The 2013 Digital Year in Review & What It Means for the Year Ahead

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Introduction

#FutureinFocus

Executive Summary comScore has been preparing for a future where the digital media experience is scattered across an increasing number of different devices and platforms. This new reality not only demands a holistic understanding of digital consumer behavior, but also the high-quality, objective audience measurement to make sense of it all. As engagement shifts from PC to mobile, the future of digital marketing is clearly going multi-platform. Consumption habits have shown that Canadians are more platformagnostic in their digital media consumption as they seamlessly switch devices throughout the day to try and stay current on email, news, social media, TV-viewing, etc.
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The following report examines how the latest trends in PC online usage, display advertising, online video, mobile usage that are currently shaping the Canadian digital marketplace and what it means for the year ahead, as comScore helps bring the digital future in focus.

FOR FURTHER INFORMATION, PLEASE CONTACT: Kevin Duong canada@comscore.com Adam Lella press@comscore.com

Table of Contents
PC Online Usage Digital Advertising Online Video Mobile Usage Multi-Platform Summary & Implications Appendix: Methodology 4 10 18 23 35 41 44

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PC Online Usage in Canada

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Canadian Internet users continue to be among the most highly engaged Worldwide
Online Visitation and Engagement
Q4 2013*
Geography Average Monthly Unique Visitors (000) Average Monthly Hours per Visitor Average Monthly Pages per Visitor Average Monthly Visits per Visitor

Worldwide China United States Japan Russia Brazil Germany France

1,619,641 353,368 196,498 73,656 66,888 66,472 53,254 42,604

24.2 22.9 36.2 19.2 32.6 32.5 20.1 30.4

2,238 2,330 3,162 1,898 2,590 3,818 2,015 3,026

58 61 82 49 65 73 52 76

United Kingdom
Italy

39,272
30,105

36.0
25.4

3,269
2,473

81
56

Canada

25,181
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34.6

3,001

88
5

*Ranking in table is based on Average Monthly Unique Visitors in Q4 2013 for selected geographies Source: comScore, Inc., Media Metrix, WW, Home & Work, Persons: 15+, Monthly Q4 Avg. 2013

Canadian online demographics show half of the population is under age 35, and a third reside in households that earn at least $100,000 annually
Gender 27% 21% Age 32%

20%

50%
Region

50%

Under 18

18-34

35-54

55+

Household Income (CAD)

Less than $40,000

18%
British Columbia Prairies 14% 18% Atlantic 7% Quebec Ontario 22% 39%
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$40,000 - $74,999
$75,000 - $99,999 $100,000 or more

35%

30% 18%

Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, Monthly Q4 Avg. 2013

While Canadians are still heavy users of desktop internet, their engagement has begun to shift from PC to mobile platforms
PC Internet Engagement
Monthly Q4 Avg. 2012 Monthly Q4 Avg. 2013 Monthly Q4 Avg. 2012 Monthly Q4 Avg. 2013

-17%
65,802

-21%

54,435

99,110 78,505

Total Minutes (MM)

Total Pages Viewed (MM)

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Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, Monthly Q4 Avg. 2013 vs. 2012

Mobile content consumption is gaining across categories in Canada

Top 10 Mobile Content Categories by Mobile Subscribers (000)
Weather Social Networking Search 11,864

8,907

Instant Messaging Service

Maps/Directions Local/World News Bank Accounts

Photo/Video Sharing
Entertainment News Sports
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11,088 9,014 10,577 8,362 9,762 7,826 8,653 6,318 7,499 5,927 6,731 4,886 6,667 4,558 6,156 4,613 5,575 4,001
Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013 vs Dec 2012

Dec-2013 Dec-2012

Canadians exhibit above-average search behavior on PC, while also engaging with other platforms for search activities
% Reach of Search
95% 57% 9.9 Million smartphone subscribers conducted a search on their phones
% Reach PC Population % Reach Smartphone Subscribers

Mobile Audience

PC Searches per Searcher

Canada

Mobile Search Access Method 139.8 129.2

Performed a Search using a Browser

France
United Kingdom United States World-Wide

86%

127.8
108.9 103.7
comScore, Inc. Proprietary. Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013 Source: comScore, Inc., Media Metrix, CA, Home & Work, Persons: 2+, December 2013

Performed a Search using an Application

34%

Display Advertising in Canada

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Finance ranked as the top sector for display advertising in 2013, followed by Retail and CPG
Top 10 Industry Categories in 2013 by Total Display Ad Impressions (000) Finance Retail Consumer Goods Automotive Computers & Technology Travel Media & Entertainment Telecommunications Health Public Services 43,664,755 40,194,541 30,297,383 25,850,799 21,338,367 15,993,697 13,396,418 11,968,710 11,573,616 9,028,910
*Excluding Multi-Category Advertisers, Online Media Source: comScore, Inc., Ad Metrix, CA, Home & Work, Persons 2+, Annual Aggregate 2013

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Half of Canadian display ads are non-standard sizes and 72% are standard static types
Advertising Creative Summary by Size and Type
1% 4% 24% Ad Creative Sizes 50% Ad Creative Types 72% 1%

3%

46%

Non-Standard Other Ad Units

Universal Ad Package Display Rising Star

Standard Static Rich Media Display

Flash(Generic) Other Types

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Source: comScore, Inc., Ad Metrix, CA, Home & Work, Persons: 2+, Monthly Q4 Avg. 2013

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In 2013, more than 615 billion display ad impressions were delivered in Canada during the year
Top 10 Advertisers in 2013 by Total Display Ad Impressions (000)
American Express Procter & Gamble Microsoft General Motors

Netflix
Capital One Financial

TD Bank
Telus

Clearly Contacts
Fiat Automobiles SpA

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Source: comScore, Inc., Ad Metrix, CA, Home & Work, Persons 2+, Annual Aggregate 2013

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CPG display advertising led by Health & Beauty sector, followed by Food & Grocery
Consumer Packaged Goods Advertising by Category
Share within CPG Category

Health & Beauty

Food & Grocery Household & Cleaning Supplies Alcoholic Beverages Beverages Babycare 9% 15%

35%

6%
6% 5% 2% 1%

Paper Products
Dairy Frozen Foods Pet Care

1%
1%

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*CPG = Consumer Goods (excluding Restaurants) Source: comScore, Inc., Ad Metrix, CA, Home & Work, Persons 2+, Annual Aggregate 2013

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Social Media sites account for more than 1 out of every 3 online display ads delivered in Canada
Top 10 Display Advertising Publisher Categories* by Share of 2013 Impressions
Social Media 36% 18% 12%

Entertainment
Portals News/Information

8%
5% 5%

Directories/Resources
Sports Lifestyles

4%
3% 3%

Games
Retail Business/Finance

2%
*Excluding Corporate Presence, Promotional Servers, Services Source: comScore, Inc., Ad Metrix, CA, Home & Work, Persons 2+, Annual Aggregate 2013

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comScore validated Campaign Essentials (vCE) helps advertisers validate their digital campaigns across a number of variables

=
Census Panel

A single ad tag is appended to every creative to provide a complete view of campaign delivery

comScores global two million person panel is used in conjunction with censusdata to validate target audience delivery

In-View

Audience
Age Gender Household Income Household Size Behavioral Segments

Geography
Non-Brand Safe Non-Human Traffic

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vCE online advertising norms show that more than half of ads are not delivered in-view, but geographic targeting is strong in Canada
% of Online Display Ad Impressions

In-view

In-target

44.4% In-geo

41.1% Non-Brand Safe*

99.0%
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24.7%
Based on over 100 tagged vCE campaigns in Canada in 2013 *Non-Brand Safe refers to impressions that were alerted based on client defined and/or comScore defined non-brand safety

17

Online Video in Canada

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Canadians are more likely to watch online video and spend more time doing so than their American counterparts
Minutes per Viewer % Reach Total Population

1,769 74% 1,237 63%

Canada

United States

Canada

United States

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Source: comScore, Inc., Video Metrix, CA & US, Home & Work, Persons: 2+, Monthly Q4 2013 Average

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Canadians are consuming video content across categories, with viewer penetration over 30% in General News, TV and Retail
Unique Viewer Penetration in Canada General News
TV Retail 32.4% 29.3% 29.0% 22.9% 22.0% 16.7% 38.5% 38.4%

Entertainment - Music
Games Entertainment - Movies

Sports
Travel Family & Parenting

9.6%
9.4%

Health

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Source: comScore, Inc., Video Metrix, CA, Home & Work, Persons: 2+, Q4 2013 Average

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Canadian are watching a rapidly increasing amount of TV/Video on their mobile devices
Frequency of Watching TV/Video by Mobile Subscribers (000)
Dec-2012 Dec-2013

7,029

5,271

3,595 2,979 2,363 1,577 1,071

+33%
Ever in month

+21%
Once to three times a month

+50%
At least once a week

715 +50%

Almost every day

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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2012 Dec 2013

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Canadians are watching significantly more web-based video, including live/on-demand TV, than a year ago
Type of Videos Watched by Mobile Subscribers (000)
Dec-2013 Dec-2012

Watched Web-Based Videos

+34% 5,085

6,815

Watched TV (Live/On-Demand)

+34%

2,490 1,865

Watched Paid TV/Video

+41%

2,322 1,646

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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2012 Dec 2013

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Mobile Usage in Canada

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Mobile subscribers grew by 5% in Canada year over year to more than 23 million
Mobile Subscribers (000) in Canada

23,233
22,076

+5%

Dec-2012

Dec-2013

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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013 vs. Dec 2012

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Smartphones now reach 3 out of every 4 mobile users in Canada, an increase of 13 percentage points in the past year
Smartphone Market Penetration by Percent of Mobile Subscribers
Smartphone Feature Phone

25% 38%

+13 pts.

75%
62%

Dec-2012

Dec-2013

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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013 vs. Dec 2012

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Smartphone ownership in Canada skews significantly toward younger and higher income than feature phone ownership
Gender Age 52% 37% 12% 4%
18-34 35-54 55+

37%

32% 19%

8% 50% 45% 50% 55%

13-17

Smartphone Feature Phone Region Atlantic 7% British 7% Columbia Prairies Quebec 14% 19% Ontario 19% 14% 18% 41% 26% 35%
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Household Income (CAD)

39%
26% 20% 22%

37%
22%

17% 17%

Less than $50,000

$50,000 to $74,999

$75,000 to $99,999

$100,000 or more
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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013

Googles Android platform continues to capture share in the Canadian smartphone market, as it increased by 4 pts. year over year
Platform Market Penetration by Percent of Mobile Subscribers

20% 35% Dec 2012

37%

15% 2% 1%

2% 2%

Dec 2013

40%

44%

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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013 vs. Dec 2012

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Canadian smartphone subscribers with 4G connectivity grew by 274% year over year
Mobile Connectivity by Smartphone Subscribers (000)
Dec-2012 Dec-2013

+29% 17,243

13,418

+274% 5,850

1,563
3G Data Network 4G Data Network

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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013 vs. Dec 2012

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Mobile display sizes on smartphones are getting bigger as we see substantial growth year over year for 4.0 and greater
Mobile Display Size* Among Smartphone Owners (000)
Dec-2012 6,000 Dec-2013

-1% +95%

5,000

4,000

3,000

+112%
-27% -14% +664%

2,000

1,000

+9%
0

-49%

-8%

+323%

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*Measured diagonally Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013 vs. Dec 2012

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Canadian smartphone subscribers accessing social networking on their mobile device continues to grow
Frequency of Accessing Social Networking by Smartphone Subscribers (000)
Dec-2012 Dec-2013

10,443

8,338

5,989 4,862
2,750 1,374 1,704

2,102 +31%
At least once a week

+25%
Ever in month

+24%
Once to three times a month

+23%
Almost every day

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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013 vs. Dec 2012

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Canadians are using smartphones for a variety of shopping behaviors, including making mobile commerce transactions
Retail Activities on Smartphone via Application
Made Shopping Lists Found Store Location Found Coupons/Deals Purchased Goods/Services Checked Product Availability Used Deal-a-day/Group Shopping Compared Product Prices Researched Product Features

17%
10% 6% 6% 5% 5% 4% 4%

% Smartphone Subscribers
Retail Activities on Smartphone via Browser
Found Store Location Researched Product Features Compared Product Prices Checked Product Availability Found Coupons/Deals Purchased Goods/Services Used Deal-a-day/Group Shopping Made Shopping Lists

26%
19% 18% 17% 12% 11% 6% 5%
Proprietary. Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013

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Smartphone subscribers are more likely to own a tablet compared to feature phone subscribers
Tablet Ownership by % Subscribers
Feature Phone Subscribers Smartphone Subscribers

36%

23%

Tablet Ownership

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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013

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Canadian smartphone subscribers have a preference for owning the iPad vs. other tablets
Platform Market Penetration by Percent of Smartphone Subscribers who Own a Tablet
55%

37%

10% 2%
Apple OS Android OS BlackBerry OS Microsoft OS

1%
HP OS

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Source: comScore, Inc., TabLens Lite, CA, Persons: 13+, Dec 2013

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Second screen behaviour provides more engagement opportunities via the mobile channel for TV advertisers

30.8%
used their smartphone while watching TV

35.5%
used their tablet while watching TV

Smartphone + TV 30.8% of Canadian smartphone subscribers used their phone while watching TV

Tablet + TV 35.5% of Canadian smartphone subscribers who own tablets used their tablet while watching TV
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Source: comScore, Inc., MobiLens, CA, Persons: 13+, Dec 2013 Source: comScore, Inc., TabLens Lite, CA, Persons: 13+, Dec 2013

Multi-Platform: The Future of Digital

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New platforms are being adopted at increasingly higher rates

Tablet

PC/Mac

Smartphone

The digital experience is now scattered across a number of different devices and platforms, all of which demand high-quality, objective audience measurement.

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Device usage varies throughout the day with peak activity occurring at different times

CONTENT is
consumed
PCs
rule our days

Tablets

rule our evenings

across multiple
Smartphones
rule our mornings

DEVICES
by the same

PERSON
One Day
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In the United States, more than half of all digital time spent now comes from mobile devices
Share of Time Spent on Digital Media

Tablet 12%

Desktop 45%

Smartphone 43%

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Source: comScore, Inc., Media Metrix Multi-Platform, US, Jan 2014

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U.S. time spent consuming digital content has increased dramatically in past three years due to mobile platforms
Total U.S. Internet Usage in Minutes (Billions) by Platform:
Desktop Smartphone Tablet

124

442 11 131

401

429

Dec-2010

Dec-2013

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Source: comScore, Inc., Media Metrix Multi-Platform, US, Dec 2013 vs. Dec 2010

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Media Metrix Multi-Platform coming to Canada in Q3 2014!

Introducing

Media Metrix Multi-Platform

Desktop Audience

Video Audience Mobile Audience

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Summary & Implications

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Summary of Key Findings

Canadians continue to be among the heaviest users of digital media
Canada is #3 in desktop internet usage at 34.6 hours per month Canadians are the heaviest online searchers at 140 queries per month 74% of all Canadians watch online video; TV/video viewing on mobile also seeing huge gains 3 out of 4 Canadians own smartphones, well above the rates in U.S. and other developed markets

The digital ad sector in Canada shows its strength as its proves performance

Canada saw 615 billion display ad impressions in 2013, led by Financial and Retail advertisers
Social media publishers account for more than 1/3rd of all display ad impressions Campaign validation efforts are improving the ability to measure performance and optimize campaigns

Mobile is rapidly changing the Canadian digital media landscape

Increase in smartphone penetration and 4G connectivity is driving increased usage of mobile content, such as social media and retail Canadians are using their phones for shopping behavior and m-commerce buying

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Implications for the Future

The rapid shift to mobile means the future of marketing is multi-platform
Usage is shifting to mobile, but dollars are slower to follow. It will be important to both prove the value of mobile and adopt a more integrated view of media to navigate this paradigm shift.

How well businesses integrate mobile audience metrics into their holistic view of digital media will determine their ability to monetize and/or market efficiently.

Social Media will have a disproportionate influence on how the digital media industry evolves

Facebook, Twitter and Linkedin are paving the way for this sector and showing how media can generate ad dollars through mobile and native advertising
The Visual Web is also emerging with properties like Pinterest, Tumblr, Instagram and Snapchat showing how social is becoming a more visual medium, making it attractive to brands

The Canadian digital media sector is poised for further expansion as advertising measurement and mobile monetization improve
vCE and other forms of campaign validation are providing the metrics brands need to understand campaign performance and put digital on similar footing as TV Better metrics means better ability to optimize performance, which will continue to deliver confidence in brands considering investing more in digital

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Methodology

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Methodology
This report utilizes data from the comScore suite of products, including comScore Media Metrix, comScore Ad Metrix, comScore Video Metrix and comScore MobiLens.

comScore Media Metrix The comScore Media Metrix suite of syndicated products sets the standard for digital audience measurement and media planning. Powered by Unified Digital Measurement, the revolutionary measurement approach that bridges panel-based and website server-based metrics to account for 100 percent of a sites audience, Media Metrix delivers the most accurate and comprehensive suite of audience metrics, providing valuable demographic measures, such as age, gender, household income and household size. Media Metrix reports on more than 70,000 entities, with audience measurement for 43 individual countries and 6 global regions, as well as worldwide totals.

The comScore Media Metrix product suite includes individual products utilized within this report including comScore Ad Metrix and comScore Video Metrix.
http://www.comscore.com/Products/Audience_Analytics/MMX

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Methodology
comScore MobiLens comScore MobiLens provides market-wide insight into mobile digital media consumption, brand-level audience metrics, and details of device ownership and technology penetration. Using proprietary data collection methods, we survey nationally representative samples of mobile subscribers age 13+ in the U.S., UK, France, Germany, Spain, Italy, Canada, and Japan. The MobiLens sample is substantial enough to provide projected data for subsegments as small as 1 percent of mobile subscribers. For 2012, the estimated monthly survey completes utilized for this report are 5,500 mobile phone owners in Canada. For more information, please visit: http://www.comscore.com/Products/Audience_Analytics/MobiLens

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ABOUT COMSCORE
comScore, Inc. (NASDAQ: SCOR) is a global leader in digital measurement and analytics, delivering insights on web, mobile and TV consumer behaviour that enable clients to maximise the value of their digital investments. A preferred source of digital audience measurement, comScore offers a variety of on-demand software and custom services within its four analytics pillars: Audience Analytics, Advertising Analytics, Digital Business Analytics and Mobile Operator Analytics. By leveraging a world-class technology infrastructure, the comScore Census Network (CCN) captures trillions of digital interactions a month to power big data analytics on a global scale for its more than 2,000 clients, which include leading companies such as AOL, Baidu, BBC, Best Buy, Carat, Deutsche Bank, ESPN, France Telecom, Financial Times, Fox, LinkedIn, Microsoft, MediaCorp, Nestle, Starcom, Terra Networks, Universal McCann, Verizon, ViaMichelin and Yahoo!.

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#FutureinFocus

Canada Digital Future in Focus 2014

The 2013 Digital Year in Review & What It Means for the Year Ahead

Email: canada@comscore.com Media Requests: press@comscore.com

www.comscore.com
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@comScore

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