1. How Online Advertising Works
Gian Fulgoni, Chairman, comScore, Inc.
Digital Age 2.0
Sao Paulo, August 27, 2009

2. Topics
Who is comScore?
State of Online Advertising Today
Online Display Advertising and the Relevance of
the Click
The View-Through Impact of Display Advertising
© comScore, Inc. Proprietary and Confidential. 2

3. Who is comScore?
A leader and innovator in Internet audience measurement
Corporate headquarters: Reston, USA
– Offices in London, Paris, Tokyo, NYC, Chicago, San Francisco, Seattle
Toronto, Dusseldorf, Singapore
Year founded: 1999 Current employees: 500+
Successful IPO (NASDAQ: SCOR) June 2007
Number of clients: 1,200+ (200+ advertising agencies)
The world’s recognized source for Internet audience intelligence
– Monthly reporting on 40 countries, powerful interface & analytic tools
– Hundreds of custom research studies completed each year for advertisers, publishers
– Leading source for US e-commerce data, online behavior, video, mobile, widgets etc.
– comScore data cited 200 times per day in the global media
100% digital DNA
© comScore, Inc. Proprietary and Confidential. 3
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4. comScore’s Powerful Platform: Global Panel of 2 Million Internet Users
Largest of Its Kind
The Only Global Measurement of
The Only Global Measurement of
360° View of Consumer Behavior
360° View of Consumer Behavior
Audience and e-Commerce
Audience and e-Commerce
Web Visiting
Web Visiting
and Viewing
and Viewing
Demographics
Demographics Online
Online
Life Stages
Life Stages Transactions
Transactions
Streaming
Streaming Search
Search
Video
Video Behavior
Behavior
37 Media Metrix Reported Countries
Plus Global Regions Media
Media
Exposure
Exposure
170+ Countries with Sample Presence
© comScore, Inc. Proprietary and Confidential. 4

5. How Online Advertising Works
The State of Online Advertising Today
© comScore, Inc. Proprietary and Confidential. 5

6. Online Display Advertising in Brazil Growing Very Strongly
Brazil Online Display Ad Spend $R ‘000
Source: IAB
+44% vs. YA
© comScore, Inc. Proprietary and Confidential. 6

7. Online display advertising accounts for 4% of all media spending in
Brazil (7% with search) but lags TV which accounts for 60%
Including search, online
advertising estimated
to be 7% of all media
© comScore, Inc. Proprietary and Confidential. 7

8. In the U.S., Internet was 8% of all advertising spending and 34% of all TV ad
dollars in 2008. Source: IAB
2008 Spending
($Billions)
MEDIUM Percent
Direct Mail $60.0 20%
Newspapers $34.4 12%
TV - Distribution $28.8 10%
Internet $23.4 8%
TV Networks - Cable $21.4 7%
TV Networks - Broadcast $18.0 6%
Radio $17.2 6%
Yellow Pages $13.8 5%
Consumer Magazines $12.7 4%
Trade Journals $10.0 3%
Out of Home $7.2 2%
Miscellaneous $50.0 17%
TOTAL $296.8 100%
© comScore, Inc. Proprietary and Confidential. 8

9. U.S. Internet Ad Revenues Surged in 2007 but Growth
Slowed in 2008 and Went Negative in 2009
Quarterly Ad Revenue ($Billions)
7
7
6
6
5
5
4
4
3
3
2
2
1
1
0
Q1 Q3
0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1
98 99 00 01 02 03 04 05 06 07 08 09
© comScore, Inc. Proprietary and Confidential. 9

10. Growth in U.S. Online Ad Spending Went Negative in Q1 2009
$ Billions and % Chg vs YA
+29% +27% +23% +13% +11% +3% -5%
Source: PricewaterhouseCoopers and the Internet Advertising Bureau (IAB)
© comScore, Inc. Proprietary and Confidential. 10

11. Online Advertising is Leaving Branding Dollars on the Table
2008 U.S. Measured Media Spend:
$186 Billion
Branding
$118 B
2008 U.S. Online Media Spend:
Online as Percent of Total $26 Billion
5% $6 B
30% $20 B
Response
Direct
$68 B
Source: Lehman Brothers, ThinkEquity Partners
© comScore, Inc. Proprietary and Confidential. 11

12. How Online Advertising Works
Display Advertising and the
Relevance of the Click
© comScore, Inc. Proprietary and Confidential. 12

13. Business Week: So Many Ads, So Few Clicks
Forrester: 35% of Marketers still use click for evaluating branding campaigns
Source: DoubleClick DART for Advertisers, January – July 2008
© comScore, Inc. Proprietary and Confidential. 13

14. Ad Clickers Follow the 80/20 Rule
Source: comScore Natural Born Clickers (2008)
• Despite only representing 16% of the Internet population, moderate to
heavy clickers account for 80% of display ad clicks
• Clickers are predominately younger (24-44 age range)
• Clickers tend to be lower income (under $40K)
• Two-thirds of Web users don’t click
Click Frequency
© comScore, Inc. Proprietary and Confidential. 14

15. How Online Advertising Works
The View-through Impact of
Display Advertising
© comScore, Inc. Proprietary and Confidential. 15
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16. June 2009 Journal Of Advertising Research:
comScore’s “Whither the Click?”
Journal of Advertising Research
“What We Know About Advertising: 21 Watertight Laws
for Intelligent Advertising Decisions”
– The 21 most important pieces of advertising research
comScore’s “Whither the Click?”
– 200+ comScore studies conducted to assess impact of paid
search and online display ads on:
• site visitation
• trademark search
• online and offline sales
© comScore, Inc. Proprietary and Confidential. 16
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17. comScore’s Analytical Design
Real world analysis: comScore panelists divided into matched groups
(exposed and non-exposed to advertising)
– Search only
– Display ads only
– Search and display ads
– Neither
Passively measured behavior, no surveys involved:
– Online activity through comScore behavioral panel
– Linked to in-store buying through retailer loyalty cards and POS scanner data
Analytical design compares behavioral changes in test and control groups
from pre-campaign to campaign time periods
© comScore, Inc. Proprietary and Confidential. 17

18. The impact of display ads on site visitation: There is a significant impact within the 1st
week, with a substantial lift being observed over the four weeks following initial ad
exposure …..even with minimal clicks
Results from 139 comScore Campaign Effectiveness Studies
A d ve rtis e r S ite R e a c h
6.6%
5.8%
4.8%
4.5%
3.9%
3.5%
3.1%
2.1%
% Lif t: 65.0% % Lif t: 53.8% % Lif t: 49.1% % Lif t: 45.7%
W eek o f f irs t W eeks 1-2 af ter W eeks 1-3 af ter W eeks 1-4 af ter
ex p o s ure f irs t ex p o s ure f irs t ex p o s ure f irs t ex p o s ure
Co ntro l Tes t
© comScore, Inc. Proprietary and Confidential. 18
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19. Display Ads Lift Site Visitation Across All Verticals
A d v e r tis e r S ite R e a c h
W e e k s 1 -4 a fte r fir s t e x p o s u r e
4.5% % L i f t: 4 6 %
A v e ra g e , N = 1 3 9 ? L if t: 2 .1 %
6.6%
0.9% % L i f t: 1 1 4 %
A u t o m o t iv e , N = 3 8 ? L i f t: 1 .0 %
1.9%
1.3% % L if t: 8 6 %
F in a n c e , N = 1 6 ? L i f t: 1 .1 %
2.3%
0.6% % L if t: 7 7 %
C P G & R e s t a u ra n t , N = 1 0 ? L i f t: 0 .5 %
1.1%
9.1% % L i f t: 5 2 %
R e t a il & A p p a re l, N = 2 1 ? L if t: 4 .7 %
13.8%
7.0% % L i f t: 4 2 %
M e d ia & E n t e rt a in m e n t , N = 2 4 ? L i f t: 2 .9 %
10.0%
5.8% % L i f t: 2 5 %
E le c t ro n ic s & S o f t w a re , N = 1 4
7.2% ? L if t: 1 .5 %
4.8% % L i f t: 2 1 %
Tra v e l, N = 9
5.8% ? L i f t: 1 .0 %
C o n tro l T est
© comScore, Inc. Proprietary and Confidential. 19

20. Display ads successfully lift trademark search activity
Results from 139 comScore Campaign Effectiveness Studies
% Making a TM/Brand Search
0.9%
0.7%
0.6%
0.5%
0.5%
0.4%
0.3%
0.2%
% Lif t: 52.3% % Lif t: 46.0% % Lif t: 40.3% % Lif t: 38.1%
Week o f f irst Weeks 1-2 af ter Weeks 1-3 af ter Weeks 1-4 af ter
exp o sure f irst exp o sure f irst exp o sure f irst exp o sure
Co ntro l Test
© comScore, Inc. Proprietary and Confidential. 20

21. Display ads successfully build sales…. both online and offline
$ per 000 Exposed
% L if t : 1 6 . 6 %
$11,550
$ 9 ,9 0 5
% L if t : 2 7 . 1 %
$994 $ 1 ,2 6 3
O n li n e O f f lin e
C o n t ro l Te s t
© comScore, Inc. Proprietary and Confidential. 21

22. For multi-channel retailers, higher OFFLINE sales lifts are seen from search
vs. display advertising, but combined, synergy provides an even greater lift
Incremental Lift in Retailers’ Offline Sales per (000) Exposed
Source: comScore Ad Effectiveness Solutions
+119%
© comScore, Inc. Proprietary and Confidential. 22

23. For multi-channel retailers, the higher reach of display ads often helps lift
total offline sales more than does search. But, synergy gains can be
obtained by using display overlaid on a search campaign
• The overall number of people reached by display ads is typically much
higher than search
• As a result, even though the sales lift among those exposed to a search
ad is higher, the total dollar sales gained from display ads is often larger
than search due to the smaller lift acting on a larger base
% of Households Reached Incremental Impact on Offline Sales per
(000) Exposed Total Sales Volume Lift Index
198
+11%
Note: 0 equals par in above chart.
© comScore, Inc. Proprietary and Confidential. 23 Source: comScore Ad Effectiveness Solutions

24. 82% of Online Ad Campaigns Measured by comScore have Generated an
Average Lift of 22% in CPG Brand Sales in Retail Stores
Campaigns we have analyzed:
– Cookie Mixes, Cereal, Frozen Snacks, Pizza, Tea, Toothpaste, Juice Drinks,
Deodorants, Snack Bars, Pasta, Meals and many more
Online advertising (banners and rich media) increased (i.e. lifted)
offline sales in 80% of all campaigns
100%
80%
60%
Percent Lift in
Average $ lift was22%
Dollar Sales
40%
20% 82% of campaigns showed
a positive sales lift
0%
Offline Sales Effectiveness Studies
-20%
© comScore, Inc. Proprietary and Confidential. 24 Source: comScore CPG Ad Effectiveness Study
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25. Preliminary comScore Findings: Short Term Retail CPG Brand
Sales Lift From Online Advertising Matches Long Term TV Impact
BehaviorScan tests conducted over one year period. comScore studies over three months
Assumes 40% Internet Reach Against Target
© comScore, Inc. Proprietary and Confidential. 25

26. How Online Advertising Works: Summary
Forget the Click
Focus on sales or behavioral impact over time
Online branding campaigns can be very effective:
– Internet sales impact at retail on a par with TV
Use R / F metrics in pre-planning and post-analysis of
media plan
Don’t forget importance of creative
© comScore, Inc. Proprietary and Confidential. 26

27. How Online Advertising Works
For a copy of “Whither the Click?” or this presentation please e-mail:
brazil@comscore.com
For a schedule of webinars, complimentary data & press releases please visit:
www.comscore.com
© comScore, Inc. Proprietary and Confidential. 27