Adtech

State of the Global Internet
With Lessons Learned from Measurement of Online Advertising
Gian Fulgoni
Executive Chairman and Co-Founder, comScore Inc
Discussion Topics
 A Brief Introduction to comScore

 Key Trends in Global Internet Behavior
 Lessons Learned About Online Advertising:
– The Click
– The Cookie
– Ad Visibility
– Facebook
© comScore, Inc. Proprietary. 2

comScore is a Global Leader in Measuring the Digital World
NASDAQ SCOR
Clients 1,900+ worldwide
Employees 1,000+
Headquarters Reston, VA
170+ countries under measurement;
Global Coverage
43 markets reported
Local Presence 32+ locations in 23 countries
© comScore, Inc. Proprietary. 3 V0411

comScore’s UDM Approach Leverages the Best of Panel and Server Data
2 Million Person Panel PERSON-Centric Panel with

360°View of Person Behavior SITE-Census Measurement
Web Visiting
& Search
Online Behavior Online
& Offline Advertising
Buying Exposure PANEL CENSUS
Advertising
Transactions Effectiveness
Media & Video Demographics,

Consumption Lifestyles
PANEL
& Attitudes
Unified Digital Measurement™ (UDM)
Mobile Internet
Usage & Behavior Patent-Pending Methodology
1 Million Domains Participating
Adopted by 80% of Top 100 Global Media Properties
And, a behavioral cross-platform

4
© comScore, Inc. measurement capability
Proprietary. V0411
The U.S. Is No Longer the Center of the Online Universe
U.S. Internet Population vs. Rest of the World Distribution of Worldwide Internet Audience
Middle
East -
Rest of the
World 34% Latin Africa,
America, 8.8%
9.0%
Asia
87% North Pacific,
America, 41.3%
U.S. 14.6%
66% Asia Pacific
Europe,
13% 26.4%
1996 2011
 In 1996, 2/3 of world’s Internet population was in the US, yet today Asia Pacific is the largest region
with over 40% of online population.
 Many emerging regions likely to bypass old modes, skipping dial-up to go straight to broadband,
making multimedia, video, and collaborative content immediately accessible.
 Early adoption of mobile web in addition to PC web will likely be popular in many of these high-
growth areas.
© comScore, Inc. Proprietary. 5 Source: comScore Media Metrix, Visitors Age 15+ Home/Work Location, Dec-2011
Asia Continues Significant Growth in Size of Internet Audience
 Growth expected to continue as home

Worldwide Online Population
broadband penetration increases in Asia
(Millions)
and Latin America
+9%
 Growth in developing regions likely to 1,444
also continue as people move from 1,323
shared-access to home & work use
 Growth slow in North America
2010 Dec 2011 Dec
 European growth mostly driven by
Russia
+11% Dec-11 Dec-10

595 534 +6%
381 361 +3% +15% +14%
210 203
129 112 126 111
Asia Pac Europe North America Latin America Middle east

Africa
© comScore, Inc. Proprietary. 6 Internet Audience 15+ accessing Internet from Home or Work
Source: comScore Media Metrix, Dec 2010 and Dec 2011
Shared-Access Environments Make up Significant Portion of Total
Population in Some Regions
 Shared-access population in India is almost as large as the Internet

population accessing from work and home
331
Unique Visitors (MM)
15+ H/W Other
105
47 43 52
32 25 29
11 12
China India Brazil Mexico Indonesia
© comScore, Inc. Proprietary. 7 Source: comScore Media Metrix, Dec 2011

Size of Online Audience in BRIC countries, 15+ Home & Work
 Significant growth in BRIC countries in the past year, particularly in China,

where 13% growth represents 40 million new web users from work & home
 Growth similarly high in many Latin American and Asian markets
Online Population Sizes (MM)

BRIC
+13% Dec-10 Dec-11
331
291
+12% +15% +15%
42 47 45 52 46 53
China India Brazil Russia
Source: comScore Media Metrix, Dec 2010 to Dec 2011
India Internet Users are Much Younger than Global Average
 Internet audience in India skews dramatically younger: 75% of web

audience is under 35, compared to 52% of the world and 55% of the region
Composition of Internet Audience 15+
Worldwide 26 26 22 14 12
Asia Pacific 28 27 23 12 9
75%
India 33 41 17 6 3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
15-24 25-34 35-44 45-54 54+
Source: comScore Media Metrix, Dec 2011
India’s Usage Relatively Low Compared to Some Other Countries
 Web users in China and India are lighter users than Russians and
Brazilians
 Expect usage rates to increase as home/work Internet penetration
increases and broadband becomes more readily available
Total Hours Online per Visitor

WW AVG: 24.4
Russia 25.1
Brazil 26.7
Indonesia 16.4
Mexico 21.1
China 14.1
India 13.0
Young People Drive Internet Consumption in India Today, Suggesting
Future Overall Usage Will Rise Dramatically
 25-34 year olds are India’s heaviest Internet users
Time Online by Age

Total time in Billion Minutes
16 14.9
14
12.4
12
10
8
6.1
6
4
2
2 0.87
0
15-24 25-34 35-44 45-54 55+
Social Networking Has Exploded Globally
Millions of Monthly Users

I n O c t 2 0 11 Around the world,
Social Networking
1,179.4 now reaches
billion
1.2
Total Unique Visitors (MM)
916.8
users
444.9 82%
of the world’s
online population
Email Instant Social

Messengers Networking
95%
Reach among
India
Source: comScore online
Media users
Metrix, October 2011
The Rise of the Global Social Networking Audience
Worldwide Total Unique Visitors (MM)

1,600
1,400
+88%
Total Internet
1,200
1,000
+174%
Social
800 Networking
600
400
200
0
2007 2008 2009 2010 2011
Source: comScore Media Metrix, March 2007 - October 2011

Nearly in 1 5
minutes online
is spent on social networks today.
2008 2009 2010 2011
35
Social Networking
30 Search/Navigation
Retail
25
Communications (Email/IM)
Other Content
Time Spent on Key Categories Online

Worldwide Hours per Month (Billions)
Source: comScore Media Metrix, March 2007 - October 2011

3 Facebook’s worldwide site rank
Facebook’s global
55% penetration
2 Facebook’s India site rank
Source: comScore Media Metrix, October 2011

3 in 4 minutes on social networking
sites are spent on Facebook
1
in 7 minutes spent online
are spent on Facebook
Source: comScore Media Metrix, October 2011

Since 2010, Facebook has taken the lead in 6 new markets
across Asia, Latin America, and Europe
Jan-2010 Apr-2010 Jul-2010 Oct-2010 Jan-2011 Apr-2011 Jul-2011 Oct-2011
Facebook 788MM
Facebook overtakes
overtakes StudiVZ in
Windows Germany
Live in
Portugal
Facebook
Facebook overtakes Hyves
overtakes Yahoo! in the Holland
Facebook Wretch in Taiwan
471.4
overtakes
Facebook
Orkut in India
overtakes
Windows Live
in Mexico
Facebook’s Ascent in Recent Years
Total Unique Visitors (MM)
Source: comScore Media Metrix, January 2010 - October 2011

Social Networking is Not Just Facebook
@
linkedin reaches 1 in 8 online
users in India and 1 in 14
worldwide
@
Twitter reaches 1 in 12 online @
users in India and 1 in 10
users worldwide
Source: comScore Media Metrix, Worldwide, October 2011

saw the largest decline in
engagement with web-based
15-24 year olds email and instant messaging
34%
25%
21%
15% 12%
1%
-4% -3%
-8%
-22%
-32% -34%
-37% -36%
-42%
Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+
Instant Messengers Email Social Networking
Change in Average Time Spent with Content Category by Age Segment
Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010
…but also saw the highest
increase in engagement with
social networking.
34%
25%
21%
15% 12%
1%
-4% -3%
-8%
-22%
-32% -34%
-37% -36%
-42%
Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55+
Instant Messengers Email Social Networking
Change in Average Time Spent with Content Category by Age Segment
Source: comScore Media Metrix, Worldwide, October 2011 vs. July 2010
Online Advertising: Lessons Learned

Some things we’ve learned about online advertising
• The click is at best an incomplete and at worst a

misleading metric
• Display advertising is an efficient and effective way to

build sales both online and offline
• Accurate delivery of media plan is critical
• Facebook is a very efficient way to amplify reach and

persuasiveness

Clickers represent a small and declining segment of Internet users
•There were 50% fewer clickers in 2009 (16%) than in July 2007 (32%)
• 8% of all Internet users account for 85% of all clicks
• Optimizing against clicks means ignoring 84 percent of Internet users
July 2007 March 2009
Clickers
Clickers
16%
32%
Non- Non-Cli
Clickers
68% cker84
%
Source: comScore, Inc. Custom Analysis, Total US Online Population, persons, July
© comScore, Inc. Proprietary. 23 2007 and March 2009 data periods
Global Click Rates on Individual Campaigns are Pitifully Low
Worldwide Click-Through Rates*
Austria 0.05% France 0.11%
Finland 0.05% Italy 0.11%
UK 0.07% Germany 0.11%
Canada 0.08% Belgium 0.11%
Australia 0.08% Denmark 0.11%
U.S. 0.09% New Zealand 0.13%
Spain 0.09% Netherlands 0.15%
Switzerland 0.09% Greece 0.17%
Singapore 0.09% India 0.19%
Ireland 0.10% Hong Kong 0.22%
Luxemburg 0.10% China 0.64%
*Click-through rates across static image, flash and rich media formats
Source: DoubleClick Benchmarks data representing a cross-section of countries, Jan to Dec, 2010
How comScore measures advertising ROI:
Link ad exposure to behavior
Website
Visiting &
Search
Video
Name
&
Address
Online
Transactions
Advertising
Exposure
© comScore, Inc. Proprietary. 25 Source: comScore 2011

Journal Of Advertising Research:
comScore’s “Whither the Click?”
 Journal of Advertising Research, June 2009

“What We Know About Advertising: 21 Watertight Laws for
Intelligent Advertising Decisions”
Prof. Byron Sharp, Ehrenberg Bass Institute, University of South Australia
Prof. Jerry Wind, The Wharton School
 comScore’s “Whither the Click?”

– 200+ comScore studies conducted in the U.S. to assess
behavioral impact of paid search and online display ads.
Even with Minimal Clicks,

Display Advertising can Lift:
• Site visitation
• Trademark search queries
• Online and offline sales

26
Despite click rates of only 0.1%, comScore research has shown that
display ads can lift retailer sales – both online and offline
Dollar Sales Lift Among Households

Exposed to Online Advertising
Conclusions
% Lift: 17%  Exposure to display ads

doesn’t just impact online
$11,550 sales – it lifts in-store
$9,905 sales as well
 The absolute dollar lift

% Lift: 27% in offline sales is 5x higher
than the lift in e-commerce
sales
$994 $1,263
 The click is misleading
Online Offline as a measure of campaign
effectiveness
Unexposed Exposed
Source: “Whither the Click?” 139 comScore studies in the

June 2009 Journal of Advertising Research
Branding’s digital challenge
• Branding advertisers on TV are accustomed to audience guarantees

and expect the same in digital
• Accuracy of cookie-based digital plan delivery is problematic:
Cookie Deletion Cookies Are Not People
Ads Are Not Always Visible

Source: comScore 2011
Because of multiple users on a computer, cookies can’t accurately
identify who is using a computer at any given point in time
U.S. Users per Computer

2011
Over 64% of home

users share a
computer with
other users
3+ Users 1 User
32% 36%
2 Users
32%

Cookie deletion is a global reality … and a global challenge
Accurately counting reach with cookies is not possible, yet is currently the method
used in most ad servers and analytics systems
Ad Server Cookies Web Site Cookies
Average # of Average # of
Percent of Percent of
cookies per cookies per
Country computers computers
computer for computer for
deleting deleting
same campaign same web site
Australia 37% 5.7 28% 2.7
Brazil 40% 6.6 33% 2.5
U.K. 35% 5.9 27% 2.7
U.S. 35% 5.4 29% 3.5

Cookie-based demo targeting limits a campaign’s ability to selectively
reach a targeted audience
Target for this health & well being

product was females age 35-54
Male 40% of exposed consumers outside of planned gender target

40%
% Composition of Exposed Audience
20.6% 15-24
22.4% 25-34
Female
60% 25.3% 35-44
Only 43% of females
exposed to the
campaign met the
17.3%
45-54 targeted age group
14.4% 55+
Only 25% of all exposed consumers met planned targeting criteria

Skewed ad server delivery causes wasted GRPs with overly saturated
consumers
Distribution of Exposed People by CPG Campaign

Frequency of Exposures
• 4 Weeks
64% • 43 GRPs
• Reached ~ 8MM People
• Average Frequency = 4.5
48%
65% of
Exposures
27 Exposures
per Person!
16% 22%
13%
8%
5%
3% 3% 2% 2% 1%
1 2 3 4 5 6 7 8 9 10+
Exposures per Person

Making Measurement Make Sense (3MS) Mission:
 Reduce costs of doing business due to

complexity of digital advertising ecosystem
 ‘Single Tag’ solution to reduce complexity
 Improve reporting of ad exposure
 Bolster confidence that ads delivered are
actually visible

Billions of impressions are being delivered – how can retailers ensure
the right consumers are seeing the messaging?

vCE Charter Study
18 campaigns
2 billion impressions
400k sites
Allstate

Charter Findings
In-view ad rates ranged from

55% to 93% across 18 campaigns
69%
AVERAGE
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

What’s new in social measurement?
Using the comScore panel and proprietary technology,

comScore is the first research company to provide
continuous measurement of the impact of earned media
among Fans and their Friends on Facebook.

Facebook is the largest publisher
of online display ad impressions,
Publisher Share of Display Ad Impressions
Source: comScore Ad Metrix, U.S., Q3 2011
SOCIAL ESSENTIALS
comScore now measures most major engagements on Facebook
Ad Exposed
Friends Sponsored
of Fans Stories
Fans

SOCIAL ESSENTIALS
What we know to be true…
Facebook Fans are NOT regular visitors to Facebook Fan

Pages. Marketers need to reach out Fans in their News Feed
with relevant content!
Monthly Unique Visitors

Brand No. of Fans* To Facebook Fan
Pages**
Coca Cola 24.0 Million 39,000
Oreos 17.5 Million 137,000
Best Buy 2.7 Million 175,000
*Source: Facebook
** Source: comScore

Friends of Fans represent a way for brands to efficiently amplify their
reach substantially beyond Fans
FANS Earned
Exposed Fans Impressions Reach Frequency GRP
Southwest 661K 2,457K 0.3% 3.7 1.1
Bing 1,070K 3,353K 0.5% 3.1 1.6
Starbucks 4,841K 13,664K 2.2% 2.8 6.3
FRIENDS Earned
Exposed Friends Impressions Reach Frequency GRP
Southwest 853K 1,460K 0.4% 1.7 0.7
Bing 2,035K 3,183K 0.9% 1.6 1.5
Starbucks 8,846K 18,073K 4.1% 2.0 8.4
Friends expand
Fans Reach by
© comScore, Inc. Proprietary. 41 133% to 186%
Fans and Friends of Fans exposed to earned brand impressions on Facebook
exhibit higher brand engagement, e.g. site visitation, than the average
Internet user
Why do friends of fans have a higher orientation toward the brand?

1. Birds of a feather flock together
2. Trusted persuasion
Friends
Friends
Friends
Baseline
Internet User
© comScore, Inc. Proprietary. 42 Source: comScore Social Esessentials May2011

Conclusions
 The digital world is expanding rapidly, driven by new users in some

regions and / or by growth in time spent in others
 Younger consumers in India are leading the revolution, with higher
engagement coming from 15-34 age segments
 Social Networking is a key driver of PC and Mobile activity,
cannibalizing many other activities
 Online advertising is effective, both as a direct response and
branding strategy
 For online advertising to get its fair share of advertising dollars
– Ad effectiveness needs to be measured “beyond the click”
– Accurate measurement of the delivery against media plan is critical
– Facebook represents an efficient way to amplify reach and trusted
persuasion
Thank you!
Gian Fulgoni
Executive Chairman and Co-Founder, comScore Inc.

Adtech

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State of the Global Internet

With Lessons Learned from Measurement of Online Advertising

 A Brief Introduction to comScore

© comScore, Inc. Proprietary. 2

© comScore, Inc. Proprietary. 3 V0411

2 Million Person Panel PERSON-Centric Panel with

Media & Video Demographics,

And, a behavioral cross-platform

 Growth expected to continue as home

+11% Dec-11 Dec-10

Asia Pac Europe North America Latin America Middle east

 Shared-access population in India is almost as large as the Internet

15+ H/W Other

China India Brazil Mexico Indonesia

© comScore, Inc. Proprietary. 7 Source: comScore Media Metrix, Dec 2011

 Significant growth in BRIC countries in the past year, particularly in China,

Online Population Sizes (MM)

+12% +15% +15%

China India Brazil Russia

 Internet audience in India skews dramatically younger: 75% of web

Composition of Internet Audience 15+

15-24 25-34 35-44 45-54 54+

Total Hours Online per Visitor

 25-34 year olds are India’s heaviest Internet users

Time Online by Age

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

Millions of Monthly Users

Email Instant Social

Worldwide Total Unique Visitors (MM)

Source: comScore Media Metrix, March 2007 - October 2011

Time Spent on Key Categories Online

Source: comScore Media Metrix, March 2007 - October 2011

2 Facebook’s India site rank

Source: comScore Media Metrix, October 2011

Source: comScore Media Metrix, October 2011

Jan-2010 Apr-2010 Jul-2010 Oct-2010 Jan-2011 Apr-2011 Jul-2011 Oct-2011

Source: comScore Media Metrix, January 2010 - October 2011

Source: comScore Media Metrix, Worldwide, October 2011

Instant Messengers Email Social Networking

Change in Average Time Spent with Content Category by Age Segment

Instant Messengers Email Social Networking

Change in Average Time Spent with Content Category by Age Segment

© comScore, Inc. Proprietary. 21

• The click is at best an incomplete and at worst a

• Display advertising is an efficient and effective way to

• Accurate delivery of media plan is critical

• Facebook is a very efficient way to amplify reach and

© comScore, Inc. Proprietary. 22

July 2007 March 2009

Worldwide Click-Through Rates*

Austria 0.05% France 0.11%

Finland 0.05% Italy 0.11%

UK 0.07% Germany 0.11%

Canada 0.08% Belgium 0.11%

Australia 0.08% Denmark 0.11%

U.S. 0.09% New Zealand 0.13%

Spain 0.09% Netherlands 0.15%

Switzerland 0.09% Greece 0.17%

Singapore 0.09% India 0.19%

Ireland 0.10% Hong Kong 0.22%

Luxemburg 0.10% China 0.64%

© comScore, Inc. Proprietary. 25 Source: comScore 2011