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THE 2012 DIGITAL FUTURE IN FOCUS

Key Insights rom 2011 and What They Mean or the Coming Year

U.S.

Key Insights from 2011 and What They Mean for the Coming Year

February 2012


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Contents

Executive Summary

Top Web Destinations

Social Networking

Search

Online VideoDigital Advertising

Mobile

E-Commerce

Conclusion

About comScore

Methodology and Denitions

4

6

9

11

1418

22

26

30

35

36


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FACEBOOK-LED SOCIAL MEDIA MARKET ISREDEFINING COMMUNICATION IN THE DIGITAL AND

PHYSICAL WORLDS

Social networking continues to amass online users andcapture an increasing share o their time, redening howpeople interact with their personal social circles and brandsin both the online and ofine environments. Social Networking accounted or 16.6 percent o all online minutes at theend o 2011 and is on track to surpass Portals as the mostengaging online activity in 2012. Facebook continues to leadas the driving orce behind this shit in consumer behavior

accounting or the largest share o online minutes across theentire web in 2011.

BING GAINS GROUND IN SEARCH

Although Google maintains a strong lead in the U.S. searchmarket, the most notable story in search this year was Bingspositive growth trajectory. Bing closed out the year bysurpassing Yahoo! or the #2 position among core searchengines or the rst time in its history, bolstered in part byits social search partnership with Facebook implemented inearly 2011. While Google still owns twothirds o the searchmarket, Bing has captured 15 percent o the market on itsown and is powering about that same percentage on behalo Yahoo!.

ONLINE VIDEO BOOM SIGNALS SEA CHANGE INVIDEO ECOSYSTEM

Online video viewing witnessed impressive gains across avariety o measures in 2011, signaling a behavioral shit inhow Americans are consuming video content. The increasingavailability and adoption o longorm video content hasdriven a dramatic increase in video viewing as consumersexercise their reedom to watch available content however,whenever and wherever they want. More than 100 millionAmericans watched online video content on an average dayto close out 2011, representing a 43percent increase

versus year ago. In addition to more daily viewers, thenumber o video streams jumped 44 percent to 43.5 billion inDecember 2011.

DIGITAL ADVERTISING ENTERS ERA OF

INCREASED ACCOUNTABILITY AS BRAND

DOLLARS CONTINUE TO SHIFT ONLINEA staggering 4.8 trillion display ad impressions were deliveredacross the U.S. web in 2011 as brand advertisers continuedto shit dollars to the digital medium. This shit in ad dollars hasmagnied the need or greater transparency and accountabilityin ad delivery across the digital advertising ecosystem,heralding in an era where digital campaign validation becomesa necessity to push digital ad dollars to the next level.

Executive Summary


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SMARTPHONE AND TABLETS FUEL THE RISE OFTHE DIGITAL OMNIVORE

The rise o smartphones and tablets has drastically alteredconsumers digital media consumption changing the waypeople access content, where they consume it and therequency o consumption. This evolution o digital deviceinteraction has given rise to an age o digital omnivores consumers who access content through several touchpoints during the course o their daily digital lives. In 2011,the majority o all mobile phone owners consumed mobilemedia on their device, marking an important milestone in the

evolution o mobile rom primarily a communication device toa content consumption tool. At the end o 2011, more than 8percent o all digital trac was consumed beyond the classicweb across devices such as smartphones and tablets.

E-COMMERCE IS BACK AND BIGGER THAN EVERDespite the backdrop o continued economic uncertainty,2011 was a strong year or retail ecommerce. Throughoutthe year, growth rates versus the prior year remained indoubledigits to signicantly outpace growth at brickandmortar retail. Consumers remained cautious spenders overall,but increasingly turned to digital commerce due to twoprevailing actors: price and convenience. Total U.S. retail andtravelrelated ecommerce reached $256 billion in 2011, up12 percent rom 2010.

EXECUTIVESUMMARY


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Traditional portalsare conceding

ground to Facebookand other social

networks

Though Google Sites remained the most visited U.S. webproperty in the U.S. with 187 million visitors in December2011, Facebook continues to extend its lead as the mostengaging web property, accounting or 14.6 percent o alltime spent online to conclude the year. Google Sites, whichis bolstered by its inclusion o YouTube, ranked secondin terms o time spent at 10.8 percent, while Yahoo! Sitescommanded the third position at 8.6 percent. The shitsin engagement among the top content properties suggestuser trends moving away rom traditional portal content inavor o social networking and entertainment content.

GOOGLE OWNS LARGEST AUDIENCE,BUT FACEBOOK LEADS IN ENGAGEMENT

Share o Total Time Spent on Internet at Top Web PropertiesSource: comScore Media Metrix, Dec-2010 to Dec-2011, U.S.

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

FACEBOOK.COM GOOGLE SITES YAHOO! SITES

MICROSOFT SITES AOL, INC.

Top Web Destinations

DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

20112010


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PORTALS

SOCIAL NETWORKING

ENTERTAINMENT

E-MAIL

NEWS/INFORMATION

RETAIL

COMMUNITY

GAMES

Despite the overall maturity o the U.S. web market, onlineconsumer behavior patterns continue to evolve and shitover time. The web has slowly transormed rom a primarilyinormationseeking, unctional medium to one that is moreoriented toward entertainment and leisure content. Oneo the key shits in audience behavior has been decliningengagement with portals and the rising engagement withsocial networks. Traditional Portals, such as Yahoo!, MSNand AOL, are conceding ground to Facebook and other

social networks, which have increasingly become thestarting point or many Americans online, while the keydrivers o traditional Portal engagement including email,instant messengers and homepages continue to seeengagement declines. As o December, Portals represented16.7 percent o time spent online while Social Networkingwas just a raction o a percentage point behind at 16.6percent. I current trends continue, Social Networking willsoon declare its supremacy over Portals. The Entertainmentcategory, which includes TV and music content, video sites

and entertainment news, is also gaining market share andcurrently accounts or 13 percent o time spent. Meanwhile,webbased emails market share slipped below 10 percentor the rst time.

Among the categories experiencing the greatest overalldeclines in time spent online are Instant Messengers down40 percent, Online Personals down 26 percent, Weatherdown 23 percent and Job Search down 21 percent.Instant Messengers and Online Personals continue to losetraction as consumers shit to alternate communicationchannels, including social media and mobile. Weather, in

particular, is in the midst o a channel shit as consumers

increasingly rely on their mobile devices to get weatherinormation. Job Search sites, meanwhile, are coming downrom the peaks that occurred during 2009 and 2010 whenU.S. unemployment was well above 9 percent. Job Searchis also another category that is witnessing opposite trendsin the classic web and mobile channels with Job Listingsleading as one o the topgaining mobile content categoriesor 2011 with a 74percent gain in mobile audience. Assmartphone adoption continues to climb, 2012 will seemobile urther infuence digital content consumption as thesedevices change how, where and even why consumers goonline.

SOCIAL NETWORKING ON THE HEELS OF PORTALSFOR ENGAGEMENT LEADTOP WEB

DESTINATIONS

20%

15%

10%

5%

0%

Share o Total Time Spent on Internet at Top Web PropertiesSource: comScore Media Metrix, Dec-2010 to Dec-2011, U.S.


20112010


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Percent Change in Time Spent Using WebBased EmailSource: comScore Media Metrix, Dec-2011 vs. Dec-2010, U.S.

20%

10%

0%

10%

20%

30%

-31%

-34%

0% -1%

15%

-7%

4%

40%

AGE

1217 1824 2534 3544 4554 5564 65+

One o the more signicant trends in online communicationsis usage attrition in webbased email services as consumersshit to social media and alternate communication channels.The most notable declines in webmail engagement havebeen occurring among teens age 1217 down 31 percentand 1824 year olds down 34 percent.. While thesignicant decline among teens represents a continuationo a similar trend observed last year, that 1824 year oldsare now moving away rom webmail suggests a larger andmore permanent shit in email usage may be occurring. Parto this shit is attributable to the rising role o mobile devicesin consumers digital lives, which is directly impacting howpeople engage with the classic web. The mobile emailaudience or both age segments saw doubledigit growth inthe past year, with mobile email users age 1824 climbing32 percent.

CONTINUED DECLINES IN WEB-BASED EMAIL USAGESIGNAL SHIFT IN CLASSIC WEB CONSUMPTIONTOP WEB

DESTINATIONS


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Social Networking continued to gain momentum in 2011,as 9 out o every 10 U.S. Internet users visited a socialnetworking site in a month. Social Networking now accountsor approximately 1 out o every 6 minutes spent online, withFacebook accounting or the lions share o that engagement.

The worlds most popular social networking site, which ledor its IPO on February 1, continued to gain visitors despitealready reaching nearly 3 out o every 4 U.S. Internet users.Its more signicant growth trend, however, was not in usergrowth but in average user engagement, which jumped 32percent in the past year to just over 7 hours per visitor inDecember. Facebook now accounts or 15 percent o alltime spent online and 16 percent o all page views.

SOCIAL NETWORKING CONTINUES GROWTH IN 2011 AS ONE OF THE WEBS TOP ACTIVITIESSocial networkingnow accounts or

approximately 1 outo every 6 minutes

spent online

Social Networking

FACEBOOK OTHER SOCIAL NETWORKING SITES

J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D


2008 2009 2010 2011

20112010

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

Facebooks Share o Total Time Spent OnlineSource: comScore Media Metrix, Jun-2008 to Dec-2011, U.S.

Beyond Facebooks dominance in the social networkingmarket, several interesting stories emerged among thesecond tier players. Myspace nally gave up its hold onthe #2 position to LinkedIn in June, which was ollowed byTwitter and LinkedIn battling back and orth or that positionduring the second hal o the year. By December, Twitterboasted the #2 spot in the category with 37.5 million uniquevisitors, while LinkedIn held the #3 position with 33.5million. Myspace is still managing to hold onto the ourth

position with just over 24 million visitors, though a coupleo upstarts are beginning to nip at its heels.

TWITTER.COM LINKEDIN.COM MYSPACE

GOOGLE PLUS TUMBLR.COM PINTEREST.COM

60,000

50,000

40,000

30,000

20,000

10,000

0

Visitors (000) to Selected Social Networking SitesSource: comScore Media Metrix, Dec-2010 to Dec-2011, U.S.


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423

151

80

25

15

13

5

Perhaps the most closely watched story in the socialnetworking space this year was the June launch oGoogle+. With only about a hal year in existence thus ar,Google+ had already reached 20.7 million U.S. visitorsin December. Clearly Googles big social play is alreadymaking its presence elt among the larger players in thespace and will look to jump ahead o Myspace in thecoming months. Not ar behind Google+ is Tumblr with18.8 million visitors. Ater years o slowly but steadilybuilding traction within a core group o ollowers, 2011marked a year in which Tumblrs audience moved beyond

innovators into the early adopter user set. The servicespopular tumblogs, which have become an Internet mainstayor people with specic interests, oten eature unny orirreverent content. The critical test or Tumblr will come as itattempts to cross the chasm into the early majority and pushits U.S. web penetration beyond 10 percent o the market.Another 2011 upstart worthy o mention is Pinterest, whichhas amassed an impressive audience o nearly 8 millionvisitors ater barely registering on comScores radar in themiddle o the year. Deying the traditional prole o techinnovators, which tend to be 1834 year old males livingon the coasts, Pinterest has actually gained early tractionamong young adult and middleaged women living in centralregions o the country.

Where both Pinterest and Tumblr have also excelled is ingenerating strong visitor engagement. While Facebookexemplies heavy visitor engagement with an average o7 hours per visitor each month, Pinterest and Tumblr arethe only two other sites that attract at least one hour oengagement per visitor on their primary webbased accesspoints, though it should be noted that other social networks

such as Twitter and Google+ may see a signicantportion o their users engagement occur via mobile access,thirdparty apps and/or distributed content.

Pinterests early success has the digital world watchingintently as new trends in social behavior begin to emerge.While the social networking market has traditionally beencharacterized by its underlying social graph, in which theconnecting nodes are represented by individual users,Pinterest oers a glimpse into the emergence o the interestgraph, in which shared interest becomes the primaryconnecting points. 2012 will be a year in which networkingaround shared interests takes the main stage as one o thehot topics in the social space.

Average Minutes per Visitor orSelected Leading Social Networking SitesSource: comScore Media Metrix, Dec-2011, U.S.

FACEBOOK.COM

TUMBLR.COM

PINTEREST.COM

TWITTER.COM

LINKEDIN.COM

MYSPACE

GOOGLE PLUS

SOCIALNETWORKING

In 2012 weregoing to see social

media dene thiselection. Its going

to infuence

how people getout the vote andhow online

undraising occurs.Hear more insights on the uture

o social media rom AndrewLipsman, comScore VP o

Marketing and Industry Analysis atwww.comscore.com/

2012USDigitalFutureInFocus
http://www.comscore.com/2012USDigitalFutureInFocushttp://www.comscore.com/2012USDigitalFutureInFocushttp://www.comscore.com/2012USDigitalFutureInFocushttp://www.comscore.com/2012USDigitalFutureInFocus


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Share o Explicit SearchesAmong U.S. Core Search EnginesSource: comScore qSearch, Dec-2011 vs. Dec-2010, U.S.

GOOGLESITES

DEC-2010 DEC-2011

MICROSOFTSITES

YAHOO!SITES

ASKNETWORK

AOLINC.

Google retained its position at the top o the U.S. explicitcore search ranking in 2011 with 65.9 percent o searchesconducted, and it has consistently attracted approximatelytwothirds o the market or awhile now. One o the mostnotable stories in the search market in 2011 was Bingcapturing the #2 spot or the rst time on record whenit surpassed Yahoo! in December. Following a year oconsistently solid growth, Bing nished the year at 15.1

percent search market share, up 3.1 percentage points romthe prior year. Yahoo! Sites ranked third in December with14.5 percent o searches, ollowed by Ask Network with 2.9percent and AOL Inc. with 1.6 percent.

GOOGLE CONTINUES TO LEAD WHILE MICROSOFTBING CLOSES OUT THE YEAR IN #2 SPOT

1.9% 1.6%3.5% 2.9%

16.0% 14.5%12.0%

15.1%

66.6% 65.9%

Search

Bing capturedthe #2 spot or

the rst time onrecord when it

surpassed Yahoo!in December 2011


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SEARCH Although there are ve primary core search engines today, the market increasingly relies on the search algorithms oGoogle and Bing. I we look at the share o the U.S. search market powered by their respective engines, we can see thatGoogle, which also powers searches on AOL and Ask, accounts or 68.1 percent, while Bing, which also powers searcheson Yahoo!, accounts or 26.5 percent. Two major search technology providers accounting or a sizeable percentage o themarket appears to be stimulating a competitive environment where both providers continue to deliver innovation and animproved user experience. In particular, the increasing integration o social search technology, such as including resultsrom Facebook, Twitter and Google+, are proving there are new and interesting ways to improve search relevance thatpromise to bolster the utility o search in 2012.

Powered By Share o Explicit Core Searches in the U.S.Source: comScore qSearch, Dec-2011 vs. Dec-2010, U.S.

GOOGLE BING OTHER

DEC-2010 DEC-2011

69.4% 68.1%

24.4%26.5%

6.2% 5.4%


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Searches UniqueSearchers

Searches perSearcher

Total Internet 11% 3% 7%

Google Sites 10% 2% 7%

Microsot Sites 40% 6% 31%

Yahoo! Sites 1% 2% 3%

Ask Network 8% 0% 7%

AOL Inc. 8% 19% 14%

SEARCH As the web continues to grow in size and complexity, the roleo search has become critical to its practicality and value.Despite the U.S. search markets overall maturity, it continuedto grow at doubledigit rates, posting an 11percent increasein 2011. This growth was driven by a 3percent gain in uniquesearchers and a 7percent gain in the number o searchesper searcher, highlighting that increasing search intensityper searcher explains the majority o the doubledigit gainin the past year. Googles search query volume grew 10

percent, driven mostly by gains in searches per searcher up7 percent, mirroring the search market overall. Bing achievedthe highest growth in search query volume at 40 percent,propelled by sizeable gains in both unique searchers up 6percent and searches per searcher up 31 percent. With theU.S. being a very mature market or search, continued volumeincreases will rely on driving a greater number o searches persearcher, which ultimately depends on delivering more valueto the end user with high quality search results.

SEARCHER INTENSITY DROVE MAJORITY OF 2011 GROWTH IN U.S. SEARCH MARKET

U.S. Explicit Core Search Percent ChangeSource: comScore qSearch, Dec-2011 vs. Dec-2010, U.S.


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43% moreAmericans watch

online videocontent on an

average day nowthan a year ago

In 2011, Americans viewed more online video contentthan ever beore, as evidenced by strong increasesacross several key viewing metrics. More than 100 millionAmericans watched online video content on an averageday, representing a 43percent increase versus year ago. Inaddition to more daily viewers, the number o video streamsjumped 44 percent to 43.5 billion in December 2011. Oneo the key behavioral shits in online video continues to bethe increasing adoption o longorm video content viewing,

as Americans watch shows and movies ondemand over theInternet. As a result, we observed the average number ominutes per video view rise rom 5.0 minutes to 5.8 minutesby the end o 2011 with the average viewer watching 239videos up 37 percent. These key indicators also point to ahealthy and growing video marketplace, both in volume andintensity. As video continues to inuse the web experienceacross content categories and individual properties, weshould expect to see these numbers climb even higher in thecoming year.

MORE VIEWERS STREAMED MORE VIDEOS MORE OFTEN

Growth in Total Online Video Content MarketSource: comScore Video Metrix, Dec-2011 vs. Dec-2010, U.S.

DEC-2010 DEC-2011

73.7105.1

AVERAGE DAILYUNIQUE VIEWERS

(MILLIONS)

DEC-2010 DEC-2011

175.0239.0

VIDEOSPER

VIEWER

DEC-2010 DEC-2011

30.143.5

VIDEOSVIEWED

(BILLIONS)

Online Video


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ONLINEVIDEO

comScore expectsthe number ovideos viewedto continue to

increase in 2012

with one o theprimary drivingreasons being an

increase in quality,original, created

ortheweb contentsyndicated across

platorms.Hear more insights on the uture

o online video rom Dan Piech,comScore Product Manager or

Online Video atwww.comscore.com/


In December 2011, Americans viewed 43.5 billion contentvideo streams online. Google Sites, driven primarily byvideo viewing at YouTube.com, reigned at the top o theleaderboard with more than 21.9 billion video views,representing hal the total video market. VEVO ranked adistant second with 801 million content videos streamed1.8 percent, ollowed by Hulu with 777 million videos 1.8percent in third. Meanwhile Netfix.com had 431 million

videos views during the month, representing 1.0 percent othe market. While YouTube remains the dominant providero online video, the market provides valuable advertising realestate that supports strong monetization or a host o videopublishers. Video ads deliver signicantly higher CPMs onaverage than traditional display ads as the combination osight, sound and motion o online video oers a particularlyattractive venue or advertisers.

YOUTUBE OWNS NEARLY HALF OF U.S. ONLINE VIDEO MARKET

Share o Content Videos ViewedSource: comScore Video Metrix, Dec-2011, U.S.

GOOGLE SITES, 50.4%

VEVO, 1.8%

HULU, 1.8%

YAHOO! SITES, 1.5%

MICROSOFT SITES, 1.4%

VIACOM DIGITAL, 1.2%

AOL, INC., 1.0%

NETFLIX.COM, 1.0%

ESPN, 0.9%

MEVIO NETWORK, 0.8%

OTHER, 38.3%

50.4%38.3%43.5 billion

content videos

viewed in Dec-2011


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Total Unique Viewers000

Videos000

Videosper Viewer

Minutesper Viewer

VEVO @ YouTube 53,464 782,292 14.6 66.9

Warner Music @ YouTube 31,665 206,538 6.5 29.2

Machinima @ YouTube 22,737 340,058 15.0 63.9

Maker Studios @ YouTube 10,404 81,115 7.8 29.7

FullScreen @ YouTube 9,698 41,523 4.3 18.1Big Frame @ YouTube 8,336 43,418 5.2 19.3

Collective @ YouTube 7,328 59,485 8.1 24.6

Demand Media @ YouTube 7,299 19,646 2.7 9.3

IGN @ YouTube 6,967 28,035 4.0 17.5

Bigpoint @ YouTube 5,772 29,015 5.0 19.8

The Game Station @ YouTube 5,014 65,539 13.1 61.3

Warner Bros The Ellen Show @ YouTube 4,880 19,199 3.9 15.6

Clevvertv @ YouTube 4,805 9,476 2.0 7.9

Revision3 @ YouTube 4,712 15,935 3.4 15.7

google @ YouTube 4,605 5,865 1.3 4.3

ONLINEVIDEO Given the established dominance o YouTube in the videolandscape, comScore launched YouTube Partner Reporting

in July 2011 to provide more granular measurement oviewership and audiences across thousands o individualYouTube partners and their channels. VEVO maintained astrong ooting on the top spot with 53.5 million viewers inDecember and 782 million videos viewed. Warner Musicranked second with 31.7 million viewers and 207 millionvideos. Machinima, which ranked in third place in uniqueviewers 22.7 million demonstrated particularly strongengagement among its loyal ollowing, ranking second in

terms o videos viewed 340 million and minutes per viewer63.9, and rst in terms o videos per viewer 15. TheGame Station also displayed a high intensity o viewership,averaging 13.1 videos and 61.3 minutes per viewer inDecember. As the YouTube partner channels demonstrate areliable ability to deliver millions o highlyengaged viewerseach month, advertisers are taking notice. Increasinglywe should expect to see the online video market take itscues rom the TV world, as proessionallyproduced or atleast nonamateur video content becomes the norm andviewers watch their content via channels.

YOUTUBE PARTNER CHANNELS ATTRACT LOYAL FOLLOWING

YouTube Partner Channels Ranked by Unique Video ViewersSource: comScore Video Metrix, Dec-2011, U.S.


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ONLINEVIDEO Video advertising has continued to grow in 2011 asit becomes a more appealing medium or advertisers

looking or attractive inventory adjacent to highlyengaging content. But as with TV, the ratio o ads tocontent must be set at an appropriate level in order tomaintain such user engagement. The volume o videoads streamed across the Internet increased 20 percent

versus the previous year to 7.1 billion in December, butthe ratio o the number o video ads to total videos grewat a somewhat more muted rate rom 12.8 percent to 14.1percent. Viewer tolerance, as well as the popularity o paidpremium video services, will ultimately determine whetherwe see the ratio o video ads streamed across the totalInternet continue to grow or stabilize over time.

VIDEO ADVERTISING CONTINUES GROWTH TRAJECTORY

U.S. Video Advertising as a Percentage o

Total Online Video ConsumptionSource: comScore Video Metrix, Jan-2011 to Dec-2011, U.S.

15%8.0

6.0

4.0

2.0

0.0

12%

9%

6%

3%

0%

% ADS (VIDEOS) AD VIDEOS (BILLIONS)

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2011


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An increasingnumber o large

brand advertisersdelivered at least

1 billion display adimpressions perquarter in 2011

The past ew years have seen a rapid evolution o the display advertising space with signicant advancement in advertisingtechnology, creative units and targeting capabilities, delivering more value or advertisers and publishers alike. As adtargeting improves and display ads reach consumers across the marketing unnel, this segment o the online display admarket is poised or continued growth as a strong second player to search advertising.

Among the many beneciaries o the growth and innovationin display advertising are web publishers. The leading U.S.publisher o display ads in 2011 was Facebook with morethan 1.3 trillion impressions 27.9 percent market share,

more than double that o #2 publisher Yahoo! Sites at 529billion impressions. Microsot Sites ollowed as the thirdlargest display ad publisher with more than 215 billionimpressions, while Google Sites delivered 173.9 billionimpressions, the majority o which were seen on YouTube.Advertising on Facebook, which combines many o theattributes o search such as granular targeting, small adormats and selpurchased ad buys, presents a uniqueoering or many marketers looking to bridge their searchand display advertising.

FACEBOOK DELIVERS 1 OF EVERY 4 ONLINE DISPLAY ADS

1,343,170

528,993

215,650

173,929

131,373

73,588

54,810

47,096

38,532

34,464

Top Ten U.S. Online Display Ad Publishersby Number o Impressions in MillionsSource: comScore Ad Metrix, Jan-2011 to Dec-2011, U.S.

FACEBOOK.COM

YAHOO! SITES

MICROSOFT SITES

GOOGLE SITES

AOL, INC.

TURNER DIGITAL

GLAM MEDIA

ESPN

VIACOM DIGITAL

EBAY

Digital Advertising


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AT&T, which has been the top display advertiser or the pastseveral years, maintained its leadership position delivering105.8 billion ad impressions in 2011. Fellow telecomcompany Verizon Communications ranked third with 49.5billion impressions during the year. Other top displayadvertisers included Experian Interactive with 67.6 billiondisplay ad impressions, many o which eatured its creditscoring services, while Scottrade, Inc. ranked #4 with 44billion impressions. Google Inc. made its debut in the top 10display advertisers, delivering more than 40.4 billion displayad impressions, eaturing heavy promotion o services such

as Google Chrome, Google Oers and Google+.

Large brand advertisers continued to grow their investmentin digital advertising in 2011 marked by an increasingnumber o advertisers delivering at least 1 billion displayads per quarter throughout the year. In Q4 2011, 145dierent advertisers delivered more than 1 billion displayad impressions, an increase o 38 percent rom Q42010. The number o advertisers delivering at least 3billion impressions grew rom 26 to 46 during that sametimerame. Such increased digital investment among theselarge advertisers suggests a growing comort level withthe medium in terms o delivering eective brandbuilding

advertising to the desired consumer targets.

Top Ten U.S. Online Display Advertisersby Number o Impressions in MillionsSource: comScore Ad Metrix, Jan-2011 to Dec-2011, U.S.

DIGITALADVERTISING

AT&T INC.

EXPERIAN INTERACTIVE

VERIZON COMMUNICATIONS

SCOTTRADE, INC.

GOOGLE INC.

MICROSOFT CORPORATION

NETFLIX, INC.

EBAY, INC.

PROGRESSIVE CORPORATION

IAC - INTERACTIVECORP

105,792

67,565

49,481

44,031

40,454

38,662

36,991

32,302

30,042

29,403

Number o Advertisers Deliveringat Least 1 Billion Display Ad Impressions per QuarterSource: comScore Ad Metrix, Q4 2010 - Q4 2011, U.S.

160

140

120

100

80

60

40

20

0

79

10

12

4

Q4 2010

74

15

105

Q2 2011

65

14

12

4

Q1 2011

104

15

13

7

Q3 2011

99

20

17

9

Q4 2011

10+ BILLION 5-10 BILLION 3-5 BILLION 1-3 BILLION


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Its no secret that the online advertising industry has long held the promise o being the

most measureable o all media. And while in many ways this is true, the increasingly

complex nature o the online advertising ecosystem has made validation o ad delivery

more dicult and hindered the fow o ad dollars online. To better understand some o

these ad delivery issues, comScore conducted a U.S.-based Charter Study in December

2011 involving 12 national brands, 3,000 placements, 381,000 site domains and 1.7 billion

ad impressions.

TRANSPARENCY AND ACCOUNTABILITY FOCUS OF DIGITAL ADVERTISING IN 2012DIGITALADVERTISING

Allstate


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DIGITALADVERTISING

2012 is going tobe the year whereonline advertising

eectivenessmeasurement will

nally make sense.Kirby Wineld, comScore SVP orCorporate Development

By bringing these and other similar issues associated with digital ad delivery and validation to the oreront, the industry willbe able to place a airer value on online ad inventory, thus improving the balance between advertising supply and demand.As we come to better understand advertising delivery, as well as leverage new tools to validate delivery and coursecorrectwhile infight, all players will have more condence in this medium as an advertising channel, helping digital to reach itsull potential.

Visibility: Across all charter campaigns measured, 69percent o the ad impressions were classied as being inview. The remaining 31 percent were delivered but neverseen by a consumer, a likely result o a consumer scrollingpast the ad beore it loaded or a consumer never scrollingthe ad into view. Inview percentages varied by site and

ranged rom 7 percent to 100 percent. Geographic Validation: An average o 4 percent o

ad impressions were delivered outside the desiredgeography, but individual campaigns ran as high as 15percent. In many cases, ads were served in marketswhere the advertised product was not sold, meaningwasted ad spend and suboptimal eectiveness results

Brand Saety: 72 percent o Charter Study campaignshad at least some ads running next to content deemednot brand sae by the advertiser, meaning that the

content is classied as objectionable by the brand. Thistype o unsae delivery has the potential to damage thebrand, creating a dicult situation or all members o thedigital advertising ecosystem.

Target Audience: While the largest number o adplacements in the Charter Study leveraged contentbased targeting, many were also bought using audiencetargeting. O all o the placements that leveragedaudience targeting, 73 percent o the impressions weretargeted based on behavioral attributes, not simply

age, gender or household income. This nding aloneindicates an increasing use o behavioral targetingin display advertising, a trend that will likely persist in2012. Additionally, o the audiencetargeted placementsevaluated in the study, validated delivery ranged rom 1496 percent, suggesting faws in cookiebased audiencetargeting and substantiating a need or this validation.

Topline study results were eye-opening, demonstrating a clear need or greatertransparency and accountability across the industry, a trend that will certainly pour into

2012 and beyond:


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2011 was undoubtedly the year o mobile as the rapid adoption o smartphones created a growing population o everconnected consumers, while tablets became the media companion o choice or a growing number o Americans. Bothsmartphones and tablets have altered the digital ecosystem as an increasing amount o media is consumed away rom theclassic web computers, a trend that is poised to accelerate into 2012. Several key milestones reached during the yeardemonstrate the rise o the mobile consumer and point to an exciting year ahead or the industry.

Smartphone adoption reached 42 percent o mobilesubscribers or the threemonth average period endingDecember 2011, increasing 15 percentage points during2011 and representing an additional 35 million smartphonedevice owners. In July 2011, smartphones accounted orthe majority o new mobile phone purchases or the rsttime, quite a change rom the beginning o 2009 whensmartphones accounted or just 18 percent o new devicepurchases. At the end o 2011 there were more than400 smartphone devices on the market in the U.S.,supplying consumers with a plethora o options whenchoosing a device.

Android and Apple dominated the smartphone narrativein 2011, with a combined market share o more than 75percent in December 2011. Android in particular sawimpressive growth in 2011, surpassing RIM to lead as thetop smartphone platorm in January 2011. Android devicesaccounted or 47.3 percent o the smartphone market inDecember 2011, an 18.6point increase versus the previousyear, driven by the prolieration o the OS across devicesand carriers. Just three years ater the rst Androidoperateddevice was released in October 2008 with the TMobile G1,the Android installed audience base eclipsed 40 million U.S.users with the platorm showing continued growth into 2012.

January 2011Android surpasses RIM tolead smartphone market

Julysmartphones accountor the majority o

new mobile deviceacquisitions or therst time

Septembermajority o mobilephone owners use

mobile media

December

smartphone penetrationreaches 2 in 5 mobile users

SMARTPHONES AND TABLETS REDEFINE MEDIA CONSUMPTION

ANDROID AND APPLE DEVICES IN THE HANDS OF 3 IN 4 SMARTPHONE OWNERS

Smartphoneadoption nowreaches 2 in 5

mobile Americans

Mobile


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2011 was also a strong year or Apple, which saw theiPhone debut on two additional carriers Verizon inFebruary and Sprint in October as well as the releaseo the iPhone 4S in October. Apple accounted or 29.6percent o the smartphone market in December, anincrease o 4.6 percentage points rom the previous year.With the iPhone 5 rumored to be on the horizon or 2012,Apple looks to deliver another highly anticipated device tocontinue growing its smartphone audience.

The year was not as avorable or other players, with RIMslipping rom its once dominant position in the smartphonemarket to just 16 percent market share by the end o2011. The appointment o a new CEO in January 2012has RIM looking to attempt to regain some position in themarketplace. Microsot shed 3.8 percentage points to nishout the year with 4.7 percent o the market, although the OSis approaching 2012 aggressively with the release o therecently announced Nokia Lumia 900.

MOBILEWe are entering anew digital era, anera where people

are connecting withcontent and with

brands throughmultiple screens

through their PC,TV, smartphone,

and media tablets,we call this

the rise o theDigital Omnivore.

Hear more insights on the utureo mobile rom Mark Donovan,

comScore SVP or Mobile at

www.comscore.com/2012USDigitalFutureInFocus

Smartphone Platorm Percent ShareSource: comScore MobiLens, 3 mon. avg. ending Dec-10 to Dec-11, U.S.

ANDROID APPLE RIM MICROSOFT SYMBIAN PALM

28.7%

25.0%

31.6%

34.8%

25.5%

27.1%

40.2%

26.6%

44.8%

27.4%

18.9%

47.3%

29.6%

16.0%


20112010

23.5%


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Mobile phones proved to be an integral channel orcommunication, inormation and entertainment in 2011. Alook at some o the top mobile activities or smartphoneand eature phone owners in 2011 ound that nearly 3 in4 Americans texted in December, while 3 in 5 used theirphone or taking photos and slightly more than 1 in 4captured video on their mobiles. 2011 saw slightly moreAmericans accessing applications 47.6 percent thantheir mobile browser 47.5 percent, a reversal rom a yearago, as the increasing number o apps and smartphonepenetration ueled usage. 41 percent o mobile usersaccessed email rom their device, with 35.3 percent socialnetworking on their phone.

A look at the astestgrowing activities or mobile usersrevealed consumers increasingly turning to their device orretail and commerce, a trend that many mark as among themost important or manuacturers and retailers in 2012.The disrupting orce o mobile in the retail environmentprovides new opportunities or brands to reach customersthrough the most personal and ubiquitous digital channel,while at the same time presenting challenges or retailers asconsumers consult their new avorite shopping companion their smartphone while in stores. In December 2011,28.5 million mobile users accessed online retail content ontheir mobile devices, up 87 percent rom the previous year,and with no signs o slowing in 2012. Commercerelatedcontent also saw gains including Electronic Payments up80 percent, Classieds up 72 percent, Auction Sites up70 percent and Shopping Guides up 67 percent.

Health Inormation has continued to gain popularity amongmobile users, leading as the topgrowing content categoryin 2011, surging 134 percent to reach 18.5 million mobileusers as this emergent category amassed a growing andsignicant audience base. With more mobile health startupsentering the eld and traditional health inormation providersimproving their mobile strategies, look or 2012 to see thisarea develop urther.

MOBILE POISED TO PLAY A CENTRAL ROLE IN RETAIL IN 2012MOBILE

DEC-2010 DEC-2011

HEALTH INFORMATION

ONLINE RETAIL

MENS MAGAZINE CONTENT

ELECTRONIC PAYMENT

GAMING INFORMATION

JOB LISTINGS

GENERAL REFERENCE

CLASSIFIEDS

AUCTION SITES

KIDS/FAMILY ENTERTAINMENT

+134%

+87%

+82%

+80%

+77%

+74%

+74%

+72%

+70%

+69%

7,895

18,491

15,221

28,537

6,250

11,356

13,056

23,480

13,789

24,358

11,794

20,570

19,992

34,859

16,971

29,164

13,908

23,675

9,803

16,593

Top Mobile Categories by Growth in Audience (000)Source: comScore MobiLens, 3 mon. avg. ending Dec-2011 vs. Dec-2010, U.S.


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Discussing 2011s mobile environment and the uture wouldnot be complete without addressing the rapidly developingtablet market. In 2011 consumers had the choice o morethan one hundred distinct tablet devices with severalhighlypublicized releases including the iPad2, KindleFire, NOOK Tablet and Samsung Galaxy S ueling marketadoption. To put the rapid uptake o tablets in perspective,it took seven years to reach nearly 40 million smartphonescompared to less than two years to reach nearly 40 milliontablets, demonstrating the vast appeal o these devices andconsumers desire or connection.

The rise o smartphones and tablets have drastically alteredconsumers digital media consumption changing the waypeople access content, where they consume it and therequency o consumption. This evolution o digital deviceinteraction has given rise to an age o digital omnivores consumers who access content through several touchpoints during the course o their daily digital lives. InDecember 2011, 8.2 percent o all digital trac pageviews occurred outside o the classic web, with mobileaccounting or 5.2 percent o trac, tablets driving 2.5percent and other connected devices accounting or lessthan a percent. In many cases smartphones and tabletshave provided incremental reach and engagement toclassic web activities, while or others, such as map contentand email, these devices have started to cannibalize thisbehavior on the classic web.

Smartphones and tablets are poised to disrupt the digitalecosystem even urther in 2012 as adoption rates continueto climb and the availability o optimized content increases.Understanding complementary device usage across theclassic web, smartphones, tablets and other connecteddevices will become a critical necessity or advertisersand publishers utilizing a multiplatorm approach to reachtodays digital omnivore.

For more insights into the uture o mobile, staytuned or

our 2012 Mobile Future in Focus report to be released laterthis month.

DIGITAL OMNIVORES HERALD DAWN OF NEW ERA IN CONSUMPTION

MOBILE

Share o Connected Device Trac in the U.S.Source: comScore Device Essentials, Dec-2011, U.S.

CLASSIC WEB OTHER TABLET MOBILE

91.8% 8.2%

5.2%

2.5%

0.5%


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Despite the backdrop o continued economic uncertainty,2011 was a strong year or retail ecommerce. Throughoutthe year, growth rates versus the prior year remained indoubledigits to signicantly outpace growth at brickandmortar retail. Consumers remained cautious spendersoverall, but increasingly turned to digital commerce dueto two prevailing actors: price and convenience.

Total U.S. ecommerce spending reached $256 billionin 2011, up 12 percent rom 2010. Travel ecommerce

spending grew 11 percent to $94.5 billion, while retailnontravel ecommerce spending jumped 13 percentto $161.5 billion or the year.

The 2011 holiday season represented the exclamationpoint or this strong year in online retail, with growth ratessurging to 15 percent or the season the highest ratesobserved since 2007. Strength in the online retail sectorrefected consumers response to the attractive prices,discounts and deals oered online with ree shippingbeing the most prevalent but also some signs o improved

sentiment. Not surprisingly, November $17.2 billion andDecember $20.0 billion were the heaviest online spendingmonths o the year, with their growth rates a ew percentagepoints higher than what was observed during the rstthree quarters o the year Note: November and Decembergrowth rates calculated based on comparable shoppingdays in 2010, not calendar dates.

ONLINE SPENDING RETURNS TO STRONG DOUBLE-DIGIT GROWTH RATES IN 2011

2011 was astrong yearor retail

ecommerce,signicantly

outpacing growthat brickandmortar retail

2011 U.S. Retail ECommerce Spending ($MM)

and Y/Y Growth Rate by MonthSource: comScore E-Commerce Measurement, U.S.

RETAIL E-COMMERCE SPENDING ($MM) Y/Y % GROWTH

17%

16%

15%

14%

13%

12%

11%

10%

9%

8%

$25,000

$20,000

$15,000

$10,000

$5,000

$0

ECommerce

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2011


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The heaviest individual spending day o the year was Cyber Monday Monday, November 28, 2011 at $1.251 billion,representing the second consecutive year in which Cyber Monday has ranked as the top online spending day o theseason. Cyber Monday led this past years cavalcade o billion dollar spending days, with ten individual days surpassingthat threshold in the holiday season alone. Monday, December 5 ranked second at $1.178 billion, ollowed by GreenMonday Monday, December 12 at $1.133 billion.

$1.25 BILLION CYBER MONDAY RANKS AS TOP ONLINE SPENDING DAY OF 2011

E-COMMERCEBrickandmortarretailers are really

uncertain aboutthe impact osmartphones.

Some o them havedescribed it as their

worst nightmarethe retailer is

competing withthe Internet while

the consumer isphysically still in

the store.Hear more insights on the

uture o ecommerce romGian Fulgoni, comScore

Chairman and CoFounder atwww.comscore.com/


Top 10 U.S. Online Retail Spending Daysin 2011 in MillionsSource: comScore E-Commerce Measurement, U.S.

MONDAY, NOV. 28 (CYBER MONDAY)

MONDAY, DEC. 5

MONDAY, DEC. 12 (GREEN MONDAY)

TUESDAY, NOV. 29

TUESDAY, DEC. 6

FRIDAY, DEC. 16 (FREE SHIPPI NG DAY)

TUESDAY, DEC. 13

WEDNESDAY, NOV. 30

THURSDAY, DEC. 8

THURSDAY, DEC. 15

$1,251

$1,178

$1,133

$1,116

$1,107

$1,072

$1,064

$1,025

$1,024

$1,018
http://www.comscore.com/2012USDigitalFutureInFocushttp://www.comscore.com/2012USDigitalFutureInFocushttp://www.comscore.com/2012USDigitalFutureInFocushttp://www.comscore.com/2012USDigitalFutureInFocushttp://www.comscore.com/2012USDigitalFutureInFocus


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Digital Content & Subscriptions, a category predominantlycomposed o digital content downloads such as music,movies, TV shows and ebooks, ranked as the astestgrowing retail ecommerce category in 2011 with a26percent growth rate. An acceleration o ebookdownloads as tablets and ereaders gain in popularityrepresented a strong driver o this growth.

Consumer Electronics ranked as the second astestgrowing category this year at 18 percent, driven by low

priced fat panel TVs, tablets and ereaders. Jewelry &Watches, which grew 17 percent, also had a strong year asAmericans reveal their taste or luxury goods once again aswe climb back rom the recession.

Americans online shopping behavior over the past yearsuggest a preerence or the latest electronic gadgetsand their complementary items, a trend that is likely toaccelerate as tablets and ereaders gain mainstreamadoption. It is important to remember that these are stillrelatively nascent markets and that high product pricepoints have kept these devices out o the hands o manyAmericans. But with Amazon leading the way in makingthese products more aordable to the average consumer,they are likely to become an even more signicant driver oecommerce activity in 2012.

DIGITAL CONTENT & SUBSCRIPTIONS RANK AS TOP GROWING ONLINE RETAIL PRODUCT CATEGORY IN 2011

E-COMMERCE

Top 5 Growing U.S. Retail ECommerce Categories in 2011Source: comScore E-Commerce Measurement, 2011 vs. 2010, U.S.

Digital Content & Subscriptions

Consumer Electronics

Jewelry & Watches

Computer Hardware

Computer Sotware

26%

18%

17%

15%

15%

% CHANGE


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29

One o the hottest digital markets to emerge in the lastcouple o years is the daily deal phenomenon, led by marketleader Groupon, which had its IPO in early November.According to site visitation patterns, which are a unctiono both organic interest in the service and marketingexpenditures, a market that experienced nearly universalgains in 2010 has begun to experience uneven trac patternsover the past year. Groupon.com nished the year with 12.5million visitors via the classic web, marking a 15percentincrease in the past 12 months but a decline rom its peak o

14.5 million visitors in June. LivingSocial, meanwhile, saw itstrac surge early in the year to 11.2 million visitors in partdue to some popular deals with Amazon and Whole Foods but saw the number o visitors pull back to 4.5 millionby December.

Is daily deal atigue becoming a actor? It is possible thatsome consumers have increasingly begun to tune out theonslaught o daily emails. But it may also refect the marketcoming into equilibrium as business models are netunedor sustainability and outsized marketing expenditures arereduced. It is also likely that more consumers are using theirmobile devices instead o the classic web to take advantageo daily deals. Especially as these companies go publicand there is an increasing need to balance the top lineand bottom line, its possible that greater stabilization may

occur in the year ahead. Many consumers will possibly lookto prune their number o daily deal subscriptions in 2012,which could mean more consolidation in the long tail andpotentially greater market power or the largest providers.Improved targeting mechanisms or consumers and betterdeal optimization tools or merchants will help ensure astrong value proposition or all constituents, as 2012 willmark a year o maturation or the daily deal sector.

DAILY DEAL-BUYING TAKES OFF, THEN STABILIZES

E-COMMERCE

Groupon and LivingSocial Visitors (000)Source: comScore Media Metrix, Dec-2009 to Dec-2011, U.S.

16000

14000

12000

10000

8000

6000

4000

2000

0

GROUPON LIVINGSOCIAL

D J F M A M J J A S O N D J F M A M J J A S O N D

09 2010 2011


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Facebooks $5 billion public oering, the largest everU.S. tech IPO, has demonstrated the true power o socialmedia as a protable enterprise. With a rumored valuationo as high as $100 billion, Facebook has built a companyworth as much as McDonalds in just eight short years. ButFacebook is not alone in fexing its muscle on the publicmarkets, with 2011 seeing the successul IPOs o LinkedIn,Zynga and Groupon, while Yelp has also led or a 2012oering. As these companies take the public stage, its clearthat social media has the ability to drive astgrowing and

protable businesses.

The strength underlying most o these businesses is thenetwork eect, which says that the more users that enterthe system, the more value it creates or other users.This elicits greater participation and interaction amongexisting users, which attracts even more users and createsa virtuous cycle o user growth. As users become moredeeply ingrained into the service, switching costs becomehigh and winnertakeall markets occur at least withinparticular market segments. Network eects have been

critical to the success o many leading Internet companies,such as Microsot, eBay and Amazon, and are playing outin a similar ashion or these social media sites.

As network eects drive user growth and engagement, itopens the doors to robust advertisingbased businesses.As the top U.S. display ad publisher, Facebook is drivingbillions per year in ad revenue and reportedly hopes to addto its totals by monetizing its substantial mobile trac. Thedigital advertising market is growing quickly as large brandadvertisers continue to ramp up their investment in themedium, which is just another indication that the wind is atthe backs o Facebook and other social media companiesas they take center stage on the stock market.

FACEBOOK IPO RAISES THE PROFILE OF SOCIAL NETWORKING AND DIGITAL ADVERTISING

CONCLUSION

2012: Putting the Future in Focus


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As the largest global sporting event, the Olympics in manyways represents the pinnacle o media coverage with avirtually continuous broadcast o the seventeen day eventstriumphs and tribulations. With the continued evolution omedia platorms, we can expect that the upcoming 2012Summer Olympics in London will see the most expansiveuse o multimedia to ensure that viewers have access to thelatest events and highlights wherever they may be.

Expect that smartphones and tablets will play an

increasingly important role in the Olympic Games as ansview events and keep up to date on their national teamson these various devices. For some perspective, considerthat during the 2010 Olympic Games in Vancouver, theiPad was still just a rumor and the number o smartphone

owners was less than hal its current size. Now both tabletand smartphone users represent a substantial audience, notjust or the Olympics, but or the many large advertisers thatalign themselves with the Games.

Social media also promises to play an important role in thisyears Olympics as citizens around the world connect toshare, in realtime, the joy o victory and the agony o deeat.With each Olympics, historic eats will be achieved andmoments o national glory captured or posterity, and we

can be certain that this years games will eature a globalcommunity that is more connected and interconnected than it has ever been beore.

2012 SUMMER OLYMPICS ILLUMINATE THE RISE OF MULTIMEDIA CONSUMPTION

CONCLUSION2012: Putting the

Future in Focus


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What was once dismissed as a leisureoriented activity,social networking has reached new heights o legitimacy asa orce or democratization, transparency and as a shapero global movements. Events such as the 2011 Arab Springsaw social media play a leading role in revolutions acrossthe globe, acting as a catalyst or the dissemination o ideasand the organization o people around a common cause. Ona domestic level, social media has been an organizing orcebehind political movements such as Occupy Wall Street,where it connected people both physically, around common

organizing locations, and emotionally, around a commonspirit o indignation at an unair system.

As we approach the 2012 U.S. Presidential Election, socialmedia will play a signicant role in the battleground o ideasbetween the presidential candidates, and will be used by theircampaigns to mobilize voters. Candidates rst embracedsocial media as a meaningul part o their campaign strategyin 2008, but they were only at the tip o the iceberg. Todaythe digital landscape is vastly dierent rom the last election,requiring signicantly more investment in social and digital

strategies in order to reach voters. In November 2008, orexample, Facebook had just 45 million U.S. visitors, comparedto December 2011 when the site reached more than 160million. Twitter, with less than 2 million visitors a month, wasnteven on campaign radars and barely any politicians had evenheard o the social media tool that virtually every one o themwould be using by the ollowing year. In the 2012 election,candidates who do not have welldesigned and wellexecutedsocial media strategies lose the ability to eectively engagetheir constituents and compel them to action.

Social media will not only be used as a tool or organizingand getting out the vote, but also or online undraising,which increases in importance with every election cycle.Expect to see social media accelerate the intensity withwhich online giving occurs, as concentrated undraisingeorts oten reerred to as moneybombs becomestandard are in the increasingly heated and competitivepolitical environment.

Finally, digital advertising will continue to be an important

aspect o the political media environment. Though weexperience the constant barrage o TV ads in the leadup to the election, campaigns are turning to displayadvertising early and oten to help build their brands andset their narrative. Campaigns are also becoming moreadept at narrowly targeting important constituencies withad campaigns, whether according to a specic interest orgeography, to ensure that the right messages reach theright voting blocs. In 2008, we saw an unlikely candidate inPresident Obama catch his primary and general electionsby surprise with his advanced digital and social media

strategies. We can be sure that in 2012, every campaignwill be wellprepared and wellarmed in the digitalbattleground.

SOCIAL MEDIA A DEMOCRATIZING FORCE AHEAD OF U.S. PRESIDENTIAL ELECTION


Future in Focus


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33

Smartphones have become consumers mostvaluedshopping companion, a trend that is poised to continuein 2012 as smartphone adoption surges past 50 percent.What has been reerred to by some as retailers worstnightmare, smartphones are bringing the power othe Internet right into brickandmortar stores, armingconsumers with the pricing power that was once reservedor the connes o their home or work online shoppingexperience. With just a ew swipes on their touchscreen,consumers are now able to compare prices, locate a store

that oers a better deal, read reviews, send product photosand more, all while standing within arms reach o a producton the shel and within eet o the checkout, deying the oldadage that getting shoppers in the store is hal the battle inmaking a sale.

Not only are smartphones infuencing the physical shoppingworld, these devices, along with tablets, are disruptingthe traditional sales unnel. It is not uncommon or aconsumer to call upon multiple devices beore completing apurchase. They may browse products on their smartphoneon the commute to work, research prices on their tabletwhile curled up in bed or the night, and nally completethe purchase on their PC at work the next day. This newparadigm means that or traditional retailers to successullynavigate this changing landscape in 2012 they must build

strategies that address audiences across these devicesthroughout their shopping and purchasing process, or risklosing that customers sale to the savvy retailer who looksor the interception by being in ront o the consumer atevery step o the sales unnel.

MOBILE DISRUPTING THE TRADITIONAL RETAIL SALES FUNNEL


Future in Focus


34/37


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comScore, Inc. NASDAQ: SCOR is a global leader inmeasuring the digital world and preerred source o digitalbusiness analytics. comScore helps its clients betterunderstand, leverage and prot rom the rapidly evolvingdigital marketing landscape by providing data, analyticsand ondemand sotware solutions or the measuremento online ads and audiences, media planning, websiteanalytics, advertising eectiveness, copytesting, socialmedia, search, video, mobile, crossmedia, ecommerce,and a broad variety o emerging orms o digital consumerbehavior. comScore services, which now include the

product suites o recent acquisitions AdXpose, Nedstat,Nexius XPLORE, ARSGroup and Certica, are usedby more than 1,800 clients around the world, includingglobal leaders such as AOL, Baidu, BBC, Best Buy,Carat, Deutsche Bank, ESPN, France Telecom, FinancialTimes, Fox, Microsot, MediaCorp, Nestle, Starcom, TerraNetworks, Universal McCann, Verizon Services Group,ViaMichelin and Yahoo!.

For more inormation, please visit www.comscore.com

About comScore, Inc.

FOR FURTHER INFORMATION,

PLEASE CONTACT:

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+1 206 268 [email protected]

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The comScore Media Metrix suite o syndicated products sets the standard or digital audience measurement and mediaplanning. Powered by Unied Digital Measurement, the revolutionary measurement approach that bridges panelbasedand website serverbased metrics to account or 100 percent o a sites audience, Media Metrix delivers the most accurateand comprehensive suite o audience metrics, providing valuable demographic measures, such as age, gender, householdincome and household size. Media Metrix reports on more than 70,000 entities, with audience measurement or 43individual countries and 6 global regions, as well as worldwide totals.

The comScore Media Metrix product suite includes individual products utilized within this report including comScoreqSearch, comScore Ad Metrix and comScore Video Metrix.

For more inormation, please visit:

www.comscore.com/Products_Services/Product_Index/Media_Metrix_Suite

comScore MobiLens provides marketwide insight into mobile digital media consumption, brandlevel audience metrics,and details o device ownership and technology penetration. Using proprietary data collection methods, we survey

nationally representative samples o mobile subscribers age13+ in the U.S., UK, France, Germany, Spain, Italy, Canada,and Japan. The MobiLens sample is substantial enough to provide projected data or subsegments as small as 1 percento mobile subscribers. The MobiLens sampling and survey methods undergo extensive analysis and market validationincluding comparisons to known network operator market shares, leading handset model shares, downloading activity, andother usage metrics. For 2011, the estimated monthly survey completes utilized or this report are 10,000 mobile phoneowners in the U.S. For the ollowing analysis, the threemonth average gures amount to a sample o 30,000 mobile users.


www.comscore.com/Products_Services/Product_Index/MobiLens

This report utilizes data rom the comScore suite o products, including comScore Media Metrix, comScore qSearch,comScore Ad Metrix, comScore Video Metrix, comScore MobiLens, comScore Device Essentials and comScoreECommerce Measurement.

COMSCORE MEDIA METRIX

COMSCORE MOBILENS

Methodology and Denitions


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comScore Device Essentials provides insight into digital trac share across all devices worldwide, oering detail intodevice characteristics, connection type, and category consumption. The product is based on the comScore UniedDigital Measurement UDM approach, measuring browserbased page views coming rom computers, mobile, and otherconnected devices to more than one million domains tagging with comScore. Device Essentials also utilizes the comScoreClient Focus Dictionary to segment connected device usage into content categories.


www.comscore.com/Products_Services/Product_Index/Device_Essentials

comScore ECommerce Measurement provides the most accurate, timely and comprehensive view o consumers onlineshopping and spending behavior. The product leverages the comScore panel o 2 million Internet users to capture actualpurchase behavior rom shoppers checkout pages rather than simply relying on UR Lspecic page counts or measuringsecure sessions. This approach gives comScore the unique ability to report ecommerce sales gures weeks beore theU.S. Department o Commerce and is consistently within a ew percentage points o the Governments estimates.


www.comscore.com/Products_Services/Product_Index/eCommerce_Measurement

2012 comScore, Inc.

COMSCORE DEVICE ESSENTIALS

COMSCORE E-COMMERCE MEASUREMENT

METHODOLOGYANDDEFINITIONS

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