comscore state of the us internet q3 (1)

8/8/2019 ComScore State of the US Internet Q3 (1)

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2 comScore, Inc. Proprietary and Confidential.

Agenda

Worldwide Context

US Vital Signs

State of the Internet

Video Search Mobile eCommerce

Monetization


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In 1996, 2/3 of the worlds Internet population was in the US, yet today Asia Pacific is the largestregion.Many emerging regions are likely to bypass old modes, skipping dial-up to go straight to broadband,making multimedia, video, and collaborative content immediately accessible.Early adoption of mobile web in addition to PC web will likely be popular in many of these high-growth areas.

16.2%

8.4%

7.5%

39.9%

28.0%

Middle East- Africa

Europe

NorthAmerica

Asia Pacific

LatinAmerica

Distribution of Worldwide Internet Audience

66%

14%

34%

86%

1996 2010

US Internet Population vs. Rest of the World

Rest of theWorld

US

The US Is No Longer the Center of the Online Universe

Source: comScore World Metrix, July 2010


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Internet Users Age 15+ (MM)

China Surges Past the US

271.6

182.0

72.6

49.1

43.3

41.3

39.6

38.3

37.0

30.0

23.022.2

22.0

20.8

16.5

China

United States

Japan

Germany

Russia

France

India

United Kingdom

Brazil

South Korea

CanadaTurkey

Italy

Spain

Mexico

While US user growth was 9% overthe past year, Russia, China, Mexico

and Brazil have experiencedimpressive growth rates of 31%, 29%,

21% and 19%, respectively.



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More Worldwide Unique Visitors Are Spending More Minutes onSocial Networking Sites than Email Sites

0

200,000

400,000

600,000

800,0001,000,000

Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 U n

i q u e

V i s i t o r s

( 0 0 0 )

Global Total Unique Visitors (000)

Email Social Networking

+23%

+8%

0

50,000

100,000

150,000

200,000

250,000

300,000

Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

M i n u

t e s

( M M )

Global Total Minutes (MM)

Email Social Networking

+46%

+5%


Social Networking UsersSurpassed Email in

August 2009


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Social Networking Sites Reach a Higher Percentage of Women thanMen Worldwide

Older women are increasingly taking to social networking more than their male

counterparts.Users 15-24 have the highest reach and heaviest usage.

The 45+ female segment is the highest growth driver for Social Networking sites.

Source: comScore Women on the Web: How Women are Shaping the Internet ,White Paper, 2010

40.0

45.0

50.0

55.0

60.0

65.0

70.0

75.0

80.0

85.0

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

Social Networking%Reach by Age & Gender

Males

Females

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

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

Social NetworkingTime Spent (Minutes per Visitor)

Males

Females

Worldwide Audience (15+ accessing from Work or Home), July 2010Source: Media Metrix Worldwide


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Global Search Market Growth of 17 Percent Y/Y More Than 2.9 MillionSearches per Minute

0

5,000

10,000

15,000

20,00025,000

30,000

UnitedStates China Japan UnitedKingdom France Germany Brazil Korea RussianFederation Canada

Top 10 Countries by Number of Searches (MM) Conducted*

Jul-09Jul-10+32%

+25%

-3%+70%+34%+38%+11%+2%+15%

+18%

-

15,000

30,00045,000

60,000

75,000

90,000

Google Sites Yahoo! Sites Baidu.comInc.

MicrosoftSites

Facebook Yandex NHNCorporation

eBay Condui t. com** Ask Network

Top 10 Search Properties by Searches (MM) Conducted Jul-09Jul-10

+22% +29%+17%+100%+24%+41%+83%+288%+33%

+8%

*Searches based on expanded search definition, which includes searches at the top properties where search activity is observ ed, not only the core search engines.

**Conduit.com did not have any search activity in July 2009. The first month of activity in qSearch was December 2009.

Google sites

account fornearly two-thirds of the132.8 billionsearchesconductedworldwide inJuly.

MicrosoftSites continueto see thegreatest gainsamong the topfive searchproperties,growing 33%to 4.4 billionsearches, onthe strength ofits successfulintroductionof Bing.

Source: comScore Press Release July 2010: comScore qSearch


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Agenda

Worldwide Context

US Vital Signs



Monetization


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A Snapshot of US Internet Activity

In July 2010:

213.6 million Americans used the Internet.

Average user was online 24 days in the month, for a total of 32.6 hours , andviewed 2,779 pages

85% of Internet visitors viewed an online video in the US, for an average of14.6 hours each.92% of Internet visitors conducted at least one search.

Average searcher conducted 118 searches

Total online spending in July 2010 at US sites was $18.5 billion, up 9%

since July 2009. Travel accounted for $8.2 billion, or 44% of total onlinespending in July.

Source: comScore Media Metrix, July 2010comScore qSearch, July 2010e-Commerce Reports, July 2010


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Is the US Internet Really Still Growing?

Total US Internet Users

0

50,000

100,000

150,000

200,000

250,000

Total Unique Visitors (000) Average Daily Visitors (000)

+34%

+9% Yes, the USInternet is stillgrowing, albeitnot as quickly asit once was.

The large growthin Average DailyVisitors as wellas the increasein Average Visitsper Visitorsdemonstratesthe continuedimportance ofthe internet indaily life.

Total US Internet Engagement

0

500

1,000

1,500

2,000

2,500

Average Minutes per Visitor Average Visits per Visitor

+16%

+7%

Source: comScore Media Metrix, July 2010


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What Online Categories are Driving Web Usage?

The 32+ hours the average user spends online is divided among several key contentcategories such as e-mail, Entertainment and Social Networking.

Top Categories Reach Top Categories Engagement

Source: comScore Media Metrix, July 2010

0

100

200300

400

A v e r a g e

M i n u t e s

/ U V -15%

+3% +9%-3% +4% -5%

80%

85%

90%

95%

100%

R e a c h

+15pt.+19pt. +26pt.

+1pt.

Y/Y % pointchange

Y/Y % change

+20pt.

+6pt.


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Which Categories are Driving Web Growth?

Humor rankedas the top-gainingcategory overlast year,growing 87% to51.8 MM UniqueVisitors,indicating that

more Americansturned to theInternet forhumorouscontent.

The highlyvisitedCommunitycategorygarnered asignificantnumber ofUnique Visitors,growing by 49%

since July 2009.Source: comScore Media Metrix, July 2010

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

U V s (

0 0 0 )

Jul 2009 UVs (000) Jul 2010 UVs (000)

+87%+79%

+79%

+77%+67%

+65%

+65%

+61%

+56%

+55%+51%

+52%

+49%

+48%


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What Properties are Driving Web Growth?

Blogging sitesincludingFederatedMediaPublishing,Gawker Media,and TechnoratiMedia continueto show rapid

growth.TheEntertainmentsite WarnerMusic had amajor gain inunique visitorssince July 2009fueled byWarner Music@ Youtube,thereforedominatingother sites in

year over yeargrowth.Source: comScore Media Metrix, July 2010

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

U V s

( 0 0 0 )

Jul-09 Jul-2010

+961%

+264%+183%

+182%+173%

+157%

+151%

+141%

+138%+127%+124% +107%+95%

+95%


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The recession is evident online as a spike in early 2009 mirrored thegrowing unemployment rate in the US

Source: comScore Mediia Metrix, comScore Marketer*Source: http://www.nber.org/cycles/sept2010.html , National Bureau of EconomicResearch

The Job Search category increased in total unique visitors by 98% from December

2007 when the recession began to July 2010.Despite the report from the National Bureau of Economic Research* stating therecession formally ended in June 2009, the unemployment rate is still high andcorrespondingly, total minutes spent on Job Search sites jumped 233% and the

number of Job Searches increased 290% in the same time period.

-

50

100

150

200

250

300

350

400

450

500

-

5,000

10,000

15,000

20,000

25,000

30,000

Jul-2007 Oct-2007 Jan-2008 Apr-2008 Jul-2008 Oct-2008 Jan-2009 Apr-2009 Jul-2009 Oct-2009 Jan-2010 Apr-2010 Jul-2010

T o t a

l M i n u

t e s

( M M )

T o

t a l U n i q u e

V i s i t o r s

( 0 0 0 )

Total Unique Visitors (000)

Total Minutes (MM)

+98%

+233%
http://www.nber.org/cycles/sept2010.html


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Agenda

Worldwide Context

US Vital Signs



Monetization


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Online Video Viewing Is Growing Strongly with Significant GrowthPotential

July 2010

US Video Viewers 181MM

% Of Internet Users Who ViewedAt Least One Video 85%

% of Video Viewers Who ViewedAt Least One Ad Video 73%

Total # of Viewed Videos 36.5B

YoY Growth in Video Views 71%

Videos per Viewer 201

Viewing Time per Viewer 14 hr, 35 min

Reach of elusive audiences

Better engagement

However, monetization is still a bigchallenge:

User experienceRights for UGC (UserGenerated Content)

Value Drivers of Online VideoAdvertising

Source: comScore Video Metrix, July 2010


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90.0151.2

545.3

91.4

250.5

1,199.1

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

UVs (MM) Videos per Viewer Minutes per Viewer

Females Males

Males Are More Engaged Online Video Viewers than Females


Video Activity By Gender

+120%+66%


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Time Spent Streaming Jumps as Long-Form Content Floods the Web

0

30,000

60,000

90,000

120,000

150,000

180,000

Total Minutes (MM) Videos (MM)

Total US Streaming Minutes and Video ViewsSites heavy withlong-form contenthave burst ontothe scene overthe past year.

Specifically, Huluis now thethirteenth mostpopular videoproperty.

This new contenttype hascontributed to thetime spentstreamingdoubling over thepast year.

+71%

July 2009 July 2010Hours per Viewer 8.3 14.6

Videos per Viewer 134.9 201.2

Minutes per Video 3.7 4.3


+100%


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Where Are People Watching Videos Online?

Google continues todominate in termsof audience size,

fueled by YouTubes143.8MM UVs.

99.7% of Google videoviewers are

watching content,dwarfing the

percentage of

viewers watchingtheir ads (33%)

UVs (MM)

144

59 5748 47 45 42 41 40 40

143

55

0

46 47 44

25

0 0

31

0

20

40

60

80

100

120

140

160Total UVs (MM)

Content UV's (MM)


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Agenda

Worldwide Context

US Vital Signs



Monetization


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202.5 204.1 201.6 206.7 207.9 211.7 214.4 216.0 219.0 217.7220.4 217.9 215.1

106.4 106.8 105.8 106.6 107.2 107.4 108.0 103.1 109.0 108.7110.8 114.4

118.1

-

20.0

40.0

60.0

80.0

100.0

120.0

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

Jul-09 Oct-09 Jan-10 Apr-10 Jul-10

+11%

Change vs.July-09

+6%

Unique Searchers

Searches Per Searcher

Search growth drove the increasing base of unique searchers (215MM in July2010); search intensity also increased by 11% versus July 2009.

The increased search intensity is also evidenced in a 7.8% increase in Searches per Usage Day to9.3 in July 2010.

qSearch 2.0: Trends in the Search Market, contd

Total U.S. Unique Searchers (Millions) vs. Search Intensity

Source: comScore qSearch 2.0


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77.7

26.7

23.8

9.28.4

0

10

20

30

40

50

60

70

80

Jul-09 Oct-09 Jan-10 Apr-10 Jul-10

Change vs.July-09

Google Sites+6%

Yahoo! Sites+11%

Microsoft Sites+55%

AOL LLC-2%

Ask Network-2%

qSearch 2.0: Leading Search Properties

Source: comScore qSearch 2.0

Leading Search Properties: Searches per Searcher

Microsoft, Yahoo!, and Google show intensity growth versus a year ago, which

further contributed to their search increase. Microsofts search property, Bing,shows the greatest increase in intensity at 55% growth since July 2009.


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13.5 15.2

8.1 10.2

21.625.4

Total

Non-Search Engines

Search Engines

Although Search Engines Are Still the Major Players, Search IsntConfined to the Engines Anymore

Site search (non-search engine search) is showing double the year over year growththan search engines, but still represents a smaller percentage of overall searches.

+18%

Source: comScore qSearch 2.0; Search Engines defined as properties fallingunder the Search/Navigation category in qSearch

46%54%

Search Engines

Non-Search Engines

15.2 Billion

10.2 Billion

Share of Search Growth by SearchEngines and Non-Search Engines

Change vs.July-09

+26%

+13%

July 2009 July 2010

Searches (Billions)


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Agenda

Worldwide Context

US Vital Signs



Monetization


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40.7% of Mobile Phone Owners Browse the Mobile Internet, UseApplications or Download Content (Mobile Media Users)

The number of people who are just using voice has declined 15.0% year over year.

In July of 2010, approximately 70% of mobile phone owners used their phones for more than just makingcalls.

Product: MobiLens

Data: Three month average ending July 2010

Country: US N=32,009

Mobile Media = Connected Media (except SMS) in MobiLens

Mobile Media,34.1%

SMS (and notMobile Media),

31.0%

Just Voice,35.0%

Mobile Market Segments - July2009

Mobile Media,40.7%

SMS (and notMobile Media),

29.7%

Just Voice,29.6%

Mobile Market Segments - July2010


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The Demographics for Mobile Internet Browsers by OEM vary

Advertisements targeted at RIM (Blackberry) devices will gain an older, more male demographic.

LG, Android and Samsung device owners are younger and have an even gender split.

Product: MobiLens



RIM

Samsung

Apple

LG Motorola

Android

Nokia

20%

30%

40%

50%

60%

70%

29.0 30.0 31.0 32.0 33.0 34.0 35.0 36.0 37.0

% F

e m a l e

Median Age

Demographic Profile of Mobile Internet Browsers by OEM

Size of bubbles = % of themarketHigher on chart = More female


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Mobile Browsing Genres

The mobile Internet is as much about connecting with friends and family as it is about

viewing news and info.47.5% of Mobile Browsers search, compared to 89% of PC Internet browsers.

Product: MobiLens



News and Weather GenresCommunicating and SharingOther

47.5%45.9%

42.0%36.9%

36.0%30.0%

28.6%28.0%

23.9%23.1%

21.8%21.0%

20.6%20.2%

17.6%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

SearchPersonal Email

Social NetworkingWeather

NewsIM

Sports InformationEntertainment News

Work EmailPhoto or Video Sharing Service

MapsTech News

Stock Quotes or Financial NewsMovie Information

General Reference

% Used Browser

Top Genres for Mobile Browsing


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Mobile Advertising Best Suited for Brands with Targets under 44

Brands Can Choose a Number of Methods to Start a Dialogue with Consumers Using the Mobile Device.

66% of mobile owners use SMS; marketers can use 5-6 digit short codes on ads requestingconsumers to send an SMS

34% of the market browse the mobile Internet. 31% use an app (other than a pre-loaded game).

With over 50% of males between 18-44 using the mobile browser, mobile banner advertisements are anideal way to engage with this audience.

Product: MobiLens



Mobile Media = Connected Media (except SMS) in MobiLens

9%

19%

27%22%

15%

6%3%

Male

13-17

18-24

25-34

35-44

45-54

55-64

65+

11%

19%

25%

19%

14%

8%

3%

Female

13-17

18-24

25-34

35-44

45-54

55-64

65+

% of Mobile Media Users by Age and Gender


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Agenda

Worldwide Context

US Vital Signs


Video Search

Mobile eCommerce

Monetization


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Total e-commerce sales through Q2 2010 were up 7% versus year ago.

$42 $53$67 $82

$102 $123 $130 $130$67

$30 $40

$51$61

$69$77 $84 $80

$44

2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD

$72$93

$117$143

Non-Travel

Travel

+29%

+26%

+22%

+19%

+26%

+33%

+26%

+28%

+20%

+24%+24%

+13%

$171$200

+17%

+20%

+12%

+6%

+9%

+7%

$214

0%

-5%

$209

-2%

e-Commerce Dollar Sales Growth ($ Billions)Source: comScore e-Commerce Measurement

+9%

+5%

+7%

$111

Following a soft 2009, Travel and Non-Travel spending are up 5% and 9%

respectively versus year ago.


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Visitation to the overall retail category grew 15% Y/Y

77.9

37.2

37.0

28.5

21.7

19.7

18.8

18.0

16.7

15.3

Amazon Sites

Wal-Mart

Apple.com WorldwideSites

Target Corporation

NETFLIX.COM

Google ProductSearch

Yahoo! Shopping

Best Buy Sites

Hewlett Packard

Shopzilla.com Sites

Total Unique Visitors (MM) and % Growth vs. YAon Selected Retail Sites in July 2010

Source: comScore Media Metrix

+17%

+12%

-1%

+1%

+47%

+121%

-18%

+7%

+14%

-21%

14.5

14.2

12.5

12.4

12.4

12.2

12.0

10.7

10.4

10.1

Ticketmaster

ValueClickSites

The HomeDepot, Inc.

JCPenneySites

Pronto Sites

SEARS.COM

PriceGrabber

Shopping.com

Dell

Macy's Inc.

+16%

+23%

+8%

+10%

+18%

+15%

+103%

-25%

-15%

23%


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0

20,000

40,000

60,000

80,000

100,000

120,000

Jul-2008 Sep-2008 Nov-2008 Jan-2009 Mar-2009 May-2009 Jul-2009 Sep-2009 Nov-2009 Jan-2010 Mar-2010 May-2010 Jul-2010

Total Unique Visitors (000) and Total Visits (000) to Coupon SitesSource: comScore Media Metrix

Total Unique Visitors (000) Total Visits (000)

Coupon sites continue to grow in importance; category visitors tendto skew female

34.5 million UVs+34% vs. Jul 08

101.1 million visits+56% vs. Jul 08

UV Composition Index by Income UV Composition Index by Gender

Females

Males

114

86

97

104

101

104

Under$60K

$60K -$74,999

$75K -$99,999

$100Kor more


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0

200

400

600

800

1000

1200

1400

1600

1800

2000

HAUTELOOK.COM IDEELI.COM GILT.COM RUELALA.COM

Flash Sale sites continue to gain traction with high growth rates Y/Y

HauteLook+12% vs. July 09

Ideeli+382% vs. July 09

Gilt+46% vs. July 09

RueLaLa+15% vs. July 09

U.S. Unique Visitors to Flash Sale SitesSource: comScore Media Metrix


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Agenda

Worldwide Context

US Vital Signs


Video Search

Mobile eCommerce

Monetization

In 2009 and continuing into 2010, decreasing ad dollars shifted away from


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8.17.1

6.07.3

9.6

12.5

16.9

21.223.4 22.7

12.1

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1 &2: 2010

?

g , g yEmail, Lead Generation, and Classifieds towards Search, Display Ads,and Online Video

Internet Advertising Revenues ($ Billions)Internet Advertising Revenues

by Ad Format

Applying historical seasonal data, Q1 and Q2s 2010revenues of $12.1 billion look to make 2010 the highest

annual year, exceeding 2008 as the previous highestannual total.

47% 47%

22% 23%

7% 6%

4% 5%2%

2%

10%10%

7% 5%1% 1%

Q2 2009 Q2 2010

Sponsorship

Leads/Referrals

Classifieds

Display/Banner Ads

Search

Source: IAB Internet Advertising Revenue First Half-Year Results Report 2010

+76% -12% +22%-15%

+32%+30%

+35%

Rich Media

+26%

Video

E-mail

+10%

$5.4 B $6.2 B

-3%


36/37


Who are the top advertisers in the online market in July?

0

1,000,0002,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,0008,000,000

9,000,000

T o t a l D i s p

l a y

A d V i e w s

( 0 0 0 ) Top 10 Advertisers

Source: comScore Ad Metrix, July 2010

Top advertisers include financial services such as Experian, Scottrade, and Progressive Corporation(Progressive.com) along with telecom companies, AT&T and Verizon. The education company ApolloGroup, Inc. (Universityofphoenix.com) ranks within the top 10, most likely targeting applicants for the

coming school year.


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Thank You!

For More Information:

Email: [email protected]

Twitter: @comScore

Deck & Audio posted at comScore.com

Elise NeelVP, Marketing [email protected]

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