1. Executive Summary, Total Canada, January 2009 IAB Canada's 2008 Canadian Media Usage Trend Study PREPARED FOR IAB CANADA BY: PHD CANADA Total Canada: EXECUTIVE SUMMARY

3. Purpose A separate presentation is available that examines how the Internet is evolving in French Canada. IAB Canada has commissioned this 5th media usage trend analysis and presentation. It examines the 8-year period since 2000. Canada’s main media surveys were analysed to create a ‘total media’ usage picture. The studies are… PMB, NADbank, BBM RTS and comScore. The Internet’s impact on advertiser media considerations is also highlighted. To examine Internet’s current growth rate, by demo, relative to other media.

8. All studies show broadcast reach has been flat over the past eight years. Internet reach is now higher than magazine and newspaper, in third place after TV and Radio. Base: Adults 18+, Total Canada Reach: All Adults Trend TELEVISION RADIO INTERNET NEWSPAPER MAGAZINE BBM RADIO RTS PMB NADbank DAILY REACH 2000 2001 2002 2003 2004 2005 2006 2007 2000 ‘01 2001 ‘02 2002 ‘03 2003 ‘04 2004 ‘05 2005 ‘06 2006 ‘07 2007 ‘08 2000 2001 2002 2003 2004 2005 2006 2004 2001 2002 2003 2005 2006 2007 2008 2007 100% 75% 25% 0% 100% 75% 50% 25% 0% WEEKLY REACH 82% 93% 97% 87% 96% 71% 48% 31% 82% 60% 51% 70% 44% 31% 86% 60% 72% 64% 82% 65% 53% 33% 62% COMSCORE 64% 72%

9. When we look at percent reach by age group in the Nadbank study, we see that the internet is the #2 reach medium for 18-24 and 25-34 year olds. Reach: by age group today TELEVISION RADIO INTERNET NEWSPAPER MAGAZINE Base: Adults 18+, Total Canada, NADbank ‘07 This chart, from Nadbank’07, plots weekly reach for each medium over 5 age groups. The Internet reaches more adults each week than Magazines and Newspapers… more 18-24 and 25-34 year olds each week than Radio… and is neck-and-neck with TV in 18-24 year old weekly reach. (%Reach) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 18+ 18-24 25-34 35-54 55+

10. Reach: by age group trend Base: Adults 18+, Total Canada, NADbank ’07 and ‘01 We see dramatic growth when we compare the Internet’s current weekly reach to NADbank’01 results (eight years ago) especially for Adults 55+. Ad 18+ +38% 18-24 11% 25-34 +32% 35-54 +38% 55+ +88% Weekly Reach Growth NADbank ’01 and ‘07 Weekly Reach 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 18-24 25-34 18+ 35-54 55+ NADbank ’01 NADbank ‘07

11. Population composition based on PMB ’08, Total Canada. Internet composition based upon weekly reach in NADbank ‘07 The Internet’s strong youth profile suit. Audience composition NADbank ‘07 This chart compares the proportion of Internet audiences that each age group represents to its respective percent of the all-adult population. It shows that all groups under 55 years of age over index for Internet use compared to the actual population. The Internet is most highly developed among adults under 55 years. 18-24 25-34 35-54 55+ Adults 18+ Internet Weekly reach composition by age Internet Weekly Reach Composition 16% 22% 43% 19% 100% Internet’s Age Development (Ad18+ = 100 index) 133 116 108 66 100 Population 12% 19% 40% 29% 100%

12. All studies show that time spent with the Internet is increasing. The Internet is Canada’s #3 weekly time spent medium according to both N AD Bank and PMB surveys. TELEVISION RADIO INTERNET NEWSPAPER MAGAZINE Base: Adults 18+, Total Canada Time spent: All Adults Trend BBM RADIO RTS PMB NADbank COMSCORE 0 2000 2001 2002 2003 2004 2005 2006 2007 2000 ‘01 2001 ‘02 2002 ‘03 2003 ‘04 2004 ‘05 2005 ‘06 2006 ‘07 2007 ‘08 2004 2001 2002 2003 2005 2006 2007 2008 2000 2001 2002 2003 2004 2005 2006 2007 1,000 125 100 75 50 25 800 600 400 200 DAILY TIME (min) WEEKLY TIME (min) 115 818 1,358 1,894 109 47 14 99 678 223 543 107 926 583 31 250 451 64 107 543

13. Internet annual growth rates of time-spent are in the mid single-digit range. Base: Adults 18+, Total Canada Time spent: All Adults Trend NADbank 0 2000 2001 2002 2003 2004 2005 2006 2007 1,000 800 600 400 200 99 818 678 223 ‘ 01 ‘ 02 ‘ 03 ‘ 04 ‘ 05 ‘ 06 ‘ 07 INTERNET Weekly Time Spent (minutes) 401 353 309 +14% +14% 444 +11% 480 +8% 515 +7% 543 +5%

14. Time spent: by age The Internet has become #1 in time-spent for Adults 18-24 and 25-34, having overtaken TV for both these age groups. Base: Adults 18+, Total Canada 18-24 25-34 18+ 35-54 55+ Weekly Minutes 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 TELEVISION RADIO INTERNET NEWSPAPER MAGAZINE NADbank ’07

15. The Internet is a “mirror-image” of TV according to NADbank. Those who spend the most time Online, spend the least with TV. Base: Adults 18+, Total Canada Time spent: by age NADbank ’07 18-24 25-34 18+ 35-54 55+ Weekly Minutes 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 TV older Internet younger

16. Share of Weekly Minutes Per Capita Total Canada Adults 18+ 2007 Min 818 678 543 223 99 2,361 The tremendous increase in time spent with the Internet, +75% since NADbank 2001, has resulted in a 5% increase in the total time people spend with all media. The Internet’s share of time spent with all media has grown from 14% to 23%. Base: Adults 18+, Total Canada Share of time-spent trend TELEVISION RADIO INTERNET NEWSPAPER MAGAZINE NADbank Weekly Time Spent Minutes Per Capita (Minutes indexed to 2001) TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL 2001 Min 818 763 309 240 120 2,250 Share 36% 33% 14% 11% 5% 100% Share 35% 29% 23% 9% 4% 100% 1,000 2000 2001 2002 2003 2004 2005 2006 827 698 231 184 800 600 400 200 0 2007 818 678 223 99 543 Index of Chge (min) 100 89 175 93 83 105 100 index = no change 543 (175)

17. Share of Weekly Minutes Per Capita Total Canada Men 18+ Women 18+ MEN 18+ WOMEN 18+ Women 18+ Share Base: Adults 18+, Total Canada TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL Share of time: men-women NADbank Women’s rate of growth in time spent with the Internet has out paced men since NADbank 2001… +89% growth for women versus 61% for men. Men 18+ Share 2001 37% 36% 11% 11% 5% 100% 2007 33% 28% 25% 10% 4% 100% 2001 35% 32% 17% 11% 5% 100% 2007 36% 30% 21% 9% 5% 100% INTERNET Weekly Time Spent Minutes Per Capita (Minutes indexed to 2001) The gap between men and women time spent with Internet usage has narrowed, with the Internet now accounting for about one-fifth of women’s time spent with all media (21%). 2001 2002 2003 2004 2005 2006 1,000 800 600 400 200 0 1,200 2007 624 442 624 (161) 442 (189)

18. 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 +76% since NADbank 2001, this gap has not narrowed. TOTAL ENGLISH FRENCH Share of Weekly Minutes Per Capita Total Canada Adults 18+ French 18+ Share TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL English 18+ Share 2001 38% 35% 11% 11% 5% 100% 2007 34% 29% 23% 10% 4% 100% 2001 36% 34% 14% 11% 5% 100% 2007 36% 32% 18% 10% 6% 100% NADbank INTERNET Weekly Time Spent Minutes Per Capita (Minutes indexed to 2001) Share of time: language Base: Adults 18+, Total Canada As a result, the Internet accounts for only 18% of time spent with all media by French speakers, compared to 23% for English speakers. 1,000 800 600 400 200 0 1,200 2007 2001 2002 2003 2004 2005 2006 543 574 413 543 (176) 413 (181) 574 (175)

19. Base: Adults 18+, Total Canada Share of Weekly Minutes Per Capita Total 18+ TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL 25-34 Share 2007 30% 27% 33% 6% 4% 100% 2001 33% 35% 19% 8% 5% 100% 35-54 Share TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL 55+ Share 2001 35% 36% 14% 10% 5% 100% 2007 42% 28% 11% 14% 5% 100% 2001 43% 31% 5% 15% 6% 100% 2007 33% 33% 22% 8% 4% 100% Adults 18-24 Adults 25-34 Adults 35-54 Adults 55+ 18-24 Share 2007 29% 23% 40% 5% 3% 100% 2001 33% 31% 24% 7% 5% 100% NADbank INTERNET Weekly Time Spent Minutes Per Capita (Minutes indexed to 2001) Share of time: age The older age groups have been the fastest growing users of the Internet since NADbank 2001… +66% for adults 35-54, +135% for 55+. Hence the gap in time spent between younger and older age groups is narrowing. 2001 2002 2003 2004 2005 2006 2007 1,000 800 600 400 200 0 NADbank 1,020 782 492 265 1,200 1,020 (178) 492 (166) 782 (177) 265 (235)

20. Future forecasts The Internet… the number one time-spent medium for the next generation of 35-54 year old consumers. NOW = NADbank 2007 … Base: Adults 18+, Total Canada TELEVISION RADIO INTERNET NEWSPAPER MAGAZINE Consumers formulate their media usage habits in their late-teens and early-20’s. As consumers age, these learned media usage habits persist. The high levels of Internet usage exhibited by 18-24 and 25-34 year olds will stay with them as they age into the 35-54 age break. The Internet will become the number one medium for most age groups by 2016. NOW 18-24 25-34 35-54 55+ 18+ Weekly Minutes 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 8 years from NOW 18-24 25-34 35-54 55+ 18+

21. Internet Imperative We can examine the relationship between Internet use and TV exposure, when we look at this PMB 2008 analysis of cross media use. Base: Adults 18+, English Canada INTERNET Minutes Per Week 450+ 151-450 1-151 0 HEAVIER Q1 33+ Q2 22-33 Q3 15-22 Q4 9-15 Q5 <9 TELEVISION Hours Per Week HEAVIER 25% Ad18+ Population INTERNET IMPERATIVE 28% TELEVISION IMPERATIVE 20% DUAL 26% LIGHT/ LIGHT

22. Product usage. We can examine the relationship between these four Internet/TV user groups and the consumption of products/services via PMB’08. Base: Adults 18+, English Canada INTERNET IMPERATIVE TELEVISION IMPERATIVE DUAL LIGHT/ LIGHT 123 Own LCD or Plasma TV set 82 120 74 136 Own $5,000+ Personal Computing System 72 121 78 137 Recently purchased new $50,000+ car 68 107 107 Indexed To Total Canada Ad18+ Population Composition 115 Spent $5,000+ traveling in Canada 69 124 102 123 Spent $1,500+ per month on credit card 72 110 102 140 Carry $500,000+ in Life Insurance 65 80 111 136 Make $10,000+ RRSP contribution annually 76 92 96 127 Hold $500,000+ in Securities/Savings 93 115 80 143 Made $50,000+ in home improvements in past year 83 101 83 140 Home valued at $500,000+ 75 95 98 142 Spent $750+ in past year on Sports Clothing 71 108 100

24. Executive Summary, Total Canada, October 2008 IAB Canada's 2008 Canadian Media Usage Trend Study

25. Executive Summary, Total Canada, October 2007 APPENDIX Summary of Internet Usage Questions asked by three top Canadian Syndicated Media Surveys

26. Daily market list (not full country). NADbank ’07 study, 2 waves, Jan-June ‘07 and Sept-Dec ‘07. “ Now thinking about the Internet, have you personally accessed the Internet in the past three months? And how much time did you spend on the Internet in past week.” NADbank

27. PMB’08, 2 year study reflects fieldwork Oct’05-Sept’07. “ People log on to the Internet for different reasons. Sometimes it is to send or receive e-mail, and sometimes to access the world wide web. Have you personally accessed the world wide web in the past month? “ PMB NADBANK

28. BBM RTS Spring’08 study collected data Feb’07-Feb’08 from Spring’07 and Fall’07 radio diary respondents,. BBM RTS Internet Question “ Did you connect to and use the Internet in the Past 4 weeks (e.g. email, world wide web, newsgroups)… at home, at work, at school/college/university, at some other location?” BBM RADIO RTS PMB NADBANK

29. All data is fall averaged for year in question. Measures Internet only. Added to prior 5 years of trending data. Panel based. Includes internet based e-mailing activity only. BBM RADIO RTS PMB NADBANK COMSCORE