1

Web 2.0 in Retail Today

Gian FulgoniChairman

comScore, Inc.

2

Source: comScore Media Metrix

Photos Videos Blogs Directories/Resources •Social Networks

•Photobucket•Flickr•Eastman Kodak•Webshots•Slide•Imageshack•SnapFish•Picasa Network•Shutterfly•AOL Pictures•Yahoo! Pictures

•YouTube•Real.com Network•WindowsMedia•MTV Networks Music•MSN Video•iTunes•MSN Music•Shockwave.com Sites•IMEEM.com•PureVideo Network•IFilm

•Blogger•Six Apart Sites•WordPress•Gawker Media•Digg.com•Xanga.coom•Yahoo! 360•Blogthings.com•HubPages•Technorati•Engadget

•Mapquest•Wikipedia Sites•Yahoo! Local Network•Google Maps•Craigslist•Superpages.com Network•My Yahoo!•Yahoo! Answers•Yellowpages•Whitepages•City Search•USPS•Answers

•MySpace•Facebook

Web 2.0 Categories and Definitions

• In August 2007:

• 158 Million People (87% of online population) Visited Web 2.0 Sites• On Average, Visitors Spent 210 Minutes Per Person• Viewing 516 Pages Per Person

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Heavy Web 2.0 TrafficAugust 2007

(in Millions)

121

93

81

56

48

Directories

Video

SocialNetworks

Photo

Blogs

Category% Change

vs. YA

8%

20%

33%

9%

23%

Craigslist +64% Change vs. YA

YouTube +135% change vs. YA

Facebook +128% Change vs. YA

Flickr +112%

Change vs. YA

Digg +294%

Change vs. YA

Source: comScore Media Metrix

M

M

M

M

M

4

Did you know…• …e-commerce sites serve FLASH content to

more than 155 million consumers?

Source: comScore Marketing Solutions, March – May 2007

Total Number of Unique Visitors Served FLASH Content(millions)

155

0

50

100

150

200

Portals

Enterta

inmen

t

Service

sReta

il

Promotion

al Serv

ers

Communit

y

News/I

nformati

on

Directo

ries/R

esource

s

Search

/Nav

igatio

n

Regiona

l/Loca

l

Teleco

mmunicati

onsSpo

rts

Games

Busines

s/Fina

nce

Mill

ions

5

Multi-Channel Retailers Embracing Technologies Like Flash

Number of Top 20 Retailers Engaging Visitors with FLASH Content

5 5

1

15

9

8

4 3

> 10% > 20% > 30% > 40% > 50%

Percent of Visitors Engaged with FLASH Content

Pure Online Multi-Channel

Source: comScore Marketing Solutions, March – May 2007

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Fourteen Online Retail Sites Engaged at Least 20% of Their Visitors with Flash Content

Source: comScore Marketing Solutions, March – May 2007

Percent of Unique Visitors Engaged with FLASH Content

66%57%

51%44%

39%38%38%

34%31%

29%26%26%25%

21%

walmart.com

target.com

officedepot.com

oldnavy.com

bestbuy.com

chadwicks.com

hsn.com

qvc.com

ups.com

dell.com

tigerdirect.com

ticketmaster.com

amazon.com

quixtar.com

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Walmart.com uses FLASH to rotate offers and

messages prominently on their home page

8

Multi-Channel retailers make their pre-prints come alive via FLASH

9

officedepot.com uses FLASH to rotate offers

prominently on their home page

10

$42 $53$67

$82$102

$28 $27

$30$40

$51

$69

$19 $20

$61

2002 2003 2004 2005 2006 Q1 2007 Q2 2007

Excluding Auctions and Managed Travel

$72

$93

$117

$143

Consumer eCommerce Dollar Sales Growth ($Billions)

Non-Travel

Travel

+29%

+26%

+22%

+20%

+26%

+33%+26%

+26%

+20%

+24%

+24%

+13%

Source: comScore Marketing Solutions, eCommerce US data

$171

$47 $47

+16% +19%

% Chgvs. YA

% Chg vs. YA

+14%

+17%

+14%

+23%

% Change vs. YA

11

50% 56% 60% 58% 55% 54% 51%

50% 44% 40% 42% 45% 49%46%

Total Usersof Web 2.0

TotalInternetDollars

ConsumerElectronics

CPG Apparel OfficeSupplies

ComputerHardware

Online Spending for Web 2.0 Usersby Product Category

Q2 2007

201M $27B $1.6B $1.8B $3.8B $2.4B $4.5B

Light Users of Web 2.0

Dollars Spent by Product Category

Heavy Users of Web 2.0

12

56%44%

34%44% 44% 46% 49%

44%56%

66%56% 56% 51%54%

UniqueVisitors

TotalInternetDollars

ConsumerElectronics

Apparel CPG ComputerHardware

OfficeSupplies

Blogs Users’ Category SpendingQ2 2007

205M $27B $1.6B $3.8B $1.8B $4.5B $2.4B

Users Of Blogs

Non-Usersof Blogs

Dollars Spent by Product Category

13

33%21% 17% 20% 20% 23% 27%

67%79% 83% 80% 80% 73%77%

UniqueVisitors

TotalInternetDollars

ConsumerElectronics

Apparel CPG ComputerHardware

OfficeSupplies

Videos Users’ Category SpendingQ2 2007

205M $27B $1.6B $3.8B $1.8B $4.5B $2.4B

Users of Videos

Non-Usersof Videos

Landed Gentry are highly represented in the Video Group – Wealthy, College Degrees, and spend heavily on Consumer Electronics and Technology.

Dollars Spent by Product Category

14

44% 41% 38% 40% 42% 43% 43%

56% 59% 62% 60% 58% 57%57%

UniqueVisitors

TotalInternetDollars

OfficeSupplies

ConsumerElectronics

Apparel ComputerHardware

CPG

Social Networks Users’ Category SpendingQ2 2007

205M $27B $2.4B $1.6B $3.8B $4.5B $1.8B

User of Social

Networks

Non-Users of SocialNetworks

On Average, Heavy Social Networking Users spend $176/buyers, $89 less than Light Users

Dollars Spent by Product Category

15

What to advertise on Social Networking sites to 18-34 year olds?

66%

54% 53% 52%47%

43% 42%38%

27% 26%

0%10%20%30%40%50%60%70%80%90%

100%

Music/

Movies/E

ntertai

nment

Consumer

Electron

ics

Apparel

Trave

l

Telec

ommunicatio

ns

Food

& Beve

rage

Automoti

ve

Finan

cial S

ervice

s

Prescri

ption M

edica

tion

OTC Med

icatio

n

% Saying they would be receptive to advertising on User Generated Content Sites

Leisure Necessities

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Thank You• For a complete copy of comScore’s

report please e-mail me at: gfulgoni@comscore.com