comScoreUSDigitalFutureinFocus.ppt

Key Insights,andand They Mean for the Year,U.S.,THE 2012 DIGITAL FUTURE IN FOCUS,Key Insights from 2011 WhatWhat They MeantheforComingComing Year,February 2012,Introduction,Sparked by a wave of innovation in digital device hardware andtechnology software platforms,accompanied by consumers rapidlyincreasing digital consumption habits,2011 marked an excitingyear for the digital media industry and signaled an even moremomentous year ahead.Amidst this constantly evolving landscape,successful digital strategies require insights into not only the currentenvironment,but also into what trends will shape the future fordigital consumers.,This report examines how the prevailing trends in social media,search,online video,digital advertising,mobile and e-commercedefine the current United States marketplace and what these trendsmean for the year ahead,as comScore helps bring the digital futureinto focus.,FOR FURTHER INFORMATION,PLEASE CONTACT:,Sarah Radwanick,comScore,Inc.+1 206 268,Andrew Lipsman,comScore,Inc.+1 312 775,Stay Connected,Follow comscore,2,Contents,4691114182226303536,Executive SummaryTop Web DestinationsSocial NetworkingSearchOnline VideoDigital AdvertisingMobileE-CommerceConclusionAbout comScoreMethodology and Definitions,Executive Summary,FACEBOOK-LED SOCIAL MEDIA MARKET ISREDEFINING COMMUNICATION IN THE DIGITAL ANDPHYSICAL WORLDSSocial networking continues to amass online users andcapture an increasing share of their time,redefining howpeople interact with their personal social circles and brandsin both the online and offline environments.Social Network-ing accounted for 16.6 percent of all online minutes at theend of 2011 and is on track to surpass Portals as the mostengaging online activity in 2012.Facebook continues to leadas the driving force behind this shift in consumer behavioraccounting for the largest share of online minutes across theentire web in 2011.,ONLINE VIDEO BOOM SIGNALS SEA CHANGE INVIDEO ECOSYSTEMOnline video viewing witnessed impressive gains across avariety of measures in 2011,signaling a behavioral shift inhow Americans are consuming video content.The increasingavailability and adoption of long-form video content hasdriven a dramatic increase in video viewing as consumersexercise their freedom to watch available content however,whenever and wherever they want.More than 100 millionAmericans watched online video content on an average dayto close out 2011,representing a 43-percent increaseversus year ago.In addition to more daily viewers,thenumber of video streams jumped 44 percent to 43.5 billion in,December 2011.BING GAINS GROUND IN SEARCH,Although Google maintains a strong lead in the U.S.searchmarket,the most notable story in search this year was Bingspositive growth trajectory.Bing closed out the year bysurpassing Yahoo!for the#2 position among core searchengines for the first time in its history,bolstered in part byits social search partnership with Facebook implemented inearly 2011.While Google still owns two-thirds of the searchmarket,Bing has captured 15 percent of the market on itsown and is powering about that same percentage on behalfof Yahoo!.,DIGITAL ADVERTISING ENTERS ERA OFINCREASED ACCOUNTABILITY AS BRANDDOLLARS CONTINUE TO SHIFT ONLINEA staggering 4.8 trillion display ad impressions were deliveredacross the U.S.web in 2011 as brand advertisers continuedto shift dollars to the digital medium.This shift in ad dollars hasmagnified the need for greater transparency and accountabilityin ad delivery across the digital advertising ecosystem,heralding in an era where digital campaign validation becomesa necessity to push digital ad dollars to the next level.,4,EXECUTIVESUMMARY,SMARTPHONE AND TABLETS FUEL THE RISE OFTHE DIGITAL OMNIVOREThe rise of smartphones and tablets has drastically alteredconsumers digital media consumption changing the waypeople access content,where they consume it and thefrequency of consumption.This evolution of digital deviceinteraction has given rise to an age of digital omnivores consumers who access content through several touchpoints during the course of their daily digital lives.In 2011,the majority of all mobile phone owners consumed mobile,E-COMMERCE IS BACK AND BIGGER THAN EVERDespite the backdrop of continued economic uncertainty,2011 was a strong year for retail e-commerce.Throughoutthe year,growth rates versus the prior year remained indouble-digits to significantly outpace growth at brick-and-mortar retail.Consumers remained cautious spenders overall,but increasingly turned to digital commerce due to twoprevailing factors:price and convenience.Total U.S.retail andtravel-related e-commerce reached$256 billion in 2011,up12 percent from 2010.,media on their device,marking an important milestone in theevolution of mobile from primarily a communication device toa content consumption tool.At the end of 2011,more than 8percent of all digital traffic was consumed beyond the classicweb across devices such as smartphones and tablets.5,14%,12%,10%,8%,6%,Top Web Destinations,Traditional portalsare concedingground to Facebookand other socialnetworks,GOOGLE OWNS LARGEST AUDIENCE,BUT FACEBOOK LEADS IN ENGAGEMENTThough Google Sites remained the most visited U.S.webproperty in the U.S.with 187 million visitors in December2011,Facebook continues to extend its lead as the mostengaging web property,accounting for 14.6 percent of alltime spent online to conclude the year.Google Sites,which,Share of Total Time Spent on Internet at Top Web PropertiesSource:comScore Media Metrix,Dec-2010 to Dec-2011,U.S.18%16%,is bolstered by its inclusion of YouTube,ranked secondin terms of time spent at 10.8 percent,while Yahoo!Sitescommanded the third position at 8.6 percent.The shiftsin engagement among the top content properties suggestuser trends moving away from traditional portal content infavor of social networking and entertainment content.4%2%0%,DEC,JAN,FEB,MAR,APR,MAY,JUN,JUL,AUG,SEP,OCT,NOV,DEC,2010,2011,FACEBOOK.COMMICROSOFT SITES,GOOGLE SITESAOL,INC.,YAHOO!SITES,6,20%,15%,10%,5%,0%,TOP WEBDESTINATIONS,SOCIAL NETWORKING ON THE HEELS OF PORTALSFOR ENGAGEMENT LEADDespite the overall maturity of the U.S.web market,onlineconsumer behavior patterns continue to evolve and shiftover time.The web has slowly transformed from a primarilyinformation-seeking,functional medium to one that is moreoriented toward entertainment and leisure content.Oneof the key shifts in audience behavior has been decliningengagement with portals and the rising engagement withsocial networks.Traditional Portals,such as Yahoo!,MSNand AOL,are conceding ground to Facebook and othersocial networks,which have increasingly become thestarting point for many Americans online,while the keydrivers of traditional Portal engagement including email,instant messengers and homepages continue to see,Share of Total Time Spent on Internet at Top Web PropertiesSource:comScore Media Metrix,Dec-2010 to Dec-2011,U.S.,engagement declines.As of December,Portals represented16.7 percent of time spent online while Social Networkingwas just a fraction of a percentage point behind at 16.6percent.If current trends continue,Social Networking willsoon declare its supremacy over Portals.The Entertainment,DEC JAN FEB MAR APR2010PORTALSSOCIAL NETWORKINGENTERTAINMENT,MAY JUN JUL AUG2011E-MAILNEWS/INFORMATIONRETAIL,SEP,OCT NOV DECCOMMUNITYGAMES,category,which includes TV and music content,video sitesand entertainment news,is also gaining market share andcurrently accounts for 13 percent of time spent.Meanwhile,web-based emails market share slipped below 10 percentfor the first time.Among the categories experiencing the greatest overalldeclines in time spent online are Instant Messengers(down40 percent),Online Personals(down 26 percent),Weather(down 23 percent)and Job Search(down 21 percent).Instant Messengers and Online Personals continue to losetraction as consumers shift to alternate communicationchannels,including social media and mobile.Weather,in,particular,is in the midst of a channel shift as consumersincreasingly rely on their mobile devices to get weatherinformation.Job Search sites,meanwhile,are coming downfrom the peaks that occurred during 2009 and 2010 whenU.S.unemployment was well above 9 percent.Job Searchis also another category that is witnessing opposite trendsin the classic web and mobile channels with Job Listingsleading as one of the top-gaining mobile content categoriesfor 2011 with a 74-percent gain in mobile audience.Assmartphone adoption continues to climb,2012 will seemobile further influence digital content consumption as thesedevices change how,where and even why consumers goonline.,7,10%,4%,-20%,TOP WEBDESTINATIONS,CONTINUED DECLINES IN WEB-BASED EMAIL USAGESIGNAL SHIFT IN CLASSIC WEB CONSUMPTIONOne of the more significant trends in online communicationsis usage attrition in web-based email services as consumersshift to social media and alternate communication channels.,Percent Change in Time Spent Using Web-Based EmailSource:comScore Media Metrix,Dec-2011 vs.Dec-2010,U.S.,The most notable declines in webmail engagement havebeen occurring among teens age 12-17(down 31 percent)and 18-24 year olds(down 34 percent.).While thesignificant decline among teens represents a continuation,20%,15%,of a similar trend observed last year,that 18-24 year oldsare now moving away from webmail suggests a larger andmore permanent shift in email usage may be occurring.Partof this shift is attributable to the rising role of mobile devices,0%-10%,0%,-1%,-7%,in consumers digital lives,which is directly impacting howpeople engage with the classic web.The mobile emailaudience for both age segments saw double-digit growth in,the past year,with mobile email users age 18-24 climbing32 percent.,-30%,-31%,-34%,-40%,12-17,18-24,25-34,35-44,45-54,55-64,65+,AGE8,20%,18%,12%,10%,20,000,10,000,Social Networking,Social networkingnow accounts forapproximately 1 outof every 6 minutesspent online,SOCIAL NETWORKING CONTINUES GROWTH IN 2011 AS ONE OF THE WEBS TOP ACTIVITIESSocial Networking continued to gain momentum in 2011,Beyond Facebooks dominance in the social networkingas 9 out of every 10 U.S.Internet users visited a social market,several interesting stories emerged among thenetworking site in a month.Social Networking now accounts second tier players.Myspace finally gave up its hold onfor approximately 1 out of every 6 minutes spent online,with the#2 position to LinkedIn in June,which was followed byFacebook accounting for the lions share of that engagement.Twitter and LinkedIn battling back and forth for that position,Facebooks Share of Total Time Spent OnlineSource:comScore Media Metrix,Jun-2008 to Dec-2011,U.S.,during the second half of the year.By December,Twitterboasted the#2 spot in the category with 37.5 million uniquevisitors,while LinkedIn held the#3 position with 33.5,million.Myspace is still managing to hold onto the fourthposition with just over 24 million visitors,though a coupleof upstarts are beginning to nip at its heels.16%14%Visitors(000)to Selected Social Networking SitesSource:comScore Media Metrix,Dec-2010 to Dec-2011,U.S.,8%6%4%2%,60,00050,000,0%,JJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASOND,40,000,2008,2009,2010,2011,30,000,FACEBOOK,OTHER SOCIAL NETWORKING SITES,The worlds most popular social networking site,which filedfor its IPO on February 1,continued to gain visitors despitealready reaching nearly 3 out of every 4 U.S.Internet users.,Its more significant growth trend,however,was not in usergrowth but in average user engagement,which jumped 32percent in the past year to just over 7 hours per visitor in,0,DEC2010,JAN,FEB,MAR,APR,MAY,JUN JUL2011,AUG,SEP,OCT,NOV,DEC,December.Facebook now accounts for 15 percent of alltime spent online and 16 percent of all page views.,TWITTER.COMGOOGLE PLUS,LINKEDIN.COMTUMBLR.COM,MYSPACEPINTEREST.COM,9,SOCIALNETWORKING“In 2012 weregoing to see socialmedia define thiselection.Its goingto influencehow people getout the vote andhow onlinefundraising occurs.”Hear more insights on the futureof social media from AndrewLipsman,comScore VP ofMarketing and Industry Analysis,Perhaps the most closely watched story in the socialnetworking space this year was the June launch ofGoogle+.With only about a half year in existence thus far,Google+had already reached 20.7 million U.S.visitorsin December.Clearly Googles big social play is alreadymaking its presence felt among the larger players in thespace and will look to jump ahead of Myspace in thecoming months.Not far behind Google+is Tumblr with18.8 million visitors.After years of slowly but steadilybuilding traction within a core group of followers,2011marked a year in which Tumblrs audience moved beyondinnovators into the early adopter user set.The servicespopular tumblogs,which have become an Internet mainstayfor people with specific interests,often feature funny orirreverent content.The critical test for Tumblr will come as itattempts to cross the chasm into the early majority and pushits U.S.web penetration beyond 10 percent of the market.Another 2011 upstart worthy of mention is Pinterest,whichhas amassed an impressive audience of nearly 8 millionvisitors after barely registering on comScores radar in themiddle of the year.Defying the traditional profile of techinnovators,which tend to be 18-34 year old males livingon the coasts,Pinterest has actually gained early tractionamong young adult and middle-aged women living in centralregions of the country.Where both Pinterest and Tumblr have also excelled is ingenerating strong visitor engagement.While Facebookexemplifies heavy visitor engagement with an average of7 hours per visitor each month,Pinterest and Tumblr arethe only two other sites that attract at least one hour ofengagement per visitor on their primary web-based accesspoints,though it should be noted that other social networks,Average Minutes per Visitor forSelected Leading Social Networking SitesSource:comScore Media Metrix,Dec-2011,U.S.FACEBOOK.COM 423TUMBLR.COM 151PINTEREST.COM 80TWITTER.COM 25LINKEDIN.COM 15MYSPACE 13GOOGLE PLUS 5 such as Twitter and Google+may see a significantportion of their users engagement occur via mobile access,third-party apps and/or distributed content.Pinterests early success has the digital world watchingintently as new trends in social behavior begin to emerge.While the social networking market has traditionally beencharacterized by its underlying social graph,in which theconnecting nodes are represented by individual users,Pinterest offers a glimpse into the emergence of the interestgraph,in which shared interest becomes the primaryconnecting points.2012 will be a year in which networkingaround shared interests takes the main stage as one of thehot topics in the social space.,10,Search,Bing capturedthe#2 spot forthe first time onrecord when itsurpassed Yahoo!in December 2011,GOOGLE CONTINUES TO LEAD WHILE MICROSOFTBING CLOSES OUT THE YEAR IN#2 SPOTGoogle retained its position at the top of the U.S.explicit