State of the Internet - July 2008

MEASURING THE DIGITAL WORLD

State of the InternetcomScore, Inc.

July 2008

Proprietary and Confidential Do not distribute without written permission from comScore 2

■ Introduce comScore– Briefly review data sources / overall capabilities used for this presentation

■ Convey State of the Internet, with a focus on:– High level trends/Worldwide opportunity

– Continued growth of online advertising

– Impact of increased broadband penetration

– Emergence of new sites/business models

– Evolution of streaming

– Growth of eCommerce

– Development of search

■ Stimulate discussion – not intended as a one-way dialogue!

Meeting ObjectivesMeeting Objectives


The digital world is not

place or time dependent

comScore Vision: Pervasive Digital MeasurementAnyone, Anywhere, Any Time, Any DevicecomScore Vision: Pervasive Digital MeasurementAnyone, Anywhere, Any Time, Any Device


■ We are the largest provider of digital marketing intelligence, using a platform that helps our customers make better-informed business decisions and implement more effective digital business strategies

■ We measure the continuous online activity of 2 million people globally who have granted us explicit permission to confidentially measure their Internet usage patterns.

■ Our products and solutions provide our customers deep insights into consumer behavior, both online and offline

What We Do….What We Do….


■ Complete URL/click-stream data

■ All panelists’ transactions are captured

■ Secure

■ Non-Secure

■ All personally-identifiable information (PII) is stripped from web page on panelists’ machine before being transferred to Collection Server

■ More accurate ID of user location since the browser directly initiates the request

Proprietary Data Collection TechnologyProprietary Data Collection Technology

Browser

CProxy

Collection Server

HTTP Website

HTTPS Website

Streaming Site

Panelist’s PC


AUDIENCEDEMOGRAPHICS

LIFE STAGE

PC ATTRIBUTES

SEGMENTATION

LINKED DATASETSAcxiom; Claritas/Prizm; internal CRM database, IRI, …

BROWSERIE, AOL, Netscape, …

CONTENT VISITATION

SEARCH

VIDEO / RADIO STREAMING

COMMUNICATIONEmail, IM, Mobile

TRANSACTIONSPurchase / Subscriptions; Configurations; PriceRequest

ACTIONS

PC LOCATION:Home; Work (Corporation, Laptop); University

INTERNATIONAL:US/CanadaEuropeAsia Latin AmericaLanguage Regions

WORLDWIDE

LOCATIONADVERTISING:

Display, Streaming, SearchReach/FrequencyTracking & ExposureEffectiveness

Sales: Results / Clickthrough / Referrals

ATTITUDINAL:Awareness, preference, customer satisfaction

IMPACT

comScore Measures the Digital WorldWho, What, Where, Why?comScore Measures the Digital WorldWho, What, Where, Why?


Recognized for Outstanding Growth and InnovationRecognized for Outstanding Growth and Innovation

America’s Fastest Growing Private CompaniescomScore ranked 97th among the nation’s fastest growing privately held firms. November 2004

Top 100 Innovative CompaniesNamed one of the 100 companies that will shape the next year in technology. December 2004

World’s Largest DatabaseGrand prize winner for developing the largest NT decision support warehouse.December 2001, 2003, 2005

Rising StarNamed one of only three “Rising Stars” among Virginia-based technology companies.October 2004

High Tech AwardRecognized as a technology leader for successfully developing innovative products.November 2004

Fastest Growing Global Research FirmCurrently ranked the 18th largest US and 21st largest global research firm.August 2007

2007 Technology PioneerFirst market research firm to be named a 2007 Technology Pioneer by the World Economic Forum.December 2006


Telecom Financial Retail Travel CPG Pharma Technology

Advising Hundreds of Leading Businesses(partial list)Advising Hundreds of Leading Businesses(partial list)


Media Agencies

Advising Hundreds of Leading Businesses (partial list)Advising Hundreds of Leading Businesses (partial list)


Mapping the InternetMapping the Internet

Content / VisitationContent / Visitation

US INTERNET INDUSTRY TRENDS


eCommerceeCommerce SearchSearch

WORLDWIDE CONTEXT

WORLDWIDE CONTEXT

Streaming Activity

Streaming Activity


Online Population by Geography

Source: comScore World Metrix, July 2008

Online Population Growth Over Time

Rest of the World

US

Online Population: US vs. Rest of WorldOnline Population: US vs. Rest of World

Total

US

Rest of the World

US

There are approximately 950M people online today; 787M (83%) are located outside the US.There are approximately 950M people online today; 787M (83%) are located outside the US.


Unique Visitors to Top PropertiesUnique Visitors to Top Properties

The top 10 Global Properties attract a majority of Unique Visitors from outside the US

The top 10 Global Properties attract a majority of Unique Visitors from outside the US


159.8

144.875%

174.4

171.275%

67%

55%

271.0

244.3

236.8

80%

73%

722.5

636.4

542.2

83%

83%

77%

63%

US Audience Non-US Audience Total Worldwide Unique Visitors (MM)


Worldwide and US Reach (%)Worldwide and US Reach (%)

How the World Uses the InternetHow the World Uses the Internet

• Search is second only to Portals in terms of Worldwide and US reach, with Entertainment and Shopping following closely

• Reach is higher for almost all categories in the US, except for the Portals and Search categories where Worldwide reach has surpassed US reach

• Search is second only to Portals in terms of Worldwide and US reach, with Entertainment and Shopping following closely

• Reach is higher for almost all categories in the US, except for the Portals and Search categories where Worldwide reach has surpassed US reach



Internet Users Age 15+ (MM)

Other Countries Catching Up to the USOther Countries Catching Up to the US

China, Japan, Korea, and India combined to represent 29% of the total Worldwide online

population; this total is 68% larger than the US online population

China, Japan, Korea, and India combined to represent 29% of the total Worldwide online

population; this total is 68% larger than the US online population



Average Hours Per Visitor Per Month

Online Engagement by CountryOnline Engagement by Country

• In terms of online behavior, Canada is the most engaged country, followed by Israel

• The US falls in the top half of a list dominated by mostly South American and Western European countries

• In terms of online behavior, Canada is the most engaged country, followed by Israel

• The US falls in the top half of a list dominated by mostly South American and Western European countries



Online Engagement By RegionOnline Engagement By Region

18.4

21.7

29.9

26.4

27.1

18.4

21.7

29.9

26.4

27.1

Internet Users (000) Age 15+ Average Hours Per Visitor Per Month

At a regional level, Asia has the most visitors, but is the least engaged, while North America is the most engaged

At a regional level, Asia has the most visitors, but is the least engaged, while North America is the most engaged



Top 10 Countries by Search VolumeTop 10 Countries by Search Volume

Top 10 countries based on Total Search VolumeTop 10 countries based on Total Search Volume

A total of 80.6 Billion online searches were conducted Worldwide in July 2008. China occupies the 2nd position in total online searches, contributing to 14% of Worldwide searches

Sear

ch V

olum

e (M

illio

ns)

21%

14%

8%

5% 5%3% 3%

3% 3% 2%

Source: comScore qSearch, July 2008

The Top 10 countries account for 66% of Worldwide

searches

The Top 10 countries account for 66% of Worldwide

searches


Total Ad Spend by CountryTotal Ad Spend by Country

Global Search: The New Frontier Global Search: The New Frontier

Source: comScore Marketing Solutions; MediaPost Search Insider, January 29, 2008

Internet Population vs. Total PopulationInternet Population vs. Total Population

51%

7%

38%10%

8%39%

50%42%

31%62%

• The US has 1.8x the number of Internet users as China, but China has 4.4x the population

• If 25% of China's population used the Internet, they would outnumber the entire US population

• While less than 10% of the populations of most Latin American countries are online today, there is great potential in the Latin American market as demonstrated by the total ad spend and population of countries like Brazil and

Mexico

• The US has 1.8x the number of Internet users as China, but China has 4.4x the population

• If 25% of China's population used the Internet, they would outnumber the entire US population

• While less than 10% of the populations of most Latin American countries are online today, there is great potential in the Latin American market as demonstrated by the total ad spend and population of countries like Brazil and

Mexico

2006 Total Ad Spend (MM)USA $163,036China $48,518Japan $34,240UK $25,827Germany $21,771Brazil $18,302Mexico $16,493France $13,261Italy $11,140Canada $10,308

% = Percentage of the Population Using the Internet


Worldwide Search HighlightsWorldwide Search Highlights

• 90% of people online from China use search, which still leaves room for growth

• Canada generates the highest searches per searcher

• 90% of people online from China use search, which still leaves room for growth

• Canada generates the highest searches per searcher

Source: comScore qSearch, July 2008

Searcher Conversion*

Result Pages per Search

Searches per Searcher

* Searcher Conversion: Searchers / Visitors

The first search page is extremely important as the average searcher looks at less than two result pages per search

The first search page is extremely important as the average searcher looks at less than two result pages per search

United Kingdom 1.3Finland 1.6Canada 1.4France 1.4Italy 1.4Germany 1.4Korea 1.3Sweden 1.6Portugal 1.5Venezuela 1.4Japan 1.5China 1.6


Number of Mobile Subscribers vs. Internet Users – 2006 Number of Mobile Subscribers vs. Internet Users – 2006

Strong Potential For Mobile WebStrong Potential For Mobile Web

3.1 1.3 2.7 2.0Mobile Subs per Internet User

Mobile Internet usage is poised to take off – with mobile subscribers outnumbering Internet users three to one, driven primarily by users in emerging markets

Internet Users Mobile Subscribers

Source: comScore Marketing Solutions


Mobile Phone Web Users Nearly Equal PC Based Internet Users in JapanMobile Phone Web Users Nearly Equal PC Based Internet Users in Japan

% Reach of Mobile Activities

Source: comScore Press Release, September 20, 2007

“Mobile Web is a significant opportunity. Advertisers can now reach 53 million consumers online. The mobile audience is especially important to marketers trying to reach younger

audiences.” -Maru Sato, Managing Director of comScore, Japan

“Mobile Web is a significant opportunity. Advertisers can now reach 53 million consumers online. The mobile audience is especially important to marketers trying to reach younger

audiences.” -Maru Sato, Managing Director of comScore, Japan

Time Spent on PC vs. MobileMonthly Hours per UV

Age Skews in PC vs. Mobile

147 6591 76

111 # =Index of PC to Mobile


Mobile Search Users (000)Three-month average ending June 2007 and June 2008

Mobile Search Users (000)Three-month average ending June 2007 and June 2008

Mobile Search is Growing Rapidly in the US and EuropeMobile Search is Growing Rapidly in the US and Europe

+48%

Mobile search is gaining both popularity and frequency

Google is the preferred brand for browser-based searches with a 60% share of mobile searchers in all countries measured by comScore M:Metrics

June 2007

June 2008

*Includes top five countries listedSource: comScore M:Metrics MobiLens

+40% +40%+40%

+30%

+68%

+38%

“The number of US users accessing mobile search has more than doubled as a result of expanded 3G penetration and Smartphone adoption, as well as the proliferation of flat-rate data plans. We have also seen a

substantial improvement to the mobile search offerings in the US market.” -Alistair Hill, comScore Analyst

“The number of US users accessing mobile search has more than doubled as a result of expanded 3G penetration and Smartphone adoption, as well as the proliferation of flat-rate data plans. We have also seen a

substantial improvement to the mobile search offerings in the US market.” -Alistair Hill, comScore Analyst




Streaming Activity

Streaming Activity




WORLDWIDE CONTEXT

WORLDWIDE CONTEXT


US Internet ActivityUS Internet Activity

In July 2008:

■ 189.1 million Americans used the Internet– Average user was online 19 days in the month, for a total of 26.6 hours, and viewed

2,406 pages

■ 20% of total time spent online was spent at communications sites – Users spent an average of 4.8 hours with Email and 4.1 hours on IM alone

■ 92% of Internet visitors conducted at least one search– Average searcher conducted 88 searches

■ Total 2008 online spending through July at US sites was $124.0 billion, up 11% from the same period in 2007. Travel accounted for $52.2 billion, or 42%, of total online spending in this period

Source: comScore Media Metrix , July 2008; comScore qSearch , July 2008; e-Commerce Reports, July 2008


Household Broadband PenetrationHousehold Broadband Penetration

Key Themes: Broadband Driving GrowthKey Themes: Broadband Driving Growth

Unique Visitors Minutes % Change Pages % Change

July 2008 UVs (millions) % Change BB%

ChangeNB%

ChangeBB%

ChangeNB%

Change

Home 162,343 7% 6% -34% 1% -40%

Work 65,495 14% -9% -74% 0% -77%

Total US 189,134 5% -1% -37% -1% -43%

% Streaming% Streaming Searches (MM)Searches (MM) eCommerce ($BN)eCommerce ($BN)

July 2007 July 2008

July 2007

Travel

Non-Travel

+25% +9%

Source: comScore Marketing Solutions; comScore Video Metrix , July 2008; comScore qSearch, July 2008

July 2008

July 2007 July 2008 July 2007 July 2008


“Online is getting to the point where it may be more important than the 30-second TV spot.”

-Joel Ewanick, VP MarketingHyundai Motor America

“Even ad-spending giant P&G is considering cutting its overall ad budget by as much as 10% this year and aggressively moving ad dollars to the Web.”

-Wall Street Journal,May 12, 2008

Impact on Advertising DollarsImpact on Advertising Dollars

Proprietary and Confidential Do not distribute without written permission from comScore

The Internet is the 3rd Most-Used Medium and About to Become 2nd Only to TVThe Internet is the 3rd Most-Used Medium and About to Become 2nd Only to TV

Newspapers 8%

Magazines 7%

Watching TV 37%

Video or DVDs 12%

Radio 19%

Internet* 17%

Source: Forrester Research, March 2007* Excludes work usage


Ad Dollars are Flowing Online…Ad Dollars are Flowing Online…

Internet

Outdoor

Cable TV

Magazines

Direct Mail

Miscellaneous

OverallTrade Journals

Yellow Pages

Broadcast TV

Radio

Newspapers

$21 Billion

$ 7

$26

$14

$61

$39

$295$ 4

$14

$46

$19

$44

MediaAdvertising Dollars Spent in 2007* Percent Change from 2006

Source: Global Insights as published in BusinessWeek* Other sources may define categories differently, leading to different results


Yet, Online Only Accounts for 7% of Total Ad Spending!Yet, Online Only Accounts for 7% of Total Ad Spending!

Source: Advertising Age by Robert J. Coen, McCann-Erickson Inc; Newspaper Association of America; Radio Advertising Bureau; Simba Information; Outdoor Advertising Association of America; Interactive Advertising Bureau (IAB); Lehman Brothers

2007 Estimate($ in Millions) % Total

Direct Mail $ 60,988 21%

Broadcast TV $ 45,749 15%

Newspaper $ 42,939 14%

Internet $ 21,100 7%

Cable TV Networks $ 20,479 7%

Radio $ 18,592 6%

Yellow Pages $ 14,538 5%

Consumer Magazine $ 13,695 5%

All Other $ 55,977 19%

Total $ 296,100 100%

29


Top Websites Reach More Americans than Top Network TV Shows Daily

Versus 25 MM viewers for American Idol*

Versus 25 MM viewers for American Idol*

*Forbes, March 2008Source: comScore Media Metrix, July 2008

US Visitation to Top Online Properties (MM) – July 2008US Visitation to Top Online Properties (MM) – July 2008


Online $

Major TV Revenues vs. Ratings

The disparity between TV ratings and ad revenues is providing an opportunity to move ad dollars to more efficient media

The disparity between TV ratings and ad revenues is providing an opportunity to move ad dollars to more efficient media

Note: Rating = estimated percentage of the universe of TV households (or other specified group) tuned to a program at once. Ratings expressed as a %.

Source: Television Bureau of Advertising, Trends in Advertising Volume, 2004-2006


Medium

2005 US Advertising

Spending ($B)

Number of US Households

(MM)US Ad

Spend/HH($)Promotions $106 99 $1,071

Direct Phone 97 99 980

Direct Mail 57 99 576

Newspapers 49 50 980

Broadcast TV 45 99 445

Radio 20 60 333

Cable TV 19 70 271

Yellow Pages 16 99 162

Total Internet 13 60 217

Outdoor 6 99 61

Total 428 834 5,106Average $43 83 $511

US Advertising Spending by Medium

Advertisers currently spend far more per household on less efficient media such as newspapersAdvertisers currently spend far more per household on less efficient media such as newspapers

Source: Morgan Stanley Research


The Internet is the Preferred Source of Information

% Preference By MediumIssue Magazine Newspaper Radio TV

Reference Information 4 3 1 2

Travel Information 4 3 1 4

Technology News 8 5 2 8

Health Information 13 2 1 6

Product Reviews 20 5 1 5

Weather <1 4 3 45

Auto Information 9 11 1 5

Financial Information 6 8 1 4

Diet Information 18 2 <1 5

Beauty Care Prod. Info 22 4 <1 10

Entertainment news 12 11 2 37

Family Information 22 3 1 3

General News 1 17 2 52

Grocery Product Info 5 34 1 12

Sports Information 1 14 2 25

Internet

72

67

53

52

52

45

44

37

36

31

29

26

25

24

23

Source: comScore Survey among US primary grocery shoppers in October 2005, base size = 916


Internet Advertising Trends 2006-2007Internet Advertising Trends 2006-2007

Internet Advertising Revenues ($B) Internet Advertising Revenues by Ad Format

Q1 2008 revenues totaled $5.8B, representing an 18% increase over Q1 2007 and making it the second highest quarter ever recorded, after Q4

2007’s $5.9B.

Q1 2008 revenues totaled $5.8B, representing an 18% increase over Q1 2007 and making it the second highest quarter ever recorded, after Q4

2007’s $5.9B.

Sponsorship

Leads/ Referrals

Classifieds

Display Ads*

Search

*Display ads include Ad Banners/Display Ads, Rich Media, Sponsorship, and Slotting Fees

*Q1 ‘08 revenues are an18% increase over the same period in 2007.Source: IAB Internet Advertising Revenue Report, 2006 and 2007

+76%-12% +22%

-15%

+32%

+30%

+35% Rich Media

+26%

VideoEmail

+18%*




Streaming Activity

Streaming Activity



WORLDWIDE CONTEXT

WORLDWIDE CONTEXT


Total US Internet by Age Band – July 2008Total US Internet by Age Band – July 2008

>55

35 – 54

18 – 34

12 – 17

2 – 11

35-54 Year Olds are in the Driver’s Seat35-54 Year Olds are in the Driver’s Seat

Source: comScore Media Metrix, July 2008


Engagement by Usage SegmentsEngagement by Usage Segments

Not all visitors are created equalNot all visitors are created equal

Heavy Users

Medium Users

Light Users

comScore Segment Metrix: Implications for Online Advertising: Frequency Capping, Scheduling, Targeting

comScore Segment Metrix: Implications for Online Advertising: Frequency Capping, Scheduling, Targeting

* Visits refer to session visits, not day visitsSource: comScore Media Metrix, July 2008

■ Heavy Users Account for 63% of Duration, 62% of Total Page Views, and 51% of Session Visits


Top Sites Deliver Far Less Than Their Nominal Reach and Need Ad Networks to Expand Effective ReachTop Sites Deliver Far Less Than Their Nominal Reach and Need Ad Networks to Expand Effective Reach

Reach of USInternet Audience

Source: comScore Marketing Solutions, December 2007

Bottom 50% of Viewers for Each Site

% of Total Page Views

% of Page Views Viewed by Bottom 50% of Site Users

Average PVs per Light User (bottom 50%) 10.3 14.7 7.4 7.3

At Least Half of Top Sites Audiences Are Hard to Reach by a Typical Campaign

AOL Media Network

AOL Media Network

74.4% 72.4%

58.7% 56.5%

MSN-Windows LiveGoogle SitesYahoo! Sites

AOL Media Network MSN-Windows LiveGoogle SitesYahoo! Sites


Total Internet UVs (MM)Total Internet UVs (MM)

US Visitor Growth Across All LocationsUS Visitor Growth Across All Locations

+5%

+7%

0%

+14%

Source: comScore Media Metrix


Broadband Penetration is Growing Faster than Total US Internet UsersBroadband Penetration is Growing Faster than Total US Internet Users

189.1 Million US Internet Users 85% Home Broadband Penetration



Total Broadband UVs (MM)Total Broadband UVs (MM)

The Influence of Broadband in the USThe Influence of Broadband in the US

+16%

+16%

+3%

• There has been significant year-over-year Broadband growth at Home and Work

• Broadband now reaches more than three out of every four US Internet-using homes

• Total Internet broadband penetration has been increasing steadily

• There has been significant year-over-year Broadband growth at Home and Work

• Broadband now reaches more than three out of every four US Internet-using homes

• Total Internet broadband penetration has been increasing steadily



Total Minutes by Speed (MM)Total Minutes by Speed (MM)Total Page Views by Speed (MM)Total Page Views by Speed (MM)

Total US Consumption Growth by SpeedTotal US Consumption Growth by Speed

-4%

-1%

-43%

-5%

-1%

-37%

Both Page Views and Minutes are decreasing rapidly for Narrowband users while remaining stable for Broadband users.

Both Page Views and Minutes are decreasing rapidly for Narrowband users while remaining stable for Broadband users.

BB

NB



Role of Broadband in Internet GrowthRole of Broadband in Internet Growth

Increase in BB Bandwidth

Increase in BB Bandwidth

Consumer NeedsFamily/Relationships

Health/FitnessFinances

WorkReligion

Education/TrainingHome/Real Estate

Recreation/Leisure

Broadband users, with faster speeds and quicker downloads, have driven broad functionality that appeals to the full spectrum of consumer needs

Broadband users, with faster speeds and quicker downloads, have driven broad functionality that appeals to the full spectrum of consumer needs

Online ActivitiesSearch

Content/VisitationCommunications

Shopping/CommerceMembers

Digital Living RoomGaming

Advertising

Growth in Internet Usage

Growth in Internet Usage


Top Activities by Connection SpeedTop Activities by Connection Speed

While Broadband and Narrowband users display similar skews across

the top categories …

… Broadband users over-index in almost every one of these

categories

While Broadband and Narrowband users display similar skews across

the top categories …

… Broadband users over-index in almost every one of these

categories

Category Broadband Index to Total Internet

Narrowband Index to Total Internet

Services 100 98 e-mail 101 92 Instant Messengers 104 76 Photos 110 46 Discussion/Chat 105 70Portals 100 99Search/Navigation 103 85Entertainment 105 71 Multimedia 110 47 Entertainment - Music 108 54 TV 109 49 Entertainment - Movies 109 49 Kids 111 40Retail 103 83 Computer Hardware 107 61 Comparison Shopping 109 52 Books 109 50 Department Stores 108 58 Apparel 109 49 Consumer Electronics 109 49Directories/Resources 105 74 Directories 108 58 Reference 109 51 Maps 109 48News/Information 106 66 General News 107 61 Weather 110 46 Politics 109 48Conversational Media 105 71 Social Networking 105 70Business/Finance 103 82 Personal Finance 104 79 Banking 105 73Technology 107 59Education 108 56Games 108 56 Online Gaming 108 53Source: comScore Media Metrix, July 2008


BB Index FiOS IndexGames 137 Gambling 156Gambling 136 Games 151Auctions 123 Telecommunications 138ISP 119 Auctions 133Sports 118 Education 126Telecommunications 118 Sports 124Technology 117 Career Services and Development 122Education 117 Health 121Automotive 115 Hobbies/Lifestyle 120Community 114 Technology 119

BB Index FiOS IndexOnline Gambling 159 Online Gambling 191Teens 158 Training and Education 189Gaming Information 157 Gaming Information 183Instant Messengers 146 Instant Messengers 183Humor 143 Teens 177Online Gaming 141 Kids 172Kids 141 Genealogy 169Training and Education 139 Toys 163Gay/Lesbian 139 Retail - Music 160Discussion/Chat 138 Humor 157Web Hosting 138 Computer Software 157Personals 136 Discussion/Chat 155Technology - News 134 Online Gaming 154Genealogy 134 Technology - News 153Blogs 134 Web Hosting 153

Top 10 Category Visitation - Index to Total US

Top 15 SubCategory Visitation - Index to Total US

Verizon FiOS Subscribers are More Engaged than Broadband Users in Every CategoryVerizon FiOS Subscribers are More Engaged than Broadband Users in Every Category

*FiOS- Fiber Optic ServiceSource: comScore Marketing Solutions, Q1 2007


FiOS users over-index in the higher income groups, but significantly under-

index in the lower income brackets. Broadband users, on the other hand, do not fluctuate too much across the

income groups.

FiOS users over-index in the higher income groups, but significantly under-

index in the lower income brackets. Broadband users, on the other hand, do not fluctuate too much across the

income groups.

Broadband vs. FiOS Demographic Composition: Household Income and AgeBroadband vs. FiOS Demographic Composition: Household Income and Age

Household Income Index

Head of Household Age Index

FiOS users under-index the total US between the ages of 18 and 34, and

over-index among the older age groups. Broadband users do not deviate from the US population in

terms of HoH age.

FiOS users under-index the total US between the ages of 18 and 34, and

over-index among the older age groups. Broadband users do not deviate from the US population in

terms of HoH age.

*FiOS- Fiber Optic Service

Source: comScore Marketing Solutions, July 2008


Portals’ Share of Usage Stabilizes Year Over YearPortals’ Share of Usage Stabilizes Year Over Year

Total US Broadband Narrowband

% Total US Internet Minutes Growth

Portal share of total minutes

-5% -1% -37%

Portals’ share of total Internet minutes has declined slightly year over yearPortals’ share of total Internet minutes has declined slightly year over year

Source: comScore Media MetrixPortal set includes Yahoo!, MSN, AOL, MySpace, Lycos, Netscape, MyWay, Terra Networks, Univision, etc…


% of Time spent on Portals% of Time spent on Portals

-5%0%

-2%-2%0% -1%

US Portal Usage by DemographicUS Portal Usage by Demographic

The percentage of time spent on portals has either decreased or remained stable among most age groups

The percentage of time spent on portals has either decreased or remained stable among most age groups


Portal set includes Yahoo!, MSN, AOL, MySpace, Lycos, Netscape, MyWay, Terra Networks, Univision, etc…


How Internet Users CommunicateHow Internet Users Communicate

Total Minutes Spent by Category (MM)

% of total Internet minutes 20%

Blogs

IM

E-mail

• IM users are highly engaged

• 39% of Internet population uses IMs

• Users on an average IM application spend 192 mins/month IM’ing with about 4 buddies

• IM users are highly engaged

• 39% of Internet population uses IMs

• Users on an average IM application spend 192 mins/month IM’ing with about 4 buddies


Communications categories comprise a fifth of the average Internet user’s monthly durationCommunications categories comprise a fifth of the average Internet user’s monthly duration

2%

30%

69%

% of Total Communication Minutes


Up And Coming Websites To WatchUp And Coming Websites To Watch


The user-driven component of Answers.com

Total Unique Visitors (000)

Social networking for comic book fans

Social networking for music fans

Business-oriented networking site

Portal where users can access all IM applications from anywhere, at anytime

meebo

+82%

+247%

+307%

+122%

+58%+172%

Personalized comparison-shopping

engine


Case Studies:Increasing Dependence on

the Internet

Case Studies:Increasing Dependence on

the Internet


About A Quarter Of The Population Engages In Online BankingAbout A Quarter Of The Population Engages In Online Banking

Note: Online Banking Customers: Defined as anyone that logged into any of the top 10 banks and had a Checking, Savings or Money Market relationship


Online Banking CustomersTop 10 Banks (000) Y/Y 2.6%

4.9% 5.2% 12.7% 18.5% 8.7% 6.9% 6.2% 3.1% 0.6% 2.6% 4.2% 1.8% 3.7% 4.4% -0.9% 0.9% 1.8% 0.9% Q/Q change

• 48.6 MM Online Liquid Deposit Account customers logged into their accounts in Q208

• Quarter over quarter was essentially flat with a slight increase of 0.9% from Q108

• 48.6 MM Online Liquid Deposit Account customers logged into their accounts in Q208

• Quarter over quarter was essentially flat with a slight increase of 0.9% from Q108


54% of Online Financial Applicants had No Intention of Completing Application 54% of Online Financial Applicants had No Intention of Completing Application

“As more consumers research and purchase financial products on the Web, the importance

of understanding application abandonment will increase…today’s financial services sites have a ways to go at both understanding and

solving this important issue.”

-Brad Strothkamp, Forrester Research Senior Analyst

“As more consumers research and purchase financial products on the Web, the importance

of understanding application abandonment will increase…today’s financial services sites have a ways to go at both understanding and

solving this important issue.”

-Brad Strothkamp, Forrester Research Senior Analyst


Composition of Online Financial Applicants

Top Reasons Cited by Applicants Not Intending to Complete

Top Reasons Cited by Applicants Not Intending to Complete

Top Reasons Cited by Applicants Intending to Complete but who Later Abandoned

Top Reasons Cited by Applicants Intending to Complete but who Later Abandoned


Jump in E-Servicing Visits Represents Potential Cost Savings for Insurers Jump in E-Servicing Visits Represents Potential Cost Savings for Insurers

Source: comScore Press Release, October 8, 2007

• e-Servicing activity climbed 15% in the second quarter of

2007, more than twice the rate of growth in total visits to the

auto insurer sites.

• Direct insurers, Geico.com and Progressive.com, were

more effective than the agent insurers at driving customers

towards e-servicing online.

• e-Servicing activity climbed 15% in the second quarter of

2007, more than twice the rate of growth in total visits to the

auto insurer sites.

• Direct insurers, Geico.com and Progressive.com, were

more effective than the agent insurers at driving customers

towards e-servicing online.

55%

37%

33%

22%

26%

“Given the competitive nature of the auto insurance industry, it’s imperative to find ways to both reduce costs and satisfy customers. E-servicing can be a key

ingredient in accomplishing both of these objectives.”

-Kevin Levitt, vice president of comScore Financial Solutions

“Given the competitive nature of the auto insurance industry, it’s imperative to find ways to both reduce costs and satisfy customers. E-servicing can be a key

ingredient in accomplishing both of these objectives.”

-Kevin Levitt, vice president of comScore Financial Solutions

Auto Insurer e-Servicing Overviewe-Servicing Visits as a Percentage of Total Visits


Pet Food Recall Causes Stir OnlinePet Food Recall Causes Stir Online

US Unique Visitors (MM)

+72% +34%

+105%

“Events like the pet food recall, which affected millions across the nation, demonstrate how powerful a medium the Web has become for disseminating important information…”

- Jack Flanagan, executive vice president of comScore Media Metrix

“Events like the pet food recall, which affected millions across the nation, demonstrate how powerful a medium the Web has become for disseminating important information…”

- Jack Flanagan, executive vice president of comScore Media Metrix

FDA.gov was the top gaining property in April,

due in large part to consumers seeking

information on the pet food recall

FDA.gov was the top gaining property in April,

due in large part to consumers seeking

information on the pet food recall

Nestle was the 8th highest gaining property, driven mostly by increased

traffic to the Purina.com site as consumers searched for information on

the pet food recall

Nestle was the 8th highest gaining property, driven mostly by increased

traffic to the Purina.com site as consumers searched for information on

the pet food recall

Source: comScore Press Release, May 11, 2007


Worldwide Visitation to NBA.comWorldwide Visitation to NBA.comUS Unique Visitors (MM)US Unique Visitors (MM)

Official Sports Sites See Spike in Traffic; NBA Sees Traffic From Around the World Official Sports Sites See Spike in Traffic; NBA Sees Traffic From Around the World

+57%

+38%

+22%

The beginning of baseball season, the NFL Draft, and the NBA playoffs all created a surge of traffic in April

to the major US sports leagues’ official sites

The beginning of baseball season, the NFL Draft, and the NBA playoffs all created a surge of traffic in April

to the major US sports leagues’ official sites

Source: comScore Press Releases, May 11, 2007 and May 30, 2007

North America

Asia Pacific

Europe

Latin America

Middle East / Africa

Despite being an American league, more than half of the traffic to NBA.com comes from outside the US

• China alone accounts for 23% of visitors

• Several international stars like Yao Ming have helped turn the NBA into a global brand


MLSnet.com Experiences The Ups And Downs Of The “Beckham Effect”MLSnet.com Experiences The Ups And Downs Of The “Beckham Effect”

Beckham announces retirement from England captaincy

LA Galaxy signs Beckham on with a 5 year contract

Makes debut for the LA Galaxy in a match against Chelsea

• When LA Galaxy announced the signing of UK soccer star David Beckham in January, traffic jumped to 808,000 unique visitors; a 252% month-on-month increase.

• Beckham has doubled the number of visitors to mlsnet.com versus last year, which was a World Cup year.

• When Beckham debuted for the American club in July 2007, MLSnet.com saw a record 594,000 unique visitors in the US.

• The number of total unique visitors to MLSnet.com was cut in half after Beckham was sidelined by his injuries on August 29th.

• When LA Galaxy announced the signing of UK soccer star David Beckham in January, traffic jumped to 808,000 unique visitors; a 252% month-on-month increase.

• Beckham has doubled the number of visitors to mlsnet.com versus last year, which was a World Cup year.

• When Beckham debuted for the American club in July 2007, MLSnet.com saw a record 594,000 unique visitors in the US.

• The number of total unique visitors to MLSnet.com was cut in half after Beckham was sidelined by his injuries on August 29th.

“David Beckham’s impact on the MLS league’s official website has been enormous…If anyone can raise the profile of soccer in the States, David Beckham

is undoubtedly the man to do it.”

-Bob Ivins, EVP of International Markets at comScore

“David Beckham’s impact on the MLS league’s official website has been enormous…If anyone can raise the profile of soccer in the States, David Beckham

is undoubtedly the man to do it.”

-Bob Ivins, EVP of International Markets at comScore

Worldwide Unique Visitors (000)

Beckham sprains his knee and is sidelined for the next 11 games

Source: comScore Media Metrix, September 2007


Start of Premiership Season Sets Off Stampede of Traffic to Fantasy Football Sites in the UKStart of Premiership Season Sets Off Stampede of Traffic to Fantasy Football Sites in the UK

47.9% of the total time spent on these sites is from Monday through Friday occurring between 9:00am and 5:00pm.

47.9% of the total time spent on these sites is from Monday through Friday occurring between 9:00am and 5:00pm.

+135%

+90%

+54%

Total Worldwide Unique Visitors (000)

“Traditional fantasy football formats have established themselves extremely well on the Internet because they are the ultimate user participation platform in a Web 2.0 world. The immediacy of team statistics and injury

reports encourages fantasy managers to really engage with site content and pushes traffic to related pages on the host website.”

-Andrew Wainstein, Managing Director of Fantasyleague.com

“Traditional fantasy football formats have established themselves extremely well on the Internet because they are the ultimate user participation platform in a Web 2.0 world. The immediacy of team statistics and injury

reports encourages fantasy managers to really engage with site content and pushes traffic to related pages on the host website.”

-Andrew Wainstein, Managing Director of Fantasyleague.com



Obama Generates More Searches, but McCain Captures the Streaming CrowdObama Generates More Searches, but McCain Captures the Streaming Crowd

• The number of searches including the term “Obama” was approximately 4x that of “McCain”

• This likely reflects the public’s interest in Obama’s historic candidacy as well as the desire to find out more about this relative newcomer on the national political stage.

• The number of searches including the term “Obama” was approximately 4x that of “McCain”

• This likely reflects the public’s interest in Obama’s historic candidacy as well as the desire to find out more about this relative newcomer on the national political stage.


Average Monthly Searches (000)January 2008 – June 2008

Average Monthly UVs (000) and Videos (000)January 2008 – June 2008


Launch of Tech MetrixLaunch of Tech Metrix

Source: comScore Press Releases, August 1, 2007

• Track computer hardware configurations: system manufacturer, processor name/type, operating system, service pack, CPU, RAM, screen resolution, hard drive size

• Measure software usage: installed programs and version number, interactive duration, default browser and browser settings, number and size of data files, and multimedia file types

More hard drive space means more online gaming, music downloads, and picture slideshows

More hard drive space means more online gaming, music downloads, and picture slideshows

+6%

-6%


CBS Scores on the Web With March MadnessCBS Scores on the Web With March Madness

• Online viewers were more valuable than television viewers

• CBS made $4.83 in advertising for each of its 4.8M online viewers vs. only $4.12 for each of its 132M television viewers

• The price for an online ad is as much as 2x more expensive than a television ad per viewer

• Online viewers were more valuable than television viewers

• CBS made $4.83 in advertising for each of its 4.8M online viewers vs. only $4.12 for each of its 132M television viewers

• The price for an online ad is as much as 2x more expensive than a television ad per viewer

61

2003-2005

2006

2008No registration requirement; CBS made the game available from online rival ESPN.com and other Web sites

CBS began showing most of the games free online, but required viewers to register

*CBSSports.comSource: washingtonpost.com, April 17, 2008

“Our clients were willing to pay us [rates] for online that were equal to or higher than the TV. It's less about where the consumption takes place than what's being consumed. This was live exclusive

coverage of the NCAA tournament.”

-Rich Calacci, senior vice president of advertising sales for CBSSports.com

“Our clients were willing to pay us [rates] for online that were equal to or higher than the TV. It's less about where the consumption takes place than what's being consumed. This was live exclusive

coverage of the NCAA tournament.”

-Rich Calacci, senior vice president of advertising sales for CBSSports.com


Social NetworkingSocial Networking


Web 2.0 Enables Marketers to Reach and Present Content to Consumers in New Ways…Web 2.0 Enables Marketers to Reach and Present Content to Consumers in New Ways…

This next generation of Internet-based services that are content and/or technology driven enable people to collaborate and exchange information online in ways not previously available.


craigslistcraigslist

Social Networking & UGC ExplosionSocial Networking & UGC Explosion


How Companies are Using Web 2.0 Technologies….How Companies are Using Web 2.0 Technologies….

■ More than half say they are pleased with their investment over the past 5 years– Only 13% say they are disappointed

■ They view Web 2.0 technologies as strategic and 75% say they plan to maintain or increase their investment

■ Companies that acted quickly are more satisfied than late movers

Source: McKinsey 2007 Survey of 2,487 executives Worldwide, of whom 44% hold C-level positions


New customers, new markets

Customerservices

Customer-to-Businessesfeedback

Pharma

Financial Services

Telecomm

High Tech

Retail

70% of businesses using Web 2.0 technologies say they use them to

interact with customers

Here’s how they use them: % saying investment will increase

How Companies are Using Web 2.0 Technologies…(continued)How Companies are Using Web 2.0 Technologies…(continued)

Source: McKinsey 2007 Survey of 2,487 executives Worldwide, of whom 44% hold C-level positions


July 2007 July 2008 Mins/UV % Δ MinsMySpace 39 40 230 20%YouTube 25 39 116 86%Blogger 16 24 6 33%Facebook 17 21 164 13%Craigslist 13 18 87 43%Photobucket 13 12 25 -5%Flickr.com 7 10 7 20%Classmates.com 8 9 11 33%Shutterfly 3 2 18 -12%Slide 3 2 4 -59%


Social Networking Levels of EngagementSocial Networking Levels of Engagement

% UV Reach

Blogger and YouTube in particular have attained the highest % Reach gains within a yearBlogger and YouTube in particular have attained the highest % Reach gains within a year


“Top Friends” Ranks as Most Engaged Facebook Application“Top Friends” Ranks as Most Engaged Facebook Application

Top Web Widget Viewing Audiences*Unique Visitors (000)

Top Web Widget Viewing Audiences*Unique Visitors (000)

81%

32%

15%18%22%

22%

11% 9% 8%9%9%

Top Facebook ApplicationsEngaged Widget Viewers (000)

Top Facebook ApplicationsEngaged Widget Viewers (000)

Visitors between the ages of 18-24 were twice as likely as the average Facebook visitor to engage with

applications, while those aged 25 and older were less likely than average to exhibit this behavior

Visitors between the ages of 18-24 were twice as likely as the average Facebook visitor to engage with

applications, while those aged 25 and older were less likely than average to exhibit this behavior

8 out of every 10 Internet visitors viewed a widget in November

8 out of every 10 Internet visitors viewed a widget in November

*Facebook.com excluded from list due to different measurement methodology Source: comScore Press Release, January 24, 2008; comScore Widget Metrix, November 2007

# = Penetration of US Internet Audience


Facebook UVs (000)Facebook UVs (000)MySpace UVs (000)MySpace UVs (000)

Growth in Visitation to MySpace & Facebook

Facebook and MySpace have both enjoyed steady growth among the 18-24 age group.Facebook and MySpace have both enjoyed steady growth among the 18-24 age group.


Youth Flocking to Social Networking Sites

+16%

+19%

-15%

+15%



MySpace Trying to Retain Its Base of Exclusive Users

Cross Visitation of MySpace & Facebook18-24

Unique Visitors (MM)

16%

28%

12-17Unique Visitors (MM)

56%

23%

67%

10%33%

47%

19%

34%

48%

18%

=% of Total Facebook and MySpace Audience%

10.4

11.7 14.7

16.9

# = Total Unique Visitors (MM)

My Space Exclusively

Both Sites

Facebook Exclusively


What to advertise on Social Networking sites to 18-34 year olds?What to advertise on Social Networking sites to 18-34 year olds?

% Saying they would be receptive to advertising on User Generated Content Sites

Leisure Necessities



Social Networking Goes GlobalSocial Networking Goes Global

Worldwide Unique Visitors (000)

+14%

+139%

+76%

+43%

+30%

+61%

+21%

% Change

“Literally hundreds of millions of people around the world are visiting social networking sites each month and many are doing so on a daily basis. It would appear that social networking is not a fad but rather an activity that is being woven into the very fabric of the global Internet.” -Bob Ivins, EVP of International Markets at comScore

“Literally hundreds of millions of people around the world are visiting social networking sites each month and many are doing so on a daily basis. It would appear that social networking is not a fad but rather an activity that is being woven into the very fabric of the global Internet.” -Bob Ivins, EVP of International Markets at comScore


MySpace (58%) and Facebook (35%) attract large portions of their respective audiences from North America

MySpace (58%) and Facebook (35%) attract large portions of their respective audiences from North America

Bebo attracts 58% of its visitors from Europe, while Orkut is firmly entrenched in Latin America (55%) and Asia-Pacific (37%)

Bebo attracts 58% of its visitors from Europe, while Orkut is firmly entrenched in Latin America (55%) and Asia-Pacific (37%)

Friendster attracts a significant proportion of its visitors (89%) from the Asia-Pacific region

Friendster attracts a significant proportion of its visitors (89%) from the Asia-Pacific region



UVs (000) Average Daily UVs (000) Mins/UV Visits/UV

Webkinz 10,702 1,496 8 7

ClubPenguin 6,709 727 39 6

Stardoll 2,607 240 62 4

SecondLife 440 57 70 11

US Levels of Engagement in Virtual WorldsUS Levels of Engagement in Virtual Worlds


Club Penguin Has a Strong International PresenceClub Penguin Has a Strong International Presence

Club Penguin Worldwide UVs (000)

Europe

North America

Asia Pacific

Other

Over half of all users are outside of the United States

Over half of all users are outside of the United States

+15%

Club Penguin Worldwide UVs



Internet AdvertisingInternet Advertising


TV Still King of Advertising MediaTV Still King of Advertising Media

Where are you most likely to pay attention to/notice advertising for any product/service?

Source: comScore Marketing Solutions Ad Receptiveness Survey, Oct 31, 2006-Nov 10, 2006*UGC sites include Social Networking sites, blogs, etc…


Consumers Feel They Can Trust Information on TVConsumers Feel They Can Trust Information on TV

Where would you find trustworthy information for any product/service?



How do you feel seeing/hearing advertising for any product or service on UGC sites?…

Younger Demos Favor Ads on UGC SitesYounger Demos Favor Ads on UGC Sites


I am ReceptiveI am Receptive Advertising is UsefulAdvertising is UsefulAdvertising is Trustworthy

Advertising is Trustworthy


I am ReceptiveI am Receptive Advertising is UsefulAdvertising is UsefulAdvertising is Trustworthy

Advertising is Trustworthy

How do you feel about seeing/hearing Internet advertising for any product or service?…

Are Older Demos Just More “Web” Cynical?.... NopeAre Older Demos Just More “Web” Cynical?.... Nope

Source: comScore Marketing Solutions Ad Receptiveness Survey, Oct 31, 2006-Nov 10, 2006


BlogsBlogs User-Generated Content

User-Generated Content

Social Networking Sites

Social Networking Sites

Visitors of UGC Sites Skew Younger Than Non-VisitorsVisitors of UGC Sites Skew Younger Than Non-Visitors

Average age of visitors to the following site groupings


*UGC sites include Social Networking sites, blogs, etc…*Social Networking sites include myspace.com, facebook.com, etc…


Read blogsRead blogs Post comments on other people’s blogs

Post comments on other people’s blogs

Write/publish a post on your own blog

Write/publish a post on your own blog

18-34 Year Olds Exhibit Particularly High Blog Usage18-34 Year Olds Exhibit Particularly High Blog Usage

How often do you…

% Responding “At least once a week”



18-34 Year Olds Dominate Social Networks18-34 Year Olds Dominate Social Networks

How often do you use social networking sites to…

% Responding “At least once a week”

Source: comScore Marketing Solutions Ad Receptiveness Survey, Oct 31, 2006-Nov 10, 2006*Social Networking sites include myspace.com, facebook.com, etc…

Contact friendsContact friends Find/coordinate social events or make plans

Find/coordinate social events or make plans

Contact people you don’t know

Contact people you don’t know


What to advertise on UGC sites to 18-34 year olds?What to advertise on UGC sites to 18-34 year olds?

Where would you be receptive to advertising for the following products/services?18-34 year olds

High Fun High TrustSignificant Expenditure



“The power is with the consumer …. they are beginning in a very real sense to own our brands and participate in their creation …. we need to learn to begin to let go.”

A.G. LafleyCEOProcter & Gamble

The Consumer is in Control (Think UGC)….The Consumer is in Control (Think UGC)….

“Today, the customer is in charge … and whoever is best at putting the customer in charge makes all the money.”

Stephen F. QuinnSVP MarketingWal-Mart


The Long Tail ChallengeThe Long Tail Challenge

85

*As classified in the comScore Client Focus Dictionary** As of May 2008Source: comScore Marketing Solutions

• The Long Tail phenomenon creates a challenge for advertisers

• The number of internet domains climbs each year, furthering the reach of the long tail

• When looking beyond the top 10 properties, the market is extremely fragmented

• The Long Tail phenomenon creates a challenge for advertisers

• The number of internet domains climbs each year, furthering the reach of the long tail

• When looking beyond the top 10 properties, the market is extremely fragmented

Number of Properties Visited Each Month per UVNumber of Properties Visited Each Month per UV

Number of Domains (000)*Number of Domains (000)*

• The average visitor spends 78% of their time online each month at only 10 different sites, with 39% of their total time online being spent at only one site

• The average visitor spends 78% of their time online each month at only 10 different sites, with 39% of their total time online being spent at only one site


The Offline Impact of Online AdsThe Offline Impact of Online Ads

86

“Internet advertising stimulates off-line sales…online campaigns increase sales more at advertisers’ retail cash registers than on their websites. Data like that should embolden

executives to shift ever more dollars to online advertising.”

– Magid Abraham, CEO of comScore

“Internet advertising stimulates off-line sales…online campaigns increase sales more at advertisers’ retail cash registers than on their websites. Data like that should embolden

executives to shift ever more dollars to online advertising.”

– Magid Abraham, CEO of comScore

• People tend to respond—with their wallets—more to search ads than to display ads

• Search ads are generally more costly per impression than are display ads

• Using both types of ads in one campaign increases sales more than the two, added together, do in separate campaigns

• People tend to respond—with their wallets—more to search ads than to display ads

• Search ads are generally more costly per impression than are display ads

• Using both types of ads in one campaign increases sales more than the two, added together, do in separate campaigns

Source: Harvard Business Review, April 2008

Web Ads Boost In-Store Sales, TooWeb Ads Boost In-Store Sales, Too




Streaming Activity

Streaming Activity




WORLDWIDE CONTEXT

WORLDWIDE CONTEXT


In Q2 2008, Broadband Users:

– Spent 53% more online

– Were online for 5.4x as long

– Consumed 6.7x as many pages

– Visited the Internet 6.0x as often

Source: comScore Marketing Solutions, Q2 2008

Broadband Users are ValuableBroadband Users are Valuable


Source: comScore Video Metrix; Flash video format added in July 2006

*Streaming includes flash data starting July 2006

75% of Users Streamed in July 200875% of Users Streamed in July 2008

Total US Internet Users (MM)

% Internet Users who Streamed

In July 2008, 142.5 million people streamed- about 75% of all Internet usersIn July 2008, 142.5 million people streamed- about 75% of all Internet users


Streaming Video Already PervasiveStreaming Video Already Pervasive

■ Online viewers watched an average of 3.9 hours of online video during July 2008 (235 minutes)

■ The average online video duration was 2.9 minutes

■ Three-quarters (75%) of US Internet users viewed video online

■ The average online video viewer consumed 80 videos in July, or almost three per day

Source: comScore Video Metrix, July 2008


Online Video Viewing is Growing Strongly with Significant Growth PotentialOnline Video Viewing is Growing Strongly with Significant Growth Potential

Reach of elusive audiences

Better engagement

Scarcity. Online Video are often sold out.

However, monetization is still a big challenge:

User experienceRights for UGC (User Generated Content)

Value Drivers of Online Video Advertising

Source: comScore Video Metrix, August 2008, U.S. Only


Streaming Engagement by Time of DayStreaming Engagement by Time of Day

10am – 8pm video engagement represents an opportunity to leverage Internet video with traditional TV “primetime” 8pm- 11pm buy

10am – 8pm video engagement represents an opportunity to leverage Internet video with traditional TV “primetime” 8pm- 11pm buy

Daypart Share of US Home Video Consumption

Source: comScore Video Metrix, July 2008; Panel – comScore XPC

WeekdayWeekday WeekendWeekend


Males Are Slightly More EngagedMales Are Slightly More Engaged

Source: comScore Video Metrix, August 2008

Video Activity – By GenderVideo Activity – By Gender

+35%

+17%


While There are Similar Preferred Genres Between TV and Online By Streamers…While There are Similar Preferred Genres Between TV and Online By Streamers…

Preferred Genres for OnlinePreferred Genres for OnlinePreferred Genres for TVPreferred Genres for TV

■ News■ Sports news/updates■ Entertainment News■ Game shows■ Sports Events■ Music Videos

■ Music Videos■ News■ Sports Updates■ Entertainment news■ Comedy■ Instruction/Advice

Source: comScore / Media Contacts Custom Survey, January 2008


95

…Different Content is Being Viewed Online vs on TV…Different Content is Being Viewed Online vs on TV

Top Internet Streaming CategoriesTop Internet Streaming CategoriesTop TV GenresTop TV Genres

Favorite “Live” TV Genre ■ Sports Events■ Drama■ News■ Science Fiction■ Situation Comedy■ Talent/Reality

Internet Categories by Highest Reach■ Entertainment - Multimedia■ Portals■ Conversational Media■ TV■ XXX Adult■ News/Information

■ The type of content consumed online is not necessarily the same content that is most popular in viewing on TV

Confirms that streamers are using online video as a complement to television –not a replacement

Confirms that streamers are using online video as a complement to television –not a replacement



Streamers are Less Likely to View Full Show Content for Sports and Entertainment NewsStreamers are Less Likely to View Full Show Content for Sports and Entertainment News

Top Online Content for HighlightsTop Online Content for HighlightsTop Online Content for Full ShowTop Online Content for Full Show

■ Drama■ Feature Films■ Science Fiction■ Daytime Soaps■ Situation Comedy■ Game Shows

■ Sports news/updates■ Entertainment news■ Sports events■ News■ Instruction/Advice/Talk■ Animation/Cartoons

■ The most popular content for full length shows is significantly different than the most popular for abbreviated versions or “highlights.”

■ Streamers are viewing content more suited to highlights such as general, sports, and entertainment news while watching full length programming for TV shows and movies.



Streamers are Heavy Consumers of Both TV and the InternetStreamers are Heavy Consumers of Both TV and the Internet

Hours per Week Consuming MediaHours per Week Consuming Media

• 69% of streamers view TV for 7 or more hours per week

• 40% view TV for 13 or more hours per week

• Slightly less spend 7 or more hours per week on the Internet (56%)

1a. Using the scale below, please tell us on average, approximately how many hours per week you spend doing each of the following?



All Streamers are Not EqualAll Streamers are Not Equal

841 mins 77 minsAvg. Monthly Time

Streaming

Avg. Monthly Time

Streaming

Avg. Number of Videos Viewed

Avg. Number of Videos Viewed

% of Population

% of Population

Heavy Streamer Light StreamerMedium Streamer

6 mins

50 Videos247 Videos 8 Videos

20% 50%30%

87% 2%12%

72% 6%22%



Light Streaming Does Not Necessarily Mean Light Overall Media ConsumptionLight Streaming Does Not Necessarily Mean Light Overall Media Consumption

1. Using the scale below, please tell us on average, approximately how many hours per week you spend doing each of the following?

TVInternetMedia Consumption by

DurationMedia Consumption by

Duration

■ Heavy TV users are not the same as Heavy Streamers; Light Streamers are heavier TV consumers

■ All segments can be reached online; Light Streamers spend similar amounts of time online as the other segments


46%

39%

30%



Streaming is Represented Across All Demographic SegmentsStreaming is Represented Across All Demographic Segments

Total Internet Video Streaming Index to Total Internet

All Females 50% 50% 99All Males 50% 50% 101

Female: 18+ 41% 40% 99Female: 18-34 14% 14% 99Female: 25-49 22% 23% 101Female: 25-54 26% 27% 101Female: 55+ 8% 7% 92Male: 18+ 39% 40% 101Male: 18-34 13% 14% 107Male: 25-49 21% 22% 102Male: 25-54 25% 25% 101Male: 55+ 8% 8% 93Persons: 18+ 80% 80% 100Persons: 18-34 28% 28% 103Persons: 25-49 43% 44% 102Persons: 25-54 51% 52% 101Persons: 55+ 16% 15% 93


Streaming Engagement By Content CategoryStreaming Engagement By Content Category


Multimedia, which includes sites like YouTube and MTV, appears to be the most popular among streamers:

•Over 3 billion streams are served in the Multimedia category by almost 100 million streamers•Users are viewing these streams for almost 100 minutes each!

Multimedia, which includes sites like YouTube and MTV, appears to be the most popular among streamers:

•Over 3 billion streams are served in the Multimedia category by almost 100 million streamers•Users are viewing these streams for almost 100 minutes each!

Streamers (000)

Streamer Reach

Streams (000)

Streams/ Streamer

Minutes/ Streamer

Entertainment 112 79% 4,186 37 99

Multimedia 97 68% 3,158 33 92

TV 39 27% 414 11 28

Entertainment - Music 25 17% 190 8 20

Kids 28 20% 436 16 18

Entertainment - Movies 19 14% 61 3 4

Radio 15 11% 121 8 19

Humor 11 7% 53 5 9

Entertainment - News 5 4% 14 3 3

Portals 96 67% 1,059 11 16

Conversational Media 58 41% 468 8 11

Social Networking 57 40% 462 8 11

Retail 30 21% 124 4 22

News/Information 44 31% 256 6 11

General News 33 23% 183 6 10

Weather 8 5% 22 3 3

Sports 21 14% 139 7 12

Community 35 25% 416 12 17

Family 24 17% 350 14 16


Top Video Streaming Portal PropertiesTop Video Streaming Portal Properties


AOL LLC

• AOL News

• AOL Music

• Moviefone

• AOL Television

Streamers (MM)

Streamer Reach

Streams (MM)

Share of Streams

Streams/ Streamer

Minutes/ Streamer

Minutes/ Stream

Minutes (MM)

Total Internet 142,507 100% 11,425,890 100% 80.2 235.0 2.9 33,482

Yahoo! Sites 37,610 26% 269,452 2% 7.2 13.3 1.9 501

AOL LLC 22,959 16% 95,106 1% 4.1 4.3 1.0 99

Microsoft Sites 32,640 23% 282,748 2% 8.7 14.4 1.7 471

Microsoft Sites

• MSN Video

• MSNBC

• MSN Movies

• MSN Games

TOP CONTENT SITES:Yahoo! Sites

• Yahoo! Music

• Yahoo! News

• Yahoo! Movies

• Yahoo! Sports

Microsoft serves the highest number of streams, in addition to having the highest duration per userMicrosoft serves the highest number of streams, in addition to having the highest duration per user


Podcast Downloading Represented Across All DemographicsPodcast Downloading Represented Across All Demographics

Males make up 63% of the total podcast audience despite making up only half of the

total Internet audience.

Males make up 63% of the total podcast audience despite making up only half of the

total Internet audience.

35-54 year olds make up about half of the podcast audience despite conventional thinking that this market is dominated

by younger consumers

35-54 year olds make up about half of the podcast audience despite conventional thinking that this market is dominated

by younger consumers

Demographics of iTunes Podcast Audience


Male

Female

Index = 125

Index = 74

Total Podcast Audience Index

18-24 20325-34 6835-44 11345-54 10355-64 4165+ 29


Total Podcast Audience

Total Podcast Audience Index

HOUSEHOLD INCOME< $25,000 7% 78$25,000 - $50,000 16% 77$50,000 - $75,000 27% 95$75,000 - $100,000 19% 109> $100,000 31% 128

EDUCATION LEVELHigh School 25% 89Some College / Assoc Degree 28% 82College / Graduate Degree 47% 125

Potential for this new medium to attract significant advertising dollars


Podcast Downloading Skews to High Income and More Educated ConsumersPodcast Downloading Skews to High Income and More Educated Consumers

Many top podcasts are in the business and educational genres, which explains some of the appeal to the higher income and more educated segments

Many top podcasts are in the business and educational genres, which explains some of the appeal to the higher income and more educated segments


Online Radio Listening HabitsOnline Radio Listening Habits

Persons 12+, Monday-Sunday, 6am–MidnightAQH: The estimated number of people listening to an online radio station/network for a minimum of five minutes during an average fifteen

minute period of time during the reported daypart.CUME: The estimated number of unique people listening to an online radio station/network for a minimum of five minutes during the reported

daypart.Source: comScore Arbitron Online Radio Ratings, July

CBS Radio had the most listeners (over 2.1 million), and these users listened for over 13 hours a week on average

CBS Radio had the most listeners (over 2.1 million), and these users listened for over 13 hours a week on average

July 2008Average Weekly

AQH PersonAverage Weekly CUME Person

Average Weekly Time Spent Listening

Yahoo! Sites 113,200 1,207,200 11 hours, 49 minutesCBS Radio 224,400 2,108,100 13 hours, 25 minutesClear Channel 92,000 1,272,900 9 hours, 7 minutesLive 365 40,300 416,000 12 hours, 12 minutes


Radio and Online SpendingRadio and Online Spending

About 10 million people a month listen to online radio; this audience is valuableAbout 10 million people a month listen to online radio; this audience is valuable

• People who listen to Internet Radio tend to also spend more money online

• Radio listeners are 60% more likely to be online buyers.

• Radio listeners spend an average of $216 on other eCommerce products online every month!

• People who listen to Internet Radio tend to also spend more money online

• Radio listeners are 60% more likely to be online buyers.

• Radio listeners spend an average of $216 on other eCommerce products online every month!


% Who Shop Online(eCommerce Including Travel)

% Who Shop Online(eCommerce Including Travel)




Streaming Activity

Streaming Activity




WORLDWIDE CONTEXT

WORLDWIDE CONTEXT


eCommerce Continues Its Upward TrendeCommerce Continues Its Upward Trend

■ Total 2008 online spending through July at US sites was $124.0 billion, up 11% from the same period in 2007– Travel spending through July 2008 totaled $52.2 billion, up 11% from the

same period in 2007– Online non-travel (retail) spending through July 2008 totaled $71.8 billion,

an increase of 11% from the same period in 2007

■ Buyers increased 7% from July 2007 to July 2008

■ Dollars / Buyer increased 1% from July 2007 to July 2008



$72 Total

$93 Total

$117 Total

$143 Total

Non-Travel

Travel

+29%

+26%

+22%

+20%

26%

33%

26%

26%

20%

24%

24%

13%

$171 Total

$200 Total+17%

21%

12%

Online Consumer Dollar Sales GrowthExcluding Auctions, Autos and Managed Travel ($Billions)

12%

11%

+12%

E-commerce Sales Through Q2 2008 Posted a 12% Gain Versus the Same Period Last YearE-commerce Sales Through Q2 2008 Posted a 12% Gain Versus the Same Period Last Year

109


US Retail E-Commerce Grows 9% versus Last Year US Retail E-Commerce Grows 9% versus Last Year

Highest-Growth Retail Categories in Total Dollars Spent Year Over Year

July 2007 vs. July 2008

E-Commerce Growth in Total Dollars Spent Year Over Year

July 2007 vs. July 2008

Source: comScore Marketing Solutions, eCommerce WW data on US sites

Top Product Categories, by DollarsNon-Travel (Retail) Spending

July 2007 July 2008

Computers & Peripherals Computers & Peripherals

Apparel & Accessories Apparel & Accessories

Office Supplies Event Tickets

Consumer Packaged Goods

Consumer Packaged Goods

Consumer Electronics Office Supplies

Event Tickets Furniture & Appliances

Furniture & Appliances Consumer Electronics

Books & Magazines Books & Magazines

Home & Garden Home & Garden

Music, Movies & Videos Computer Software


Transactions in the comScore Database…

High Ticket Items: Sky’s the LimitHigh Ticket Items: Sky’s the Limit


HOME FURNITUREPanelist Domain Product Category Price Product NameABCDEF walmart.com Home Furniture $1,600 Virginia Highlands Country Oak 7-piece Bedroom Set, KingBCDEFA yahoo.com Home Furniture $900 Corbeau Racing Seat- CR1 (pair of seats)CDEFAB samsclub.com Home Furniture $700 Serta Wisteria Plush Mattress Set- QueenDEFABC officemax.com Home Furniture $700 Quartet Dry-Erase Magnetic Conference Room CabinetEFABCD sharperimage.com Home Furniture $700 Ijoy Turbo 2 Robotic Massage ChairFABCDE overstock.com Home Furniture $600 Spring Air Pillowtop Mattress Set (Queen)

JEWELRY & WATCHESPanelist Domain Product Category Price Product NameGHIJKL bluenile.com Jewelry & Watches $6,850 Platinum Setting With Princess-Cut Diamond Accents (over 1/4 ct. tw.)HIJKLG bluenile.com Jewelry & Watches $3,950 Platinum Three-Stone Oval Fancy-Yellow Diamond Ring (1 ct. tw.)IJKLGH shopnbc.com Jewelry & Watches $4,800 14K WG OR YG Diamond Flex Threerow RingJKLGHI overstock.com Jewelry & Watches $1,600 14-KT. Gold and Diamond Tennis Bracelet (5.0 TDW)KLGHIJ yahoo.com Jewelry & Watches $1,000 Tag Heuer New Link Ladies Watch W J1310.BA0571LGHIJK amazon.com Jewelry & Watches $250 14K Satin/Polished White Gold .20CT Diamond Engagement Ring Size: 8

MISCPanelist Domain Product Category Price Product NameMNOPQR bestbuy.com Audio & Video Equipment $4,000 Sampo- 50" Widescreen HD-Ready Plasma TV W/ DVI & PC InputsNOPQRM dell.com Desktop Computers $3,800 Dimension XPS Pentium 4 Processor With HT Technology 3.4 GHZOPQRMN sears.com Audio & Video Equipment $3,500 Samsung TelevisionPQRMNO hsn.com Audio & Video Equipment $2,000 Gateway 30" HDTV Ready Color LCD TV With Stand and RemoteQRMNOP expedia.com Travel Packages $1,450 Travel PackageRMNOPQ theshoppingchannel.com Sport & Fitness $1,200 Bowflex Xtreme XTLU W/I Trainer Software & Ball


Top Online Product Categories By Average Order ValueTop Online Product Categories By Average Order Value

Average Order Value ($/Transaction)July 2008

*Excludes Auctions and Large Corporate PurchasesSource: comScore Marketing Solutions, eCommerce WW data on US sites


Source: comScore Marketing Solutions, September 2007

Whistle (and Buy Online) While We WorkWhistle (and Buy Online) While We Work

Consumers using the Internet at work accounted for 34% of all online non-travel spending, a sharp drop from a level of 58% in November 2005 driven by the substantial increase in the number of home

high speed Internet connections (+18% over the past year).

Consumers using the Internet at work accounted for 34% of all online non-travel spending, a sharp drop from a level of 58% in November 2005 driven by the substantial increase in the number of home

high speed Internet connections (+18% over the past year).

% of US Online Consumer Spending by Hour of DayAligned to Local Time

0%

2%

4%

6%

8%

10%

12%

14%

12-1

AM1-2

AM

2-3 A

M3-4

AM

4-5 A

M5-6

AM

6-7 A

M7-8

AM

8-9 A

M9-1

0 AM

10-11

AM

11-12

AM

12-1

PM1-2

PM2-3

PM3-4

PM4-5

PM5-6

PM6-7

PM7-8

PM8-9

PM9-1

0 PM

10-11

PM11

-12 PM

WORK HOME SCHOOL


Q3 eCommerce Spending By LocationQ3 eCommerce Spending By Location

As broadband connectivity rises at home and at work, online spending continues to grow.

As broadband connectivity rises at home and at work, online spending continues to grow.

Dollar Sales ($BN) spent by locationQ3 2007 vs. Q3 2008

*Excludes Auctions and Large Corporate Purchases

+6%+12%

Source: comScore Marketing Solutions, eCommerce US data


2007 Online Holiday Shopping Season Surpasses $29 Billion In Sales, Up 19% Versus Year Ago2007 Online Holiday Shopping Season Surpasses $29 Billion In Sales, Up 19% Versus Year Ago

2007 vs. 2006 Full Holiday SeasonRetail Dollars Spent (Millions)

2007 vs. 2006 Full Holiday SeasonRetail Dollars Spent (Millions)

Top 10 Online Spending Days of 2007 Holiday SeasonRetail Dollars Spent (Millions)

Top 10 Online Spending Days of 2007 Holiday SeasonRetail Dollars Spent (Millions)

This year, there were 32 days between Thanksgiving and Christmas, compared to 31 days last year. During this period in 2007, online sales grew by 21% versus year ago, a

full 2 percentage points higher than the overall holiday season-to-date growth rate.

This year, there were 32 days between Thanksgiving and Christmas, compared to 31 days last year. During this period in 2007, online sales grew by 21% versus year ago, a

full 2 percentage points higher than the overall holiday season-to-date growth rate.

+29%

+33%+21%

+22%

Source: comScore Press Release, December 30, 2007


Average Order Value +2.1% vs. 2007

Average Order Value +6.6% vs. 2007

Retailer Dollar Share by Channel Type

Multi-Channel Retailers Gain Share and Post Higher Order ValuesMulti-Channel Retailers Gain Share and Post Higher Order Values

Source: comScore Marketing Solutions, eCommerce US data


Top Pure-Play and Multi-Channel Retail SitesTop Pure-Play and Multi-Channel Retail Sites

US Visitor Change (MM) July 2007- July 2008


0%-7% +7%

-10%+5%

-14%

+14%

-12%

Multi-Channel

Pure-Play

+14%+20%

-39%

+20%

+7%

-18%

+34%+4% +4% +6% -9%


Growth in Online Auto Insurance Activities 2006 vs. 2005

Growth in Online Auto Insurance Activities 2006 vs. 2005

Growth in Auto Insurance Purchases OnlineGrowth in Auto Insurance Purchases Online

Quotes Submitted

Policies Purchased

Source: comScore Marketing Solutions, Press Release April 12, 2007Survey: March 1-8, 2007; 2,043 US online consumers

• 2006 represented a tipping point in the adoption of the Internet for purchasing auto insurance policies

• 70mm insurance quotes were submitted between 2004 and 2006

• In 2006, the number of policies purchased online increased 58% vs 2005, while insurance quotes only increased 15%

• 65% of consumers claim that they would consider purchasing their next auto insurance policy online, per a recent comScore survey


“The Role of Search in Consumer Buying”2006 comScore Study with Google“The Role of Search in Consumer Buying”2006 comScore Study with Google

Source: Google/comScore “The Role of Search in Consumer Buying” Press Release, March 21, 2006; based on holiday-related purchases completed online and offline across 11 product categories for 60 days post-search

Direct Online Effects 16%

Latent Offline Effects 63%

Latent Online Effects 21%

The Three Components of How Search Drives Buying

119


Non-Buyers

Buyers

Offline

Online

Subsequent

Same

Source: Overture/comScore “Impact of Search Engine Usage on Consumer Buying” Press Release, December 2004; based on Consumer Electronics/Computer searchers

The Influence of Search: Consumer Electronics

Search Converts, Often with a Halo EffectSearch Converts, Often with a Halo Effect

Study Design:

• Tracked online buying behavior of Internet users that comScore observed conducting a Computers/Consumer Electronics search for 90 days post-search

• Surveyed searchers to measure offline impact

Key findings:

• High buyer conversion from search (25%)

• Among the online converters, 85% purchased in a subsequent user session (“latency effect”)

• Vast majority (92%) of search-to-purchase conversion occurred offline


Source: Overture/comScore “Impact of Search Engine Usage on Consumer Buying” Press Release, December 2004; based on Consumer Electronics/Computer searchers

Specific

Branded

Generic

Search Term Preferences

Generic Search Terms Dominate & ConvertGeneric Search Terms Dominate & Convert


Importance of Search in Influencing Offline BuyingImportance of Search in Influencing Offline Buying

Video Games & ConsolesVideo Games & Consoles

Music / Movies / VideosMusic / Movies / Videos

Average, All CategoriesAverage, All Categories

Non-Buyers

Buyers

Offline

Online

Subsequent

Same

Source: Google/comScore “The Role of Search in Consumer Buying” Press Release, March 21, 2006; based on holiday-related purchases completed online and offline across 11 product categories

Study Design:

• Tracked online buying behavior of Internet users that comScore observed conducting a search for 60 days post-search

• Surveyed searchers to measure offline impact

Key findings:

• High buyer conversion from search (25%) for all categories

• Of these buyers, 37% completed their purchase online

• Among the online converters, majority (56%) purchased in a subsequent user session (“latency effect”)

Non-Buyers

Buyers

Offline

Online

Subsequent

Same

Non-Buyers

Buyers

Offline

Online

Subsequent

Same


Online Advertising Can Fuel In-Store SalesOnline Advertising Can Fuel In-Store Sales

Source: comScore Press Releases, July 30, 2007

Online

Offline

In-store

Online

Only 7% of all retail sales take place online, despite the fact that 89% of consumers research purchases online

Only 7% of all retail sales take place online, despite the fact that 89% of consumers research purchases online

• When consumers were exposed to online advertising, they were more engaged, viewing an average of 6 more pages during their online session

• Consumers exposed to advertising online were more likely to research online before purchase, and ultimately spent 41% more in-store than consumers who were not exposed

• When consumers were exposed to online advertising, they were more engaged, viewing an average of 6 more pages during their online session

• Consumers exposed to advertising online were more likely to research online before purchase, and ultimately spent 41% more in-store than consumers who were not exposed

Research Online vs. Purchases Online Retailers should focus on targeting those consumers who look for

information online before purchasing


Amount Consumers are Willing to Spend for 5-Star Service

Amount Consumers are Willing to Spend for 5-Star Service

Percent of Review Users Identifying Review as Having a Significant Influence on their

Purchase*

Percent of Review Users Identifying Review as Having a Significant Influence on their

Purchase*

Online Consumer-Generated Reviews Have Significant Impact on Offline Purchase Behavior Online Consumer-Generated Reviews Have Significant Impact on Offline Purchase Behavior

97% of those surveyed who said they made a purchase based on an online review said they found the review to

have been accurate

97% of those surveyed who said they made a purchase based on an online review said they found the review to

have been accurate

Review users also noted that reviews generated by fellow consumers had a greater influence than those

generated by professionals

Review users also noted that reviews generated by fellow consumers had a greater influence than those

generated by professionals

* Based on responses indicating at least 4 on a 5 point scaleSource: comScore Press Release, November 29, 2007

24% of Internet users reported using online reviews prior to paying for a service delivered offline

24% of Internet users reported using online reviews prior to paying for a service delivered offline

Consumers were willing to pay at least 20% more for services receiving an “Excellent” (5-star), rating than for

the same service receiving a “Good” (4-star), rating

Consumers were willing to pay at least 20% more for services receiving an “Excellent” (5-star), rating than for

the same service receiving a “Good” (4-star), rating




Streaming Activity

Streaming Activity




WORLDWIDE CONTEXT

WORLDWIDE CONTEXT


■ qSearch 2.0: Top Worldwide Search Properties– Total searches at 17.2 billion in July 2008, up 25% versus one year ago– Search growth driven both by intensity growth, up 19% year-over-year and unique searcher growth, at 194MM and

up 5% in the same time frame

■ Search Engines– Google, Yahoo!, and Ask see solid search growth within the search engine space versus one year ago– Google tops both searchers and search intensity, showing 14% and 32% respective year-over-year growth

■ Non-Search Engines– Fox Interactive Media leads with 547MM searches and 52MM searchers in July 2008– craigslist, inc. has highest search intensity with 16.6 searches per searcher and shows strong growth in both

searches and searchers

■ Click Performance– Organic Clicks lead click growth, up 26% versus one year ago and topping 9.4 billion– Despite purposely decreasing coverage, Google has the most paid clicks with 609MM in July 2008; Yahoo has

highest coverage, with 69% of searches with a paid ad; Ask has the highest portion (24%) of total clicks coming from paid clicks

■ Search Types– Of toolbar, partner, and auto and search-box search types, toolbar leads with 1.9 billion searches – up 27% versus

one year ago– Auto and search-box search shows strongest search growth, driven by increasing penetration and intensity

Key Highlights & TrendsJuly 2008 - US MarketKey Highlights & TrendsJuly 2008 - US Market

Source: comScore qSearch 2.0 Total US Internet Searchers


qSearch 2.0: Top Worldwide Search Properties Total US SearchesqSearch 2.0: Top Worldwide Search Properties Total US Searches

■Total searches are up 25% versus one year ago, with growth from search engines outpacing non-search engines

Searches (Billions)Searches (Billions)


+25%

+19%

+26%

Search Engines

Non-Search Engines

Total Searches Change vs. Jul-07


20% of Online Search Population Makes Up 65% of Searches, 65% of Result Pages, and 53% of Visits20% of Online Search Population Makes Up 65% of Searches, 65% of Result Pages, and 53% of Visits

Heavy Searchers

Medium Searchers

Light Searchers

Unique Searchers, Searches, Search Result Pages and Visits

Source: comScore qSearch 2.0, July 2008


■Organic clicks lead click growth, up 26% versus one year ago

Clicks (Billions)Clicks (Billions)


+25%

+11%

+26%

Change vs. Jul-07

qSearch ClickTotal Clicks GrowthqSearch ClickTotal Clicks Growth

Paid Clicks

Organic Clicks

Total Clicks


Click Thru Composition – July 2008


Google’s Market Capitalization is Driven by 9% of Its Total Click ActivityGoogle’s Market Capitalization is Driven by 9% of Its Total Click Activity

18%

9%

12%11%


Searches (MM) by Search TypeSearches (MM) by Search Type

Growth by Search TypeGrowth by Search Type

■ Auto and search-box searches growth is strong at 81% versus July 2007, but remain a small portion of total activity

■ Other search types also show strong year-over-year search growth

+22%

+25%

+81%

+27%

Change vs. Jul-07


Auto and Search-Box SearchesToolbar SearchesAll Other Searches

Total Internet Searches

13,692

17,158


e-Commerce Sites Are The Most Frequent Users of Search Engine Marketing e-Commerce Sites Are The Most Frequent Users of Search Engine Marketing

Source: comScore Press Release, June 5, 2007

Top retail sites are willing to pay top dollar for premium placement at major search engines, especially given that retail e-commerce is a $100 billion per year industry

53.8% of all Google Web Search click-thrus went to retail sites, while only 27.2% of Yahoo! Web Search, 10.4% of MSN Web Search, 5.8% of AOL Search, and 1.6% of Ask.com click-thrus went to retail sites

Top retail sites are willing to pay top dollar for premium placement at major search engines, especially given that retail e-commerce is a $100 billion per year industry

53.8% of all Google Web Search click-thrus went to retail sites, while only 27.2% of Yahoo! Web Search, 10.4% of MSN Web Search, 5.8% of AOL Search, and 1.6% of Ask.com click-thrus went to retail sites

Sponsored Link Exposures (000)

Share of Sponsored Link Exposures

Total Internet 19,762,951 100%1 eBay.com 801,744 4.1%2 Smarter.com 365,766 1.9%3 Shopping.com 357,012 1.8%4 Bizrate.com 297,649 1.5%5 Amazon.com 284,328 1.4%6 Dealtime.com 283,574 1.4%7 Shopzilla.com 245,398 1.2%8 Target.com 202,482 1.0%

9 Nextag.com 163,220 0.8%10 Shop.com 123,009 0.6%

Top 10 Sites 3,119,182 16%

The top 10 paid search advertisers are all retail or

comparison shopping sites


Source: comScore “Evolution of the Multi-Channel Consumer”, February 2005

Q: When you shop via the Internet, where do you typically start the process?

Comparative Influence of SearchComparative Influence of Search


Search Intensity and ConversionSearch Intensity and Conversion

Total Category Searches (MM)

Online Conversion

Searches Per Searcher

Searches Per Buyer

All Categories 552.5 10.4% 6.7 65.1

Home & Garden 121.0 4.4% 3.1 70.2Consumer Electronics 74.3 2.8% 2.5 88.0Music, Movies, Video 66.6 4.7% 2.8 59.0

Toys & Hobbies 59.5 5.2% 2.4 46.2Apparel & Accessories 40.8 15.0% 2.3 15.4

Source: comScore Marketing Solutions, “The Role of Search in Consumer Buying”, March 2006

About one out of ten product category searches result in an online saleAbout one out of ten product category searches result in an online sale


Buyer Conversion SummaryBuyer Conversion Summary

Source: comScore Marketing Solutions, “The Role of Search in Consumer Buying”, March 2006

One-quarter of all product-related searches result in the purchase of that product, 63% of these are converted offline versus 37% online

One-quarter of all product-related searches result in the purchase of that product, 63% of these are converted offline versus 37% online

Buyer Conversion

% of Buyers Converting

Offline

% of Buyers Converting

Online

Average, All Categories 25% 63% 37%Apparel & Accessories 43% 65% 35%Toys & Hobbies 42% 88% 12%Music/Movies/Videos 28% 83% 17%Consumer Electronics 18% 84% 16%Video Games & Consoles 17% 93% 7%Jewelry & Watches 15% 75% 25%


Search Marketing Vital for Brand Building and Driving Offline Sales for Consumer Packaged Goods Companies Search Marketing Vital for Brand Building and Driving Offline Sales for Consumer Packaged Goods Companies

Motivation for Visiting the CPG Site SearchersNon-SearchersInformation & Help 73% 58%Find more information about products 48% 36%

Learn about new products 44% 38%Compare competitive products 26% 10%Consumer and professional reviews 21% 10%

Purchase Decision 64% 44%Help me make a purchase decision 40% 28%Get/compare products 36% 23%Find where to buy/local places 31% 15%

Promotion 47% 59%Find out about special offers 40% 47%

See official company website 29% 22%

“Search may be one of the most effective means of reaching qualified consumers when and where they are most receptive to learning about our brands. Ultimately this drives offline sales.”-Randy Peterson, Search Innovation Manager

from Procter & Gamble

“Search may be one of the most effective means of reaching qualified consumers when and where they are most receptive to learning about our brands. Ultimately this drives offline sales.”-Randy Peterson, Search Innovation Manager

from Procter & Gamble

CPG Sites’ Unique Visitors: Searchers vs. Non-Searchers


CPG Product Category Spending: Searchers vs. Non-Searchers

113 270 33567

# =Index of Searchers to Non-Searchers


+16%

+82%

+119%

Display OnlySearch OnlySearch & Display

137

Search + Display Ad Effectiveness Results:comScore Norms for Offline Sales LiftSearch + Display Ad Effectiveness Results:comScore Norms for Offline Sales Lift

Incremental Impact On Offline $’s

Search ads generate a greater lift in offline sales, but have a far lower reach and cost substantially more than Display ads

Display OnlySearch OnlySearch & Display

TestControl

Offline $$ Per (000) Exposed

11%

8% 80%

% of All Exposed Users



70% of web users say they watch TV occasionally to regularly while they surf

– BIGresearch's Simultaneous Media Survey July 2006

Today’s Challenge: Effective Marketing in a “Media Multi-Tasking” WorldToday’s Challenge: Effective Marketing in a “Media Multi-Tasking” World


Thank You!Thank You!

NAMESTITLEScomScore, Inc.TELEMAIL

Documents

State of the Internet - July 2008