Mobile and Video Emerge As Significant Online Ad Platforms in the UK

1 in 4 Smartphone Users Are Exposed to Mobile Advertising and Nearly 2 Out of 3 Online Video Viewers Are Exposed to Video Ads

LONDON, UK – comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today released an analysis of the online advertising market in the United Kingdom across the general population of fixed line Internet users, online video viewers and smartphone users. Among its findings, the analysis shows mobile and video advertising gaining traction in reaching a sizeable percentage of the total audience. In June 2011, 63.1 percent (or nearly 2 out of 3 online video viewers in the UK) were exposed to video ads. Among the total number of smartphone users in the same time period, 25.4 percent recalled seeing an ad while browsing the Internet or using an application on their devices. In comparison, 95.3 percent of fixed line Internet users were exposed to online display advertising.

“Over the past few years, video and mobile have emerged as important channels for advertisers seeking to reach digital consumers,” said Mike Shaw, director of comScore Marketing Solutions. “While the penetration for video and mobile advertising has not yet reached the level that it has for online display advertising, it is likely that the penetration for these will only grow as mobile advertising continues to increase and more advertisers incorporate video as an integral part of their marketing strategy.”

Advertising Expands Reach among UK Mobile and Video Populations
Over the past two quarters, mobile advertising has seen a steady increase in reach. 5.4 million UK smartphone subscribers (25 percent overall) recalled having seen ads through a mobile browser or app in the quarter ending June 2011, representing a 28-percent increase from three months prior. In addition, nearly 8 percent of smartphone users recalled seeing ads at least once a week (up 28 percent), and 7.5 percent recalled seeing them almost every day (up 52 percent).

Of the 33.7 million online video viewers in June, 21.2 million (63.1 percent) were exposed to ad videos. While the total number of online video viewers remained constant from quarter-to-quarter, the number of unique viewers exposed to video ads rose 15 percent. Meanwhile, the online display market continued to show a high rate of penetration in the UK, with 40.0 million unique visitors exposed to online display ads in June 2011, accounting for 95.3 percent of the total UK online audience.

Online Advertising Reach in the United Kingdom
March 2011 vs June 2011
Total Audience* – Home & Work Locations
Source: comScore Ad Metrix**, Video Metrix** and MobiLens***
Online Ad Audience
Mar-11 Jun-11 % Change in Unique Audience
Unique Audience (000) % Reach Unique Audience (000) % Reach
Fixed Line Internet Audience: Exposed to Display Ads 39,683 96.1% 40,020 95.3% 0.8%
Online Video Audience: Exposed to Video Ads 18,446 54.9% 21,233 63.1% 15.1%
Smartphone Audience: Recall Seeing Web/App Ads 4,240 21.4% 5,415 25.4% 27.7%

* The Total Audience differs across the platforms measured in terms of age: Video Metrix is based on the 6+ UK video viewing audience, Ad Metrix is based on the 15+ UK online audience, and MobiLens is based on the 13+ population of UK mobile users.
**Video Metrix and Ad Metrix utilize comScore’s United Digital Measurement (UDM) methodology that combines census-level data with the comScore panel.
***MobiLens is based on a survey panel that is nationally representative of mobile subscribers.

15-24 Year Olds Most Likely to be Exposed to Online Video Ads and Smartphone Ads
A demographic analysis of people exposed to online advertising revealed that 15- 24 year olds were the most heavily exposed to online ad videos. Nearly 70 percent of 15-24 year olds were exposed to at least one online ad video in June 2011 – approximately 7 percentage points higher than the total Internet audience. 15-24 year olds were also 10 percent more likely than the average video viewer to be exposed to video ads, while 25-34 year olds have the second highest penetration and were 4 percent more likely than average to be exposed.

Online Video Advertising Reach in UK by Demographics
June 2011
Total Audience: Age 6+ – Home & Work Locations
Source: comScore Video Metrix
Online Video Ad Audience
Total Unique Viewers (000) % Reach Among Online Video Population Index to Online Video Audience*
Total Online Video Audience Exposed to Video Ads: 6+ yrs old 21,233 63.1% 100
Age 15-24 4,310 69.4% 110
Age 25-34 4,066 65.6% 104
Age 35-44 3,710 62.8% 100
Age 45-54 3,574 64.3% 102
Age 55+ 3,731 61.0% 97

*An index of 100 indicates average representation relative to the base audience.

15-24 year olds see an even more pronounced relative skew when it comes to exposure to mobile advertising. In June 2011, 31.6 percent of UK smartphone users age 15-24 recalled having seen ads on an app or browser, the highest penetration among age groups. With an index of 125, 15-24 year olds were 25 percent more likely than the average smartphone user to recall exposure to mobile advertising. Meanwhile, 45-54 year olds and those 55 and older showed a significantly lower likelihood than average of recalling mobile ad exposure.

Mobile Advertising Reach Among Smartphone Users in UK by Demographics
June 2011
Total Audience: Age 13+
Source: comScore MobiLens
Recall Seeing Web/App Ads
Total Audience (000) % Reach Among Smartphone Audience Index to Smartphone Audience*
Total Smartphone Audience Who Recall Seeing Web/App Ads: 13+ yrs old 5,415 25.4% 100
Age 15-24 1,566 31.6% 125
Age 25-34 1,533 29.6% 117
Age 35-44 1,125 25.1% 99
Age 45-54 580 19.5% 77
Age 55+ 534 15.9% 63

*An index of 100 indicates average representation relative to the base audience.

“The penetration of mobile and online video advertising market shows greater variation across age groups, compared to the online display advertising market which already reaches an equally high percentage of users across all ages,” added Shaw. “This indicates an opportunity for advertisers looking for ways to efficiently target younger audiences, who are heavier online video viewers and mobile users. These audiences are likely to carry these behaviors with them as they mature, underscoring the future potential for video and mobile advertising.”

About comScore
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