state of the internet worldwide

State of the Internet WorldwideState of the Internet Worldwide

January 29, 2008

MEASURING THE DIGITAL WORLD

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It’s called the “world” wide web for a reasonIt’s called the “world” wide web for a reason

Online Population Growth over TimeOnline Population Growth over Time

0

200

400

600

800

1,000

Mil

lio

ns o

f In

tern

et

Users

International Growth almost twice U.S. Growth

Online Population by GeographyOnline Population by Geography

23%

34%

77%

66%

1996 2007

`

Rest of the World

United States

■ In 1996, two-thirds of the world’s online population was in the U.S.

■ Today, the U.S. only accounts for 23% of Worldwide users

Source: comScore World Metrix, October 2007

International Y/Y Growth =

10.1%

U.S. Y/Y Growth = 5.2%


Online Populations by RegionOnline Populations by Region

Worldwide Online PopulationWorldwide Online Population

804.5730.9

Worldwide

Millions of Internet Users +10.1%

Worldwide Y/Y Growth is at 10.1%Worldwide Y/Y Growth is at 10.1%

171.8 165.6

51.1 48.8 31.7

299.3

182.8 172.8

55.3 56.537.8

261.8

Asia Pacific North America Western Europe Eastern Europe Latin America Mid East & Africa

Millions of Internet Users

+14.3%

+6.4% +4.4%

+8.2% +15.8% +19.0%

■ There are 74 million more Internet users today than this time last year

■ Current growth is being driven by the Asia Pacific region, with a 14.3% increase on a very large base

Oct 2006

Oct 2007



Internet Users (Millions) in Asia Pacific Region Internet Users (Millions) in Asia Pacific Region

Emerging countries are fueling growthEmerging countries are fueling growth

October 2006 October 2007 % Growth

Asia Pacific (Total Region) 261.8 299.3 +14%

China 83.1 95.7 +15%

Japan 54.1 54.0 +0%

South Korea 26.0 26.0 +0%

India 19.8 25.2 +27%

Australia 9.7 10.5 +8%

Taiwan 8.8 10.1 +14%

Malaysia 7.0 7.9 +12%

Hong Kong 3.4 3.6 +8%

Singapore 2.1 2.3 +8%

New Zealand 1.9 2.0 +10%

■ China and India made the biggest percent gains over the past year, with China growing by 15% and India growing by 27%

■ This translates to 12.6 million new web users in China and 5.4 million in India



Projected Online Population GrowthProjected Online Population Growth March 2010 Projected DistributionMarch 2010 Projected Distribution

1,012

804

0

200

400

600

800

1,000

1,200

Jul-06

No

v-06

Mar-07

Jul-07

Oct-07

Mar-08

Jul-08

No

v-08

Mar-09

Jul-09

No

v-09

Mar-10

1 Billion Users by March 20101 Billion Users by March 2010

Measured

Projected


■ Projecting future populations based on current growth rates, there will be 1 billion internet users by March 2010

■ 4 out of every 10 will be in Asia, and only 2 out of 10 will be in North America

Asia Pacific, 41.5%

North America,

20.1%

Western Europe, 17.3%

Eastern Europe, 7.5%

Latin America, 7.9%Middle East

and Africa, 5.7%

Projected Regional Distribution of Worldwide Online Population,

March 2010

Internet users 15+ accessing the internet from a Home or Work computer


Internet Users Around the GlobeInternet Users Around the Globe

Most Internet Users by CountryMost Internet Users by Country

182.2

95.7

54.0

33.4

32.4

27.8

26.0

25.2

23.7

17.7

United States

China

Japan

Germany

United Kingdom

France

Korea (South)

India

Canada

Italy


■ China now has the second-largest presence on the internet, but per-visitor usage is below the worldwide average

■ The heaviest internet users can be found in Canada, the U.K., and Israel

Heaviest Internet UsersHeaviest Internet Users

43.4

36.0

35.8

35.0

33.5

33.0

32.7

31.6

30.3

29.6

Canada

United Kingdom

Israel

Argentina

Brazil

Venezuela

Sweden

Chile

United States

Korea (South)

WW average = 26.2

Millions of Internet Users* Hours per Internet User per Month

*Internet users 15+ accessing the internet from a Home or Work computer


Fastest Growing Site Categories by RegionFastest Growing Site Categories by Region

Source: % YOY Growth in Unique Visitors, comScore World Metrix, October 2007

Y/Y Growth

Entertainment - News 44%

Radio 38%

Women 37%

Classifieds 33%

Teens 32%

Training and Education 29%

Health - Information 25%

Photos 23%

North AmericaNorth America

Y/Y Growth

Shipping 160%

TV 115%

Classifieds 114%

Gay/Lesbian 103%


Online Trading 77%

Entertainment - News 77%

Home 75%

Latin AmericaLatin America

Y/Y Growth

Health Care 233%

Job Search 204%

Genealogy 201%

Taxes 172%

Financial Information/Advice 114%

Classifieds 107%

Teens 103%

Photos 100%

MidEast-AfricaMidEast-Africa

Y/Y Growth

Teens 254%

Politics 147%

Radio 137%

Reference 117%

Incentives 110%

Financial Information/Advice 104%

Genealogy 90%

Telecommunications 82%

Asia-PacificAsia-Pacific

Y/Y Growth


Multimedia 43%

Sports/Outdoor 41%

Teens 40%

Radio 32%

Jewelry/Luxury Goods/Accessories

29%

Consumer Goods 29%

Entertainment - Music 27%

Western EuropeWestern Europe


Top Sites are Truly GlobalTop Sites are Truly Global

Worldwide Top 10 PropertiesWorldwide Top 10 Properties

Google Sites

Microsoft Sites

Yahoo! Sites

Time WarnerNetwork

eBay

Wikipedia Sites

Fox InteractiveMedia

Amazon Sites

CNET Networks

Ask Network

`

Total WWUnique

Visitors (MM)Non-U.S. Audience

U.S.Audience

583.4

539.4

495.9

275.0

253.7

244.5

161.0

160.3

135.4

131.4

77%

78%

72%

56%

69%

77%

48%

65%

74%

58%

■ Though they are all based in the United States, the Top 10 Global properties source the majority of their audience from outside the U.S.

■ About three-quarters of Google, Microsoft, and Yahoo’s audience is outside the U.S.



Global Top Sites’ Reach vs. EngagementGlobal Top Sites’ Reach vs. Engagement

■ High reach does not always translate to deep engagement. Though Google is the worldwide leader in reach, Microsoft and Yahoo! hold the user’s attention for significantly longer.

■ The Chinese property TENCENT (owner of QQ) emerges as a global high-engagement site, as does Social Networking provider FACEBOOK.COM.

Worldwide Reach & Usage: Top PropertiesWorldwide Reach & Usage: Top Properties



The Top Three Vie for Users Around the GlobeThe Top Three Vie for Users Around the Globe

Google Sites, 72.5

Google Sites, 64.3

Microsoft Sites, 67.0

Microsoft Sites, 68.8

Yahoo! Sites, 61.6

Yahoo! Sites, 65.1

Oct-06

Nov-06

Dec-06

Jan-07

Feb-07

Mar-07

Apr-07

May-07

Jun-07

Jul-07

Aug-07

Sep-07

Oct-07

`

Top 3 Worldwide Properties TrendTop 3 Worldwide Properties TrendReach of All Internet Users Worldwide, 15+


■ Among the top properties, Google’s growth has been the most dramatic, its worldwide reach growing from 64.3% in October 2006 to 72.5% in October 2007


Microsoft takes significant share of time onlineMicrosoft takes significant share of time online

■ However, it is Microsoft that captures the largest share of users’ time online, with a worldwide average of 4.8 hours per user per month

■ There are clear regional preferences that are worthy of note: Microsoft is dominant in Latin America and the Middle East/Africa, while Yahoo! gets heavier usage in North America and Asia/Pacific

WWAsia -Pacific

North America

EuropeLatin

AmericaMidEast & Africa

Google Sites 6% 5% 4% 7% 18% 7%

Microsoft Sites 13% 7% 8% 17% 34% 22%

Yahoo! Sites 9% 15% 11% 3% 4% 9%


Share of Regional Duration on Top 3 SitesShare of Regional Duration on Top 3 Sites


Share of Duration on Top Properties per RegionShare of Duration on Top Properties per Region

Asia Pacific

EuropeNorth

America

Middle East - Africa

Latin America

Top 10 Sites’ Share of Total Minutes in each Region

36% 35% 39% 45% 61%

U.S. Sites among Top 10 28% 34% 39% 44% 57%

Local Sites among Top 10 8% 1% 0% 1% 2%

All Other among Top 10 0% 0% 0% 0% 3%

Asia Pacific Europe NorthAmerica

MidEast-Africa

LatinAmerica

U.S. Sites Local Sites All Other

`

Top 10 Sites per Region: Share of DurationTop 10 Sites per Region: Share of Duration

% of Regional Minutes Spent on

Top 10 Sites 36%35%

39% 45%

61%

■ In Latin America, the top 10 properties account for 61% of total duration

■ Asia Pacific is the only region where there is a locally-based Top 10 site which accounts for a significant portion of online activity – TENCENT (parent property of QQ), which accounts for 4.0% of all time spent online in the Asia Pacific region



Share of Duration on Top 10 Properties in Asia PacificShare of Duration on Top 10 Properties in Asia Pacific

24%

30%

Austra

lia

New Zea

land

Taiwan

South

Kor

ea

Singa

pore

Mala

ysia

Japa

nIn

dia

Hong K

ong

China

US Sites Local Sites All Other

`

% of Country Duration Spent on

Top 10 Sites46%


49%51%

46% 44% 51%

36%

54%

42% 37%

Top 10 Sites per Country: Share of DurationTop 10 Sites per Country: Share of Duration

■ China and South Korea lead in time spent on local sites in Asia Pacific

■ In China, 7 of the top 10 sites are Chinese properties


Top 10 countries based on Total Search VolumeTop 10 countries based on Total Search Volume

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

UnitedStates

China Japan UnitedKingdom

Germany France SouthKorea

Canada Italy Brazil

■ More than 68 Billion online searches were conducted Worldwide in Oct 2007. China occupies the 2nd position in total online searches, contributing to 10% of the Worldwide searches

21%

10%

8%

6%5%

5% 4% 4%3% 2%

Sea

rch

Vo

lum

e

Total Searches

(MM)

Worldwide 68,799

United States 14,471

China 6,565

Japan 5,802

United Kingdom 4,206

Germany 3,747

South Korea 2,855

France 2,724

Canada 2,611

Italy 1,724

Brazil 1,664

Top 10 Countries by Search VolumeTop 10 Countries by Search Volume



Short-term upside in Chinese search marketShort-term upside in Chinese search market

■ U.S. and China lead in Search volume & Searchers, but lag in search frequency

■ U.K. and South Korea generate highest searches per searcher

■ Only 87% of people online from China use search – plenty of room for the search market to quickly gain additional penetration


Total Searches (MM)Total Searches (MM) Searches per SearcherSearches per Searcher Searcher ConversionSearcher Conversion

14,471

6,565

5,802

4,206

3,747

2,855

2,724

2,611

1,724

1,664

United States

China

Japan

United Kingdom

Germany

France

Korea

Canada

Italy

Brazil

78.1

79.1

98.3

128.7

108.3

114.4

121.0

118.3

105.7

103.6

United States

China

Japan

United Kingdom

Germany

France

Korea

Canada

Italy

Brazil

91.3

87.2

91.7

93.5

92.1

92.0

90.9

93.7

91.9

94.3

United States

China

Japan

United Kingdom

Germany

France

Korea

Canada

Italy

Brazil

Worldwide avg = 88.8


Globally, Google Still DominatesGlobally, Google Still Dominates

Search Property

Total Searches

(MM)Share of Searches

Google Sites 42,398 61.6%

Yahoo! Sites 8,770 12.7%

Baidu.com Inc. 3,741 5.4%

Microsoft Sites 2,154 3.1%

NHN Corporation 1,881 2.7%

eBay 1,461 2.1%

Time Warner Network

1,208 1.8%

Ask Network 837 1.2%

Fox Interactive Media

588 0.9%

FACEBOOK.COM 553 0.8%

All Others 5,206 7.6%

■ In terms of numbers of searches, Google dominates global activity by a wide margin

Global Share of Total SearchesGlobal Share of Total Searches


Baidu.com Inc., 5.4

Google Sites, 61.6

Microsoft Sites, 3.1 NHN

Corporation, 2.7

Time Warner Network, 1.8

Ask Network, 1.2

All Other, 11.4

Yahoo! Sites, 12.7


Traditional Outlets Take New Life OnlineTraditional Outlets Take New Life Online

■ Accessibility and convenience of getting movies, television, games, music, and radio online drove more people to spend their leisure time on the Internet

■ Entertainment categories reached 613 million people online in October, 76 percent of the Worldwide online population

Entertainment Category GrowthEntertainment Category Growth

140.3

35.3

152.3 184.6

20.0

613.1

151.6

45.3

170.6217.9

27.8

532.5

World-Wide North America Latin America Europe Asia Pacific Middle East -Africa

Millions of Unique Visitors to Entertainment Sites

+15%

+8%

+28%

+12% +18% +39%

Oct 2006

Oct 2007



Growth in Entertainment ConsumptionGrowth in Entertainment Consumption

■ Growth in Unique Visitors is relatively modest when compared to the growth in usage: on average, people spent 43% more time on Entertainment sites than they did last year

■ In Asia Pacific, average time spent on Entertainment sites almost doubled

■ The more mature North American market saw the smallest growth in time spent

Entertainment EngagementEntertainment Engagement

2.5

1.61.9

1.51.3

2.62.9

2.2 2.4

2.9

1.71.8


Hours per Visitor on Entertainment Sites

+43%+17%

+41%+27%

+97%

+24%

Oct 2006

Oct 2007



Multimedia Sites Poised for Growth in 2008Multimedia Sites Poised for Growth in 2008

% Penetration of Entertainment Categories% Penetration of Entertainment Categories% Penetration

■ North America has the highest penetration rates in almost every category

■ Increased adoption of BB will spur additional growth, particularly in Asia Pacific, where Entertainment categories currently under-index

0

10

20

30

40

50

60

70

80

90

TotalEntertain-

ment

Multimedia Music TV Movies Radio Kids News Humor

`

Worldwide

North America

Latin America

Europe

Asia Pacific

Mid East - Africa



YouTube Is the Leader in EntertainmentYouTube Is the Leader in Entertainment

■ Youtube has emerged as the worldwide leader in Entertainment, attracting 230 million visitors worldwide in October 2007, who spent an average of 93 minutes per visitor on the site

■ YouTube experienced rapid growth around the world – more than doubling its audience base in every region

+48%

+43%+43%

YOUTUBE.COM UV Growth by RegionYOUTUBE.COM UV Growth by Region

25.1 22.3

9.73.8

86.0

58.049.3

24.112.7

34.3

Europe North America Asia Pacific Latin America Middle East - Africa


+151%

+132%

+121%

+149%

+231%

Oct 2006

Oct 2007



Online Gaming Continues to GrowOnline Gaming Continues to Grow

■ Visitation to Gaming sites* attracted 369 million people worldwide in October 2007

■ North American growth is flat, though European market continues to grow

■ Middle East and Africa have largest percentage growth, on smaller base

Gaming Category GrowthGaming Category Growth

81

19

90 109

11

369

87

26

108132

16

309


Millions of Unique Visitors to Gaming Sites*

+20%

+8%

+39%

+20% +21%

+57%

Oct 2006

Oct 2007


* Gaming Sites are defined as online or downloadable games, excluding gambling sites and console games


… and Gamers Spend More Time Playing… and Gamers Spend More Time Playing

■ Though UV growth in North America was in the single digits, engagement grew by 27% over the past year, and North Americans continue to spend the most time on Gaming sites

Gaming EngagementGaming Engagement

2.6

1.4

2.21.9

1.2

2.4

3.4

1.8

2.5

1.8 1.82.1


Hours per Visitor on Gaming Sites

+11%

+27%

+27%

+10%

-3% +46%

Oct 2006

Oct 2007



In Online Communication, Email Blazed the TrailIn Online Communication, Email Blazed the Trail

Webmail Users by RegionWebmail Users by Region

137

40

132 154

22

556

145

47

139197

28

486


Millions of Unique Visitors to Webmail Sites

+14%

+6%

+16%

+6% +28%

+24%

Oct 2006

Oct 2007


■ Low growth in North America and Europe reflects online population growth in those regions

■ In regions where the Internet is still developing, such as Asia Pacific and Middle East/Africa, the number of email users is still showing robust growth


Webmail Dominated by Global BrandsWebmail Dominated by Global Brands

262.2

256.4

87.1

48.9

31.4

Yahoo! Mail

Windows LiveHotmail

Google Gmail

AOL Email

QQ.COM Mail

`

Top Worldwide Webmail ServicesTop Worldwide Webmail Services

Millions of Unique Visitors

■ Yahoo! Mail and MSN’s Hotmail are the clear leaders in web-based email

■ Chinese QQ.com’s mail service rounds out the top five, its dominance driven solely by usage in Asia



Significant Time is Spent on Instant MessengersSignificant Time is Spent on Instant Messengers

■ Real-time communication clearly continues to have widespread appeal, as Internet users around the world increase their IM usage substantially

■ People in Latin America spent the most time using Instant Messengers, averaging 10.6 hours per month

Instant Messenger EngagementInstant Messenger Engagement

5.9

7.86.3

3.8

6.47.5

6.5

10.69.0

5.4

8.4

5.6


Hours per Visitor per Monthon Instant Messengers

+33% +10%

+35%

+42%

+42%

+32%

Oct 2006

Oct 2007



Regional Preferences Among ChannelsRegional Preferences Among Channels

Regional Penetration of Communication ChannelsRegional Penetration of Communication Channels

■ Latin America’s use of the Internet as a Communication tool is clear: webmail, IMs, and Social Networking sites all index higher than the worldwide average, and penetration rates there are the highest among all regions

69%

79% 82%

61%66%

73%

48%44%

73%

52%

42%

60%63%70%

79%

60% 59% 62%


`


Webmail

Instant Messengers

Social Networking


The Growth of Social NetworkingThe Growth of Social Networking

Source: comScore World Metrix, November 2006 – October 2007

Social Networking GrowthSocial Networking Growth

■ Social Networking sites are experiencing tremendous growth all over the world■ In the Asia Pacific region, these sites are growing at a rate that is almost three

times the category’s growth in North America

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Nov-2006

Dec-2006

Jan-2007

Feb-2007

Mar-2007

Apr-2007

May-2007

Jun-2007

Jul-2007

Aug-2007

Sep-2007

Oct-2007

Middle East Africa Asia-Pacific Europe Latin America North America

Unique Visitors (000)


Social Networking Across RegionsSocial Networking Across Regions

21%

51%

7%

12%

62%

9%

13%

27%

50%

17%

62%

22%

30%

24%

77%

35%

14%

98%

14%

89%

23%

9%

43%

29%

10%

9%

9%

6%

BEBO.COM

CyWorld

FACEBOOK.COM

FRIENDSTER.COM

HI5.COM

MYSPACE.COM

Orkut

Skyrock Network

Windows LiveSpaces

North America Latin America Europe Asia Pacific Middle East - Africa

`

Global Distribution of Visitors to Top Social Networking Sites

Global Distribution of Visitors to Top Social Networking Sites

■ MySpace’s audience is predominantly North American and European

■ Facebook now draws at least 10% of its traffic from Asia and the Middle East

■ Friendster’s audience is primarily in Asia Pacific, with only 7% in North America

■ Orkut and Hi5.com have sizable share in Latin America

■ Windows Live Spaces has most balanced audience, and drew an audience of 118 million in October, more than both MySpace and Facebook



71.5%59.4%62.5%

76.7%82.4%67.4%

World NorthAmerica

Latin America Europe Asia Pacific Middle Eastand Africa

Widgets and the Distributed WebWidgets and the Distributed Web

■ The rise of Social Networking has precipitated a surge in widget viewership: two-thirds of the online population, nearly 600 million people, viewed a widget in October 2007

■ North America had the highest widget penetration rates

65.5% 67.4%64.3%

Aug-08 Sep-08 Oct-08

% of Regional Population

Source: comScore Widget Metrix, October 2007. WidgetMetrix currently reports on embedded Shockwave Flash (.swf) objects only. Desktop widgets are not included in this report.

% of Worldwide Population

Worldwide Widget ReachWorldwide Widget Reach Widget Penetration by RegionWidget Penetration by Region

Unique Visitors

(MM) 597.3 169.6 47.7 154.7 195.6 29.7561.3 575.7 597.3


Countries with Highest Widget ReachCountries with Highest Widget Reach

82.1%

81.7%

79.6%

82.4%

82.7%

85.0%

86.5%

86.5%

87.2%

82.2%

Canada

Malaysia

India

Singapore

Puerto Rico

North America

Portugal

United Kingdom

United States

Colombia

Countries with Highest Widget ReachCountries with Highest Widget Reach

% Reach of Country’s Online Population

Source: comScore Widget Metrix, October 2007. WidgetMetrix currently reports on embedded Shockwave Flash (.swf) objects only. Desktop widgets are not included in this report.

■ Among individual countries, Canada had the highest widget penetration rates

■ Three countries in Asia, Malaysia, India, and Singapore are among the Top 10 countries with highest widget reach


Summary of Key FindingsSummary of Key Findings

■ Lower U.S. contribution to worldwide

■ Compelling offerings needed for global internet landscape

■ China & South Korea giving U.S. sites a run for their money

■ Broadband driving usage outside U.S.– Facilitates multimedia & online entertainment

– The “Youtube” effect

■ Below average penetration & consumption of China internet user base represents enormous opportunity

■ Social Networking continues enormous growth globally– At the expense of Community sites, e-cards & personals web sites

Thank youThank you

Jack Flanagan

Executive Vice President

[email protected]

MEASURING THE DIGITAL WORLD

state of the internet worldwide

Documents

internet users millions

internet worldwidejanuary

comscore world metrix

written permission

worldwide yy growth

new web users

international yy growth

yoy growth