Festival of Media | 30 April 2013

@comScore

Brave New Digital World from Content to Commerce

There are two emerging ways that value is

being created in the Brave New Digital World

#1 Multi-platform media usage is

creating new monetization

opportunities

#2 The power of targeted digital

advertising is driving growth

63%

Desktop

Smartphones and Tablets

Drive 1 in 3 Minutes Spent Online

Share of Digital Media Time:

Desktop vs. Mobile (Smartphone +Tablet)

37% Mobile

+

Multi-platform: Top web properties extend their audience reach significantly

through mobile channels. About half of visitors of many properties use

mobile. Mobile-only access is 20% or more of audience for many properties

0 50,000 100,000 150,000 200,000 250,000

Google Sites

Yahoo! Sites

Facebook

Microsoft Sites

Amazon Sites

AOL, Inc.

Glam Media

Apple Inc.

Wikimedia Foundation Sites

CBS Interactive

Top 10 Properties Multi-Platform Audiences Unique Visitors (000) by Platform

Source: comScore Media Metrix Multi-Platform, US, Mar-2013

Desktop Only Desktop + Mobile Mobile Only

43

Multi-platform: Smartphones and tablets have driven a doubling of

time spent with digital media in the last three years. In the aggregate,

no evidence of cannibalization of desktop

Feb-2010 Feb-2013

890

451

Total Internet Time Spent

(Billions of Minutes) Source: comScore Media Metrix & Mobile Metrix, US

+20%

+97%

+389%

388

63

467

308

115 N/A

43

Multi-platform: Desktop consumption of Weather content has declined, but

because of extensive phone use, overall engagement with digital platforms

has increased

Feb-2010 Feb-2013

4,169

3,641

Time Spent on Weather Sites

(Millions of Minutes) Source: comScore Media Metrix & Mobile Metrix, US

-46%

+15%

+385%

3,214

427

1,723

2,073

373 N/A

Multi-platform: Maps have benefitted massively from phone usage

43

5,811

2,303

Time Spent on Map Sites

(Millions of Minutes) Source: comScore Media Metrix & Mobile Metrix, US

-13%

+152%

+386%

1,406

897

1,217

4,355

239

Feb-2010 Feb-2013

N/A

Multi-platform: Engagement with Sports content has seen tremendous

growth across all platforms, including desktop

43

12,388

7,208

Time Spent on Sport Sites

(Millions of Minutes) Source: comScore Media Metrix & Mobile Metrix, US

+72%

+385%

6,479

729

3,537

1,052

Feb-2010 Feb-2013

N/A

+20% 7,799

The NBC Billion Dollar

Research Lab

Rise of the Digital Omnivore

Multi-platform: Billion Dollar Lab Headlines

TV is King

Alternative screens are additive

– Not a “zero sum game”

Digital complements TV

Social Media amplifies event and engages viewers

Multi-platform and simultaneous use

– “The New Normal”

^

Multi-platform: Percent time spent on Olympic content by platform

Source: comScore Custom Analysis for NBC

TV 89%

Digital 11%

PC/Laptop

Mobile

Tablet

Multi-platform: More screens = more time spent on media in total

Source: comScore Custom Analysis for NBC

4hr 19min 4hr 28min 5hr 6hr 7min

50 min 59 min

55 min 51 min

40 min

47 min

Tablet

Mobile

PC

TV

4hr 19min

5hr 18min

6hr 50min

8hr 29min

Time Spent Following Olympics Content by Device

TV

Only

TV +

PC/Laptop TV +

PC/Laptop +

Mobile

TV +

PC/Laptop +

Mobile +

Tablet

Multi-platform: Simultaneous viewing

Source: comScore Single Source Multi-Platform Study

55%

45%

Men Women

Gender

Age

53% 54% 54%

18-24 25-54 55+

75%

25%

TV Only TV + Second Screen

Device Usage Time When Watching TV

Multi Screen Olympic Viewers (TV + 1 other platform): 100%

Simultaneous Viewers (TV + Second Screen): 54%

Olympics Followers

The power of targeted

digital advertising drives

optimization

“Commerce has become marketing and marketing

has become commerce.” Rishad Tobaccowala

Chief Strategy and Innovation Officer

Vivaki

Advertising Commerce

Targeted advertising: Dynamics are changing, with commerce fueling

advertising in tight feedback loop

Median Offline Sales Lift in 3-Months from Digital Advertising for CPG Brands

Among Consumers Receiving Ads Source: comScore AdEffx Offline Sales Lift, Norms for CPG, Mar-2011

Targeted advertising: Purchase-based targeting drives higher lifts in in-store

sales than campaigns that don’t leverage this type of targeting

+21%

+38%

With Purchase-Based

Targeting No Targeting

0 50,000 100,000 150,000 200,000 250,000

Google Sites

Yahoo! Sites

Facebook

Microsoft Sites

Amazon Sites

AOL, Inc.

Glam Media

Apple Inc.

Wikimedia Foundation Sites

CBS Interactive

Top 10 Properties Multi-Platform Audiences Unique Visitors (000) by Platform

Source: comScore Media Metrix Multi-Platform, US, Mar-2013

Desktop Only Desktop + Mobile Mobile Only

Targeted advertising: Top web properties extend their audience reach

significantly through mobile channels

Amazon accounts for

1 in every 6

e-commerce dollars

spent in the U.S.

187 million

164 million

Targeted advertising: Amazon has become a major player as an advertising

platform, offering ad delivery based on a wealth of browsing and buying data

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Oct-

201

0

No

v-2

01

0

Dec-2

01

0

Jan

-20

11

Feb

-201

1

Ma

r-201

1

Ap

r-20

11

Ma

y-2

01

1

Ju

n-2

01

1

Ju

l-20

11

Au

g-2

01

1

Sep

-20

11

Oct-

201

1

No

v-2

01

1

Dec-2

01

1

Jan

-20

12

Feb

-201

2

Ma

r-201

2

Ap

r-20

12

Ma

y-2

01

2

Ju

n-2

01

2

Ju

l-20

12

Au

g-2

01

2

Sep

-20

12

Oc

t-2

01

2

No

v-2

01

2

Dec-2

01

2

Jan

-20

13

Feb

-201

3

Amazon Display Ad Impressions (in Billions) Source: comScore Ad Metrix, US

+40% Y/Y

2,460

1,359

1,329

1,266

773

738

689

660

610

564

531

Weight Watchers

AT&T

Procter & Gamble

Amazon.com

Capella University

ING Groep

American Express

Verizon

Google

Equifax

Deutsche Telekom

Top Advertisers on Amazon by Display Ad Impressions (in Millions)

Source: comScore Ad Metrix, US, Feb-2013

Targeted advertising: Major advertisers have take notice of Amazon’s

valuable targeting advantage

Many of these

advertisers sell a

large majority of their

products offline

$994

$9,905

$1,263

$11,550

Online Offline

Unexposed Exposed

Dollar Sales Lift Among Households

Exposed to Online Advertising

% Lift: 17%

% Lift: 27%

Despite click rates of only 0.1%, display ads can successfully lift

retailer sales – both online and offline

Source: “Whither the Click?” 139 comScore studies in the

June 2009 Journal of Advertising Research

Exposure to display ads

doesn’t just impact online

sales – it lifts in-store

sales as well

The absolute dollar lift

in offline sales is 5x higher

than the lift in e-commerce

sales

The click is misleading

as a measure of campaign

effectiveness

Conclusions

Targeted advertising: Monitoring campaign execution in real-time

Kellogg’s digital campaign monitoring dashboard from comScore

In-Market Campaign Optimization by Publisher

Based on Cost and Effectiveness

• Opportunity to optimize - budgets follow performance

• Multiple publishers, each with high reach potential

• Wide variance in performance observed real-time

Brand X - Q3/Q4

Publisher Avg

Frequency

Impressions

in Target

Impressions

in View

Lift in

Awareness CPM

1 3.5 24.5% 83% 5.74 $2.44

2 3.0 16.9% 91% 0.55 $9.08

3 8.4 23.5% 71% 0 $8.62

ROI

3X

6x

Year 1 Year 2 1H Year 3

Targeted advertising: Is Kellogg’s digital strategy working?

Absolutely!

Implemented new digital strategy and analytics in first half of year 3

ROI results from their first two Brand Market Mix Models

ROI 2X

5X

Year 1 Year 2 1H Year 3

Brand 1 ROI Brand 2 ROI

6X

Succeeding in this Brave New Digital World

• It’s a multi-platform world

• More screens means more overall consumption: not a zero sum game

• Media companies and retailers are extending the total reach of their

audience via smartphones and tablets

• The power of digital is in targeting

• Targeting according to behavior: buying and /or browsing

• Emergence of the retailer as a targeted advertising platform

• Real-time optimization of digital media plan delivery increases

targeting accuracy, viewability and ROI

Thank you!

Festival of Media | 30 April 2013

@comScore

Brave New Digital World from Content to Commerce