The document discusses global technology trends, including the growth of digital technologies and usage. Some key points covered include: - The scale of digital connectivity and internet usage is growing exponentially - Regions like Asia-Pacific are leading in digital and mobile innovation - Emerging markets represent major opportunities for advertisers and brands as populations grow and consumption rises - Social media has become an influential global channel for communication, organization, and identifying influencers - The future will see further diversification of devices and connectivity, as well as increased advertising spending globally and locally across regions.

1. GLOBAL TECHNOLOGY TRENDS
GROWTH, USAGE AND THE FUTURE

2. AGENDA
DIGITAL LANDSCAPE
MACRO TRENDS
REGIONAL ANALYSIS
THE FUTURE
DISCUSSION
2

3. DIGITAL LANDSCAPE
3

4. THE NUMBERS ARE ASTOUNDING
20
# OF TYPICAL HHS AT THE END OF 2011 THAT GENERATED
MORE TRAFFIC THAN THE ENTIRE INTERNET IN 2008
50,000,000,000
# OF THINGS CONNECTED TO THE INTERNET BY 2020
340,282,366,920,938,463,463,
374,607,431,768,211,456
# OF POSSIBLE INTERNET ADDRESSES
4

5. IN A MINUTE YOU CAN...
5

6. GROWTH / DEVELOPMENT AT
AN UNPRECEDENTED PACE
SILICON VALLEY & SILICON ALLEY INNOVATION
INTENSITY / FOCUS / LEADERSHIP OF USA-BASED
COMPANIES - APPLE, GOOGLE, AMAZON.COM, FACEBOOK
COMBINATION OF TECHNOLOGY AND ELEGANT DESIGN
6

7. WE’RE SEEING THINGS LIKE
200MM+ FARMERS IN INDIA
RECEIVE GOVERNMENT
PAYMENTS / SUBSIDIES VIA
MOBILE DEVICES
7

8. PEOPLE DIDN’T KNOW WHAT
TO EXPECT FOR 2012
2011 WAS A YEAR OF VOLATILITY
MAJOR MARKETS SAW ANOTHER RECESSION
US & UK
PRESSURE ON THE ENTIRE EUROPEAN FINANCIAL
INFRASTRUCTURE
GREECE, IRELAND, ITALY, PORTUGAL & SPAIN SANK FURTHER INTO DEBT
NATURAL DISASTERS
JAPAN STRUGGLED REGAIN ITS FOOTING AFTER THE EARTHQUAKE AND
TSUNAMI IN MARCH 2011
POLITICAL REVOLUTIONS
EGYPT
8

9. DIGITAL EMERGED AS A MORE
INFLUENTIAL GLOBAL CHANNEL
THAN EVER THOUGHT
9

10. A MEANS OF PRIMARY
COMMUNICATION
10

11. A WAY TO INSPIRE &
ORGANIZE ACTIVISM
11

12. A WAY TO IDENTIFY
INFLUENCERS
12

13. WHAT MACRO TRENDS CAN
WE EXPECT OVER THE NEXT
TWO TO THREE YEARS?
13

14. MAJOR GROWTH IN TRAFFIC
14

15. FURTHER DEVICE DIVERSIFICATION
THE PROLIFERATION OF SMART
DEVICES IS DRIVING AN
INCREASE IN CONNECTIVITY
THERE WILL BE MORE THAN TWO
CONNECTIONS FOR EACH
PERSON ON EARTH
15

16. INCREASED AD SPENDING
2012 GLOBAL AD SPENDING
WILL APPROACH $500 BILLION
EMERGING MARKETS CONTINUE TO CLAIM EVER-
INCREASING SHARE OF GLOBAL AD SPENDING
ADVERTISERS SHIFTING FOCUS TO COUNTRIES
WITH EXPANDING POPULATIONS AND RISING
LEVELS OF CONSUMPTION
ONLINE AD SPEND GROWTH OUTPACED ALL
CHANNELS IN MOST MATURE MARKETS
16

17. DRILLING MORE SPECIFICALLY
INTO KEY MARKETS, WHAT
DOES THE FUTURE HOLD?
17

18. THINK GLOBALLY, ACT LOCALLY
WIDE VARIATIONS ON INTERNET PENETRATION &
MOBILE USAGE
NO GLOBAL LINK BETWEEN AFFLUENCE &
SMARTPHONE / MOBILE WEB ADOPTION
LATIN AMERICA LAGS IN INTERNET USAGE, BUT LEADS
SOCIAL NETWORK PENETRATION
NORTH AMERICA SEES THE OPPOSITE TREND
NORTH AMERICA LEADS GLOBAL DIGITAL SPENDING
ONLINE SPEND & ONLINE SPEND PER USER
18

19. ASIA-PACIFIC
19

20. MARKET OVERVIEW
WORLD’S FOREMOST GROWTH ENGINE
DUE TO RISING ECONOMIC OUTPUT
HUGE OPPORTUNITY TO ENGAGE WITH
ASPIRING CONSUMERS
CHINA AND INDIA POPULATIONS OVER 1 BILLION
SETTING THE PACE FOR DIGITAL AND
MOBILE INNOVATION
HONG KONG, JAPAN & SOUTH KOREA
20

21. GLOBAL POWERHOUSE
& BEST IN CLASS MOBILE
TOP SHARE OF GLOBAL AD SPENDING REGION BY 2015
2011 2015
SHARE - GLOBAL SPENDING 29.0% 10% 31.7%
TOTAL MEDIA SPENDING $146.3B 31% $191.4B
KNOWN FOR THE WORLD’S MOST ADVANCED
MOBILE TECHNOLOGIES
INTERNET ACCESS & PAYMENT SERVICES
2011 MOBILE USAGE VARIES
CHI
SMALLER COUNTRIES WILL QUICKLY CATCH UP
MOB
2011 2015
FRO
HONG KONG 95% 96% TO
SOUTH KOREA 85% 87%
JAPAN 83% 87%
CHINA 57% 78%
INDIA 52% 72%
21

22. KEY MARKET SPEND
OVERVIEW: CHINA
INTERNET LEADS AD SPEND GROWTH
DESPITE ONLY 40% PENETRATION
TV STILL RECEIVES THE MAJORITY OF SPEND
NEWSPAPER REPRESENTS A STRONG OPPORTUNITY IN CHINA,
GIVEN ITS SPEND LEVEL
PRINT IS THE ONLY CHANNEL SEEING SINGLE-DIGIT GROWTH
22

23. NORTH AMERICA
23

24. MARKET OVERVIEW
REG
ECONOMIC GROWTH EXPECTED TO DOUBLE EX
IN 2012 201
PRIMARILY DUE TO US PRESIDENTIAL ELECTION
DES
REC
WORST US ECONOMY IN RECENT YEARS -
SU
CANADA IS MORE SELF-SUFFICIENT
TO
CU
CURRENTLY THE LARGEST GLOBAL
MA
ADVERTISING MARKET
MORE THAN ONE-THIRD OF TOTAL GLOBAL AD SPEND OF
MA
NEW TECHNOLOGIES LAUNCH HERE FIRST EN
MAJOR POTENTIAL FOR WEB-ENABLED MOBILE DEVICES SMA
HER
24

25. MOST DIVERSIFIED MEDIA LANDSCAPE
& WORLD’S DIGITAL LEADER
OMNIPRESENT MEDIA OFFERS MORE
OPPORTUNITY TO REACH CONSUMERS
HIGH MULTITASKING & SIMULTANEOUS USAGE
PENETRATION OF EACH CHANNEL IS >60%
HIGHEST BROADBAND, MOBILE & INTERNET
PENETRATION
CONTINUED USAGE GROWTH THROUGH 2015
INTERNET +14% IN 2015 TO 79% / MOBILE +4% TO 78%
DIGITAL SPENDING PROVEN RECESSION-PROOF
2ND LARGEST # OF SOCIAL MEDIA USERS
164.2MM
25

26. KEY MARKET SPEND
OVERVIEW: NORTH AMERICA
NO ONE COUNTRY DRIVES THE TREND IN SPEND
US & CANADA AD SPEND BY CHANNEL IS VERY SIMILAR
TV LEADS IN TOTAL SPEND, WHILE INTERNET DOMINATES
GROWTH IN SPEND
INTERNET SPEND IS STILL 36% BEHIND TV
PRINT IS THE ONLY CHANNEL TO SHOW DECLINE
NEWSPAPERS REPRESENT THE LARGEST OPPORTUNITY IN THE SPACE
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27. WESTERN EUROPE
27

28. MARKET OVERVIEW
THE IMPACT OF THE ECONOMIC RECESSION IS STILL
FELT ACROSS MOST OF EUROPE
THE EXCEPTION IS GERMANY
DIVERSE CULTURES DRAMATICALLY INFLUENCE
MEDIA HABITS & PENETRATION
WESTERN EUROPE TENDS TO MIRROR NORTH
AMERICA
EASTERN EUROPE BALANCES NEW & OLD WORLD TRADITIONS
SHARE OF GLOBAL AD SPEND CONTINUES TO
DECLINE
28

29. DECLINING GLOBAL SHARE
& REGIONAL DISPARITY
SHARE OF AD SPEND WILL CONTINUE TO DECLINE
SPEND WILL GROW BY +4% BUT SHARE WILL DROP -7%
SOCIAL NETWORK PENETRATION RIVALS NORTH
AMERICA & ASIA PACIFIC
BROADBAND 55% 85% BROADBAND AND INTERNET PENETRATION CAN VARY
INTERNET 35% 78% COUNTRY TO COUNTRY
INTERNET 35% 78% MOBILE INTERNET USAGE CONTINUES TO GROW IN
MOBILE INTERNET 36% 37% COUNTRIES WITH LOW ONLINE PENETRATION
29

30. KEY MARKET SPEND
OVERVIEW: WESTERN EUROPE
EUROPE IS SEEING THE MOST SUBTLE RATES OF CHANGE IN SPEND
PRIMARILY SINGLE DIGITS
SPENDING TRENDS VERY SIMILAR TO NORTH AMERICA
INCLUDING DECLINES IN PRINT, BUT AT A SLOWER RATE
INTERNET MAKES UP 85% (+$2.9B) OF THE TOTAL AD SPEND
INCREASE
LEADS AD SPEND GROWTH AS WELL
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30

31. LATIN AMERICA
31

32. MARKET OVERVIEW
AFTER A HEALTHY REBOUND FROM THE RECESSION,
LATIN AMERICA’S GROWTH IS SLOWING
MULTINATIONAL ADVERTISERS MAY DEVOTE MORE
ATTENTION TO LATIN AMERICA
PENDING ECONOMIC UNCERTAINTY IN NORTH AMERICA & EUROPE
CONSUMERS WILLINGNESS TO SPEND DAMPENED BY
HIGHER INTEREST RATES
GLOBAL SHARE OF ADVERTISING WILL RISE
32

33. BIGGEST CHALLENGE IS INFRASTRUCTURE,
BUT THERE ARE POCKETS OF OPPORTUNITY
THE WEB MAY REMAIN A NICHE CHANNEL IN THE
SHORT TERM
TRADITIONAL IMPORTANT AS INTERNET PENETRATION IS LOW
WEALTH = ACCESS
AFFLUENT CONSUMERS = HIGHER %AGE OF ONLINE POPULATION
MOBILE PENETRATION IS HIGH, BUT MOBILE
INTERNET PENETRATION IS LOW
BRAZIL IS DRIVING MOBILE GROWTH
MOBILE AD SPEND IN BRAZIL DOUBLED YOY IN 2011 ($23.8MM) AND
IS EXPECTED TO REACH $175MM IN 2015
GLOBAL SOCIAL LEADERSHIP
OF INTERNET USERS, 88% ARE ACTIVE ON SOCIAL NETWORKS
33

34. KEY MARKET SPEND
OVERVIEW: LATIN AMERICA
CONTRARY TO OTHER MARKETS, TRADITIONAL MEDIA CHANNELS SEE
DOUBLE DIGIT SPEND INCREASES
TV AND NEWSPAPERS LEAD ALL CHANNELS IN TOTAL SPEND INCREASE
LAG BEHIND DIGITAL IN TOTAL % INCREASE
INTERNET SPENDING IS UP +25%
DRIVEN LARGELY BY ARGENTINA
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34

35. WHAT DO WE SEE AS
THE FUTURE OF
GLOBAL DIGITAL?
35

36. LOCAL AND SOCIAL MARKETING
BRANDS WILL CONTINUE TO CREATE APPS TO TAP INTO
GEO-LOCATION SERVICES AND SOCIAL NETWORKING
36

37. SOCIAL & MOBILE E-COMMERCE
SECURITY IS THE #1 CONSUMER CONCERN WITH
SOCIAL / E-COMMERCE - WHOEVER CRACKS THAT
CODE WILL DOMINATE
83% OF PEOPLE THINK BY 2015, MOBILE PAYMENT WILL BE
MAINSTREAM
37

38. B TO B E-COMMERCE
MERCHANTS WILL CONTINUE TO SELL
GOODS ACROSS GLOBAL BORDERS IN THE
MOST DEVELOPED COUNTRIES, WHILE
EMERGING COUNTRIES GET THEIR FOOTING
38

39. CLIENT IMPLICATIONS
GLOBAL MARKETING IS DON’T IGNORE
NOT A ONE-SIZE FITS ALL TRADITIONAL MEDIA
MEDIA OPPORTUNITIES, TECHNOLOGIES WHERE RELEVANT
AND CONSUMER BEHAVIOR VARY NOT TRENDS POINT TOWARD DIGITAL,
ONLY BY MARKET, BUT BY REGION AND HOWEVER, IN MANY MARKETS
COUNTRY NEWSPAPER & TV ARE STRONG
IT’S ALL ABOUT THE
TEST BEFORE YOU SCALE CONSUMER
SMALLER, MORE DEVELOPED MARKETS AS DIGITAL GROWS, MORE AND
MAY BE BEST AREAS TO TEST DIGITAL MORE OPTIONS WILL PRESENT
INNOVATION BEFORE ROLLING OUT THEMSELVES TO CONSUMERS -
TO THE MASSES KNOWING THOSE OPTIONS AND
HOW CONSUMERS ARE USING
THEM IS CRITICAL TO SUCCESS
39

40. DISCUSSION / SCENARIOS
40

41. HOW CAN CLIENTS CAPITALIZE
ON...
41

42. REAL-TIME BUSINESS TRACKING?
42

43. AUTOMATED DOMINO EFFECT?
43

44. SOCIAL MEDIA GROWTH?
44

45. APPENDIX
45

46. SOURCES
CHINA
• US Census Bureau, International Data Base, Dec 1, 2010
• Sinomonitor, "China Marketing and Media Study," 2000, 2006 & Spring 2011; provided by Starcom MediaVest Group, July 2011
• eMarketer, April 2011, March 2010; various, as noted, 2010 & 2011, March 2011, Jan 2011; various, as noted, 2010 & 2011
ARGENTINA
• US Census Bureau, International Data Base, Dec 1, 2010
• TGI Latina, "Argentina Study," 2010; provided by Starcom MediaVest Group, July 2011
• eMarketer, March 2011, March 2010; various, as noted, 2010
• comScore Media Metrix, "The State of the Internet in Argentina,," June 14, 2011
• comScore Inc., "The Brazilian Online Audience," Feb 9, 2011; Pew Research Center's Global Attitudes Project, "Computer and Cell Phone Usage Up
Around the World: Global Publics Embrace Social Networking," Dec 15, 2010
• TGI Latina, "Argentina Study," 2010; provided by Starcom MediaVest Group, July 2011/ ZenithOptimedia, July 2011; provided by Starcom MediaVest
Group, July 2011
• Starcom MediaVest Group, Aug 2011
ITALY
• US Census Bureau, International Data Base, Dec 1, 2010
• GfK Eurisko, "Sinottica Survey," 2009 & 2011; provided by Starcom MediaVest Group, July 2011
• eMarketer, Jan 2011, March 2011, Feb 2011, July 2011, June 2011
• ZenithOptimedia, July 2011; provided by Starcom MediaVest Group, July 2011
• Starcom MediaVest Group, Aug 2011
46

47. SOURCES
BRAZIL
• US Census Bureau, International Data Base, Dec 1, 2010
• eMarketer, March 2011; various, as noted, 2010 & 2011, April 2011
• ZenithOptimedia, July 2011; provided by Starcom MediaVest Group, July 2011
MEXICO
• US Census Bureau, International Data Base, Dec 1, 2010
• TGI Latina, "Mexico Study," Dec 2005 & Jan 2011; provided by Starcom MediaVest Group, July 2011
• eMarketer, March 2011 , various, as noted, 2010 & 2011
• ZenithOptimedia, July 2011; provided by Starcom MediaVest Group, July 2011
• Starcom MediaVest Group, Aug 2011
CANADA
• US Census Bureau, International Data Base, Dec 1, 2010
• Newspaper Audience Databank Inc. (NADbank), 2010; PMB Print Measurement Bureau, 2000, 2005 & 2011; provided by Starcom MediaVest Group,
July 2011
• eMarketer, Jan 2011
• comScore MobiLens, March 2011; PMB Print Measurement Bureau, 2011; provided by Starcom MediaVest Group, July 2011
• eMarketer, Jan 2011; International Telecommunication Union (ITU), "World Telecommunication Indicators Database," June 2011/ PMB Print
Measurement Bureau, 2011; provided by Starcom MediaVest Group, July 2011/eMarketer, March 2011; various, as noted, 2010 & 2011
• eMarketer, April 2011; various, as noted, 2010 & 2011, April 2011, June 2011
• comScore MobiLens, March 2011; provided by Starcom MediaVest Group, July 2011
•Starcom MediaVest Group, Aug 2011
US
• eMarketer 2010 & 2011; GfK MRI, "Survey of the American Consumer—Doublebase," 2000, 2005 & 2010; provided by Starcom MediaVest Group, July
2011
• eMarketer, Dec 2010, Jan 2011 Feb 2011, June 2011, Aug 2011, March 2011, Sept 2011. various, as noted, 2010 & 2011
• GfK MRI, "Survey of the American Consumer—Doublebase," 2010; provided by Starcom MediaVest Group, July 2011
• GfK MRI, "Survey of the American Consumer—Doublebase," 2010; provided by Starcom MediaVest Group, July 2011
• comScore, "Demographic Profile Report for All Conversational Media," June 2011; provided by Starcom MediaVest Group, July 2011
• comScore M:Metrics, May 2011; provided by Starcom MediaVest Group, July 2011
• Mary Meeker: Internet Trends - Web 2.0 Summit Oct 18, 2011
• Cisco IBSG. Jim Cicconi. AT&T, Steve Leibson, Computer History Museum, CNN
47

48. SOURCES
FRANCE
• US Census Bureau, International Data Base, Dec 1, 2010
• Médiamétrie, "MMW Consultation Interface," 2000, 2005 & 2010; Médiamétrie, "Mobile Consumer Insight," "Observatoire des Usages Internet,"
"Téléphonie et Services Mobiles" and "126000 Radio," 2010; provided by Starcom MediaVest Group, July 2011
• eMarketer, Jan 2011, March 2011, Feb 2011, June 2011
• AudiPresse SAS, "AEPM," 2010; Médiamétrie, "MMW Consultation Interface" and "Observatoire des Usages Internet," 2010; provided by Starcom
MediaVest Group, July 2011
• ZenithOptimedia, July 2011; provided by Starcom MediaVest Group, July 2011/ Starcom MediaVest Group, Aug 2011
GERMANY
• US Census Bureau, International Data Base, Dec 1, 2010
• Media Market Insights, "Typologie der Wünsche (TdW)," 2000, 2005 & 2011; provided by Starcom MediaVest Group, July 2011
• eMarketer, Jan 2011,March 2011, June 2011
• Media Market Insights, "Typologie der Wünsche (TdW)" 2011; provided by Starcom MediaVest Group, July 2011
• Media Market Insights, "Typologie der Wünsche (TdW)" 2011; provided by Starcom MediaVest Group, July 2011
• Axel Springer AG & Bauer Media Group, "VerbraucherAnalyse Klassik III," 2010; provided by Starcom MediaVest Group, July 2011
• Institut für Demoskopie Allensbach, "Allensbacher Computer- und Technik-Analyse (ACTA) 2010,” Oct 2010/ Media Market Insights, "Typologie der
Wünsche (TdW)" 2011; provided by Starcom MediaVest Group, July 2011
• ZenithOptimedia, July 2011; provided by Starcom MediaVest Group, July 2011
UK
• US Census Bureau, International Data Base, Dec 1, 2010
• Office of Communications (Ofcom) - UK, "UK Adults' Media Literacy" conducted by Saville Rossiter-Base, April 2011
• Radio Joint Audience Research Limited (RAJAR) - UK, "Quarterly Summary of Radio Listening," April-Sep 2010; provided by Starcom MediaVest
Group, July 2011
• Institute of Practitioners in Advertising (IPA) "Touchpoints," 2010; provided by Starcom MediaVest Group, July 2011
• National Readership Survey (NRS) - UK, 2010; provided by Starcom MediaVest Group, July 2011
• eMarketer, Jan 2011, Jan 2011; various, as noted, 2010 & 2011, March 2011, Feb 2011, June 2011
• UKOM/Nielsen Online, July 2010; provided by Starcom MediaVest Group, July 2011
• UKOM/Nielsen Online, July 2010; provided by Starcom MediaVest Group, July 2011
•Starcom MediaVest Group, Aug 2011
48