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comscore.com/mobile comScore, Inc. Proprietary.

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Introduction Ben Martin | Director, Global Marketing Insights | bmartin@comscore.com

1st

The concept of mobile first Although dominant, the share of In this report, we will review human
is no longer exclusive to consumer audiences and time on necessities from Maslows Hierarchy
technology-focused businesses mobile devices is unevenly distributed of Needs and align them with pockets
and consumers, and is the default between categories, demographics of particularly intense mobile usage.
position for a growing number and geographies. International Using data from 9 global regions, we
of internet users, who now spend the markets follow paths of digital will suggest that mobile users have a
majority of their digital time on evolution based on combinations of hierarchy of digital needs that drive
smartphones and tablets. global and local influences. their consumption on these platforms.

comScore, Inc. Proprietary. 2


Mobile Evolution
In 2017, mobile devices have an unquestionable
role as consumers primary digital tool

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Our primary tool
Across the globe, mobile devices dominate total minutes spent online, passing 90% in Indonesia

% mobile share of total digital minutes

71%
USA Canada UK Spain Italy
67%
62% 64%
61%

91%

75%
72% 71%
Brazil Mexico China Indonesia

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 4


Mobile has become a primal need
A recent Boston Consulting Group survey demonstrates that consumers would be increasingly unwilling
to surrender their mobile devices, even at the expense of some traditional needs

More than three in 10 Almost a third 45% said they 46% would be willing More than 55% would
would stop seeing their of Americans would rather would put off going to give up a day off rather forgo dining out
friends in person give up sex for a year on vacation per week for 12 months

Source: The Boston Consulting Group (BCG) comScore, Inc. Proprietary. 5


2016 was a year of mobile milestones
The past year featured a number of milestones that indicate continued growth of smartphone and tablet consumption

MARCH JUNE SEPTEMBER


US mobile minutes Mobile apps surpass 7 out of 10 Brazilian
exceed 1 billion for the 50% of all digital time internet users now access
first month ever in the UK via mobile in a month

APRIL JULY AUGUST DECEMBER


US consumers spend 2x as Fastest growing app 30% of Spanish internet UK records its most
many minutes on mobile as Pokmon Go achieves 55m users no longer access via monthly mobile
desktop for first month ever US unique users in first month desktop in a month minutes of the year

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 6


We are now firmly in the app age
As consumers have come to rely on mobile devices in more aspects of daily life, the customisable
and refined experience of apps have led to their dominance within mobile consumption

% mobile share of total digital minutes % app share of total mobile minutes

USA Canada UK Spain Italy

87% 88%
86% 82% 87%

90%

Brazil Mexico 99% China Indonesia


91%
89%

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 7


Apps readily fit into consumers daily lives
The constant availability of mobile devices, coupled with ease of app usage are a perfect fit for consumers lives.
Taking two major UK categories, we can see clear peaks in usage based on the need for these types of activity

Share of UK app minutes by hour % of UK total


for social media / news categories mobile mins
Social News
Social

News

LATE NIGHT EARLY MORNING DAYTIME EARLY EVENING PRIME


12am 7am 7am 10am 10am 5pm 5PM 8pm 8pm 12am

Source: comScore Custom Solutions, Jan 2017, United Kingdom comScore, Inc. Proprietary. 8
Mobile is the go-to destination for most video viewers
An analysis of YouTubes digital consumption in the UK reveals that mobile users
now account for the majority of video minutes for users of all age and gender demographics

% of YouTube video minutes (UK)


Desktop Mobile

80%
18-34 18-34
year olds year olds
67%
85%
35-44 35-44
year olds year olds
69%
MALES FEMALES
45+ 45+
year olds year olds
69%

60%

Source: comScore Video Metrix Multi-Platform, United Kingdom, December 2016 comScore, Inc. Proprietary. 9
Mobile meets primary needs
The degree to which categories are mobile first can be aligned
with human need states from Maslows Hierarchy of Needs

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The uneven distribution of Mobile First
The balance of audiences and consumption between desktop and mobile is dramatically different
between categories, and can be loosely divided into four areas, shown here with data from Canada

Category mobile users & minutes as a % of desktop


total minutes
350%
Massive mobile minutes, but Mobile-first categories in
there are still more of the PERSONALS terms of both minutes
300% audience on desktop
CAREER
and audiences
SOCIAL SERVICES
NETWORKING
250%
RETAIL - FOOD
200% NEWS /
INFORMATION WEATHER

150% HEALTH

RETAIL
100% ENTERTAINMENT
APPAREL
50% Legacy Audiences have moved to mobile,
PORTALS BANKING REAL ESTATE
desktop categories but time spent has not yet followed
0% TRAVEL
0% 50% 100% 150% 200% 250%
unique users

Source: comScore MMX Multi-Platform, Canada, January 2017 comScore, Inc. Proprietary. 11
Maslows hierarchy of needs (and how mobile meets it)
This familiar theory from Abraham Maslows 1943 paper "A Theory of Human Motivation is still considered
an important framework in understanding behaviour. Many highly mobile-skewed digital behaviours fit these needs.

Many key uses of mobile devices can be aligned with this set of needs

SELF-ACTUALISATION | Travel

ESTEEM | Newspapers, Social networking

LOVE / BELONGING | Personals

SAFETY | Banking, Weather, Career services

PHYSIOLOGICAL | Health, Apparel, Retail - food, Real estate

comScore, Inc. Proprietary. 12


Physiological
Physical requirements for human
survival and health, which should
be met first.
These needs include air, water
and food, as well as clothing
and shelter for protection from
the elements.

comscore.com/mobile comScore, Inc. Proprietary. 13


Time spent on food retail grows faster than mobile overall PHYSIOLOGICAL

Data from the UK shows how food purchasing (notably delivery services) has outpaced the
growth of general mobile usage, as consumers still reach for their phones to order takeaways

2016 total mobile minutes (as a percentage of January 2015 total)

Total Internet : Total Audience Retail - Food

140%

130%

120%

110%

100%

90%

80%
January February March April May June July August September October November December

Source: comScore MMX Multi-Platform, United Kingdom comScore, Inc. Proprietary. 14


Mobile provides largest top-of-funnel access to real estate PHYSIOLOGICAL

In the majority of markets, real estate audiences are now larger on mobile than on desktop, but time still
lags behind, suggesting mobile usage still largely occurs at the research stage of the purchase funnel

Real estate category reach / mins (as a % of desktop reach / mins)

Mobile reach as % of desktop Mobiles mins as % of desktop Total desktop reach / mins

250%

200%

150%

100%

50%

0%
USA Canada UK Spain Italy Brazil Mexico Indonesia

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 15


Apparel shopping is a key driver of mobile retail PHYSIOLOGICAL

Especially in North American and European markets, clothing is one of the top retail uses
of mobile devices. Other top 5 top categories vary dramatically from market to market

Reach / rank of apparel category among retail users

Rank
50% 47%
1st
39% 40%
40% 37% 2nd

3rd
30% 28% 27%
4th
20%
20%
5th
12%
11%
10% 6th

7th
0%
USA Canada UK Spain Italy Brazil Mexico China Indonesia

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 16


Smartphones enable daily healthy habits PHYSIOLOGICAL

Formation of habits is a common theme for the health industry. The rise of activity trackers and health
apps has seen associated increases in daily smartphone audiences for the health category

Average daily smartphone users of the


health category (% versus January 2016)
January 2016 January 2017

+18% +43% +15%


users users users

USA Canada United Kingdom

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 17


Safety
Mobile helps meet modern human
needs for safety and security.
This may mean physical security,
such as safety from weather
conditions, or financial and
career security.

comscore.com/mobile comScore, Inc. Proprietary. 18


Banking audiences trust mobile and depart desktop SAFETY

Despite historic consumer concerns around security on mobile, banking audiences now largely exceed
desktop. More than 50% of these users have abandoned desktop entirely for their banking needs.

Mobile banking category visitors (as a % of desktop)


Mobile + Desktop Mobile only Total desktop visitors

350%

300%

250%

200%

150%

100%

50%

0%
USA Canada UK Spain Brazil Mexico China Indonesia

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 19


Career advancement in the palm of users hands SAFETY

The majority of jobs / career development users are on mobile platforms, with large numbers
abandoning desktop altogether, possibly enjoying the relative privacy afforded, even in working hours

% of total career services users by platform

Desktop only

Multi-platform
USA Canada UK Spain
Mobile only

Italy Brazil Mexico China Indonesia

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 20


Mobile is the primary tool for weather-watchers SAFETY

When location is a consideration, mobile unsurprisingly grows share of time / audiences. Coupled with
time of day needs, weather is one of the most mobile-skewed categories in all markets observed

% of weather category / all users who are mobile only


Mobile only % Mobile only % of Total Digital Population

100%

80%

70%
60%

40%
33% 35%

24% 24%
20% 20%
14%
7% 7%
0%
USA Canada UK Spain Italy Brazil Mexico China Indonesia

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 21


Love / Belonging
From romance to family connections,
mobile communication has created
more avenues to create, maintain
and develop human relationships.

comscore.com/mobile comScore, Inc. Proprietary. 22


Mobile dating has come of age LOVE / BELONGING

Mobile consumption typically skews towards under 35s, but the personals category is more even,
with per-user minutes among over 35s equaling or eclipsing younger users in many regions

Mobile minutes per user for the personals category

USA USA

Canada Canada

UK UK

Spain Spain

Italy Italy

Brazil Brazil
AGES 18-34 AGES 35+
Mexico Mexico

China China

Indonesia Indonesia

0 50 100 150 200 250 0 50 100 150 200 250

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 23


Mobile has (continued to) unlock communication LOVE / BELONGING

The wealth of options for communicating have seen channels such as video calling and instant
messaging appearing to replace the standard SMS function, demonstrated here by data from Spain

% of mobile users performing messaging functions

Exchanged text messages Made video call Used instant messaging service

80

70
+8%
60

50
-28%
40

30

20
+123%
10

0
2014 2015 2016

Source: comScore MobiLens, Spain, 3 Month Average comScore, Inc. Proprietary. 24


Messaging apps have exploded outside USA / Canada / UK LOVE / BELONGING

The share of total mobile minutes among 5 key messaging apps (Facebook Messenger, WhatsApp,
Line, WeChat, QQ messenger) has exploded, particularly in continental Europe, Latin America and Asia

% of mobile minutes for 5 major messaging apps

USA 1.4%

Canada 2.3%
UK 3.2%
Spain 14.5%
Italy 12.9%
Brazil 14.6%
Mexico 15.8%
China 13.2%
Indonesia 14.9%

0% 6% 12% 18%

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 25


Market adoption of messaging apps is a local consideration LOVE / BELONGING

Facebook Messenger takes the majority of minutes among key messaging apps in the US,
while WhatsApp dominates Europe and Latin America. More local brands have established footholds in
China and Indonesia

% of mobile minutes for 5 major messaging apps

Facebook Messenger WhatsApp Line QQ Messenger WeChat

USA

Canada

UK

Spain

Italy

Brazil

Mexico

China

Indonesia

0% 6% 12% 18%

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 26


Esteem
Esteem represents the human
desire to be accepted and valued
by others, which can manifest in
social behaviour as well as
hobbies and interests.

comscore.com/mobile comScore, Inc. Proprietary. 27


Social media accounts for around a third of mobile minutes ESTEEM

Social media has always been seen as a major mobile category, and global figures confirm this,
with this category accounting from between 20-40% of all minutes spent on mobile devices

Social media category % of total mobile minutes

% Social Media % Other

100%

80%

60%

40%
38.6%
32.8% 32.5%
20% 28.5%
25.5% 25.6%
21.4% 21.6%

0%
USA Canada UK Spain Italy Brazil Mexico Indonesia

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 28


Content sharing on social media grows faster than personal updates ESTEEM

Data from Spain shows that users are posting fewer personal statuses, and increasingly using social
platforms to instead share content that reflects their views

% of users sharing on social media (versus January 2016)


Posted status update Posted link to website

20%

15%

10%

5%

0%

-5%

-10%

-15%
Jan-2016 Dec-2016

Source: comScore MobiLens, Spain, 2016 comScore, Inc. Proprietary. 29


Content consumption on social media grows in importance ESTEEM

Spanish data also highlights that users have increased consumption of branded or public content on
social media, while the amount of personal content has remained more or less flat

% of users reading on social media (versus January 2016)

Read posts from Followed posted Read posts from Read posts from
people known personally link to website public figures / celebrities organisations / brands / events
20%

15%

10%

5%

0%

-5%

-10%

-15%
Jan-2016 Dec-2016

Source: comScore MobiLens, Spain, 2016 comScore, Inc. Proprietary. 30


Mobile social users more engaged with news content ESTEEM

One impact of increased content sharing is that mobile social media users are more engaged with news.
A larger share of these users visit the newspapers category than mobile users as a whole

% of users accessing the newspapers category

% of mobile users % of mobile social networking users

+2.8 +3.6
+1.5

USA Canada UK Brazil

+3.5

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 31


Self-actualisation
The realisation of a persons
potential. This can involve artistic
pursuits, or achievement of
aspirational desires such as travel.

comscore.com/mobile comScore, Inc. Proprietary. 32


Apps & comfort with mobile transactions boost Travel SELF-ACTUALISATION

Despite being high-value purchases, travel minutes are shifting in the direction of mobile. The refined
user experience of apps is growing their share at an even faster rate, shown here in UK data

% of all digital travel category minutes (2016)


% Mobile % App

50%
47%

40%42%

30%

24%
20%

14% 50% of mobile time


10% 33% of mobile time

0%
January February March April May June July August September October November December

Source: comScore MMX Multi-Platform, United Kingdom, January 2017 comScore, Inc. Proprietary. 33
Creative apps are flourishing on mobile around the world SELF-ACTUALISATION

The combination of always-present, increasingly sophisticated cameras and streaming


music services have made mobile devices a hotspot for consumers creative pursuits

Total unique visitors for selected apps in selected countries


Snapchat (USA) Spotify (UK) Instagram (Brazil)

90000 10000 27000

80000 9000
26000
8000
70000
7000 25000
60000
6000
24000
50000
5000
40000 23000
4000
30000
3000 22000
20000 2000
21000
10000 1000

0 0 20000
2016 2016 2016

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 34


Global and local variance
Digital markets have often been seen as following relatively set path
of development, led by the US, but mobile markets have evolved
based on increasingly local needs and circumstances.

comScore, Inc. Proprietary. 35


Audience composition
The audience landscape varies dramatically between regions, with some markets such as Indonesia having almost skipped the
desktop phase followed by others, resulting in huge mobile only populations

% of unique users by platform


Desktop Only Multi-Platform Mobile Only

UK

Canada

USA

China

Italy

Brazil

Spain

Mexico

Indonesia

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 36


Who are the mobile only audience?
Mobile only audiences (those who no longer use desktop in a month) skew younger in Latin America and Asia, while in North
America and Europe they are comparatively evenly comprised of users from across age demographics

% of unique users on mobile by age demographic


18-24 25-34 35-44 45-54 55+ 35+

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
USA Canada UK Spain Italy Brazil Mexico China Indonesia

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 37


Time spent on mobile correlates inversely with age
Younger users spend more time per user on mobile devices. Desktop time, while more evenly distributed, is also generally led by
1824s (although the story can vary for overall minutes based on the size of each audience)

Average mins per user (Jan 2017)


Desktop Mobile
Canada Brazil
7000 7000

6000 6000

5000 5000

4000 4000

3000 3000

2000 2000

1000 1000

0 0
18 24 25 34 35 44 45 54 55+ 15 24 25 34 35 44 45 54 55+

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 38


Engagement does not always correlate with reach among top apps
Messaging apps are in much greater evidence outside the US, and Indonesia features BBM at #4, despite its absence elsewhere.
Overall minutes vary heavily from reach even among these most popular apps

Reach % Total Mins

USA UK Brazil Indonesia


90 140000 90 18000 90 70000 90 18000000

80 80 16000 80 80 16000000
120000 60000
70 70 14000 70 70 14000000
100000 50000
60 60 12000 60 60 12000000
80000 50 10000 50 40000 50 10000000
50

40 40 8000 40 30000 40 8000000


60000
30 30 6000 30 30 6000000
40000 20000
20 20 4000 20 20 4000000
20000 10000
10 10 2000 10 10 2000000

0 0 0 0 0 0 0 0

WhatsApp Messenger

YouTube
Google Search
Facebook
Facebook Messenger

Instagram

YouTube
Gmail

WhatsApp Messenger

BBM
Google Search
Gmail
Line
Instagram
Facebook
Google Play

Google Maps
Google Calendar

Google Play

Google Maps
Facebook
Facebook Messenger
YouTube
WhatsApp Messenger
Google Search

Gmail
Amazon Mobile
eBay
Google Play
Google Maps
Instagram
Pandora Radio
Facebook
Facebook Messenger
YouTube
Google Search

Gmail

Snapchat
Google Maps
Google Play

Source: comScore MMX Multi-Platform, January 2017 comScore, Inc. Proprietary. 39


Clearing the path ahead
Mobile growth has been rapid, but in order to ensure continued expansion
and enable businesses and consumers to get maximum value from
these platforms, there is work to be done in several areas.

comScore, Inc. Proprietary. 40


The m-commerce gap (and whats causing it)
Mobile retailers have not fully capitalised on mobile share of consumer time, with a gap between share of minutes and dollar spend.
Four of the top five reasons cited by consumers involve basic usability difficulties

Desktop Mobile

69% 31%

20% 80%

49% gap

Reasons for 20.2% 19.6% 19.3% 19.6% 18.6%


not converting

Security Cannot see Navigating Cant browse multiple Too difficult


concerns product detail is difficult screens / compare to input details

Source: comScore MMX Multi-Platform and e-Commerce & m-Commerce Measurement , Q3 2016 comScore, Inc. Proprietary. 41
Summary

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What this means for

ADVERTISERS & AGENCIES Stay tuned

An audience increasingly present within app environments presents new In the coming months, comScore will
introduce advanced mobile measurement
considerations for traditional display campaigns, but the scale of app audiences
in India, Malaysia, France, Germany and
unlocks new opportunities for partnerships and creative solutions. Argentina as we continue to expand our
The share of demographics and time on mobile devices needs to be understood in mobile measurement footprint across
both a holistic and granular fashion in order to plan for, and leverage, the time spent the globe.
on smartphone and tablet devices in combination with other media. Stay tuned for more insights into how
Finally, brands may also begin to consider the growth of mobile only audiences and mobile devices are changing the way
contemplate how they fit / can be reached within cross-platform reach and frequency audiences consume content and connect.
objectives. Join our email list to receive our latest
reports and news:
https://www.comscore.com/Insights/com
munication-preference-center

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What this means for

PUBLISHERS Stay tuned

Social sharing on mobile is key to content distribution beyond owned channels (which In the coming months, comScore will
introduce advanced mobile measurement
are increasingly led by applications with a high barrier to download).
in India, Malaysia, France, Germany and
App monetisation is therefore important to revenue models, as advertising money Argentina as we continue to expand our
inevitably follows user time. Balancing native and non-native formats within these mobile measurement footprint across
environments will be an ongoing consideration for publishers. the globe.
Content publishers can also benefit from the increased share of video minutes Stay tuned for more insights into how
consumed on mobile devices, but must understand the types and durations of mobile devices are changing the way
content that perform well on smaller screens among consumers who may be on the audiences consume content and connect.
move or snacking on content. Join our email list to receive our latest
reports and news:
https://www.comscore.com/Insights/com
munication-preference-center

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What this means for

DIGITAL BUSINESSES Stay tuned

Mobile consumers embrace functionality, particularly via apps, and are willing In the coming months, comScore will
introduce advanced mobile measurement
to engage with even high-value categories such as banking and travel on
in India, Malaysia, France, Germany and
smaller screens. Argentina as we continue to expand our
The challenge remains bridging the gap between time spent on mobile devices, mobile measurement footprint across
and a willingness to complete transactions on them. Building trust and a seamless the globe.
user experience, with easy access to relevant information can lower this hurdle. Stay tuned for more insights into how
The growing trend for users to communicate via non-standard channels such as mobile devices are changing the way
instant messaging and video chat could unlock new opportunities for customer audiences consume content and connect.
service and care. Join our email list to receive our latest
reports and news:
https://www.comscore.com/Insights/com
munication-preference-center

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Where the data comes from

MMX VIDEO METRIX CUSTOM


MOBILE METRIX MOBILENS
MULTI-PLATFORM MULTI-PLATFORM SOLUTIONS
Complete, unduplicated Total mobile audience Unduplicated, digital video Market insights into Tailored mobile and
view of how digital behaviour on browsers measurement of video consumer behaviours, desktop insights to
audiences consume and apps across consumption across purchase intent and address unique
content across devices mobile devices devices interests on mobile business needs
devices

comScore, Inc. Proprietary. 46


Why comScore

MASSIVE MULTI-PLATFORM TRUSTED


SCALE AUDIENCES EXPERIENCE
Our scale through the comScore census First to measure unduplicated Over 17 years measuring
network, mobile and desktop panels audiences across desktops, audiences around the world.
enables measurement of real consumer smartphones and tablets.
behaviour.

comScore, Inc. Proprietary. 47


About

comScore, Inc. is a leading cross-platform measurement company that precisely measures but not limited to, expectations regarding the impact and benefits to comScore from Mobile
audiences, brands and consumer behaviour everywhere. comScore completed its merger Metrix and the broader MMX family of products, financial or otherwise. These statements
with Rentrak Corporation in January 2016, to create the new model for a dynamic, cross- involve risks and uncertainties that could cause our actual results to differ materially,
platform world. Built on precision and innovation, our unmatched data footprint combines including, but not limited to: the features and characteristics of the products, the rate of
proprietary digital, TV and movie intelligence with vast demographic details to quantify development of the digital marketing intelligence, Internet advertising and e-Commerce
consumers multiscreen behaviour at massive scale. This approach helps media markets; the growth of the Internet as a medium for commerce, content, advertising and
companies monetise their complete audiences and allows marketers to reach these communications; and the acceptance of new products and methodologies by the industry,
audiences more effectively. With more than 3,200 clients and global footprint in more than including existing and prospective clients. For additional discussion of risk factors, please
75 countries, comScore is delivering the future of measurement. Shares of comScore refer to comScores respective Quarterly Reports on Form 10-Q, Annual Reports on Form
stock are currently traded on the OTC Market (OTC:SCOR). For more information on 10-K and from time to time other filings with the Securities and Exchange Commission (the
comScore, please visit comscore.com. SEC), which are available on the SECs website (www.sec.gov).
comScore is the appointed online measurement standard in six markets across the globe,
including the UK, Spain, Finland, Indonesia, Malaysia and, recently Norway via the Stockholders of comScore are cautioned not to place undue reliance on forward-looking
acquisition of the Kantar TNS internet audience measurement systems. statements, which speak only as of the date such statements are made. comScore does
not undertake any obligation to publicly update any forward-looking statements to reflect
Cautionary Note Regarding Forward-Looking Statements events, circumstances or new information after the date of this press release, or to reflect
the occurrence of unanticipated events.
This release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including,

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comscore.com/mobile

To learn more contact us at


learnmore@comscore.com

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