Cross Platform future in focus at us 2016

70
For info about the proprietary technology used in comScore products, refer to http://comscore.com/About_comScore/Patents

Transcript of Cross Platform future in focus at us 2016

Page 1: Cross Platform future in focus at us 2016

For info about the proprietary technology used in comScore products, refer to http://comscore.com/About_comScore/Patents

Page 2: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 2

About this report

The 2016 U.S. Cross-Platform Future in Focus leverages several data sources unique to comScore:

The report is based primarily on behavioral measurement from comScore Media Metrix® Multi-Platform, which provides deduplicated reporting of digital audiences

across desktop computers, smartphones and tablets, and comScore Mobile Metrix®, which provides deduplicated reporting of mobile web and app audiences across

both smartphones and tablets. The report also includes survey-based mobile data from comScore MobiLens®, as well as TV/Cross-Platform behavioral data from the

comScore Xmedia™, comScore OnDemand Everywhere® and comScore TV Everywhere™ product lines.

Important Definitions:

o Electronic Sell-Through (EST): The consumer pays a fee to purchase or perpetually licenses a digital reproduction (i.e., movie or TV show). This licensed reproduction could be in the form of a file

downloaded to the consumer’s internet-connected device or local hard drive, or via access to the content in a virtual storage locker or cloud-based service for streaming on demand to the end-user.

The major digital retailers here are Amazon, Google Play, iTunes, PlayStation, Xbox, Vudu and others.

o Free on Demand (FOD): Operator-based free on demand content, usually offered via broadcast and cable networks for free or with advertising.

o Internet Video on Demand (iVOD): The temporary license (i.e., a rental) of a program for a limited and pre-determined viewing period (such as 24 or 48 hours) for on-demand viewing by an end-

user. The program may be downloaded and stored locally on the end-user’s device, or accessed online via streaming from digital retailers like Amazon Instant Video, Google Play, iTunes, PlayStation

Store, Xbox Video and Vudu.

o Over-the-Top Subscription Video on Demand (OTT SVOD): Refers to the delivery of audiovisual content streamed over the internet without the involvement of an internet service provider (ISP) in

the control or distribution of the content. The ISP is neither responsible for, nor is able to control, the viewing abilities, copyrights, and/or other redistribution of the content, which arrives from a third

party and is delivered to an end-user’s device from online subscription services like Amazon Prime, Hulu Plus and Netflix.

o Mobile: The combination of smartphone and tablet. When data is referring specifically smartphones or tablets, it will be labeled accordingly.

o Subscription Video on Demand (SVOD): For a fixed, recurring fee, subscribers may have unlimited streaming to a licensed catalog of content for the duration of their active subscription

term. Subscription terms may be as short as one month (e.g., Hulu Plus, Netflix) or as long as one year (e.g., Amazon Prime). In addition to SVOD via over-the top (OTT), SVOD can also be delivered

via Cable Video on Demand (cVOD), which is on demand content streamed or downloaded via a cable, telecommunications or satellite provider (e.g., HBO, Showtime, Starz).

o Transactional on Demand (TOD): A temporary license (rental) of a movie or special event from an operator for a fee for a limited and pre-determined viewing period (such as 24 or 48 hours) for on-

demand viewing.

o Unique visitor: A person who visits an app or digital media property at least once over the course of a month.

For more information about subscribing to comScore services, please contact us at www.comscore.com/learnmore.

Page 3: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 3

Table of Contents

Multi-Platform 4

Digital Media 8

Mobile 21

Social Media 28

TV & Cross Platform 37

Advertising 48

E-Commerce 55

Box Office 64

Ten Trends of 2016 67

Page 4: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 4

Multi-Platform

Page 5: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 5

Digital media usage time is exploding right now, and it’s being

driven entirely by mobile – particularly on smartphone.

Total digital media

usage has nearly

tripled since 2010,

and since 2013 it’s

up 35%, with

smartphone having

grown 78% and

contributing to 92%

of the total increase

in time spent. Tablet

is also seeing very

strong growth over

that 2-year period at

30%, while desktop

is down slightly.

Growth in Digital Media Time Spent in Minutes (MM)Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Dec 2015 vs. Dec 2014 vs. Dec 2013

505,591 551,184 500,173

441,693

646,324 787,541

123,661

197,446160,767

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Dec-2013 Dec-2014 Dec-2015

Desktop Smartphone Tablet

+30% vs. 2013

+78%vs. 2013

-1%vs. 2013

Page 6: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 6

Mobile now represents almost 2 out of 3 digital media minutes, and

smartphone apps alone are approaching half of all digital time spent.

Although desktop is relatively flat in total engagement, it is losing share to mobile – which now accounts for 65% of digital media time spent. Mobile apps now drive the majority of digital time spent at 56%, and smartphone apps alone look to account for a majority of digital media consumption in 2016.

Share of Digital Media Time Spent by PlatformSource: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Total Audience

30%

35%

40%

45%

50%

55%

60%

65%

70%

Dec-2013 Jun-2014 Dec-2014 Jun-2015 Dec-2015

Share of Digital Time Spent on MOBILE APP

Share of Digital Time Spent on MOBILE

35%

56%

65%

Share of Digital Time Spent on DESKTOP

+12pts

+12pts

-12pts

44%

53%

47%

Share of Digital Time Spent on SMARTPHONE APP+12pts

35%

47%

Page 7: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 7

Multi-platform internet usage is the norm across age segments

today, while mobile-only usage is also becoming more prominent.

Virtually all 18-34

year-old Millennials

(97%) are mobile

users, while 20%

don’t use desktop at

all. The Age 35-54

demographic has

the highest

percentage of multi-

platform users

(82%), while the

oldest segment still

has a sizeable, but

shrinking, portion of

its audience that

only uses desktop.

Share of Demographic Audiences by Platform UsageSource: comScore Media Metrix Multi-Platform, U.S., Age 18+, Dec 2015 / Dec 2014 / Dec 2013

22%12% 11% 15%

5% 3%

18%10% 8%

40%

26% 26%

68%

76% 76% 67%74% 77%

77%84%

82%

57%

68% 67%

9% 12% 13%18% 21% 20%

5% 6% 10%3% 6% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mobile Only

Multi-Platform

Desktop Only

Age 55+Age 35-54Age 18-34Age 18+

Page 8: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 8

Digital Media

Page 9: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 9

Google Chrome is widening its market share lead for desktop

browser activity, accounting for 45% of all page visits.

Google Chrome

gained 4

percentage points of

the desktop browser

market in the 2nd

half of last year, as

it looks to host the

majority of desktop

activity in 2016.

Safari also saw

slight gains, while

Microsoft and

Firefox browsers

experienced

declines.

Share of Desktop Browser ActivitySource: comScore Custom Analytics, U.S., Total Audience

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Jun-2015 Dec-2015

Sh

are

of D

eskto

p P

ag

e V

isits

Internet Explorer/Microsoft Edge

Google Chrome

2%

28%

45%

Other

+4pts

-3pts

+0pts

31%

41%

2%

Firefox-3pts17%

14%

10% 11%

Safari+1pts

Page 10: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 10

Google remains the

strong leader in the

U.S. search market

with nearly 2/3rds of

all search queries

conducted.

However, 2nd and

3rd players Bing and

Yahoo both

increased their

market shares

about one

percentage point

from the previous

year.

Share of Desktop Searches for Explicit Core Search MarketSource: comScore qSearch, U.S., Q4 2015

Google also retains the lead in the U.S. desktop search market. Bing

and Yahoo both increased their respective market shares in 2015.

64%

21%

12%

2%1%

Google

Bing

Yahoo

Ask

AOL

Page 11: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 11

Digital is delivering audiences at scale, as the number of properties

reaching at least 20 million monthly visitors is up 20% vs. year ago.

There are a growing number of digital media properties reaching large audiences in the tens of millions, with 206 above 20 million. In addition to 34 additional properties reaching 20 MM UVs in 2015, there were seven new properties achieving the 100 million milestone vs. the same period in 2014.

Number of Digital Media Properties Reaching Unique Visitor ThresholdsSource: comScore Media Metrix Multi-Platform, U.S., Dec 2015 / Dec 2014

119142

39

4314

21

0

50

100

150

200

250

Dec-2014 Dec-2015

Nu

mb

er

of D

igita

l M

edia

Pro

pe

rtie

s

20-50 MM 50-100 MM 100+ MM

+50%

+10%

+19%

Page 12: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 12

Digital media audiences continue to climb, being driven by mobile

audiences, which have now far surpassed those of desktop.

Over the past two

years, digital media

audiences of the

Top 1000 properties

have surged to an

average 16.8 million

visitors per month.

This has been

driven by a more

than doubling of

mobile audiences

while desktop

audiences have

seen a gradual

slide.

Growth in Top 1000 Digital Media Property AudiencesSource: comScore Media Metrix Multi-Platform, U.S., Dec 2013 – Dec 2015

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015

Ave

rag

e #

of U

niq

ue V

isito

rs b

y P

latf

orm

(M

M)

TOTAL DIGITAL

MOBILE

DESKTOP

8.1

12.3

5.6

7.0

16.8

11.3

Page 13: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 13

Within the Top 100 digital media properties, incremental audience

from mobile is now more than double that of desktop alone.

Mobile audiences continue to represent an increasingly important contribution to total digital audience. Two years ago, mobile helped boost the audiences of the Top 100 digital media properties by 59% and more recently that number has exploded to 120%.

Median Audience Sizes for the Top 100 Digital Media PropertiesSource: comScore Media Metrix Multi-Platform, U.S., Dec 2015 / Dec 2014 / Dec 2013

45,180

50,462

56,780

28,382 29,21425,762

0

10,000

20,000

30,000

40,000

50,000

60,000

Dec-2013 Dec-2014 Dec-2015

Un

iqu

e V

isito

rs (

000

)

Total Digital Desktop

+120% vs. desktop alone

+59% vs. desktop alone

+73% vs. desktop alone

Page 14: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 14

Google Sites remains the #1 web property, Facebook jumped one

spot to #2, and Yahoo is the only other property with 200MM visitors.

The average Top 10 digital media property has 37% of its audience visiting only on mobile and 31% visiting on both mobile and desktop. 6 of the Top 10 have larger mobile-only audiences than desktop-only audiences. Clearly, mobile is no longer a secondary digital touchpoint for many publishers.

Top Digital Properties: Unique Visitors (MM) by PlatformSource: comScore Media Metrix Multi-Platform, U.S., Dec 2015

0 50 100 150 200 250 300

Google Sites

Facebook

Yahoo Sites

Amazon Sites

Microsoft Sites

AOL, Inc.

Comcast NBCUniversal

CBS Interactive

Mode Media

Apple Inc.

Desktop Only Multi-Platform Mobile Only

219 MM

205 MM

199 MM

192 MM

181 MM

155 MM

151 MM

144 MM

142 MM

248 MM

Page 15: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 15

Google Sites ranked as the #1 digital media property every month of

2015 as it looks to be the first to surpass 250 million visitors.

Google retained a

strong lead on its #1

position among all

digital media

properties, reaching

an average of 95%

of U.S. internet

users each month.

Its lofty position

atop the ranking is

thanks to several

high-ranking digital

media assets on

both the desktop

web and mobile.

Google Sites Unique Audience (MM) by MonthSource: comScore Media Metrix Multi-Platform, U.S., Dec 2014 – Dec 2015

2 of Top 5

Desktop Domains#1 Google.com

#2 Facebook.com

#3 Yahoo.com

#4 YouTube.com

#5 Amazon.com

5 of Top 10

Mobile Apps#1 Facebook

#2 Facebook Messenger

#3 YouTube

#4 Google Maps

#5 Google Search

#6 Google Play

#7 Pandora Radio

#8 Gmail

#9 Amazon Mobile

#10 Instagram

238

241 241242

243242

242

243

245 245246

247

248

232

234

236

238

240

242

244

246

248

250

Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015

Un

iqu

e V

isito

rs (

MM

)

Page 16: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 16

This past year saw leading social platforms, traditional publishers

and a multinational retailer surpass 100 MM visitors for the first time.

Linkedin reached the 100 MM visitor milestone in the first month of 2015, followed in March by another social network Twitter and Time Inc.’s group of publisher sites. Time Inc., which was founded before the digital age, was joined by fellow print publisher Hearst and traditional brick-and-mortar retailer Walmart.

Digital Media Properties Reaching 100 Million Unique Visitor Milestone in 2015Source: comScore Media Metrix Multi-Platform, U.S., Dec 2014 – Dec 2015

60,000

70,000

80,000

90,000

100,000

110,000

120,000

130,000

Un

iqu

e V

isito

rs (

000

)

Twitter Time Inc. Network (U.S) Wal-Mart Linkedin Hearst

Page 17: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 17

A number of traditional print publishers leveraged mobile to capture

new, often younger audiences on digital.

Several major

traditional print

publishers

experienced greater

than 20% visitor

gains in 2015, led

by the Washington

Post with 78% year-

over-year audience

growth and Dow

Jones & Company

(home of The Wall

Street Journal) with

58% growth.

* Based on selection of ‘traditional print publishers’ with 20 percent year-over-year unique visitor growth.

0

20

40

60

80

100

120

Un

iqu

e V

isito

rs (

MM

)

Dec-2014 Dec-2015

Y/Y Digital Audience Growth of Selected Traditional Print Publishers*Source: comScore Media Metrix Multi-Platform, U.S., Dec 2015 / Dec 2014

+78%

+58%

+46%

+40%

+37%+29%

+29%

+27%

+26%

+22%

+21%

Page 18: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 18

At the content category level, most now get a majority of their traffic

from mobile and are continuing to shift toward that platform.

Nearly every

category has

become more

mobile over the past

year, but Personals

and Retail are

among those seeing

the most dramatic

shifts in time spent.

The number of

categories getting

the majority of its

engagement from

desktop is rapidly

dwindling.

Share of Content Category Time Spent by PlatformSource: comScore Media Metrix Multi-Platform, U.S., Dec 2015

69%

58%

51%

46%

44%

39%

38%

36%

23%

21%

12%

8%

6%

31%

42%

49%

54%

56%

61%

62%

64%

77%

79%

88%

92%

94%

Portals

Business/Finance

Entertainment - News

Health - Information

News/Information

Sports

Retail

Lifestyles

Personals

Social Networking

Online Gaming

Photos

Maps

Desktop Mobile

+ 4 pts

Mobile Point

Change vs. 2014

+ 10 pts

+ 12 pts

+ 2 pts

+ 6 pts

+ 11 pts

+ 13 pts

+ 5 pts

+ 15 pts

+ 5 pts

+ 1 pts

- 1 pts

+ 4 pts

Page 19: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 19

Some of the biggest recent shifts in categories’ mobile penetration

has come from transactional and informational categories.

While social media,

communications and

entertainment

categories have always

done well on mobile,

many consumers are

now branching out to

perform other

functions. Consumers

increasingly use mobile

to access information

on health, careers, and

travel, and they

increasingly conduct

banking transactions

and buy airline and

event tickets.

Mobile Category Penetration for Key Content CategoriesSource: comScore Mobile Metrix, U.S., Age 18+, Dec 2013 – Dec 2015

0%

10%

20%

30%

40%

50%

60%

70%

% A

udie

nce

Rea

ch

Health Info

Online Banking

Travel Info

Online Travel AgentsEvent Tickets

Career Resources

36%

62%

49%

32%

25%

22%

23%

52%

34%

20%

18%

14%

Page 20: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 20

A number of high-profile brands saw app audiences jump several

multiples in the past year.

Two leading retail home improvement brands ranked among the fastest rising mobile apps in 2015, as Lowe’s and The Home Depot ramped up their mobile presences. Airbnb also saw major growth as the company continues to shake up the lodging and travel industry.

Y/Y Unique Visitor Growth of Selected Fast Rising Mobile Apps*Source: comScore Mobile Metrix, U.S., Age 18+, Dec 2015 / Dec 2014

931%

920%

823%

717%

717%

607%

551%

541%

514%

421%

GIF Keyboard

Lowe's

SiriusXM

Nextdoor

Airbnb

OfferUp

OneDrive

The Home Depot

The Washington Post

Imgur

* Based on selection of apps with at least 1 million unique visitors and growing 400 percent year-over-year.

Page 21: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 21

Mobile

Page 22: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 22

U.S. smartphone penetration is now approaching 80% and finally

showing signs of slowing growth as the market nears saturation.

Since the end of

2005, smartphone

penetration of the

mobile phone

market has grown

from next to nothing

to 79%. In the past

3 years, a quarter of

the mobile phone

market made the

switch from feature

phone to

smartphone, a trend

that continues but is

slowing.

Smartphone Penetration of Mobile Phone MarketSource: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2005 - 3 Mo. Avg. Ending Dec 2015

2% 3%6%

11%17%

27%

42%

54%

65%

75%79%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015

Page 23: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 23

Smartphone penetration increased among every age demographic,

with Millennials now well over the 90% mark.

Millennials saw the

most significant

gains in smartphone

penetration in 2015,

with both 18-24 and

25-34 year-olds

solidly above 90%.

Despite the Age 55+

segment having the

most room for

growth, its 1-point

annual gain may

indicate a slow

climb to attaining

those higher levels

of penetration.

Smartphone Penetration by DemoSource: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2015 / Dec 2014

76%

90% 89%

81%

57%

79%

94% 93%

84%

58%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total: Age 18+ Age 18-24 Age 25-34 Age 35-54 Age 55+

Dec-2014 Dec-2015

Page 24: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 24

The U.S. market share for smartphone operating systems has

stabilized in recent years with Android #1 and iOS a strong #2.

Smartphone OS market share has shifted immensely from its early years, but has remained relatively stable since 2013. It now appears that the most popular device for accessing the internet will be dominated by two major players’ software platforms for the foreseeable future.

Smartphone Platform Market Share: 10-Year TrendSource: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2005 - 3 Mo. Avg. Ending Dec 2015

1% 5%

29%

47%53% 51% 53% 53%

9%17%

25%

25%

30%

36% 42% 42% 43%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

HP/Palm

Symbian

BlackBerry

Microsoft

iOS

Android

Page 25: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 25

But Apple remains the largest smartphone OEM at 43%, with the

remaining share split about evenly between Samsung and all others.

In the past two

years, the U.S.

market share for

smartphone original

equipment

manufacturers

(OEMs) has seen

minor growth from

Apple and Samsung

at the expense of

most others. Like

the smartphone

software market, the

OEM market is

maturing in the U.S.

Smartphone OEM Market Share: 2-Year Trend Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2013 - 3 Mo. Avg. Ending Dec 2015

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

29%

43%

28%

32%

42%

26%

Apple

All Others

Samsung

Page 26: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 26

iPhone owners have been rapidly upgrading to the latest “6” models,

which now constitute a majority of iPhone’s U.S. installed base.

Apple’s iPhone 3, 4, and 5 models collectively lost 23 million users in 2015, but more than made that up by gaining nearly 31 million new iPhone 6 and 6 Plus users. The iPhone 6/6S models look to surpass the iPhone 5/5S/5C models in early 2016 for total number of owners in the U.S.

Trend of Apple iPhone Users (MM) by Device FamilySource: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2014 - 3 Mo. Avg. Ending Dec 2015

24.2 21.7 20.3 19.2 16.1 15.2 15.4 14.6 13.3 12.1 11.3 10.5 9.7

39.339.0 38.7 39.0

39.037.0 38.7 38.5 38.3

37.034.9

32.6 30.8

7.9 10.3 12.7 14.9 18.3 20.820.6 22.1 23.1

24.026.1

28.5 30.5

3.7 4.7 5.66.4 6.8 7.0

7.1 7.5 8.0 9.1 9.8 10.7 11.6

0

10

20

30

40

50

60

70

80

90

Dec-2014 Jan-2015 Feb-2015 Mar-2015 Apr-2015* May-2015* Jun-2015 Jul-2015 Aug-2015 Sep-2015 Oct-2015 Nov-2015 Dec-2015

Ap

ple

iP

hon

e U

se

rs (

MM

)

Apple iPhone 3G/4/4S Apple iPhone 5/5S/5C Apple iPhone 6/6S Apple iPhone 6/6S Plus

* The months of April and May 2015 were calculated using their single month of data vs. the 3-month

average, due to an improved sample weighting methodology introduced in April.

Page 27: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 27

Large screen smartphones have been quickly gaining in popularity

and overtook small screen smartphone ownership in April 2015.

More consumers

are adopting

smartphones with a

4.5” display or

greater, while tablet

ownership has

plateaued in the

past year. This

correlation could be

due to tablets and

larger screen

smartphones

sharing many of the

same use cases.

Device Ownership by Smartphone Screen Size and TabletSource: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Sep 2014 - 3 Mo. Avg. Ending Dec 2015

0

20

40

60

80

100

120

140

De

vic

e O

wn

ers

(M

M)

Tablet

Smartphone <4.5”

Smartphone 4.5”+

* The months of April and May 2015 were calculated using their single month of data vs. the 3-month

average, due to an improved sample weighting methodology introduced in April.

Page 28: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 28

Social Media

Page 29: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 29

Social Networking

leads all categories

in engagement,

accounting for 1 out

of 5 minutes spent

online. The strength

of this category,

along with Email

and IM, highlights

that one of digital’s

primary functions is

for communication –

now more so than

ever with the rise of

mobile.

Share of Total Digital Time Spent by Content CategorySource: comScore Media Metrix Multi-Platform, U.S., Total Audience, December 2015

Social networking accounts for one in every five minutes spent on

the internet.

Social Networking19%

Multimedia12%

Radio8%

Portals6%Online

Gaming5%

Retail5%

Instant Messengers4%

E-mail4%

News/Information4%

Other34%

Page 30: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 30

The smartphone app has taken over as by far the most popular

access point for social media usage, with desktop on the decline.

The vast majority of

social media

consumption occurs

on mobile apps,

driven largely by

smartphones. The

smartphone app is

the dominant social

platform in the U.S.,

now accounting for

61% of all social

media time spent,

up 8 percentage

points from last

year.

Share of Time Spent on Social Media Across Different PlatformsSource: comScore Media Metrix Multi-Platform & Mobile Metrix, US, Dec 2015 / Dec 2014 / Dec 2013

33%

26%

21%

53%

53%

61%

3%

4%

6%

10%

13%

9%

3%

3%

Dec-2013

Dec-2014

Dec-2015

Desktop Smartphone App Smartphone Web Tablet App Tablet Web

Page 31: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 31

Millennials use several social networks regularly, but Facebook

continues to lead in both audience size and engagement.

After Facebook,

relative newcomer

Snapchat has the

highest engagement

per visitor among

Millennials, just

ahead of Instagram.

The latter network

has the largest

audience

penetration after

Facebook, followed

by Twitter and

LinkedIn.

Age 18-34 Digital Audience Penetration vs. Engagement of Leading Social NetworksSource: comScore Media Metrix Multi-Platform, U.S., Dec 2015

0

200

400

600

800

1,000

1,200

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ave

rag

e M

onth

ly M

inute

s p

er

Vis

ito

r

% Reach Among Age 18-34

Page 32: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 32

The 35+ population are also heavy Facebook users, but don’t spread

their attention quite as heavily across other networks as Millennials.

Age 35+ users have

lower audience

penetration and

lower engagement

than Millennials for

just about every

social network – the

one exception being

slightly higher

engagement on the

business-oriented

LinkedIn.

Age 35+ Digital Audience Penetration vs. Engagement of Leading Social NetworksSource: comScore Media Metrix Multi-Platform, U.S., Dec 2015

0

200

400

600

800

1,000

1,200

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ave

rag

e M

onth

ly M

inute

s p

er

Vis

ito

r

% Reach Among Age 35+

Page 33: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 33

13.8%

9.9%

15.8%

16.2%

13.9%

1.9%

3.0%

3.1%

2.5%

1.3%

2.0%

2.1%

1.6%

0.3%

0.4%

Total Digital

Desktop

Mobile

Smartphone

Tablet

Facebook Messenger Instagram WhatsApp

17.2%

10.0%

21.2%

21.8%

18.0%

Facebook usage overall accounts for 1 in every 6 minutes spent

online, and more than 1 in 5 minutes spent on mobile.

Facebook is the #1

digital media

property by time

spent. While it

maintains an

impressive double-

digit market share of

desktop time spent,

it really shines on

mobile platforms,

where its four core

apps each

contribute a

meaningful share of

engagement.

Facebook Q4 2015 Share of Total Digital Media Time Spent by PlatformSource: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Q4 2015

Page 34: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 34

While Facebook’s users mirror the internet as a whole, Instagram,

Tumblr, Vine and especially Snapchat skew significantly younger.

Snapchat is the youngest skewing social network with almost half of its users between 18-24 years old and 2/3rds of them between the ages of 18-34. The most popular networks among Millennials tend to be those with visually-focused content that can be consumed easiest on mobile.

Demographic Composition % of Major Social NetworksSource: comScore Media Metrix Multi-Platform, U.S., Age 18+, Dec 2015

16.5 15.5 18.222.9

16.8 16.5

46.8

26.9 28.1

20.3 22.422.2

25.6

23.6 23.9

29.2

21.7 22.1

18.8 20.820.0

19.4

20.5 20.9

11.7

16.8 17.1

18.118.3 16.7

15.5

16.6 17.4

7.7

15.5 14.4

15.714.1 14.5

11.115.2 13.7

3.5

11.1 9.5

10.6 8.9 8.4 5.5 7.4 7.51.0

8.0 8.7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Age 65+

Age 55-64

Age 45-54

Age 35-44

Age 25-34

Age 18-24

Page 35: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 35

A majority of college-age adults use Snapchat every month, and the

popular app is picking up traction among older Millennials, too.

More than three in every five 18-24 year-olds now use Snapchat on their smartphones each month. Older Millennials are gaining ground fast at 31% penetration, while those age 35+ are still below 10% penetration. Is popularity among Millennials a predictor of eventual mainstream adoption?

Snapchat Smartphone App Penetration by AgeSource: comScore Mobile Metrix, U.S., Age 18+, April 2013 – Dec 2015

0%

10%

20%

30%

40%

50%

60%

70%

Apr-2013 Dec-2013 Aug-2014 Apr-2015 Dec-2015

% R

each

Age 25-34

8%

31%

5%

24%

2%

Age 35+

Age 18-24

64%

Page 36: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 36

0%

10%

20%

30%

40%

50%

60%

70%

Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015

% R

each

Age 25-34

Age 35-54

Total Age 18+

Age 18-24

Age 55+

Linkedin also experienced a recent surge in growth driven by

Millennials, as younger adults get more serious about their careers.

Linkedin has seen a dramatic growth trajectory in the past two years, and while the gains cut across demographic segments, the biggest strides have been made among Millennials. 18-24 year-olds have seen penetration surge from 14% to 48% while 25-34 year-olds have overtaken 35-54 year-olds as the highest penetration demo group.

Linkedin.com Penetration by Age DemographicSource: comScore Media Metrix Multi-Platform, U.S., Dec 2013 – Dec 2015

57%

40%

29%

28%

25%

14%

53%

49%

48%

25%

Page 37: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 37

TV & Cross-Platform

Page 38: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 38

The total amount of time watching TV is down 2% year-over-year for

both Live TV and DVR (excluding Video On Demand).

While viewing is down on Live TV and DVR, this does not mean that consumers are watching less content overall. There is now a greater availability of viewing options appealing to a wider array of tastes than ever before, but many of these options are offered via OTT, on demand and digital video.

Total Hours of TV Viewing: Live & DVR PeriodSource: comScore TV Essentials, U.S., Q1 2016 vs. Q1 2015, Live +15 Day DVR Playback Period

95.0 92.9

18.9 18.5

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Q1 2015 Q1 2016

Tota

l Ho

urs

of

TV V

iew

ing

(Bill

ion

s)

+15 Day DVR Period

Live

113.9

-2% Y/Y

-2%

-2%

111.4

Page 39: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 39

Within the cVOD market, subscription content has an impressive

share of engagement despite being driven by only a few channels.

The majority of cVODviewing is Free On Demand, but most of the growth is happening via subscription services such as HBO and Showtime. TOD, which includes fee-based rentals or special events, lost share in 2015 –perhaps due to subscription VOD increasingly filling the consumer need for great storytelling and high production value.

Cable Video On Demand (cVOD) Share of Time SpentSource: comScore OnDemand Essentials, U.S., Q1-Q3 2015*

61.4% 61.7%

30.0% 31.2%

8.6% 7.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1-Q3 2014 Q1-Q3 2015

Transactional On Demand (TOD)

Subscription Video On Demand (SVOD)

Free On Demand (FOD)

* Data originally appears in the State of VOD: Trend Report: http://www.rentrak.com/section/our_services/analytics/svod/

Page 40: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 40

Among Free On Demand content, the TV Entertainment and Kids

categories increased their total share of transactions by 4% in 2015.

The TV Entertainment category accounts for the majority of FOD viewing while also being one of the faster growing categories. Along with Kids content, which is also growing its share of viewing transactions, the two make up three of every four Free On Demand views.

Free On Demand (FOD) Share of Transactions* by CategorySource: comScore OnDemand Essentials, U.S., 2015 / 2014**

47.8% 49.4%

23.3%25.6%

13.9% 10.2%

5.1% 5.5%

10.0% 9.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015

Other

Movies

Music

Kids

TV Entertainment

* A VOD transaction is defined as any On Demand streaming order or view.

** Data originally appears in the State of VOD: Trend Report: http://www.rentrak.com/section/our_services/analytics/svod/

Page 41: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 41

Moreover, the TV Entertainment category’s share of all VOD time

spent has tripled in 6 years.

TV Entertainment content has been rapidly gaining share of total VOD transactions and time spent over the past several years before stabilizing in 2015. Other content categories such as Movies, Music, Kids, News and Sports account for the remaining share of transactions and time spent.

Video On Demand (VOD) Share of Transactions* and Time Spent in TV Entertainment CategorySource: comScore OnDemand Essentials, U.S., Video On Demand

16%19%

23%

29%

32%

37% 37%

16%

21%

25%

32%

36%

40% 40%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2009 2010 2011 2012 2013 2014 2015

Share of Transactions

Share of Time Spent

* A VOD transaction is defined as any On Demand streaming order or view.

Page 42: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 42

Most of the $8.7

billion in On

Demand revenue

came from recurring

subscription fees.

Purchases and

rentals via digital

retailers such as

Amazon, Google

Play and iTunes

contributed to

another 1/3rd share,

while On Demand

rentals from a cable

operator only

accounted for 10%.

2015 Share of Marketplace Revenue for On Demand Content*Source: comScore OnDemand Essentials, Digital Download Essentials and Internet TV Essentials, U.S., FY 2015

The majority of On Demand revenue comes from OTT subscription

services, such as Netflix, Amazon Prime and Hulu Plus.

57%

21%

12%

10%

Over the Top Subscription Video on Demand(OTT SVOD)

Electronic Sell-Through (EST)

Internet Video on Demand (iVOD)

Transactional on Demand (TOD)

* Please refer to page 2 of this report for the full definitions of these On Demand industry terms.

Page 43: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 43

There are more media platforms competing for consumers’ attention

than ever, as shown by digital eclipsing Live TV among Millennials.

There’s a clear trend showing that as demographic segments get younger, those consumers are more likely to spend time on their mobile device and less likely to spend time watching Live TV. It’s possible that digital share of time spent among 35-54 year-olds might also soon surpass Live TV.

Share of Platform Time Spent by DemographicsSource: comScore Xmedia and Media Metrix Multi-Platform, U.S., Q4 2015, Live TV

47%

57%

70%

14%

21%

14%

40%

22%

15%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Age 18-34

Age 35-54

Age 55+

TV Desktop Mobile

Page 44: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 44

When accounting for a selection of cable networks’ digital

properties, nearly 1/3rd of their total audience is uncovered.

This analysis of 10

cable networks

showed that their

digital properties

achieved massive

incremental

audience reach on

desktop and mobile.

On average, these

networks attracted

24 million additional

eyeballs on digital,

extending their

audience footprints

by 29%.

Cable Network Analysis: TV + Digital Cross-Platform Audience Reach AnalysisSource: comScore Xmedia, U.S., November 2015 – Live TV

85.0 85.0

5.1

11.6 11.614.6

12.7 12.7

0

20

40

60

80

100

120

TV Desktop Mobile Total

Re

ach

(M

illio

ns)

109.3 MM

Incremental Desktop Reach

Incremental Mobile Reach

Desktop Audience Overlap

Mobile Audience Overlap

TV Reach

Page 45: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 45

The largest digital media properties can reach just as massive of an

audience as the big four broadcasters in primetime.

Traditionally, primetime TV has been the advertising medium that marketers use to reach the largest audiences. Even though that still holds true today, the top digital media properties (Google, Facebook, Yahoo, Microsoft) can also achieve a similar, if not larger, reach over the course of a single month.

Monthly Audience Reach of Primetime Broadcast Networks vs. Top Digital Media PropertiesSource: comScore Xmedia (Live TV, 8PM-11PM) and Media Metrix Multi-Platform, U.S., November 2015

228 213 205 202

247

219203

184

0

50

100

150

200

250

300

Network 1Primetime

Network 2Primetime

Network 3Primetime

Network 4Primetime

Google Sites Facebook Yahoo Sites MicrosoftSites

Re

ach

(M

M)

TV Reach Desktop Reach Incremental Mobile Reach

Page 46: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 46

YouTube remains a leader in video, growing its total time spent on

all platforms the past 2 years – most dramatically on mobile.

The total time consumers spend on YouTube is up for both desktop and mobile, but its mobile engagement has nearly doubled over the past two years. It’s easier than ever to consume video anytime and anywhere, and mobile is the best medium for immediate, on-the-go viewing.

YouTube: Trend in Total Minutes (MM)Source: comScore Media Metrix Multi-Platform, U.S., Dec 2013 – Dec 2015

0

20,000

40,000

60,000

80,000

100,000

120,000

Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015

To

tal M

inute

s (

MM

) Mobile

Desktop

+95%

+8%

Page 47: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 47

Cross-platform measurement drives media planning efficiencies; for

example by showing how digital video can be layered onto a TV buy.

Cross-platform media planning can break down silos and allow brands to more efficiently reach audience targets. Over the course of a month, a YouTube ad buy across desktop and mobile has the potential to deliver 90%+ target reach when coupled with network primetime TV.

Audience Reach Analysis by Demographic: Major Broadcast TV Network in Primetime + YouTubeSource: comScore Xmedia, U.S., November 2015 – Live TV (8PM-11PM)

54% 58%67%

43% 38% 24%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Age 18-34 Age 35-54 Age 55+

% R

ea

ch

YouTube (Incremental)

Major Primetime Network

91%97% 96%

Page 48: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 48

Advertising

Page 49: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 49

The top online display advertisers deliver hundreds of billions of

impressions every year, but the market is highly fragmented.

Verizon led all

advertisers by

delivering roughly 1

out of every 80

desktop display ad

impressions in

2015. Close

competitor AT&T

ranked 3rd, while the

rest of the Top 10

included leading

consumer packaged

goods, retail and

technology

companies.

Top Advertisers by Share of Total Desktop Display Ad ImpressionsSource: comScore Ad Metrix, U.S., FY 2015

1.27%

1.17%

0.99%

0.88%

0.73%

0.73%

0.61%

0.60%

0.58%

0.58%

Verizon Communications

Intertainment Media

AT&T

Microsoft

eBay

Procter & Gamble

Nissan Motor

Amazon

Kellogg

American Express

Page 50: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 50

Both desktop and mobile ads deliver branding effectiveness, but

mobile performs better – particularly at the bottom of the funnel.

Mobile ads caused point lifts up to 2.5x greater than ads on desktop across four key brand metrics and performed strongest in bottom-funnel metrics, such as intent to buy and likelihood to recommend. Less ad clutter and proximity to point of purchase may be driving better effectiveness for mobile ads.

Percentage Point Lift in Brand Metrics for Desktop and Mobile AdsSource: comScore BSL and mBSL Benchmarks, U.S., Full Year 2015

Aided awareness

Favorability

Likelihood to recommend

Purchase Intent

1.4 2.3

1.3 2.7

1.5 3.3

1.4 3.7

Desktop Mobile

Page 51: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 51

But ad blockers, now used by 10% of U.S. desktop internet users,

prevent some online ad impressions from ever reaching people.

Ad blocker usage is a concern for publishers but has remained around 10% on desktop over the past six months. Publishers reaching a young male audience are most likely to be affected. Fortunately industry bodies and publishers are now taking action to address the issue by improving user experience and enhancing communication with their readership around value exchange.

Incidence of Ad Blocker Usage Among U.S. Desktop Internet UsersSource: comScore Custom Analytics, U.S., December 2015

11%

19%

15%

9%8% 8% 8%

9%

14%

10%

7%8% 7% 7%

0%

5%

10%

15%

20%

25%

Total 18-24 25-34 35-44 45-54 55-64 65+

Male Female

Page 52: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 52

Of the ad impressions that do get served, more than half can’t have

an impact because they’re not viewable or not delivered to a human.

A full 52% of all desktop ad impressions are unable to deliver an advertising impact. While most of these non-viewable ads are simply delivered to parts of the web page that are out of view, a meaningful percentage is being delivered to bots and by definition not viewable to a human.

Percentage of Viewable Ad Impressions in U.S.Source: comScore vCE Norms, U.S., Q4 2015

48%

45%

7%

Viewable

Non-viewable

Invalid Traffic (IVT)

Page 53: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 53

Sophisticated IVT is a significant contributor to the overall issue of

invalid traffic, necessitating advanced detection methods.

Sophisticated IVT, which according to the Media Rating Council (MRC) includes “traffic originating from hijacked devices, malware or misappropriated content,” accounts for the vast majority of invalid traffic. Sophisticated detection techniques are therefore required for advertisers to mitigate the potential for waste.

Invalid Traffic (IVT) by TypeSource: comScore Custom Analytics, U.S., Q4 2015

75%

25%% Sophisticated IVT

% General IVT

Page 54: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 54

Certain publisher categories perform better than others in actually

delivering viewable ads to their audiences.

Several publisher

categories perform

well above the

overall online

benchmark when it

comes to delivering

viewable ads. At the

top of the list are the

Radio, Food, and

Sports categories,

each of which is

approximately 10

percentage above

the overall average

of 48%.

Percent of Viewable Ads by Select Publisher CategorySource: comScore vCE Benchmarks, U.S., Q4 2015

61%59%

57% 57% 56%54%

52%50%

47%

Radio Food Sports Music Social Media News/Info TV Health/Wellness Technology

Page 55: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 55

E-Commerce

Page 56: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 56

By Q4 2015, total digital commerce had grown to account for 15% of

discretionary dollars spent by consumers – an all-time record mark.

Digital’s share of

consumer

discretionary

spending, which

peaks in seasonally

colder months,

reached an all-time

high in Q4 2015 at

15%. Digital

commerce share

appears to be

accelerating in

recent years due to

the impact of

mobile.

Desktop & Mobile Digital Commerce Share of Corresponding Consumer Spending*Source: U.S. Dept. of Commerce, comScore e-Commerce & m-Commerce Measurement, U.S., 2004 - 2015

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

15%

16%

Digital Commerce Share (desktop + mobile)

e-Commerce Share (desktop)

*Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales excluding Food Service & Drinking, Food & Bev. Stores,

Motor Vehicles & Parts, Gasoline Stations and Health & Personal Care Stores.

13.5%(Q4 ‘14)

12.5%Q4 ‘15

15.0%Q4 ‘15

11.8%(Q4 ‘14)

Page 57: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 57

Boosted by a growing share of mobile, total digital commerce

surpassed $90 billion in Q4 2015 to mark its highest total ever.

Digital commerce growth rates have remained relatively stable in the past two years, hovering between 12-16%. Despite strong growth rates through much of 2015, however, Q4 saw a material slow-down in the y/y growth rate driven in part by a tougher comparison to a strong Q4 2014.

Total U.S. Retail Digital Commerce GrowthSource: comScore e-Commerce & m-Commerce Measurement, U.S., 2012 - 2015

$50.2 $49.8 $47.5

$63.1 $56.1 $54.8 $53.9

$72.1

$61.1 $59.8 $58.3

$76.9

$5.9 $4.7 $5.8

$8.3

$7.3 $6.9 $6.7

$10.7

$11.1 $11.1 $11.4

$15.6 15%

16%

14%

12%13% 13%

14%

16%

14%

15% 15%

12%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

$-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Y/Y

% G

row

thBill

ions (

$)

Desktop Mobile Y/Y % Growth

Page 58: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 58

In terms of discretionary retail spending, m-commerce growth is far

outpacing desktop e-commerce and bricks-and-mortar.

2015 was a huge year for mobile commerce, seeing annual growth of 56% and gaining a larger share of retail dollars. Desktop e-commerce is still experiencing moderate growth at 8%, but it has dipped into single digits as mobile continues to emerge as a buying platform.

Full Year 2015 Y/Y Retail Spending Growth by ChannelSource: U.S. Dept. of Commerce, comScore M-Commerce and E-Commerce Measurement, U.S., FY 2015 / FY 2014

+1%

+8%

+56%

+0%

+10%

+20%

+30%

+40%

+50%

+60%

Total Discretionary Retail e-Commerce m-Commerce

Page 59: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 59

Mobile commerce appears to have hit an inflection point in its

growth and has seen a big uptick in its digital commerce share.

M-commerce has come a long way in the past 5 years and now contributes about 1 in every 6 dollars spent via digital commerce. 2015 saw an especially strong jump in its percent share of the total market as consumers became more comfortable transacting on their smartphones and tablets.

Quarterly Trend in Mobile Commerce as a Share of Total Digital CommerceSource: comScore M-Commerce and E-Commerce Measurement, U.S., Q2 2010 – Q4 2015

1.8%2.4%

3.6%

5.8%6.6%

8.8% 9.0% 9.3%

8.1%

9.8%

11.3%10.5%

8.6%

10.8%

11.7%11.5%11.1%11.1%

13.0%

15.4%15.6%

16.4%16.9%

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Page 60: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 60

However, dollars are significantly lagging digital media time spent

on mobile, highlighting the mobile conversion challenge.

Mobile accounts for 60% of time spent shopping online, but only 16% of all retail dollars spent, due to factors such as security concerns and smaller screen size. This m-commerce monetization gap will continue to narrow over time, but the shares of time spent and dollars spent likely won’t ever reach equilibrium.

2015 Share of Retail Time Spent vs. Spending by PlatformSource: comScore M-Commerce and E-Commerce Measurement, U.S., FY 2015

60%

16%

40%

84%

Time Spent Dollars Spent

Desktop

Mobile

44%

Gap

Page 61: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 61

Categories that did have high m-commerce conversion, such as

Video Games & Accessories, saw the biggest annual gains.

Online retail grew 14% year-over-year in 2015, with the fastest growing categories seeing most of their gains on mobile. The top 3 product categories in terms of growth contain inexpensive, less complicated purchases that consumers are increasingly willing to make on their smartphones and tablets.

Y/Y % Change in Total Retail Digital Commerce Dollars by CategorySource: comScore E-Commerce Measurement, U.S., FY 2015 vs. FY 2014

44%

42%

32%

30%

29%

25%

23%

19%

16%

15%

14%

12%

11%

9%

8%

6%

5%

5%

Video Games, Consoles & Accessories

Toys & Hobbies

Sport & Fitness

Jewelry & Watches

Event Tickets

Music, Movies & Videos

Flowers, Greetings & Misc Gifts

Apparel & Accessories

Home & Garden

Furniture, Appliances & Equipment

Total Digital Commerce

Computer Software

Books & Magazines

Consumer Electronics

Consumer Packaged Goods

Office Supplies

Computers / Peripherals / PDAs

Digital Content & Subscriptions

Page 62: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 62

Apparel & Accessories overtook Computer Hardware in Q1 and Q2

as the #1 category for digital commerce for the first time ever.

Computer Hardware has long been the #1 category in digital commerce, but recent strength in the Apparel & Accessories category – due in large part to mobile commerce – vaulted it ahead in the first two quarters of 2015 before briefly losing the lead in Q3, only to regain it in the final quarter.

Digital Commerce Sales by Category: Apparel & Accessories vs. Computer HardwareSource: comScore E-Commerce & M-Commerce Measurement, U.S., Q1 2013 – Q4 2015

$8.4 $8.4

$7.1

$12.3

$9.9 $10.0

$8.4

$15.0$12.4

$11.8

$10.1

$17.2

$9.2 $9.1$9.9

$13.5

$10.2 $10.0

$11.3

$15.9

$11.1 $11.0

$11.8

$16.0

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Bill

ions (

$)

APPAREL & ACCESSORIES

COMPUTER HARDWARE

Page 63: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 63

This holiday season retail traffic peaked on Black Friday and Cyber

Monday, with mobile outpacing desktop every day this season.

Mobile accounted

for 63% of all online

retail visits this

holiday season and

outpaced desktop

every single day of

the season. Mobile

visits peaked on

Black Friday, while

desktop visits

peaked on Cyber

Monday, which saw

more overall retail

traffic than any

other day in 2015.

2015 Holiday Season: Digital Retail Visits (MM) by PlatformSource: comScore Custom Analytics, U.S., Nov 1 – Dec 31, 2015

-

100

200

300

400

500

600

700

800

11/1/2015 11/8/2015 11/15/2015 11/22/2015 11/29/2015 12/6/2015 12/13/2015 12/20/2015 12/27/2015

Vis

its (

MM

)

MOBILE

DESKTOP

TOTAL DIGITAL

Black Friday Cyber Monday

Page 64: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 64

Box Office

Page 65: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 65

$652.3

$652.0

$459.0

$356.5

$353.0

$348.8

$336.0

$269.6

$225.3

$201.2

Jurassic World

Star Wars: The Force Awakens

Avengers: Age Of Ultron

Inside Out

Furious 7

American Sniper

Minions

The Hunger Games: Mockingjay Part 2

Martian, The

Cinderella

Star Wars had an

impressive box

office of $652

million in just two

weeks of release at

the end of the year,

but Jurassic World

took the top spot

overall. The Top 10

for 2015 featured

mostly action

movies and

animated family-

friendly films.

Jurassic World led the 2015 domestic box office, but Star Wars

nearly edged it out despite only in release for two weeks in 2015.

Top 10 Grossing Box Office Movies in 2015Source: comScore Box Office Essentials, U.S., Jan. 1 – Dec. 31, 2015

Page 66: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 66

20th Century Fox

was home to two of

the biggest movies

in 2015 in terms of

total digital

purchases and

rentals. As with the

top grossing box

office movies, action

films tended to be

most popular

among audiences,

even on the “small

screen.”

Gone Girl was the top U.S. digital movie purchase/rental in 2015,

topping Kingsman: The Secret Service and American Sniper.

RANK TITLE STUDIO

1 Gone Girl Fox

2 Kingsman: The Secret Service (2015) Fox

3 American Sniper (2014) Warner

4 Interstellar (2014) Paramount

5 The Hunger Games: Mockingjay - Part 1 (2014) Lionsgate

6 Interview, The (2014) Sony

7 Big Hero 6 (2014) Disney

8 John Wick (2014) Lionsgate

9 Fury Sony

10 Mad Max 4: Fury Road (2015) Warner

11 Inside Out (2015) Disney

12 Get Hard (2015) Warner

13 Home (2015) Fox

14 Hobbit, The: The Battle Of The Five Armies (2014) Warner

15 Avengers: Age Of Ultron (2015) Disney

16 Equalizer, The Sony

17 Birdman (2014) Fox

18 Spy (2015) Fox

19 Insurgent (2015) Lionsgate

20 San Andreas (2015) Warner

* Excludes NBC Universal and non-participating Independent distributors. EST revenue source: DEG

Top 20 Digital Movie Purchases & Rentals in 2015Source: comScore Digital Download Essentials, U.S., Jan. 1 – Dec. 31, 2015

Page 67: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 67

Ten Trends for 2016

Page 68: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 68

Top Trends for 2016

1. 2016 will be the year of cross-platform

Over the past few years we’ve seen the convergence of desktop and mobile into a unified multi-platform digital environment. The next phase in media convergence is the collision of

TV and Digital as a higher percentage of viewing happens via the internet and as consumers’ viewing patterns become more fluid across platforms. As measurement systems are

developed to quantify this behavior, the media and marketing industries will be transformed by the power of cross-platform data.

2. Digital audience growth will subside, leading to a renewed focus on engagement and attention metrics

Digital audiences have undergone a sustained period of growth from the emergence of the mobile internet, but signs that this growth trend is beginning to taper off point to a growing

demand for metrics that go beyond demonstrating scale. Engagement metrics, such as time spent and meaningful visits, are likely to play an increasing role in articulating the value

of a digital media property’s audience.

3. The smartphone app will account for the majority of all digital media consumption

Time spent on smartphone apps has been consistently trending upward in the past few years, ending 2015 with a 47% share of total digital media engagement. It’s growth trajectory

will continue in 2016 – particularly as mobile video viewing gains steam – on its way to representing the majority of all digital consumption time.

4. Mobile ad spend will get unlocked as measurement standards come into place

Mobile advertising growth has been on a tear the past two years, which is little surprise given the shift in media consumption to smartphones and tablets. At the same time,

measurement standards for mobile have lagged that of desktop, which has likely inhibited further ad spending on mobile. As those standards finally come into clearer view in 2016,

advertisers will benefit from more comparable metrics and more scalable means of reaching the right consumers.

5. Social media will increasingly revolve around video content

With Snapchat having now emerged as the next great social media company, there is a growing realization of the power of video to drive social resonance. Facebook and Instagram

have already ramped up their video efforts, and more recently we’ve seen Twitter-owned Periscope capture the attention of users with its livestreaming capability.

Page 69: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 69

Top Trends for 2016

6. Platform publishing optimization will emerge as digital’s newest cottage industry

With publishers putting their content directly on 3rd party publishing platforms such as Facebook Instant Articles, Snapchat Discover and Apple News, a host of technological, analytic

and revenue optimization challenges will arise that may exceed what publishers are equipped to efficiently handle in-house. Just as search engine optimization boomed during the

first half of the 2000s, and social marketing optimization exploded in the late 2000s, the next big digital cottage industry will be built around publisher platform optimization.

7. Just as small screen viewing is shifting to the tiny screen, the big screen will be increasingly fought on the small screen

TV – aka “small screen” – content viewing has increasingly shifted to even smaller screens such as smartphones and tablets in the past few years. A parallel shift we can expect to

see accelerate in 2016 is from the movie theater screen to TV screen. As Netflix, Amazon, Hulu and others enter bidding wars for the rights to major motion pictures that would

traditionally have a theatrical release, more first-run viewing of these films is likely to happen from the comfort of streaming video subscribers’ homes.

8. Wider availability of over-the-top (OTT) content will grow the Total Video pie, not cannibalize it

The conversation around shifts toward OTT viewing on Netflix, Amazon and the like has traditionally been coupled with discussion of cord-cutting. But with more broadcast and cable

networks – such as HBO, CBS, Disney and others – making their content available over-the-top via apps, there is a renewed opportunity to reach those non-Pay TV audiences who

couldn’t otherwise be reached while not increasing the rate of cord-cutting.

9. Mobile commerce will surpass 20% share of total retail dollars spent on digital

While m-commerce conversion will remain a relative friction point, a confluence of factors are improving to help mobile’s share of spending continue to accelerate. Faster

connections, decreasing concerns over transaction security, larger phone screen sizes, and more frictionless navigation of e-commerce mobile sites and apps will all help push m-

commerce share from under 17% in 2015 to more than 20% in 2016.

10. Content curation will emerge as a key area of tech and startup innovation

The expansiveness and highly fragmented nature of media content today has created a huge problem for consumers who want to easily access and keep track of the TV shows,

digital videos, podcasts, books, music, and articles they want to consume. At the same time, there remains untapped opportunity for more relevant content recommendation –

leveraging social and other algorithms – that can help significantly improve the content discovery experience. That such large consumer friction points still exist suggest that the

technology/media sector may be ripe for its next wave of innovation (ironically, just as talk of the tech bubble bursting reaches a fever pitch).

Page 70: Cross Platform future in focus at us 2016

© comScore, Inc. Proprietary. 70© 2016 comScore, Inc.For info about the proprietary technology used in comScore products, refer to http://www.comscore.com/About-comScore/Patents

www.comscore.com @comScore www.linkedin.com/company/comscore www.facebook.com/comscoreinc

For more information about comScore and its

measurement products, please visit:

www.comscore.com/learnmore

For more information about the report, please contact:

ANDREW LIPSMAN, VP Marketing & Insights [email protected]

ADAM LELLA, Senior Marketing Insights Analyst [email protected]