1. The Future of Internet Advertising
Mike Read, comScore Europe

2. Agenda
comScore Introduction
The Shape of the Internet
The Future of Online Advertising

3. comScore Leverages Rich Panel Data to Deliver
Unique and Broad Digital Business Analytics
2 Million Person Panel The Only Global Measurement
360°View of Person Behaviour of Audience and E-commerce
200+ Countries Under Measurement
43 Markets Reported

4. A Comprehensive Suite of Products and Services
Media Planning & Analysis
Web Analytics
Video & Distributed Media Measurement
Social Analytics
Search Marketing
Marketing on the Internet
Technology Tracking
Industry Solutions
Copy Testing
Advertising Effectiveness
Cross Media Measurement
Mobile Solutions
International Solutions
Custom Research
V0411

5. Agenda
comScore Introduction
The Shape of the Internet
The Future of Online Advertising

6. Russia will Become the Biggest European
Online Population
+ 3% yoy
+ 14% yoy
Source: comScore Media Metrix, August 2011

7. Central Region (including Moscow) represents
31% of Russia’s online population

8. Russians don’t consume News or Buy online quite to
the same degree yet as the Rest of Europe
Source: comScore Media Metrix, August 2011

9. Social Networking – Disproportionately Popular in Russia…?
Social Networking Share of Total Pages and Time Spent
Social Networks account for 42% of Total Page Views and 32% of Total Time Online in Russia
© comScore, Inc. Proprietary and Confidential . 9 Source: comScore World Metrix, August 2009

10. Russians Love Social Networking!!!!
Time Spent per person on Social Networking
800.0
700.0
600.0
500.0
400.0 Russian Federation
300.0 United States
200.0 United Kingdom
100.0
Germany
0.0
Jul-2011
Jan-2011
Jun-2011
Aug-2010
Dec-2010
Sep-2010
Aug-2011
Oct-2010
Apr-2011
Mar-2011
Feb-2011
May-2011
Nov-2010
Source: comScore Media Metrix, Russia August 2011

11. Has Facebook’s Growth Stopped?
UV Trend Time Spent Trend
Source: comScore Media Metrix, Russia August 2011

12. 53% of Time Spent Online is Spent on 5 Properties
Source: comScore Media Metrix, August 2011

13. Agenda
comScore Introduction
The Shape of the Internet
The Future of Online Advertising

14. The Future of Online Advertising
Branding
But ……..
If we are not careful we will miss an opportunity to grow
Online as a Branding Medium
• Average Click thro rates are pitifully low and declining

15. … Limiting The Branding Potential Of Online
Does this guy’s click effectively measure the
branding impact of exposing the other 999 users
to the same ad?
© comScore, Inc. Proprietary and Confidential . 15

16. How Do Russians React to Advertising?
Only 10% of the Russian online population click on Display ads!
Source: comScore Marketing Solutions, Russia, August 2010

17. Heavy Clickers: Not Representative
Internet Usage Skew
Source: comScore Marketing Solutions, Russian Federaion August 2010

18. What’s happening in the US ?
Source: comScore Marketing Solutions, Russia, August 2010

19. Digital has historically lagged in capturing branding dollars ….
But that is changing with display now growing 2X faster than search
2010 U.S. Measured Media Spend
$149 Billion
Branding
$91B
61%
2010 U.S. Online
Media Spend
$26 Billion 6% of
branding
$6B dollars
$20B
Response
34% of direct
Direct
39% $58B
response
dollars
Source: Brand.net analysis based on Barclays Capital and DMA

20. In US Display Advertising reached $10 billion
dollars in 2010.
But…
Up to 80% of all online ads are delivered
through third parties, which means
advertisers are often unaware of how, where
and to whom the ads are actually being
served.
© comScore, Inc. Proprietary. 20

21. To Solve the Problem, IAB, ANA and AAAAs Joined Forces…
The 3MS Mission:
 Aim to reduce costs of doing business resulting from complexity of
digital advertising ecosystem
 ‘Single Tag’ solution needed to reduce complexity
 Improve reporting of ad exposure
 Bolster confidence that ads delivered are actually seen
© comScore, Inc. Proprietary. 21

22. The Future of Online Measurement
Making Measurement Make Sense: Five Guiding Principles of
Digital Measurement
• Principle #1 – Move to a “viewable impressions” standard and
count real exposures online.
• Principle #2 – Online advertising must migrate to a currency
based on audience impressions, not gross ad impressions.
• Principle #3 – Because all ad units are not created equal, we
must create a transparent classification system.
• Principle #4 – Determine interactivity “metrics that matter” for
brand marketers, so that marketers can better evaluate
online’s contribution to brand building.
• Principle #5 – Digital media measurement must become
increasingly comparable and integrated with other media.

23. comScore Realized That in Order to Help the
Industry Achieve its True Potential….
…it needs measurement tools to help control these situations and take
corrective actions when necessary.
+
Truly comprehensive verification of ad delivery that addresses these industry
challenges will ultimately result in the migration of more ad $ to digital, helping the
digital advertising industry to reach its true potential.

24. Questions?
mread@comscore.com