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September 2011
State of the Internet
Bryan Goski
Director, comScore Marketing Solutions
2 © comScore, Inc. Proprietary and Confidential.
Agenda
Worldwide Context
US Vital Signs
State of the Internet
– Video
– Search
– Mobile
– eCommerce
Monetization
3 © comScore, Inc. Proprietary and Confidential.
In 1996, 2/3 of the world’s Internet population was in the US, yet today Asia Pacific is the largest
region with over 41% of the population.
Many emerging regions are 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.
14.8%
8.7%
8.7%
41.2%
26.6%
July 2011
Middle East
- Africa
Europe
North
America
Asia Pacific
Latin
America
Distribution of Worldwide Internet Audience
66%
13%
34%
87%
1996 2011
US Internet Population vs. Rest of the World
Rest of the
World
US
The US Is No Longer the Center of the Online Universe
Source: comScore World Metrix, July 2011
4 © comScore, Inc. Proprietary and Confidential.
Internet Users Age 15+ (MM)
11% Worldwide Growth Fueled by Country Growth
322.0
183.4
73.5
50.3
49.2
44.6
43.6
42.4
37.1
30.6
23.5
23.4
23.0
21.6
20.0
China
United States
Japan
Germany
Russian Federation
India
Brazil
France
United Kingdom
South Korea
Italy
Canada
Turkey
Spain
Mexico
While US user growth was just 0.8%
over the past year, Mexico, China,
Brazil, and Russian Federation have
experienced impressive growth rates
of 22%, 19%, 18%, and 14%
respectively.
Source: comScore World Metrix, July 2011
5 © comScore, Inc. Proprietary and Confidential.
The Majority of Top Properties’ Audiences are Coming
from Outside the US
Google Sites
Microsoft Sites
Facebook.com
Yahoo! Sites
Wikimedia Foundation Sites
Amazon Sites
Apple Inc.
VEVO
Tencent Inc.
AOL, Inc.
238
228 56%
257
241 74%
99%
73%
674
394
289
82%
68%
1032
899
736
83%
79%
76%
US Audience Non-US Audience Total Worldwide
Unique Visitors (MM)
Source: comScore World Metrix, July 2011
The top 10 Global Properties
attract a majority of Unique
Visitors from outside the US;
Google Sites and Microsoft Sites
attain 84% and 83% of their
audience from countries outside
the US, respectively.
Tencent, a Chinese portal, has
managed to enter the top 10 most
trafficked sites, despite receiving
only 1% of its traffic from the US.
84%
6 © comScore, Inc. Proprietary and Confidential.
Agenda
Worldwide Context
US Vital Signs
State of the Internet
– Video
– Search
– Mobile
– eCommerce
Monetization
7 © comScore, Inc. Proprietary and Confidential.
A Snapshot of US Internet Activity
In July 2011:
215.1 million Americans used the Internet.
– Average user was online 25.3 days in the month, for a total of 34.8 hours, and
viewed 3,029 pages
86.0% of Internet visitors viewed an online video in the US, for an average
of 18.2 hours each.
93% of Internet visitors conducted at least one search.
– Average searcher conducted 124 searches
Total online spending in July 2011 at US sites was $21.0 billion, up 13%
since July 2010. Travel accounted for $9.2 billion, or 44% of total online
spending in July.
Source: comScore US Media Metrix, July 2011
comScore US qSearch, July 2011
US e-Commerce Reports, July 2011
8 © comScore, Inc. Proprietary and Confidential.
Is the US Internet Really Still Growing?
Total US Internet Users
0
50,000
100,000
150,000
200,000
250,000
Total Unique Visitors (000) Average Daily Visitors (000)
+1%
+1% Yes, the US
Internet is still
growing, albeit not
as quickly as it
had been.
The Average
Minutes per Visitor
grew 3% over the
past year.
The average
internet user made
1 more visit to the
internet in July
2011 than in July
2010.
Total US Internet Engagement
0
500
1,000
1,500
2,000
Average Minutes per Visitor Average Visits per Visitor
+1%
+3%
Source: comScore US Media Metrix Panel Only Data, July 2011
9 © comScore, Inc. Proprietary and Confidential.
Which Categories are Driving Web Growth?
Couponing sites
saw terrific
growth year
over year at
28%.
Retail-Movies
continued to
see impressive
growth, growing
17% between
July 2010 and
July 2011.
Source: comScore US Media Metrix Panel Only Data July 2011
0
10,000
20,000
30,000
40,000
50,000
60,000
UV
s (
000)
July 2010 UV's July 2011 UV's
+28%
+17%
+16%
+14%
+13%
+13%
+10%
+12%
+8%
10 © comScore, Inc. Proprietary and Confidential.
What Properties are Driving Web Growth?
Conversational
Media sites
Tumblr and
LinkedIn saw
large growth
with 223%, and
52% increases
between July
2010 and July
2011.
VEVO had 18.6
million more
visitors in July
2011 than in
July 2010, 38%
year over year
growth.
Source: comScore US Media Metrix Panel Only Data, July 2011
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
75,000
UV
s (
000)
Jul-2010 Jul-2011
+223%
+104% +71%
+52%
+49%
+48% +46%
+43%
+38%
+38%
11 © comScore, Inc. Proprietary and Confidential.
Sources for Fastest Growing Sites
Source: comScore US Media Metrix, July 2011
2,421
3,766
6,301
6,906
Yahoo!
YouTube
UVs (000)
Tumblr.com Sources
857
1,637
3,204
4,422
Bing
Yahoo!
UVs (000)
Liberty Media Holding Corporation Sources
1,788
2,060
3,795
4,352
YouTube
Yahoo!
UVs (000)
Skype Sources
1,206
2,829
4,103
6,745
Bing
Yahoo!
UVs (000)
LinkedIn.com Sources
The majority of traffic to the fastest growing sites comes from Google, Yahoo!,
Facebook.com, and YouTube.com.
12 © comScore, Inc. Proprietary and Confidential.
Unique Visitors to social networking sites have increased 5% year
over year
0
15,000
30,000
45,000
60,000
75,000
90,000
105,000
120,000
135,000
150,000
165,000
Facebook Tumblr Twitter LinkedIn
Source: comScore US Media Metrix Panel Only Data, July 2011
UV
s (
000)
+11%
+223%
+32%
+52%
Since July 2010, the microblogging site Tumblr has seen an increase
in Unique Visitors of 223%.
13 © comScore, Inc. Proprietary and Confidential.
Google+: The Future of Social Networking?
Source: comScore Voices: Google+ Off to a Fast Start with 20 Million Visitors
in 21 Days
In the first 21 days of its existence,
Google+ visitation grew 561%.
As of July 19, Google+ saw just under 20
million visitors worldwide.
Growth between week 1 and week 2 was
82%.
Just over a quarter (27%) of visitors were
from the US.
14 © comScore, Inc. Proprietary and Confidential.
Where do Google+ US Visitors come from?
The US is responsible for more
traffic to Google+ than any other
country.
More tech savvy markets Austin
and San Francisco-Oakland-San
Jose were more than three times
as likely to be represented.
Other markets with higher
indices include Minneapolis-St.
Paul, Pittsburgh, and Washington
D.C.
Google+: The Future of Social Networking?
Source: comScore Voices: Google+ Off to a Fast Start with 20 Million Visitors
in 21 Days
15 © comScore, Inc. Proprietary and Confidential.
Agenda
Worldwide Context
US Vital Signs
State of the Internet
– Video
– Search
– Mobile
– eCommerce
Monetization
16 © comScore, Inc. Proprietary and Confidential.
Online Video Viewing Is Growing Strongly with Significant Growth
Potential
Reach of elusive audiences
Better engagement
However, monetization is still a big
challenge:
User experience
Rights for UGC (User
Generated Content)
Value Drivers of Online Video
Advertising
Source: comScore Video Metrix, July 2011
July 2011
US Video Viewers 184.9MM
% Of Internet Users Who Viewed
At Least One Video 86%
Total # of Viewed Videos 43B
YoY Growth in Video Views 17.8%
Videos per Viewer 233
Viewing Time per Viewer 18 hr 12 min
17 © comScore, Inc. Proprietary and Confidential.
Time Spent Streaming Jumps as Long-Form Content Floods the Web
Total US Streaming Minutes and Video Views
Sites heavy with
long-form content
have continued to
grow over the
past year,
contributing to
the increase in
time spent
streaming.
July 2010 July 2011
Hours per Viewer 14.6 18.2
Videos per Viewer 201.2 232.6
Minutes per Video 4.3 4.7
Source: comScore Video Metrix, July 2011
0
20
40
60
80
100
120
140
160
180
200
220
Jul '10 Aug '10 Sep '10 Oct '10 Nov '10 Dec '10 Jan '11 Feb '11 Mar '11 Apr '11 May '11 Jun '11 July '11
Total Videos Total Minutes +27%
+18%
18 © comScore, Inc. Proprietary and Confidential.
Males Are More Engaged Online Video Viewers than Females
Source: comScore Video Metrix, July 2011
Video Activity By Gender
+120% +66%
+116% 92.0
172.9
659.7
92.9
291.7
1521.8
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
1500
1600
UVs (MM) Videos per Viewer Minutes per Viewer
Females Males
+69% +131%
19 © comScore, Inc. Proprietary and Confidential.
Where Are People Watching Videos Online?
Google continues to
dominate in terms
of audience size,
fueled by YouTube’s
158 MM UVs.
In addition, 99.8% of
Google video
viewers are
watching content,
dwarfing the
percentage of
viewers watching
their ads (21%)
UVs (MM)
158
69 68 63 62 59
52 52 51 50
158
0 0
62
0 0 0
51 49 46
0
20
40
60
80
100
120
140
160
180 Total UVs (MM)
Content UV's (MM)
Source: comScore Video Metrix, July 2011
20 © comScore, Inc. Proprietary and Confidential.
Agenda
Worldwide Context
US Vital Signs
State of the Internet
– Video
– Search
– Mobile
– eCommerce
Monetization
21 © comScore, Inc. Proprietary and Confidential. Source: comScore qSearch State of Search, July 2011
The Search Market Overview: Key Highlights & Trends
In July 2011:
Today’s Search Landscape by qSearch
Leading Search Properties
Alternative Search Properties
At 27.4 billion searches in July 2011, the search landscape has grown 8% in the
past year. Search growth is driven by increased intensity (+3%).
Microsoft, Yahoo!, and Google see search growth versus one year ago. Microsoft
leads in unique searcher growth (+9%) and Google leads in intensity growth (+14%).
Apple had the most searcher growth over the past year with 10% growth in
searchers over the past year. eBay leads with 687MM searches in July 2011 while
Facebook.com has the largest number of searchers (58.3MM).
22 © comScore, Inc. Proprietary and Confidential.
Global Search Market Growth of 13% Y/Y–More Than 3.5 Million
Searches per Minute
0
5,000
10,000
15,000
20,000
25,000
30,000
United States
China Japan Germany United Kingdom
Brazil France India Turkey Canada
Top 10 Countries by Number of Searches (MM) Conducted*
Jul-10
Jul-11 +15%
+16%
+6% +30% +19% +4% +21% 0%
+18%
+8%
0
20,000
40,000
60,000
80,000
100,000
120,000
Top 10 Search Properties by Searches (MM) Conducted Jul-10
Jul-11
+12% -3%
+11%
-15% +13% -2% +17% -12% +12%
+20%
*Searches based on “expanded search” definition, which includes searches at the top properties where search activity is observed, not only
the core search engines.
Google sites
account for
over two-
thirds of the
158 billion
searches
conducted
worldwide in
July.
Chinese
based Baidu
(11.5 billion
searches) was
second in
front of
Yahoo! (10.5
billion
searches).
Source: comScore qSearch 2.0 July 2011
23 © comScore, Inc. Proprietary and Confidential.
27.4 billion searches were performed in July 2011, which marked an
8% growth rate over July 2010.
qSearch 2.0: Trends in the U.S. Search Market
Source: comScore qSearch 2.0, July 2011
25.4 25.8 26.0
27.0
26.1 26.6 26.7
24.3
26.7
25.6
27.2
26.6
27.4
Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11
+8%
Change vs.
July 2010
Total U.S. Searches for all qSearch properties (Billions)
24 © comScore, Inc. Proprietary and Confidential. Source: comScore qSearch 2.0, July 2011
17,043
3,526
2,633
409 588
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Jul-10 Oct-10 Jan-11 Apr-11 Jul-11
Leading Search Properties: Searches (MM)
Change vs.
July-10
Google Sites +16%
Yahoo! Sites +2%
Microsoft Sites +20%
AOL, Inc. -33%
Ask Network -15%
Microsoft showed a 20% increase in searches while
AOL’s search volume fell by 33%
qSearch 2.0: Leading U.S. Search Properties
25 © comScore, Inc. Proprietary and Confidential.
Search Engines Continue to be the Major Players as Non-Search
Engine Search Slows in Growth
Non-search engine search growth decreases (-6%), but still represents a sizeable
percentage of overall searches.
+8%
Source: comScore qSearch 2.0; “Search Engines” defined as properties falling
under the Search/Navigation category in qSearch , July 2011
Change vs.
July 2010
-6%
+17%
Searches (Billions)
15.2 17.8
10.2 9.6
25.4 27.4
July 2010 July 2011
Search Engines Non-Search Engines Total
26 © comScore, Inc. Proprietary and Confidential. Source: comScore qSearch 2.0, July 2011
145.7
687.1
239.6
409.1
662.8
0
100
200
300
400
500
600
700
800
900
Jul-10 Oct-10 Jan-11 Apr-11 Jul-11
Alternative Search Properties: Searches (MM)
Change vs.
July-10
Apple Inc. +9%
eBay +2%
craigslist, inc. -9%
Amazon Sites -26%
Facebook.com -39%
Among the top alternative search properties, eBay leads the pack with 687MM
searches
qSearch 2.0: Alternative U.S. Search Properties
27 © comScore, Inc. Proprietary and Confidential.
The Great East Coast Earthquake of 2011
An animated look at U.S. Internet usage by minute between the hours of
1:40pm and 3:00pm
comScore Voices: Internet Seismometer Off the Charts from Yesterday’s Quake
http://blog.comscore.com/2011/08/internet_seismometer_virgina_earthquake.html
28 © comScore, Inc. Proprietary and Confidential.
The Great East Coast Earthquake of 2011
• 1:51pm: There is a sudden drop in computer traffic
in the two regions closest to the epicenter at the
time of the quake likely from individuals in office
buildings being evacuated.
• 2:00 – 2:10pm: Computer traffic spikes back up as
employees in local regions flock back into buildings.
As expected, computer traffic increases slower in
regions further from the quake. Peak traffic rates are
observed for all devices: PC traffic is up to 22%
higher than expected weekday mid afternoon
volumes.
• 2:30 – 3:00pm: Computer and mobile traffic both
decrease in all regions, with regions closer to the
quake experiencing faster drops as they fall back
towards being in-line with other regions. Traffic, on
the whole, still remains significantly higher than pre-
quake volumes.
comScore Voices: Internet Seismometer Off the Charts from Yesterday’s Quake
http://blog.comscore.com/2011/08/internet_seismometer_virgina_earthquake.html
29 © comScore, Inc. Proprietary and Confidential.
Agenda
Worldwide Context
US Vital Signs
State of the Internet
– Video
– Search
– Mobile
– eCommerce
Monetization
30 © comScore, Inc. Proprietary and Confidential.
Mobile On Track to Eclipse the Desktop
Source: Morgan Stanley Research
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Desktop
Mobile
Number of Global Users (Millions)
31 © comScore, Inc. Proprietary and Confidential.
Google’s Android Has Rapidly Grown its Smartphone Market Share
and Has Taken the Lead in the Race with Apple and RIM
While the number of Smartphone owners has increased 54% year over year, there have been significant
changes in the share by operating system.
Android has rapidly grown to represent 41.8% of Smartphone owners in the US, overtaking Apple and
RIM. With 27% Smartphone share, Apple takes 2nd position before RIM with 21.7%.
Product: MobiLens
Data: Three month average ending July 2011
Country: US, N= 31,100
278%
75%
-15% -25%
-11%
-46%
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
% Y
ear
Ov
er
Year
Gro
wth
Mo
bile O
wn
ers
(000)
Smartphone OS Growth
Jul-2010 Jul-2011 Year on Year Growth
Google , 41.8%
Apple, 27.0%
RIM , 21.7%
Microsoft, 5.7%
Palm, 1.7%
Other Smartphone ,
2.1%
Smartphone OS Share
32 © comScore, Inc. Proprietary and Confidential.
48.7% of US Mobile Phone Owners Browse the Mobile Internet, Use
Applications or Download Content (Mobile Media Users)
The number of people who are just using voice has declined 14% year over year.
Mobile Media usage has grown 20% year over year with July 2011 seeing 18.8 million additional mobile
media users
Product: MobiLens
Data: Three month average ending July 2011
Country: US, N= 31,100
Mobile Media User = Used browser, application, native email, stream or download music
and broadcast or on demand video (does not include SMS)
Mobile Media, 40.7%
SMS (and not mobile
media), 29.7%
Just Voice, 29.6%
Mobile Market Segments July 2010
Mobile Media, 48.7%
SMS (and not mobile
media), 25.9%
Just Voice, 25.4%
Mobile Market Segments July 2011
114.0 million 95.2 million
33 © comScore, Inc. Proprietary and Confidential.
Growth in All Major Categories
Personal Email, which is now used by 34% of all mobile phone owners in the US is still growing its user
base – 27% year over year.
Mobile usage of Social Networking services has increased by 38%
Product: MobiLens
Data: Three month average ending July 2011
Country: US, N= 31,100
27%
34%
38%
28%
38%
32%
6%
14%
20%
24%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
%Y
oY
-Gro
wth
Un
iqu
e U
ser
(000)
Top 10 Mobile Categories – Year Over Year Growth
Jul-2010 Jul-2011 Year-on-Year Growth
34 © comScore, Inc. Proprietary and Confidential.
Social Networking Services With Check-In Functions on the Rise
Facebook Places is by far the most popular service, followed by Foursquare, which
shows strong growth (138% since Aug 2010).
Product: MobiLens
Data: Three month average ending July 2011
Country: US, N= 31,100
94.0%
11.9%
2.5% 1.9% 0.6% 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Facebook Places Foursquare Yelp Gowalla Loopt
% U
sed
SN
wit
h C
heck
-In
Fu
ncti
on
Social Networking Services with Check-In Function
+138%
35 © comScore, Inc. Proprietary and Confidential.
Location is Key
76% of devices in the US market have GPS - perfect conditions for location
based services.
Product: MobiLens
Data: Three month average ending July 2011
Country: US, N= 31,100
30%
26%
22%
14% 12%
9%
6%
34.2%
28.0%
37.9%
27.3%
35.6%
14.6%
20.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0%
5%
10%
15%
20%
25%
30%
35%
Weather Search Maps Movie Information Restaurant Information
Traffic Reports Travel Service
% Y
oY
-Gro
wth
% M
ark
et
Location Based Services
Jul-10 Jul-11 Year-on-Year Growth
36 © comScore, Inc. Proprietary and Confidential.
The Mobile Phone as Constant Everyday Companion
The mobile phone is a key communications device, with over half of consumers who use SMS or email
doing so almost every day.
More than 60% of consumers participating in the most popular seven mobile activities – communication,
listening to music, news and weather - do so at least once a week.
Product: MobiLens
Data: Three month average ending July 2011
Country: US, N= 31,100
30%
31%
32%
38%
49%
55%
63%
66%
34%
33%
32%
34%
28%
25%
22%
21%
36%
35%
35%
28%
23%
19%
15%
12%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Accessed financial news / stock quotes
Accessed news
Listened to music on mobile phone
Accessed weather
Used major instant messaging service
Accessed Social Networking Site or Blog
Used email (work or personal)
Sent text message to another phone
% Mobile Activity
Frequency of Top Mobile Activities
Almost every day At least once each week Once to three times throughout the month
37 © comScore, Inc. Proprietary and Confidential.
Agenda
Worldwide Context
US Vital Signs
State of the Internet
– Video
– Search
– Mobile
– eCommerce
Monetization
38 © comScore, Inc. Proprietary and Confidential.
U.S. e-Commerce Dollar Sales Growth ($Billions) Source: comScore e-Commerce Measurement
Source: comScore State of the U.S. Online Retail Economy in Q2 2011
Total e-commerce spending continues to recover strongly from the recession,
posting a +12% gain Y/Y
$42 $53 $67 $82
$102 $123 $130 $130 $142
$75
$30 $40
$51
$61
$69
$77 $84 $80
$85
$50
2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1-Q2 2011
$72
$143 $171
$200
+26%
+19%
+17%
+7% -2%
+9% +12%
Retail
Travel
$93 $117
$214 $209 $228
$125 +29%
+22%
+26%
+33%
+26%
+28%
+20%
+24%
+24%
+13%
+20%
+12%
+6%
+9%
0%
-5%
+10%
+6%
+13%
+11%
39 © comScore, Inc. Proprietary and Confidential.
Source: comScore State of the U.S. Online Retail Economy in Q2 2011
Beginning with Q4 2009, e-Commerce dollar sales have seen positive
gains Y/Y for seven straight quarters
Bil
lio
ns
($
)
e-Commerce Dollar Sales ($ Billions) Source: comScore e-Commerce Measurement
% Change Year over Year
Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11
$31.2 $30.6 $30.3
$38.1
$30.2 $29.6 $31.0
$39.0
$33.9 $32.9 $32.1
$43.4
$39.1 $37.5 $38.0
+19% +11% +13% +6% -3% 0% -1% -2% +3% +10% +9% +9% +11% +12% +14%
40 © comScore, Inc. Proprietary and Confidential.
*Note: The U.S. Department of Commerce calculation includes total retail and
food service sales, which also includes motor vehicles and parts dealers.
Source: comScore State of the U.S. Online Retail Economy in Q2 2011
E-Commerce growth significantly exceeds the growth of total retail,
indicating that consumers continue to shift from retail to online
Quarterly e-Commerce Sales Growth vs. YA Source: comScore e-Commerce Measurement
Quarterly Retail & Food Services Sales Growth* vs. YA Source: U.S. Department of Commerce (DOC)
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11
17%
23%
19%
11% 13%
6% -3% 0% -1% -2%
23%
3%
10%
9%
12%
9%
11%
14%
4% 4% 3% 5%
4% 2%
1%
-8% -10% -9%
-7%
2%
6% 7%
5%
8%
7% 7%
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11
When excluding autos, gas and
food/beverage, Q2 retail sales growth
was +4% (down from +6% in Q1)
41 © comScore, Inc. Proprietary and Confidential. Source: comScore e-Commerce Measurement, Q2 2011
Most categories show strong growth in Q2 2011 versus Q2 2010
Q2 2011 e-Commerce Sales Growth vs. YA by Retail Category
Source: comScore e-Commerce Measurement
Q2 growth rates of 15% or
higher
Q2 growth rates of 5-9%
Q2 growth rates of 10-14%
Product Category Relative Chg
Growth Rate Q2
2011 vs. Q1 2011
Q2 2011
Growth
vs. YA
Event Tickets Very Strong
Computers/Peripherals/PDAs Very Strong
Consumer Electronics (x PC Peripherals) Very Strong
Books & Magazines Strong
Flowers, Greetings & Misc. Gifts Strong
Jewelry & Watches Strong
Apparel & Accessories Strong
Consumer Packaged Goods Strong
Video Games, Consoles & Accessories Strong
Furniture, Appliances & Equipment Moderate
Home & Garden Moderate
Office Supplies Moderate
Sport & Fitness Moderate
42 © comScore, Inc. Proprietary and Confidential.
Despite opportunities, retailers remain behind the curve in
advertising on Social Media
Share of Advertiser
Display Ads on Social
Networking Sites
What will it take to get Retailers more comfortable
with Social Media???
367,500
287,627
264,883
236,863
137,156
87,938
86,870
77,848
74,576
72,061
eBay
RadioShack
Netflix, Inc.
Home Depot
J. C. Penney
ShoeDazzle.com
QuiBid
Gilt Groupe
Bidcactus
ideeli Inc.
Top Retail Display Advertisers on Social Networking Sites in Q2 2011
Ranked by Number of Display Ad Impressions (000) Source: comScore Ad Metrix, U.S., Q2 2011
14.4%
27.0%
11.1%
31.1%
19.9%
13.9%
10.2%
26.9%
52.3%
20.6%
Retail
15.4% Total
Internet
34.4%
43 © comScore, Inc. Proprietary and Confidential.
Agenda
Worldwide Context
US Vital Signs
State of the Internet
– Video
– Search
– Mobile
– eCommerce
Monetization
44 © comScore, Inc. Proprietary and Confidential.
US Online Ad Spend Poised to Grow 20% in 2011
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2010 2011 2012 2013 2014 2015
US Online Ad Spending 2010-2015
$ Billions and % Change
8.8% 14.9%
20.2% 17.6%
12.0% 10.4%
Source: eMarketer: US Online AdSpend Poised to Grow 20% in 2011
45 © comScore, Inc. Proprietary and Confidential.
Who are the top advertisers in the online market in July 2011?
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
To
tal D
isp
lay A
d I
mp
res
sio
ns
(00
0)
Top 10 Online Advertisers
Source: comScore US Ad Metrix, July 2011
Telecommunications companies AT&T , Verizon, and Sprint Nextel have large online advertising
presences.
Top advertisers also include business/finance companies, Experian, Scottrade, and Trans Union.
46 © comScore, Inc. Proprietary and Confidential.
Is Ad Clutter Seasonal?
Since mid-February 2011, Average Display Ad Frequency has closely
mirrored Average Minutes per Visitor.
Year over year, Average Display Ad Frequency has decreased 10%,
however, Average Minutes per Visitor has increased by 3%.
0
500
1,000
1,500
2,000
2,500
Average Display Ad Frequency Average Minutes per Visitor
-10%
+3%
Source: comScore US AdMetrix, US MediaMetrix Panel Only Data July 2011
47 © comScore, Inc. Proprietary and Confidential.
0
20,000
40,000
60,000
80,000
100,000
18%
32%
0%
5%
10%
15%
20%
25%
30%
35%
Portals Social Networking
Social networks have caused users to spend more time online and
advertisers to shift dollars towards online advertising
Source: comScore US Media Metrix Panel Only Data, July 2011 comScore US Ad
Metrix, July 2011
Total Minutes Spent (MM)
-7%
YoY
+47%
YoY
-9%
YoY
+14%
YoY
Share of Display Ads (%)
For the first time, Social Networking
overtook Portals in terms of Total
Minutes spent.
Social networks have also brought
huge quantities of inventory
online
Portals
Social Networking Sites
48 © comScore, Inc. Proprietary and Confidential.
Socially Enabled Display Ads Encourage Brand Interaction
* Ad Metrix (July 2011) US data
Many advertisers employ social networking sites and incorporate social media
elements into their online advertising strategies.
Advertiser (US) Total Impressions
Socially Enabled
Impressions
% Socially Enabled
Impressions
Agro-Farma, Inc. 115,756,192 65,720,561 57%
Kraft Foods Inc. 539,927,424 194,084,538 36%
Mars Incorporated 956,001,280 296,246,614 31%
Thank you!
Bryan Goski
Director, comScore Marketing Solutions