Key Trends in online audio and video

Key Trends In Online Audio and Video Unparalleled Insight Into Behavior and Attitudes™ CONGRATULATIONS … WE ARE MAINSTREAM MEDIA !! Unparalleled Insight Into Behavior and Attitudes™ New York Times: Tuesday, May 16, 2006 Advertising Stuart Elliott NBC Looks Beyond TV For a Prime-Time Revival “NBC, eager to improve its ratings and advertising sales, is counting on digital media as much as television for a comeback in the 2006-7 season.” proprietary and confidential New York Times: Tuesday, May 16, 2006 Advertising Stuart Elliott A TIVO VOTE “A Large Agency … made a (7-figure) deal with TiVo… indicative of the increasing interest among advertisers in expanding beyond traditional media like broadcast TV to digital venues like DVR’s, Websites, iPods …” proprietary and confidential Why now? The Stars Have Aligned.  170 Million U.S. consumers use the Internet at least once per month.  Over 650 Million consumers Worldwide access the Web!  Internet users watch 5 hours less TV per week.  Apple’s iPods sold at an annualized rate of 26 million in Q4 2005 … Technology is increasingly portable and powerful.  iTunes announced one million video downloads in 20 days.  IPTV market will grow at a compounded annual growth rate of 78%, from 3.7 million subscribers this year, to 36.9 million in 2009. proprietary and confidential In just over 10 years, global online advertising has grown from zero to $19 Billion It will more than quadruple in the next 10 …. proprietary and confidential 50% Of Advertisers Believe TV Advertising Will Lose Effectiveness According To Forrester Research $18,000 Network Ad Revenues $(mm) Network Prime Time Ratings 25% $16,000 $14,000 20% $12,000 15% $10,000 $8,000 10% $6,000 $4,000 5% $2,000 $0 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 0% proprietary and confidential “The future of advertising is the Internet” - Bill Gates, November 2005 Unparalleled Insight Into Behavior and Attitudes™ Broadband Now Reaches Over Two-Thirds of Home Internet Users, Up From 50% One Year ago 120% 100% 80% 60% 40% 20% 0% Home Work University proprietary and confidential bM 05 ar -0 Ap 5 rM 05 ay -0 Ju 5 n0 Ju 5 lA u 05 gS e 05 p0 O 5 ct N 05 ov D 05 ec -0 Ja 5 nF e 06 b0 M 6 ar A p 06 r-0 6 Source: comScore Media Metrix; U.S. Market Fe The Increase In Broadband Penetration Has a Profound Effect On Content Preferences Increase in BB Bandwidth Speed: Rich Media • Games: 42% reach, 150 mins/uv Always On: Tasks • Banking: 41% reach, UV up 12% • Health: 40% reach, UV up 15% • Entertainment-Music: 47% reach, UV up 9% • Multimedia: 40% reach, UV up 10% • TV: 40% reach, UV up 7% • Entertainment-Movies: 37% reach, UV up 14% • Radio: 20% reach, UV up 30% • Maps: 35% reach, UV up 25% • Real Estate: 20% reach, UV up 10% • Classifieds: 17% reach, UV up 36% Source: comScore Media Metrix proprietary and confidential Broadband Users Are More Valuable  Broadband Users ♦ Spend $231 Per Month Online (NB: $177) ♦ Are Online for twice as long every month ♦ Search 1.6x as Many Times Per Month ♦ Consume 2.2x More Pages Per Month ♦ Visit the Internet twice as Often Source: comScore Marketing Solutions proprietary and confidential Who is comScore? Unparalleled Insight Into Behavior and Attitudes™ Recognized for Outstanding Growth and Innovation America’s Fastest Growing Private Companies comScore ranked 97th among the nation’s fastest growing privately held firms. November 2004 Marketing News Honomichl Top 50 Fifth Fastest Growing Research Firm Currently ranked the 30th largest U.S. research firm – up ten spots from previous year. June 2004 Top 100 Innovative Companies Named one of the 100 companies that will shape the next year in technology. December 2004 Rising Star Named one of only three “Rising Stars” among Virginia-based technology companies. October 2004 High Tech Award Recognized as a technology leader for successfully developing innovative products. November 2004 World’s Largest Database Grand prize winner for developing the largest NT decision support warehouse. December 2003 proprietary and confidential comScore Networks  2.0 million member panel of consumers who have agreed to be continuously and passively observed  Proprietary technology collects all Internet activity  All data associated with streaming: ♦ User/browser demographics ♦ All streaming by ports ♦ Complete URL/clickstream data, referring URL ♦ Streaming player type ♦ Streaming data type (audio/video) ♦ Streaming protocol used ♦ Duration metrics ♦ File sizes transmitted proprietary and confidential Experience Advising Hundreds of Leading Businesses (partial list) Pharma Financial Retail/CPG Travel/Auto Media Media Technology proprietary and confidential And Most Leading Agencies proprietary and confidential Let’s Look at Some Numbers … proprietary and confidential comScore Video Metrix TM  Beta Launch Spring 2006  Full Release Available Now  Demo Profiles Report below  Make key decisions for buying/selling ad space  Competitive insight  Trending  Marketplace view Sample data proprietary and confidential comScore Video Metrix TM  Full Release Available Now  Categories Report Below Sample data proprietary and confidential comScore Video Metrix TM  Full Release Available Now  Ad Rotation Report below How many unique streamers would I reach if I bought 20% of the streaming ad inventory available on Website XYZ? Sample data proprietary and confidential Streaming Video Now Reaches Almost 50% Of Internet Users! Total U.S. Internet Users (Millions) % Internet Users who Streamed 180 Total Internet Users Percent of Internet Users Who Streamed 175 55% 50% 45% 40% 170 35% 30% 165 25% 20% 160 15% 10% 155 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 5% Source: comScore Video Metrix proprietary and confidential Video Reaches More Than Many Popular And Growing Categories Of Communication ♦ Email ♦ Blogging ♦ Games ♦ Social Networking ♦ Personalization ♦ Classifieds  42% Internet Reach  28% Internet Reach  28% Internet Reach  24% Internet Reach  21% Internet Reach  17% Internet Reach Source: comScore Media Metrix proprietary and confidential What About Internet Radio?  Number of Internet users who listened to one of the leading online radio stations in a typical week in March 2006: A. Under 2 Million B. 2 to 3 Million C. 3 to 5 Million D. Lots and Lots E. Over 6.8 Million Source: comScore Arbitron Online Radio Ratings; Cume Listeners per Average Week (millions) proprietary and confidential Since October, The Number Of Consumers Streaming Video Has Grown By Another 11.6 Million People! 90,000,000 Number of People Streaming 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Source: comScore Video Metrix proprietary and confidential March Madness And Other Events Drove The Number Of Streams To Almost 4 Billion In March. 90,000,000 Streamers 80,000,000 Streams 3,500,000,000 4,000,000,000 70,000,000 3,000,000,000 60,000,000 2,500,000,000 50,000,000 2,000,000,000 40,000,000 1,500,000,000 30,000,000 1,000,000,000 20,000,000 10,000,000 500,000,000 0 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 0 Source: comScore Video Metrix proprietary and confidential “March Madness On Demand™ Proves Value of Streaming to Internet Advertisers”  In the inaugural offering of free, live online content - CBS SportsLine, CBS Sports and the NCAA teamed up to broadcast live Internet video for the first three rounds of the NCAA Tournament as part of their March Madness On Demand™ coverage. comScore data showed that live coverage delivered 14.9 million streams during the first two days (Thursday and Friday, March 16-17) of the first round of games. ♦ 77 percent of which originated from work locations. Over the four days of the first two rounds (March 16 – 19), a total of 16.4 million streams were delivered.   During the first day of the tournament, 700,000 unique visitors entered the “waiting room” with 608,000 of them eventually accessing the live video feed. ♦ Of those accessing the feed, 79 percent (or 479,000) actually viewed the games. The second day of action saw 552,000 unique visitors enter the waiting room, with 524,000 of them accessing the video feed and 462,000 (88 percent) tuning into the games. proprietary and confidential Portals, Leaders In Terrestrial Radio, And Creative New Applications Have All Gathered Strong Audiences Average Weekly Listeners (cume) - March 2006 2,440,900 1,800,600 1,203,300 888,500 661,800 LAUNCHcast Radio Radio @ AOL ClearChannel MSN Radio/ WMR Network Live365 Source: comScore Arbitron Online Radio Ratings proprietary and confidential So What Do These Consumers Look Like … Demographically? Unparalleled Insight Into Behavior and Attitudes™ 38% Female 62% Male Source: comScore Video Metrix proprietary and confidential 48% Female 52% Male Source: comScore Video Metrix, March 2006 proprietary and confidential From All Internet Locations Percent of Monthly Audience That Streams  Regardless of location, consumers are streaming video content.  Even over 40% of Internet users from home see a stream, making that audience over 60 million consumers! 51% 43% 54% Home Work University Number of Streamers by Location (Millions)* 61.5 27.2 7.7 Home Source: comScore Video Metrix, March 2006 proprietary and confidential Work University *Includes duplication of Home & Work 3 In Every 10 Consumers Who Stream Are In The 35 To 49 Year Old Age Group. % of Streamers by Age Group 30.8% 13.6% 14.1% 16.0% 15.5% 9.9% 2 to 17 proprietary and confidential 18 to 24 25 to 34 35 to 49 50 to 54 55+ Source: comScore Video Metrix, March 2006 The Indices Show That Younger Web Users Skew Towards Video… That Segment Remains Small and In Absolute Terms The Largest Consumers Are The Older Generation. 30.8% % of Streamers by Age Group 76 119 14.1% 109 16.0% 110 93 93 15.5% 13.6% 9.9% 2 to 17 proprietary and confidential 18 to 24 25 to 34 35 to 49 50 to 54 55+ Source: comScore Video Metrix, March 2006 Advertisers Should Not Think Of Video As Simply A Medium To Target Kids … Males 18 to 24 6.4% Males 2 to 17 6.5% Females 2 to 17 7.1% Males 35 to 49 16.5% Females 18 to 24 7.7% Males 50+ 14.5% Females 25 to 34 7.9% Males 25 to 34 8.1% Source: comScore Video Metrix, March 2006 proprietary and confidential Females 35 to 49 14.4% Females 50+ 11.0% Online Video is an Excellent Way to Reach the Primetime and Daytime Audiences Percent of Internet Users Reached Weekdays 37.3% Weekends 23.8% 20.3% 17.2% 11.4% 19.0% 13.7% 10.7% All Week Prime Early Morning Daytime Early Fringe Late Fringe Daytime Morning Afternoon Source: comScore Video Metrix proprietary and confidential Types of Sites For Streamed Content Percent of Video Users by Content Category Entertainment Portals Services News/Information Retail Community Sports Games proprietary and confidential 92% 73% 32% 16% 11% 10% 6% 5% Categories under 5%: • Regional/Local • Education • Hobbies/Lifestyle • Automotive • Health • Telecommunications Let’s Recap …  Internet Streaming Video is Mainstream ♦ Enjoyed by millions of people every day ♦ Growth is facilitated by technology, device portability, and consumer creativity  Media Companies are Reacting ♦ Internet Video “Up-Front” ♦ “Digital Platforms” instead of simply TV ♦ Very creative applications and Internet-specific programming  Advertising Spending Increasing ♦ Need for tools and measurement has never been more important proprietary and confidential Thank You! Questions? Leslie Darling ldarling@comscore.com (212) 497 1733 Unparalleled Insight Into Behavior and Attitudes™