1 The Rise of Big Data and the Internet Judy Bahary, SVP, comscore Inc.
2 Some Big Data Nuggets 92% of the world s data was created in just the past two years Today s smartphone would have been most powerful computer in the world in million people in the U.S. now own smartphones, up 30 million in just the past year For $600 you can buy a disk that can store all of the world s music 120 billion pieces of data are added to Facebook every month 72 hours of video are added to YouTube every minute Google records 2 million searches every second Every second something is bought on ebay via a mobile device 2
3 Topics for Discussion The Role of Big Data in: comscore Data Collection The Multi-Platform Shift e-commerce Digital Advertising 3
4 comscore Big Data 1.4 Trillion Digital Interactions Captured per Month 4
5 Data sourced from comscore s global panel of 2 million Internet users 2 Million Person Panel 360 View of Person Behavior PERSON-Centric Panel with WEBSITE-Census Measurement Online & Offline Buying Web Visiting & Search Behavior Online Advertising Exposure PANEL CENSUS Transactions Advertising Effectiveness Media & Video Consumption PANEL Mobile Internet Usage & Behavior Demographics, Lifestyles & Attitudes Unified Digital Measurement (UDM) Patent-Pending Methodology 1 Million Domains Participating Adopted by 90% of Top 100 U.S. Media Properties Plus 5 Million TV Set comscore, Top Inc. Proprietary. Boxes 5 for 3-Screen Measurement V0411
6 comscore Big Data Stats 3.9 billion panel records per day; 115 billion panel records per month 560 million full HTML pages processed per day 45.3 billion tag records per day (currently peak at 2.4 billion per hour) 1.3 trillion tag records per month 15 TB new data per day compressed, 25 TB raw 14 petabytes of data online 15 billion observed distinct cookies per month 16 million distinct observed domain names; 75 million host names observed in the panel in one month Data Warehouse 1.8 trillion rows of data in 14,168 tables (145TB) Mbps bandwidth (95 th percentile) 300,000 reports delivered on peak days (70 reports per second) 6
7 The Multi-Platform Shift Where Computers, Smartphones and Tablets Intersect 7
8 Smartphone Takeover in 2012 Smartphone penetration surges past 50% of mobile users 120+ Million Smartphone Subscribers More Than 30 Million Added in Past 12 Months Oct-2011 Oct Source: comscore MobiLens, U.S.
9 Smartphone Platform Wars While RIM Declines, Android & Apple Command 88% of the Market Google Apple RIM Microsoft Symbian HP RIM Apple Android Oct-2011 Jan-2012 Apr-2012 Jul-2012 Oct Source: comscore MobiLens, U.S.
10 Watching Video on Mobile Phone Leads as Fastest-Growing Mobile Category. Online Retail and Electronic Payments Surging Fastest Growing Mobile Content Categories by Number of Subscribers (Millions) Watched Video Digital Books/Magazines Online Retail Electronic Payments Home/Lifestyle Credit Cards Men's Magazine Content Travel Service Beauty/Fashion/Style Kids and Family +179% +62% +60% +56% +53% +51% +50% +48% +47% +47% Oct-2012 Oct Source: comscore MobiLens, U.S.
11 We Now Live in the Post-PC Paradigm: Tablets already used by 48 million U.S. owners, a level it took smartphones nearly 10 years to reach Number of Device Owners 120 MILLION 50 MILLION Source: comscore MobiLens & TabLens U.S
12 More than 13% of Web Traffic Now Comes from Smartphones and Tablets and it s Doubled in a Year! Share of Total Web-Based Page Views by Platform 4.2% 4.3% 4.5% 4.5% 4.7% 4.0% 3.6% 2.8% 3.0% 3.2% 3.5% 2.4% 1.5% 1.8% 1.9% 2.0% 2.1% 2.2% 7.9% 6.9% 7.6% 7.6% 8.3% 8.1% 4.1% 3.8% 4.0% 3.9% 4.0% 4.3% 4.8% 5.1% 5.3% 5.4% 5.6% 6.1% Smartphone Tablet Other 12 Source: comscore Device Essentials, U.S.
13 The Billion Dollar Research Lab On behalf of NBC, comscore measured how consumers were using multiple platforms to view Olympic content 13 13
14 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 Cross Platform and Simultaneous Use The New Normal 14 Source: comscore Custom Analysis for NBC
15 Olympic Consumption by Platform Percent Time Spent TV 89% Digital 11% PC/Laptop Mobile Tablet 15 Source: comscore Custom Analysis for NBC
16 More Screens = More Time Spent on Media in Total Average Time Spent Per Day Following Olympics 4hr 19min 5hr 18min 50 min 6hr 50min 51 min 59 min 8hr 29min 47 min 40 min 55 min Tablet Mobile PC/Laptop 4hr 19min 4hr 28min 5hr 6hr 7min TV TV Only TV Only TV + PC/Laptop TV + Only PC/Laptop TV + PC/Laptop TV + + Mobile Only PC/Laptop + Mobile TV + PC/Laptop TV + + Mobile + Tablet PC/Laptop + Mobile + Tablet 16 Source: comscore Custom Analysis for NBC
17 Simultaneous Viewing Watching Olympics on TV and consuming Olympic content on other screens 54% who used TV & 1 or more other platforms were Simultaneous Viewers 25% of time spent watching Olympics on TV was accompanied by use of another screen SimViewer Profile: Age 53% 54% 54% 55% Gender 45% A18-24 A25-54 A55+ Men Women 17 Source: comscore Single Source Multi-Platform Study
20 $186 Billion was Spent on Online Retail in 2012, with the channel shift increasing rapidly +15% vs. year ago $186B Retail (non-travel) 5X Faster than Spending Growth Offline 20 Source: comscore e-commerce Measurement 2012
21 1 in Every 10 Discretionary Dollars Now Spent Online e-commerce Share of Corresponding Consumer Spending* Source: comscore for e-commerce & U.S. Department of Commerce (DOC) for Retail 11.1% 4.3% 5.1% 4.6% 3.7% 4.0% 5.9% 5.3% 4.3% 4.5% 6.4% 6.7% 5.3% 5.0% 7.4% 7.3% 6.3% 5.9% 6.5% 6.6% 7.6% 7.7% 7.7% 8.1% 6.8% 6.9% 8.6% 8.0% 7.1% 7.1% 8.9% 7.7% 7.6% e-commerce share peaks in colder seasons (Q4 & Q1) 9.4% 8.7% 8.7% 8.8% 21 *Note: e-commerce share is shown as a percent of DOC s Total Retail Sales excluding Food Service & Drinking, Food & Bev. Stores, Motor Vehicles & Parts, Gasoline Stations and Health & Personal Care Stores.
22 SHOWROOMING: Nearly 4 in 10 consumers engaged in the activity, with 70% saying they did so to check prices Showrooming verb. Visiting a brick-and-mortar store to see a product but instead purchasing the product online. Shoppers may intend from the start to purchase the product online, or may decide to purchase online, rather than in-person, after viewing the item at the store. Although only 16% of consumers were aware of the term showrooming, 37% agreed they engaged in the activity after seeing a definition 37% 12% 16% 32% % who have heard of 'showrooming' % who have engaged in 'showrooming' 22
23 More than 1 in 10 Retail e-commerce Dollars Are Now Spent Via Mobile Device (i.e. Smartphones and Tablets) Percentage of Retail e-commerce Dollars Spent via Mobile Device 13% * 8% 9% 8% 9% 10% 6% 6% 2% 3% 3% Q Q Q Q Q Q Q Q Q Q Q *Preliminary estimate 23 Source: comscore E-Commerce Measurement, U.S.
24 Social Facebook-led Social Media has Redefined Communication 24
25 150 Million Americans Average 5.5 Hours per Month on Facebook Using a Computer with a Fixed Internet Connection Share of Time Spent On Social Media 17% Facebook 83% Other Social Networks 25 Source: comscore Media Metrix, Nov-2012, U.S.
26 Social Networking Beyond Facebook Unique Visitors (000) to Select Social Media Sites 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Nov-2011 Nov-2012 LinkedIn Twitter Tumblr Myspace Pinterest Instagram 26 Source: comscore Media Metrix, U.S.
27 Mobile Devices Represent a Vital Access Platform for Many Social Sites. Virtually All Time Spent on Instagram and Foursquare Comes from mobile Devices. Half of Facebook Time is from Mobile Share of Minutes on PC Share of Minutes on Mobile 87% 13% 81% 19% 55% 45% 30% 52% 50% 70% 48% 50% 1% 99% 1% 99% Source: comscore Media Metrix Multi-Platform Beta, Nov-2012, U.S. The data cited above are part of a beta release. As such, they are preliminary and 27 subject to further testing and analysis. These data are not comscore data of record
28 The Rise of the Visual Web 28
29 Tumblr, Pinterest & Instagram Among the Hottest Growth Sites in 2012 U.S. Unique Visitor Trend (000) Year over Year Growth Tumblr Pinterest Instagram 35,000 30,000 25,000 20,000 15,000 10,000 5, % +430% +350% 29 Source: comscore Media Metrix, U.S.
30 Video Online Video Viewing Becomes Mainstream 30
31 Online Video Attracts an Extremely Large Audience 75 Million Daily Viewers 30 Billion Content Videos In an average month 163 Videos per Viewer 8.5 Hours per Viewer 31 Source: comscore Video Metrix, Nov-2012, U.S.
32 Time Spent Watching Traditional TV is Down Only Marginally, While Online Video is Surging but still Equivalent to Only 7% of TV Monthly Average Hours Spent Per Viewer Watching TV vs. Online Video % % 2Q11 Monthly Average Hours 2Q12 Monthly Average Hours TV Online Video SOURCE: TV: Nielsen Cross Platform Report Q Online Video: comscore Video Metrix 32
33 Top Video Properties in Dec YouTube Drives Lion s Share of Views, With a Fragmented Picture Beyond That Google Sites Google Sites, 43% Hulu, 2% VEVO, 2% Yahoo! Sites, 2% All Other 45% 43% AOL, Inc., 2% Microsoft Sites, 1% Viacom Digital, 1% Netflix.com, 1% NDN, 1% Facebook.com, 1% All others, 45% Share of Content Videos Viewed, Jan-Nov Source: comscore Video Metrix, Jan-2012 to Nov-2012, U.S.
34 Digital Advertising Ad Spending Continues to Shift to Digital 34
35 IAB says online ad spend is now larger than newspapers, magazines and radio, and equivalent to nearly half of tv +15% vs. year ago $36 Billion online ad dollars in X Faster Growth than All Media Search +19% Video +12% Mobile +95% 35 Source: IAB, comscore & Kantar Media
36 Power of Like 2: Key Findings A M P L I F I C A T I O N Brands can meaningfully extend Facebook reach through amplification to Friends of Fans and help drive sales E A R N E D M E D I A L I F T The causal effects of earned media exposure can be isolated, and show lifts in purchase behavior P A I D M E D I A L I F T Facebook advertising also shows evidence of driving lifts in purchase behavior Download full white paper at: 36
37 % Reach of Exposed and Control Groups Example of Earned Media Lift Starbucks earned media impressions drove significant lifts in in-store purchase Nominal Lift in Purchase Incidence Starbucks Fans & Friends of Fans In-Store Purchase Behavior: % of Exposed Group vs. Control Group Purchasing Starbucks Weeks 1-4 Following Earned Media Exposure 2.40% 2.00% 1.60% 1.20% 0.80% 0.40% 0.00% 0.83% 0.66% % 1.00% % 1.30% % +38% 1.54% 0.58 Week 1 Weeks 1-2 Weeks 1-3 Weeks 1-4 Nominal Lift Test Group Control Group Source: comscore Social Lift, U.S., February-March 2012
38 Paid Media Amplification Facebook paid ads can help reach a qualified audience at scale U.S. Audience (MM) Reached by Paid, Earned & Both 5.2x 4.9x 5.6x Retailer Mobile Mfr Financial Earned Only Both Paid + Earned Paid Only In cases studied, paid ads amplified reach by 4-6x earned media alone In each case, audience reached via paid had significantly higher brand purchase and/or engagement Conclusion: paid media can help reach qualified audience at scale 38 Source: Facebook-comScore Paid Reach Research, June 2012
39 Arguably the Most Important Digital Advertising Initiative: Making Measurement Make Sense (3MS) Reduce costs of doing business due to complexity of digital advertising ecosystem Improve reporting of ad exposure Bolster confidence that ads delivered are actually visible 39
40 comscore Studies: In-view Rates Need to Be Improved 5,000+ studies 160 advertisers / agencies 32 countries US 69% AVERAGE EU 67% AVERAGE Campaign In-view ad rates ranged from: US 55% to 93% EU 64% to 72% 40
41 Kellogg s Real-Time Digital Campaign Monitoring Dashboard from comscore Real-time 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 Media Partner Avg Frequency Impressions in Target Impressions in View Lift in Awareness CPM % 83% 5.74 $ % 91% 0.55 $ % 71% 0 $
42 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 Brand 1 ROI Brand 2 ROI 6x ROI 2X 5X ROI 3X Year 1 Year 2 1H Year 3 Year 1 Year 2 1H Year 3 42
43 Summary: Important Themes in 2013 e-commerce sales will continue strong growth Physical stores will be under more pricing pressure because of the channel shift and showrooming Mobile e-commerce will continue to surge Digital advertising will also continue strong growth Viewability and audience guarantees will be accepted by more publishers Social, Video and Mobile will continue exceptional growth Retailers will become advertising platforms Ad effectiveness analytics surge Programmatic ad buying surge will continue but possibly be a drag on revenue growth if it pushes down prices Private exchanges will protect publishers prices for premium content Multi-platform media plans will grow in importance Emergence of new measurement systems 43
44 The Rise of Big Data and the Internet Thank you! Judy Bahary, SVP, comscore, Inc.
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