Transcript Streaming: Just How Big Is It?

Streaming: Just How Big Is It?
What You’ll Hear From Me Today
 comScore’s Research Approach and Methodology
 The Advertising Opportunity (“Imperative”)
 Size of the Internet Streaming Marketplace
Radio – Audio
Video
 Consumer Profiles
 Example of Streaming Engagement
 Summary and Next Steps
comScore Networks Confidential
Recognized for Outstanding Growth
and Innovation
America’s Fastest Growing Private Companies
comScore ranked 97th among the nation’s fastest growing
privately held firms.
November 2004
Marketing News
Honomichl Top 50
Fifth Fastest Growing Research Firm
Currently ranked the 30th largest U.S. research
firm – up ten spots from previous year.
June 2004
Top 100 Innovative Companies
Named one of the 100 companies that will shape
the next year in technology.
December 2004
Rising Star
Named one of only three “Rising Stars” among
Virginia-based technology companies.
October 2004
High Tech Award
Recognized as a technology leader for
successfully developing innovative products.
November 2004
World’s Largest Database
Grand prize winner for developing the
largest NT decision support warehouse.
December 2003
comScore Networks Confidential
comScore technology
Passive tracking of actual consumer streaming activity
 2.0 million member panel of online consumers
who have agreed to be continuously and
passively observed
 Proprietary technology collects all streaming
activity
 All data associated with streaming, including:
User/browser demographics
All streaming by ports
Complete URL/clickstream data, including referring URL
Streaming player type
Streaming data type (audio/video)
Streaming protocol used
Duration metrics
File sizes transmitted
comScore Networks Confidential
comScore
Panelists
comScore
Servers
World Wide Web
Dial-up is a Dying Breed
Source: comScore Marketing Solutions; U.S. Market
comScore Networks Confidential
Implications of the Death of Dial-up

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People consume more of everything
Broadband users spend an average of 84.1 minutes per day online –
Their narrowband counterparts spend 64.2 minutes
Almost 25% more time spent by broadband-connected people
Broadband users consume 222 billion pages per month – Narrowband
users consume 67 billion
Over three times as many pages consumed by broadband users
Broadband users do six times as many searches as narrowband users
Consumer touch-points increase
What we previously only did at Work, we can now do anywhere
Marketers can get more creative
E.g. VW films
comScore Networks Confidential
Creative Applications Abound …
comScore Networks Confidential
 Internet users watch 5 hours less TV per week
 Bill Gates believes that the CD is the last physical form of
music and the DVD the last for movies
 Apple’s iPods sold at an annualized rate of 26 million of in
the last quarter
 Itunes announced one million video downloads in 20 days
 IPTV market to grow at a compound annual growth rate of
78%, from 3.7 million subscribers this year, to 36.9 million
in 2009
 75% of national advertisers plan to cut spending on TV
commercials by at least 20 percent in the next five years
due to widespread ad-skipping devices
 Last month the Arctic Monkeys single reached #1 in the UK
– a band without a label, without a CD, without distribution
comScore Networks Confidential
In just over 10 years, global online advertising
has grown from zero to $19 Billion
It will more than quadruple in the next 10 ….
comScore Networks Confidential
50% of advertisers believe TV advertising will lose
effectiveness according to Forrester Research
$18,000
25%
Network Ad Revenues $(mm)
Network Prime Time Ratings
$16,000
20%
$14,000
$12,000
15%
$10,000
$8,000
10%
$6,000
$4,000
5%
$2,000
$0
0%
1970
1973
1976
1979
1982
1985
1988
1991
comScore Networks Confidential
1994
1997
2000
2003
“The future of advertising is
the Internet”
- Bill Gates 11/05
How Prevalent is Streamed Content?
 Percent of Internet users
who access streamed
content in an average
month:
A. 28%
B. 33%
C. 40%
D. 58%
E. 66%
It could easily be two-thirds by the end of the year.
Source: comScore Marketing Solutions; August 2005
comScore Networks Confidential
OVER 100 MILLION PEOPLE STREAMED THIS MONTH
OVER 100
MILLION
PEOPLE
STREAMED
THIS MONTH !!!
Source: comScore Marketing Solutions; August 2005; U.S. Market
 That’s equal to the entire population of Mexico
 That’s greater than the entire populations of 216
countries …
Source: U.S. Census Bureau, International Data Base. Data updated 4-26-2005
comScore Networks Confidential
 That’s equal to the entire population of Mexico
 That’s greater than the entire populations of 216
countries …
Source: U.S. Census Bureau, International Data Base. Data updated 4-26-2005
comScore Networks Confidential
Streaming Shows Seasonal Variability
As With Most Internet Activity
Source: comScore Marketing Solutions
comScore Networks Confidential
What About Internet Radio?

Number of Internet users who
listened to one of the leading
online radio stations in a
typical week in 2005:
A.
B.
C.
D.
E.
Under 2 Million
2 to 3 Million
3 to 5 Million
Lots and Lots
6.1367 Million
Source: comScore Arbitron Online Radio Ratings; Cume Listeners per Average Week (millions)
comScore Networks Confidential
Portals, Leaders In Terrestrial Radio, And Creative
New Applications Have All Gathered Strong Audiences
Source: comScore Arbitron Online Radio Ratings; Cume Listeners
comScore Networks Confidential
On Average, Radio Listeners Tune-In
For 9.8 Hours Per Week
Source: comScore Arbitron Online Radio Ratings; TSL
comScore Networks Confidential
The Internet Radio Listener is
Valuable
 People who listen to Internet Radio
tend to also spend more money
online:
Radio listeners are 60% more
likely to be online buyers.
Radio listeners spend an
average of $216 on other
eCommerce products online
every month!
Source: comScore Marketing Solutions; August 2005
comScore Networks Confidential
The Internet Radio Listener is
Valuable
 Predictably, Internet radio
listeners are twice as likely as
the average Internet users to
buy Consumer Electronics,
Music, Movies, Videos, Event
Tickets.
 But, they are also more likely
to be buyers of some less
obvious categories such as
Apparel, Travel, Books and
even Consumer Packaged
Goods.
Source: comScore Marketing Solutions; August 2005
comScore Networks Confidential
Video Content Networks are Exploding

Broadband Enterprises
number of Video Viewers …
and six-month growth rate:
A. 117%
March 2005
Source: comScore Online Video Ratings
comScore Networks Confidential
August 2005
Where are Consumers Getting Their
Content?
 Portals, given their leadership
position on the Web, also lead
the pack in terms of the place
where consumers turn to get
their video content.
Millions Of Consumers Who Streamed From This Type Of Site*
 Almost 50 million Internet
users streamed from an
Entertainment site; and Adult,
Music, and Retail categories
each reached around 15
million.
*Site Categories will overlap (e.g Yahoo! News is both Portal and News),
so some locations will be double-counted.
Source: comScore Marketing Solutions; August 2005
comScore Networks Confidential
…And How Much Do They Consume?
 Entertainment, Gaming and
Music show a high number of
streams consumed – 20 to 30
per month for the average
viewer.
*Site Categories will overlap (e.g Yahoo! News is both Portal and News),
so some locations will be double-counted.
Source: comScore Marketing Solutions; August 2005
comScore Networks Confidential
Number of Streams per Month, per User by Site Category*
So What Do These Consumers Look
Like … Demographically?
38% Female
62% Male
comScore Networks Confidential
Source: comScore Marketing Solutions; August 2005
From All Internet Locations
 8 in 10 people who use the
Internet from work consume some
type of streamed content, and over
half of all University Internet users
do so.
 Even 1 in 3 Internet users from
home see a stream, making that
audience almost 50 million
consumers!
Source: comScore Marketing Solutions; August 2005
comScore Networks Confidential
comScore Networks Confidential
Streaming Activity is Strong Among
The Valuable 35 to 49 Year-Old Group
Source: comScore Marketing Solutions; August 2005
comScore Networks Confidential
One in Five Streamers are Males Age
35 to 49 Years Old
Source: comScore Marketing Solutions; August 2005
comScore Networks Confidential
The Same Age Bracket Shows
Dominance for the Female Audience
Source: comScore Marketing Solutions; August 2005
comScore Networks Confidential
When Are They Doing It?
Source: comScore Marketing Solutions; August 2005
*Percent of the daypart’s audience that is reached by streaming in that daypart
comScore Networks Confidential
Let’s Discuss Some Examples of
Streamed Executions
comScore Networks Confidential
Over 15% Of The Total Viewing Audience For “Fat
Actress” Tuned-in To Watch It Online!
comScore Networks Confidential
Yahoo! Apprentice with Intel
 Apprentice content on Yahoo! IM Insider
 In-depth Apprentice content on Yahoo! TV
 Promotion on TV programming to visit the site,
mention of streaming clips
 Intel streamed ad at the initiation of the Yahoo!
Apprentice streamed clips and sponsorship on
the Yahoo! TV channel
comScore Networks Confidential
Yahoo! TV Channel Visitors Surged
With The Premier of “The Apprentice”
Apprentice Season
II Premier
Apprentice Season II
Source: comScore Media Metrix
comScore Networks Confidential
“The Apprentice” Streamers on Yahoo! Were
More Engaged with Yahoo! Overall
 Apprentice Visitors
and Streamers were
more engaged with
and loyal to Yahoo!
Search than the
average Yahoo! User
Source: comScore qSearch
comScore Networks Confidential
Those That Watched the Streams Were
More Engaged with Yahoo! Over Time

All Yahoo! Apprentice Visitors increased their visit frequency of the Yahoo!
Property during the month of their first visit and the two months following.

Yahoo! Apprentice Streamers visited slightly more often in the following months
than those who did not stream.
Source: comScore Marketing Solutions
September – December, 2004; Data is time-aligned based on the user’s first observed visit to Y! Apprentice during the period.
comScore Networks Confidential
They Consumed More of the Yahoo!
Site
 Apprentice Streamers consumed more Yahoo! channels in the
months of and after streaming than they did the month prior.
Source: comScore Marketing Solutions
September – December, 2004; Data is time-aligned based on the user’s first observed visit to Y! Apprentice during the period.
comScore Networks Confidential
… And They Kept Coming Back for
More

Yahoo! Apprentice Streamers were 50 to 100% more likely than Non-Streamers to return to Yahoo!
Apprentice following their initial visit.
Source: comScore Marketing Solutions
September – December, 2004; Data is time-aligned based on the user’s first observed visit to Y! Apprentice during the period.
comScore Networks Confidential
Yahoo! Reached a Very Valuable
Audience for Their Intel Client

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Y! Apprentice Streamers
28% make over $100k HH
income
53% Female / 47% Male
54% 1 - 2 Person
Households
Twice as likely at Average
Internet User to have at
least some college education
Spend $225 per person
online (vs. $160 for Average
User)
Spend 3X more on Computer
Hardware/Software and
Electronics (vs. Avg. User)
Source: comScore Streaming Report
comScore Networks Confidential
Let’s Recap …


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Streaming is a mainstream activity
It reaches a valuable advertising audience
Radio and Video are both strong
Preliminary evidence that the streaming audience is a
more loyal and voracious user of a site
comScore Networks Confidential
“State of the Streaming Market”
available on www.streamingmedia.com
 How many consumers are streaming online, and how is this
changing over time?
 How much streaming content are they consuming, and how
is this changing?
 How many streams and how many minutes of content are
being consumed per month, and is this growing?
 How much content is being delivered via streaming versus
download technologies? How many consumers are
consuming content delivered via each distinct method?
 What is the demographic composition of those viewing
video content on the Web?
comScore Networks Confidential
“State of the Streaming Market”
available on www.streamingmedia.com
 From what location (home, work, and university) are
consumers viewing and listening to streamed content?
 During what times of the day are people viewing streamed
content?
 What protocols are most prevalent for delivering streamed
content?
 What players are most prevalent for consuming streamed
content?
 Do consumers typically consume content through
embedded or standalone media players?
comScore Networks Confidential
Thank You!!
Questions?
[email protected]
(415) 828 2600
comScore Networks Confidential