State of the Internet Worldwide :State of the Internet Worldwide January 29, 2008 MEASURING THE DIGITAL WORLD


It’s called the “world” wide web for a reason :2 It’s called the “world” wide web for a reason Online Population Growth over Time International Growth almost twice U.S. Growth Online Population by Geography Rest of the World United States In 1996, two-thirds of the world’s online population was in the U.S. Today, the U.S. only accounts for 23% of Worldwide users Source: comScore World Metrix, October 2007 International Y/Y Growth = 10.1% U.S. Y/Y Growth = 5.2%


Worldwide Y/Y Growth is at 10.1% :3 Millions of Internet Users +10.1% Worldwide Y/Y Growth is at 10.1% Millions of Internet Users +14.3% +6.4% +4.4% +8.2% +15.8% +19.0% There are 74 million more Internet users today than this time last year Current growth is being driven by the Asia Pacific region, with a 14.3% increase on a very large base Source: comScore World Metrix, October 2007


Emerging countries are fueling growth :4 Internet Users (Millions) in Asia Pacific Region Emerging countries are fueling growth China and India made the biggest percent gains over the past year, with China growing by 15% and India growing by 27% This translates to 12.6 million new web users in China and 5.4 million in India Source: comScore World Metrix, October 2007


1 Billion Users by March 2010 :5 1 Billion Users by March 2010 Millions of Internet Users Projecting future populations based on current growth rates, there will be 1 billion internet users by March 2010 4 out of every 10 will be in Asia, and only 2 out of 10 will be in North America Projected Regional Distribution of Worldwide Online Population, March 2010 Internet users 15+ accessing the internet from a Home or Work computer


Internet Users Around the Globe :6 Internet Users Around the Globe Source: comScore World Metrix, October 2007 China now has the second-largest presence on the internet, but per-visitor usage is below the worldwide average The heaviest internet users can be found in Canada, the U.K., and Israel WW average = 26.2 Millions of Internet Users* Hours per Internet User per Month *Internet users 15+ accessing the internet from a Home or Work computer


Fastest Growing Site Categories by Region :7 Fastest Growing Site Categories by Region Source: % YOY Growth in Unique Visitors, comScore World Metrix, October 2007 North America Latin America MidEast-Africa Asia-Pacific Western Europe


Top Sites are Truly Global :8 Top Sites are Truly Global Worldwide Top 10 Properties Total WW Unique Visitors (MM) Non-U.S. Audience U.S. Audience 583.4 539.4 495.9 275.0 253.7 244.5 161.0 160.3 135.4 131.4 77% 78% 72% 56% 69% 77% 48% 65% 74% 58% Though they are all based in the United States, the Top 10 Global properties source the majority of their audience from outside the U.S. About three-quarters of Google, Microsoft, and Yahoo’s audience is outside the U.S. Source: comScore World Metrix, October 2007


Global Top Sites’ Reach vs. Engagement :9 Global Top Sites’ Reach vs. Engagement High reach does not always translate to deep engagement. Though Google is the worldwide leader in reach, Microsoft and Yahoo! hold the user’s attention for significantly longer. The Chinese property TENCENT (owner of QQ) emerges as a global high-engagement site, as does Social Networking provider FACEBOOK.COM. Worldwide Reach & Usage: Top Properties Source: comScore World Metrix, October 2007


The Top Three Vie for Users Around the Globe :10 The Top Three Vie for Users Around the Globe Top 3 Worldwide Properties Trend Reach of All Internet Users Worldwide, 15+ Source: comScore World Metrix, October 2007 Among the top properties, Google’s growth has been the most dramatic, its worldwide reach growing from 64.3% in October 2006 to 72.5% in October 2007


Microsoft takes significant share of time online :11 Microsoft takes significant share of time online However, it is Microsoft that captures the largest share of users’ time online, with a worldwide average of 4.8 hours per user per month There are clear regional preferences that are worthy of note: Microsoft is dominant in Latin America and the Middle East/Africa, while Yahoo! gets heavier usage in North America and Asia/Pacific Source: comScore World Metrix, October 2007 Share of Regional Duration on Top 3 Sites


Share of Duration on Top Properties per Region :12 Share of Duration on Top Properties per Region Top 10 Sites per Region: Share of Duration % of Regional Minutes Spent on Top 10 Sites 36% 35% 39% 45% 61% In Latin America, the top 10 properties account for 61% of total duration Asia Pacific is the only region where there is a locally-based Top 10 site which accounts for a significant portion of online activity – TENCENT (parent property of QQ), which accounts for 4.0% of all time spent online in the Asia Pacific region Source: comScore World Metrix, October 2007


Share of Duration on Top 10 Properties in Asia Pacific :13 Share of Duration on Top 10 Properties in Asia Pacific % of Country Duration Spent on Top 10 Sites 46% Source: comScore World Metrix, October 2007 49% 51% 46% 44% 51% 36% 54% 42% 37% Top 10 Sites per Country: Share of Duration China and South Korea lead in time spent on local sites in Asia Pacific In China, 7 of the top 10 sites are Chinese properties


Top 10 countries based on Total Search Volume :14 Top 10 countries based on Total Search Volume More than 68 Billion online searches were conducted Worldwide in Oct 2007. China occupies the 2nd position in total online searches, contributing to 10% of the Worldwide searches 21% 10% 8% 6% 5% 5% 4% 4% 3% 2% Search Volume Top 10 Countries by Search Volume Source: comScore World Metrix, October 2007


Short-term upside in Chinese search market :15 Short-term upside in Chinese search market U.S. and China lead in Search volume & Searchers, but lag in search frequency U.K. and South Korea generate highest searches per searcher Only 87% of people online from China use search – plenty of room for the search market to quickly gain additional penetration Source: comScore World Metrix, October 2007 Total Searches (MM) Searches per Searcher Searcher Conversion Worldwide avg = 88.8


Globally, Google Still Dominates :16 Globally, Google Still Dominates In terms of numbers of searches, Google dominates global activity by a wide margin Global Share of Total Searches Source: comScore World Metrix, October 2007


Traditional Outlets Take New Life Online :17 Traditional Outlets Take New Life Online Accessibility and convenience of getting movies, television, games, music, and radio online drove more people to spend their leisure time on the Internet Entertainment categories reached 613 million people online in October, 76 percent of the Worldwide online population Entertainment Category Growth Millions of Unique Visitors to Entertainment Sites +15% +8% +28% +12% +18% +39% Source: comScore World Metrix, October 2007


Growth in Entertainment Consumption :18 Growth in Entertainment Consumption Growth in Unique Visitors is relatively modest when compared to the growth in usage: on average, people spent 43% more time on Entertainment sites than they did last year In Asia Pacific, average time spent on Entertainment sites almost doubled The more mature North American market saw the smallest growth in time spent Entertainment Engagement Hours per Visitor on Entertainment Sites +43% +17% +41% +27% +97% +24% Source: comScore World Metrix, October 2007


Multimedia Sites Poised for Growth in 2008 :19 Multimedia Sites Poised for Growth in 2008 % Penetration of Entertainment Categories % Penetration North America has the highest penetration rates in almost every category Increased adoption of BB will spur additional growth, particularly in Asia Pacific, where Entertainment categories currently under-index Source: comScore World Metrix, October 2007


YouTube Is the Leader in Entertainment :20 YouTube Is the Leader in Entertainment Youtube has emerged as the worldwide leader in Entertainment, attracting 230 million visitors worldwide in October 2007, who spent an average of 93 minutes per visitor on the site YouTube experienced rapid growth around the world – more than doubling its audience base in every region +48% +43% +43% Millions of Internet Users +151% +132% +121% +149% +231% Source: comScore World Metrix, October 2007


Online Gaming Continues to Grow :21 Online Gaming Continues to Grow Visitation to Gaming sites* attracted 369 million people worldwide in October 2007 North American growth is flat, though European market continues to grow Middle East and Africa have largest percentage growth, on smaller base Gaming Category Growth Millions of Unique Visitors to Gaming Sites* +20% +8% +39% +20% +21% +57% Source: comScore World Metrix, October 2007 * Gaming Sites are defined as online or downloadable games, excluding gambling sites and console games


… and Gamers Spend More Time Playing :22 … and Gamers Spend More Time Playing Though UV growth in North America was in the single digits, engagement grew by 27% over the past year, and North Americans continue to spend the most time on Gaming sites Gaming Engagement Hours per Visitor on Gaming Sites +11% +27% +27% +10% -3% +46% Source: comScore World Metrix, October 2007


In Online Communication, Email Blazed the Trail :23 In Online Communication, Email Blazed the Trail Webmail Users by Region Millions of Unique Visitors to Webmail Sites +14% +6% +16% +6% +28% +24% Source: comScore World Metrix, October 2007 Low growth in North America and Europe reflects online population growth in those regions In regions where the Internet is still developing, such as Asia Pacific and Middle East/Africa, the number of email users is still showing robust growth


Webmail Dominated by Global Brands :24 Webmail Dominated by Global Brands Top Worldwide Webmail Services Millions of Unique Visitors Yahoo! Mail and MSN’s Hotmail are the clear leaders in web-based email Chinese QQ.com’s mail service rounds out the top five, its dominance driven solely by usage in Asia Source: comScore World Metrix, October 2007


Significant Time is Spent on Instant Messengers :25 Significant Time is Spent on Instant Messengers Real-time communication clearly continues to have widespread appeal, as Internet users around the world increase their IM usage substantially People in Latin America spent the most time using Instant Messengers, averaging 10.6 hours per month Instant Messenger Engagement Hours per Visitor per Month on Instant Messengers +33% +10% +35% +42% +42% +32% Source: comScore World Metrix, October 2007


Regional Preferences Among Channels :26 Regional Preferences Among Channels Regional Penetration of Communication Channels Latin America’s use of the Internet as a Communication tool is clear: webmail, IMs, and Social Networking sites all index higher than the worldwide average, and penetration rates there are the highest among all regions Source: comScore World Metrix, October 2007


The Growth of Social Networking :27 The Growth of Social Networking Source: comScore World Metrix, November 2006 – October 2007 Social Networking Growth Social Networking sites are experiencing tremendous growth all over the world In the Asia Pacific region, these sites are growing at a rate that is almost three times the category’s growth in North America Unique Visitors (000)


Social Networking Across Regions :28 Social Networking Across Regions Global Distribution of Visitors to Top Social Networking Sites MySpace’s audience is predominantly North American and European Facebook now draws at least 10% of its traffic from Asia and the Middle East Friendster’s audience is primarily in Asia Pacific, with only 7% in North America Orkut and Hi5.com have sizable share in Latin America Windows Live Spaces has most balanced audience, and drew an audience of 118 million in October, more than both MySpace and Facebook Source: comScore World Metrix, October 2007


Widgets and the Distributed Web :29 Widgets and the Distributed Web The rise of Social Networking has precipitated a surge in widget viewership: two-thirds of the online population, nearly 600 million people, viewed a widget in October 2007 North America had the highest widget penetration rates % of Regional Population Source: comScore Widget Metrix, October 2007. WidgetMetrix currently reports on embedded Shockwave Flash (.swf) objects only. Desktop widgets are not included in this report. % of Worldwide Population Worldwide Widget Reach Widget Penetration by Region Unique Visitors (MM) 597.3 169.6 47.7 154.7 195.6 29.7 561.3 575.7 597.3


Countries with Highest Widget Reach :30 Countries with Highest Widget Reach Countries with Highest Widget Reach % Reach of Country’s Online Population Source: comScore Widget Metrix, October 2007. WidgetMetrix currently reports on embedded Shockwave Flash (.swf) objects only. Desktop widgets are not included in this report. Among individual countries, Canada had the highest widget penetration rates Three countries in Asia, Malaysia, India, and Singapore are among the Top 10 countries with highest widget reach


Summary of Key Findings :31 Summary of Key Findings Lower U.S. contribution to worldwide Compelling offerings needed for global internet landscape China & South Korea giving U.S. sites a run for their money Broadband driving usage outside U.S. Facilitates multimedia & online entertainment The “Youtube” effect Below average penetration & consumption of China internet user base represents enormous opportunity Social Networking continues enormous growth globally At the expense of Community sites, e-cards & personals web sites


Thank you :Thank you Jack Flanagan Executive Vice President jflanagan@comscore.com MEASURING THE DIGITAL WORLD