State of the online nation in Quebec January 2008

1. Who’s online in Quebec?

+ 19.5% Over 2 years Nomber of French Canadians online Total population (at home) + 0.7% From Nov.06 to Nov.07 Source: comScore Media Metrix, population canadienne francophone 4,604

Adults 25-54 represent 53% of active online francophone population. They generate 54% of total page views and 49% of time spent online Source: comScore Media Metrix Canada – French Canada, avril 2007 Index 79 124 90 93 93 126 Index 81 115 83 89 96 142 Page Views

Use in Quebec per age group 65% of total adult population in Quebec surfs the Web at least once a week: Cefrio 2006 NETendances

65% of total adult population in Quebec surfs the Web at least once a week:

2. What does media time spent look like in Quebec?

Share of Weekly Minutes Per Capita French 18+ 2006 Min 822 707 401 230 146 2,306 The tremendous increase in time spent with the Internet, +64% since NADbank 2001, has resulted in a 7% increase in the total time people spend with all media. The Internet’s share of time spent with all media has grown from 11% to 17%. Base: Adults 18+, French Canada Time spent: all adults trend TELEVISION RADIO INTERNET NEWSPAPER MAGAZINE NADBANK 1,000 800 600 400 200 0 2001 2002 2003 2004 2005 2006 Weekly Time Spent Minutes Per Capita (Minutes indexed to 2001) TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL 2001 Min 799 741 245 220 144 2,149 Share 37% 34% 11% 10% 7% 100% Share 36% 31% 17% 10% 6% 100% With the exception of Radio, time spent with other major media has remained stable. 822 707 230 146 401 Index of Chge (min) 103 95 164 105 101 107 100 index = no change 401 (164)

Share of Weekly Minutes Per Capita French 18+ MEN 18+ WOMEN 18+ Women 18+ Share Base: Adults 18+, French Canada TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL Time spent: men-women trend NADBANK 1,000 800 600 400 200 0 2001 2002 2003 2004 2005 2006 Men 18+ Share 2001 38% 38% 8% 10% 5% 100% 2006 35% 31% 19% 11% 4% 100% 2001 38% 32% 14% 11% 5% 100% 2006 39% 33% 14% 10% 5% 100% Weekly Time Spent Minutes Per Capita (Minutes indexed to 2001) Women’s rate of growth in time spent with the Internet has out paced men since NADbank 2001… +64% growth for women versus 46% for men. The gap between men and women time spent with Internet usage has narrowed, with the Internet now accounting for 14% of women’s media consumption. 436 (146) 315 (164)

French speaking Canadians spend less time with the Internet than English speakers, unlike other media. Because usage is growing at comparable rate for both language groups, about +65% since NADbank 2001, this gap has not narrowed. TOTAL ENGLISH FRENCH Share of Weekly Minutes Per Capita Total 18+ French 18+ Share TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL English 18+ Share 2001 37% 34% 11% 10% 7% 100% 2006 33% 27% 23% 9% 8% 100% 2001 34% 32% 15% 10% 8% 100% 2006 36% 31% 17% 10% 6% 100% NADBANK 1,000 800 600 400 200 0 2001 2002 2003 2004 2005 2006 Weekly Time Spent Minutes Per Capita (Minutes indexed to 2001) Time spent: trend by language Base: Adults 18+, French Canada As a result, the Internet accounts for only 17% of time spent with all media by French speakers, compared to 23% for English speakers. 557 (165) 401 (164) 595 (165)

The older age groups have been the fastest growing users of the Internet since NADbank 2001… +74% for adults 25-34, +167% for 55+. Hence the gap in time spent between younger and older age groups is narrowing. Base: Adults 18+, French Canada Share of Weekly Minutes Per Capita French 18+ TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL 25-34 Share 2006 31% 33% 25% 7% 4% 100% 2001 35% 36% 16% 7% 6% 100% 35-54 Share TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL 55+ Share 2001 35% 39% 12% 9% 5% 100% 2006 42% 26% 8% 14% 8% 100% 2001 42% 30% 3% 14% 10% 100% 2006 34% 35% 17% 9% 5% 100% Adults 18-24 25-34 35-54 55+ 18-24 Share 2006 29% 25% 34% 6% 6% 100% 2001 35% 26% 27% 7% 6% 100% NADBANK 1,000 800 600 400 200 0 2001 2002 2003 2004 2005 2006 Weekly Time Spent Minutes Per Capita (Minutes indexed to 2001) Time spent: age group trend 781 (146) 363 (151) 569 (174) 211 (267)

3. Ad spend online & by media in Quebec?

IAB Canada: Online ad spend in Canada 1998-2011 IAB Canada : Canadian Publisher ad revenues –1998-2011 (millions of dollars) Sources : 1998-2001 : IAB Canada & PwC, 2002-2007 : IAB Canada & Ernst & Young, 2008-2011 eMarketer / CMA $275M $1.37B $624M $3.03B

Ad spend by media Canada 2004-07 Internet represented 3% of total ad spend in Canada in 2004 Already Internet was ahead of OOH * Source : Media Digest, IAB 2005/07, CMA 2007 pour 2011 Internet represents 9% in 2007, up 6 points! Dailies have lost the most. TV, weeklies and yellow pages each lost 1 point to Internet 3-9% Market share change 2004-07 10-9% 3-3% 11-10% 12-12% 25-24% 22-19% 10-10% 5-5% +4% +16% +10% +267% +12% +30% % augmentation 2004 à 07 +11% +22% +12% 1 5 2 7 9 Investment ranking 8 6 4 3 10 0-2% Market shares in 2011 22,4% 15,7% 10,8% 9,0% 8,9% 16,3% 8,2% 4,1% 2,6% 2,0% In 2011, i.e. 3 years… Internet will garner $3 billion of ad spend and be in 2 nd place achieving 16% share of total behind TV’s 22% Dailies will slide to 3rd place, half a point behind Internet. Radio will slide to 6 th place seeing its market share go from 10% to 9%. 2011 Millions$

Internet represented 3% of total ad spend in Canada in 2004

Already Internet was ahead of OOH

Internet represents 9% in 2007, up 6 points!

Dailies have lost the most.

TV, weeklies and yellow pages each lost 1 point to Internet

In 2011, i.e. 3 years…

Internet will garner $3 billion of ad spend and be in 2 nd place achieving 16% share of total behind TV’s 22%

Dailies will slide to 3rd place, half a point behind Internet.

Radio will slide to 6 th place seeing its market share go from 10% to 9%.

Ad spend by media in Québec 2004-07 Internet represented 4% of total ad spend in Quebec in 2004 89% growth between 2004-05, then 68% between 2005-06. * Source : GAM 2006/08, IAB 2005/07, 2011 forecast on last 5 year’s growth average Internet owns 12% market share in 2007 Internet is ahead of OOH, Magazines and Radio. TV has lost the most since 2004 +35% +26% +16% +320% +8% +12% 4-12% % augmentation 2004 à 07 Market share changes between 2004-07 8-7% 6-6% 13-11% 31-31% 38-35% +4% +32% +14% +127% +11% +19% Growth from 2007 to 2011 In 2011, i.e. in 3 years… Internet will achieve $624 million in Quebec and remain in 3 rd place behind dailies and TV, Internet will gain 8 market share points while TV remains stable and dailies lose 6 points. 2011 Market shares in 2011 35% 25% 20% 10% 6% 5% Millions$

Internet represented 4% of total ad spend in Quebec in 2004

89% growth between 2004-05, then 68% between 2005-06.

Internet owns 12% market share in 2007

Internet is ahead of OOH, Magazines and Radio.

TV has lost the most since 2004

In 2011, i.e. in 3 years…

Internet will achieve $624 million in Quebec and remain in 3 rd place behind dailies and TV,

Internet will gain 8 market share points while TV remains stable and dailies lose 6 points.

4. What about social networks?

Who networks socially online?

Social network use in Canada 53% of Internet users in Canada use social networking sites to communicate with friends. That’s 20% more than in the US. It’s almost as high as our use of IM

53% of Internet users in Canada use social networking sites to communicate with friends.

That’s 20% more than in the US.

It’s almost as high as our use of IM

Purchase behaviour can be influenced by UGC sites 47% of Internet users would like to use social networks to find gift ideas or coupons. 45% would like to be made aware of in-store specials via their profile page. 22% would like to read or write product reviews through their profile page. Source : AMA, September 2007

47% of Internet users would like to use social networks to find gift ideas or coupons.

45% would like to be made aware of in-store specials via their profile page.

22% would like to read or write product reviews through their profile page.

4. Ad spend online & by media in Quebec?

Source: comScore Canada, visites octobre 2007, Canada français Search engine market shares in Quebec