PART I
A Quick Introduction to comScore
PART I
A Quick Introduction to comScore
MEASURING THE DIGITAL WORLD
Proprietary and Confidential Do not distribute without written permission from comScore 2
■ Corporate headquarters: Reston, USA
– Offices in London, Paris, Gütersloh, Tokyo, NYC, Chicago, San Francisco, Seattle, Toronto
■ Year founded: 1999
■ Employees: 500+
■ Successful IPO (NASDAQ: SCOR) – June 26, 2007
■ Acquired M:Metrics – May, 2008
■ Number of clients: 1,100+
■ Company-wide renewal rate well over 90%
■ The source of record for leading media outlets worldwide
– comScore data and analysts are cited approximately 8-10,000 times each year
– Search for us online, or visit comscore.com
comScore, Inc: A Closer LookcomScore, Inc: A Closer Look
Proprietary and Confidential Do not distribute without written permission from comScore 3
to Measure the Search Market
(qSearch)
to Deliver a Worldwide Internet Audience
Measurement (World Metrix)
Video Streaming Measurement
(Video Metrix)
to Provide Behavioral Ad
Effectiveness (Campaign Metrix)
to Build and Project from 2M+
Longitudinal Panel
to Monitor and Report
eCommerce Data
Strong Track Record of Innovation & LeadershipStrong Track Record of Innovation & Leadership
WORLD ECONOMIC
FORUM
Technology
Pioneer
2007
Top 100
Innovative CompaniesDecember 2004
World’s Largest
Windows DatabaseDecember 2001,2003, 2005
External Recognition
Proprietary and Confidential Do not distribute without written permission from comScore 4
1,100 + Blue Chip Clients1,100 + Blue Chip Clients
Internet Agencies Telecom Financial Retail Travel CPG Pharma Technology
Proprietary and Confidential Do not distribute without written permission from comScore 5
About comScore: What we doAbout comScore: What we do
■ Recruit, analyse and report each month on the online activity of a panel
of two million individuals, based in more than 170 countries
■ Help companies better understand their online audience (as well as that
of their competitors), how their audience is developing over time, and
what other kinds of online content their audience likes to consume
■ Help advertising agencies design powerful and effective marketing
strategies that help them deliver superior ROI
■ Help promote the Internet as a fast-growing platform offering unique
opportunities for effective brand-building, consumer-engagement and
business development
Proprietary and Confidential Do not distribute without written permission from comScore 6
comScore: Measuring people and their behavior, not browserscomScore: Measuring people and their behavior, not browsers
■ Consistent universe definition
– Those aged 15+ accessing the internet from either a home or a work computer in the past 30 days
■ Consistent recruitment methodology
– Randomly recruited with multiple value propositions running simultaneously across the web
– Permission Research
■ Consistent projection methodology
– Stratified on age, gender, country, percent of time spent online or visiting specific content categories
Proprietary and Confidential Do not distribute without written permission from comScore
The Cookie Deletion Issue: Overstating Reach and Understating FrequencyThe Cookie Deletion Issue: Overstating Reach and Understating Frequency
■ In 2006, 30% of US Internet users deleted their cookies in a studied month
■ Some of these ‘cookie-monsters’ did so an average of 4 times a month
– Leaving 5 different cookies for a single site on their computers
■ Cookie deletion was found to create significant errors:
– On average, 2.5 times overstatement of unique visitors in server logs
– On average, 2.5 times overstatement of reach and a similar understatement of frequency
in ad server logs
■ Important to recognize the significant difference of basic site server data and
the panel-based approach not affected by cookie-deletion
■ Tunnel-vision is never the best view
Based on a unique comScore Study of Yahoo and DoubleClick cookies
PART II
The Internet Audience in Argentina
PART II
The Internet Audience in Argentina
MEASURING THE DIGITAL WORLD
Proprietary and Confidential Do not distribute without written permission from comScore 9
Online Populations by Region
Worldwide Online Population
949.6 1,007.7
Worldwide
Millions of Internet Users
+6.1%
Latin America continues growthLatin America continues growth
383.4
268.2184.2
69.2 44.5
416.3
282.7
185.1
74.9 48.8
Asia Pacific Europe North America Latin America Middle East - Africa
Millions of Internet Users
+8.6%
+5.4%+0.5%
+8.2%+9.5%
■ Growth has slowed in North America and Europe
■ Asia continues to show strong growth on a large base
■ Latin America and the Middle East/Africa are now the high-growth regions globally
■ Growth expected to continue on the back of increased residential broadband penetration region-wide
July 2008
Dec 2008
Source: comScore World Metrix, Dec 2008
Proprietary and Confidential Do not distribute without written permission from comScore
26.9
26.2
26.3
28.3
23.7
26.2
17.2
Brazil
Mexico
Argentina
Colombia
Chile
Venezuela
Puerto Rico
29.1
12.9
10.2
7.7
6.0
1.9
0.9
Brazil
Mexico
Argentina
Colombia
Chile
Venezuela
Puerto Rico
Argentina is third-largest web population in Lat AmArgentina is third-largest web population in Lat Am
10
■ Argentina has the third-largest Internet population in the region, with 10.2 million
home and work users over the age of 15, (est. 20 million total online population)
■ Average user in Argentina clocks 26.3 hours/month, more than the worldwide average
Internet Users (MM)in Latin America
Total Online Hours per VisitorLatin America
Source: comScore World Metrix, March 2009
Internet users ages 15+ accessing the internet from a Home or Work computer
WW Avg: 23.8
Proprietary and Confidential Do not distribute without written permission from comScore
20.8
27.0
18.2
26.3
15.6
23.7
Australia
Netherlands
Taiwan
Argentina
Malaysia
Chile
Comparison to Other Countries Outside RegionComparison to Other Countries Outside Region
11
■ 15+ Home and Work populations in Australia and Netherlands are of similar size
■ Internet users in Argentina, however, spend more time online than their counterparts
in these countries (Canada 44+ hours, US 32+ hours per month)
Internet Users (MM) Total Online Hours per Visitor
Source: comScore World Metrix, March 2009
Internet users ages 15+ accessing the internet from a Home or Work computer
WW Avg: 23.8
12.0
12.0
11.3
10.2
9.1
6.0
Australia
Netherlands
Taiwan
Argentina
Malaysia
Chile
Proprietary and Confidential Do not distribute without written permission from comScore
Profile of the Internet Audience in ArgentinaProfile of the Internet Audience in Argentina
12
■ Unlike other markets in Latin America, the Internet audience in Argentina is
more evenly distributed among various age groups and closely mirrors the
worldwide average
Source: comScore World Metrix, March 2009
27%
36%
27%
26%
28%
26%
17%
19%
22%
17%
11%
14%
14%
7%
11%
Argentina
Latin America
Worldwide
Persons: 15-24 Persons: 25-34 Persons: 35-44 Persons: 45-54 Persons: 55+
Distribution of Internet Users 15+
Proprietary and Confidential Do not distribute without written permission from comScore 13
Demographic breakdown of Argentina’s Online Audience
Proprietary and Confidential Do not distribute without written permission from comScore 14
Proprietary and Confidential Do not distribute without written permission from comScore
Web 2.0
Entertainment“On-ramp” categories
Argentina Indexes for Key CategoriesArgentina Indexes for Key Categories
15
Source: comScore World Metrix, March 2009
Utility & Content
High Reach, Flat Growth
Mainstream, MidReach, Flat Growth
Approaching Mainstream, High Growth
Growing Reach, Very Fast Growth
97
99
160
76
Portals
Search/Navigation
92
111
115
79
89
79
Reference
Social Networking
Blogs
Reach Index Time Index
96
97
107
96
91
97
Entertainment
Multimedia
Online Gaming
114
157
101
100
68
87
116
141
70
141
39
51
Instant Messengers
Retail
News/Information
Travel
Sports
Proprietary and Confidential Do not distribute without written permission from comScore
Highest-Indexing Web Categories in ArgentinaHighest-Indexing Web Categories in Argentina
16
157
157
155
141
135
133
129
124
115
114
114
113
111
110
110
107
106
106
■ As in many fast-growing Internet markets, Argentina
shows a strong focus on Communications: Instant
Messengers, e-mail, Discussion/Chat, and Web 2.0
(Social networking, Blogs, etc.)
■ Online newspaper visitation is above average driven by
strong digital presence of both Clarin and La Nacion
■ Discussion/Chat led by Taringa.net (37% reach)
■ Over indexing of Web Hosting category shows maturity
Source: comScore World Metrix, March 2009
53.1
77.3
49.3
32.1
12.3
7.9
51.6
18.9
60.6
79.8
20.5
50.0
71.6
25.9
30.9
41.0
79.3
5.5
Newspapers
Instant Messengers
Discussion/Chat
Classifieds
Humor
Retail - Music
Photos
Kids
Blogs
Information
Entertainment - Music
Social Networking
Gaming Information
Web Hosting
Online Gaming
Conversational Media
e-cards
WW Reach
Argentina: Highest-Indexing Web CategoriesIndex Compared to WW Reach
PART III
How Internet Advertising Works
PART III
How Internet Advertising Works
MEASURING THE DIGITAL WORLD
Proprietary and Confidential Do not distribute without written permission from comScore
Why are some advertisers slower to embrace online?Why are some advertisers slower to embrace online?
■ Are the wrong metrics being used (i.e. click-throughs vs real ROI)?
■ Is there too much contradictory or confusing data available?
■ Is it a lack of proof that online advertising really works?
■ Clicks on display ads are a misleading metric as they don’t reflect the
brand-building effects
– Only use for direct response ad campaigns (or search)
– Clicks don’t measure all of a campaign’s sales impact nor the cumulative (latent) impact of ads
– Clicks don’t tell you anything about brand building effects
■ comScore, along with its various partners, has been busy researching
– Search & display advertising
– Offline impact (in-store sales)
– Latent effects
18
Proprietary and Confidential Do not distribute without written permission from comScore
Some things to consider before we move forwardSome things to consider before we move forward
■ Panel-based measures correct problems with site server data, measuring
individuals and not machines (cookies)
■ Using the correct metrics allows improved media planning and analysis
– Also, look beyond clicks
■ Intelligence is now available showing advertisers and publishers detailed data
on the online audience as well as their demographic profile and affinity
■ Detailed segmentation of users is helping build more powerful media plans
19
There are many tools allowing for effective online media planning
and analysis that are on par with other media
Proprietary and Confidential Do not distribute without written permission from comScore
Case study: Targeting the online audienceTwo sites offering almost identical demographics…Case study: Targeting the online audienceTwo sites offering almost identical demographics…
20
Proprietary and Confidential Do not distribute without written permission from comScore
…but their respective audiences show clearly distinct preferences in terms of online content…but their respective audiences show clearly distinct preferences in terms of online content
21
Proprietary and Confidential Do not distribute without written permission from comScore
Online Ad Effectiveness: Close the Loop Studies (Done with Yahoo!)Online Ad Effectiveness: Close the Loop Studies (Done with Yahoo!)
■ Dozens of studies to assess the impact of paid search and banner ads on
online and offline sales
■ Real world analysis: comScore panelists divided into two matched groups
(exposed and non-exposed to advertising)
– Search only
– Display ads only
– Search and display ads together
– Neither
■ Passively measured behavior, no surveys involved
– Linked to in-store sale through CRM databases, retailer loyalty cards (e.g. Kroger), IRI
scanner panel
22
Proprietary and Confidential Do not distribute without written permission from comScore
Online Ad Effectiveness: The Impact on Visitation to the Advertiser’s site Online Ad Effectiveness: The Impact on Visitation to the Advertiser’s site
■ Based on over 100 studies in which consumers’ online behavior was monitored following exposure to a
display ad, the average lift in the number of visitors to the advertiser site was 65% during the 1st week
■ Not only was there a significant visitation boost within the first week following exposure to an ad -- low
click rates notwithstanding -- but after the 1st week, there was significant lift that would have been
underappreciated by relying on click-throughs or by focusing on cookie-centric tracking
■ The greatest absolute increase in reach lift (i.e., incremental points of reach) was seen generated by
advertisers in the Retail & Apparel (+4.7 points), Media & Entertainment (+3.0 points) and Electronics &
Software (+1.4 points) categories.
23
Proprietary and Confidential Do not distribute without written permission from comScore
Online Ad Effectiveness:The Impact of display ads on salesOnline Ad Effectiveness:The Impact of display ads on sales
■ For e-commerce sites, it has been a challenge to quantify the impact of online advertising on sales
– Purchases rarely take place during the same session as exposure, and even less as a result of a click-through
– Therefore important to look at ‘latent ‘effects, which can extend to days or weeks after exposure
■ For bricks and mortar retailers, the challenges are greater, due to the necessity of quantifying the
effects of online advertising on offline sales
– The lift in offline sales generated by online advertising is significant, and can not measured through a cookie-
centric approach
– The lack of visibility in to offline purchasing consistently leads to an underestimation of the ROI of display
advertising, similar to conventional media
■ In examining the impact of display ads on buyer penetration, we
saw that the percentage lift is much higher online than offline
� Lift in online buyer penetration of 42.1%
� Lift in offline buyer penetration of 10.1% (but, due to the much larger
base, this represents a significantly higher sales value)
Proprietary and Confidential Do not distribute without written permission from comScore
“The Role of Search in Consumer Buying”2006 comScore Study with Google“The Role of Search in Consumer Buying”2006 comScore Study with Google
Source: Google/comScore “The Role of Search in Consumer Buying” Press Release, March 21, 2006; based on
holiday-related purchases completed online and offline across 11 product categories for 60 days post-search
Direct Online Effects 16%
Latent Offline Effects 63%
Latent Online Effects 21%
The Three Components of how Search Drives Buying
25
Proprietary and Confidential Do not distribute without written permission from comScore
The synergistic impact of search and display advertisements on salesThe synergistic impact of search and display advertisements on sales
■ The impact of search ads alone on consumers’ buying behavior has been found to be clearly greater
than that of display ads
– True both in terms of the advertisements impact on online buying as well as offline sales
– Not surprising as searchers are clearly “in the market” for purchasing the advertised product
■ Important to note, however, that the reach of search advertising is much lower than that of display advertising
– Consistently across the research conducted by comScore, approximately 80% of the consumers who saw an
advertisement were exposed to only a display ad, a much lower 8% were exposed to a search ad
– When the lift factors of each are weighted by the reach of the advertisement, display ads almost always emerge as being
able to generate a higher total lift in sales
■ comScore also regularly sees that the combination of search AND display together is greater than the sum of
the impact of display and search ads separately.
26
Proprietary and Confidential Do not distribute without written permission from comScore
Thank you very muchThank you very much
For more information, including quarterly US
e-commerce reports as well as travel, CPG &
other industry-specific webinars, please visit:
www.comscore.com
For more details on all our online ad effectiveness
research, please download our free ‘How Online
Advertising Works; Whither the Click’ white paper
27