1. Online Video by the Numbers
Where we've come from, where we're headed, and why you should care.
#DanPiech, Product Manager, comScore July 2011

2. 101 MILLION PEOPLE
IN THE UNITED STATES
ARE GOING TO WATCH
© comScore, Inc. Proprietary. 2 Source: comScore Video Metrix, June 2011

3. 101 MILLION PEOPLE
IN THE UNITED STATES
ARE GOING TO WATCH
1.3 BILLION VIDEOS
© comScore, Inc. Proprietary. 3 Source: comScore Video Metrix, June 2011

4. 101 MILLION PEOPLE
IN THE UNITED STATES
ARE GOING TO WATCH
1.3 BILLION VIDEOS
TODAY
© comScore, Inc. Proprietary. 4 Source: comScore Video Metrix, June 2011

5. 706% GROWTH
SINCE 2006
© comScore, Inc. Proprietary. 5 Source: comScore Video Metrix, June 2011

6. WHERE WE’VE COME FROM
CHARACTERISTICS OF THE VIDEO AUDIENCE
WHAT WE’RE WATCHING
THE VIDEO AD UNIVERSE
WHY VIDEO IS A POWERFULLY UNIQUE AD MEDIUM
! ACTION ITEMS
© comScore, Inc. Proprietary. 6 Icon Source: Dale Morrell, 19eighty7.com

7. WHERE WE’VE COME FROM
CHARACTERISTICS OF THE VIDEO AUDIENCE
WHAT WE’RE WATCHING
THE VIDEO AD UNIVERSE
WHY VIDEO IS A POWERFULLY UNIQUE AD MEDIUM
ACTION ITEMS
© comScore, Inc. Proprietary. 7 Icon Source: Dale Morrell, 19eighty7.com

8. 1985: The Internet is Text-Based
1985
© comScore, Inc. Proprietary. 8

9. 1995: The Internet becomes HTML-based
1995
© comScore, Inc. Proprietary. 9 Source: archive.org

10. HTML increases Internet penetration
Total Internet Users (MM)
220
200
180
160
140
120
100
80
60
40
20
0
JAN 1999 June 2011
© comScore, Inc. Proprietary. 10 Source: comScore Media Metrix June 2011

11. 2000: Dial-up connections stifle online video growth
2000
56 kbps
© comScore, Inc. Proprietary. 11

12. 2000-2006: Explosion of Broadband Connectivity
Broadband Penetration
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
© comScore, Inc. Proprietary. 12 Source: comScore Media Metrix June 2011

13. 2006: Video Reaches the Big Stage
2006
<embed src=“video.swf”>
© comScore, Inc. Proprietary. 13

14. 2006: Online Video Viewership Nearly Doubles
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
May…
May…
May…
May…
May…
Mar '06
Sep '06
Mar '07
Sep '07
Mar '08
Sep '08
Mar '09
Sep '09
Mar '10
Sep '10
Jul '06
Jul '07
Jul '08
Jul '09
Jul '10
Nov '06
Nov '07
Nov '08
Nov '09
Nov '10
Jan '06
Jan '07
Jan '08
Jan '09
Jan '10
JAN 2006 JAN 2007 JAN 2009 JAN 2010 JAN 2011
© comScore, Inc. Proprietary. 14 Source: comScore Video Metrix

15. 2006: Beginning to Monetize
2006
$324 MILLION (ad spend)
63 BILLION VIDEOS
© comScore, Inc. Proprietary. 15 Source: comScore Video Metrix; eMarketer, December 2009; IAB, 2010

16. Premium video content achieves scale en-masse
2009
<video>
© comScore, Inc. Proprietary. 16

17. 2009: The late majority become video viewers
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
May…
May…
May…
May…
May…
Mar '06
Sep '06
Mar '07
Sep '07
Mar '08
Sep '08
Mar '09
Sep '09
Mar '10
Sep '10
Jul '06
Jul '07
Jul '08
Jul '09
Jul '10
Nov '06
Nov '07
Nov '08
Nov '09
Nov '10
Jan '06
Jan '07
Jan '08
Jan '09
Jan '10
JAN 2006 JAN 2007 JAN 2009 JAN 2010 JAN 2011
© comScore, Inc. Proprietary. 17 Source: comScore Video Metrix

18. Crossing the Chasm analogy as it applies to Online Video
© comScore, Inc. Proprietary. 18 Concept Source: Crossing the Chasm by Geoffrey Moore; Image Source: Craig Chelius

19. 2006 was the year of the early majority, 2009 the late majority
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000 EARLY LATE
MAJORITY MAJORITY
20,000
0
May…
May…
May…
May…
May…
Mar '06
Sep '06
Mar '07
Sep '07
Mar '08
Sep '08
Mar '09
Sep '09
Mar '10
Sep '10
Jul '06
Jul '07
Jul '08
Jul '09
Jul '10
Nov '06
Nov '07
Nov '08
Nov '09
Nov '10
Jan '06
Jan '07
Jan '08
Jan '09
Jan '10
JAN 2006 JAN 2007 JAN 2009 JAN 2010 JAN 2011
© comScore, Inc. Proprietary. 19 Source: comScore Video Metrix

20. 2010: Video is the fastest growing online ad format
2010
$1,440 MILLION (ad spend)
441 BILLION VIDEOS
© comScore, Inc. Proprietary. 20 Source: comScore Video Metrix; eMarketer, December 2009; IAB, 2010

21. Online video is by far and away the fastest growing Internet segment
2006 – 2010
$ Ad Spend: +344%
# Videos: +600%
© comScore, Inc. Proprietary. 21

22. Online Video’s Paradigm Shift
2000= An Occasionally Viewed Medium
for Peripheral, Low-Quality
Media Consumption
2011= A Regularly Targeted Medium
for Engaged, High-Quality
Media Consumption
© comScore, Inc. Proprietary. 22

23. Online video is now a significant aspect of our online lives
TODAY
NUMBER OF VIEWERS per month
183MM
% OF INTERNET AUDIENCE 86%
VIDEOS VIEWED per month
39B
VIDEOS PER PERSON per month
211
VIEWING TIME PER PERSON per month
16 hr
© comScore, Inc. Proprietary. 23 Source: comScore Video Metrix, June 2011

24. China and the US lead the way with scale
300
Unique Viewers by Country (MILLIONS)
250
Unique Viewers per month
200
150
100
50
0
Italy
Germany
Turkey
France
China
India
US
UK
Singapore
Brazil
Mexico
Australia
Spain
Japan
Russia
Argentina
Chile
Canada
Hong Kong
Malaysia
New Zealand
© comScore, Inc. Proprietary. 24 Source: comScore Video Metrix, April 2011

25. Canada has the most active video viewing population
200
180 Monthly Videos per Viewer by Country
160
Videos per viewer per month
140
120
100
80
60
40
20
0
Germany
Turkey
France
Italy
India
US
UK
Singapore
Brazil
Mexico
Australia
Spain
Japan
Russia
Chile
Argentina
Canada
Hong Kong
Malaysia
New Zealand
© comScore, Inc. Proprietary. 25 Source: comScore Video Metrix, April 2011

26. WHERE WE’VE COME FROM
CHARACTERISTICS OF THE VIDEO AUDIENCE
WHAT WE’RE WATCHING
THE VIDEO AD UNIVERSE
WHY VIDEO IS A POWERFULLY UNIQUE AD MEDIUM
ACTION ITEMS
© comScore, Inc. Proprietary. 26 Icon Source: Dale Morrell, 19eighty7.com

27. All ages consume online video
Percentage of Internet Audience that View Video
100
89.43 87.17 86.31
90 85.92 85.51 84.61 85.19
80
Percent per month
70
60
50
40
30
20
10
0
12-17 18-24 25-34 35-44 45-54 55-64 65+
© comScore, Inc. Proprietary. 27 Source: comScore Video Metrix, June 2011

28. 18-34 Year-olds are heaviest consumers of online video
350 325
Monthly Videos Per Viewer
300
269
240
Videos per viewer per month
250
211
200 179
150 140
119
100
50
0
12-17 18-24 25-34 35-44 45-54 55-64 65+
© comScore, Inc. Proprietary. 28 Source: comScore Video Metrix, June 2011

29. Men and women are equally likely to have watched online video
Percent of Viewers
49.7% Male
50.3% Female
48% 52% 42% 58%
© comScore, Inc. Proprietary. 29 Source: comScore Video Metrix, June 2011

30. Men watch 1.7x as many videos online as women
Video Views
38%
Male
Female
63%
48% 52% 42% 58%
© comScore, Inc. Proprietary. 30 Source: comScore Video Metrix, June 2011

31. Men account for more than 2/3rds of the time spent viewing online
Time Spent Viewing
31%
Male
Female
69%
48% 52% 42% 58%
© comScore, Inc. Proprietary. 31 Source: comScore Video Metrix, June 2011

32. WHERE WE’VE COME FROM
CHARACTERISTICS OF THE VIDEO AUDIENCE
WHAT WE’RE WATCHING
THE VIDEO AD UNIVERSE
WHY VIDEO IS A POWERFULLY UNIQUE AD MEDIUM
ACTION ITEMS
© comScore, Inc. Proprietary. 32 Icon Source: Dale Morrell, 19eighty7.com

33. Where are viewers watching content videos?
Total Unique
Web Property Viewers (000)
(of content videos)
Google Sites 149,281
VEVO 63,003
Yahoo! Sites 52,665
Microsoft Sites 50,663
Viacom Digital 49,493
Facebook.com 47,687
AOL, Inc. 43,915
Turner Digital 30,063
Hulu 26,701
NBC Universal 19,602
© comScore, Inc. Proprietary. 33 Source: comScore Video Metrix, June 2011

34. Duration moves upwards as long-form TV content moves online
180
Total US Viewing Duration +162%
160
140
Billions of Minutes
120
100
80
60
40
20
0
Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10
© comScore, Inc. Proprietary. 34 Source: comScore Video Metrix

35. Viewing of long-form TV content online doubled from 2009-2010
2009-2010 Yearly growth among long-form TV
programming sites
Videos Viewed Videos per Viewer
104% 75%
increase increase
© comScore, Inc. Proprietary. 35 Source: comScore Video Metrix, Dec 2009 – Dec 2010

36. 8% of long-form TV websites’ viewers view video on any given day
Average percent of a long-form TV site’s
viewers that view videos on any given day
4%
2009
8% 2010
© comScore, Inc. Proprietary. 36 Source: comScore Video Metrix, Dec 2009 – Dec 2010

37. How the new TV audience tunes in: by platform
Online-Only
Cross Platform Viewers Viewers
0 TV
29%0% 6%
Cross Platform
Viewers
24%
Online-Only TV-Only Viewers
TV Viewers 70%
6%
© comScore, Inc. Proprietary. 37 Survey conducted by comScore in August, 2010 Sample Size: 2053

38. Platform viewing by age:
TV + Online Online
18-24 TV Only 57%
35% 8%
25-34 55% 36% 9%
35-49 75% 20% 5%
© comScore, Inc. Proprietary. 38

39. WHERE WE’VE COME FROM
CHARACTERISTICS OF THE VIDEO AUDIENCE
WHAT WE’RE WATCHING
THE VIDEO AD UNIVERSE
WHY VIDEO IS A POWERFULLY UNIQUE AD MEDIUM
ACTION ITEMS
© comScore, Inc. Proprietary. 39 Icon Source: Dale Morrell, 19eighty7.com

40. The average online viewer is reached 35 times a month by video ads
5.2 Billion
video ad impressions per month
Billion
2.2 video ad minutes per month
148 Million
viewers exposed to video ads
35 video ads per person per month
© comScore, Inc. Proprietary. 40 Source: comScore Video Metrix, June 2011

41. The ad market is growing, but has room for more
21 % Growth YOY
video ad impressions per month
% Growth
22 video ad minutes per month
YOY
8 % Growth
viewers exposed to video ads
YOY
13 % Growth
video ads per person per month
YOY
© comScore, Inc. Proprietary. 41 Source: comScore Video Metrix, June 2011

42. Online video advertising reaches half of the total US population
81% video
viewers
70%
total web
48% total US
Population
© comScore, Inc. Proprietary. 42 Source: comScore Video Metrix, June 2011

43. Only 1.3% of time spent viewing video online is spent watching ads
All Online Video Television
1.3%
Ads Content
25%
98.7% 75%
1.3% of time spent viewing video
online is spent viewing ads compared to
20-30% on TV
© comScore, Inc. Proprietary. 43 Source: comScore Video Metrix, June 2011

44. Television is far more monetized than online video
Entertainment Sites Television
3.1%
Ads Content
25%
96.9% 75%
3.1% of time spent viewing video
online on entertainment sites is spent
viewing ads compared to 20-30% on TV
© comScore, Inc. Proprietary. 44 Source: comScore Video Metrix, June 2011

45. There is significantly less clutter in the online world
Long-Form Premium TV-content Television
8.1%
Ads Content
25%
91.9% 75%
8.1% of time spent viewing video online
on long-form premium TV content is spent
viewing ads compared to 20-30% on TV
© comScore, Inc. Proprietary. 45 Source: comScore Video Metrix, June 2011

46. WHERE WE’VE COME FROM
CHARACTERISTICS OF THE VIDEO AUDIENCE
WHAT WE’RE WATCHING
THE VIDEO AD UNIVERSE
WHY VIDEO IS A POWERFULLY UNIQUE AD MEDIUM
ACTION ITEMS
© comScore, Inc. Proprietary. 46 Icon Source: Dale Morrell, 19eighty7.com

47. Online viewers are more receptive to advertising
How would you rate the commercials you see when
watching original TV shows on ONLINE vs. TV?
Online Rating TV Rating
Commercials make me think favorably about the brand being 31.2%
advertised 18.7%
29.8%
Commercials are relevant to me 18.6%
30.1%
Commercials are memorable 21.8%
The commercials interfere with my show viewing 32.1%
32.0%
I enjoy watching the commercials 19.5%
34.3%
Commercials are annoying 25.6%
35.8%
Commercials are interesting 22.0%
© comScore, Inc. Proprietary. 47 Source: comScore TV Everywhere Survey | n = 1825

48. Online viewers can easily and immediately pursue a brand further
What are the reasons you visited an advertiser’s
website while watching a show online?
A video commercial played during the show
A product that you noticed in the program
A video commercial played before the show
A text or image-based commercial
surrounding the video player
Other
0 10 20 30 40 50 60
Percentage of respondents
© comScore, Inc. Proprietary. 48 Source: comScore TV Survey, 2010

49. Nearly 100% of online spenders are video viewers
Non-Video
Viewers
4%
Video
Viewers
96%
© comScore, Inc. Proprietary. 49 comScore Video Metrix and comScore E-Commerce Online Spend Data – June 2010

50. Video viewers spend more online
comScore Online Buying Power Index
170
180 145
136
160
115
140
100
120
100
80
60
40
20
0
All Internet All Video Video Ad Earned Media Premium Long-
Users Viewers Networks & Social Video Format Video
© comScore, Inc. Proprietary. 50 comScore Video Metrix and comScore E-Commerce Online Spend Data – June 2010

51. Cross-platform viewers are 21% more likely to have $100k+ HHI
Cross-platform viewers are 21% more likely
to have $100,000+ household incomes
than television-only viewers
TV Only Viewers Cross-Platform Viewers
11.7 14.2
Household Income
< $100k
> $100k
88.3 85.8
© comScore, Inc. Proprietary. 51 comScore cross-media survey, May, 2011

52. Video is social, interactive, lean forward…
Note the clichéd clip-art graphics
© comScore, Inc. Proprietary. 52

53. 1 in 3 video viewers comment
© comScore, Inc. Proprietary. 53

54. 2 in 5 upload videos
© comScore, Inc. Proprietary. 54

55. 1 in 2 regularly share videos
© comScore, Inc. Proprietary. 55

56. More than 1 in 2 view online video with others
© comScore, Inc. Proprietary. 56

57. Among 18-34’s, more than 2 in 3 view with others
© comScore, Inc. Proprietary. 57

58. WHERE WE’VE COME FROM
CHARACTERISTICS OF THE VIDEO AUDIENCE
WHAT WE’RE WATCHING
THE VIDEO AD UNIVERSE
WHY VIDEO IS A POWERFULLY UNIQUE AD MEDIUM
! ACTION ITEMS
© comScore, Inc. Proprietary. 58 Icon Source: Dale Morrell, 19eighty7.com

59. The market has plenty of room to grow!
Ad Spending (MM) Streams (MM)
$6,000 500000
$5,202 450000
440,692
$5,000
400000
350000
$4,000 $3,844
300000
260,049 $2,858
$3,000 250000
200000
$1,966
$2,000
142,254 150000
$1,440
102,141 $1,029 100000
$1,000 $734
63,515
$324 $410 50000
$135 $225
$40 $55 $85
$0 0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
© comScore, Inc. Proprietary. 59 Source: comScore Video Metrix, December 2010 and eMarketer, December 2009

60. Action Plan:
 Put together a video action plan with discrete goals
– Is your goal to…
Increase website/microsite visits?
Improve brand opinion?
Introduce a brand message to a larger audience or a more niche audience?
Drive direct online or offline purchase behavior?
The technology infrastructure of the Internet affords these opportunities to you
 Determine where and how your target audience is consuming video
 Keep your mind open to using the new opportunities online video affords:
– Using a YouTube Partner as a brand advocate
– Developing branded content that spurs conversation
– Cross pollinating your social media campaigns with video
 Use the many resources and measurement companies available to
determine if your goals have been met
– Most any goal can be easily and discretely measured
© comScore, Inc. Proprietary. 60

61. This is NOT TV!
© comScore, Inc. Proprietary. 61

62. This is Online Video!
© comScore, Inc. Proprietary. 62

63. Thank you!
@DanPiech | dpiech@comscore.com