95.9 91.2 72.0 62.0 90.2 64.0 24.1 29.6 5.3 NA 11.7 13.2 41.7 58.1 4.3 44.9

GOODBY TEAM: From l., Will McGinness, Toria Emery, Ronny Northrop, Rich Silverstein, Mike Geiger, Hashem Bajwa, Jeff Goodby and Keith Anderson

7 8 9 10

Goodby, Silverstein & Partners was selected Digital Agency of the Year in Advertising Age’s Digital A-List Special Report (AA, Oct. 16, 2006). Goodby’s dramatically ramped-up resources devoted to interactive were credited with boosting the agency’s prospects. “Check out the cowabduction website for the California Milk Processors Board, or Goodby’s use of interactive techniques to transform GM’s Saturn car brand, or, if you haven’t seen it yet, the e-mailable Comcast marionette. All make a great case that this shop is not what it was,” wrote Ad Age, in the report. Nike was selected Digital Marketer of the Year. “Nike has done a masterful job of maintaining a consistent brand image across various channels, making sure what consumers experience in stores carries over seamlessly to the web,” Ad Age said. MediaVest was named Digital Media Agency of the Year. “[The agency beefed] up its digital expertise, building a 60-person team, MediaVest Digital Connections, [to] help the agency apply an integrated approach to media planning and buying. It’s helped the agency win digital business from such marketers as Coca-Cola Co., EarthLink and, most recently, Mattel,” according to the report. Philip’s Norelco Bodygroom effort was named Digital Campaign of the Year. The report noted: “At the center of the push is the Bodygroom guy, the white bathrobe-wearing gent who resides at shaveeverywhere.com and has been visited by more than 1.7 million unique visitors since the website’s May launch. In a mock-smooth tone, he praised the virtues of trimming, delivering lines, like `With a hair-free back, wellgroomed shoulders and an extra optical inch on my [bleep, while an image of carrots flashes on the screen], life has gotten pretty darn cozy.’ The product was the top seller in the Amazon.com personal-care category for eight consecutive weeks and overall has tripled original sales expectations.” THE BODYGROOM GUY

TOP 10 AD NETWORKS
Data from comScore Media Metrix. Ad networks extracted from comScore’s February 2007 Ad Focus ranking by Ad Age. Unique visitors are in thousands. Reach % denotes the percentage of the total internet population that viewed a particular entity at least once in February. RANK 1 2 3 4 5 6 7 8 9 10 SITE Advertising.com ValueClick Casale Media Network Tribal Fusion Vendare NetBlue - TrafficMarketplace Blue Lithium DRIVEpm Specific Media 24/7 Real Media PrecisionClick UNIQUE VISITORS 149,094 128,754 113,193 111,285 103,909 92,011 91,925 90,851 89,750 75,983 % REACH 85.0% 73.0 64.0 63.0 59.0 52.0 52.0 52.0 51.0 43.0

50 | Advertising Age | FactPack

MISCELLANEOUS
PODCAST AD SPENDING AND USERS
Data from eMarketer, February 2007. 1 Includes advertising and sponsorship spending. 2 Individuals who have ever downloaded a podcast. 3 individuals who download an average of one or more podcast(s) per week. 2006 U.S. podcast ad spending (millions) 1 Total podcast audience (millions) 2 Active podcast audience (millions) 3 $80 10.0 3.0 2008 $240 25.0 7.5 2011 $400 55.0 18.0

WHAT MIDDLE MANAGERS SAY ABOUT OBTAINING NECESSARY DATA
Data from Accenture, January 2007 via eMarketer. The table shows the percent of 1,009 U.S. and U.K. respondents. % RESPONDING Miss information that might be valuable almost every day because it exists elsewhere in the company and just cannot be found Having to go to numerous sources to compile information is a difficult aspect of managing information for their job Less than half of the information received is valuable Information that is obtained has no value Gathering information about what other parts of their company are doing is a big challenge Accidentally use the wrong information at least once a week Other parts of the company are not willing to share information There is so much information available that it takes a long time to actually find the right piece of data Competitor information is hard to get 59% 57 53 50 45 42 40 36 31

Because confusion still reigns in the market… Because marketers know they need to be digital today, but don’t always know how… Ad Age Digital is the filter that separates hype from reality, with insights from the industry’s best minds, including… • Steve Rubel, one of the most influential bloggers in the world • Danny Sullivan, the sultan of search • Bob Garfield, author of “The Chaos Scenario”

TO REACH US
By e-mail: This report was compiled by Advertising Age in Chicago. Contact DataCenter@AdAge.com; Postal mail: Advertising Age, 711 Third Ave., New York, N.Y. 10017; Phone: (212) 210-0100. Subscription and print single copy sales (888) 288-5900; Advertising (212) 210-0159; Library services (312) 649-5476. DataCenter staff: Bradley Johnson, R. Craig Endicott, Kevin Brown, Mike Ryan, Maureen Morrison, Maura Wall.

Sign up for the Ad Age Digital E-mail Newsletter at adage.com/register. To advertise, contact Allison Arden, Associate Publisher, at 212-210-0794 or aarden@adage.com.

© 2007 Crain Communications Inc.

ADAGE.COM

THE WORLD’S LEADING BUSINESS WEBSITE

THE TIME INC. BUSINESS & FINANCE NETWORK