Canada Digital Future in Focus 2014

© comScore, Inc. Proprietary.

The 2013 Digital Year in Review & What It Means for the Year Ahead

© comScore, Inc. Proprietary. 2

Executive Summary

comScore has been preparing for a future

where the digital media experience is

scattered across an increasing number of

different devices and platforms. This new

reality not only demands a holistic

understanding of digital consumer behavior,

but also the high-quality, objective audience

measurement to make sense of it all.

As engagement shifts from PC to mobile, the

future of digital marketing is clearly going

multi-platform. Consumption habits have

shown that Canadians are more platform-

agnostic in their digital media consumption as

they seamlessly switch devices throughout

the day to try and stay current on email,

news, social media, TV-viewing, etc.

Introduction #FutureinFocus

The following report examines how the

latest trends in PC online usage, display

advertising, online video, mobile usage that

are currently shaping the Canadian digital

marketplace and what it means for the year

ahead, as comScore helps bring the digital

future in focus.

FOR FURTHER INFORMATION,

PLEASE CONTACT:

Kevin Duong

[email protected]

Adam Lella

[email protected]

mailto:[email protected]




Table of Contents

PC Online Usage 4

Digital Advertising 10

Online Video 18

Mobile Usage 23

Multi-Platform 35

Summary & Implications 41

Appendix: Methodology 44

© comScore, Inc. Proprietary. © comScore, Inc. Proprietary.

PC Online Usage in Canada

© comScore, Inc. Proprietary. 5 *Ranking in table is based on Average Monthly Unique Visitors in Q4 2013 for selected geographies

Source: comScore, Inc., Media Metrix, WW, Home & Work, Persons: 15+, Monthly Q4 Avg. 2013

Canadian Internet users continue to be among the most highly

engaged Worldwide

Q4 2013*

Geography Average Monthly

Unique Visitors (000)

Average Monthly

Hours per Visitor

Average Monthly

Pages per Visitor

Average Monthly

Visits per Visitor

Worldwide 1,619,641 24.2 2,238 58

China 353,368 22.9 2,330 61

United States 196,498 36.2 3,162 82

Japan 73,656 19.2 1,898 49

Russia 66,888 32.6 2,590 65

Brazil 66,472 32.5 3,818 73

Germany 53,254 20.1 2,015 52

France 42,604 30.4 3,026 76

United Kingdom 39,272 36.0 3,269 81

Italy 30,105 25.4 2,473 56

Canada 25,181 34.6 3,001 88

Online Visitation and Engagement


21%

27%

32%

20%

Under 18 18-34 35-54 55+

Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, Monthly Q4 Avg. 2013

Canadian online demographics show half of the population is under age

35, and a third reside in households that earn at least $100,000 annually

18%

30%

18%

35%

Less than $40,000

$40,000 - $74,999

$75,000 - $99,999

$100,000 or more

Household Income (CAD)

Age

British

Columbia

14% Prairies

18% Ontario

39%

Quebec

22%

Atlantic

7%

Region

Gender

50% 50%

© comScore, Inc. Proprietary. 7 Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, Monthly Q4 Avg. 2013 vs. 2012

While Canadians are still heavy users of desktop internet, their

engagement has begun to shift from PC to mobile platforms

65,802

54,435

Total Minutes (MM)

Monthly Q4 Avg. 2012 Monthly Q4 Avg. 2013

99,110

78,505

Total Pages Viewed (MM)

Monthly Q4 Avg. 2012 Monthly Q4 Avg. 2013

-17% -21%

PC Internet Engagement


Mobile content consumption is gaining across categories in Canada

4,001

4,613

4,558

4,886

5,927

6,318

7,826

8,362

9,014

8,907

5,575

6,156

6,667

6,731

7,499

8,653

9,762

10,577

11,088

11,864

Sports

Entertainment News

Photo/Video Sharing

Bank Accounts

Local/World News

Maps/Directions

Instant Messaging Service

Search

Social Networking

Weather

Dec-2013

Dec-2012

Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013 vs Dec 2012

Top 10 Mobile Content Categories by Mobile Subscribers (000)


95%

57%

% Reach PC Population % Reach SmartphoneSubscribers

Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013

Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, December 2013

Mobile Audience

103.7

108.9

127.8

129.2

139.8

World-Wide

United States

United Kingdom

France

Canada

34%

86%

Performed a Search usingan Application

Performed a Search using aBrowser

Mobile Search Access Method

% Reach of Search

PC Searches per Searcher

Canadians exhibit above-average search behavior on PC, while also

engaging with other platforms for search activities

9.9 Million smartphone

subscribers conducted a

search on their phones


Display Advertising in Canada


Finance ranked as the top sector for display advertising in 2013,

followed by Retail and CPG

*Excluding Multi-Category Advertisers, Online Media

Source: comScore, Inc., Ad Metrix, CA, Home & Work, Persons 2+, Annual Aggregate 2013

9,028,910

11,573,616

11,968,710

13,396,418

15,993,697

21,338,367

25,850,799

30,297,383

40,194,541

43,664,755

Public Services

Health

Telecommunications

Media & Entertainment

Travel

Computers & Technology

Automotive

Consumer Goods

Retail

Finance

Top 10 Industry Categories in 2013 by Total Display Ad Impressions (000)

© comScore, Inc. Proprietary. 12 Source: comScore, Inc., Ad Metrix, CA, Home & Work, Persons: 2+, Monthly Q4 Avg. 2013

Half of Canadian display ads are non-standard sizes and 72% are

standard static types

50% 46%

4%

1%

Non-Standard Universal Ad Package

Other Ad Units Display Rising Star

72%

24%

3%

1%

Standard Static Flash(Generic)

Rich Media Display Other Types

Advertising Creative Summary by Size and Type

Ad

Creative

Sizes

Ad

Creative

Types


In 2013, more than 615 billion display ad impressions were delivered in

Canada during the year


Fiat Automobiles SpA

Clearly Contacts

Telus

TD Bank

Capital One Financial

Netflix

General Motors

Microsoft

Procter & Gamble

American Express

Top 10 Advertisers in 2013 by Total Display Ad Impressions (000)

© comScore, Inc. Proprietary. 14 *CPG = Consumer Goods (excluding Restaurants)


CPG display advertising led by Health & Beauty sector, followed by

Food & Grocery

Consumer Packaged Goods Advertising by Category

1%

1%

1%

2%

5%

6%

6%

9%

15%

35%

Pet Care

Frozen Foods

Dairy

Paper Products

Babycare

Beverages

Alcoholic Beverages

Household & Cleaning Supplies

Food & Grocery

Health & Beauty

Share within CPG Category

© comScore, Inc. Proprietary. 15 *Excluding Corporate Presence, Promotional Servers, Services


Social Media sites account for more than 1 out of every 3 online

display ads delivered in Canada

2%

3%

3%

4%

5%

5%

8%

12%

18%

36%

Business/Finance

Retail

Games

Lifestyles

Sports

Directories/Resources

News/Information

Portals

Entertainment

Social Media

Top 10 Display Advertising Publisher Categories* by Share of 2013 Impressions


comScore’s global two million person

panel is used in conjunction with census-

data to validate target audience delivery

=

Census Panel

A single ad tag is appended to every

creative to provide a complete view

of campaign delivery

comScore validated Campaign Essentials (vCE) helps advertisers

validate their digital campaigns across a number of variables

Audience

• Age

• Gender

• Household Income

• Household Size

• Behavioral Segments

In-View

Geography

Non-Brand Safe

Non-Human Traffic


vCE online advertising norms show that more than half of ads are not

delivered in-view, but geographic targeting is strong in Canada

Based on over 100 tagged vCE campaigns in Canada in 2013

*Non-Brand Safe refers to impressions that were alerted based on client defined and/or comScore defined

non-brand safety

In-view In-target

In-geo

44.4% 41.1%

99.0% 24.7%

Non-Brand Safe*

% of Online Display

Ad Impressions


Online Video in Canada


Canadians are more likely to watch online video and spend more time

doing so than their American counterparts

Source: comScore, Inc., Video Metrix, CA & US, Home & Work, Persons: 2+, Monthly Q4 2013 Average

1,769

1,237

Canada United States

Minutes per Viewer

74%

63%

Canada United States

% Reach Total Population


Canadians are consuming video content across categories, with

viewer penetration over 30% in General News, TV and Retail

Source: comScore, Inc., Video Metrix, CA, Home & Work, Persons: 2+, Q4 2013 Average

Unique Viewer Penetration in Canada

9.4%

9.6%

16.7%

22.0%

22.9%

29.0%

29.3%

32.4%

38.4%

38.5%

Health

Family & Parenting

Travel

Sports

Entertainment - Movies

Games

Entertainment - Music

Retail

TV

General News


Canadian are watching a rapidly increasing amount of TV/Video on

their mobile devices

Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2012 – Dec 2013

Frequency of Watching TV/Video by Mobile Subscribers (000)

5,271

2,979

1,577

715

7,029

3,595

2,363

1,071

Ever in month Once to three times a month At least once a week Almost every day

Dec-2012 Dec-2013

+33% +21% +50% +50%


Canadians are watching significantly more web-based video, including

live/on-demand TV, than a year ago

Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2012 – Dec 2013

Type of Videos Watched by Mobile Subscribers (000)

1,646

1,865

5,085

2,322

2,490

6,815

Watched Paid TV/Video

Watched TV (Live/On-Demand)

Watched Web-Based Videos

Dec-2013 Dec-2012

+41%

+34%

+34%


Mobile Usage in Canada


Mobile subscribers grew by 5% in Canada year over year to more than

23 million

Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013 vs. Dec 2012

22,076 23,233

Dec-2012 Dec-2013

Mobile Subscribers (000) in Canada

+5%


Smartphones now reach 3 out of every 4 mobile users in Canada, an

increase of 13 percentage points in the past year


62%

75%

38%

25%

Dec-2012 Dec-2013

Smartphone Feature Phone

Smartphone Market Penetration by Percent of Mobile Subscribers

+13 pts.


Smartphone ownership in Canada skews significantly toward younger

and higher income than feature phone ownership


8%

37% 37%

19%

4%

12%

32%

52%

13-17 18-34 35-54 55+

British

Columbia

14%

14%

Prairies

19%

18% Ontario

41%

35%

Quebec

19%

26%

Atlantic

7%

7%

Household Income (CAD)

Region

Age Gender

50%

45%

50%

55%

26%

20% 17%

37% 39%

22% 17%

22%

Less than$50,000

$50,000 to$74,999

$75,000 to$99,999

$100,000 ormore

Smartphone Feature Phone


Google’s Android platform continues to capture share in the

Canadian smartphone market, as it increased by 4 pts. year over year


40%

35%

20%

2%

2%

44%

37% 15%

2% 1% Dec 2012 Dec 2013

Platform Market Penetration by Percent of Mobile Subscribers


Canadian smartphone subscribers with 4G connectivity grew by 274%

year over year

13,418

1,563

17,243

5,850

3G Data Network 4G Data Network

Dec-2012 Dec-2013


Mobile Connectivity by Smartphone Subscribers (000)

+29%

+274%


Mobile display sizes on smartphones are getting bigger as we see

substantial growth year over year for 4.0” and greater

0

1,000

2,000

3,000

4,000

5,000

6,000

Dec-2012 Dec-2013

*Measured diagonally


Mobile Display Size* Among Smartphone Owners (000)

+9%

-27%

-49% -8%

-14%

-1%

+95%

+112%

+664% +323%


Canadian smartphone subscribers accessing social networking on

their mobile device continues to grow


Frequency of Accessing Social Networking by Smartphone Subscribers (000)

8,338

1,374 2,102

4,862

10,443

1,704

2,750

5,989

Ever in month Once to three times a month At least once a week Almost every day

Dec-2012 Dec-2013

+25% +24% +31% +23%


Canadians are using smartphones for a variety of shopping behaviors,

including making mobile commerce transactions

4% 4% 5% 5%

6% 6%

10% 17%

Researched Product Features

Compared Product Prices

Used Deal-a-day/Group Shopping

Checked Product Availability

Purchased Goods/Services

Found Coupons/Deals

Found Store Location

Made Shopping Lists


Retail Activities on Smartphone via Application

5% 6%

11% 12%

17% 18% 19%

26%

Made Shopping Lists

Used Deal-a-day/Group Shopping

Purchased Goods/Services

Found Coupons/Deals

Checked Product Availability

Compared Product Prices

Researched Product Features

Found Store Location

Retail Activities on Smartphone via Browser

% Smartphone Subscribers

© comScore, Inc. Proprietary. 32 Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013

Smartphone subscribers are more likely to own a tablet compared to

feature phone subscribers

23%

36%

Tablet Ownership

Feature Phone Subscribers Smartphone Subscribers

Tablet Ownership by % Subscribers


55%

37%

10%

2% 1%

Apple OS Android OS BlackBerry OS Microsoft OS HP OS

Canadian smartphone subscribers have a preference for owning the

iPad vs. other tablets

Source: comScore, Inc., TabLens Lite, CA, Persons: 13+, Dec 2013

Platform Market Penetration by Percent of Smartphone Subscribers who Own a Tablet


Second screen behaviour provides more engagement opportunities

via the mobile channel for TV advertisers


Source: comScore, Inc., TabLens Lite, CA, Persons: 13+, Dec 2013

35.5%

used their tablet while

watching TV

30.8% used their smartphone

while watching TV

Smartphone + TV Tablet + TV

30.8% of Canadian smartphone subscribers

used their phone while watching TV

35.5% of Canadian smartphone subscribers

who own tablets used their tablet while

watching TV


Multi-Platform:

The Future of Digital


New platforms are being adopted at increasingly higher rates

Tablet PC/Mac Smartphone

The digital experience is now scattered across a number of different devices and

platforms, all of which demand high-quality, objective audience measurement.


Device usage varies throughout the day with peak activity occurring at

different times

* Single-user Household Panel

CONTENT is

consumed

across multiple

DEVICES

by the same

PERSON

Smartphones rule our mornings

Tablets

PCs

rule our evenings

rule our days

One Day


Desktop 45%

Smartphone 43%

Tablet 12%

In the United States, more than half of all digital time spent now

comes from mobile devices

Source: comScore, Inc., Media Metrix Multi-Platform, US, Jan 2014

Share of Time Spent on Digital Media


U.S. time spent consuming digital content has increased

dramatically in past three years due to mobile platforms

401 429

131

442 11

124

Dec-2010 Dec-2013

Desktop Smartphone Tablet

Source: comScore, Inc., Media Metrix Multi-Platform, US, Dec 2013 vs. Dec 2010

Total U.S. Internet Usage in Minutes (Billions) by Platform:


Media Metrix Multi-Platform coming to Canada in Q3 2014!

Desktop Audience

Video Audience

Mobile Audience

Media Metrix® Multi-Platform

Introducing…


Summary & Implications


Canadians continue to be among the heaviest users of digital media

• Canada is #3 in desktop internet usage at 34.6 hours per month

• Canadians are the heaviest online searchers at 140 queries per month

• 74% of all Canadians watch online video; TV/video viewing on mobile also seeing huge gains

• 3 out of 4 Canadians own smartphones, well above the rates in U.S. and other developed markets

The digital ad sector in Canada shows its strength as its proves performance

• Canada saw 615 billion display ad impressions in 2013, led by Financial and Retail advertisers

• Social media publishers account for more than 1/3rd of all display ad impressions

• Campaign validation efforts are improving the ability to measure performance and optimize

campaigns

Mobile is rapidly changing the Canadian digital media landscape

• Increase in smartphone penetration and 4G connectivity is driving increased usage of mobile

content, such as social media and retail

• Canadians are using their phones for shopping behavior and m-commerce buying

Summary of Key Findings


The rapid shift to mobile means the future of marketing is multi-platform

• Usage is shifting to mobile, but dollars are slower to follow. It will be important to both prove the

value of mobile and adopt a more integrated view of media to navigate this paradigm shift.

• How well businesses integrate mobile audience metrics into their holistic view of digital media

will determine their ability to monetize and/or market efficiently.

Social Media will have a disproportionate influence on how the digital media

industry evolves

• Facebook, Twitter and Linkedin are paving the way for this sector and showing how media can

generate ad dollars through mobile and native advertising

• The Visual Web is also emerging with properties like Pinterest, Tumblr, Instagram and Snapchat

showing how social is becoming a more visual medium, making it attractive to brands

The Canadian digital media sector is poised for further expansion as

advertising measurement and mobile monetization improve

• vCE and other forms of campaign validation are providing the metrics brands need to understand

campaign performance and put digital on similar footing as TV

• Better metrics means better ability to optimize performance, which will continue to deliver

confidence in brands considering investing more in digital

Implications for the Future


Methodology


Methodology

This report utilizes data from the comScore suite of products, including

comScore Media Metrix®, comScore Ad Metrix®, comScore Video Metrix®

and comScore MobiLens™.

comScore Media Metrix

The comScore Media Metrix suite of syndicated products sets the standard

for digital audience measurement and media planning. Powered by Unified

Digital Measurement™, the revolutionary measurement approach that

bridges panel-based and website server-based metrics to account for 100

percent of a site’s audience, Media Metrix delivers the most accurate and

comprehensive suite of audience metrics, providing valuable demographic

measures, such as age, gender, household income and household size.

Media Metrix reports on more than 70,000 entities, with audience

measurement for 43 individual countries and 6 global regions, as well as

worldwide totals.

The comScore Media Metrix product suite includes individual products

utilized within this report including comScore Ad Metrix and comScore

Video Metrix.

http://www.comscore.com/Products/Audience_Analytics/MMX

http://www.comscore.com/Products/Audience_Analytics/Ad_Metrix

http://www.comscore.com/Products/Audience_Analytics/Video_Metrix

http://www.comscore.com/Products/Audience_Analytics/Video_Metrix

http://www.comscore.com/Products/Audience_Analytics/MMX


Methodology

comScore MobiLens

comScore MobiLens provides market-wide insight into mobile digital media

consumption, brand-level audience metrics, and details of device ownership

and technology penetration. Using proprietary data collection methods, we

survey nationally representative samples of mobile subscribers age 13+ in

the U.S., UK, France, Germany, Spain, Italy, Canada, and Japan. The

MobiLens sample is substantial enough to provide projected data for sub-

segments as small as 1 percent of mobile subscribers. For 2012, the

estimated monthly survey completes utilized for this report are 5,500 mobile

phone owners in Canada.

For more information, please visit:

http://www.comscore.com/Products/Audience_Analytics/MobiLens

http://www.comscore.com/Products/Audience_Analytics/MobiLens


comScore, Inc. (NASDAQ: SCOR) is a global leader in digital measurement and analytics, delivering insights on web,

mobile and TV consumer behaviour that enable clients to maximise the value of their digital investments.

A preferred source of digital audience measurement, comScore offers a variety of on-demand software and custom

services within its four analytics pillars: Audience Analytics, Advertising Analytics, Digital Business Analytics and

Mobile Operator Analytics. By leveraging a world-class technology infrastructure, the comScore Census Network™

(CCN) captures trillions of digital interactions a month to power big data analytics on a global scale for its more than

2,000 clients, which include leading companies such as AOL, Baidu, BBC, Best Buy, Carat, Deutsche Bank, ESPN,

France Telecom, Financial Times, Fox, LinkedIn, Microsoft, MediaCorp, Nestle, Starcom, Terra Networks, Universal

McCann, Verizon, ViaMichelin and Yahoo!.

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Canada Digital

Future in Focus 2014

#FutureinFocus

The 2013 Digital Year in Review & What It Means for the Year Ahead

@comScore

www.comscore.com

www.facebook.com/comscoreinc Email: [email protected]

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