As online presence is a key component in reaching Canadians, it is important to understand the landscape to determine the most effective way to reach and engage with your audience. In this presentation, Bryan Segal will delve into the state of the digital media universe in Canada. He will focus on where Canada stands in terms of usage and duration from a worldwide perspective, as well as taking a closer look at the behaviors of Canadians online. What are some of the differences between Canadians surfing behavior and surfers from around the world? What are some of the hot and cold categories? How do you target populations online, and what are some of the ways to reach those online targets? As well, to ensure that we keep up with the most up-to-date trends, Bryan will delve into the Social Media, Video, and Mobile industry.

1. State of the Nation Bryan Segal – Vice President 416-646-9972 / bsegal@comscore.com

2. State of the Online Nation The Canadian Digital Landscape 2

3. Canada is the Highest Penetrated Country We View the Most Content and Spend the most Time Source: comScore Media Metrix, Persons 15+, All Locations, April 2009 Source: Wikipedia Population Estimates – as of May 2009

4. Internet shares of media usage are growing substantially across all age groups. Adults 18-24 and 25-34 spend a larger proportion of their time with the Internet. Total 18+ Share of Weekly Minutes Per Capita 25-34 Share 18-24 Share TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL 2007 30% 27% 33% 6% 4% 100% 2001 33% 35% 19% 8% 5% 100% 2007 29% 23% 40% 5% 3% 100% 2001 33% 31% 24% 7% 5% 100% 35-54 Share 55+ Share TV RADIO INTERNET NEWSPAPER MAGAZINE TOTAL 2001 35% 36% 14% 10% 5% 100% 2007 42% 28% 11% 14% 5% 100% 2001 43% 31% 5% 15% 6% 100% 2007 33% 33% 22% 8% 4% 100% NADbank 2007 Total Canada

5. Content Rules: Platform Agnostic? 5

6. Persons of All Ages Still Grasping onto their Traditional Media…OnlineContent is still King and Queen Music Category Newspapers Category TV Category Radio Category Source: comScore Media Metrix, Canada, All Locations, April ‘09

7. Online Video Takes Off! 7

8. Canada Leads in Online Video Reachand Continues to Grow… +11% +117% comScore, Inc.,, Inc., Canada, Ages 2+, May 08 – May 09 Source: comScore, Inc., Video Metrix, Canada, US, All Locations, Ages 2+ (15+ for France, Germany, UK), May 08 - May 09

9. Facebook Video Trails behind YouTube and VideoEgg in Canada +11% +117% +117% Source: comScore Inc., Video Metrix, Canada, All Locations, May 2008 - May 2009

10. Who is Watching Videos online in Canada? Online Video in Canada skews towards the higher income bracket. All demographics are heavily engaged, specifically persons aged 18-34 who viewed the most minutes per viewer and viewed the most videos per viewer. Canadian Household Income Demographic Video Usage Source: comScore Video Metrix, Canada, All Locations, February 2009

11. Social Network….not just a fad! 11

12. The Growth of Social Networking around the World TodayPercentage Reach of the Total Online Population Canada* 89% Russian Federation 59% Germany 63% United Kingdom 80% United States* 75% China 42% India 58% Mexico 72% Middle East - Africa 69% Latin America 81% Australia 68% Social Networking attracts a worldwide audience of over 734.2 million Unique Visitors and continues to be a growing trend *Source: comScore, Inc., Canada, US, Ages 2+ (Worldwide Ages 15+), All Locations, Jun 09 (Worldwide May 09)

13. Social Networking Canadians Highly Penetrated, and Highly Engaged * Ages 15+ Source: comScore, Inc., World Metrix, Ages 15+, All Locations, May 08, May 09

14. Social Networking Category Continues to Thrive in Canadaas Web 2.0 Categories Show Large Growth Web 1.0 Web 2.0 +33% +19% +13% +14% +11% +38% *Percentage change calculated on first month of data Source: comScore, Inc., Canada, Ages 2+, All Locations, Nov 06 – Jun 09

15. Canadians are Highly Engaged on Facebook.com #1 #1 #1 #1 #1 Source: comScore, Inc. WW, Ages 15+, All Locations, May 09

16. Search 16

17. Search… Around the Worldwide Web Population Ranked #1 vs. top countries in Search Usage Days per Searcher, Search Visits per Searcher and Searches per Searcher Source: comScore qSearch, Worldwide, US, UK, France, Canada,, All Locations, February 2009

19. Search growth also driven by an increasing searcher base, reaching 24.3MM searchers in March 2009Unique Searchers vs. Search Intensity +16% +9% Source: comScore qSearch, Canada, All Locations, March 2009

20. Google Sites Continues to Dominatein Share of Search in Canada Source: comScore qSearch, Canada, All Locations, March 2009

21. Mobile….the next frontier? 20

22. What does a “phone” do? ~1900 1983 2009 Capabilities: Initiate phone calls Receive phone calls In one place Capabilities: Initiate phone calls Receive phone calls On the move Text Game Maps News Watch TV/Video Alarm clock Etc. Capabilities: Initiate phone calls Receive phone calls On the move

23. Females and Persons 35-54 are Key Mobile TargetsPersons 35-54 make up over 35% of the mobile market, Females 52% Females are gaining more ground in the mobile market Source: comScore M:Metrics, US,, Persons 13+, 3mnth avg ending May 2005 - May 2009

24. Market Growing, But Slowing Down Overall growth of mobile subscribers slowing (+3% YoY) Carrier growth dependent on winning customers from competitors Data services driving revenue growth Handsets and content experiences becoming key +3 %

25. Voice No Longer the Killer App:Mobile Browsers, Application Users and Downloaders (Mobile Media Users) Growing 24% Year on Year 35% of mobile users are now using a media service that connects to the network (other than SMS, MMS or voice) An additional 29% of the market also use text messaging (SMS), with the remainder just using voice services The number of ‘Just Voice’ users has fallen 18% year on year, from 45% to 35% Product: MobiLens Data: Three month average ending May 09 Country: US - N= 35,520

26. There are 1031 Separate Devices Being Used to Access Mobile Media in US, Top mobile media devices dominated by touchscreens and smartphones. Top 6 devices represent 11.4% of mobile media users, top 20 devices – 23.9%. Although the iPhone gains a large amount of publicity it currently only represents 7% of mobile media users. Product: MobiLens Data: Three month average ending May 09 Country: US - N= 35,520

27. The Mobile / PC Connection: Online & On Device Browsing Facebook usage is surprisingly similar on mobile and PC mobile users spend 24 minutes on facebook, average 3.3 visits per day. PC users spend 27.5 minutes per day; average 2.3 visits.

28. ?

29. Is the Mobile Marketing Glass Half-Empty or Half- Full? Pros Critical mass of consumers Paradigm shift in usage Attractive marketing platform Devices hit a trifecta of feature, function, and price Cons Fragmented usage (sms vs. browsing vs. applications) USP is a bit unclear Too many devices Smartphone's are great but are still far from mainstream….

30. Mobile Advertising: Not Just About Ringtones Anymore Mobile Web Drawing Diverse Advertisers

31. The Right Metrics are Critical: The Impact of Display and Search Advertising 30

32. Measuring the Holistic Impact of Online Ad Campaigns 200+ studies conducted to assess the impact of Paid Search and Online ads on Online and offline sales Real world analysis: comScore panelists divided into two matched groups (exposed and non-exposed to advertising) Search only Display ads only Search and Display ads together Neither Passively measured behavior and / or surveys Linked to in-store buying through CRM databases, retailer loyalty cards (we have 125 Million card dataset accessible), credit card data, IRI scanner panel 31

33. Clicks on Display Ads Are a Misleading Metric and Don’t Reflect Brand-Building Effects Recommendation: Only use to evaluate direct response ad campaigns (or Search) Clicks don’t reflect a campaign’s sales impact, nor the cumulative (latent) impact of ads Clicks don’t tell you anything about brand building effects 32

34. Site visitation lift: not only is there significant impact within the 1st week, with or without a click, but past the 1st week, there is significant lift that would be missed by only counting clicks or immediate actions Results from comScore Campaign Effectiveness Studies 33

35. Online is important but you can’t ignore offline buying either. The sales lift generated offline by online advertising is significant and would certainly not be captured by a CPC or cookie-based model Higher offline sales lifts are found for Search advertising vs. Display, but when combined, the synergy provides even more lift Incremental Impact on Offline Sales per (000) Exposed 34

36. Thank You. Bryan Segal - Vice President comScore Canada bsegal@comscore.com 416.646.9972