Online Marketing Institute London, Feb 2012 Mike Shaw Director, Marketing Solutions

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1 The State of Social Media Online Marketing Institute London, Feb 2012 Mike Shaw Director, Marketing Solutions

2 comscore s Innovative Approach Revolutionizes Measurement 2 Million Person Panel 360 View of Person Behavior PERSON-Centric Panel with SITE-Census Measurement PANEL CENSUS Unified Digital Measurement (UDM) Patent-Pending Methodology Adopted by 90% of Top U.S. Media Properties comscore, Inc. Proprietary. 2 V1011

3 It is difficult to overstate the importance of social media Usage is nearly ubiquitous Social media is impacting: Geopolitics: Tunisia, Egypt, Libya, etc US politics: 2008 election, and soon the 2012 election Retail: Groupon visitation is up 250% versus the previous year Marketing: Facebook is the single largest server of display inventory on the web Consumer behavior: Social media accounts for 18% of all time spent online The web s connective tissue: hyperlinks social connections comscore, Inc. Proprietary. 3

4 Percentage of Machines Included in UDM Measurement More than half of local online populations engage in social networking. North America North America Europe Middle East & Africa Asia Pacific Canada 94% United States 98% Argentina 96% Brazil 97% Chile 94% Colombia 96% Mexico 96% Peru 96% Puerto Rico 90% Venezuela 96% Percentage of Online Population Using Social Networking around the World* % Reach of Online Population * Data is based on the 43 countries on which comscore reports individually. Austria 86% Belgium 93% Denmark 94% Finland 91% France 91% Germany 90% Ireland 95% Italy 93% Netherlands 94% Norway 89% Poland 95% Portugal 96% Russia 88% Spain 98% Sweden 93% Switzerland 90% Turkey 96% United Kingdom 98% Israel 94% South Africa 88% Australia 96% China 53% Hong Kong 93% India 95% Indonesia 94% Japan 58% Malaysia 94% New Zealand 95% Philippines 96% Singapore 94% South Korea 87% Taiwan 94% Vietnam 85% Source: comscore Media Metrix, October 2011

5 The Rise of the Global Social Networking Audience 1,600 1,400 1,200 1, % Total Internet +174% Social Networking Worldwide Total Unique Visitors (MM) Source: comscore Media Metrix, March October 2011

6 Nearly 1 in 5 minutes online is spent on social networks today Retail Social Networking Search/Navigation Communications ( /IM) Other Content Time Spent on Key Categories Online Worldwide Hours per Month (Billions) Source: comscore Media Metrix, March October 2011

7 Europe 30% Middle East - Africa 9% Regional Share of Total Unique Visitors to Social Networking 1/3 of the world s social Asia Pacific 33% networkers are in Asia Pacific. Latin America North America 10% 18% Source: comscore Media Metrix, October 2011

8 Yet 5 of the most engaged markets for social networking are in Latin America Average Hours per Visitor Source: comscore Media Metrix, October 2011

9 7.6 Average Hours per Person in Latin America Spent on Social Networking 2.9 Average Hours per Person in Asia Pacific Spent on Social Networking % Latin America Middle East - Africa Europe North America Asia Pacific Average Engagement with Social Networking by Region Average Hours per Visitor Source: comscore Media Metrix, October 2011

10 Social Media sites draw more UK visitors than retail, , and news sites % Reach Source: comscore Media Metrix, January, 2012 comscore, Inc. Proprietary. 10

11 The Growth of Today s Social Networking Leaders Facebook Twitter LinkedIn Total Unique Visitors (MM) Source: comscore Media Metrix, March October 2011

12 Google+ surged to 25 million visitors in less than a month faster than any other social network. Months to Reach 25 Million Visitors <1 month to reach 25 million Google+ MySpace Twitter Facebook Total Unique Visitors (MM) Source: comscore Custom Analytics, July 2011

13 Social Media s Online Audience

14 Across all regions, women are more social. Latin America Europe North America Asia Pacific Worldwide Females 15+ Males 15+ Average Engagement with Social Networking by Gender Average Hours per Visitor Source: comscore Media Metrix, October 2011

15 % Reach Males and users 55+ represent the fastest growing segment in social networking % 84.4% % % % % % % 83.9% 75.0% 71.6% 74.6% 70.6% 71.7% Age Age Age Age Age 55+ Males Females July-10 October-11 Social Networking Penetration Among Worldwide Demographic Groups % Reach Source: comscore Media Metrix, Worldwide, October 2011 vs. July 2010

16 Women still spend more time on social than men, but the gender gap is narrowing for younger demographics. Age Age Age Females Males Age Age Average Hours per Visitor Social Networking Engagement Among Worldwide Demographic Groups Average Hours per Visitor Source: comscore Media Metrix, Worldwide, October 2011

17 15-24 year olds saw the largest decline in engagement with web-based and instant messaging 34% 25% 15% 21% 12% 1% -8% -4% -3% -42% -22% -32% -37% -34% -36% Age Age Age Age Age 55+ Change in Average Time Spent with Content Category by Age Segment Instant Messengers Social Networking Source: comscore Media Metrix, Worldwide, October 2011 vs. July 2010

18 but also saw the highest increase in engagement with social networking. 34% 25% 15% 21% 12% 1% -8% -4% -3% -42% -22% -32% -37% -34% -36% Age Age Age Age Age 55+ Change in Average Time Spent with Content Category by Age Segment Instant Messengers Social Networking Source: comscore Media Metrix, Worldwide, October 2011 vs. July 2010

19 For digital natives, social networking Social Networking is the norm. Instant Messengers Average Minutes per Visitor (15-24) Source: comscore Media Metrix, Worldwide, October 2011

20 Social Media s Impact on Marketing

21 3 Facebook s worldwide site rank 55% Facebook s global penetration Source: comscore Media Metrix, October 2011

22 3 in 4 minutes on social networking sites are spent on Facebook 1 in 7 minutes spent online are spent on Facebook Source: comscore Media Metrix, October 2011

23 Today, there are only 7 markets where Facebook is not the leading social network. Brazil Poland China Russia Japan South Korea Vietnam Source: comscore Media Metrix, October 2011

24 Facebook is the largest publisher of online display ad impressions, attracting a long tail of smaller advertisers. Publisher Share of Display Ad Impressions Source: comscore Ad Metrix, U.S., Q3 2011

25 Despite Social Networking s leadership in the display ad market, it is not yet attracting its fair share of online ad dollars. 27.7% Display Ad Impressions 20.7% Page Views 16.9% Time Spent Online 14.8% Display Ad Estimated Spending Social Networking Share of Key Metrics Source: comscore Ad Metrix and Media Metrix, U.S., October 2011

26 75% of ads will become socially enabled by 2015 Google makes 7 predictions for display advertising market by % of online ads will have video in them 2. 50% of all targeted display advertising will rely on real-time bidding 3. Mobile will become #1 screen for advertising 4. New metrics will emerge to measure success of ad campaigns 5. 75% of ads will become socially enabled 6. 50% of brand campaigns will run rich media in ads 7. Display advertising will become a $50 billion industry Source: Google's Seven Display Ad Predictions comscore, Inc. Proprietary. 26

27 1 out of 12 display ads are socially-enabled. Among CPG advertisers, 1 out of 6 display ads are socially-enabled. Socially Enabled, 8.2% Socially Enabled, Display Ad 16.7% $ Display Ad Impressions Total Internet Display Ad Impressions CPG Advertisers All Other, 91.8% All Other, 83.3% Source: comscore Ad Metrix Social, U.S., November 2011

28 Are Facebook Brand Pages the new microsite? Yes, if CPG advertisers are any indication Click Through Destination for New CPG Banner Ads NOT Running on Facebook Facebook, 15% All Other, 76% Amazon, 6% YouTube, 3% comscore, Inc. Proprietary. 28

29 Leading Brands on Facebook Globally Leading brand pages by fan volume include FMCG, technology, clothing & leisure Global Facebook Fans (m) comscore, Inc. Proprietary. 29 Source: Facebook fan pages & September 2011

30 The Power of Like: White Paper from comscore & Facebook To download white paper please visit comscore, Inc. Proprietary. 30

31 49% of time spent on Facebook is spent on the Newsfeed and Profile pages Share of Time Spent on Facebook.com by Content Section Source: comscore Mediabuilder, U.K., Dec % 6% 32% Homepage/News Profiles Photos Apps/Tools All Other 17% 17% comscore, Inc. Proprietary. 31

32 Brands control the three basic levers that will determine social media marketing success. Many brands don t consider these intermediary steps Get Fans (Who are they?) Brand Messages Reach Fans in News Feed Fans Talk About News Feed Content News Feed Content Spreads to Friends Goal: Max Reach, ROI 1. Cut-Through 2. Engagement 3. Amplification

33 The vast majority of brand exposure happens in the Newsfeed and on Profile pages Starbucks received 156 impressions for every 1 page view on their brand page Starbucks, Southwest & Bing: Ratio of Facebook Impressions for Fans & Friends of Fans to Page Views on Brand Fan Pages Source: comscore Social Essentials, U.S., May Starbucks Southwest Bing comscore, Inc. Proprietary. 33

34 Understanding How Facebook Works For Brands Facebook Fans are NOT regular visitors to Facebook Fan Pages. Marketers need to reach out to Fans in their News Feed with relevant content! Brand No. of Fans Monthly Unique Visitors To Facebook Fan Pages Coca Cola 24.0 Million 39,000 Oreos 17.5 Million 137,000 Best Buy 2.7 Million 175,000 Source: comscore, US data, Oct 2011 comscore, Inc. Proprietary. 34

35 Friends of Fans represent a way for brands to efficiently amplify their reach substantially beyond Fans FANS Exposed Fans Earned Impressions Reach Frequency GRP Southwest 661K 2,457K 0.3% Bing 1,070K 3,353K 0.5% Starbucks 4,841K 13,664K 2.2% FRIENDS Exposed Friends Earned Impressions Reach Frequency GRP Southwest 853K 1,460K 0.4% Bing 2,035K 3,183K 0.9% Starbucks 8,846K 18,073K 4.1% Friends expand Fans Reach by 33% to 86% comscore, Inc. Proprietary. 35

36 Fans and Friends of Fans exposed to earned brand impressions on Facebook exhibit higher brand engagement, than the average user Friends Friends Friends Baseline Internet User Source: comscore Social Esessentials May2011 comscore, Inc. Proprietary. 36

37 Brand Exposure in Social Media Tends To Lead To Significantly Higher Usage of Owned Media Football club website reach amongst UK Internet Users Total Internet Exposed Friend of Fan Exposed Fan Total Internet Exposed Friend of Fan Exposed Fan Total Internet Exposed Friend of Fan Exposed Fan Source: comscore Social Essentials, July 2011 comscore, Inc. Proprietary. 37

38 Exposed Fans also tend to spend more at Starbucks than the average Internet user Starbucks: Fans & Friends of Fans Purchase Activity vs. Average Internet User Source: comscore Social Essentials, U.S., May % 11% 10% 8% 8% 6% 4% 2% 0% Spending per Buyer Transactions per Buyer comscore, Inc. Proprietary. 38

39 And Finally

40 Mobile Social Networking: U.S. Smartphone Owners Lead the Way 63.3% Smartphone owners accessed at least once in month 44.5% Smartphone owners accessed at least once in month 61.5% Smartphone owners accessed at least once in month 38.4% Smartphone owners accessed at least once in month 60.7% Smartphone owners accessed at least once in month 37.9% Smartphone owners accessed at least once in month 47.4% Smartphone owners accessed at least once in month 34.7% Smartphone owners accessed at least once in month comscore, Inc. Proprietary. 40 Product: MobiLens Data: Three month average ending September 2011* (*with the exception of Japan, Canada - 1 month data September 2011) Country: US, N= 30,659, EU5, N= 67,003, JP, N= 5,000, CA, N= 5,500

41 Smartphones drive mobile social networking use. 64.1% 38.8% 45.2% 40.4% 36.5% 23.1% 22.8% 25.4% U.S. EU5 Accessed Social Networking Site or Blog Almost Every Day U.S. EU5 Accessed Social Networking Site or Blog Ever in a Month % of Smartphone Audience Accessed Social Networking via App Accessed Social Networking via Mobile Browser Source: comscore MobiLens, 3 Month Average Ending October 2011*

42 Tablets and Connected Devices: The Future of Mobile Social Networking? Incremental Reach and Duration of Time Spent on Selected Categories Relative to Computer Use for iphone and ipad Owners Total Internet Incremental Reach 0.2% Incremental Duration 2.0x Maps 56.8% 9.2x News/Information 23.6% 28.9% 1.6x 1.9x Social Networking Retail 12.5% 8.7% 2.8x 2.5x Source: comscore Custom Analytics, U.S., September 2011

43 Summary Social networking is the most popular online activity worldwide It s not just young people using social networking anymore it s everyone The importance of Facebook cannot be overstated Digital natives suggest communications are going social Social networking leads in online display advertising volumes, but lags in corresponding share of budget Mobile devices are fueling the social addiction

44 Thank You Mike Shaw Director, Marketing Solutions

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