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0626-jeffries-53748126

VIEWS: 30 PAGES: 23

									                                                                             JEFFRIES & COMPANY
                                                                             Moderator: Youssef Squali
                                                                                 06-26-08/9:00 am CT
                                                                              Confirmation #53748126
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                                  JEFFRIES & COMPANY

                                 Moderator: Youssef Squali
                                      June 26, 2008
                                       9:00 am CT



Operator:         Good morning. My name is (Kashina) and I will be your conference operator
                  today. At this time I would like to welcome everyone to the How Does
                  Google Ad Planner Alter the Market Opportunity for comScore conference
                  call.


                  All lines have been placed on mute to prevent any background noise. After the
                  speaker’s remarks there will be a question and answer session.


                  If you would like to ask a question during this time simply press star then the
                  number 1 on your telephone keypad. If you would like to withdraw your
                  question, press the pound key.


                  Thank you. Mr. Squali, you may begin your conference.


Youssef Squali:   Thank you very much (Kashina). Good morning everyone. My name is
                  Youssef Squali. I’m the Internet and Media Analyst for Jefferies. I’m very
                  much happy to have the management of comScore for a Q&A session this
                  morning. comScore is a buy rated stock for us.
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                                                                         Moderator: Youssef Squali
                                                                             06-26-08/9:00 am CT
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              The topic is Google’s Ad Planner and how it alters the competitive landscape
              for comScore and for the other players in general.


              Ad Planners as many of you know is a research tool that helps ad buyers and
              planners decide where to place ads for maximum yield and it does it in an
              automated fashion.


              Much has been written about this product in the last couple of days which is
              being released by invitation only so far. So I am assuming that everybody has
              some familiarity with it.


              With me on the call this morning is Magid Abraham CEO and John Green
              CFO of comScore. And before I start with the questions I think John wants to
              go through the Safe Harbor provision. John?


John Green:   Thank you very much Youssef. So good morning. During the course of
              today’s conference call including any question and answer period
              representatives of the company may make forward-looking statements within
              the meaning of Section 27a of the Securities Act of 1933 and Section 21e of
              the Securities and Exchange Act of 1934 regarding future events with the
              financial performance of the company that involve risks and uncertainties
              including without limitation statements regarding the company’s expectations
              regarding the strength of the company’s business, expectation of customer
              growth, expectations regarding the company’s product, expectations regarding
              competitive products and the company’s competitive position and sales
              strategies and expectations.


              Such statements are only predictions based on management’s current expect
              and actual events or results could differ materially from those predictions due
              to a number of risks and uncertainties including those enumerated in the
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                                                                              Moderator: Youssef Squali
                                                                                  06-26-08/9:00 am CT
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                  documents the company files from time to time with the SEC.


                  This document specifically includes the companies form 10K for the year
                  ended December 31, 2007 and Form 10Q for the quarter ended March 31,
                  2008 and contain and identify important factors that could cause actual results
                  to differ materially from those contained in our projections or forward-looking
                  statements.


                  We caution you not to place undue reliance on any forward-looking
                  statements discussed on today’s call which speak only as of today. We do not
                  undertake any obligation to publicly update any forward-looking statements to
                  reflect new information after today’s call or to reflect the occurrence of
                  unanticipated events. Thanks Youssef.


Youssef Squali:   Thank you. Okay, so I guess just to set the stage for questions to come, Magid
                  can you kind of compare and contrast for us just Google’s recently launched
                  products, the Ad Planner and comScore’s Media Metrix which as far as we
                  can tell is kind of the closest comp here?


                  So can you tell us effectively just what marketers and publishers can and
                  cannot do with both products?


Magid Abraham: Sure. First of all I want to caution everyone that these are very preliminary
                  impressions of the product. And, you know, as we gain more information we
                  obviously get a firmer view of the product.


                  So yesterday afternoon we were able to get access to the product and be able
                  to look at data in more detail so we have a better point of view today than we
                  had yesterday.
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But there are still the possibilities of having some factual mistakes based on
an early look.


So example yesterday morning I mentioned that monthly reach is not
something that was available in the product. It turns out that it is available in
the product at least to some estimates although the data is bubbling in terms of
what’s in it. So with that caveat here is what we know.


The positioning of the product Ad Planner is to help to identify a site your
audience is likely to visit so you can make better informed decisions. And so
it allows audience to - it allows users to identify audiences based on
demographics or other sites they visit.


So for instance, if you want to look at an audience that’s similar to the
audience that’s visited by WebMD, you know, you can identify sites that
deliver that.


And noteworthy he is that you can have - there’s a checkbox in there where
you’d be looking at the sites that participate in the Google Ad network. So it’s
a clear design to make it easy for a user to find out which sites within the
Google Ad network have duplication with a branded or premium site and will
make it easier to place it by being able to target the sites on a Google ad
network where that’s - where the audience seems to be likely to be there.


Now in terms of comparing the offerings, Ad Planner does a small portion of
what Media Metrix’s does.


So just to give you a list of some of the features not there, so we break out
home versus work versus university. We have a (additionally) hierarchy that
has multiple levels in it like property channel, sub channel, et cetera. That
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right now the Ad Planner product gives you data only at the domain level.


So as a result if you are doing let’s say a media plan and you want to include
let’s say Yahoo Sports in the sports category you cannot really do that. The
only thing you can include is Yahoo.com.


An ad network view, if you are planning on placing advertising on an
advertising network like advertising.com or ValueClick et cetera, Yahoo! Ad
Network, you know, that’s missing.


Custom views of companies that represent a collection of sites such as
(Glam), measurement of duration of time spent, session, day part,
segmentation by heavy, medium and light users, segmentation by content
consumption so that we can identify people that are heavy finance users,
sports users, health and entertainment so you can profile a particular site based
on that segmentation by PRISM code action Personix customer segmentation,
source loss reports.


We deliver data. It is possible to go to the URL level of detail to identify the
audience and create a custom entity on-the-fly.


We segment people on their buying power based on the transaction data that
we collect in our database that’s not available here.


And then finally we have a very sophisticated region frequency tool which is
very important in planning campaigns because ultimately what advertising
agencies are looking for is if I design a campaign over the next six weeks,
what is the reach, what is the frequency. And, you know, those are things that,
you know, are not available there.
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Youssef Squali:   So - go ahead. I’m sorry.


Magid Abraham: If you keep that in mind you also need to sort of step out into the other
                  comScore products that are available for an agency. So you have plan metrics
                  which allows you to target users on the basis of off-line attributes set as intent
                  to purchase a car in the next six months or are you the primary grocery
                  shopper in your household, what amount of money did you spend in the last
                  30 days, what kind of financial activities are you planning to engage in?


                  With ad metrics we deliver total number of display ad impressions. We
                  deliver very important information in terms of the spending by advertisers
                  with each gives an advertiser or an agency share of voice within a particular
                  category.


                  And that’s important in determining the level of advertising budget that a
                  client should be spending.


                  It’s also important for publishers so they can know which advertisers they
                  have an opportunity with. We can deliver gross rating points or GRPs post
                  buy analysis, tracking ad campaigns for ad created. We have video metrics
                  which measure video media consumption. We have end metrics which
                  measures mobile and class media.


                  So we have a compelling product suite that makes it very compelling for an
                  agency to use, not just a point solution.


                  So even if you - even if Ad Planner, you know, had a lot of utility on certain
                  aspects which, you know, we talk about all the things that are it doesn’t have,
                  it does not really fulfill all the agency’s needs.
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                  And we know like what happened in the Web analytics business. So if you
                  compare Google Analytics which is a free product comparing - compared to
                  Amateur, you know, people buy Amateur despite the fact that there is a free
                  alternative and actually a pretty good free alternative.


                  And the reason is that for the large clients it is a question of - it is a question
                  of sophistication, does the product have all the functionality that I need and
                  breadth of offering.


                  And then the second reason is concern about new neutrality, concern about the
                  security of the data. And this is despite the fact that, you know, Google goes
                  to great lengths to assure people that the data will not be used without their -
                  without the company’s consent.


                  So we think we face a very similar situation here where if you are an agency
                  and you’re looking for a complete sophisticated suite of solution, you know,
                  we are a very compelling choice for them.


Youssef Squali:   You covered a lot of stuff that I want to go back and cover in a little more
                  detail. But to the best of your knowledge is there a structural issue with the
                  way Google collects the data that’s preventing it from over time expanding the
                  product offering and being able to match several of the - the shortcomings that
                  you just pointed to right now?


Magid Abraham: You know, what you can do when you have software on your machine is you
                  can capture a lot more data that - then the data that flows across a Web server,
                  a third party Web server for that.


                  So for instance, all the e-commerce data that we capture is data that requires
                  access to secure data and that’s not structurally available.
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The other thing that we do when we are on a machine is with algorithms based
on the timing of keystrokes and the mouse clicks, we are able to differentiate
the different users who will use a particular machine.


And that as you know is very important for advertising, planning and for
agencies to be able to differentiate between those two.


There is a lot of speculation about where the data that Google is using for Ad
Planner and, you know, the - you know, the (sequence) from Google have
been very sort of like it includes analytics data and third-party data, panel
option data et cetera.


The speculation is that in order for them to claim millions of users, in order
for them to represent sites that are not on Google Analytics, that they are
actually using the Google toolbar data.


And the Google toolbar data has a couple of things about it. One is that the
toolbar ID is really a machine ID not a person ID. Because of the toolbars on
the machine anybody that’s using it is going to be transmitted with that ID. So
people versus person is an issue.


The second thing about the toolbar is that, you know, every toolbar whether it
is the Google toolbar or the Yahoo! Toolbar, the MSM toolbar, et cetera, is
(buy) toward the site that offers it. So the Yahoo! toolbar, those users tend to
be heavier Yahoo! users and therefore lower competitive users.


The same is true of the Google toolbar. But even going beyond that buyers,
the toolbar users tend to be heavier users, not of the Internet overall of search.
And there are indications that they’re actually also lighter users of branded or
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                  destination sites.


                  And the reason is that they rely on search to get them to where they want to be
                  rather than going to a particular site to seek the information.


Youssef Squali:   From the feedback that you’ve gotten so far -- and I understand its two days
                  worth of feedback -- but from that initial feedback is there any conclusions
                  that you can draw from the size of their analytics versus what you guys
                  collect?


Magid Abraham: Well so there’s sort of a variety of feedback. You know the psychology
                  yesterday or the day before actually shifted from this is a comScore killer to
                  lots of questions about the offering from a number of standpoints.


                  So one of the feedback that we’ve heard is transparency and neutrality.
                  They’re all very important issues for ad agencies. We give you a couple of
                  quotes, one that are sort of publicly available.


                  One is a quote from a CEO of Asia North America. It says for an advertiser
                  the last thing you want to do is to have your advisor be the same person as you
                  are spending money with.


                  So clearly, you know, the agencies want to guard the roll of an adviser and
                  don’t want to be dis-intermediated.


                  Another comment was I do think it’s funny that they represent this tool as
                  designed for agencies. But I am with you (Jim), this is one more step forward
                  towards giving the masses the tools to do it themselves without needing an
                  agency. You know, lots of concerns about privacy, transparency, et cetera.
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                  And then, you know, clearly the tool is the designed to, you know, build
                  Google’s display business and increase their share of display business.


                  In particular, it has the potential of shifting audiences from premium branded
                  sites like a WebMD to the two types of sites that are on the Google network.


                  So, you know, the typical Ad Planner application is here’s the WebMD
                  audience. Give me sites that deliver that kind of audience and in particular
                  give me sites that are on the Google ad network.


                  So in terms of data comparisons it is actually very interesting. So we see some
                  of the data and, you know, actually sort of - some of the comparisons are quite
                  puzzling.


                  So for instance eBay, they show it as 45 million. We show it as 53.6 million.
                  MapQuest is 27 versus 48 that we show. Apple 15 versus 31, Target, 13
                  versus 30, Wal-Mart, Best Buy, Bank of America, Chase, and USPS et cetera.


                  So across a myriad of sites they are below our estimate in terms of unique
                  visitors. And if I knew more about where the data source is what the exact
                  data source is I could - you know I could maybe (chart it), some hypothesis.


Youssef Squali:   Does (this go) tell you may be that they may be generating more data then -
                  from the toolbar then third party for instance?


Magid Abraham: Yes. I mean if the data is third party, you know, one of the things that’s
                  remarkable about the third party estimates is that while there are some
                  differences between them, by and large they are consistent at least when you
                  compare them to ad server data.
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And, you know, one of the things that you commonly here is publishers,
particularly small publishers saying oh, you know, the sales data whether it’s
comScore or Nielsen or Compete or whoever under represents my publisher
data by a factor of 2 or 3 or whatever. That’s a very, very common complaint
that you hear.


And we have advance, you know, explanations for that having to do with
could be deletion, could be rejection, push traffic, (pop) traffic, et cetera, et
cetera.


But what’s really interesting here is that the publishers now are finding out
that, you know, ad planner data provided by Google even lower than the data
that is being provided through panel data sources.


So for instance there’s a quote from one publisher, he says UVs according to
Google Analytics are at least double the number published on
trends.google.com.


Forbes.com, their daily UVs according to Ad Planner is about 150,000 to
Media Metrix’ 250,000.


You know, Forbes.com is one of those sites that I have heard complain in the
past some about under representing their Web logs.


So net when you look at it, whatever data source is being used here, the end
result of it is the data is not only far off the Web logs or the server type data,
but it is pretty far off from the existing data sources that have, you know, at
least from the agency world pretty broad buy in terms of the levels of the
audience.
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                  Another thing that (unintelligible) is also we say that the Web has 490 billion
                  page views. Ad Planner says that they have 150 billion page views. And they
                  are again (throughout) the factor of 3 I’m not sure where that comes from.


Youssef Squali:   Okay. All right, well I guess we’ll have to continue to speculate. On - I guess I
                  want to bring back the conversation to the financial aspects of things.


                  So if we were to isolate the percentage of revenues that are exposed to head-
                  on competition from Ad Planner to you guys, how should we be thinking
                  about it? How much would that be?


Magid Abraham: Well, you know, the most obvious thing, I mean Google will tell you that this
                  is not targeted towards publishers. In fact the invitation only thing will make
                  sure that - or at least they want to grant access to it to agencies and some
                  advertisers.


                  So if you basically said well ad agencies may be the target for this, you know,
                  if you want to put bounds on that area of revenue for us represents about 10%.


                  Now for all the reasons I mentioned earlier in terms of having a more
                  sophisticated offering, having the positioning of being a neutral third party,
                  you know, the amateur versus Google Analytics analogy, et cetera, I think
                  only a fraction of that if any is at risk.


                  And, you know, you still have to step back and say, you know, the agencies
                  need the suite of tools that we offer and bias third party data source,
                  substantial time and money that’s invested in training and the infrastructure
                  needed for comScore product and, you know, lots of concerns about the
                  potential of being dis-intermediated and, you know, not clear that this is a tool
                  that’s in their interest to use and push.
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Youssef Squali:   What about for advertisers?


Magid Abraham: The thing of - the suite of things that we offer for advertisers is very, very
                  different. We offer things like, you know, marketshare of online credit card
                  payments. We offer questions about acquisitions. We have competitive
                  benchmarking within a category, et cetera.


                  Mostly our advertiser business depends on transaction data that we collect.
                  And that’s very different. It’s a totally different animal from what we’re
                  talking about here.


Youssef Squali:   Okay. Okay so bottom line how do you respond to the Ad Planner threat? Do
                  you try to grow the feature or richness of the basic Media Metrix products,
                  maybe bundling the Ad Metrix with it? How do you proceed from here?


Magid Abraham: Well, here know, we have always had our competitive edge competing against
                  our existing competitors is that we’re constantly innovating. We’re a moving
                  target. If you aim at us today, by the time you can get to where we are today
                  we have moved and become a lot more sophisticated. So that’s the standard
                  mode of operation that we’ve always had. And we’ll continue doing that.


                  Now in terms of this particular thing we obviously have a lot of tools that
                  allow us to respond. Bundling is one of them. But we feel good about the data
                  integrity for frankly the first look that we have taken of the data gives us a,
                  you know a good sigh of relief.


                  And we’re not going to (reaction) to anything. We’re going to watch what’s
                  happening in the marketplace.
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You know, I want to tell you that the doomsday scenario if there was a
doomsday scenario, is that you know, this will take hold among the agency
business because it’s free despite the fact that it lacked all these different
things.


And if we absolutely have to -- and I don’t anticipate that this will ever be the
case -- we’ll just give the damn thing for the agencies for free.


So but, you know, we have lots of tools at our disposal before we do that. So,
you know, I think I want to emphasize, right now we’re staying put. There is
no knee-jerk reaction. We feel good about what we have heard from clients.


And, you know, we think that fundamentally this is a smart move by Google
in the sense that it is going to help sell more advertising on their network.


It is also going to encourage, you know, some self-serve media planning by
small advertisers, those advertisers that, you know, very much like in the
search world they’re able to use AdWord and go in and, you know, buy
keywords and whatever.


Now they can buy display advertising presumably at a cheaper rate than they
can buy it going to an agency.


And, you know, they remain well expand the size of the market by drawing in
those users. And I think that that’s probably where, you know, a lot of the
benefit is going to come to them.


I think with the competitors with the sort of the major publishers that they
would deal with, I mean those publishers to the extent this is having any
impact, those publishers are going to rally, you know, around a third party
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                  solution.


                  Not everybody has the resources to duplicate what Google has done. And so it
                  would be important for them to rally around the kinds of solutions that we
                  offer.


                  And I think it’s very possible that for many of these publishers this will
                  increase the size of the relationship with comScore.


Youssef Squali:   Is there a - talking to that point, is there a level size in your mind of a
                  publisher that would react that way versus a smaller publisher that doesn’t
                  really necessarily care?


                  So and to your analogy of that about the Web Analytics and what Omniture is
                  doing versus what Google Analytics is doing et cetera, you know, there tends
                  to be a limit of size whereby if you’re above a certain page views et cetera or
                  about over a certain e-commerce size you go from - I’m sure you’d go for
                  core metrics or another paid product. But if you’re below you wouldn’t.


                  To your mind do you - is there something akin to that on the publisher side for
                  this kind of a product?


Magid Abraham: Well, you know, the primary use of - well one of the key uses of our data is
                  monetization. So if you are a publisher and you want advertising agencies to
                  include you into the campaigns that they use, you need to be able to cite third
                  party data for that. And you need to be able to respond to RFPs that the
                  agencies are pulling out that would be asking for data about your audience.


                  Now if the agencies - if some important agencies, not the important majority
                  of agencies are standardizing on comScore, you really need that data to
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                  respond.


                  And so even if you are a smaller publisher and you want to be on the map as
                  far as the agency and the media world is concerned, you know, you are going
                  to - you are going to have some very compelling reasons to use comScore or
                  Nielsen as long as, you know, Ad Planner doesn’t basically win the entire
                  agency world which, you know, again, we don’t think that that’s going to - it’s
                  very likely to happen at all. You know, that need is always there.


Youssef Squali:   Okay. All right. Before we open it up to other people asking questions, one of
                  the criticisms of panel-based approach is that it often under-represent smaller
                  Web sites on which you just don’t have enough data for it to be statistically
                  significant.


                  Ad Planner seems to be better equipped to handle that shortcoming. First is
                  that a fair assumption in your mind? And if so, is there anything that you,
                  Nielson or any of the others can do to address the potential shortcoming?


Magid Abraham: Well, you know, the under representation is mostly met. So, you know, I gave
                  you a couple of examples of, you know, the UVs among people that are
                  comparing the - or sorry, the Ad Planner numbers to the Google Analytics or
                  their own internal logs where the UVs are at least two or three times lower.


                  So the under-representation, it’s certainly not solved by Google. And I don’t
                  think it’s solved by anybody. I have yet to see a data source, a third party data
                  source that actually does close the gap and, you know, whether you consider
                  comScore net ratings compete and (Qualcast) and now Ad Planner, nothing
                  that has ever come beyond that’s not cookie-based that has essentially deliver
                  a number that’s comfortable to the ad servers.
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                  So, you know, it’s not clear to me that anything beyond cookie deletion
                  nonuser requested traffic, cookie rejection if anything beyond that is really is
                  issue.


                  You know, we’re going through the MRC audit. And it would be interesting
                  to see if at the end of the day when we go through the MRC audit whether any
                  of these gaps will change.


                  You know, my strong belief is that they won’t and that the structural issue is
                  not on our side. It is really on the publisher side as far as the data that’s being
                  measured being unique cookies.


Youssef Squali:   Okay. All right. (Kashina) can we see if there are any questions please?


Operator:         Again, as a reminder to ask an audio question, please press star 1 on your
                  telephone keypad.


                  Your first question comes from a line of Sandeep Swadia.


Sandeep Swadia: Hi (Jim). Thanks for taking my question. Magid, you just mentioned
                  (Qualcast) and even (Alexis). There have been three models existing in the
                  measurement industry. But Google’s entry does, you know, give that site a
                  higher profile.


                  So do you think after Ad Planner you will have to refine your pricing
                  strategy? Would there be any pricing pressures or would it be harder for you
                  to raise prices moving forward?


Magid Abraham: Sure. You know, I think that the alternative of using something that’s free has
                  always existed. And, you know, if somebody actually wanted to use
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                  something that is - they always have that alternative.


                  You know, Ad Planner certainly has a higher profile but it does have relative
                  to some of those other data sources it does have the sort of the neutrality and
                  the transparency argument that, you know, work in the other direction.


                  We have always raised prices on the basis of continuing enhancements that we
                  do that we don’t really charge for when those enhancements are rolled out.


                  You know is it - so at this point I don’t really foresee any changes. And at the
                  most what we will do is we will reduce some of the escalators that we have
                  which we do by just offering people the option of signing up for multi-years.


Sandeep Swadia: Got it. And just one broader question I guess from the transparency
                  perspective. You talked about the speculation around Google’s data sources. It
                  seems that it’s the black box at least at present.


                  So what are your thoughts on so the entire audience measurement industry? I
                  mean I think do you think there will be more demand to provide, you know,
                  higher transparency? And are these crown jewels? And if those demands
                  increase would that have any negative impact on your business?


Magid Abraham: Oh I think that that actually is a good part. I mean we are going through an
                  MRC audit. You know, depending on what the data sources the Google is
                  using if it is actually the toolbar there is just going to be given the inherent
                  biases that exist there, the question is, you know, is that ever going to pass
                  muster?


                  But, you know, transparency I think works in our favor.
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Sandeep Swadia: Got it. Thanks a lot.


Youssef Squali:    And Magid, just kind of a follow-up on that or taking the other side of it can -
                   as you look at Ad Planner obviously being offered free does that potentially
                   help grow the market forward measurement?


                   I mean you have some small midsized advertisers and publishers may now be
                   more (sensitized) to use it and as they realize the shortcomings of it does that
                   eventually push them to step up and pay for a paid service and ultimately
                   qualify as a customer of yours or is that wishful thinking?


Magid Abraham: No, I think that that’s really possible. I think that if you are a very small site
                   and you can afford the money then you will use a free service. In fact you can
                   do it today. But obviously having it available through Google can be
                   convenient -- much more convenient.


                   On the other hand again, if you really think about it, even if you are a VC
                   funded site and you raise $10 million to try to get your revenue as quickly as
                   possible, if you have to pay $40,000 or $50,000 to get a tool that will help you
                   sell better that will be accepted by advertising agencies that will at the end of
                   the day (actuarially) to the monetization, $50,000 of that 10 million is a pretty
                   good investment. It’s actually, you know, that buys you a receptionist. And
                   which is better for you is to have a receptionist or to have a tool that, you
                   know, will accelerate your monetization?


                   So I think that what you are saying is very, very possible that, you know at the
                   end of the day the value that we deliver is to allow you to - to help you
                   monetize your traffic.


                   And in that case free versus $50,000 I’m not sure that if you felt the need at
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                  this stage in your development even if you’re a small site, if you felt the need
                  that you needed to do that, I’m not sure that that’s going to be a huge obstacle.


Youssef Squali:   (Kashina), any other questions?


Operator:         Your next question comes from Naved Khan.


Naved Khan:       Thank you. Magid you mentioned in the past that on average your plans used
                  only 2.3 out of the 35 products that comScore currently offers. Can you tell us
                  if publishers and agencies can provide more products than the average?


Magid Abraham: Yes. I mean well I think it really varies. But agencies tend to buy more
                  products. You know, but we need to realize also that agencies typically we -
                  the agency budgets are pretty tight. So we do have different pricing rate cards.
                  And the rate cards for agencies are lower than those for publishers. And as a
                  result, agencies can afford to buy more products from us. And they do.


                  Publishers, I think the large publishers buy quite a few of our products. The
                  smaller publishers, you know, depending on whether they are essentially a
                  simple sort of Web site versus whether the needs are much more complex,
                  they may not be buying, and you know, a lot more.


Naved Khan:       Thank you.


Operator:         There are no further audio questions at this time.


Youssef Squali:   Okay then let me go on. Magid there was a lot of talk recently about the
                  prospects of maybe using ISP-based customer data for their grow sample and
                  effectively gain more behavioral info. And arguably that should improve the
                  quality of the data.
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                 You’ve been exploring that opportunity for some time now. Do you think it
                 happens? What’s really preventing it from being out there already?


                 And how - if that were to happen, how does that change the landscape if it
                 does?


Magid Abraham: Sure, we have talked about this and we do have some ISP data in-house. What
                 has been happening recently is that there have been a lot of privacy concerns
                 about - primarily about behavioral targeting that have been raised by a
                 company called Form in the UK that did a deal with British Telecom and the
                 other two leading ISPs in the UK which generated a firestorm about sort of
                 privacy.


                 And then Charter Communication had a deal here which they pulled out of or
                 put on hold because again because of privacy concern.


                 So we are seeing from some of the larger ISPs reticence and a wait and see
                 attitude to be able to do that. Nevertheless we have some ISPs that we are
                 cooperating with and we’re looking at this data. We’re particularly excited
                 about some of the ISPs that can deliver more work audience for us, more at
                 work audience for us.


                 And so, you know, we expect that some of that data will make its way into our
                 products, you know, towards the end of the year early next year.


                 And yes, that will give us more granularity. It will also give us by the way, I
                 mean ISP within that ISP subscriber base is centered. And, you know, to the
                 extent that we have data challenges we will be able to say hey, let’s get your
                 data among those subscribers.
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                  Let’s compare it to the data, to the unquestionable data that would come from
                  the ISPs in terms of page views and what have you. And then let’s look.


                  And I think that that would be quite helpful and hopefully this sort of - this
                  debate about under representing relative to the unique cookie data will start
                  getting mitigated.


Youssef Squali:   Okay. My last question is one to bring us all back too again, the P&L impacts.
                  I guess with this new development, does this change in any way your view
                  about your addressable market, the prospects for your growth rate?


                  I think you’ve historically talked about a 25% to 30% annual growth rate for
                  many years to come, EBITDA margins and flirting with 30% long term. Any
                  of this has changed or is changing in your mind following the developments
                  of the last two or three days?


Magid Abraham: No as we stand today, I really see no reason why those targets will change. So,
                  you know, we’re still very excited about the opportunity.


                  You know, again, our preliminary assessment is if there is any impact its
                  minimal and will certainly not cause us to deviate from those targets.


Youssef Squali:   Okay, excellent. Let’s try one more time to see if there are any more questions
                  on the line. Otherwise we’ll just stop here.


                  Are there any other questions?


Operator:         Again, if you would like to ask an audio question, please press star then the
                  number 1 on your telephone keypad.
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                  At this time there are no audio questions.


Youssef Squali:   Great, thank you very much. Magid, John, thank you and thank you
                  everybody for attending this call and have a great day.


Magid Abraham: Okay thanks. Okay.


John Green:       Thank you very much.


Magid Abraham: Bye-bye


Youssef Squali:   Bye.


Operator:         This concludes today’s How Does Google Ad Planner Alter the Market
                  Opportunity for comScore conference call. You may now disconnect.




                                              END

								
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