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The Global Media Intelligence ReportNorth America

The Global Media Intelligence Report: North America Copyright ©2012 eMarketer, Inc. All rights reserved. NA-1

North America Both Canada and the United States have been buffeted by the current financial crisis. Economic problems have fostered uncertainty, pessimism and nostalgia for the long-vanished boom years. Yet despite these persistent difficulties, North America—the US in particular—remains the center of the world’s advertising industry, and prospects for that industry are looking good. North America will account for one-third of global ad spending in 2012, eMarketer estimates—a larger share than any other region. By 2014, the spotlight will shift to Asia-Pacific, where ballooning investment, rising living standards and a rapidly expanding consumer base are fuelling big gains in GDP, advertising and consumption. But even in 2016, three in every 10 ad dollars worldwide will be spent in the US and Canada.

% of total

Total Media Ad Spending Share Worldwide, by Region,2010-2016

2010 2011 2012 2013 2014 2015 2016

North America 34.6% 33.9% 33.3% 32.4% 31.7% 30.8% 30.3%

Asia-Pacific 28.2% 29.0% 30.1% 31.4% 32.4% 33.6% 34.4%

Western Europe 24.3% 23.5% 22.4% 21.7% 20.9% 20.2% 19.5%

Latin America 5.7% 6.1% 6.4% 6.7% 7.0% 7.3% 7.6%

Eastern Europe 4.1% 4.3% 4.4% 4.5% 4.6% 4.7% 4.8%

Middle East & Africa 3.0% 3.1% 3.3% 3.3% 3.3% 3.4% 3.4%

Note: includes digital (online and mobile), directories, magazines,newspapers, outdoor, radio and TV; numbers may not add up to 100% dueto roundingSource: eMarketer, Sep 2012144716 www.eMarketer.com

One thing that won’t change in a hurry is the marked discrepancy between total media ad spending per person in North America and in most other parts of the world. In 2012, an average of $512 will be spent on each resident of the region, compared to a global average of $77. In Western Europe—another very mature marketplace—the average this year will be an estimated $292. Every other region will register per-person ad spending well below the global average.

In the digital realm, too, North America is in a class of its own. This year, regional spending on digital ads will rise 16.9%, to $40.3 billion, eMarketer predicts—meaning that over 38% of worldwide expenditure on internet and mobile ads will target US and Canadian audiences. That share is declining as digital advertising gathers pace in Asia-Pacific and becomes firmly established in emerging markets such as Latin America, the Middle East and Africa. By 2016, the Asian region is expected to claim more than 30% of ad spending on digital platforms, compared to North America’s 34.8%.

% of total

Digital Ad Spending Share Worldwide, by Region,2010-2016

2010 2011 2012 2013 2014 2015 2016

North America 38.8% 39.1% 38.4% 37.7% 36.8% 35.9% 34.8%

Western Europe 30.2% 28.1% 26.6% 25.5% 24.8% 24.2% 23.7%

Asia-Pacific 24.7% 25.1% 26.3% 27.5% 28.3% 29.4% 30.7%

Eastern Europe 3.1% 4.1% 4.5% 4.7% 4.7% 4.8% 4.7%

Latin America 2.8% 3.0% 3.4% 3.6% 4.0% 4.3% 4.4%

Middle East & Africa 0.5% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6%

Note: includes advertising that appears on desktop and laptop computersas well as mobile phones and tablets, and includes all the various formatsof advertising on those platforms; excludes SMS, MMS and P2Pmessaging-based advertising; numbers may not add up to 100% due toroundingSource: eMarketer, Sep 2012144729 www.eMarketer.com

In the mobile arena, North America is fast becoming the world’s leading hotspot. In 2011, regional expenditure on mobile ads, excluding message-based formats, was only two-thirds the level of mobile ad spending in Asia-Pacific, where Japan and South Korea have pioneered advanced mobile services and innovative marketing on handheld devices. But within a single year, advertisers’ spending on mobile platforms in North America has nearly doubled. Sales of Apple’s iPad, the Amazon Kindle Fire and other tablets are helping to give mobile ad budgets a major boost, too. eMarketer estimates that mobile ad spending in the region will surpass the Asia-Pacific total in 2013, and rise at a greater rate during the next four years. In 2016, spending on mobile ads in the US and Canada will top $12.3 billion—more than twice the $5.1 billion anticipated in Asia, and 48.8% of all mobile ad spending worldwide. The US will account for an estimated $11.7 billion in regional mobile spending that year.


North America

millions

Mobile Ad Spending Worldwide, by Region andCountry, 2011-2016

Asia-Pacific—Japan

—South Korea

—China*

—Australia

—India

—Indonesia

—Other

NorthAmerica—US

—Canada

WesternEurope—UK

—Germany

—France

—Italy

—Spain

—Other

EasternEurope—Russia

—Other

Latin America—Mexico

—Brazil

—Argentina

—Other

Middle East & AfricaWorldwide

2011

$1,883.0

$1,368.1

$322.0

$108.5

$44.0

$4.7

$2.8

$32.9

$1,261.7

$1,199.7

$62.0

$775.5

$327.7

$121.8

$94.3

$67.9

$37.5

$126.2

$62.6

$20.0

$42.6

$53.4

$23.6

$12.9

$6.4

$10.5

$1.8

$4,037.9

2012

$2,560.9

$1,740.2

$450.8

$195.6

$72.8

$9.9

$8.1

$83.5

$2,494.0

$2,384.1

$109.9

$1,305.2

$558.1

$225.0

$140.3

$112.9

$61.5

$207.3

$121.1

$37.0

$84.1

$99.2

$41.5

$24.6

$11.0

$22.2

$3.1

$6,583.4

2013

$3,190.9

$2,027.3

$543.2

$313.5

$99.6

$18.9

$23.1

$165.2

$4,376.6

$4,188.0

$188.6

$2,088.3

$892.1

$378.2

$214.6

$181.7

$97.2

$324.5

$201.2

$53.9

$147.4

$175.7

$70.1

$44.4

$18.1

$43.1

$4.7

$10,037.3

2014

$3,937.5

$2,331.4

$624.7

$483.1

$131.5

$35.5

$44.0

$287.3

$6,702.8

$6,401.1

$301.7

$3,195.0

$1,405.0

$612.8

$319.9

$273.1

$150.0

$434.3

$278.9

$77.3

$201.7

$325.0

$122.3

$85.2

$32.7

$84.8

$7.6

$14,446.8

2015

$4,528.2

$2,520.2

$694.0

$631.8

$161.7

$63.9

$70.2

$386.1

$9,472.8

$8,989.5

$483.3

$4,760.6

$2,160.0

$952.1

$452.1

$394.8

$223.6

$578.0

$362.6

$111.2

$251.4

$520.0

$184.9

$141.4

$51.0

$142.7

$10.5

$19,654.7

2016

$5,094.2

$2,671.5

$763.4

$780.3

$186.0

$101.5

$104.3

$487.2

$12,359.1

$11,667.7

$691.4

$6,679.1

$3,030.4

$1,392.9

$626.1

$509.3

$324.9

$795.4

$449.6

$157.5

$292.1

$728.0

$259.7

$198.3

$70.4

$199.7

$13.8

$25,323.8Note: includes display (banners, video and rich media) and search; excludesSMS, MMS and P2P messaging-based advertising; includes ad spending ontablets; numbers may not add up to total due to rounding; *excludes HongKongSource: eMarketer, Sep 2012144645 www.eMarketer.com

This explosion of mobile ad spending is a foregone conclusion, given the impressive levels of mobile device usage in the United States. In 2012, nearly 77% of US residents will own at least one mobile phone and use it at least once per month, eMarketer estimates. In Canada, penetration will be about 10 percentage points lower, at 66.6%. In both countries, mobile phone ownership will rise steadily through 2016, reaching a regional average of 78.6%. North America will continue to lag Western Europe in key measures of mobile usage. But it will maintain a significant lead over most other regions, including Latin America, Asia-Pacific, the Middle East and Africa.

% of population

Mobile Phone User Penetration Worldwide, by Regionand Country, 2010-2016

Western Europe—UK

—Germany

—Italy

—Spain

—France

—Other

North America—US

—Canada

Eastern Europe—Russia

—Other

Latin America—Argentina

—Brazil

—Mexico

—Other

Asia-Pacific—South Korea

—Japan

—Australia

—China*

—Indonesia

—India

—Other

Middle East & Africa

Worldwide

2010

76.5%82.0%

76.8%

74.5%

75.0%

73.0%

77.0%

73.5%74.9%

61.0%

69.0%70.0%

68.5%

59.4%75.0%

50.0%

49.0%

69.9%

45.7%84.0%

82.0%

72.5%

50.5%

44.0%

33.0%

47.9%

31.7%

49.0%

2011

78.2%82.4%

78.9%

77.0%

76.5%

75.0%

78.6%

74.7%75.9%

64.0%

71.1%72.0%

70.6%

62.3%77.0%

54.0%

52.0%

72.0%

50.4%84.5%

83.0%

76.3%

58.4%

53.0%

35.0%

50.9%

34.3%

52.5%

2012

79.6%82.8%

80.7%

79.0%

77.9%

76.5%

80.0%

75.8%76.8%

66.6%

73.2%74.0%

72.8%

65.1%79.0%

58.0%

55.0%

73.7%

55.1%85.0%

84.0%

79.5%

65.5%

60.0%

39.0%

53.5%

36.5%

56.0%

2013

80.9%83.1%

82.3%

81.0%

79.1%

78.0%

81.3%

76.7%77.5%

68.9%

75.2%76.0%

74.9%

67.6%81.0%

62.0%

58.0%

74.7%

59.5%85.5%

85.0%

81.8%

72.3%

64.0%

43.0%

56.0%

38.7%

59.3%

2014

82.2%83.4%

84.0%

83.0%

80.2%

79.3%

82.5%

77.5%78.2%

71.2%

77.3%78.0%

77.0%

69.8%82.0%

65.5%

61.0%

75.7%

63.3%86.0%

86.0%

84.0%

77.5%

67.0%

47.0%

58.6%

40.1%

62.0%

2015

83.2%83.3%

85.5%

84.0%

81.2%

80.5%

83.4%

78.2%78.7%

73.2%

79.4%80.0%

79.1%

71.9%83.0%

69.0%

63.5%

76.4%

67.0%86.5%

87.0%

85.3%

82.4%

70.0%

51.0%

61.1%

41.9%

64.7%

2016

84.0%83.4%

86.5%

85.0%

82.1%

81.5%

84.2%

78.6%79.0%

75.0%

81.3%82.0%

81.0%

73.9%84.0%

72.5%

66.0%

77.1%

70.0%87.0%

87.5%

86.1%

86.9%

72.0%

54.0%

62.8%

43.5%

67.0%

Note: mobile phone users are individuals of any age who own at least onemobile phone and use the phone(s) at least once per month; *excludesHong KongSource: eMarketer, April 2012139096 www.eMarketer.com

Similarly, North America will remain the global star in broadband and internet usage between now and 2016. Nearly 70% of homes in the region will have a fixed high-speed connection to the web in 2012, compared to 63.3% in Western Europe and 30.3% in Latin America, eMarketer predicts. Admittedly, rural areas are somewhat underserved in this respect, especially in the US. As PricewaterhouseCoopers (PwC) pointed out in its “Global Entertainment and Media Outlook: 2012–2016”: “It has not been economical for cable or telephone companies to extend their broadband infrastructure over long distances when the potential for new subscribers is limited.” US federal policies have addressed this problem, however, and over 18 million miles of fiber optic cable were laid in 2011 alone, according to PwC. Overall, more than three-quarters of the entire regional population will be online this year, and by 2016 nearly 80% of US and Canadian residents will access the web


North America

at least once a month. Throughout the forecast period, web penetration in North America will be more than twice the global average.

% of population in each group

Internet User Penetration Worldwide, by Region,2011-2016

2011 2012 2013 2014 2015 2016

North America 74.3% 75.7% 76.9% 77.9% 78.9% 79.6%

Western Europe 62.9% 64.6% 66.2% 67.5% 68.5% 69.1%

Eastern Europe 45.2% 49.6% 53.9% 57.8% 60.9% 63.8%

Latin America 38.4% 42.6% 46.0% 49.0% 51.5% 53.4%

Asia-Pacific 24.4% 27.1% 29.7% 31.6% 33.0% 34.3%

Middle East & Africa 13.6% 15.7% 17.4% 18.8% 20.0% 21.1%

Worldwide 29.6% 32.3% 34.7% 36.5% 38.0% 39.2%Note: individuals of any age who use the internet from any location via anydevice at least once per monthSource: eMarketer, Feb 2012136957 www.eMarketer.com


Canada ■ According to the “World Economic Outlook” issued by the International Monetary Fund (IMF), Canada’s GDP rose 2.4% in 2011. Many consumers in Canada—like many in the US—have dismaying levels of debt, and their spending has fallen as a result. Yet as the Economist Intelligence Unit (EIU) noted, Canada’s federal deficit is slowly coming down and public finances are “relatively healthy.” The EIU has forecast average GDP growth of 2.1% in Canada between 2012 and 2016. The IMF anticipates virtually identical gains in 2012 and 2013, at 2.1% and 2.2% respectively.

■ Fixed high-speed internet connections will reach 75% of Canadian homes in 2012, according to eMarketer. With penetration already so high, annual gains will be relatively minimal between 2013 and 2016, when 77% of households will have broadband.

■ From an early stage, the provision of broadband infrastructure in Canada’s urban and semi-rural areas encouraged residents to go online, and the country has long had one of the highest levels of web usage. comScore’s 2012 report, “Canada Digital Future in Focus,” commented: “Canada continues to lead the world in online engagement, with visitors spending an average 45.3 hours per month online [in Q4 2011].” eMarketer calculates that 77% of the population—26.4 million people—will use the web at least once per month in 2012. In 2016, 78.5% will be online regularly.

■ 22.8 million people in Canada will own a mobile phone in 2012—two-thirds of the entire population—and eMarketer predicts that the number of mobile owners will rise nearly 5% this year alone. Between now and 2016, nearly 4 million new owners will join the mobile fraternity, pushing penetration to 75%. Fewer than half of all mobile phone users will have a smartphone in 2012, but by 2016 an estimated 62%, or 16.4 million people, will have an advanced handset.

■ Just over half (50.7%) of Canada’s mobile phone users were female in 2012—broadly representative of the population as a whole, comScore indicated. But a male majority was evident among smartphone users (52.1%) and among mobile web users (53.9%). A similar correlation was observed between advanced mobile usage and affluence. While an estimated 21.3% of mobile phone users were associated with high-income households (those with earnings of C$100,000 or more per year), 26.9% of smartphone users came from high-earning homes. Overall, 48% of mobile phone users in Canada will access the mobile web in 2012, eMarketer has projected. In 2016, that proportion will reach 64%, as 17 million people use a mobile phone to go online.

■ A majority of Canada’s web users have embraced social networking, and 49.3% of all residents will visit a social site at least once per month in 2012, eMarketer calculates. That proportion is forecast to rise by just under 2 percentage points each year through 2016. The social networking population was quite evenly distributed across age groups. According to comScore Media Metrix, 47.8% of social networkers in Q4 2011 were age 34 or younger, while 45.8% were ages 35 to 64. The 18-to-34 age group registered higher engagement with social sites, however. Two in five of all social network users came from households with annual income of C$60,000 (US$60,606) or less, comScore reported.

■ As Canada gradually shakes off the effects of the financial downturn, many advertisers will respond with higher budgets. Total ad spending will significantly outstrip GDP growth in 2012, eMarketer estimates, rising 5.8% to C$13.37 billion (US$13.51 billion). The annual rate of increase is expected to decline gradually, falling below 4% from 2013. Spending on all measured media is projected to pass C$15.2 billion (US$15.3 billion) in 2016.

■ Digital advertising will once again outperform Canada’s ad industry as a whole. Investment in online and mobile formats will be 17.7% higher this year than in 2011, eMarketer forecasts. Moreover, double-digit growth will persist through 2016, as expenditure on digital ads climbs from C$3.18 billion (US$3.21 billion) in 2012 to C$5.2 billion (US$5.25 billion). According to PwC’s “Global Media and Entertainment Outlook: 2012–2016,” Canadian spending on banners and traditional display ads will grow at a faster rate than spending on paid search, but search will remain the leading category by spend. Mobile, currently the smallest slice of the digital ad pie, will post phenomenal gains, leaping from US$137.4 million this year to nearly US$778 million in 2016, eMarketer estimates.

■ ZenithOptimedia’s “Advertising Expenditure Forecasts” suggests that the internet—which represented less than one-fifth of Canadian ad spending in 2005—now attracts almost as many dollars as TV. According to these figures, the web will become Canada’s leading ad platform in 2013, accounting for 31.4% of all expenditure. eMarketer calculations indicate a rather different picture: Though digital advertising is ramping up sharply, it will constitute no more than 26.5% of total ad spending next year.


Canada

POPULATION

millionsPopulation in Canada, 2010-2020

Note: population as of July for each yearSource: US Census Bureau, International Data Base, June 27, 2012142196 www.eMarketer.com

2010

30

60

2012 2014 2016 2018 2020

33.8 34.3 34.8 35.4 35.9 36.4

MEDIA

% of populationMedia Penetration in Canada, 2012

TV households 99.0%

Cable/satellite TV households 93.0%

Radio listeners (1) 82.1%

Magazine readers (2) 75.5%

Internet users (1) 75.4%

Newspaper readers (3) 72.6%

Mobile phone users (4) 68.6%

Social network users (5) 49.3%

Smartphone users 33.8%

Mobile internet users29.1%

Note: (1) ages 18+, used at least 1/2 hour in the past week; (2) ages 18+,read in the past month; (3) data is for 2011, ages 18+, within 33 major dailynewspaper markets, read a daily newspaper in the past week; (4) ages 18+;feature or smartphone; (5) use a social network site via any device at leastonce per monthSource: eMarketer, 2012; Newspaper Audience Databank (NADbank), 2012;PMB Print Measurement Bureau, Spring 2012; Television Bureau of Canada,"TV Basics, 2011-2012," 2012; provided by Starcom MediaVest Group, June1, 2012142959 www.eMarketer.com

% of totalDemographic Profile of Media Users in Canada, 2012

GenderMale

Female

Age13-17

18-24

25-34

35-44

45-54

55-64

65+

Income (C$)

<25K

25K-50K

50K-75K

75K-100K

100K+

50.0%

50.0%

-

15.0%

21.0%

20.0%

21.0%

15.0%

9.0%

8.0%

19.0%

20.0%

17.0%

35.0%

49.3%

50.7%

6.9%

12.3%

17.8%

17.4%

21.0%

14.3%

12.6%

15.8%

24.7%

21.7%

16.5%

21.3%

49.0%

51.0%

-

12.0%

17.0%

17.0%

20.0%

17.0%

18.0%

12.0%

22.0%

20.0%

15.0%

30.0%

50.0%

50.0%

-

12.0%

18.0%

18.0%

21.0%

16.0%

16.0%

10.0%

21.0%

20.0%

16.0%

32.0%

46.0%

54.0%

-

13.0%

18.0%

17.0%

20.0%

17.0%

16.0%

10.0%

21.0%

19.0%

16.0%

33.0%

47.0%

52.0%

-

14.0%

22.0%

21.0%

21.0%

13.0%

8.0%

8.0%

23.0%

19.0%

19.0%

30.0%

Note: numbers may not add up to 100% due to rounding; *used at least 1/2hour in the past week; **read in the past month; ***within 33 major dailynewspaper markets, read a daily newspaper in the past weekSource: comScore, "MobiLens," March 2012; Newspaper AudienceDatabank (NADbank), 2012; PMB Print Measurement Bureau, Spring 2012;Television Bureau of Canada "TV Basics, 2011-2012," 2012; provided byStarcom MediaVest Group, June 1, 2012142960 www.eMarketer.com

Internet users*

Mobile phone users

TV viewers*

Radio listeners*

Magazine readers**

Newspaper readers***

INTErNET

millions, % of population and % changeInternet Users and Penetration in Canada, 2011-2016

2011

26.0

76.5%

1.6%

2012

26.4

77.0%

1.5%

2013

26.8

77.5%

1.4%

2014

27.1

77.9%

1.3%

2015

27.4

78.2%

1.1%

2016

27.8

78.5%

1.1%

Internet users % of population % change

Note: individuals of any age who use the internet from any location via anydevice at least once per monthSource: eMarketer, Feb 2012136992 www.eMarketer.com


Canada

Comparative Estimates: Internet Users andPenetration in Canada, 2010-2012

Internet users (millions)eMarketer, Feb 2012 (1)

comScore Inc., March 2012 (2)

Internet penetration (% of population)eMarketer, Feb 2012 (1)

PMB Print Measurement Bureau, June 2012 (3)

ITU, July 2012

Statistics Canada, Oct 2011 (4)

2010

25.622.9

75.9%-

-

80.0%

2011

26.023.4

76.5%-

83.0%

-

2012

26.4-

77.0%75.4%

-

-

Note: (1) individuals of any age who use the internet from any location viaany device at least once per month; (2) ages 15+; home and worklocations; three-month average for Q4 2010 and Q4 2011; (3) ages 18+;used at least 1/2 hour in the past week; (4) ages 16+; in the past 12monthsSource: eMarketer, Feb 2012; various, as noted, 2011 & 2012145066 www.eMarketer.com

% of totalDemographic Profile of Internet Users in Canada, 2012

Note: used at least 1/2 hour in the past week; numbers may not add up to100% due to roundingSource: PMB Print Measurement Bureau, Spring 2012; provided by StarcomMediaVest Group, June 1, 2012143037 www.eMarketer.com

Gender Age

Income (C$)

Male50%

Female50%

18-2415%

25-3421%

35-4420%

45-5421%

55-6415%

65+9%

<25K8%

25K-50K19%

50K-75K20%

75K-100K17%

100K+35%

Fixed Broadband Households and Subscriptions in Canada, 2010-2016

Households (millions)—% change

—Household penetration

Subscriptions (millions)—% change

2010

10.04.5%

72.3%

11.23.8%

2011

10.32.9%

73.6%

11.63.5%

2012

10.62.9%

75.0%

11.81.7%

2013

10.81.9%

75.6%

12.01.7%

2014

11.01.9%

76.2%

12.10.8%

2015

11.21.8%

76.8%

12.20.7%

2016

11.31.2%

77.0%

12.30.7%

Note: eMarketer benchmarks its Canada broadband household numbersagainst the Canadian Radio-television and TelecommunicationsCommission (CRTC), for which the last full year measured was 2010;includes connections with permanent access to the internet via cablemodem, DSL, fiber and wireless/satellite technologies; excludes mobileSource: eMarketer, April 2012139188 www.eMarketer.com

Comparative Estimates: Fixed Broadband Householdsand Penetration in Canada, 2010-2012

Fixed broadband households (millions)eMarketer*, April 2012GroupM, April 2012

CRTC, Sep 2012

Fixed broadband household penetration (% of households)PwC, June 2012

GroupM, April 2012

eMarketer*, April 2012CRTC**, Sep 2012

Ofcom***, Dec 2011

2010

10.09.5

10.0

72.5%

73.0%

72.3%69.0%

83.0%

2011

10.39.8

10.4

75.0%

75.0%

73.6%72.0%

-

2012

10.610.0

-

78.2%

75.0%

75.0%-

-

Note: *includes connections with permanent access to the internet viacable modem, DSL, fiber and wireless/satellite technologies; excludesmobile; **1.5 Mbps and higher; ***includes business broadband linesSource: eMarketer, April 2012; various, as noted, 2011 & 2012145067 www.eMarketer.com

Social Network Users and Penetration in Canada,2010-2014

Social network users (millions)—% change

—% of internet users

—% of population

2010

15.111.2%

59.0%

44.8%

2011

16.16.8%

62.0%

47.4%

2012

16.94.7%

64.0%

49.3%

2013

17.74.6%

66.0%

51.2%

2014

18.54.4%

68.0%

53.0%

Note: internet users who use a social network site via any device at leastonce per monthSource: eMarketer, Aug 2012143782 www.eMarketer.com


Canada

% of internet users

Comparative Estimates: Social Network UserPenetration in Canada, 2011 & 2012

eMarketer,Aug 2012

Ipsos*, March 2012

comScore Inc.**, Dec 2011

Microsoft,Jan 2012

Statistics Canada, Oct 2011

2011

62.0%

-

94.4%

67.0%

58.0%

2012

64.0%

53.0%

-

-

-

-

Usage

Use via any device at least once per monthVisited in past 3 months

Use

Used in past 12 months

18-74

Age

All ages

18+

15+

16+

Note: *includes social network sites, forums or blogs; **data is for OctSource: eMarketer, Aug 2012; various, as noted, 2011 & 2012145068 www.eMarketer.com

% of total

Demographic Profile of Social Network Usersin Canada, 2012

Note: monthly unique visitors to social network sites; average for Feb-AprilSource: comScore Media Metrix, 2012; provided by Starcom MediaVestGroup, June 1, 2012143056 www.eMarketer.com

Gender Age

Income (C$)

Female50.2%

Male49.8%

18-2410.8%

<1818.6%

25-3418.4%

35-6445.8%

65+6.4%

<60K40.1%

60K-75K12.9%

75K-100K18.3%

100K+28.7%

Facebook Users and Penetration in Canada, 2010-2014

Facebook users (millions)—% change

—% of social network users


—% of population

2010

14.314.0%

94.9%

56.0%

42.5%

2011

15.47.0%

95.2%

59.0%

45.1%

2012

16.14.9%

95.3%

61.0%

47.0%

2013

16.63.1%

93.9%

62.0%

48.1%

2014

17.12.9%

92.6%

63.0%

49.1%

Note: internet users who access their Facebook account via any device atleast once per monthSource: eMarketer, Aug 2012143880 www.eMarketer.com

Mobile

millions, % of population and % changeMobile Connections in Canada, 2010-2016

2010

24.5

72.6%

7.0%

2011

26.0

76.4%

6.1%

2012

27.3

79.6%

5.0%

2013

28.4

82.2%

4.0%

2014

29.5

84.7%

3.9%

2015

30.5

86.9%

3.4%

2016

31.0

87.7%

1.6%

Mobile connections % of population % change

Note: data is for Dec of each year; includes the total number of mobileconnections, for mobile phones as well as for nonvoice devices, such asinternet access devices (e.g., wireless modem cards, netbooks and mobileWi-Fi hotspots), ereaders, tablets and telematics systemsSource: eMarketer, April 2012139353 www.eMarketer.com

Comparative Estimates: Mobile Connections andPenetration in Canada, 2010 & 2011

Mobile connections (millions)eMarketer*, April 2012CWTA**, Nov 2011

ITU, July 2012

Datamonitor, Nov 2011

Mobile connection penetration (% of population)eMarketer*, April 2012ITU, July 2012

Media Technology Monitor***, Nov 2011

Ofcom, Dec 2011

2010

24.524.6

-

24.6

72.6%-

72.0%

76.2%

2011

26.025.9

25.9

-

76.4%75.3%

72.0%

-

Note: *data is for Dec of each year; includes the total number of mobileconnections, for mobile phones as well as for nonvoice devices, such asinternet access devices (e.g., wireless modem cards, netbooks and mobileWi-Fi hotspots), ereaders, tablets and telematics systems; **data is for Q4of each year; ***ages 18+; 2011 data is for Q1Source: eMarketer, April 2012; various, as noted, 2011 & 2012145071 www.eMarketer.com


Canada

millions, % of population and % changeMobile Phone Users in Canada, 2010-2016

2010

20.6

61.0%

5.9%

2011

21.8

64.0%

5.8%

2012

22.8

66.6%

4.9%

2013

23.8

68.9%

4.3%

2014

24.8

71.2%

4.1%

2015

25.7

73.2%

3.7%

2016

26.5

75.0%

3.2%

Mobile phone users % of population % change

Note: mobile phone users are individuals of any age who own at least onemobile phone and use the phone(s) at least once per monthSource: eMarketer, April 2012139315 www.eMarketer.com

% of total

Demographic Profile of Mobile Phone Users in Canada, 2012

Note: numbers may not add up to 100% due to roundingSource: comScore MobiLens, March 2012; provided by Starcom MediaVestGroup, June 1, 2012143057 www.eMarketer.com

Gender Age

Income (C$)

Male49.3% Female

50.7%

18-2412.3%

13-176.9%

25-3417.8%

35-6417.4%

45-5418.6%

55-6414.3%

65+12.6%

75K-100K16.5%

100K+21.3%

<25K15.8%

25K-50K24.7%

50K-75K21.7%

millions and % of mobile phone usersSmartphone Users in Canada, 2009-2016

2009

4.7

2010

6.0

2011

8.3

2012

10.5

2013

12.2

2014

14.0

2015

15.3

2016

16.4

Smartphone users % of mobile phone users

Note: smartphone users are individuals of any age who use a smartphoneat least once per monthSource: eMarketer, March 2012137792 www.eMarketer.com

24.0%29.0%

38.0%

46.0%51.0%

56.5%59.5% 62.0%

% of total

Demographic Profile of Smartphone Users in Canada,2012


Gender Age

Income (C$)

Male52.1%

Female47.9%

18-2418.1%

13-178.0%

25-3423.8%35-64

20.9%

45-5415.1%

55-64 9.5%

65+4.6%

75K-100K18.7%

100K+26.9%

<25K12.8%

25K-50K19.9%

50K-75K21.8%


Canada

Mobile Internet Users and Penetration in Canada,2010-2016

Mobile internetusers (millions)—% change

—% of mobilephone users

—% of population

2010

6.8

16.5%

33.0%

20.1%

2011

8.7

28.2%

40.0%

25.6%

2012

11.0

25.9%

48.0%

32.0%

2013

12.6

15.1%

53.0%

36.5%

2014

14.5

14.9%

58.5%

41.7%

2015

15.8

9.0%

61.5%

45.0%

2016

17.0

7.4%

64.0%

48.0%

Note: mobile phone users of any age who access the internet from amobile browser or an installed application at least once per month;excludes SMS, MMS and IMSource: eMarketer, April 2012139331 www.eMarketer.com

% of total

Demographic Profile of Mobile Internet Usersin Canada, 2012


Gender Age

Income (C$)

Male53.9%

Female46.1%

18-2420.0%

13-178.8%

25-3427.1%

35-6421.0%

45-5413.6%

55-646.5%

65+3.0%

75K-100K18.4%

100K+25.9%

<25K12.7%

25K-50K20.3%

50K-75K22.8%

AD SPENDING

billions and % changeTotal Media Ad Spending in Canada, 2010-2016

2010

$12.12

7.8%

2011

$12.76

5.3%

2012

$13.51

5.8%

2013

$14.00

3.6%

2014

$14.47

3.3%

2015

$14.91

3.1%

2016

$15.36

3.0%

Total media ad spending % change

Note: in US$; includes digital (online and mobile), directories, magazines,newspapers, outdoor, radio and TV; converted at the exchange rate ofUS$1=C$0.99Source: eMarketer, Sep 2012145512 www.eMarketer.com

Comparative Estimates: Total Media Ad Spending in Canada, 2010-2014

Total ad spending (billions)eMarketer*, July 2012GroupM**, July 2012

PwC***, June 2012

MAGNAGLOBAL*, June 2012

ZenithOptimedia*, June 2012

Total ad spending growth (% change)PwC, June 2012

eMarketer, July 2012Carat, March 2012

Warc, Feb 2012

ZenithOptimedia, June 2012

GroupM, July 2012

Nielsen, April 2012

2010

$12.1$12.5

$11.7

-

$10.5

-

7.8%-

-

9.8%

14.0%

-

2011

$12.8$12.5

$12.2

-

$11.1

4.3%

5.3%6.1%

5.2%

5.5%

0.3%

-2.1%

2012

$13.5$13.0

$13.0

$12.3

$11.5

6.6%

5.8%5.4%

5.1%

3.9%

3.9%

-

2013

$14.0$13.4

$13.7

$12.6

$12.2

5.4%

3.6%6.1%

-

5.7%

3.2%

-

2014

$14.5-

$14.6

-

$12.9

6.6%

3.3%-

-

6.3%

-

-

Note: *converted at the exchange rate of US$1=C$0.99; **converted at theexchange rate of US$1=C$1.0272; ***converted at the exchange rate ofUS$1=C$0.9888Source: eMarketer, July 2012; various, as noted, 2012145072 www.eMarketer.com


Canada

millionsAd Spending in Canada, by Media, 2005-2014

TV

Internet*

Newspapers

Radio

Magazines

Outdoor/transport

Total

2005

$3,046

$568

$2,687

$1,330

$684

$348

$8,663

2010

$3,426

$2,301

$2,125

$1,533

$628

$487

$10,500

2011

$3,589

$2,767

$1,991

$1,625

$615

$485

$11,072

2012

$3,510

$3,277

$1,938

$1,658

$624

$497

$11,504

2013

$3,555

$3,823

$1,881

$1,732

$640

$524

$12,156

2014

$3,636

$4,428

$1,821

$1,827

$653

$554

$12,920Note: in US$; converted at the exchange rate of US$1=C$0.99; numbers may not add up to total due to rounding; *classifieds, display (including sponsorship and on-page awareness campaigns), email and searchSource: ZenithOptimedia, "Advertising Expenditure Forecasts," June 2012;provided by Starcom MediaVest Group, June 2012142245 www.eMarketer.com

billions and % changeDigital Ad Spending in Canada, 2010-2016

2010

$2.2923.6%

2011

$2.73

19.4%

2012

$3.22

17.7%

2013

$3.71

15.4%

2014

$4.18

12.5%

2015

$4.74

13.4%

2016

$5.24

10.7%

Digital ad spending % change

Note: in US$; eMarketer benchmarks its Canada digital ad spending projections against the IAB Canada data for which the last full year measured was 2010; includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets, and includes all the various formats of advertising on those platforms; excludes SMS, MMS and P2P messaging-based advertising; converted at the exchange rate of US$1=C$0.99Source: eMarketer, Sep 2012144810 www.eMarketer.com

Comparative Estimates: Digital Ad Spending in Canada, 2010-2014

Digital ad spending (billions)PwC, June 2012 (1)

ZenithOptimedia, June 2012 (2) (3)

eMarketer, Sep 2012 (2)

GroupM, July 2012 (3) (4)

BCG, March 2012

Digital ad spending growth (% change)PwC, June 2012

ZenithOptimedia, June 2012 (3)

eMarketer, Sep 2012GroupM, July 2012 (3)

2010

$2.3

$2.3

$2.3$2.0

$2.1

-

23.6%

23.6%15.0%

2011

$2.8

$2.8

$2.7$2.3

-

22.8%

20.3%

19.4%11.8%

2012

$3.4

$3.3

$3.2$2.5

-

19.9%

18.4%

17.7%10.3%

2013

$3.9

$3.8

$3.7$2.7

-

16.8%

16.7%

15.4%8.0%

2014

$4.5

$4.4

$4.2-

-

15.3%

15.8%

12.5%-

Note: (1) converted at the exchange rate of US$1=C$0.9888; (2) convertedat the exchange rate of US$1=C$0.99; (3) excludes mobile; (4) converted atthe exchange rate of US$1=C$1.0272Source: eMarketer, Sep 2012; various, as noted, 2012145079 www.eMarketer.com

millions and % changeMobile Ad Spending in Canada, 2010-2016

2010

$47.1

104.5%

2011

$80.5

70.9%

2012

$137.4

70.6%

2013

$227.3

65.4%

2014

$354.9

56.2%

2015

$555.6

56.5%

2016

$777.8

40.0%

Mobile ad spending % change

Note: in US$; eMarketer benchmarks its Canada mobile ad spendingprojections against the IAB Canada data for which the last full yearmeasured was 2010; includes display (banners and text links, tenancies,video (pre-, mid-, post-roll and in-game), messaging (SMS/MMS), paidsearch and other; converted at the exchange rate of US$1=C$0.99Source: eMarketer, Sep 2012145517 www.eMarketer.com


United States ■ US economic performance is still weak and fitful. GDP grew by just 1.7% in 2011, the IMF reported. Output will climb by an estimated 2% this year and 2.3% in 2013, unless troubles in the eurozone or elsewhere further destabilize the global financial system. Domestic setbacks, such as poor employment figures, may also slow the recovery. The IMF has already pared back its earlier forecasts for US GDP, due to “less robust growth” than anticipated in Q2 2012. On the other hand, the economy did improve by 1.7% during that quarter, compared to Q1.

■ The population of the United States is expanding by about 6 million per year, the US Census Bureau reported, and will total almost 314 million by the end of 2012.

■ TV is an integral part of life for all but a very few US residents. Nielsen noted that 96.7% of households had free-to-air TV in 2012, while 61% had a cable TV subscription and 30% watched satellite broadcasts. radio also enjoyed a large following; 82.4% of people ages 18 and older polled by GfK MrI said they were regular radio listeners. Around half (53.1%) of respondents had read a newspaper during the previous week.

■ Broadband connections will serve 68.8% of US homes this year, eMarketer predicts. The US will continue to lag behind Canada, where 75% of households will have fixed high-speed web access. Between 2013 and 2016, annual growth for wired broadband in the US will be under 3%, but the proportion of homes with fixed high-speed internet access will climb to 74%.

■ Trends in US internet penetration are typical of a mature marketplace, with growth rates in low single figures. The number of web users in the US will rise by 3.1% in 2012, to 239 million, eMarketer estimates. In 2016, an estimated 262 million residents will access the web at least once per month. US internet users were well distributed across all age groups in 2011. But web usage still correlated strongly with affluence; 32% of respondents who had gone online in the month before polling came from households with yearly income of $100,000 or more, according to GfK MrI.

■ Social networking, like web use generally, is well past the stage of meteoric growth in the US and is expanding only modestly, as most people who want to take part already do so, and new members come chiefly from the extreme ends of the age spectrum. eMarketer projects that 157.8 million people—66% of all US internet users—will visit social sites at least once per month in 2012, a rise of 6.8% from 2011. In 2016, nearly 171 million US internet users, or 68% of those online, will be social networkers. Overall, social network users were younger and less affluent than the wider online population in early 2012, according to comScore. Both groups displayed a slight

female bias, however. Facebook, itself a product of US culture, is the overwhelming favorite among social destinations, and counts nearly 90% of the country’s social network users as active members who visit the site at least once per month. Facebook’s share of the US audience will decline very gradually, eMarketer predicts, but the total number of active users will rise, reaching 152 million in 2014.

■ Mobile phone penetration in the US now exceeds that of the internet, and will reach 76.8% in 2012. In other words, nearly 243 million residents of all ages will have access to a mobile handset this year. Some 47.7% of those will have a smartphone and use it at least once a month, eMarketer estimates. By 2016, a projected 74% of mobile phone users will be smartphone owners, equivalent to 58.5% of the US population. Males form the majority of both mobile phone and smartphone audiences in 2012, constituting 52% of each group.

■ Mobile users were the most youthful US media audience during the past year. According to comScore Mobile Metrix, 45% of US mobile owners were ages 18 to 34 in February 2012, and just 15% were ages 55 and older. By contrast, some 22.5% of newspaper readers were ages 18 to 34, and nearly 40% were ages 55 and above.

■ Mobile web use is rising even more dramatically than smartphone use—a pattern that has major implications for advertisers and marketers. In 2012, more than half (50.2%) of US residents with a mobile phone will access the mobile web, and eMarketer estimates that by 2016, nearly 200 million people will go online regularly via mobile—more than 60% of the entire population.

■ Spending on all measured media in the US will approach $166 billion in 2012, according to eMarketer calculations, and reach $189 billion in 2016. Ad spending will jump 4.9% this year, boosted above all by the London Olympics and US presidential election. From 2013, annual rises in ad spending are expected to remain below 4%. Spending on TV, radio and outdoor ads will see steady incremental gains, while print media (including directories) will see budgets slipping through 2015.

■ Television is slated to claim 38.9% of all US ad spending in 2012. But spending on digital platforms will account for a respectable 22.5%, or $37.31 billion, eMarketer predicts. In 2016, budgets for internet and mobile advertising are expected to represent 28.4% of the total, as advertisers divert ever-greater sums away from traditional media. Investment in all digital formats, except mobile messaging, will increase. PwC has forecast that between 2012 and 2016, spending on paid search will grow at a compound annual rate of 13.2%,


United States

very similar to the CAGr of banners and traditional display ads (13.6%). But search will continue to account for more than twice as much expenditure overall. Mobile ad spending, the fastest-growing category, will be up 80% this year, after rising 88.5% in 2011, according to eMarketer estimates.

POPULATION

millionsUS Population, 2010-2020

309.3 313.8 319.5 325.2 331.0 336.8

Note: population as of July for each yearSource: US Census Bureau, International Data Base, June 27, 2012142257 www.eMarketer.com

2010

300

600

2012 2014 2016 2018 2020

MEDIA

% of populationUS Media Penetration, 2012

TV households 96.7%

Magazine readers* 87.9%

Radio listeners** 82.4%

Mobile phone users 76.8%

Internet users 76.0%

Cable TV households 61.0%

Newspaper readers*** 53.1%

Mobile internet users 38.5%

Smartphone users 36.6%

Satellite TV households30.0%

Note: *ages 18+, read any magazines in the past 6 months; **ages 18+,listened to at least 1/2 hour in any daypart; ***ages 18+, read anynewspaper in the past weekSource: eMarketer, 2012; GfK MRI, "2011 Survey of the AmericanConsumer—Doublebase," 2012, Nielsen Universe, Jan 2012; provided byStarcom MediaVest Group, June 1, 2012142934 www.eMarketer.com

% of totalDemographic Profile of US Media Users, 2011

GenderMale

Female

Age18-24

25-34

35-44

45-54

55-64

65+

Income<$25K

$25K-$50K

$50K-$75K

$75K-$100K

$100K+

52.0%

49.0%

18.0%

27.0%

23.0%

18.0%

15.0%(6)

-

13.0%

22.0%

19.0%

15.0%

31.0%

48.0%

52.0%

12.0%

17.0%

18.0%

20.0%

16.0%

17.0%

18.0%

23.0%

19.0%

14.0%

25.0%

48.0%

52.0%

12.0%

17.0%

18.0%

20.0%

16.0%

17.0%

15.0%

22.0%

20.0%

15.0%

28.0%

49.0%

51.0%

13.2%

18.8%

19.4%

20.7%

15.1%

12.9%

16.3%

22.4%

19.7%

14.7%

26.9%

48.0%

52.0%

8.5%

14.0%

17.2%

21.2%

17.6%

21.6%

15.0%

22.3%

19.5%

14.5%

28.8%

47.0%

53.0%

12.9%

17.9%

18.3%

19.6%

15.0%

16.2%

16.6%

22.6%

19.7%

14.3%

26.9%

Note: numbers may not add up to 100% due to rounding; (1) used in thepast 30 days; (2) data is for Feb 2012; (3) used for at least 1/2 hour in anydaypart in the past week; (4) used in the past week (5) read in the past 6months; (6) data is for ages 55+Source: comScore Mobile Metrix, "Demographic Profile," Feb 2012, GfKMRI, "2011 Survey of the American Consumer—Doublebase," 2012;provided by Starcom MediaVest Group, June 1, 2012142935 www.eMarketer.com

Internet users (1)

Mobile phone owners (2)

TV viewers (3)

Cable TV viewers (4)

Radio listeners (3)

Newspaper readers (4)

Magazine readers (5)

48.0%

52.0%

15.0%

21.0%

20.0%

20.0%

15.0%

9.0%

11.0%

20.0%

21.0%

16.0%

32.0%

INTErNET

millions, % of population and % changeUS Internet Users and Penetration, 2011-2016

2011

231.9

74.0%

3.6%

2012

239.0

75.6%

3.1%

2013

245.2

76.8%

2.6%

2014

251.2

77.9%

2.4%

2015

257.2

79.0%

2.4%

2016

262.0

79.7%

1.9%

Internet users % of population % change

Note: CAGR (2011-2016)=2.5%; individuals of any age who use the internetfrom any location via any device at least once per monthSource: eMarketer, Feb 2012136993 www.eMarketer.com


United States

Comparative Estimates: US Internet Users andPenetration, 2010-2012

Internet users (millions)

eMarketer, Feb 2012 (1)

Arbitron, April 2012 (2)

comScore Media Metrix, May 2012 (3)

Nielsen, April 2012 (4)

BCG, April 2012

Internet penetration (% of population)

Arbitron, April 2012 (2)

Pew Internet & American Life Project, June 2012 (5)

Allstate Corporation, June 2012 (5)

eMarketer, Feb 2012 (1)

ITU, July 2012

2010

223.9

-

-

-

-

-79.0%

-

72.2%-

2011

231.9

-

220.0

-

245.0

-78.0%

-

74.0%77.9%

2012

239.0

224.0

221.7

212.6

-

85.0%82.0%

82.0%

75.6%-

Note: (1) individuals of any age who use the internet from any location viaany device at least once per month; (2) ages 12+; (3) home, work anduniversity locations; (4) active users; data is for March; (5) ages 18+; use atleast occasionallySource: eMarketer, Feb 2012; various, as noted, 2012145080 www.eMarketer.com

% of totalDemographic Profile of US Internet Users, 2011

Note: used in the past 30 daysSource: GfK MRI, "2011 Survey of the American Consumer—Doublebase,"2012; provided by Starcom MediaVest Group, June 1, 2012142936 www.eMarketer.com

Gender Age

Income

Female52%

Male48%

18-2415%

25-3421%

35-4420%

45-5420%

55-6415%

65+9%

<$25K11%

$25K-$50K20%

$50K-$75K21%

$75K-$100K16%

$100K+32%

US Fixed Broadband Households and Subscriptions,2010-2016

Households (millions)—% change

—Household penetration

Subscriptions (millions)—% change

2010

77.04.1%

65.4%

84.54.3%

2011

79.73.5%

67.2%

87.13.1%

2012

82.23.1%

68.8%

89.62.8%

2013

84.52.8%

70.3%

91.82.5%

2014

86.62.5%

71.6%

93.92.3%

2.3%

72.8%

2015

88.6

95.92.1%

2016

90.52.2%

74.0%

97.82.0%

Note: eMarketer benchmarks its US broadband subscription and householdnumbers against the Federal Communications Commission (FCC), for which the last full year measured was 2009; includes connectionswith permanent access to the internet via cable modem, DSL, fiber andwireless/satellite technologies; excludes mobileSource: eMarketer, March 2012137330 www.eMarketer.com

Comparative Estimates: US Fixed BroadbandHouseholds and Penetration, 2010-2012

Fixed broadband households (millions)GroupM, April 2012

eMarketer*, April 2012FCC**, June 2012

Fixed broadband household penetration (% of households)PwC, June 2012

eMarketer*, April 2012GroupM, April 2012

Ofcom***, Dec 2011

2010

79.3

77.076.9

64.9%

65.4%65.0%

70.0%

2011

82.3

79.778.9

69.0%

67.2%67.0%

-

2012

84.9

82.2-

72.2%

68.8%68.0%

-

Note: *includes connections with permanent access to the internet viacable modem, DSL, fiber and wireless/satellite technologies; excludesmobile; **residential subscriptions of at least 200 kbps in at least onedirection; ***includes business broadband linesSource: eMarketer, April 2012; various, as noted, 2011 & 2012145081 www.eMarketer.com

US Social Network Users and Penetration, 2011-2014

Social network users (millions)—% change


—% of population

2011

147.89.8%

63.7%

47.2%

2012

157.86.8%

66.0%

49.9%

2013

164.24.1%

67.0%

51.4%

2014

170.74.0%

68.0%

52.9%

Note: internet users who use a social network site via any device at leastonce per monthSource: eMarketer, Feb 2012; confirmed and republished, Aug 2012137060 www.eMarketer.com


United States

% of internet users

Comparative Estimates: US Social Network UserPenetration, 2011 & 2012

comScore Inc.*,May 2012

Netpop Research, April 2012

Allstate Corporation,June 2012

eMarketer,Aug 2012

Ipsos**, March 2012

Experian Simmons, April 2012

Ofcom, Dec 2011

Relevation Research, March 2012

Microsoft, Jan 2012

Pew Internet &American Life Project, Aug 2011

UM, Feb 2012

2011

98.0%

-

-

63.7%

-

91.0%

78.0%

77.0%

67.0%

65.0%

64.5%

2012

99.0%

79.0%

78.0%

66.0%

61.0%

-

-

-

-

-

-

Usage

-

Use

Used in past month

Use via anydevice at least once per month

Visited in past 3 months

Use socialmedia monthly

Have set up apage or profile

Ever use socialmedia

Use

Used in past 6 months

Use 18-74

Age

-

18+

18+

All ages

18-64

-

18-64

16+

18+

16-54

Note: *data is for April; **includes social network sites, forums or blogsSource: eMarketer, Aug 2012; various, as noted, 2011 & 2012145082 www.eMarketer.com

% of totalDemographic Profile of US Social Network Users, 2012

Note: used in the past 30 daysSource: comScore, "Demographic Profile," April 2012; provided by StarcomMediaVest Group, June 1, 2012142937 www.eMarketer.com

Gender Age

Income

Female51%

Male49%

18-2412%

<1819%

25-3419%

35-6444%

65+6%

<$25K16%

$25K-$40K14%

$40K-$60K23%$60K-

$75K11%

$75K-$100K14%

$100K+22%

US Facebook Users and Penetration, 2011-20142011 2012 2013 2014

Facebook users (millions)—% change

—% of social network users


—% of population

132.513.4%

89.6%

57.1%

42.3%

141.26.6%

89.5%

59.1%

44.6%

146.73.9%

89.3%

59.8%

45.9%

152.03.6%

89.0%

60.5%

47.1%

Note: internet users who access their Facebook account via any device atleast once per monthSource: eMarketer, Feb 2012; confirmed and republished, Aug 2012137125 www.eMarketer.com

MOBILE

20112010 2012 2013 2014 2015 2016

millions, % change and % of populationUS Mobile Connections, 2010-2016

311.0

6.9%

100.2%

331.6

6.6%

105.9%

351.5

6.0%

111.1%

363.8

3.5%

113.9%

374.7

3.0%

116.2%

382.2

2.0%

117.4%

387.5

1.4%

117.9%

Mobile connections % change % of population

Note: data is for Dec of each year; eMarketer benchmarks its US mobileconnection numbers against CTIA data, for which the last full yearmeasured was 2010; includes the total number of mobile connections, formobile phones as well as for nonvoice devices, such as internet accessdevices (e.g., wireless modem cards, netbooks and mobile Wi-Fi hotspots),ereaders, tablets and telematics systems; CAGR (2011-2016)=3.2%Source: eMarketer, Aug 2012143124 www.eMarketer.com


United States

Comparative Estimates: US Mobile Connections andPenetration, 2010 & 2011

Mobile connections (millions)eMarketer*, Aug 2012CTIA-The Wireless Association, April 2012

ITU, July 2012

mobileSQUARED, Dec 2011

Datamonitor, Nov 2011

Mobile connection penetration (% of population)eMarketer*, Aug 2012ITU, July 2012

CTIA-The Wireless Association, April 2012

Ofcom, Dec 2011

2010

311.0311.0

-

-

302.9

100.2%-

-

97.8%

2011

331.6331.6

331.6

314.6

-

105.9%105.9%

104.6%

-

Note: *data is for Dec of each year; includes the total number of mobileconnections, for mobile phones as well as for nonvoice devices, such asinternet access devices (e.g., wireless modem cards, netbooks and mobileWi-Fi hotspots), ereaders, tablets and telematics systemsSource: eMarketer, Aug 2012; various, as noted, 2011 & 2012145085 www.eMarketer.com

millions, % change and % of populationUS Mobile Phone Users and Penetration, 2010-2016

2010

232.2

3.5%

74.9%

2011

237.7

2.3%

75.9%

2012

242.8

2.2%

76.8%

2013

247.5

2.0%

77.5%

2014

252.1

1.9%

78.2%

2015

256.2

1.6%

78.7%

2016

259.6

1.3%

79.0%

Mobile phone users % change % of population

Note: CAGR (2011-2016)=1.8%; individuals who own at least one mobilephone and use the phone(s) at least once per monthSource: eMarketer, April 2012; confirmed and republished, Aug 2012138170 www.eMarketer.com

% of total

Demographic Profile of US Mobile Phone Owners,2012

Source: comScore Mobile Metrix, "Demographic Profile," Feb 2012;provided by Starcom MediaVest Group, June 1, 2012142939 www.eMarketer.com

Gender Age

Income

Male52%

Female49%

18-2418%

25-3427%

35-4423%

45-5418%

55+15%

<$25K13%

$25K-$50K22%

$50K-$75K19%

$75K-$100K15%

$100K+31%

millions, % of mobile phone users and % of populationUS Smartphone Users and Penetration, 2010-2016

2010

62.626.9%

20.2%

2011

93.1

39.2%

29.7%

2012

115.8

47.7%

36.6%

2013

137.5

55.5%

43.1%

2014

157.7

62.5%

48.9%

2015

176.3

68.8%

54.2%

2016

192.4

74.1%

58.5%

Smartphone users % of mobile phone users % of population

Note: individuals of any age who own at least one smartphone and use thesmartphone(s) at least once per monthSource: eMarketer, April 2012; confirmed and republished, Aug 2012138189 www.eMarketer.com


United States

% of totalDemographic Profile of US Smartphone Owners, 2012

Source: comScore MobiLens, "Audience Profile," March 2012; provided byStarcom MediaVest Group, June 1, 2012142941 www.eMarketer.com

Gender Age

Income

Male52%

Female48%

18-2417%

13-176%

25-3425%35-44

21%

45-5416%

55-64 9%

65+6%

<$25K12%

$25K-$50K19%

$50K-$75K19%

$75K-$100K16%

$100K+34%

millions, % of mobile phone users and % of populationUS Mobile Internet Users and Penetration, 2010-2016

2010

78.433.8%

25.3%

2011

98.9

41.6%

31.6%

2012

121.9

50.2%

38.5%

2013

143.8

58.1%

45.0%

2014

164.1

65.1%

50.9%

2015

182.7

71.3%

56.1%

2016

198.8

76.6%

60.5%

Mobile internet users% of mobile phone users

% of population

Note: CAGR (2011-2016)=15.0%; mobile phone users of any age who accessthe internet from a mobile browser or an installed application at least once per month; use of SMS/MMS is not considered mobile internet accessSource: eMarketer, April 2012; confirmed and republished, Aug 2012138179 www.eMarketer.com

% of total

Demographic Profile of US Mobile Internet Users,2012

Note: accessed/used a web browser in the past 30 daysSource: comScore MobiLens, "Audience Profile," March 2012; provided byStarcom MediaVest Group, June 1, 2012142944 www.eMarketer.com

Gender Age

Income

Male52%

Female48%

18-2418%

13-178%

25-3425%

35-4421%

45-5415%

55-64 9%

65+4%

<$25K14%

$25K-$50K21%

$50K-$75K19%

$75K-$100K15%

$100K+31%

AD SPENDING

billions and % changeUS Total Media Ad Spending, 2010-2016

$153.72

4.2%

$158.26

2.9%

$165.96

4.9%

$171.66

3.4%

$178.37

3.9%

$183.23

2.7%

$189.23

3.3%

Total media ad spending % change

Note: includes digital (online and mobile), directories, magazines,newspapers, outdoor, radio & TVSource: eMarketer, Sep 2012144489 www.eMarketer.com

2010 2011 2012 2013 2014 2015 2016


United States

billions

Comparative Estimates: US Total Media Ad Spending,2011-2016

Jefferies, Sep 2012

PwC, June 2012

J.P. Morgan, July 2011

Barclays Capital, May 2012

Pivotal Research Group, June 2012

ThinkEquity LLC,May 2012

Deutsche Bank,Nov 2011

Citigroup InvestmentResearch, Dec 2011

eMarketer,Sep 2012

ZenithOptimedia,June 2012

GroupM, July 2012

MAGNAGLOBAL,June 2012

Strategy Analytics, Feb 2012

VSS, Sep 2011

Kantar Media,March 2012

2011

$191.99

$172.00

$173.60

$173.70

-

$173.50

$174.20

$172.90

$158.26

$154.10

$147.20

-

-

$188.20

$144.00

2012

$195.83

$184.30

$181.90

$181.70

$178.60

$178.50

$178.20

$177.80

$165.96

$159.70

$152.50

$152.20

$152.10

-

-

2013

$202.20

$189.20

$186.20

$185.90

$180.70

$178.70

$179.50

$184.80

$171.66

$165.80

$157.20

$153.70

-

-

-

2014

$209.28

$202.10

$195.60

-

$188.30

$184.90

$186.10

-

$178.37

$173.60

-

-

-

-

-

2015

$216.81

$211.10

$200.80

-

$191.80

$187.70

$188.50

-

$183.23

-

-

-

-

$245.30

-

2016

-

$228.80

-

-

$201.30

$191.50

-

-

$189.23

-

-

-

-

-

-

Source: eMarketer, Sep 2012; various, as noted, 2011 & 2012144599 www.eMarketer.com

% change

Comparative Estimates: US Total Media Ad Spending Growth, 2010-2016

PwC, June 2012

Carat, March 2012

eMarketer,Sep 2012Barclays Capital, May 2012

Warc, Feb 2012

GroupM, July 2012


MAGNAGLOBAL,May 2012



Strategy Analytics, Feb 2012


Jefferies, Sep 2012

Pivotal ResearchGroup, Aug 2012

Nielsen, April 2012

Kantar Media,March 2012

2010

-

-

4.2%

4.5%

-

1.2%

2.3%

-

4.0%

4.0%

-

4.5%

5.0%

-

5.6%

-

2011

2.0%

3.8%

2.9%

1.7%

2.7%

3.3%

1.6%

-

1.0%

2.2%

0.6%

1.6%

1.7%

1.3%

2.1%

0.8%

2012

7.2%

4.9%

4.9%

4.6%

4.1%

3.6%

3.6%

3.1%

3.0%

2.9%

2.7%

2.3%

2.0%

1.4%

-

-

2013

2.7%

4.2%

3.4%

2.3%

-

3.1%

3.8%

4.0%

4.0%

0.1%

-

0.7%

3.3%

-

-

-

2014

6.8%

-

3.9%

-

-

-

4.7%

-

-

3.5%

-

3.7%

3.5%

-

-

-

2015

4.5%

-

2.7%

-

-

-

-

-

-

1.5%

-

1.3%

3.6%

-

-

-

2016

8.4%

-

3.3%

-

-

-

-

-

-

2.0%

-

-

-

-

-

-


billionsUS Total Media Ad Spending, by Media, 2011-2016

TVDigital—Mobile

Print—Newspapers*

—Magazines*

Radio**Directories*OutdoorTotal

2011

$60.66$31.99

$1.45

$35.84$20.69

$15.15

$15.20$8.17$6.40

$158.26

2012

$64.54$37.31

$2.61

$34.33$19.14

$15.19

$15.50$7.48$6.80

$165.96

2013

$66.35$42.50

$4.41

$33.10$17.97

$15.13

$15.73$6.90$7.09

$171.66

2014

$68.54$47.77

$6.62

$32.34$17.25

$15.09

$16.00$6.38$7.34

$178.37

2015

$69.91$51.95

$9.20

$31.79$16.73

$15.05

$16.08$5.93$7.56

$183.23

2016

$73.05$55.25$11.87

$31.50$16.40

$15.10

$16.13$5.53$7.76

$189.23Note: eMarketer benchmarks its US newspaper ad spending projectionsagainst the NAA; its US outdoor ad spending projections against the OAAA;and its US radio ad spending projections against the RAB. 2011 is the lastfull year measured by each benchmark; *print only; **excludes off-air anddigitalSource: eMarketer, Sep 2012144494 www.eMarketer.com


United States

% change

US Total Media Ad Spending Growth, by Media,2010-2016

Digital—Mobile

TVOutdoorRadio*Print—Magazines**

—Newspapers**

Directories**Total

2010

14.9%85.0%

9.7%4.1%7.2%-5.7%-1.8%

-8.2%

-13.0%4.2%

2011

21.7%88.5%

2.8%4.0%

-0.6%-5.7%-0.5%

-9.2%

-9.0%2.9%

2012

16.6%80.0%

6.4%6.3%2.0%

-4.2%0.3%

-7.5%

-8.5%4.9%

2013

13.9%69.0%

2.8%4.2%1.5%

-3.6%-0.4%

-6.1%

-7.8%3.4%

2014

12.4%50.0%

3.3%3.6%1.7%

-2.3%-0.3%

-4.0%

-7.5%3.9%

2015

8.7%39.0%

2.0%3.0%0.5%

-1.7%-0.2%

-3.0%

-7.0%2.7%

2016

6.4%29.0%

4.5%2.6%0.3%

-0.9%0.3%

-2.0%

-6.8%3.3%

Note: eMarketer benchmarks its US newspaper ad spending projectionsagainst the NAA; its US outdoor ad spending projections against the OAAA;and its US radio ad spending projections against the RAB. 2011 is the lastfull year measured by each benchmark; *excludes off-air and digital;**print onlySource: eMarketer, Sep 2012144503 www.eMarketer.com

billions and % changeUS Digital Ad Spending, 2010-2016

2010

$26.29

14.9%

2011

$31.99

21.7%

2012

$37.31

16.6%

2013

$42.50

13.9%

2014

$47.77

12.4%

2015

$51.95

8.7%

2016

$55.25

6.4%

Digital ad spending % change

Note: includes advertising that appears on desktop and laptop computersas well as mobile phones and tablets, and includes all the various formatsof advertising on those platforms; data through 2011 is derived fromIAB/PwC dataSource: eMarketer, Sep 2012144424 www.eMarketer.com

billions

Comparative Estimates: US Digital Ad Spending,2010-2016

Forrester Research,Aug 2011

Winterberry Group, Jan 2012

IDC, Oct 2011

Barclays Capital, May 2012

Jefferies, Sep 2012

ThinkEquity LLC, May 2012eMarketer,Sep 2012Pivotal ResearchGroup, June 2012


GroupM, July 2012

J.P. Morgan,July 2011

MAGNAGLOBAL,Oct 2011

PwC, June 2012

Deutsche Bank, July 2011


Strategy Analytics,Feb 2012

IAB, April 2012

BCG, March 2012

Digital TV ResearchLimited, Oct 2011

2010

-

-

$30.24

$26.04

$26.04

$26.04

$26.29

-

$26.04

$28.80

$26.04

$26.05

$25.40

$25.60

$23.10

-

$26.04

$26.04

$23.95

2011

$34.46

$34.60

$34.41

$31.74

$31.74

$31.74

$31.99

-

$31.50

$32.20

$30.60

$31.13

$30.10

$30.40

$26.00

-

$31.74

-

-

2012

$41.00

$40.60

$40.56

$37.50

$37.50

$37.50

$37.31

$36.97

$36.80

$35.40

$35.40

$34.73

$34.70

$33.80

$30.60

$27.40

-

-

-

2013

$49.57

-

$47.25

$44.00

$44.08

$43.70

$42.50

$41.98

$41.90

$39.90

$40.20

$37.32

$39.80

$36.90

$36.20

-

-

-

-

2014

$58.51

-

$54.73

$51.30

$49.81

$50.10

$47.77

$47.06

-

-

$45.00

$40.23

$45.10

$40.10

$42.90

-

-

-

-

2015

$67.89

-

$62.43

$58.90

$54.42

$56.50

$51.95

$52.56

-

-

$49.60

$43.41

$51.00

$43.30

-

-

-

-

-

2016

$76.62

-

-

$66.40

-

$62.80

$55.25

$58.55

-

-

-

$46.94

$57.40

-

-

-

-

$47.00

$39.98



United States

% change

Comparative Estimates: US Digital Ad Spending Growth, 2010-2016

Barclays Capital, May 2012Jefferies, Sep 2012


IDC, Oct 2011


PwC, June 2012


CitigroupInvestmentResearch, Dec 2011

eMarketer,Sep 2012MAGNAGLOBAL,May 2012


GroupM, July 2012

Strategy Analytics, Feb 2012IAB, April 2012

DMA, Oct 2011

Pivotal ResearchGroup, June 2012

2010

14.9%

14.9%

15.0%

14.1%

13.5%

-

-

15.0%

14.9%

-

14.4%

10.5%

-

-

-

-

2011

21.9%

21.9%

22.0%

13.8%

12.6%

21.9%

19.8%

21.0%

21.7%

21.9%

18.8%

12.0%

-

21.9%

-0.8%

-

2012

18.3%

18.2%

18.0%

17.9%

17.9%

17.5%

17.4%

17.0%

16.6%

12.2%

11.1%

10.0%

6.7%

-

-

-

2013

17.3%

17.5%

16.0%

16.5%

18.3%

16.8%

-

14.0%

13.9%

-

9.3%

12.5%

-

-

-

13.6%

2014

16.4%

13.0%

15.0%

15.8%

18.3%

15.5%

-

-

12.4%

-

8.6%

-

-

-

-

12.1%

2015

14.8%

9.3%

13.0%

14.1%

-

15.4%

-

-

8.7%

-

8.0%

-

-

-

-

11.7%

2016

12.8%

-

11.0%

-

-

15.0%

-

-

6.4%

-

-

-

-

-

-

11.4%


billionsUS Digital Ad Spending, by Format, 2010-2016

Search

Display

—Banner ads

—Video

—Rich media

—Sponsorships

Classifieds anddirectories

Leadgeneration

Mobilemessaging

Email

Total

2010

$12.00

$9.91

$6.23

$1.42

$1.54

$0.72

$2.60

$1.34

$0.25

$0.20

$26.29

2011

$15.10

$12.33

$7.55

$2.00

$1.65

$1.12

$2.58

$1.52

$0.25

$0.21

$31.99

2012

$17.58

$14.98

$8.68

$2.93

$1.82

$1.56

$2.60

$1.71

$0.23

$0.22

$37.31

2013

$19.76

$17.67

$9.60

$4.14

$2.03

$1.90

$2.71

$1.90

$0.23

$0.23

$42.50

2014

$21.73

$20.69

$10.27

$5.75

$2.38

$2.28

$2.81

$2.09

$0.22

$0.24

$47.77

2015

$23.32

$23.13

$10.87

$6.99

$2.69

$2.59

$2.88

$2.17

$0.21

$0.24

$51.95

2016

$24.45

$25.21

$11.29

$8.04

$3.03

$2.86

$2.95

$2.20

$0.20

$0.24

$55.25Note: includes advertising that appears on desktop and laptop computersas well as mobile phones and tablets on all formats mentioned; datathrough 2011 is derived from IAB/PwC dataSource: eMarketer, Sep 2012144427 www.eMarketer.com

billionsUS Digital Ad Spending, by Format, 2011-2014

2011 2012 2013 2014

Paid search $13.25 $14.28 $15.81 $17.48

Online display $6.24 $5.90 $5.26 $4.36

Social media $1.30 $2.26 $2.34 $2.88

Mobile $1.04 $1.81 $2.39 $2.43

Real-time bidding - $1.11 $2.79 $5.10

Total digital $21.83 $25.38 $28.59 $32.26Source: Starcom MediaVest Group, Aug 2012145208 www.eMarketer.com

billions and % changeUS Mobile Ad Spending, 2010-2016

2010

$0.77

85.0%

2011

$1.45

88.5%

2012

$2.61

80.0%

2013

$4.41

69.0%

2014

$6.62

50.0%

2015

$9.20

39.0%

2016

$11.87

29.0%

Mobile ad spending % change

Note: includes display (banners, rich media and video), search andSMS/MMS/P2P messagingSource: eMarketer, Sep 2012144570 www.eMarketer.com


United States

millions

Comparative Estimates: US Mobile Ad Spending,2010-2016

Jefferies, Sep 2012

Barclays Capital,May 2012


Forrester Research, Aug 2011

eMarketer,Sep 2012PwC, June 2012

mobileSQUARED,Dec 2011


BIA/Kelsey, April 2012


William Blair &Company, May 2011

MAGNAGLOBAL,June 2011

IDC, Dec 2011

PQ Media, Feb 2012

IAB, April 2012

J.P. Morgan, July 2011

2010

$743

$640

$640

-

-

$641

-

-

-

$580

$580

$424

-

-

-

-

2011

$1,596

$1,600

$1,600

$1,652

$1,451

$1,596

$1,340

$1,200

$800

$780

$853

$666

$2,100

$1,790

$1,596

$1,200

2012

$2,813

$2,790

$2,790

$2,777

$2,611

$2,581

$2,010

$1,800

$1,300

$1,170

$1,117

$920

-

-

-

-

2013

$4,408

$4,330

$4,330

$4,238

$4,413

$3,762

-

-

$2,100

$1,760

$1,545

$1,182

-

-

-

-

2014

$5,479

$6,280

$6,060

$5,697

$6,620

$5,235

-

-

$2,900

$2,660

$2,043

$1,458

-

-

-

-

2015

$6,530

$8,480

$7,880

$7,057

$9,201

$7,100

-

-

$3,900

-

$2,700

$1,743

-

-

-

-

$11,869

2016

-

$10,590

$9,460

$8,237

$9,360

-

-

$5,000

-

-

-

-

-

-

-


% change

Comparative Estimates: US Mobile Ad Spending Growth, 2010-2016

eMarketer, Sep 2012Jefferies, Sep 2012

Barclays Capital,May 2012

Forrester Research, Aug 2011

PwC, June 2012

BIA/Kelsey, April 2012

Winterberry Group,Jan 2012

mobileSQUARED,Dec 2011


PQ Media LLC, Feb 2012

MAGNAGLOBAL,Jan 2012

Yankee Group, July 2011

IAB, April 2012

Pivotal ResearchGroup, June 2012

2010

85.0%

78.6%

-

-

-

-

-

-

47.0%

-

-

31.5%

-

-

2011

88.5%

114.8%

149.0%

-

149.0%

-

41.2%

-

36.2%

60.9%

-

33.9%

149.0%

-

2012

80.0%

76.2%

75.0%

68.5%

61.7%

58.8%

50.2%

50.0%

49.0%

48.7%

44.2%

33.3%

-

-

2013

69.0%

56.7%

55.0%

52.5%

45.8%

44.4%

-

-

51.0%

-

-

32.4%

-

44.4%

2014

50.0%

24.3%

45.0%

34.4%

39.2%

30.8%

-

-

51.0%

-

-

30.8%

-

35.1%

2015

39.0%

19.2%

35.0%

23.9%

35.6%

25.5%

-

-

-

-

-

-

-

30.0%

2016

29.0%

-

25.0%

-

31.8%

20.3%

-

-

-

-

-

-

-

26.1%


millionsUS Mobile Ad Spending, by Format, 2010-2016

Search

Display

—Rich media

—Banners

—Video

SMS/MMS/P2Pmessaging

Total

$23.3

$209.9

$29.3

2010

$253.2

$262.5

$253.9

$769.6

2011

$652.8

$546.9

$244.2

$234.6

$68.2

$251.0

$1,450.7

2012

$1,279.5

$1,104.6

$495.6

$457.5

$151.5

$227.2

$2,611.3

2013

$2,206.5

$1,981.4

$882.7

$798.6

$300.1

$225.1

$4,413.0

2014

$3,329.6

$3,071.5

$1,372.6

$1,169.3

$529.6

$218.4

$6,619.5

$828.1

2015

$4,563.8

$4,425.7

$1,978.7

$1,618.9

$211.6

$9,201.1

2016

$5,756.7

$5,911.0

$2,645.5

$2,078.6

$1,186.9

$201.8

$11,869.5

Note: numbers may not add up to total due to roundingSource: eMarketer, Sep 2012144574 www.eMarketer.com

For endnotes related to select charts in this section, see page ENA-1.


eMarketer DefinitionsThe following definitions refer only to charts sourced to eMarketer. For additional information about other charts, please see the Endnotes sections.

MEDIA USAGE AND ADVErTISING ■ Digital ad spending includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets, and includes all the various formats of advertising on those platforms; data through 2011 is derived from IAB/PwC data; excludes SMS, MMS and P2P messaging-based advertising.

■ Facebook users are internet users who access their Facebook account via any device at least once per month.

■ Fixed broadband households have permanent connections to the internet via cable modem, DSL, fiber and wireless/satellite technologies. Fixed broadband estimates exclude mobile broadband subscriptions (data cards, dongles, and 3G- and 4G-enabled mobile phones and PDAs).

■ Fixed broadband subscriptions are permanent connections to the internet via cable modem, DSL, fiber and wireless/satellite technologies. Fixed broadband estimates exclude mobile broadband subscriptions (data cards, dongles, and 3G- and 4G-enabled mobile phones and PDAs). Subscription figures include both residential households and commercial businesses.

■ Internet users are individuals of any age who use the internet from any location via any device at least once per month.

■ Mobile ad spending includes display (banners, rich media and video) and search; excludes SMS, MMS and P2P messaging-based advertising; includes ad spending on tablets. Display data includes banners, rich media and video on WAP sites and mobile HTML sites and embedded in-application/in-game advertising. Search data includes advertising on search engines, search applications and carrier portals.

■ Mobile internet users are mobile phone users of any age who access the internet from a mobile browser or an installed application at least once per month. SMS and MMS are not considered mobile internet access.

■ Mobile connections includes the total number of mobile connections, for mobile phones as well as for nonvoice devices, such as internet access devices (e.g., wireless modem cards, netbooks and mobile Wi-Fi hotspots), ereaders, tablets and telematics systems.

■ Mobile phone users are individuals of any age who own at least one mobile phone and use the phone(s) at least once per month.

■ Smartphone users are individuals who own at least one smartphone and use the smartphone(s) at least once per month. Smartphones are any voice handset with an advanced operating system (e.g., Android, BlackBerry, iOS, Windows Mobile, etc.) and features/capabilities that resemble a PC.

■ Social network ad revenues include paid advertising appearing within social network sites, social network games and social network applications; excludes spending by marketers that goes toward developing or maintaining a social network presence.

■ Social network users are internet users who use a social network site via any device at least once per month. Social network sites are defined as sites where the primary activities involve creating a profile and interacting with a network of contacts by sharing status updates, comments, photos or other content.

■ Total media ad spending includes directories, digital (online and mobile), magazines, newspapers, outdoor, radio and TV.

GEOGrAPHIC rEGIONS ■ Asia-Pacific: American Samoa, Armenia, Australia, Azerbaijan, Bangladesh, Bhutan, Brunei, Burma, Cambodia, China, Cook Islands, Fiji, French Polynesia, Guam, Hong Kong, India, Indonesia, Japan, Kiribati, Kyrgyzstan, Laos, Macau, Malaysia, Maldives, Marshall Islands, Micronesia, Mongolia, Nauru, Nepal, New Caledonia, New Zealand, Northern Mariana Islands, North Korea, Pakistan, Palau, Papua New Guinea, Philippines, Samoa, Singapore, Solomon Islands, South Korea, Sri Lanka, Taiwan, Thailand, Tajikistan, Timor-Leste, Tonga, Turkmenistan, Tuvalu, Uzbekistan, Vanuatu, Vietnam, Wallis and Futuna

■ Eastern Europe: Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech republic, Estonia, Georgia, Hungary, Kazakhstan, Kosovo, Latvia, Lithuania, Moldova, Montenegro, republic of Macedonia, Poland, romania, russia, Serbia, Slovakia, Slovenia, Turkey, Ukraine


eMarketer Definitions

■ Latin America: Anguilla, Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize, Bolivia, Brazil, Cayman Islands, Chile, Colombia, Costa rica, Cuba, Dominica, Dominican republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Montserrat, Netherlands Antilles, Nicaragua, Panama, Paraguay, Peru, Saint-Barthelemy, Saint Kitts and Nevis, Saint Lucia, Saint Martin, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, Turks and Caicos Islands, Uruguay, Venezuela, Virgin Islands (British), Virgin Islands (US)

■ Middle East & Africa: Afghanistan, Algeria, Angola, Bahrain, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African republic, Chad, Comoros, Congo (Brazzaville), Congo (Kinshasa), Cote d’Ivoire, Djibouti, Egypt, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Gaza Strip, Ghana, Guinea, Guinea-Bissau, Iran, Iraq, Israel, Jordan, Kenya, Kuwait, Lebanon, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mayotte, Morocco, Mozambique, Namibia, Niger, Nigeria, Oman, Qatar, rwanda, Saint Helena, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, Sudan, Swaziland, Syria, Tanzania, Togo, Tunisia, Uganda, United Arab Emirates, West Bank/Palestine, Western Sahara, Yemen, Zambia, Zimbabwe

■ North America: Canada, US

■ Western Europe: Andorra, Austria, Belgium, Denmark, Faroe Islands, Finland, France, Germany, Gibraltar, Greece, Greenland, Guernsey, Iceland, Ireland, Isle of Man, Italy, Jersey, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland, UK

The Global Media Intelligence Report: North America Copyright ©2012 eMarketer, Inc. All rights reserved. ENA-1

Endnotes Endnote numbers correspond to the unique six-digit identifier in the lower left corner of each chart. The charts from the report are repeated before their respective endnotes.

145066Citation: comScore Inc., “2012 Canada Digital Future in Focus,” March 1, 2012; International Telecommunication Union (ITU), “World Telecommunication Indicators Database,” July 2012; PMB Print Measurement Bureau, Spring 2012; Statistics Canada, “2010 Canadian Internet Use Survey,” Oct 12, 2011

145067Citation: Canadian radio-television and Telecommunications Commission (CrTC), “Communications Monitoring report,” Sep 4, 2012; GroupM, “Interaction 2012,” April 9, 2012; Office of Communications (Ofcom) – UK, “International Communications Market report 2011” with contribution from IDATE and industry data, Dec 15, 2011; PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates, “Global Entertainment and Media Outlook: 2012–2016 ,” June 12, 2012

145068Citation: comScore, “It’s a Social World: Top 10 Need-to-Knows About Social Networking and Where It’s Headed,” Dec 21, 2011; Ipsos, “Interconnected World: Communication & Social Networking,” March 27, 2012; Microsoft, “Online Profile & reputation Perceptions Study” conducted by blueocean market intelligence, Jan 24, 2012; Statistics Canada, “2010 Canadian Internet Use Survey,” Oct 12, 2011

145071Citation: Canadian Wireless Telecommunications Association (CWTA) based on company reports, March 2006–May 2012; Datamonitor, Nov 2011; International Telecommunication Union (ITU), “World Telecommunication Indicators Database,” July 2012; Media Technology Monitor (MTM), “Wireless Adoption and Use” as cited in press release, Nov 1, 2011; Office of Communications (Ofcom) – UK, “International Communications Market report 2011” with contribution from IDATE and industry data, Dec 15, 2011

145072Extended Note: Carat, GroupM, MAGNAGLOBAL and ZenithOptimedia include cinema, internet, magazines, newspapers, outdoor, radio and TV. Nielsen is based mainly on published rate cards and includes cinema, internet,

magazines, newspapers, outdoor, radio and TV. PwC includes cinema, directories, internet, magazines (consumer and trade), mobile, out-of-home, radio, TV, video games. Warc includes cinema, internet (display, classifieds and search), magazines, newspapers, outdoor, radio and TV; totals for individual media include both display and classified advertising.

Citation: Carat as cited in press release, March 15, 2012; GroupM, “This Year, Next Year Summer 2012,” July 19, 2012; MAGNAGLOBAL, “Advertising Forecasts 2012,” June 18, 2012; Nielsen, “Global AdView Pulse Lite: Q4 2011,” April 9, 2012; PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates, “Global Entertainment and Media Outlook: 2012–2016 ,” June 12, 2012; ZenithOptimedia, “Advertising Expenditure Forecasts,” June 2012; provided by Starcom MediaVest Group, June 2012

142245Extended Note: Advertising data for 2005–2010 from TVB, Statistics Canada, CrTC, CAN, CCNA, Les Hebdos du Quebec, Magazines Canada and IAB Canada; and 2012-2014 from agency forecasts. Data shown is after discounts and excludes production costs and agency commissions. Newspaper data includes dailies only and magazine data excludes trade titles. TV and radio figures are based on broadcast year end. IAB (internet) implemented 2008 revised classification of online revenue, estimated to account for half the growth in classifieds.

145079Extended Note: eMarketer benchmarks its Canada digital ad spending projections against the IAB Canada data for which the last full year measured was 2010. PwC includes wired formats—classifieds, display, email, lead generation, rich media, search, video and other—and mobile. Zenith Optimedia includes classifieds, display (including sponsorship and on-page awareness campaigns), email and search.

Citation: Boston Consulting Group (BCG), “The $4.2 Trillion Opportunity: The Internet Economy in the G-20,” March 19, 2012; GroupM, “This Year, Next Year Summer 2012,” July 19, 2012; PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates, “Global Entertainment and Media Outlook: 2012–2016 ,” June 12, 2012; ZenithOptimedia, “Advertising Expenditure Forecasts,” June 2012; provided by Starcom MediaVest Group, June 2012


Endnotes

145080Citation: Allstate Corporation and National Journal, “Heartland Monitor Poll,” June 7, 2012; Arbitron and Edison research, “The Infinite Dial 2012: Navigating Digital Platforms,” April 10, 2012; Boston Consulting Group, “China’s Digital Generations 3.0: The Online Empire,” April 12, 2012; comScore Networks as cited in Barclays Capital, “1Q12 Advertising Almanac: Upbeat Tone,” May 21, 2012; International Telecommunication Union (ITU), “World Telecommunication Indicators Database,” July 2012; Nielsen as cited in company blog, April 26, 2012; Pew Internet & American Life Project, “Older Adults and Internet Use,” June 6, 2012

145081Citation: Federal Communications Commission (FCC), “Internet Access Services: Status as of June 30, 2011,” June 14, 2012; GroupM, “Interaction 2012,” April 9, 2012; Office of Communications (Ofcom) – UK, “International Communications Market report 2011” with contribution from IDATE and industry data, Dec 15, 2011; PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates, “Global Entertainment and Media Outlook: 2012–2016 ,” June 12, 2012

145082Citation: Allstate Corporation and National Journal, “Heartland Monitor Poll,” June 7, 2012; comScore Networks as cited in Barclays Capital, “1Q12 Advertising Almanac: Upbeat Tone,” May 21, 2012; Experian Marketing Services, “The 2012 Digital Marketer: Benchmark and Trend report,” April 5, 2012; Ipsos, “Interconnected World: Communication & Social Networking,” March 27, 2012; Microsoft, “Online Profile & reputation Perceptions Study” conducted by blueocean market intelligence, Jan 24, 2012; Netpop research, “Social Media in the U.S.” as cited in MediaPost, April 16, 2012; Office of Communications (Ofcom) – UK, “International Communications Market report 2011,” Dec 15, 2011; Pew Internet & American Life Project, “65% of online adults use social networking sites,” Aug 26, 2011; relevation research, “Social Media Exploration,” March 23, 2012; UM, “The Business of Social: Social Media Tracker 2012,” Feb 23, 2012

145085Extended Note: CTIA includes any device associated with a revenue-generating subscription that operates on licensed Commercial Mobile radio Services (CMrS) spectrum; includes mobile phones and smartphones; wireless-enabled modems, notebooks or tablets; and portable or built-in telematics systems; tablets or other devices that only connect via Wi-Fi

and are not associated with a revenue-generating subscription are excluded. eMarketer benchmarks its US mobile connection numbers against CTIA data, for which the last full year measured was 2010.

Citation: CTIA–The Wireless Association, “Semi-Annual Wireless Industry Survey,” April 13, 2012; Datamonitor, Nov 2011; International Telecommunication Union (ITU), “World Telecommunication Indicators Database,” July 2012; mobileSQUArED and adsmobi, “USA: The United Smartphones of America,” Dec 5, 2011; Office of Communications (Ofcom) – UK, “International Communications Market report 2011” with contribution from IDATE and industry data, Dec 15, 2011

144599Extended Note: Barclays and Pivotal research include direct mail, directories, internet, magazines, newspapers, outdoor, political and Olympics, radio and TV. Deutsche Bank includes direct mail, directories, internet, magazines, newspapers, outdoor, radio and TV. GroupM, MAGNAGLOBAL and ZenithOptimedia include cinema, internet, magazines, newspapers, outdoor, radio and TV. Kantar includes internet, magazines, newspapers, outdoor, radio and TV. PwC includes cinema, directories, internet, magazines (consumer and trade), mobile, out-of-home, radio, TV, video games. VSS includes broadcast TV, business magazines, consumer magazines, entertainment and books, newspapers, outdoor, pure-play internet, pure-play mobile, radio, subscription TV and yellow pages.

Citation: Barclays Capital, “U.S. Internet & Media,” May 16, 2012; Citigroup Investment research, Dec 8, 2011; Deutsche Bank, “DB Ad Forecast Update,” Nov 29, 2011; GroupM, “This Year, Next Year Summer 2012,” July 19, 2012; Jefferies, “Internet: Back to Basics With a Focus on Quality,” Sep 4, 2012; J.P. Morgan, “Internet Sector Initiation,” July 13, 2011; Kantar Media as cited in press release, March 2012; MAGNAGLOBAL, “Advertising Forecasts 2012,” June 18, 2012; Pivotal research Group, “Advertising Strategy: Looking Better, At Least For Now,” June 14, 2012; PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates, “Global Entertainment and Media Outlook: 2012–2016 ,” June 12, 2012; Strategy Analytics, “Global Advertising Forecast” as cited in press release, Feb 27, 2012; ThinkEquity LLC, “Internet: Internet,” May 11, 2012; Veronis Suhler Stevenson (VSS) as cited in press release, Sep 28, 2011; ZenithOptimedia, “Advertising Expenditure Forecasts–June 2012,” June 19, 2012


Endnotes

145364Extended Note: Barclays and Pivotal research include direct mail, directories, internet, magazines, newspapers, outdoor, political and Olympics, radio and TV. Deutsche Bank includes direct mail, directories, internet, magazines, newspapers, outdoor, radio and TV. Carat, GroupM, MAGNAGLOBAL and ZenithOptimedia include cinema, internet, magazines, newspapers, outdoor, radio and TV. Kantar includes internet, magazines, newspapers, outdoor, radio and TV. PwC includes cinema, directories, internet, magazines (consumer and trade), mobile, out-of-home, radio, TV, video games. VSS includes broadcast TV, business magazines, consumer magazines, entertainment and books, newspapers, outdoor, pure-play internet, pure-play mobile, radio, subscription TV and yellow pages. Warc includes cinema, internet (display, classifieds and search), magazines, newspapers, outdoor, radio and TV; totals for individual media include both display and classified advertising.

Citation: Barclays Capital, “U.S. Internet & Media,” May 16, 2012; Carat as cited in press release, March 15, 2012; Citigroup Investment research, Dec 8, 2011; Deutsche Bank, “DB Ad Forecast Update,” Nov 29, 2011; GroupM, “This Year, Next Year Summer 2012,” July 19, 2012; Jefferies, “Internet: Back to Basics With a Focus on Quality,” Sep 4, 2012; Kantar Media as cited in press release, March 17, 2011; MAGNAGLOBAL, “US Advertising Forecast,” May 1, 2012; Nielsen, “Global AdView Pulse Lite: Q4 2011,” April 9, 2012; Pivotal research Group as cited by MediaPost, Aug 15, 2012; PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates, “Global Entertainment and Media Outlook: 2012–2016 ,” June 12, 2012; Strategy Analytics, “Global Advertising Forecast” as cited in press release, Feb 27, 2012; ThinkEquity LLC, “Internet: Internet,” May 11, 2012; Warc, “International Advertising Forecast,” Nov 2011 & Feb 2012; ZenithOptimedia, “Advertising Expenditure Forecasts–June 2012,” June 19, 2012

144601Extended Note: Barclays includes classifieds/directories, display, email, lead generation, mobile, rich media, search, sponsorships and video. Digital TV research defines online advertising in net terms (rate card prices less discounts, agency commissions and production costs). These figures are for advertising expenditure via fixed broadband, and therefore do not include mobile advertising. Forrester includes display, email, mobile, search and social media. GroupM excludes classifieds. IAB includes display ads (such as banners), search ads (including paid listings, contextual text links, paid inclusion and site optimization), rich media, online video (in-page, pre-

roll and post-roll), classified ads and auctions, sponsorships, referrals (lead generation), email (embedded ads only) and mobile (static or rich media display ads, text messaging, search ads and audio/video spot). IDC includes display and paid search. Jefferies includes banner ads, classifeds/auctions, email, referrals/lead generation, mobile, rich media, search, sponsorships and video. J.P. Morgan includes classifieds, display, email, lead generation and search. MAGNAGLOBAL includes classifieds, display, email, lead generation, mobile, online video, paid search, rich media and yellow pages. PwC includes wired formats—classifieds, display, email, lead generation, rich media, search, video and other—and mobile. Strategy Analytics includes both classified/display/other and search ads. Winterberry includes display, email, lead generation and affiliate services, mobile, search and social apps, widgets and listening platforms. ZenithOptimedia includes search, display, classifieds, rich media, video, social media, mobile, internet radio and podcasts.

Citation: Barclays Capital, “U.S. Internet & Media,” May 16, 2012; Boston Consulting Group (BCG), “The $4.2 Trillion Opportunity: The Internet Economy in the G-20,” March 19, 2012; Citigroup Investment research, Dec 8, 2011; Deutsche Bank, “DB Mid-Year Ad Trends Survey,” July 17, 2011; Digital TV research as cited in press release, Oct 24, 2011; Forrester research, “Interactive Marketing Forecasts, 2011 to 2016 (US)” as cited in Advertising Age, Aug 24, 2011; GroupM, “This Year, Next Year Summer 2012,” July 19, 2012; Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), “IAB Internet Advertising revenue report: 2011 Full Year results” as cited in press release; eMarketer calculations, April 18, 2012; International Data Corporation (IDC) as cited in PubMatic, “Ad revenue report: Controlling Your Brand’s Future,” Oct 13, 2011; Jefferies, “Internet: Back to Basics With a Focus on Quality,” Sep 4, 2012; J.P. Morgan, “Internet Sector Initiation,” July 13, 2011; MAGNAGLOBAL, “US Media Advertising revenue Forecast,” Oct 11, 2011; Pivotal research Group, “Advertising Strategy: Looking Better, At Least For Now,” June 14, 2012; PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates, “Global Entertainment and Media Outlook: 2012–2016 ,” June 12, 2012; Strategy Analytics, “Global Advertising Forecast” as cited in press release, Feb 27, 2012; ThinkEquity LLC, “Internet: Internet,” May 11, 2012; Winterberry Group, “Outlook 2012: What to Expect in Direct and Digital Marketing,” Jan 12, 2012; ZenithOptimedia, “Advertising Expenditure Forecasts–June 2012,” June 19, 2012


Endnotes

145369Extended Note: Barclays includes classifieds/directories, display, email, lead generation, mobile, rich media, search, sponsorships and video. GroupM excludes classifieds. IAB includes display ads (such as banners), search ads (including paid listings, contextual text links, paid inclusion and site optimization), rich media, online video (in-page, pre-roll and post-roll), classified ads and auctions, sponsorships, referrals (lead generation), email (embedded ads only) and mobile (static or rich media display ads, text messaging, search ads and audio/video spot). IDC includes display and paid search. Jefferies includes banner ads, classifeds/auctions, email, referrals/lead generation, mobile, rich media, search, sponsorships and video. MAGNAGLOBAL includes classifieds, display, email, lead generation, mobile, online video, paid search, rich media and yellow pages. PwC includes wired formats—classifieds, display, email, lead generation, rich media, search, video and other—and mobile. Strategy Analytics includes both classified/display/other and search ads. Winterberry includes display, email, lead generation and affiliate services, mobile, search and social apps, widgets and listening platforms. ZenithOptimedia includes search, display, classifieds, rich media, video, social media, mobile, internet radio and podcasts.

Citation: Barclays Capital, “U.S. Internet & Media,” May 16, 2012; Citigroup Investment research, Dec 8, 2011; Deutsche Bank, “DB Ad Forecast Update,” Nov 29, 2011; Direct Marketing Association (DMA), “The Power of Direct Marketing 2011–12” as cited in “real-Time Direct Marketing,” Oct 3, 2011; GroupM, “This Year, Next Year Summer 2012,” July 19, 2012; Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), “IAB Internet Advertising revenue report: 2011 Full Year results” as cited in press release; eMarketer calculations, April 18, 2012; International Data Corporation (IDC) as cited in PubMatic, “Ad revenue report: Controlling Your Brand’s Future,” Oct 13, 2011; Jefferies, “Internet: Back to Basics With a Focus on Quality,” Sep 4, 2012; MAGNAGLOBAL, “US Advertising Forecast,” May 1, 2012; Morgan Stanley, May 18, 2011; Pivotal research Group, “Advertising Strategy: Looking Better, At Least For Now,” June 14, 2012; PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates, “Global Entertainment and Media Outlook: 2012–2016 ,” June 12, 2012; Strategy Analytics, “Global Advertising Forecast” as cited in press release, Feb 27, 2012; ThinkEquity LLC, “Internet: Internet,” May 11, 2012; Winterberry Group, “Outlook 2012: What to Expect in Direct and Digital Marketing,” Jan 12, 2012; ZenithOptimedia, “Advertising Expenditure Forecasts–June 2012,” June 19, 2012

145208Extended Note: Mobile advertising includes SMS marketing, mobile banner ads and branded mobile applications. Paid search includes Google content network and text ads served on pay-per-click (PPC) model on the search results pages of various search engines. real-time bidding (rTB) includes display, mobile and video. Social media includes branded social media applications, games and social ads. Estimates exclude classified ad spending.

144628Extended Note: BIA/Kelsey includes local and national revenues for search, display and SMS. Forrester includes mobile display and mobile search. IAB includes static or rich media display ads, text messaging, search ads and audio/video spot. William Blair includes display, rich media, location-based service and SMS/text-based ads.

Citation: Barclays Capital, “U.S. Internet & Media,” May 16, 2012; BIA/Kelsey as cited in Search Engine Watch, April 27, 2012; Forrester research, “Interactive Marketing Forecasts, 2011 to 2016 (US)” as cited in Advertising Age, Aug 24, 2011; Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), “IAB Internet Advertising revenue report: 2011 Full Year results” as cited in press release; eMarketer calculations, April 18, 2012; International Data Corporation (IDC) as cited by Bloomberg BusinessWeek, Dec 24, 2011; Jefferies, “Internet: Back to Basics With a Focus on Quality,” Sep 4, 2012; J.P. Morgan, “Internet Sector Initiation,” July 13, 2011; MAGNAGLOBAL, “US Media Forecast,” June 16, 2011; mobileSQUArED and adsmobi, “USA: The United Smartphones of America,” Dec 5, 2011; PQ Media, “US Mobile & Social Media Forecast 2012–2016 “ as cited by MediaPost; eMarketer calculations, Feb 7, 2012; PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates, “Global Entertainment and Media Outlook: 2012–2016 ,” June 12, 2012; ThinkEquity LLC, “Internet: Internet,” May 11, 2012; William Blair & Company, “The Future in Digital Media,” May 16, 2011; Winterberry Group, “Outlook 2012: What to Expect in Direct and Digital Marketing,” Jan 12, 2012; ZenithOptimedia, “Advertising Expenditure Forecasts–June 2012,” June 19, 2012

145372Extended Note: BIA/Kelsey includes local and national revenues for search, display and SMS. Forrester includes mobile display and mobile search. IAB includes static or rich media display ads, text messaging, search ads and audio/video spot. PQ Media includes banners, in-game, MMS, search, SMS outbound texts, streaming audio and video. William Blair includes display, rich media, location-based service and SMS/text-based ads.


Endnotes

Citation: Barclays Capital, “U.S. Internet & Media,” May 16, 2012; BIA/Kelsey as cited in Search Engine Watch, April 27, 2012; Forrester research, “Interactive Marketing Forecasts, 2011 to 2016 (US)” as cited in Advertising Age, Aug 24, 2011; Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), “IAB Internet Advertising revenue report: 2011 Full Year results” as cited in press release; eMarketer calculations, April 18, 2012; Jefferies, “Internet: Back to Basics With a Focus on Quality,” Sep 4, 2012; MAGNAGLOBAL, “US Advertising Forecast,” Jan 24, 2012; mobileSQUArED and adsmobi, “USA: The United Smartphones of America,” Dec 5, 2011; Pivotal research Group, “Advertising Strategy: Looking Better, At Least For Now,” June 14, 2012; PQ Media, “US Mobile & Social Media Forecast 2012–2016 “ as cited by MediaPost, Feb 7, 2012; PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates, “Global Entertainment and Media Outlook: 2012–2016 ,” June 12, 2012; Winterberry Group, “Outlook 2012: What to Expect in Direct and Digital Marketing,” Jan 12, 2012; Yankee Group, July 2011; ZenithOptimedia, “Advertising Expenditure Forecasts–June 2012,” June 19, 2012

e marketer the_global_media_intelligence_report-north_america_2012

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