State of the internet 2012

State of the Internet1st Quarter 2012

Agenda Worldwide Context US Vital Signs State of the Internet – Video – Search – Mobile – eCommerce Monetization © comScore, Inc. Proprietary and Confidential. 2

The US Is No Longer the Center of the Online UniverseUS Internet Population vs. Rest of the World Distribution of Worldwide Internet AudienceRest of the North World 34% America Europe 14.6% Latin 26.6% America 87% 8.9% 8.8% Middle East US - Africa 66% Asia Pacific 41.0% 13% 1996 2012  In 1996, 2/3 of the world’s Internet population was in the US, yet today Asia Pacific is the largest region with over 41% of the population.  Many emerging regions are likely to bypass old modes, skipping dial-up to go straight to broadband, making multimedia, video, and collaborative content immediately accessible.  Early adoption of mobile web in addition to PC web will likely be popular in many of these high- growth areas. © comScore, Inc. Proprietary and Confidential. 3 Source: comScore World Metrix, March 2012

9% Worldwide Growth Fueled by Country Growth Internet Users Age 15+ (MM) China 333.3 United States 190.7 Japan 73.5 India 56.3 Russian Federation 56.0 Germany 51.5 Brazil 45.5 While US user growth was just 5.3% France 43.2 over the past year, India, Italy, United Kingdom 37.6 Mexico, and the Russian Federation have experienced impressive growth South Korea 31.0 rates of 32%, 24%, 22%, and 18% Italy 28.6 respectively. Canada 24.0 Turkey 23.6 Mexico 22.8 Spain 21.6 © comScore, Inc. Proprietary and Confidential. 4 Source: comScore World Metrix, March 2012

Online Engagement by Country Average Hours Per Visitor Per Month Canada 44.3 United States 38.8 United Kingdom 35.1 Netherlands 33.8 Turkey 33.0 Israel 31.8 Canada is consistently the Thailand 30.4 most engaged country. The Poland 30.2 average visitor spent more Vietnam 28.7 than 44 hours online in March Norway 28.6 2012. Brazil 28.4 Russian Federation 28.2 Finland 28.1 Argentina 26.5 Hong Kong 26.5 © comScore, Inc. Proprietary and Confidential. 5 Source: comScore World Metrix, March 2012

More Worldwide Unique Visitors Are Spending More Minutes onSocial Networking Sites than Email Sites Global Total Unique Visitors (000) 1,400,000 +17% Unique Visitors (000) 1,200,000 1,000,000 800,000 +13% 600,000 400,000 200,000 0 Mar-2011 May-2011 Jul-2011 Sep-2011 Nov-2011 Jan-2012 Mar-2012 Email Social Networking 500,000 Global Total Minutes (MM) +37% 400,000 Minutes (MM) 300,000 200,000 100,000 +3% 0 Mar-2011 May-2011 Jul-2011 Sep-2011 Nov-2011 Jan-2012 Mar-2012 Email Social Networking © comScore, Inc. Proprietary and Confidential. 6 Source: comScore World Metrix, March 2012

Is the US Internet Really Still Growing? Total US Internet Users 250,000 +5%  Yes, the US 200,000 Internet is still 150,000 +6% growing, albeit not 100,000 as quickly as it 50,000 had been. 0  The Average Total Unique Visitors (000) Average Daily Visitors (000) Minutes per Visitor grew 9% over the Total US Internet Engagement past year. 2,500 2,000 +9%  The average 1,500 internet user made 1,000 4 more visits to the internet in 500 +7% March 2012 than in 0 March 2011. Average Minutes per Visitor Average Visits per Visitor © comScore, Inc. Proprietary and Confidential. 8 Source: comScore US Media Metrix Panel Only Data, March 2012

What Online Categories are Driving Web Usage? The 31+ hours the average user spends online is divided among several key content categories such as Social Media, Entertainment, and Portals. Top Categories Reach Top Categories Engagement Y/Y % 100% 0% +1% change Y/Y % change +3% -3% 400 -7% -1% +16% Average Minutes/UV 95%Reach 300 +24% 90% -1% 200 +10% +11% +2% 85% 100 0 © comScore, Inc. Proprietary and Confidential. 9 Source: comScore US Media Metrix Panel Only Data, March 2012

Which Categories are Driving Web Growth? 100,000  As expected in 90,000 an election year, +29% Political sites 80,000 saw terrific 70,000 growth yearUVs (000) +47% over year at 60,000 +54% +46% +28% 132%. 50,000 +30% 40,000 30,000 +132% +52%  The Gay/Lesbian 20,000 category +93% 10,000 continued to see impressive 0 growth, growing 93% between March 2011 and March 2012. March 2011 UVs March 2012 UVs © comScore, Inc. Proprietary and Confidential. 10 Source: comScore US Media Metrix Panel Only Data March 2012

Unique Visitors to social networking sites have increased 6% year over year Since reporting began in May 2011, the idea sharing website Pinterest has seen exponential growth in Unique Visitors. 170,000 +4% 155,000 140,000 125,000 110,000UVs (000) 95,000 80,000 +58% 65,000 50,000 +67% 35,000 +168% 20,000 5,000 +4377% -10,000 Facebook Twitter Tumblr LinkedIn Pinterest © comScore, Inc. Proprietary and Confidential. 11 Source: comScore US Media Metrix Panel Only Data, March 2012

Pinterest is the fastest growing social media site in both UniqueVisitors and Clicks on search engines Pinterest is a content sharing website in which users “pin” 20,000 4,000 images and videos to share in an online community. Since 18,000 3,500 reporting began in May, it is 16,000 the fastest growing social 3,000 Search Engine Clicks (000) 14,000 media site of the past year.Unique Visitors (000) 2,500 12,000 10,000 2,000 8,000 1,500 6,000 1,000 4,000 500 2,000 0 0 Unique Visitors (000) Search Engine Clicks (000) © comScore, Inc. Proprietary and Confidential. 12 Source: comScore US Media Metrix Data

Pinterest buyers spend more, buy more items, and conduct more transactions than other social media buyers Bubble size = Dollars per Buyer Buying Power Index 5.60300250 5.40200150 5.20100 Items per Buyer50 5.00 Facebook 0 LinkedIn Pinterest Twitter Facebook Tumblr Pinterest 4.80 Twitter Pinterest users are second only to LinkedIn LinkedIn users in the Buying Power Tumblr 4.60 Index of the top 5 social media sites. However, Pinterest buyers spend more 4.40 money, more often, and on more items than any of the other top 5 social 4.20 media sites. 2.70 2.80 2.90 3.00 3.10 Transactions per Buyer © comScore, Inc. Proprietary and Confidential. 13 Source: comScore US Media Metrix Data

The average internet user viewed 243 videos with a viewing timeof 21 hours, 22 minutes March 2012 US Video Viewers 187MM Value Drivers of Online Video Advertising % Of Internet Users Who Viewed  Reach of elusive audiences 83% At Least One Video  Better engagement Total # of Viewed Videos 45.4B  However, monetization is still a big challenge: YoY Growth in Video Views 33%  User experience  Rights for UGC (User Generated Content) Videos per Viewer 243 Viewing Time per Viewer 21 hr 22 min © comScore, Inc. Proprietary and Confidential. 15 Source: comScore Video Metrix, March 2012

Males Are More Engaged Online Video Viewers than Females Video Activity By Gender 1900 Females Males 1,807 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 755 700 600 500 400 313 300 +116% 172 200 93 94 +120% 100 +66% +139% +82% 0 UVs (MM) Videos per Viewer Minutes per Viewer © comScore, Inc. Proprietary and Confidential. 16 Source: comScore Video Metrix, March 2012

Duration Jumps as Long-Form Content Floods the Web Total US Streaming Minutes and Video Views 300 Total US Duration and Video Views 250 Total Minutes Total Videos +53%  Sites heavy with 200 long-form content have continued to 150 grow over theBillions past year, 100 contributing to the increase in 50 +47% time spent streaming. 0 Mar 11 Apr 11 May 11 June July 11 August Sept 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 11 11 March 2011 March 2012Hours per Viewer 14.7 21.4Videos per Viewer 192.1 242.6Minutes per Video 4.6 5.3 © comScore, Inc. Proprietary and Confidential. 17 Source: comScore Video Metrix, March 2012

Global Search Market Growth of 22% Y/Y–More Than 4.1 Million Searches per Minute 30,000 +8% Top 10 Countries by Number of Searches (MM) Conducted*  Google sites 25,000 account for Apr-2011 20,000 over two- +56% Apr-2012 thirds of the 15,000 +45% 177 billion 10,000 +21% 11% +23% +39% searches +4% +35% +54% 5,000 conducted worldwide in 0 United China Japan United Germany Brazil Russian France Turkey India April. States Kingdom Federation140,000 +21%  Chinese Top 10 Search Properties by Searches (MM) Conducted based Baidu120,000 Apr-2011 (13.8 billion100,000 searches) was 80,000 Apr-2012 second in front of 60,000 Yahoo! (9.9 40,000 +53% +6% billion -16% +44% +97% 11% +38% -7% -40% 20,000 searches). 0 *Searches based on “expanded search” definition, which includes searches at the top properties where search activity is observed, not only the core search engines. © comScore, Inc. Proprietary and Confidential. 19 Source: comScore qSearch 2.0, April 2012

qSearch 2.0: Trends in the U.S. Search Market 27.7 billion searches were performed in April 2012, which marked an 8% growth rate over April 2011. Total U.S. Searches for all qSearch properties (Billions) Change vs. April-11 29.5 29.5 28.5 +8% 28.3 28.3 28.0 27.4 27.7 27.2 27.3 27.1 26.6 25.6 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 © comScore, Inc. Proprietary and Confidential. 20 Source: comScore qSearch 2.0, April 2012

qSearch 2.0: Trends in the U.S. Search Market Increases in search intensity by Heavy Searchers and Medium Searchers helped drive search growth. Segment Contribution to Search Intensity Total Searches Change vs. Searches per Searcher April-11 Percentage of 450 Searches 370.9 389.0 400 +5% 350 300 63.8% 250 200 27.2% 150 108.6 110.5 +2% 100 9.0% 50 22.5 21.9 -3% 0 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Heavy Searchers (Upper 20%) Moderate Searchers (Middle 30%) Light Searchers (Bottom 50%) © comScore, Inc. Proprietary and Confidential. 21 Source: comScore qSearch 2.0, April 2012

qSearch 2.0: Leading U.S. Search Properties  Microsoft, Yahoo!, and AOL show intensity growth versus a year ago. Leading Search Properties: Searches per Searcher Change vs. April-11 90 83.4 0% Google Sites 80 70 60 50 +19% Microsoft Sites 40 +2% Yahoo! Sites 30 30.4 27.8 20 +9% AOL, Inc. 10 9.3 7.8 -2% Ask Network 0 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 © comScore, Inc. Proprietary and Confidential. 22 Source: comScore qSearch 2.0, April 2012

Mobile On Track to Eclipse the Desktop Number of Global Users (Millions) 2,000 1,800 1,600 1,400 1,200 1,000 Desktop 800 Mobile 600 400 200 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 © comScore, Inc. Proprietary and Confidential. 24 Source: Morgan Stanley Research

How the U.S. Mobile Market Has Changed – Highlights of Q1 2012 The number of Smartphone owners grew by 47% year-over-year in March 2012 In March 2012 there were 106.7 million Smartphone owners. Growth of U.S. Smartphone U.S. Smartphone Penetration Installed Base 100,000 Smartphone 45.6% # Phone Owners (000) 80,000 60,000 Not 106.7 million Smartphone 40,000 +47% 54.4% Year on Year Growth 20,000 0 Product: MobiLens Data: Three month average ending March 2012 © comScore, Inc. Proprietary and Confidential. 25 Country: US, N= 30,963

Continuous Decline of Feature Phones as Newly Acquired Devices In March 2012 62.9% of new phone acquisitions were Smartphones. Google and Apple accounted for the majority of new device acquisitions in Q1 Google had a share of 58%, while iPhones made up just over 26% of new Smartphones. New Devices Acquired by Type New Smartphones Acquired by OS Microsoft Other OS 100% 4.6% 1.3%% Acquired Device in Month 90% 80% 40.5% 37.1% 52.5% 52.0% 47.5% RIM 70% 9.5% 60% 50% 40% Google 30% 59.5% 62.9% Apple 58.3% 47.5% 48.0% 52.5% 26.3% 20% 10% 0% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Smartphone Not Smartphone Product: MobiLens Data: Three month average ending March 2012 © comScore, Inc. Proprietary and Confidential. 26 Country: US, N= 30,963

Android And Apple Devices Dominate U.S. Smartphone Market Smartphone Operating System  Google’s Android platform share grew rapidly over the past year, Share increasing its market share to 100% 51.0%. 90% Google  Apple’s share increased from 34.8% 25.0% to over 30%. Android and 80% Apple combined now account for 51.0% over 80% of the Smartphone% Smartphone Installed Base 70% Apple market. 60%  RIM has taken 3rd position in the 50% 25.5% RIM Smartphone market. In March 2012, RIM handsets accounted for only 40% 12.3% of all Smartphones 30.7% 30% Microsoft  Microsoft based devices also lost 27.1% market share and represented 3.9% 20% in March 2012. 10% 12.3% 7.5% Other OS 5.1% 3.9% 0% 2.1% March 2011 March 2012 Product: MobiLens Data: Three month average ending March 2012 © comScore, Inc. Proprietary and Confidential. 27 Country: US, N= 30,963

15.0% of all U.S. Smartphone Owners Accessed Digital Books orMagazines on their phones in March 2012  16.8% of these 16 million Smartphone owners accessed digital books or magazines on their devices ‘almost every day’.  Amazon’s app had the highest reach among all Smartphone owners using eReader apps. Frequency of Accessing Digital Books Reach of apps among Smartphone or Magazines owners with eReader apps60.0% 54.0%50.0%40.0% 11% 29.2% Amazon.com30.0% Google 16% 38%20.0% 16.8% Barnes & Noble10.0% iBook 16%0.0% 19% eReader.com Almost every At least once Once to three day each week times throughout the month Product: MobiLens Data: Three month average ending March 2012 © comScore, Inc. Proprietary and Confidential. 28 Country: US, N= 30,963

Multi-Device Ownership: The Rise of the Digital Omnivore Tablets have led to the rise of the “Digital Omnivore” – consumers who engage seamlessly with multiple online touch points daily. 24.9% of all U.S. Smartphone owners also owned a tablet, up 308% from the previous year. Percentage of Smartphone Audience Also Owning a Tablet 24.9% 8.9% March 2011 March 2012 Product: MobiLens Data: One month snapshot, March 2011 / March 2012 © comScore, Inc. Proprietary and Confidential. 29 Country: US, N= 9,981

Overall e-Commerce dollar sales have posted double-digit gains in every quarter since Q4 2010 and are now well ahead of pre-recession levels e-Commerce Dollar Sales ($ Billions) Source: comScore e-Commerce Measurement % Chg vs. YA +13% +6% -3% 0% -1% -2% +3% +10% +9% +9% +11% +12% +14% +13% +14% +17% $49.7 Compared to pre-recession levels (Q1 2008), total retail in Q1 2012 is$43.4 $44.3 $38.1 $39.0 up 10%... $38.0 $37.5 $36.3 $33.9Billions ($) $32.9 $30.6 $30.3 $31.0 $30.2 e-Commerce is up +42% $29.6 $32.1 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 © comScore, Inc. Proprietary and Confidential. 31

Led by Amazon’s +29% growth, many retail sites posted double-digitgains in unique visitors in Q1 vs. a year ago Avg. Monthly UVs (MM) on Select Retail Sites in Q1 2012 Source: comScore Media Metrix, U.S. Y/Y Change Amazon Sites 107.4 +29% Apple.com 48.3 +25% Wal-Mart 39.7 +18% Netflix.com 28.2 +9% Target Corporation 24.7 +8% Best Buy Sites 19.9 +12% Ticketmaster 15.7 +42% Sears.com 13.4 +23% Hewlett Packard 12.9 -21% Macys Inc. 12.9 +26% © comScore, Inc. Proprietary and Confidential. 32

About 1 in 10 consumers had aided awareness of the term‘showrooming’“Showrooming” – verb.Visiting a brick-and-mortar store to see aproduct but instead purchasing the productonline. Shoppers may intend from the start topurchase the product online, or may decide topurchase online, rather than in-person, afterviewing the item at the store. 16% 12% All respondents 8% Men Women % who have heard of showrooming © comScore, Inc. Proprietary and Confidential. 33

35% of respondents have engaged in ‘showrooming’. Most intended to buy at brick-and-mortar but changed their mind at the store Consumer Usage of Showrooming Q. Based on this definition, have you ever done this activity? (showrooming) Source: comScore Survey – April 2012 Who’s engaging in showrooming?  35% of all respondents …and did they plan it?  50% of respondents ages 25-34,  6 in 10 ‘showroomers’ say they the highest of any age group originally planned to purchase at the store, but changed their mind while  48% of tablet owners and 43% of smartphone owners there & instead bought online  43% of Millenials*  32% said they went to the store always intending to buy online * - defined as ages 18-29 © comScore, Inc. Proprietary and Confidential. 34

Price was the biggest driver of ‘showrooming,’ while some wanted to see item in person before deciding to purchase Why Consumers Are Engaging in ‘Showrooming’ Q. Which of the following describe why you utilized showrooming? (Please select all that apply) Source: comScore Survey – April 2012 Price was better online 72% Planned to buy online but wanted to see item(s) in person before ordering 45% Item was out of stock at store 24% Would rather have item(s) shipped to home than 18% Location, Location, Location take home with me Respondents living in urban areas were nearly twice as likely (26%) to choose this option than those living in suburban Was not convenient to buy in-person at the time 17% or rural areas (15% for both) Other 5% % among those who engaged in showrooming © comScore, Inc. Proprietary and Confidential. 35

Consumer Electronics and Apparel were the most popular categoriesamong consumers who bought via showrooming Product Categories Most Likely to be Purchased via Showrooming Q. Which of the following types of item have you bought online after using ‘showrooming?’ (Please select all that apply) Source: comScore Survey – April 2012 Consumer electronics 63% Apparel, clothing & accessories 43% Books 29% Appliances 22% Toys 22% Jewelry / watches 16% Other 10% % among those who engaged in showrooming © comScore, Inc. Proprietary and Confidential. 36

US Online Ad Spend Poised to Grow 18% in 2012 US Online Ad Spending 2010-2015 $ Billions and % Change $50 $45 $40 $35 $30 $25 $20 $15 20.2% 17.6% $10 14.9% 12.0% 10.4% 8.8% $5 $0 2010 2011 2012 2013 2014 2015 © comScore, Inc. Proprietary and Confidential. 38 Source: eMarketer: US Online AdSpend Poised to Grow 20% in 2011

Who are the top advertisers in the online market in March 2012? Top 10 Online AdvertisersTotal Display Ad Impressions 10,000,000 9,000,000 8,000,000 7,000,000 (000) 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Telecommunications company AT&T has a large online advertising presences. Top advertisers also include Microsoft and business/finance companies, Experian and Scottrade. © comScore, Inc. Proprietary and Confidential. 39 Source: comScore US Ad Metrix, March 2012

Are consumers actually seeing the ads? US CA EU 67% 69% 65% AVERAGE AVERAGE AVERAGE Campaign In-view ad rates ranged from: US 55% to 93% EU 64% to 72% CA 56% to 74% © comScore, Inc. Proprietary and Confidential. 40 Source: comScore vCE Charter Studies

Large sites within a content category do a better job thansmaller sites at ensuring the ads are actually viewable Percentage of Ads Served In-View within a Given Site Category The difference in in-view rates between Top 50 sites versus the long tail sites in their category was a full 16-percentage points © comScore, Inc. Proprietary and Confidential. 41 Source: comScore vCE Charter Studies

Digital Ad Economics:The good guys aren’t necessarily winning Correlation of In-View Rates & CPM An equally as weak correlation was also observed between CPM and ability to hit a primary demographic target © comScore, Inc. Proprietary and Confidential. 42 Source: comScore vCE Charter Studies

State of the internet 2012

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