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1 For info about the proprietary technology used in comscore products, refer to Will have new cover

2 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 comscore s 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 one s 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

3 Table of Contents Multi-Platform Digital Media Mobile Social & Video Platforms TV & Cross-Platform Advertising E-Commerce Box Office Key Takeaways comscore, Inc. Proprietary. 3

4 Multi-Platform comscore, Inc. Proprietary. 4

5 Total Minutes (MM) Smartphone usage has doubled in the past three years, and since 2014 it s 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 Dec ,600,000 1,400,000 1,200,000 1,000, , , , ,000 0 Desktop Smartphone Tablet 156, , , , , , , , , , , ,814 Dec-2013 Dec-2014 Dec-2015 Dec % vs % vs % vs Total digital media usage is up 40% since 2013, with mobile particularly smartphones driving those gains. The smartphone has continued to expand on its role in digital, even in just the last two years, as desktop and tablets have both experienced modest declines in engagement during this period. comscore, Inc. Proprietary. 5

6 Total Minutes (Billions) 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 ,100 1, The average person spent 2 hrs 51 min per day on mobile 400 Dec-2013 Jun-2014 Dec-2014 Jun-2015 Dec-2015 Jun-2016 Dec-2016 Mobile time spent continues to progress upward, hitting a huge milestone in reaching an eyepopping level of one trillion minutes of aggregate media consumption per month in This is nearly double what desktop internet usage accounted for at its peak. comscore, Inc. Proprietary. 6

7 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 % 70% 65% 60% 55% 50% 45% 40% 35% 30% 53% 47% 44% 35% +16pts Share of Digital Time Spent on MOBILE +16pts Share of Digital Time Spent on MOBILE APP +16pts Share of Digital Time Spent on SMARTPHONE APP -16pts Share of Digital Time Spent on DESKTOP 25% Dec-2013 Jun-2014 Dec-2014 Jun-2015 Dec-2015 Jun-2016 Dec % 60% 51% 31% With desktop engagement faltering in recent years, it has lost share to mobile which now accounts for 69% of digital media time spent. Mobile apps now drive 60% of digital time spent, and smartphone apps alone currently account for a majority of digital media consumption. comscore, Inc. Proprietary. 7

8 Nearly one in eight U.S. internet users are now mobile-only, with 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 % 20% 15% 10% 5% 11% 12% Male 16% Female 22% 12% 14% The mobile-only internet user is an emerging group within the digital media ecosystem. Millennials are more likely to rely exclusively on their mobile devices, with the heaviest skews occurring among college-aged adults and females. 0% Total Age 18+ Age Age comscore, Inc. Proprietary. 8

9 Digital Media comscore, Inc. Proprietary. 9

10 Share of Desktop Page Views 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 50% 40% 30% 20% 10% 0% 48% Jun pts Google Chrome 20% -3pts Internet Explorer 14% 10% 6% 2% -0pts Safari +0pts -2pts +2pts Other Firefox Edge 51% 17% 12% 10% 8% 2% Dec-2016 Google Chrome gained three percentage points of the desktop browser market in the 2 nd half of 2016, now with more than 50% of all page views. Microsoft s Edge browser also saw gains, eating into the share of Microsoft s Internet Explorer browser. comscore, Inc. Proprietary. 10

11 Microsoft s 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., Q pts vs. year ago 23% 12% 1% 1% 64% Google Sites Microsoft Sites Yahoo! Sites Ask Network AOL, Inc. The desktop search market has stabilized in recent years with share shifts from year to year tending to be relatively modest. Market leader Google remained stable, but #2 player Microsoft Bing did manage to grow its share by more than one percentage point. comscore, Inc. Proprietary. 11

12 Average # of Unique Visitors by Platform (MM) 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 TOTAL DIGITAL MOBILE DESKTOP Over the past three years, digital media audiences of the Top 1000 properties have surged to an average 16.8 million visitors per month, up 38% in the past three years. All of that growth has been due to mobile, which jumped 127% in that time, and is now 2x that of the Top 1000 desktop audience. comscore, Inc. Proprietary. 12

13 Number of Digital Media Properties 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 MM 50+ MM +2% +20% % +19% While 2015 saw a big jump in the number of digital media properties reaching large audiences of 20+ million (+34), 2016 saw much more modest gains (+8). Are we now nearing a point of audience maturity for digital media properties? 0 Dec-2014 Dec-2015 Dec-2016 comscore, Inc. Proprietary. 13

14 Unique Visitors (000) 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 Dec ,000 60,000 50,000 40,000 30,000 20,000 10, x 2.4x 1.7x 1.6x 56,780 57,690 50,462 45,180 28,382 29,214 25,762 24,053 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Mobile audiences continue to be an important contributor to total digital audience. This year mobile helped boost the audiences of the Top 100 digital media properties by 2.4x vs. desktop alone, a multiple that has grown steadily in the past few years. Total Digital Desktop comscore, Inc. Proprietary. 14

15 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 Google Sites Facebook Yahoo Sites Microsoft Sites Amazon Sites Comcast NBCUniversal CBS Interactive AOL, Inc. Apple Inc. Time Inc. Network (U.S) Desktop Only Multi-Platform Mobile Only MM 209 MM 206 MM 190 MM 189 MM 164 MM 163 MM 157 MM 153 MM 129 MM The average Top 10 digital media property has 39% of its audience visiting only on mobile and 34% visiting on both mobile and desktop. For five of the Top 10, a majority of their digital media audiences are mobile-only visitors, highlighting the importance of mobile as a primary touchpoint for many large digital media companies. comscore, Inc. Proprietary. 15

16 Avg. Monthly Unique Visitors (MM) for FY 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 MM UVs Properties with MM Unique Visitors MM UVs Properties with MM Unique Visitors MM UVs Properties with MM Unique Visitors After the big three, the 2 nd tier of digital media properties consists of some of the most established brands from the early days of the internet and a couple large TV publishers that have built a huge following on digital over the years. The 3 rd tier consists of a mix of legacy print publishers, TV networks, social media sites and others. comscore, Inc. Proprietary. 16

17 Nov-2013 Dec-2013 Jan-2014 Feb-2014 Mar-2014 Apr-2014 May-2014 Jun-2014 Jul-2014 Aug-2014 Sep-2014 Oct-2014 Nov-2014 Dec-2014 Jan-2015 Feb-2015 Mar-2015 Apr-2015 May-2015 Jun-2015 Jul-2015 Aug-2015 Sep-2015 Oct-2015* Nov-2015 Dec-2015 Jan-2016 Feb-2016 Mar-2016 Apr-2016 May-2016 Jun-2016 Jul-2016 Aug-2016 Sep-2016 Oct-2016 Nov-2016 Dec-2016 Total Minutes (MM) 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 Dec ,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Newspaper Sites Political News Sites Presidential Primary Elections General Election +19% FY 2016 vs. FY % FY 2016 vs. FY 2015 The U.S. presidential election was the biggest news story of the year, and digital news sites posted strong gains over the course of its 18- month news cycle. Interest reached its apex in November, as the general election coverage resulted in all-time highs in readership for many digital newspapers and political news destinations. * 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

18 Avg. Monthly Unique Visitors (MM) for FY 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 % FY 2015 FY % +35% +20% The New York Times, Washington Post, CNN and Fox News were among the news organizations that had a huge year in 2016 covering the U.S. Presidential Election. While traffic peaked in October and November with the NYT and WaPo surpassing 100 MM UVs for the first time in their respective histories traffic was elevated throughout much of the year. comscore, Inc. Proprietary. 18

19 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 Google Everyone Else Facebook Facebook Messenger YouTube Google Search Google Maps Instagram Gmail Google Play Snapchat Pandora Radio Amazon Mobile Google Calendar Apple Music Apple Maps Pinterest Google Drive Twitter Netflix Spotify The Weather Channel 45,995 43,337 39,493 37,889 33,426 53,930 52,971 64,685 62,647 73,321 82,098 79,634 90,129 89,480 89, , , , , ,726 15% 25% 22% 40% 23% 36% 19% 9% 114% 3% 9% N/A 0% 4% 11% 9% 0% 16% 34% -15% Google and Facebook have strong app portfolios that account for a high percentage of the top-ranked apps. The two companies own the top eight positions on the list, while Snapchat, Pandora and Amazon are the biggest apps from outside that mix. * Apple Music, as it appears in comscore s monthly reporting, is referring to Apple s 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

20 Unique Visitors (MM) 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 Source: comscore Mobile Metrix, U.S., Age 18+, Dec 2014 Dec 2016 % Change vs. Dec Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016 Waze Wish Uber letgo Bitmoji OfferUp Tinder GroupMe Lyft Flipp Venmo +260% +336% +443% +1,085%* +5,210%* +1,213% +166% +101% +246% +850% +677% Apps like Waze, Uber and Lyft are improving the way we get around; Tinder makes dating easier; Fitbit lets you to track your personal fitness metrics and Venmo makes it simple to digitally transfer money to friends. Bitmoji, the fastest growing app of this select group, enables self-expression through the use of personal cartoon avatars. * letgo s percent change figure represents its app audience growth from June 2015 to December Bitmoji s percent change figure represents its app audience growth from February 2015 to December comscore, Inc. Proprietary. 20

21 7/1 7/7 7/11 7/15 7/19 7/23 7/27 7/31 8/4 8/8 8/12 8/16 8/20 8/24 8/28 9/1 9/5 9/9 9/13 9/17 9/21 9/25 9/29 10/3 10/7 10/11 10/15 10/19 10/23 10/27 10/31 11/4 11/8 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 Daily Unique Visitors (Millions) Pokémon GO was a mobile app phenomenon that quickly surged to attract a huge audience but has since come back down to earth Pokémon GO: Daily Unique Visitor Trend Source: comscore Custom Analytics, U.S., Age 18+, Jul 2016 Dec Million 60% of Pokémon Go s users are year-old Millennials Pokémon GO a location-based augmented reality game launched on July 6 th, and in just a matter of days it was consistently capturing more than 20 million daily users. It peaked at 28.5 million daily users on July 13 th and, though eventually tailing off, provided an important glimpse into the potential of augmented reality to engage users. comscore, Inc. Proprietary. 21

22 Mobile comscore, Inc. Proprietary. 22

23 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 Mo. Avg. Ending Dec % 80% 70% 60% 50% 40% 30% 20% 10% 0% 2% 3% Dec 2005 Dec % Dec % Dec % Dec % Dec % Dec % Dec % Dec % Dec % 81% Dec 2015 Dec 2016 Since the end of 2005, smartphone penetration of the mobile phone market has grown from next to nothing to 81%. Just five years ago that penetration figure was roughly half of what it is today at 42%. The remaining uncaptured market is mostly technology laggards who don t necessarily have a high likelihood of ever making the switch. comscore, Inc. Proprietary. 23

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

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

26 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 Mo. Avg. Ending Dec % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 42% 32% 26% Apple Samsung All Others 43% 29% 28% In the past three years, the U.S. market share for smartphone original equipment manufacturers (OEMs) has seen minor growth from Apple and Samsung at the expense of most others. Like the smartphone software market, the OEM market is maturing in the U.S. * 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

27 Apple iphone Users (MM) 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 Mo. Avg. Ending Dec Apple iphone 7 Plus Apple iphone 7 Apple iphone SE Apple iphone 6/6S Plus Apple iphone 6/6S Apple iphone 5/5S/5C Apple iphone 3G/4/4S Apple s iphone 3, 4, and 5 models collectively lost nearly 42 million users since 2014, but more than made that up by gaining 37 million new iphone 6 and 6 Plus users, and another 16 million users of its latest SE, 7 and 7 Plus models. 0 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016 comscore, Inc. Proprietary. 27

28 Device Owners (MM) 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 Mo. Avg. Ending Dec Tablet <4.5 More consumers are adopting smartphones with a 4.5 display or greater, while tablet ownership growth has pulled back in recent years. This correlation could be due to tablets and larger screen smartphones sharing many of the 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

29 Social & Video Platforms comscore, Inc. Proprietary. 29

30 Social media and video viewing are the two most popular online activities, together accounting for more than a third of all internet time Sports 2% Lifestyles 2% Photos 2% Instant Messengers 2% Search/Navigation 3% 3% News/Information 3% Share of Total Digital Time Spent by Content Category Source: comscore Media Metrix Multi-Platform, U.S., Total Audience, December 2016 All Other Directories/Resources 4% Retail 5% 16% Social Media leads Social Media all categories in 20% engagement, accounting for 1 out of 5 minutes spent online. The next largest categories being Multimedia, Multimedia Music and Games 14% highlight that digital is being increasingly used for entertainment now more so than ever with the rise of mobile Entertainment - Music and consumers need 11% to make use of their in-between time. Portals 5% Games 8% comscore, Inc. Proprietary. 30

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

32 Average Monthly Minutes per Visitor Millennials use several social networks regularly, with Facebook commanding the lead in both audience size and engagement Age Digital Audience Penetration vs. Engagement of Leading Social Networks Source: comscore Media Metrix Multi-Platform, U.S., Dec ,200 1, % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % Reach Among Age After Facebook, Snapchat has the highest engagement per visitor among Millennials, just slightly ahead of Instagram which is 2 nd in terms of penetration. Millennials overall have a more diverse diet of social media platforms they engage with on a regular basis. comscore, Inc. Proprietary. 32

33 Average Monthly Minutes per Visitor The 35+ population also uses Facebook heavily, but doesn t 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 ,200 1, % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % Reach Among Age 35+ Age 35+ users show a higher relative preference for Facebook in relation to other social media platforms. They do have high penetration among several others beyond Facebook, but they don t engage with any other platforms for more than 100 minutes per month. comscore, Inc. Proprietary. 33

34 While Facebook s 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 % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Age 65+ Age Age Age Age Age Snapchat is the youngest skewing social network with more than half of its users between the ages of It s demographic composition is now much more diverse in age than a year ago, as adoption among the 35+ population has improved. comscore, Inc. Proprietary. 34

35 % Reach Snapchat has rapidly gained adoption among Millennials and now attracts most year-olds and almost half of year-olds Snapchat Smartphone App Penetration by Age Source: comscore Mobile Metrix, U.S., Age 18+, Dec 2013 Dec % 80% 70% 60% 50% 40% 30% 20% 10% Age Age % 38% 12% 0% Dec-2013 Apr-2014 Aug-2014 Dec-2014 Apr-2015 Aug-2015 Dec-2015 Apr-2016 Aug-2016 Dec % Snapchat s strength among younger demographics is well-established and is especially good at reaching the coveted Millennials demographic. With a firm grasp on the college-age segment, Snapchat has made huge gains in penetration older Millennials as it gains more mainstream market adoption. comscore, Inc. Proprietary. 35

36 Rank Among Smartphone Apps 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 Dec Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016 Top Snapchat s continued gains in adoption has led to a steady increase in its rank among the top smartphone apps. November 2016 marked the first month Snapchat cracked the Top 10, and it followed that up by jumping another spot to #9 to close out comscore, Inc. Proprietary. 36

37 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 Mobile 70% 30% Desktop YouTube, which was originally launched in the desktop era, has seen usage shift heavily to mobile in recent years, with more than 2x as much viewing on mobile than on desktop. This disparity is even more pronounced among year-olds and women. comscore, Inc. Proprietary. 37

38 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 per Viewer Average Minutes per Video View 3.7 Average Monthly Videos Watched per Viewer Viewers tend to watch longer videos on desktop than on mobile, but they watch a lot more videos overall on mobile. The portability and accessibility of mobile devices allow for frequent short-form video viewing experiences throughout the day. Desktop Mobile Desktop Mobile Desktop Mobile comscore, Inc. Proprietary. 38

39 TV & Cross-Platform comscore, Inc. Proprietary. 39

40 Share of Total TV Viewing Time 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% 90% 80% 70% 60% 50% 40% 30% 20% 10% 1.1% 0.8% 14.9% 24.6% 84.0% 74.7% Video-on-Demand (VOD) Digital Video Recorder (DVR) Live TV Live TV still makes up the bulk of TV viewing hours, but time-shifted viewing on DVR accounts for a significant percentage of the total viewing hours, particularly for primetime content. Video-on-demand (VOD) only accounts for 1% of 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

41 There s 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 Drama Reality Comedy Movies News Sports Live TV DVR +15 Days 71% 75% 85% 85% 90% 90% 29% 25% 15% 15% 10% 10% Not surprisingly, the News and Sports genres still see the vast majority of viewing time happening live since content relevance declines quickly postevent. Meanwhile, Dramas have a much higher percentage of time-shifted viewing since these programs tend to have week-toweek storylines that viewers want to keep current with, but don t always need to watch on the day and time they originally air. comscore, Inc. Proprietary. 41

42 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 Soap Opera Action/Adventure Drama Reality Science Fiction/Fantasy Variety Foreign Language Documentary Travel 18% 17% 16% 16% 25% 25% 29% 31% 34% 46% Genres with ongoing storylines that viewers follow week-to-week, or that require a full episode s worth of attention, see more time-shifted viewing. This time-shifting varies greatly even within the Top 10, with Thriller/Horror seeing nearly 3x more time-shifting than Travel content. comscore, Inc. Proprietary. 42

43 Total Hours (Billions) 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., Q Live TV Desktop Mobile Live TV Digital Live TV Digital Live TV Digital Age Age Age 55+ The younger demographic segments are more likely to spend time on their mobile device and less likely to spend time watching live TV. In fact, Millennials already spend more time on mobile than they do watching live TV. It should be noted, however, that younger viewers are likely watching more TV via OTT services and time-shifted via DVR and video-ondemand (VOD). * 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

44 Nearly 1/3 rd of the OTT audience is cordless and doesn t 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 Cordless 30.6% Streaming + Cordless Antenna 15.2% Satellite 24.3% Streaming Only 15.4% Cable 45.1% Although there are many over-the-top households who use these services as a replacement for pay-tv, more than two-thirds of OTT households use it as a supplement to their cable or satellite service package. Only 15% of OTT households depend solely on this content for all of their TV viewing. * Households that use an antenna in addition to their cable or satellite services are included in those respective shares. comscore, Inc. Proprietary. 44

45 Live TV, DVR and OTT all have the same primetime with viewing peaking in the evening hours, though it s most pronounced for DVR 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Household Share of TV Viewing Type by Daypart Source: comscore TV Essentials & Total Home Custom Reporting, U.S., December 2016 Live TV DVR +15 Over-the-Top (OTT) The evening hours are primetime for all types of TV viewing. DVR sees the highest percentage of consumption during this time, as viewers save their favorite programs for the most convenient time to watch often that window after dinner and before bed. The peak viewing hour for all three is during the 9 PM hour. comscore, Inc. Proprietary. 45

46 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 OTT Live TV 1 Hour 5 Hours & 28 Minutes Viewing Hours Among households that watch both traditional television and OTT, live TV still dominates total viewing time. While OTT has been carving out more viewing time in the typical home, this data suggests that it s supplemental rather than primary for homes with both viewing options. comscore, Inc. Proprietary. 46

47 Share of Viewing Hours 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 % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 69% 86% 98% 31% 14% 2% Light OTT Viewers Medium OTT Viewers Heavy OTT Viewers Live TV OTT Among households that watch traditional TV and OTT content, even the heaviest OTT households still spend a lot more time watching live TV. Despite the availability of more on-demand content than ever before, viewers still have a tendency to watch what s on. 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

48 Penetration of U.S. Wi-Fi HHs 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 % 35% 30% 25% 20% 15% 10% 5% 0% 37% 31% 27% 8% Streaming Box/Stick Gaming Console Connected TV Internet Blu-ray Player Households. have several tech options for streaming overthe-top TV content to their television sets. Streaming boxes/sticks, such as Roku devices, have the highest household penetration, but gaming consoles and smart TVs are other popular options. comscore, Inc. Proprietary. 48

49 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 % 12% 8% 5% With. streaming boxes/sticks as the most popular method for streaming OTT content, many of the largest technology companies are battling to be the platform-of-choice for consumers living rooms. Despite the competition from huge tech companies with deep wallets, Roku is currently the market leader. * Roku s number includes Roku OS TVs, which account for a small percentage of its total penetration. comscore, Inc. Proprietary. 49

50 Avg. Monthly Viewing Hrs. per HH 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 % 5% 10% 15% 20% 25% 30% 35% 40% 45% Wi-Fi Household Penetration Netflix has the highest household penetration and viewing time per month among the major OTT content services. Hulu isn t as widely penetrated but attracts comparable viewing engagement on a per-household basis. YouTube and Amazon are also in the mix and have solid positions in the OTT market. comscore, Inc. Proprietary. 50

51 Total Households (Millions) 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 Mo. Avg. Ending Dec HHs watched 48 hours of Sling TV, the highest per-hh viewing of any OTT service 1.2 Jul-2016 Aug-2016 Sep-2016 Oct-2016 Nov-2016 Dec Sling TV, which is a less expensive, less robust alternative to cable, was being used in nearly two million households by the end of PlayStation Vue and DirecTV Now are similar services offering live streaming packages of pay-tv channels, in what will likely be an increasingly common trend to attract cord-cutters and cord-nevers. comscore, Inc. Proprietary. 51

52 Advertising comscore, Inc. Proprietary. 52

53 Nearly half of digital ad impressions can t have an impact because they re not viewable or not delivered to a human Percentage of Viewable Desktop Ad Impressions in U.S. Source: comscore vce Benchmarks, U.S., Q % 6% 54% Viewable Non-viewable Invalid Traffic (IVT) Nearly half of all desktop ad impressions are unable to deliver an advertising impact. While most of these non-viewable ads are simply delivered to parts of the web page that are out of view, a meaningful percentage is being delivered to bots and other forms of invalid traffic that is by definition not viewable to a human. comscore, Inc. Proprietary. 53

54 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 11% Sophisticated IVT 89% Sophisticated IVT, which according to the Media Rating Council (MRC) includes traffic originating from hijacked devices, malware or misappropriated content, accounts for the vast majority of invalid traffic. Sophisticated detection techniques are therefore required for advertisers to mitigate the potential for waste. comscore, Inc. Proprietary. 54

55 % of Ad Impressions % of Ad Impressions 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., Q % 70% 60% 50% 40% 30% 20% 10% 0% 60% 52% Desktop Display Direct 70% 47% Desktop Video Programmatic 12% 10% 8% 6% 4% 2% 0% 6% 4% Desktop Display 5% 11% Desktop Video Direct ad buys and display ads tend to outperform programmatic buys and video ads, respectively, when it comes to appearing in view and being seen by humans. Programmatic video ads are the most susceptible to low rates of viewability and high rates of invalid traffic. % Viewable % Invalid Traffic comscore, Inc. Proprietary. 55

56 % of Invalid Traffic 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., % 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 8.5% 8.5% Display Video Given the higher CPMs for video, 9.3% 5.8% 6.0% 6.2% 6.1% Q Q Q Q % advertising on the medium has become increasingly susceptible to invalid traffic. This will continue to be a challenge for the industry, underscoring the importance of sophisticated detection techniques. comscore, Inc. Proprietary. 56

57 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., Desktop Mobile x 2.6 Aided awareness x 2.9 Favorability x 2.8 Likelihood to recommend x 4.0 Purchase Intent desktop desktop desktop desktop Mobile ads caused point lifts up to 3x greater than ads on desktop across four key brand metrics and performed especially strong in middle and bottomfunnel metrics, such as favorability, intent to buy and likelihood to recommend. Less ad clutter and proximity to point of purchase may be driving better effectiveness for mobile ads. comscore, Inc. Proprietary. 57

58 E-Commerce comscore, Inc. Proprietary. 58

59 By Q4 2016, total digital commerce had grown to account for more than 1 out of every 6 discretionary retail dollars 18% 17% 16% 15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Desktop & Mobile Digital Commerce Share of Corresponding Consumer Spending* Source: U.S. Dept. of Commerce, comscore e-commerce & m-commerce Measurement, U.S., Digital Commerce Share (desktop + mobile) e-commerce Share (desktop) 15.0% (Q4 15) 12.5% (Q4 15) 17.0% Q % Q4 16 Digital s share of consumer discretionary spending, which peaks in seasonally colder months, reached an all-time high in Q at 17%. Digital commerce share appears to be accelerating slightly in recent years due to the impact of mobile. *Note: e-commerce share is shown as a percent of DOC s Total Retail Sales excluding Food Service & Drinking, Food & Bev. Stores, Motor Vehicles & Parts, Gasoline Stations and Health & Personal Care Stores. comscore, Inc. Proprietary. 59

60 Billions ($) Boosted by a growing share of mobile, total digital commerce surpassed the $100 billion mark in Q for the first time $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $- $5.9 $4.7 $50.2 $49.8 $47.5 Q Q U.S. Quarterly Online Retail Spending by Platform Source: comscore e-commerce & m-commerce Measurement, U.S., $5.8 Q $8.3 $63.1 Q $7.3 $6.9 $6.7 $56.1 $54.8 $53.9 Q Q Desktop Q $10.7 $72.1 Q $11.1 $11.1 $11.4 $61.1 $59.8 $58.3 Q Mobile Q Q $15.6 $76.9 Q $15.6 $17.3 $16.9 $67.9 $69.9 $67.4 Q Q Q $109.3 Billion $22.7 $86.6 Q While desktop spending has continued to grow every year, mobile is now driving much of the growth and contributing an increasing share of online discretionary retail sales. Mobile pushed digital commerce to its highest quarterly total ever in Q4. comscore, Inc. Proprietary. 60

61 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 % +45% +40% +35% +30% +25% +20% +15% +10% +5% +0% +47% +14% +5% Total Discretionary Retail e-commerce m-commerce 2016 was a strong year for U.S. discretionary retail, with e-commerce contributing some of the strongest gains. Mobile commerce, which is still a smaller market than desktop and brickand-mortar, saw the fastest growth rate at 47% -- far outpacing the two other primary retail channels. comscore, Inc. Proprietary. 61

62 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., Q Q % 2.4% Q Q % Q % 6.6% Q Q % 9.0% 9.3% 8.1% Q Q Q Q % Q % 10.5% Q Q % Q % 11.7% 11.5%11.1%11.1% 10.8% Q Q Q Q Q Q % 15.6% 16.4% 16.9% Q Q Q Q % Q % 20.0% 20.8% Q Q Q M-commerce has come a long way in the past 6 years and now contributes about 1 in every 5 dollars spent via digital commerce saw a continuation of the platform s gains in its percent share of the total market, as consumers become increasingly comfortable transacting on their smartphones and tablets. comscore, Inc. Proprietary. 62

63 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 % 67% Time Spent 47% Gap Desktop Mobile 80% 20% Dollars Spent Mobile accounted for 67% of time spent shopping online, but only 20% of digital retail spend in Factors such as security concerns and smaller screen size continue to add friction to mobile purchases. While this m-commerce monetization gap will narrow once mobile s share of time spent stabilizes, the two aren t likely to ever reach equilibrium. comscore, Inc. Proprietary. 63

64 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 Furniture, Appliances & Equipment Video Games, Consoles & Accessories Flowers, Greetings & Misc Gifts Event Tickets Computer Software Home & Garden Music, Movies & Videos Apparel & Accessories Total Digital Commerce Office Supplies Consumer Packaged Goods Sport & Fitness Toys & Hobbies Consumer Electronics Digital Content & Subscriptions Computers / Peripherals / PDAs Books & Magazines 26% 24% 24% 24% 24% 22% 21% 20% 19% 18% 17% 17% 16% 16% 15% 15% 14% 39% Online retail grew 19% year-over-year in 2016, with the fastest growing categories seeing most of their gains on mobile. The fact that the top couple of product categories by growth contain more expensive and complicated items shows that consumers are becoming more comfortable making these types of purchases on their smartphones and tablets. comscore, Inc. Proprietary. 64

65 Billions ($) Apparel & Accessories is now the clear #1 product category online, edging out Computer Hardware for the 2 nd straight year Digital Commerce Sales by Category: Apparel & Accessories vs. Computer Hardware Source: comscore E-Commerce & M-Commerce Measurement, U.S., Q Q $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 $9.2 $9.1 $8.4 $8.4 Q COMPUTER HARDWARE $9.9 $7.1 $13.5 $12.3 APPAREL & ACCESSORIES Q Q Q $11.3 $10.2 $10.0 $9.9 $10.0 Q Q $8.4 Q $15.9 $12.4 $11.8 $15.0 $11.8 Q $11.1 $11.0 Q Q $10.1 Q $17.2 $16.0 Q $14.0 $14.7 $13.6 $12.5 $13.0 $12.9 Q Q Q $20.3 Q $18.2 Computer Hardware was the longtime #1 category in digital commerce, but Apparel & Accessories has emerged over the last few years to establish itself as the new #1. Gains in mobile commerce, along with consumers increasing comfort with online returns, have helped boost the category to new heights. comscore, Inc. Proprietary. 65

66 Visits (MM) The 2016 holidays saw retail traffic peak on Black Friday and Cyber Monday, with mobile outpacing desktop every day this season 1,200 1, Holiday Season: Digital Retail Visits (MM) by Platform Source: comscore Custom Analytics, U.S., Nov 1 Dec 31, 2016 Black Friday Cyber Monday TOTAL DIGITAL MOBILE DESKTOP 11/1/ /8/ /15/ /22/ /29/ /6/ /13/ /20/ /27/2016 Mobile accounted for 62% of all online retail visits this holiday season and outpaced desktop every single day of the season. Mobile visits peaked on Black Friday, while desktop visits peaked on Cyber Monday, which saw more overall retail traffic than any other day in comscore, Inc. Proprietary. 66

67 Box Office comscore, Inc. Proprietary. 67

68 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 % 6% 9% 13% 10% Other Disney had a huge 22% 20% 8% 8% 6% 12% 10% Other 26% 17% 2016 at the box office, growing its market share by 6 percentage points from a year ago. Warner Bros. and Paramount also grew their market shares, while Universal couldn t quite match its level of success from 2015, boosted by Jurassic World, Furious 7 and Minions. Overall, the Big Seven major studios took in more than 90% of the 2016 box office dollars. 14% 13% comscore, Inc. Proprietary. 68

69 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 Rogue One: A Star Wars Story* Captain America: Civil War Secret Life Of Pets, The Jungle Book, The Deadpool Zootopia Batman V Superman: Dawn Of Justice Suicide Squad Star Wars: The Force Awakens $408.2 $408.1 $368.4 $364.0 $363.1 $341.3 $330.4 $325.1 $284.7 $486.3 Disney Universal 20 th Century Fox Warner Bros. As was the case in 2015, the Top 10 in 2016 featured mostly action movies and animated familyfriendly films, with Disney distributing four of the top five films in Impressively, Star Wars: The Force Awakens cracked this past year s Top 10 despite being released in mid- December * 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

70 20 th 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 1 Deadpool (2016) Fox 2 Martian, The (2015) Fox 3 Zootopia (2016) Disney 4 Star Wars: Episode VII - The Force Awakens (2015) Disney 5 Batman V Superman: Dawn Of Justice (2016) Warner 6 The Hunger Games: Mockingjay - Part 2 (2015) Lionsgate 7 Revenant, The (2015) Fox 8 Captain America: Civil War (Theatrical) Disney 9 Daddy's Home (2015) Paramount 10 Suicide Squad (2016) Warner 11 Intern, The (2015) Warner 12 Big Short, The (2015) Paramount 13 Finding Dory (2016) Disney Hours: The Secret Soldiers Of Benghazi (2016) Paramount 15 Bridge Of Spies (2015) Disney 16 Sicario (2015) Lionsgate 17 Star Trek Beyond (2016) Paramount 18 Hateful Eight, The Starz Entertainment 19 Central Intelligence (Unrated) (2016) Warner 20 X-Men: Apocalypse (2016) Fox As was the case last year, 20 th Century Fox was home to two of the biggest movies in 2016 in terms of total digital purchases and rentals. As with the top grossing box office movies, action films tended to be most popular among audiences, even on the small screen, but comedies and sci-fi films also had notable success this year. * Excludes NBC Universal and non-participating Independent distributors. EST revenue source: DEG comscore, Inc. Proprietary. 70

71 Key Takeaways comscore, Inc. Proprietary. 71

72 Key Themes for The Maturation of 2 A Cross-Platform Mobile Ecosystem Emerges 3 Advertising Gets Back to the Basics The U.S. smartphone market is nearing saturation and the tablet market has flattened. Advances in device technology are now growing incrementally rather than by leaps and bounds. While mobile now dominates digital media usage, consumption is beginning to stabilize and the days of huge growth are over. Digital media audiences are in the latter stages of a multi-year boom. Consumer usage trends always shift faster than dollars, but now is the time for the economics to catch-up with behavior. This will be enabled by better measurement, improved industry standards and less friction in running mobile ad campaigns. Digital media has gone cross-platform, and more devices than ever before are being used to access content inside the home. Desktop and mobile media usage are converging with traditional TV and OTT, as consumers watch their favorite content through any number of devices, including smart TVs, streaming boxes and gaming consoles. The cross-platform era will be defined by a media-agnostic view of the consumer and comparable metrics to facilitate efficient media planning, buying and selling. Today s media environment is fragmented, messy and complex. Siloed platforms, varying ad formats, and disparate buying and selling processes all add friction that inhibit coordinated marketing strategies. Issues of digital ad viewability and fraud only add to the confusion, erode trust, and distract from how advertising performance ought to be measured. Ad measurement is finally getting back to basics with a return to the metrics that matter reach, frequency, impressions, demographics which are every bit as relevant today as they have ever been. But they are also getting more advanced, with the ability to go deeper on audience descriptors and tying to behavioral outcomes. comscore, Inc. Proprietary. 72

73 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 ADAM LELLA, Senior Marketing Insights comscore, Inc. comscore, Inc. comscore.com For info about the proprietary technology used in comscore products, refer to comscore, Inc. Proprietary comscore, Inc.