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About this report

The 2017 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 unduplicated reporting of
digital audiences across desktop computers, smartphones and tablets; comScore Mobile Metrix, which provides unduplicated reporting of mobile
web and app audiences across both smartphones and tablets; and comScore Video Metrix Multi-Platform, which provides a single, unduplicated
measure of digital video consumption across smartphones, tablets, desktops and over-the-top (OTT) devices. The report also includes survey-based
mobile data from comScore MobiLens, search data from comScore qSearch, online retail spending data from comScore e-Commerce
Measurement, advertising measurement data from comScore validated Campaign Essentials (vCE) and comScore Brand Survey Lift
(BSL), as well as cross-platform data from comScore Xmedia, viewing data from comScores suite of TV and video-on-demand measurement
services and new connected home measurement via the comScore Total Home Panel.

Important Definitions:
Total Digital: The combination of desktop and mobile.
Mobile: The combination of smartphone and tablet. When data is referring specifically to smartphones or tablets, it will be labeled accordingly.
Unique visitor: A person who visits an app or digital media property at least once over the course of a month.
Pay-TV: Subscription-based television services that are delivered via a traditional cable, telco or satellite service operator.
Digital Video Recorder (DVR): An electronic device used to record live television and watch later. Viewing via a DVR is often referred to as time-shifted recorded viewing.
Video-on-Demand (VOD): Refers to video content that is made available via the traditional cable, telco or satellite service operators for on-demand viewing, as opposed to the regularly
scheduled live TV viewing or time-shifted DVR viewing.
Over-the-Top (OTT): Refers to video content that is transmitted via the internet to ones television set, instead of via the traditional cable, telco or satellite service operators.

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

comScore, Inc. Proprietary. 2


Table of Contents

Multi-Platform 4

Digital Media 9

Mobile 22

Social & Video Platforms 29

TV & Cross-Platform 39

Advertising 52

E-Commerce 58

Box Office 67

Key Takeaways 71

comScore, Inc. Proprietary. 3


Multi-Platform

comScore, Inc. Proprietary. 4


Smartphone usage has doubled in the past three years, and since
2014 its driven all of the growth in digital media time spent

Growth in Digital Media Time Spent in Minutes (MM)


Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Dec 2013 - Dec 2016

Desktop Smartphone Tablet Total digital media


1,600,000 usage is up 40%
since 2013, with
156,199 +26% mobile particularly
1,400,000 160,767 vs. 2013
197,446 smartphones
1,200,000 driving those gains.
Total Minutes (MM)

The smartphone
1,000,000 123,661 +99% has continued to
646,324 787,541 878,654 vs. 2013 expand on its role in
800,000 digital, even in just
441,693
the last two years,
600,000
as desktop and
400,000 tablets have both
-8% experienced modest
505,591 551,184 500,173 463,814
200,000 vs. 2013 declines in
engagement during
0 this period.
Dec-2013 Dec-2014 Dec-2015 Dec-2016

comScore, Inc. Proprietary. 5


Mobile media usage surpassed the 1 trillion monthly minute milestone
in March 2016 and continues to rise

Total Minutes (Billions) Spent on Mobile


Source: comScore Mobile Metrix, U.S., Age 18+, Dec 2013 Dec 2016

1,100
Mobile time spent
continues to
1,000 progress upward,
hitting a huge
900 milestone in
Total Minutes (Billions)

reaching an eye-
800 The average person popping level of one
spent trillion minutes of
2 hrs 51 min aggregate media
700 consumption per
per day on mobile
month in 2016. This
600 is nearly double
what desktop
500 internet usage
accounted for at its
peak.
400
Dec-2013 Jun-2014 Dec-2014 Jun-2015 Dec-2015 Jun-2016 Dec-2016

comScore, Inc. Proprietary. 6


Mobile now represents almost 7 in 10 digital media minutes, and
smartphone apps alone account for half of all digital time spent

Share of Digital Media Time Spent by Platform


Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Total Audience, Dec 2013 Dec 2016

75%
With desktop
+16pts Share of Digital Time Spent on MOBILE
70% 69% engagement
faltering in recent
65% years, it has lost
60% 60%
share to mobile
which now accounts
55%
53% +16pts Share of Digital Time Spent on MOBILE APP
for 69% of digital
51% media time spent.
50%
47%
Mobile apps now
45% drive 60% of digital
44%
+16pts Share of Digital Time Spent on SMARTPHONE APP time spent, and
40% smartphone apps
35% 35% alone currently
account for a
30% 31%
-16pts Share of Digital Time Spent on DESKTOP
majority of digital
media consumption.
25%
Dec-2013 Jun-2014 Dec-2014 Jun-2015 Dec-2015 Jun-2016 Dec-2016

comScore, Inc. Proprietary. 7


Nearly one in eight U.S. internet users are now mobile-only, with 18-
24 year-old women the highest skewing for this behavior

Mobile-Only Share of Digital Audience by Age Segment


Source: comScore Media Metrix Multi-Platform, U.S., Age 18+, Dec 2016

Male Female
The mobile-only
25% internet user is an
22% emerging group
within the digital
20%
media ecosystem.
16% Millennials are more
15% 14% likely to rely
12% 12% exclusively on their
11%
mobile devices, with
10%
the heaviest skews
occurring among
5%
college-aged adults
and females.

0%

Total Age 18+ Age 18-24 Age 25-34

comScore, Inc. Proprietary. 8


Digital Media

comScore, Inc. Proprietary. 9


Google Chrome continues to widen its market share lead for desktop
browser activity, capturing a majority share of all page views in 2016

Share of Desktop Browser Activity


Source: comScore Custom Analytics, U.S., Total Audience

+3pts Google Chrome Google Chrome


51%
50% gained three
48%
percentage points of
the desktop browser
Share of Desktop Page Views

40% market in the 2nd


half of 2016, now
30% with more than 50%
of all page views.
Microsofts Edge
20% 20% -3pts Internet Explorer 17% browser also saw
14%
gains, eating into
-2pts Firefox 12%
the share of
10% 10% 10%
-0pts Safari Microsofts Internet
6% 8%
+2pts Edge Explorer browser.
2% 2%
0%
Jun-2016 +0pts Other Dec-2016

comScore, Inc. Proprietary. 10


Microsofts search engine Bing has grown its desktop search market
share over the past year, but the market is for the most part stable

Desktop Explicit Core Search Share


Source: comScore qSearch, U.S., Q4 2016

1% 1% The desktop search


market has
12% stabilized in recent
years with share
shifts from year to
Google Sites year tending to be
Microsoft Sites relatively modest.
+1.4 pts
vs. year ago Yahoo! Sites Market leader
23% Ask Network Google remained
stable, but #2 player
AOL, Inc.
Microsoft Bing did
64% manage to grow its
share by more than
one percentage
point.

comScore, Inc. Proprietary. 11


Digital media audiences continue to grow on the back of mobile,
which is now 2x that of the average desktop audience

Growth in Top 1000 Digital Media Property Audiences


Source: comScore Media Metrix Multi-Platform, U.S., Dec 2013 Dec 2016

20.0
Over the past three
TOTAL DIGITAL
18.0 years, digital media
Average # of Unique Visitors by Platform (MM)

16.8 audiences of the


16.0
Top 1000 properties
14.0 MOBILE have surged to an
12.7 average 16.8 million
12.0 12.3
visitors per month,
10.0 up 38% in the past
three years. All of
8.0 8.1
that growth has
6.0
6.3 been due to mobile,
5.6
DESKTOP which jumped 127%
4.0 in that time, and is
2.0 now 2x that of the
Top 1000 desktop
0.0 audience.

comScore, Inc. Proprietary. 12


Digital is delivering audiences at scale, but the number of newly
emerging large-scale media properties is flattening

Number of Digital Media Properties Reaching Unique Visitor Thresholds


Source: comScore Media Metrix Multi-Platform, U.S., Dec 2016 / Dec 2015 / Dec 2014

20-50 MM 50+ MM While 2015 saw a


250 big jump in the
number of digital
+2% media properties
+20%
Number of Digital Media Properties

200 reaching large


64 65 audiences of 20+
150 million (+34), 2016
53 saw much more
+5%
+19% modest gains (+8).
100 Are we now nearing
a point of audience
142 149
119 maturity for digital
50 media properties?

0
Dec-2014 Dec-2015 Dec-2016

comScore, Inc. Proprietary. 13


For the Top 100 properties, incremental mobile audiences extend
their desktop audiences by a factor of 2.4x

Median Audience Sizes for the Top 100 Digital Media Properties
Source: comScore Media Metrix Multi-Platform, U.S., Dec 2013 - Dec 2016

Mobile audiences
2.2x 2.4x continue to be an
1.7x important
70,000 1.6x contributor to total
56,780 57,690 digital audience.
60,000
50,462 This year mobile
Unique Visitors (000)

50,000 45,180 helped boost the


40,000 audiences of the
28,382 29,214 Top 100 digital
30,000
25,762 24,053 media properties by
20,000 2.4x vs. desktop
alone, a multiple
10,000
that has grown
0 steadily in the past
Dec-2013 Dec-2014 Dec-2015 Dec-2016 few years.
Total Digital Desktop

comScore, Inc. Proprietary. 14


Google Sites, Facebook and Yahoo Sites remain the top digital
media properties and the only ones with 200+ MM visitors

Top Digital Properties: Unique Visitors (MM) by Platform


Source: comScore Media Metrix Multi-Platform, U.S., Dec 2016

Desktop Only Multi-Platform Mobile Only The average Top 10


0 50 100 150 200 250 300
digital media property
Google Sites 247 MM has 39% of its
audience visiting only
Facebook 209 MM on mobile and 34%
Yahoo Sites 206 MM visiting on both
mobile and desktop.
Microsoft Sites 190 MM For five of the Top 10,
a majority of their
Amazon Sites 189 MM digital media
Comcast NBCUniversal 164 MM audiences are
mobile-only visitors,
CBS Interactive 163 MM highlighting the
importance of mobile
AOL, Inc. 157 MM
as a primary
Apple Inc. 153 MM touchpoint for many
large digital media
Time Inc. Network (U.S) 129 MM companies.

comScore, Inc. Proprietary. 15


There were 21 digital media properties that reached at least 100
million U.S. visitors per month across 2016

Digital Media Properties By Audience Tier


Source: comScore Media Metrix Multi-Platform, U.S., Jan 2016 Dec 2016

300 After the big three,


the 2nd tier of digital
media properties
Avg. Monthly Unique Visitors (MM) for FY

250 consists of some of


200-250 MM UVs the most established
200
brands from the early
days of the internet
150-200 MM UVs and a couple large
150 TV publishers that
have built a huge
100-150 MM UVs following on digital
100 over the years. The
3rd tier consists of a
mix of legacy print
50
publishers, TV
networks, social
0
media sites and
Properties with 100-150 MM Properties with 150-200 MM Properties with 200-250 MM
others.
Unique Visitors Unique Visitors Unique Visitors

comScore, Inc. Proprietary. 16


A major digital media trend in 2016 was growth in news consumption
as the U.S. presidential election captivated Americans attention

Newspapers and Political News Categories: Total Minutes (MM)


Source: comScore Media Metrix Multi-Platform, U.S., Nov 2013 - Dec 2016

9,000
The U.S. presidential
8,000 election was the
+19% biggest news story of
FY 2016 vs.
7,000 FY 2015 the year, and digital
Newspaper Sites General
news sites posted
6,000 strong gains over the
Total Minutes (MM)

Election
Presidential course of its 18-
5,000
Primary month news cycle.
Elections
4,000 Interest reached its
+122% apex in November, as
3,000 FY 2016 vs. the general election
FY 2015
coverage resulted in
2,000
Political News Sites all-time highs in
readership for many
1,000
digital newspapers
0
and political news
destinations.

Dec-2015
Nov-2013
Dec-2013

Nov-2014
Dec-2014

Nov-2015

Nov-2016
Dec-2016
Sep-2014
Jan-2014

Jun-2014

Aug-2014

Jan-2015

Jun-2015

Aug-2015
Sep-2015
Oct-2015*

Jan-2016

Jun-2016

Aug-2016
Sep-2016
Mar-2014

May-2014

May-2015
Apr-2014

Jul-2014

Mar-2015
Apr-2015

Jul-2015

Mar-2016

May-2016
Apr-2016

Jul-2016
Feb-2014

Oct-2014

Feb-2015

Feb-2016

Oct-2016
* Total Minutes for the Newspapers category in October 2015 was recalculated to remove the impact of overstated data for an individual mobile news app that had a substantial
impact on topline category time spent.
** Newspapers and Political News are two sub-categories within the broader News/Information category and are not fully inclusive of all news properties. There is also a small amount
of duplication between the two sub-categories.
comScore, Inc. Proprietary. 17
Certain leading print and TV news brands saw huge digital audience
growth as consumers demanded election coverage
Y/Y Digital Audience Growth of Select Leading Print and TV News Organizations
Based on Average Monthly Unique Visitors for Full Year
Source: comScore Media Metrix Multi-Platform, U.S., Full Year 2016 / Full Year 2015

FY 2015 FY 2016 The New York Times,


120 Washington Post,
+35% CNN and Fox News
Avg. Monthly Unique Visitors (MM) for FY

100
were among the
news organizations
+36% +40% that had a huge year
80 in 2016 covering the
+20% U.S. Presidential
60 Election. While traffic
peaked in October
40
and November with
the NYT and WaPo
surpassing 100 MM
20 UVs for the first time
in their respective
0 histories traffic was
elevated throughout
much of the year.

comScore, Inc. Proprietary. 18


Facebook and Google own the Top 8 mobile apps and 10 of the Top
20, while Snapchat is the top app not owned by either company

Top 20 Mobile Apps by Unique Visitors (000) with Y/Y Growth


Source: comScore Mobile Metrix, U.S., Age 18+, December 2016
Y/Y %
Change

Facebook Facebook 155,726 15%


Google and
Facebook Messenger 136,853 25%
Google Facebook have
YouTube 130,548 22%
Everyone Else Google Search 114,791 40% strong app portfolios
Google Maps 101,951 23% that account for a
Instagram 90,129 36%
high percentage of
Gmail 89,480 19%
Google Play 89,447 9%
the top-ranked
Snapchat 82,098 114% apps. The two
Pandora Radio 79,634 3% companies own the
Amazon Mobile 73,321 9%
top eight positions
Google Calendar 64,685 N/A
Apple Music 62,647 0%
on the list, while
Apple Maps 53,930 4% Snapchat, Pandora
Pinterest 52,971 11% and Amazon are the
Google Drive 45,995 9% biggest apps from
Twitter 43,337 0%
Netflix 39,493 16%
outside that mix.
Spotify 37,889 34%
The Weather Channel 33,426 -15%

* Apple Music, as it appears in comScores monthly reporting, is referring to Apples native music app, which captures all music activity within that app,
including listening via the streaming service, radio service and users personally downloaded music libraries.. comScore, Inc. Proprietary. 19
Many of the fastest growing apps are services that improve existing
real-world behaviors, such as hailing cabs and paying cash to friends

Fast Rising Apps Unique Visitor Trend % Change


Source: comScore Mobile Metrix, U.S., Age 18+, Dec 2014 Dec 2016 vs. Dec 2014

Waze +260%
Apps like Waze, Uber
20 and Lyft are
Wish +336% improving the way we
Uber +443%
get around; Tinder
makes dating easier;
15 letgo +1,085%* Fitbit lets you to track
Unique Visitors (MM)

Bitmoji +5,210%*
your personal fitness
metrics and Venmo
OfferUp +1,213% makes it simple to
10 Tinder +166%
digitally transfer
money to friends.
GroupMe +101% Bitmoji, the fastest
Lyft +246%
growing app of this
5 select group, enables
Flipp +850% self-expression
Venmo +677%
through the use of
personal cartoon
0 avatars.
Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016

* letgos percent change figure represents its app audience growth from June 2015 to December 2016.
Bitmojis percent change figure represents its app audience growth from February 2015 to December 2016. comScore, Inc. Proprietary. 20
Pokmon GO was a mobile app phenomenon that quickly surged to
attract a huge audience but has since come back down to earth

Pokmon GO: Daily Unique Visitor Trend


Source: comScore Custom Analytics, U.S., Age 18+, Jul 2016 Dec 2016

28.5 Million Pokmon GO a


30 location-based
60% augmented reality
game launched on
25 of Pokmon July 6th, and in just a
Daily Unique Visitors (Millions)

Gos users are matter of days it was


20 consistently capturing
more than 20 million
18-34 year-old daily users. It peaked
15 Millennials at 28.5 million daily
users on July 13th
10 and, though
eventually tailing off,
provided an important
5 glimpse into the
potential of
0 augmented reality to
engage users.
7/1
7/7

8/4
8/8

9/1
9/5
9/9
7/11
7/15
7/19
7/23
7/27
7/31

8/12
8/16
8/20
8/24
8/28

9/13
9/17
9/21
9/25
9/29
10/3
10/7
10/11
10/15

11/4
11/8
10/19
10/23
10/27
10/31

11/12
11/16
11/20
11/24
11/28
12/2
12/6
12/10
12/14
12/18
12/22
12/26
12/30
comScore, Inc. Proprietary. 21
Mobile

comScore, Inc. Proprietary. 22


U.S. smartphone penetration eclipsed 80% in 2016, but growth is
slowing as market adoption concludes its late majority stage

Smartphone Penetration of Mobile Phone Market


Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2005 - 3 Mo. Avg. Ending Dec 2016

90% Since the end of


81% 2005, smartphone
79% penetration of the
80% 75%
mobile phone market
70% 65% has grown from next
to nothing to 81%.
60% Just five years ago
54% that penetration
50% figure was roughly
42% half of what it is today
40% at 42%. The
remaining
30% 27% uncaptured market is
mostly technology
17% laggards who dont
20% necessarily have a
11% high likelihood of
10%
3% 6% ever making the
2%
switch.
0%
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

comScore, Inc. Proprietary. 23


Smartphone penetration among Millennials is already near its
saturation point, while the oldest users still have room to grow

Smartphone Penetration by Age Segment


Source: comScore MobiLens, U.S., Age 18+, 3 Mo. Avg. Ending Dec 2016 / Dec 2015

Dec-2015 Dec-2016
Millennial
100% 94% 94% 94% smartphone
93% penetration has been
90% 84% 86% relatively flat since
79% 81%
80% 2015, which is
expected considering
70% it is already solidly
61% above 90%. The 55-
60%
58%
and-older segment
50% has the most room
for growth and
40%
experienced the
30% biggest bump with a
3-point increase in
20%
2016. Still, it will likely
10% be a slow climb to
reach 80 or 90%
0% penetration.
Total: Age 18+ Age 18-24 Age 25-34 Age 35-54 Age 55+

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 Platform Market Share: Long-Term Trend


Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2005 - 3 Mo. Avg. Ending Dec 2016

100%
Smartphone OS
90% market share has
80% shifted immensely
42% 43% 43% from its early years,
70% 36% 42%
but has remained
60% 30% HP/Palm relatively stable
50% Symbian since 2013. It now
BlackBerry
appears that the
40% 25% most popular device
Microsoft for accessing the
30%
53% 51% 53% 53% 54% iOS
47% internet will be
20% 25%
29% Android dominated by two
10% 17% major players
9% 5% software platforms
0% 1%
for the foreseeable
future.

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

Smartphone OEM Market Share: 3-Year Trend


Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2013 - 3 Mo. Avg. Ending Dec 2016
50%

45% Apple In the past three


42%
43% years, the U.S.
40% market share for
35% smartphone original
Samsung equipment
32%
30% 29%
manufacturers
26% 28%
25%
All Others
(OEMs) has seen
minor growth from
20%
Apple and Samsung
15% at the expense of
10% most others. Like
the smartphone
5%
software market, the
0% OEM market is
maturing in the U.S.

* 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. comScore, Inc. Proprietary. 26
iPhone owners were rapidly upgrading to the 6 models, until
September when the latest 7 models were introduced

Trend of U.S. Apple iPhone Users (MM) by Device Family


Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2014 - 3 Mo. Avg. Ending Dec 2016

90
Apples iPhone 3, 4,
5.1
80
7.1 and 5 models
6.4 9.1 11.6 13.6 14.4 7.5
3.7 15.8 3.0
collectively lost
Apple iPhone Users (MM)

70
7.9 nearly 42 million
14.9 20.6
60 24.0 15.0 users since 2014,
Apple iPhone 7 Plus
30.5 but more than made
36.0 Apple iPhone 7
50 37.6 that up by gaining
39.3 37.2 Apple iPhone SE 37 million new
40
39.0 33.4 Apple iPhone 6/6S Plus iPhone 6 and 6 Plus
38.7
30 37.0 Apple iPhone 6/6S users, and another
30.8 Apple iPhone 5/5S/5C
16 million users of
27.2
20
24.9 its latest SE, 7 and
22.1 Apple iPhone 3G/4/4S
24.2 17.8 7 Plus models.
10 19.2 15.4 12.1 9.7 8.0 6.1 5.0 4.1
0
Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016

comScore, Inc. Proprietary. 27


The smartphone market has transitioned heavily to large screen
models, which now outnumber small screen devices by 4x

Device Ownership by Smartphone Screen Size and Tablet


Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Sep 2014 - 3 Mo. Avg. Ending Dec 2016

180
More consumers
160 are adopting
4.5+
140
smartphones with a
4.5 display or
Device Owners (MM)

120 greater, while tablet


100 ownership growth
Tablet has pulled back in
80 recent years. This
60 correlation could be
<4.5 due to tablets and
40
larger screen
20 smartphones
sharing many of the
0
same use cases.

* 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. comScore, Inc. Proprietary. 28
Social &
Video Platforms

comScore, Inc. Proprietary. 29


Social media and video viewing are the two most popular online
activities, together accounting for more than a third of all internet time

Share of Total Digital Time Spent by Content Category


Source: comScore Media Metrix Multi-Platform, U.S., Total Audience, December 2016

All Other
16% Social Media leads
Social Media
Sports 20%
all categories in
2% engagement,
Lifestyles accounting for 1 out
2% of 5 minutes spent
Photos online. The next
2% largest categories
Instant Messengers
2%
being Multimedia,
Search/Navigation Multimedia Music and Games
3% 14% highlight that digital is
e-mail being increasingly
3% used for
News/Information entertainment now
3%
more so than ever
Directories/Resources with the rise of mobile
Entertainment - Music
4% and consumers need
Retail 11%
to make use of their
5%
Portals Games in-between time.
5% 8%

comScore, Inc. Proprietary. 30


The smartphone app is by far the most popular access point for social
media usage, with greater relative usage than the internet as a whole

Share of Time Spent on Social Media vs. Total Internet Across Different Platforms
Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Dec 2016

Desktop Smartphone App Smartphone Web Tablet App Tablet Web The vast majority of
social media
consumption (70%)
occurs on mobile
apps, driven largely
Total Internet 31% 51% 8% 9% 2% by smartphones.
The smartphone
app is the dominant
social platform in
+9 pts for Social Media the U.S., accounting
for 60% of all social
media time spent,
which is 9
Social Media 21% 60% 6% 10% 2% percentage points
greater than the
internet as a whole.

comScore, Inc. Proprietary. 31


Millennials use several social networks regularly, with Facebook
commanding the lead in both audience size and engagement

Age 18-34 Digital Audience Penetration vs. Engagement of Leading Social Networks
Source: comScore Media Metrix Multi-Platform, U.S., Dec 2016

1,200 After Facebook,


Snapchat has the
Average Monthly Minutes per Visitor

1,000 highest engagement


per visitor among
Millennials, just
800
slightly ahead of
Instagram which
600
is 2nd in terms of
penetration.
400 Millennials overall
have a more diverse
200 diet of social media
platforms they
0 engage with on a
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% regular basis.
% Reach Among Age 18-34

comScore, Inc. Proprietary. 32


The 35+ population also uses Facebook heavily, but doesnt spread
its attention across other networks to the extent Millennials do

Age 35+ Digital Audience Penetration vs. Engagement of Leading Social Networks
Source: comScore Media Metrix Multi-Platform, U.S., Dec 2016

1,200 Age 35+ users show


a higher relative
Average Monthly Minutes per Visitor

1,000 preference for


Facebook in relation
to other social
800
media platforms.
They do have high
600
penetration among
several others
400 beyond Facebook,
but they dont
200 engage with any
other platforms for
0 more than 100
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% minutes per month.
% Reach Among Age 35+

comScore, Inc. Proprietary. 33


While Facebooks users mirror the internet as a whole, Snapchat,
Instagram and Tumblr have a younger audience profile

Age Demographic Composition % of Major Social Networks


Source: comScore Media Metrix Multi-Platform, U.S., Age 18+, Dec 2016

100% 3.9 4.1


7.6 5.9 5.7 5.4 6.4
10.6 Snapchat is the
90% 14.9 12.4 youngest skewing
16.5 16.6 12.8
17.0 18.1
80% 17.5 social network with
13.5
15.4 14.0 more than half of its
70% 17.9 17.7
17.9 16.6 Age 65+ users between the
17.7
60% 16.6
17.1 ages of 18-34. Its
20.1 Age 55-64
demographic
50% 19.5 22.3 22.6 Age 45-54
18.5 21.3 composition is now
40% 24.9 Age 35-44 much more diverse
23.9
25.2 Age 25-34 in age than a year
30% 22.5
20.6 23.1 23.1 24.1 Age 18-24 ago, as adoption
20% among the 35+
28.5
10% 20.6
25.7 population has
15.0 17.7 14.7
13.1 13.3 improved.
0%

comScore, Inc. Proprietary. 34


Snapchat has rapidly gained adoption among Millennials and now
attracts most 18-24 year-olds and almost half of 25-34 year-olds

Snapchat Smartphone App Penetration by Age


Source: comScore Mobile Metrix, U.S., Age 18+, Dec 2013 Dec 2016

90%
Snapchats strength
80% Age 18-24
78%
among younger
demographics is
70% well-established and
is especially good at
60% reaching the
Age 25-34 coveted Millennials
% Reach

50% 48% demographic. With


a firm grasp on the
40%
38% college-age
30% segment, Snapchat
has made huge
20% gains in penetration
12%
older Millennials as
10% it gains more
mainstream market
0% adoption.
Dec-2013 Apr-2014 Aug-2014 Dec-2014 Apr-2015 Aug-2015 Dec-2015 Apr-2016 Aug-2016 Dec-2016

comScore, Inc. Proprietary. 35


Snapchat steadily climbed the app rankings to crack the Top 10 in
2016, as mobile video becomes a new communication medium

Snapchat Rank in Audience Penetration Among Smartphone Apps


Source: comScore Mobile Metrix, U.S., Age 18+, Dec 2015 - Dec 2016

Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016


0
Snapchats
continued gains in
2 adoption has led to
4 a steady increase in
its rank among the
Rank Among Smartphone Apps

6 top smartphone
8
10 9 apps. November
Top 10 11 2016 marked the
10
first month
12 13 13 13 12 12 Snapchat cracked
14 the Top 10, and it
14 15 followed that up by
16 17 17 jumping another
18 spot to #9 to close
18
out 2016.
20

comScore, Inc. Proprietary. 36


YouTube has also seen success with mobile video, with 7 out of 10
minutes of their viewing now happening on smartphones and tablets

YouTube Share of Time Spent by Digital Platform


Source: comScore Video Metrix Multi-Platform, U.S., December 2016

YouTube, which was


originally launched
Mobile Desktop in the desktop era,
has seen usage
shift heavily to
30% mobile in recent
years, with more
than 2x as much
viewing on mobile
than on desktop.
70% This disparity is
even more
pronounced among
18-49 year-olds and
women.

comScore, Inc. Proprietary. 37


Mobile YouTube viewing is shorter-form but much more frequent,
leading to 3x as many video views on mobile overall

YouTube: Engagement Metrics by Platform


Source: comScore Video Metrix Multi-Platform, U.S., December 2016

Average Monthly Minutes Average Minutes Average Monthly Videos


per Viewer per Video View Watched per Viewer Viewers tend to
watch longer videos
847 on desktop than on
mobile, but they
230 watch a lot more
videos overall on
mobile. The
portability and
4.7 accessibility of
355 mobile devices
3.7
allow for frequent
76 short-form video
viewing experiences
throughout the day.

Desktop Mobile Desktop Mobile Desktop Mobile

comScore, Inc. Proprietary. 38


TV &
Cross-Platform

comScore, Inc. Proprietary. 39


Live viewing still dominates total TV time, but time-shifted viewing is
more prevalent with primetime content

Share of Total TV Viewing Time: Live, DVR & VOD


Source: comScore TV Essentials, U.S., FY 2016, Live +15 Day DVR; comScore State of VOD Trend Report

100%
1.1% 0.8% Live TV still makes
90% 14.9% up the bulk of TV
24.6% viewing hours, but
80%
time-shifted viewing
Share of Total TV Viewing Time

70% on DVR accounts


for a significant
60%
Video-on-Demand (VOD) percentage of the
50% Digital Video Recorder (DVR) total viewing hours,
84.0% Live TV particularly for
40%
74.7% primetime content.
30% Video-on-demand
20%
(VOD) only
accounts for 1% of
10% TV viewing time.
0%
Total Viewing Primetime Content

* Total TV viewing includes live TV, DVR and VOD, and does not include streaming via over-the-top (OTT) services. comScore, Inc. Proprietary. 40
Theres a wide variance in time-shifted TV viewing by genre, with
News and Sports content still skewing heavily toward live viewing

Live TV and DVR Time Split by Genre


Source: comScore TV Essentials, U.S., FY 2016, Live +15 Day DVR

Live TV DVR +15 Days Not surprisingly, the


News and Sports
genres still see the
Drama 71% 29% vast majority of
viewing time
happening live since
Reality 75% 25% content relevance
declines quickly post-
event. Meanwhile,
Dramas have a much
Comedy 85% 15% higher percentage of
time-shifted viewing
since these programs
Movies 85% 15% tend to have week-to-
week storylines that
viewers want to keep
News 90% 10% current with, but dont
always need to watch
on the day and time
Sports 90% 10% they originally air.

comScore, Inc. Proprietary. 41


Time-shifted DVR usage is especially popular among genres with
dramatic, original programming

Genres with Highest Percentage of Time-Shifted DVR Viewing


Source: comScore TV Essentials, U.S., FY 2016, +15 Day DVR

Thriller/Horror 46% Genres with


ongoing storylines
Soap Opera 34% that viewers follow
week-to-week, or
Action/Adventure 31%
that require a full
Drama 29% episodes worth of
attention, see more
Reality 25% time-shifted viewing.
Science Fiction/Fantasy 25% This time-shifting
varies greatly even
Variety 18% within the Top 10,
Foreign Language with Thriller/Horror
17%
seeing nearly 3x
Documentary 16% more time-shifting
than Travel content.
Travel 16%

comScore, Inc. Proprietary. 42


Millennials and Gen Xers spend more time on digital media than
watching live TV, a sign of shifting media consumption dynamics

Hours Spent on Platform by Demographics


Source: comScore Xmedia (Custom) and Media Metrix Multi-Platform, U.S., Q4 2016

Live TV Desktop Mobile The younger


40.0 demographic
segments are more
35.0 likely to spend time
Total Hours (Billions)

on their mobile
30.0 device and less likely
to spend time
25.0 watching live TV. In
fact, Millennials
20.0 already spend more
23.1 18.5 37.0
time on mobile than
15.0 they do watching live
26.6
10.0
9.6 TV. It should be
19.1 noted, however, that
5.0 younger viewers are
6.9 8.9 6.8 likely watching more
0.0 TV via OTT services
and time-shifted via
Live TV Digital Live TV Digital Live TV Digital DVR and video-on-
demand (VOD).
Age 18-34 Age 35-54 Age 55+

* Time spent on desktop and mobile accounts for all content consumption on these devices (i.e. websites and apps),
not just digital video. comScore, Inc. Proprietary. 43
Nearly 1/3rd of the OTT audience is cordless and doesnt subscribe to
pay-TV, with half of those being streaming only households

Over-the-Top (OTT) Households by TV Service Type


Source: comScore Total Home Custom Reporting, U.S., December 2016

Although there are


many over-the-top
Streaming Only
households who
15.4% use these services
Cordless as a replacement
30.6% for pay-TV, more
Cable than two-thirds of
Streaming +
45.1% OTT households
Cordless Antenna use it as a
15.2%
supplement to their
cable or satellite
service package.
Only 15% of OTT
households depend
solely on this
content for all of
their TV viewing.
Satellite
24.3%

* Households that use an antenna in addition to their cable or satellite services are included in those respective shares. comScore, Inc. Proprietary. 44
Live TV, DVR and OTT all have the same primetime with viewing
peaking in the evening hours, though its most pronounced for DVR

Household Share of TV Viewing Type by Daypart


Source: comScore TV Essentials & Total Home Custom Reporting, U.S., December 2016
18.0%
The evening hours
16.0%
are primetime for all
14.0% types of TV viewing.
DVR sees the
12.0%
highest percentage
10.0% of consumption
during this time, as
8.0%
viewers save their
6.0% favorite programs
for the most
4.0% convenient time to
2.0% watch often that
window after dinner
0.0% and before bed. The
peak viewing hour
for all three is during
Live TV DVR +15 Over-the-Top (OTT)
the 9 PM hour.

comScore, Inc. Proprietary. 45


Households with both TV and OTT still watch more than 5 hours of
live TV for every one hour spent watching OTT content

Ratio of Live TV Viewing Hours per Hour of OTT Viewing in HHs with Both Services
Source: comScore Single-Source (TV + OTT) Custom Reporting, U.S., December 2016

Among households
that watch both
traditional television
OTT 1 Hour and OTT, live TV
still dominates total
viewing time. While
OTT has been
carving out more
viewing time in the
typical home, this
Live TV 5 Hours & 28 Minutes data suggests that
its supplemental
rather than primary
for homes with both
0 1 2 3 4 5 6 viewing options.
Viewing Hours

comScore, Inc. Proprietary. 46


In combined viewing households, even the heaviest OTT viewers
consume more than twice as much live TV content as OTT

Over-the-Top (OTT) and Live TV Time Split Among HHs with Both Services
Source: comScore Single-Source (TV + OTT) Custom Reporting, U.S., December 2016

100%
Among households
90% that watch
80%
traditional TV and
OTT content, even
70% Live TV the heaviest OTT
Share of Viewing Hours

69% OTT households still


60%
86% spend a lot more
50% 98% time watching live
40% TV. Despite the
availability of more
30% on-demand content
20% than ever before,
31% viewers still have a
10% tendency to watch
14%
0%
2% whats on.
Light OTT Viewers Medium OTT Viewers Heavy OTT Viewers
Heavy OTT = Top 20% segment of OTT viewers by duration
Medium OTT = Top 20-50% segment of OTT viewers by duration
Bottom OTT = Bottom 50% segment of OTT viewers by duration
comScore, Inc. Proprietary. 47
A variety of connected devices are now being used to watch OTT
content, with streaming boxes and sticks the most popular

Connected Home Devices: Penetration of U.S. Wi-Fi Households


Source: comScore Connected Home, U.S., December 2016

40% Households
. have
37%
several tech options
35%
31% for streaming over-
30% the-top TV content
27%
Penetration of U.S. Wi-Fi HHs

to their television
25% sets. Streaming
boxes/sticks, such
20%
as Roku devices,
15%
have the highest
household
10% 8% penetration, but
gaming consoles
5% and smart TVs are
other popular
0%
Streaming Box/Stick Gaming Console Connected TV Internet Blu-ray Player
options.

comScore, Inc. Proprietary. 48


Roku is the most popular box or stick for streaming video, but
Amazon, Google and Apple remain key players in this market

TV Streaming Boxes/Sticks: Penetration of U.S. Wi-Fi Households


Source: comScore Connected Home, U.S., December 2016

With
. streaming
boxes/sticks as the
18% most popular method
for streaming OTT
content, many of the
largest technology
companies are
12%
battling to be the
platform-of-choice for
8% consumers living
rooms. Despite the
5% competition from
huge tech companies
with deep wallets,
Roku is currently the
market leader.

* Rokus number includes Roku OS TVs, which account for a small percentage of its total penetration.
comScore, Inc. Proprietary. 49
Netflix leads the major over-the-top streaming services in both
household penetration and viewing engagement

Selected Over-the-Top (OTT) Streaming Services by Wi-Fi Household Penetration & Engagement
Source: comScore OTT Intelligence, U.S., December 2016

30
Netflix has the
highest household
Avg. Monthly Viewing Hrs. per HH

25 penetration and
viewing time per
20
month among the
major OTT content
services. Hulu isnt as
15 widely penetrated but
attracts comparable
10 viewing engagement
on a per-household
basis. YouTube and
5 Amazon are also in
the mix and have
0 solid positions in the
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% OTT market.
Wi-Fi Household Penetration

comScore, Inc. Proprietary. 50


Sling TV, a popular skinny bundle option, has seen adoption
quickly accelerate in OTT households in the second half of 2016

Sling TV Household Reach (Millions)


Source: comScore OTT Intelligence, U.S., 3 Mo. Avg. Ending Jul 2016 - 3 Mo. Avg. Ending Dec 2016

2.0 HHs watched 48 hours of


Sling TV,
Sling TV, which is a
1.8 the highest per-HH viewing less expensive, less
1.9
of any OTT service robust alternative to
1.6
1.7 cable, was being
used in nearly two
1.4 1.5 million households by
Total Households (Millions)

the end of 2016.


1.2
1.2 PlayStation Vue and
1.0 DirecTV Now are
1.0 similar services
0.8 offering live
streaming packages
0.6 0.7 of pay-TV channels,
in what will likely be
0.4
an increasingly
0.2 common trend to
attract cord-cutters
0.0 and cord-nevers.
Jul-2016 Aug-2016 Sep-2016 Oct-2016 Nov-2016 Dec-2016

comScore, Inc. Proprietary. 51


Advertising

comScore, Inc. Proprietary. 52


Nearly half of digital ad impressions cant have an impact because
theyre not viewable or not delivered to a human

Percentage of Viewable Desktop Ad Impressions in U.S.


Source: comScore vCE Benchmarks, U.S., Q4 2016

Nearly half of all


desktop ad
impressions are
6% unable to deliver an
advertising impact.
While most of these
Viewable non-viewable ads are
simply delivered to
parts of the web page
Non-viewable that are out of view, a
40% meaningful
54% percentage is being
Invalid Traffic (IVT)
delivered to bots and
other forms of invalid
traffic that is by
definition not
viewable to a human.

comScore, Inc. Proprietary. 53


Sophisticated IVT is the overwhelming majority of invalid ad traffic,
requiring advanced detection methods to combat this form of waste

Invalid Traffic (IVT) by Type


Source: comScore vCE (Custom), U.S., December 2016

General IVT Sophisticated IVT,


which according to
the Media Rating
11% Council (MRC)
includes traffic
originating from
hijacked devices,
malware or
misappropriated
content, accounts for
the vast majority of
invalid traffic.
Sophisticated IVT Sophisticated
detection techniques
89% are therefore required
for advertisers to
mitigate the potential
for waste.

comScore, Inc. Proprietary. 54


Directly bought digital display and video ad inventory is more
viewable and has a lower incidence of invalid traffic

Percentage of Viewable Ad Impressions & Invalid Traffic (IVT) Display vs. Video
Source: comScore vCE Benchmarks, U.S., Q4 2016

Direct Programmatic Direct ad buys and


display ads tend to
80% 12%
11% outperform
70%
70% programmatic buys
10%
60% and video ads,
60%
52% respectively, when it
% of Ad Impressions

% of Ad Impressions
8%
50% 47% comes to appearing
6% in view and being
40% 6%
5% seen by humans.
30% 4% Programmatic video
4%
20% ads are the most
2% susceptible to low
10%
rates of viewability
0% 0% and high rates of
Desktop Display Desktop Video Desktop Display Desktop Video invalid traffic.

% Viewable % Invalid Traffic


comScore, Inc. Proprietary. 55
Invalid traffic levels have been stable for display ads, but the
problem is growing for higher-CPM video ads

U.S. Desktop Invalid Traffic Comparison: Display vs. Video Norms


Source: comScore vCE Benchmarks, U.S., 2016

Display Video Given the higher


12.0% CPMs for video,
advertising on the
10.2% medium has
10.0% 9.3% become
8.5% 8.5% increasingly
8.0% susceptible to
% of Invalid Traffic

invalid traffic. This


6.0% 6.2% 6.1% will continue to be a
6.0%
5.8%
challenge for the
industry,
4.0% underscoring the
importance of
2.0%
sophisticated
detection
techniques.
0.0%

Q1 2016 Q2 2016 Q3 2016 Q4 2016

comScore, Inc. Proprietary. 56


Both desktop and mobile ads deliver branding effectiveness, but
mobile performs better particularly at the bottom of the funnel

Percentage Point Lift in Brand Metrics for Desktop and Mobile Ads
Source: comScore BSL and BSL Mobile Benchmarks, U.S., 2014 - 2016

Mobile ads caused


Desktop Mobile point lifts up to 3x
greater than ads on
desktop across four
2.0x
1.3 Aided awareness desktop
2.6 key brand metrics
and performed
especially strong in
middle and bottom-
2.2x
1.3 Favorability desktop
2.9 funnel metrics, such
as favorability, intent
to buy and likelihood
to recommend. Less
1.5 Likelihood to recommend 1.9x 2.8 ad clutter and
desktop
proximity to point of
purchase may be
driving better
1.3 Purchase Intent 3.1x 4.0 effectiveness for
desktop
mobile ads.

comScore, Inc. Proprietary. 57


E-Commerce

comScore, Inc. Proprietary. 58


By Q4 2016, total digital commerce had grown to account for more
than 1 out of every 6 discretionary retail dollars

Desktop & Mobile Digital Commerce Share of Corresponding Consumer Spending*


Source: U.S. Dept. of Commerce, comScore e-Commerce & m-Commerce Measurement, U.S., 2004 - 2016

18%
17%
15.0% 17.0% Digitals share of
(Q4 15) Q4 16
16% consumer
15%
discretionary
14%
13%
13.5% spending, which
12% Q4 16 peaks in seasonally
11% colder months,
10%
12.5% reached an all-time
9%
(Q4 15) high in Q4 2016 at
8%
7% 17%. Digital
6% commerce share
5%
4%
appears to be
Digital Commerce Share (desktop + mobile)
3% accelerating slightly
2% e-Commerce Share (desktop) in recent years due
1% to the impact of
0%
mobile.

*Note: e-Commerce share is shown as a percent of DOCs Total Retail Sales excluding Food Service & Drinking, Food & Bev. Stores,
Motor Vehicles & Parts, Gasoline Stations and Health & Personal Care Stores. comScore, Inc. Proprietary. 59
Boosted by a growing share of mobile, total digital commerce
surpassed the $100 billion mark in Q4 2016 for the first time

U.S. Quarterly Online Retail Spending by Platform


Source: comScore e-Commerce & m-Commerce Measurement, U.S., 2013 - 2016
$109.3
Billion
$120.0 Desktop Mobile While desktop
spending has
$100.0 $22.7
continued to grow
every year, mobile
$15.6 is now driving much
$80.0 $17.3
$10.7 $15.6 $16.9 of the growth and
Billions ($)

$8.3 $11.1 $11.1 $11.4


contributing an
$60.0 $7.3 $6.9 $6.7 increasing share of
$5.9 $4.7 $5.8 online discretionary
$40.0 $76.9
$86.6 retail sales. Mobile
$72.1
$63.1 $61.1 $59.8
$67.9 $69.9 $67.4 pushed digital
$56.1 $54.8 $58.3
$53.9
$50.2 $49.8 $47.5 commerce to its
$20.0
highest quarterly
total ever in Q4.
$-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016

comScore, Inc. Proprietary. 60


Mobile commerce growth rates far outpaced those of desktop
e-commerce and bricks-and-mortar in 2016

Full Year 2016 Y/Y Retail Spending Growth by Channel


Source: U.S. Dept. of Commerce, comScore M-Commerce and E-Commerce Measurement, U.S., FY 2016 / FY 2015

+50% +47% 2016 was a strong


+45% year for U.S.
discretionary retail,
+40% with e-commerce
contributing some of
+35%
the strongest gains.
+30% Mobile commerce,
which is still a
+25% smaller market than
+20% desktop and brick-
+14% and-mortar, saw the
+15% fastest growth rate
+10% at 47% -- far
+5% outpacing the two
+5% other primary retail
channels.
+0%
Total Discretionary Retail e-Commerce m-Commerce

comScore, Inc. Proprietary. 61


Mobile commerce continues to gain share of digital commerce,
surpassing the 20% mark in the second half of the year

Quarterly Trend in Mobile Commerce as a Share of Total Digital Commerce


Source: comScore M-Commerce and E-Commerce Measurement, U.S., Q2 2010 Q4 2016

M-commerce has
20.8% come a long way in
19.8% 20.0% the past 6 years and
18.6% now contributes
16.4%
16.9% about 1 in every 5
15.4% 15.6% dollars spent via
digital commerce.
13.0% 2016 saw a
11.3%
10.8%
11.7% 11.5%
11.1%11.1% continuation of the
9.8%
10.5%
platforms gains in its
9.3%
8.8% 9.0% 8.6% percent share of the
8.1%
total market, as
6.6%
5.8% consumers become
increasingly
3.6%
comfortable
2.4%
1.8% transacting on their
smartphones and
tablets.
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016

comScore, Inc. Proprietary. 62


However, in 2016, dollars still significantly lagged digital media time
spent on mobile, highlighting the mobile conversion challenge

2016 Share of Retail Time Spent vs. Spending by Platform


Source: comScore M-Commerce and E-Commerce Measurement, U.S., FY 2016

Mobile accounted for


67% of time spent
shopping online, but
only 20% of digital
retail spend in 2016.
33% Factors such as
security concerns
and smaller screen
size continue to add
friction to mobile
80% purchases. While this
47% m-commerce
67% Gap monetization gap will
narrow once mobiles
share of time spent
stabilizes, the two
Desktop 20% arent likely to ever
Mobile reach equilibrium.
Time Spent Dollars Spent

comScore, Inc. Proprietary. 63


Several e-commerce product categories grew more than 20% in 2016,
led by Jewelry & Watches and Furniture & Appliances

Y/Y % Change in Total Retail Digital Commerce Dollars by Category


Source: comScore E-Commerce and M-Commerce Measurement, U.S., FY 2016 vs. FY 2015

Jewelry & Watches 39% Online retail grew


Furniture, Appliances & Equipment 26% 19% year-over-year
Video Games, Consoles & Accessories
in 2016, with the
24% fastest growing
Flowers, Greetings & Misc Gifts 24% categories seeing
Event Tickets 24% most of their gains on
Computer Software 24% mobile. The fact that
Home & Garden 22% the top couple of
Music, Movies & Videos 21% product categories by
growth contain more
Apparel & Accessories 20% expensive and
Total Digital Commerce 19% complicated items
Office Supplies 18% shows that
Consumer Packaged Goods 17% consumers are
Sport & Fitness 17% becoming more
Toys & Hobbies 16% comfortable making
these types of
Consumer Electronics 16% purchases on their
Digital Content & Subscriptions 15% smartphones and
Computers / Peripherals / PDAs 15% tablets.
Books & Magazines 14%

comScore, Inc. Proprietary. 64


Apparel & Accessories is now the clear #1 product category online,
edging out Computer Hardware for the 2nd straight year

Digital Commerce Sales by Category: Apparel & Accessories vs. Computer Hardware
Source: comScore E-Commerce & M-Commerce Measurement, U.S., Q1 2013 Q4 2016

$25.0
Computer Hardware
was the longtime #1
$20.3
category in digital
$20.0 commerce, but
$17.2 Apparel &
COMPUTER HARDWARE $15.9 Accessories has
$14.0 $14.7 $18.2
$15.0 $13.5 $13.6 emerged over the last
$12.4 $16.0 few years to establish
Billions ($)

$11.8
$11.3 $15.0 $11.8 itself as the new #1.
$10.2 $10.0 $13.0
$9.9 $12.5 $12.9 Gains in mobile
$9.2 $9.1 $12.3
$10.0 $11.1 $11.0 commerce, along
$9.9 $10.0 $10.1
with consumers
$8.4 $8.4 $8.4 increasing comfort
$7.1
$5.0 with online returns,
APPAREL & ACCESSORIES have helped boost
the category to new
$0.0
heights.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016

comScore, Inc. Proprietary. 65


The 2016 holidays saw retail traffic peak on Black Friday and Cyber
Monday, with mobile outpacing desktop every day this season

2016 Holiday Season: Digital Retail Visits (MM) by Platform


Source: comScore Custom Analytics, U.S., Nov 1 Dec 31, 2016

1,200 Black Friday Cyber Monday


Mobile accounted
for 62% of all online
1,000 retail visits this
TOTAL DIGITAL holiday season and
800 outpaced desktop
Visits (MM)

every single day of


the season. Mobile
600
MOBILE
visits peaked on
Black Friday, while
400 desktop visits
peaked on Cyber
200 Monday, which saw
DESKTOP more overall retail
traffic than any
0 other day in 2016.
11/1/2016 11/8/2016 11/15/2016 11/22/2016 11/29/2016 12/6/2016 12/13/2016 12/20/2016 12/27/2016

comScore, Inc. Proprietary. 66


Box Office

comScore, Inc. Proprietary. 67


Disney led all film studios in 2016 market share, taking in more than
a quarter of the box office dollars on the strength of its franchises

North America Box Office Market Share by Film Studio in 2016 vs. Year Ago
Source: comScore Box Office Essentials, North America, FY 2016 vs. FY 2015

2015 2016 Disney had a huge


2016 at the box
10% 10% office, growing its
market share by 6
22% percentage points
6% Other 6% Other from a year ago.
26%
Warner Bros. and
Paramount also grew
6% 8% their market shares,
while Universal
couldnt quite match
its level of success
9% from 2015, boosted
8% by Jurassic World,
Furious 7 and
20% Minions. Overall, the
Big Seven major
17% studios took in more
13% 12% than 90% of the 2016
box office dollars.

14% 13%
comScore, Inc. Proprietary. 68
Finding Dory led the 2016 domestic box office as one of six Disney
films to rank in the Top 10

Top 10 Grossing Box Office Movies in 2016 ($ Millions)


Source: comScore Box Office Essentials, North America, Jan. 1 Dec. 31, 2016

Finding Dory $486.3 As was the case in


2015, the Top 10 in
Rogue One: A Star Wars Story* $408.2 2016 featured
mostly action
Captain America: Civil War $408.1 movies and
animated family-
Secret Life Of Pets, The $368.4 friendly films, with
Jungle Book, The $364.0
Disney distributing
four of the top five
Deadpool $363.1 films in 2016.
Disney Impressively, Star
Zootopia $341.3 Universal Wars: The Force
20th Century Fox Awakens cracked
Batman V Superman: Dawn Of Justice $330.4 Warner Bros. this past years Top
10 despite being
Suicide Squad $325.1
released in mid-
Star Wars: The Force Awakens $284.7 December 2015.

* Rogue One was released on December 16, 2016, and therefore was only in theaters the last two weeks of the year. comScore, Inc. Proprietary. 69
20th Century Fox had the top two digital movie rentals of 2016 with
Deadpool and The Martian

Top 20 Digital Movie Purchases & Rentals in 2016


Source: comScore Digital Download Essentials, U.S., Jan. 1 Dec. 31, 2016

RANK TITLE STUDIO


As was the case last
1 Deadpool (2016) Fox year, 20th Century
2 Martian, The (2015) Fox Fox was home to two
3 Zootopia (2016) Disney
of the biggest movies
4 Star Wars: Episode VII - The Force Awakens (2015) Disney
5 Batman V Superman: Dawn Of Justice (2016) Warner
in 2016 in terms of
6 The Hunger Games: Mockingjay - Part 2 (2015) Lionsgate total digital purchases
7 Revenant, The (2015) Fox and rentals. As with
8 Captain America: Civil War (Theatrical) Disney the top grossing box
9 Daddy's Home (2015) Paramount office movies, action
10 Suicide Squad (2016) Warner films tended to be
11 Intern, The (2015) Warner most popular among
12 Big Short, The (2015) Paramount audiences, even on
13 Finding Dory (2016) Disney the small screen,
14 13 Hours: The Secret Soldiers Of Benghazi (2016) Paramount but comedies and
15 Bridge Of Spies (2015) Disney sci-fi films also had
16 Sicario (2015) Lionsgate notable success this
17 Star Trek Beyond (2016) Paramount
year.
18 Hateful Eight, The Starz Entertainment
19 Central Intelligence (Unrated) (2016) Warner
20 X-Men: Apocalypse (2016) Fox

* Excludes NBC Universal and non-participating Independent distributors. EST revenue source: DEG
comScore, Inc. Proprietary. 70
Key Takeaways

comScore, Inc. Proprietary. 71


Key Themes for 2017

The Maturation of A Cross-Platform Advertising Gets Back


1 Mobile 2 Ecosystem Emerges 3 to the Basics

The U.S. smartphone market is nearing Digital media has gone cross-platform, and Todays media environment is fragmented,
saturation and the tablet market has flattened. more devices than ever before are being used messy and complex. Siloed platforms,
Advances in device technology are now to access content inside the home. varying ad formats, and disparate buying and
growing incrementally rather than by leaps selling processes all add friction that inhibit
Desktop and mobile media usage are
and bounds. coordinated marketing strategies.
converging with traditional TV and OTT, as
While mobile now dominates digital media consumers watch their favorite content through Issues of digital ad viewability and fraud only
usage, consumption is beginning to stabilize any number of devices, including smart TVs, add to the confusion, erode trust, and distract
and the days of huge growth are over. Digital streaming boxes and gaming consoles. from how advertising performance ought to
media audiences are in the latter stages of a be measured.
The cross-platform era will be defined by a
multi-year boom.
media-agnostic view of the consumer and Ad measurement is finally getting back to
Consumer usage trends always shift faster comparable metrics to facilitate efficient media basics with a return to the metrics that matter
than dollars, but now is the time for the planning, buying and selling. reach, frequency, impressions,
economics to catch-up with behavior. This will demographics which are every bit as
be enabled by better measurement, improved relevant today as they have ever been. But
industry standards and less friction in running they are also getting more advanced, with the
mobile ad campaigns. ability to go deeper on audience descriptors
and tying to behavioral outcomes.

comScore, Inc. Proprietary. 72


For more information
about comScore and its
measurement products,
please visit:
comscore.com/learnmore

For more information about the report, please contact:


ANDREW LIPSMAN,
VP Marketing & Insights
alipsman@comscore.com
ADAM LELLA,
Senior Marketing Insights Analyst
alella@comscore.com

@comscore comScore, Inc. comScore, Inc.

comscore.com

comScore, Inc. Proprietary. 73


For info about the proprietary technology used in comScore products, refer to http://www.comscore.com/About-comScore/Patents 2017 comScore, Inc.

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