The 2009 Benchmark and Trend Report

7/31/2019 The 2009 Benchmark and Trend Report

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April 2009

The 2009 digital marketer:Benchmark and trend report

Consumer insight E-mail marketing Search marketing Online communities and

social media Mobile marketing The future of digital advertising


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Page 4 | The 2009 digital marketer

Table of ContentsExecutive summary ...........................................................................................................6

Introduction ........................................................................................................................7

Consumer insight ........................................................................................................... 11

Key findings ..................................................................................................................... 11

Media they cant live without ..........................................................................................12

E-mail versus text messaging ........................................................................................13

Researching before making a purchase ......................................................................14

The role of cell phones/PDAs in peoples lives .........................................................14

First place people go for information ...........................................................................15

Role of video games in social lives ...............................................................................16

New media choices for information or entertainment ..............................................17

Traditional media choices for information or entertainment .................................18

Hours spent with media in a typical day ......................................................................18

Data sourcing ...................................................................................................................19

E-mail marketing ............................................................................................................. 23

Key findings ..................................................................................................................... 23

State of the e-mail marketing industry ........................................................................ 24Volume distribution ........................................................................................................ 26

Volume by vertical .......................................................................................................... 26

Unsubscribe rates .......................................................................................................... 27

Bounce rates .................................................................................................................... 28

Open rates ........................................................................................................................ 28

Click rates ........................................................................................................................ 29

Click-to-open rates ........................................................................................................ 30

Transaction-to-click rates ............................................................................................ 31

Distribution of dollar amounts ..................................................................................... 32

Data sourcing .................................................................................................................. 33


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Experian Information Solutions, Inc. | Page

Search marketing ............................................................................................................37

Key findings ..................................................................................................................... 37

The U.S. search landscape ........................................................................................... 38Search referrals by industry ........................................................................................ 39

Paid search referrals ...................................................................................................... 40

Branded and navigational search on the rise ............................................................ 41

Growing complexity of search queries ....................................................................... 42

Data sourcing .................................................................................................................. 43

Online communities and social media ........................................................................ 47

Key findings ..................................................................................................................... 47Social networking site traffic........................................................................................ 47

Average time spent on social sites ..............................................................................49

Demographic trends ...................................................................................................... 50

Data sourcing .................................................................................................................. 51

Mobile marketing .............................................................................................................55

Key findings ..................................................................................................................... 55

State of the mobile industry .......................................................................................... 56Mobile GPS ...................................................................................................................... 58

Consumer attitudes toward mobile ..............................................................................59

Data sourcing ...................................................................................................................61

The future of digital advertising ....................................................................................65

Key findings ..................................................................................................................... 65

Industry progression ..................................................................................................... 66

Television advertising becomes more targeted ........................................................ 67Online advertising becomes more relevant ............................................................... 68

Data sourcing .................................................................................................................. 69

Conclusion ....................................................................................................................... 70


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Executive Summary

More traditional marketing budgets are shifting toward digital mediums at a rapid

pace, and for good reason. Digital marketing is typically more cost-effective

and responsive; fosters immediate customer engagement; and, importantly, its

measurable in ways that traditional advertising is not. In fact, a recent CMO Council

study surveying more than 650 worldwide marketers indicated that a majority of

marketers traditional advertising such as outdoor, print and television would

remain the same, but their digital advertising, including social media and search

marketing, would increase.

Online ad spending and especially paid search spending is expected to remain

resistant to short-term economic slowdown. Industry analysts predict that online

ad investment will grow over the next few years, but off-line ad spending will be

relatively less robust and increase at a lower rate. Moreover, even when economicconditions stabilize, increasing consumer adoption of the Internet will create

valuable opportunities for brand advertisers to engage audiences with rich media

and video ads.1

Consumer preferences are also shifting in favor of the digital landscape as it

provides more options and information, while giving users greater influence and

control over the relationships and experiences they have with brands. Todays

consumers want to customize the type of information they receive, how often they

receive it and which channels theyd prefer. Its a challenging paradox for marketers,

and those who do not rise to meet their customers expectations and demands

through digital channels and traditional mediums alike will miss out on ample

opportunities for success.

The state of the digital media landscape will not remain constant. Consumer

behavior will continue to change as technology evolves and new information portals

capture the users attention. To keep up with this ever-changing phenomenon

and strategize accordingly, marketers need to be informed with key performanceindicators, predictive analytics reports and industry benchmarks.

1 CMO Council, Marketing Outlook 2009, March 2009


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Experian Information Solutions, Inc. | Page

Introduction

Some of the most valuable and effective digital channels for marketers include

e-mail, search, mobile, and social utilities and networks. Consumer behaviors and

attitudes toward digital channels as well as projections regarding the emergence

of new channels hold great significance for businesses seeking more authentic

and deeper customer engagement. Marketers must embrace the digital landscape

and successfully analyze and optimize the performance of these interactive channels

to connect with their customers individually and encourage customer advocacy.

The following report provides data and key metrics, complete with fundamental

takeaways, tips and predictions, that todays business leaders can use to maximize

digital opportunities and return on investment.

Online ad spending and especially paid search spending is

expected to remain resistant to short-term economic slowdown.

Industry analysts predict that online ad investment will grow over the

next few years, but off-line ad spending will be relatively less robust and

increase at a lower rate.1


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0%

5%

10%

15%

20%

25%

30%

35% Video game

console

Books

Computerw/ Internetaccess

Mobilephone/PDA

Television

50+35-4925-3418-24

Age

Totaladults(18+)

Media they cant live without

Reliance on media differs by age group, but computers with Internet access prevail

across all age groups. Televisions importance grows with age, while mobile phones

importance declines with age.

Trend spotting: The Internet is getting gray. According to the Pew

Internet & American Life Project, the largest jump in adoption of Internet

usage was by users ages 70 and older from 2005 to 2008.2

2 Pew Internet & American Life Project, 55% of adult Americans have home broadband

connections, July 2, 2008

Page 12 | The 2009 Digital Marketer


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E-mail versus text messaging

Young adults are using e-mail and text messaging at equal rates, while e-mail

dominates older age groups.

Tip: Make content mobile-friendly by ensuring e-mails and Web sites render

properly on Web-enabled mobile devices.

0%

20%

40%

60%

80%

100% Textmessaging

E-mail

50+35-4925-3418-24Average

adults Age

Percentageoftotaladults(18+)


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Researching before making a purchase

Younger adults are much more likely to use social networks or blogs to gather

information prior to a purchase, compared to older adults.

The role of cell phones/ PDAs in peoples lives

Mobile devices are a necessity in the lives of younger adults but have not become so

adults over 50 yet.

50 75 100 125 150

50+

35-49

25-3418-24

Only use cell/PDAin case of

an emergency

Don't leave housewithout cell/PDA

Cell/PDA isprimary means to

make/receive calls

Total adults (18+)

50+

35-49

25-34

18-24

50 75 100 125 150 175

50+

35-49

25-34

18-24

Search social networksites for info beforemaking a purchase

Price compare onlinebefore making

a purchase

Search blogs for infobefore making

a purchase

Research productsonline before

making a purchase

Total adults (18+)

50+

35-49

25-34

18-24



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First place people go for information

All age groups are similar when it comes to turning to the Internet first for information

on health, automobiles, finance and technology. Younger adults are more likely to go

online first for sports, music, community, entertainment and television, while older

adults tend to turn to the Internet first for travel information.

Tip: If your business is actively engaged in online advertising campaigns, make

sure there is a clear understanding of the impact that multiple impressions have onsales. By measuring only the ads that result in clicks and conversions, marketers are

shortchanging all of the sites that exposed those converters to advertising before

the click.

25

50

75

100

125

150

175 50+35-49

25-34

18-24

Spor

ts

Mus

ic

Com

muni

ty

even

ts News

Healt

h

Auto

s

Finan

ce

Tech

/scie

nce

Trav

el

Vide

ogam

es

Ente

rtainm

ent

Cons

umer

elect

roni

cs

TVsh

ows

Shop

ping

50+

35-49

25-34

18-24

Totaladults(18+)

Experian Information Solutions, Inc. | Page 1


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Role of video games in social lives

For adults ages 18 to 34, video games are an important social activity for which they

make sure they have time, whether with friends, family or people online. Adults ages

35 to 49 see video games as a way to connect with family and friends, but adults 50 an

older do not see video games as a social activity.

50 75 100 125 150 175

50+

35-49

25-34

18-24

Put aside time

to play videogames online

Use video gamesas social activity

with friends/family

Want to playvideo games

with others online50+

35-49

25-34

18-24

Total adults (18+)


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New media choices for information or entertainment

Younger adults clearly use mobile phones, text messaging and social networking

sites for information and entertainment at higher rates than older adults. Adults

ages 35 to 49 are more likely to use online news and mobile devices for entertainment

and somewhat for information compared to younger adults.

Tip: Understand the channel preferences of your target audience to identify

conversion drivers, and then act upon them. This is critical to marketing optimization.

Info Entertain. Info Entertain. Info Entertain. Info Entertain.0

50

100

150

200

250

300

50+35-4925-3418-24

Mobile phones Text messaging Social networks Online news PDAs

Info Entertain.

50+

35-49

25-34

18-24

Totaladults(18+)


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Traditional media choices for information or entertainment

Older adults turn to broadcast television and newspapers for information and

entertainment at higher rates than other age groups. Younger adults look to AM/FM

radio for information.

Hours spent with media in a typical day

Television still receives the most hours from each age group; however, the Internet is

following close behind, especially among 18 to 24 year-olds.

Info Entertain. Info Entertain.Info Enter tain.Info Enter tain.60

80

100

120

140

50+

35-4925-34

18-24

Broadcast TV Newspaper Magazine Radio

Totaladults(18+)

50+

35-49

25-34

18-24

50+35 - 4925 - 3418 - 24Average

0

1

2

3

4

Watc

hingTV Mo

bile

phon

eInt

ernet

atho

meInt

ernet

onmobile Te

xt

mess

aging

MP3p

layer

VOIP

Instan

t

mess

aging E-m

ailPD

A

AM/FM

radio

onlin

e

Avg. 35-49

25-34

18-24

50+

Media type

Averagedailyusage(hours)


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Data sourcing

Data included in this section was collected by Experian SimmonsSM in spring

of 2008 and compiled from more than 2,000 completed surveys from consumers

who were online one or more hour(s) in the last seven days. This data has been

integrated with the data from the Experian Simmons National Consumer Study

to combine insights about consumer behavior in social networking, instant

messaging, blogging, photo and video-sharing sites with the traditional

media channels.

For more information, please visit the Experian SimmonsSM Web site,

www.smrb.com, or call 1 212 471 2850.


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State of the e-mail marketing industry

Although the e-mail channel continues to demonstrate clear revenue potential and

rapid technological advancements, e-mail marketers are still not leveraging the

medium to its full potential. For instance, nearly 45 percent of e-mail marketers do

not capture subscribers preferences during the registration process. In addition,

in 2008 almost half (45 percent) used dynamic content in less than 5 percent of their

messages, or none at all.4

What percentage of messages deployed in 2008contained dynamic content?

Do you capture/include preferences as part of yourregistration process?

4 Experian CheetahMail, Experian CheetahMail Client Survey, April 2008


0 2 4 6 8 10 12 14

No response

More than 75%

25-50%

5-25%

Less than 5%

None13.2% of

respondents

31.8% of

respondents

28.9% of

respondents

7.9% of

respondents

10.5% of

respondents

7.9% of

respondents

Respondents

0 5 10 15 20

No response

Required

Optional

Don't capture

28.9% of

respondents

21.1% of

respondents

44.7% of

respondents

5.3% of

respondents

Respondents


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0 5 10 15 20

Other

Web site dataintegration

Online/off-lineintegration

Deliverability

Profiling &analytics

7.9% of

respondents

7.9% of

respondents

7.9% of

respondents

15.8% of

respondents

52.6% of

respondents

Respondents

0 5 10 15 20 25 30

No response

Yes, as additionalsegmentation criteria

for campaigns

Yes, to send triggerede-mails based on

web activity

No, but consideringfor next year

18.4% of

respondents

2.6% of

respondents

71.1% of

respondents

7.9% of

respondents

Respondents

Trend spotting: Given the current state of the industry, it is not

surprising that 53 percent of e-mail marketers want to improve customer

profiling and analytics and 71 percent are considering using Web

analytics for e-mail targeting in 2009. We can expect that during the year

ahead, e-mail marketers will focus much more of their efforts on qualityversus quantity.

What aspect of your e-mail program would you most like to improvethis year?

Do you use Web analytics data (browse, buy or abandon activity) fore-mail targeting or personalization?



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Volume distribution

E-mail send volumes increased gradually throughout 2008. June had the lowest send

volume of 5.81 percent. Volumes returned to normal rates in July and August, helped

by the Independence Day holiday and back-to-school season. The last quarter

represented nearly 34 percent of the total volume for the year.

Bulk promotions 2008 Volume distribution by month

Volume by verticalVolume increase 2007 2008

0% 3% 6% 9% 12% 15%

January

February

MarchApril

May

June

July

August

September

October

November

December 13.66%

6.88%

6.95%

7.11%

7.17%

7.86%

5.81%

7.94%

8.03%

8.35%

9.64%

10.6%

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

Travel &entertainment

Publishers

Multi-channel retailers

Consumer products& services

Catalogers

Business products& services

41%

33%

70%

54%

47%

21%



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Unsubscribe rates

The slight decline in unsubscribe rates seems to indicate that customers are

accepting a higher frequency of e-mail marketing. The slight downward trend might

also be attributed to the best practice of offering subscribers the ability to self-

select their mailing frequency (opt-down) or to receive only specific types of e-mail

campaigns (such as sales, newsletters/informational e-mails, etc.).

2008 unsubscribe rate by month*

* Calculations based on unique subscribers

Tip: Make it easy for subscribers to change their e-mail addresses. One of their mainreasons for opting out is often to change an e-mail address.

0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12%

January

February

March

April

May

June

July

August

September

October

November

December 0.08%

0.12%

0.11%

0.11%

0.11%

0.10%

0.10%

0.10%

0.11%

0.10%

0.11%

0.10%



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Bounce rates

Bounce rates decreased in the first quarter of the year and then began to increase

steadily. The higher numbers in the latter part of the year might be attributed to

an increase in mailings to inactive groups or segments that are not mailed to as

frequently during the year.

2008 bounce rates by month

Open rates

Total and unique open rates remained steady throughout the year, and, with the

exception of December, open rates did not decrease significantly in the second half

of the year as volumes climbed.

2008 total and unique open rates by month

Takeaway: E-mail subscribers are still engaged in reading

commercial e-mails.

0% 5% 10% 15% 20%

January

FebruaryMarch

April

May

June

July

August

September

October

November

December 16.37.%

19.43%

18.56%

19.12%

18.63%

18.20%

17.82%

18.03%

18.40%

18.39%

18.61%

18.34%

12.04%

14.20%

13.70%

14.04%

13.59%

13.27%

12.93%

13.18%

13.48%

13.57%

13.7%

13.25% Uniqueopen rate

Totalopen rate

0.0% 0.5% 1.0% 1.5% 2.0%

JanuaryFebruary

March

April

May

June

July

August

September

October

November

December 1.86%

1.59%

1.51%

1.46%

1.64%

1.56%

1.65%

1.58%

1.69%

1.82%

1.82%

1.86%


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Click rates

After March, total click rates fell one percentage point, with unique rates falling only

half a point. The total and unique click rates remained relatively steady throughout

the second half of the year, indicating consistent subscriber engagement in

commercial e-mails.

Total and unique click rates by month

Tip: Update your e-mail creative at least once a year to maintain

customer engagement.

0% 1% 2% 3% 4% 5%

January

February

March

April

May

June

July

August

September

October

November

December 3.22%

4.62%

4.21%

4.30%

4.04%

3.95%

3.82%

3.92%

3.90%

3.68%

3.70%

3.64%

2.30%

3.38%

3.05%

3.14%

2.95%

2.83%

2.77%

2.86%

2.84%

2.69%

2.70%

2.64%Unique click rate

Total click rate


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0% 5% 10% 15% 20% 25%

January

February

March

April

May

June

July

August

September

October

November

December

20.58%

22.84%

21.45%

21.62%

20.65%

20.63%

20.35%

21.17%

19.21%

19.26%

19.25%

18.68%

Click-to-open rates

Looking at the unique click-to-open (CTO) rates, there was a significant decrease

in activity from the first half of 2008 compared with the second half. The drop in CTO

was not unexpected, considering that e-mail volumes increased by 15.5 percent in

October, 10 percent in November and 29 percent in December.

Click-to-open (CTO) rate by month

Trend spotting:Look for more companies to integrate e-mail withrecommendation engines used on their Web sites to increase relevancy.


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Transaction-to-click rates

Regardless of any declines in open and click rates, the transaction-to-click (TTC)

rate was strong and ended on a high of nearly 5 percent in December 2008, proving

that e-mail drives sales from engaged subscribers.

2008 total average of transaction-to-click rate by month

Tip: Be sure to measure the performance of active versus inactive subscribers. This

strategy will help you gauge which creative templates and offers your inactive group

is most likely to respond to.

0% 1% 2% 3% 4% 5%

January

February

March

April

May

June

July

August

September

October

November

December

4.08%

4.32%

3.95%

4.16%

4.06%

4.25%

4.71%

4.30%

4.32%

3.74%

4.32%

4.99%


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0% 2% 4% 6% 8% 10% 12%

January

February

March

April

MayJune

July

August

September

October

November

December

6.90%

7.68%

7.47%

7.89%

8.08%

8.90%

7.85%

7.20%

7.60%

8.31%

11.20%

10.92%

Distribution of dollar amounts

Overall, revenue generated by e-mail was strong and consistent with seasonal

swings. More encouraging for the channel, though, is that e-mail revenue increased

for the first half of the year and from September through December. August was

the only month representing less than 7 percent of the revenue for the year. The

drop from November to December can be attributed to e-mail driving sales to retail

locations, as standard shipping rates no longer applied.

2008 distribution of e-mail revenue by month*

* Includes only clients using Experian CheetahMails Track-to-Purchase feature.

Trend spotting: Companies will start taking a closer look at sales

inactivity, using historical information and trends rather than preset

definitions to assess which messages drive the most revenue.


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Data sourcing

Data included in this section was collected by Experian CheetahMail from

January 1, 2008, to December 31, 2008, by monitoring all client programs. Experian

CheetahMail is the trusted service provider of e-mail marketing and customer

intelligence technologies for hundreds of top enterprises worldwide.

For more information, please visit Experian CheetahMails Web site,

www.cheetahmail.com, or call 1 212 809 0825.


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The U.S. search landscape

In February 2009, Googles share of searches reached 72 percent, up from 58 percent

three years ago. Together, the top four search engines accounted for more than 98

percent of all searches in the United States.

Share of U.S. searches by search engine*

February 2006 February 2009

* Share for MSN Search includes Live.com and search.msn.com

Takeaway: Google continues to have a strong impact on the

search landscape.

100%

20%

40%

60%

80%

Google

Yahoo! Search

MSN Search

Ask

Feb. 2006 Feb. 2009Feb. 2007 Feb. 2008

Shareofsearches

Time (Months)


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Search referrals by industry

In February 2009, 26 percent of Web traffic across all industries was referred from

search engines. For industries such as travel, retail and auto, the share of search-

referred traffic is higher due to increased proclivity of consumers to research and

compare prices within these industries.

Share of search-referred traffic by industryFebruary 2009

Tip: Remember that search is only one part of your online marketing mix.

Businesses in finance, news and media, and food and beverage industries in

particular shouldnt lose sight of the bigger picture.

36%

10%

22%22%23%

27%

31%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Banks &finance

News &media

Packagedfoods

InsuranceAutoRetailTravel

Shareofsearch-referredvisits

Industry


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Paid search referrals

The share of search traffic from paid or sponsored links in February 2009 was 8

percent. In addition, the ratios of paid and organic search varied widely by industry

and Web site. This was particularly true for companies that used sponsored links to

quickly test which copy drove greater clicks rather than waiting for the optimization

of organic results.

Share of paid search traffic by industryFebruary 2009

Takeaway: The share of paid search to retail Web sites tends to be higher

because of the ability to tie traffic and online sales directly to sponsored

ads. The conversion process makes it easier to calculate ROI and to justify

marketing costs.

0%

5%

10%

15%

20%

25%

News &media

Banks &finance

TravelAutoInsurancePackagedfoods

Retail

24%

2%

10%

15%15%

21%22%

Shareof

searchtraffic

frompaidsearch

Industry


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Branded and navigational search on the rise

There is an increasing trend among consumers to use branded (e.g., company or

product names) terms in their searches. In Q1 2005, 71 percent of the top 1,500 search

terms were branded, increasing to 89 percent in Q4 2008.

Share of clicks from branded/navigational searches

Takeaway: While many consumers are aware of what they are looking for,

they prefer to use a search engine to navigate rather than typing a URL

directly into the browser bar.

Q1

2005

Q1

2006

Q1

2007

Q1

2008

Q4Q3Q2Q4Q3Q2Q4Q3Q2Q4Q3Q2

100%

20%

40%

60%

80%

Shareofbrandedsearches

Time (Quarter)


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100%

20%

40%

60%

80%

Q4 - 2006 Q4 - 2007 Q4 - 2008

Shareofsear

ches

16.1%

34.5%

49.4%

17.4%

36.7%

46.0%

18.6%

36.7%

44.7%

3-4 keywords

1-2 keywords

5+ keywords

Time (Quarter)

Growing complexity of search queries

The length of search queries is rising, with an increasing number of keywords being

included in the search bar. The share of searches that include one to two keywords

remained the largest in Q4 2008 at 45 percent, but it has declined 4 percent from

49 percent in Q4 2006. One- to two-keyword searches tend to be dominated by the

branded and navigational searches discussed on the previous page. However, when

examining the long tail of search terms beyond the top 1,500, the highest increase

was for search queries that included five or more keywords.

Keyword breakdown of U.S. searches

Trend spotting: Search queries will become increasingly more

specific and complex in order to garner more relevant results.


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Data sourcing

Data in this section is based on Experian Hitwise Search Industry Update

information from February 2006 to February 2009. Experian Hitwise, the leading

online competitive intelligence service, provides its 1,500 clients around the

world with daily insights on how their customers interact with a broad range of

competitive Web sites and how their competitors use different tactics to attract

online customers.

For more information, please visit Experian Hitwises Web site,

www.hitwise.com, or call 1 212 380 2900.


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Social networking site traffic

U.S. visits to social networking Web sites increased 4 percent in February 2009

versus February 2008 among a custom category of 55 of the leading sites. Visits

decreased 1 percent compared with January 2009 among those sites. MySpace

accounted for 52.21 percent of those visits, the highest in the category, despite a

decrease in visits of 28 percent compared with February 2008.

U.S. visits to Facebook increased 149 percent in February 2009 compared with

February 2008. The site received the second-highest market share of U.S. visits for

the month, with 36.03 percent. Tagged received 2.47 percent of visits in February

2009, the third-largest amount, and had the largest percentage gain in market share

of visits among the top five visited Web sites, increasing 280 percent compared with

February 2008.

Market share of U.S. Internet visits to top five social networking Web sites

Rank Name DomainFebruary

2008January

2009February

2009Year-over-yearpercent change

1 MySpace www.myspace.com 72.92% 57.08% 52.21% -28%

2 Facebook www.facebook.com 14.46% 31.15% 36.03% 149%

3 Tagged www.tagged.com 0.65% 2.33% 2.47% 280%

4 myYearbook www.myyearbook.com 1.17% 1.67% 1.63% 39%

5 Classmates www.classmates.com 1.03% 0.80% 0.82% -20%

Trend spotting: Twitter, the social networking and microblogging

service that allows users to send and read other users short, text-

based updates (no more than 140 characters in length), is quickly

gaining momentum and will most likely be included in this list within the

next six months.


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Average time spent on social sites

MySpace had the highest average time spent among the top five most visited social

networking Web sites, with 29 minutes and 38 seconds per visit representing a

decrease of 2 percent compared with February 2008. Classmates experienced the

largest growth in average time spent among the top five sites, increasing 9 percent

in February 2009 to 11 minutes and 14 seconds. Both Facebook and Tagged saw an

increase of 6 percent in time spent on their sites.

Average U.S. time spent among top five social networking Web sites

(in minutes and seconds)

Rank Name DomainFebruary

2008February

2009Year-over-yearpercent change

1 MySpace www.myspace.com 30:07 29:38 -2%

2 Facebook www.facebook.com 21:00 22:12 6%

3 Tagged www.tagged.com 24:56 26:22 6%

4 myYearbook www.myyearbook.com 31:35 25:22 -20%

5 Classmates www.classmates.com 10:19 11:14 9%


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Demographic trends

Looking at the demographic breakdown of visitors to MySpace and Facebook, users

between the ages of 18 and 34 still dominate social networks, as 57.88 percent and

54.22 percent of U.S. visits, respectively, came from those combined age groups

in February 2009. This represents a 2 percent growth for MySpace and a 9 percent

decline for Facebook in terms of year-over-year percentages. Visitors who are 35

or older have increased 11 percent on Facebook in February 2009 compared with

February 2008, while visitors from that age group to MySpace have declined 2 percent

U.S. demographic breakdown of visitors to MySpace and Facebook

Age

MySpace.com Facebook.com

February2008

February2009

Year-over-yearpercent change

February2008

February2009

Year-over-yearpercent change

1824 36.54% 36.79% 1% 40.14% 29.22% -27%

2534 21.33% 22.02% 3% 22.39% 24.70% 10%

3544 20.65% 20.58% 0% 16.30% 20.10% 23%

4554 15.43% 15.27% -1% 14.08% 16.97% 21%

55+ 6.05% 5.34% -12% 7.09% 9.01% 27%

Tip: Keep in mind that many social networking sites are completely public and

searchable. Inevitably, negative commentary will accompany the positive, so you

have to be prepared to respond appropriately. Furthermore, most of these sites

require ongoing support. Proper time and resources must be dedicated to reviewing

and updating all of your social networking initiatives regularly to ensure they timely

and relevant.


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Data sourcing

Data in this section is based on a custom category of 55 of the leading social

networking Web sites ranked by market share of U.S. visits, which is the percentage

of online traffic to the domain or category, from the Experian Hitwise sample of 10

million U.S. Internet users. Hitwise measures more than one million unique Web

sites daily and categorizes them into industries on the basis of subject matter and

content as well as market orientation and competitive context.

For more information, please visit Experian Hitwises Web site,

www.hitwise.com, or call 1 212 380 2900.


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State of the mobile industry

Prior to the introduction of the iPhone in 2007, the vast majority of mobile phones only

supported text messaging (SMS), which a large number of mobile users continue

to utilize. Catering to the communication preferences of this SMS-savvy audience,

mobile marketing programs such as click-to-call, mobile coupons and sponsored

news alerts currently dominate most mobile marketing strategies.

U.S. mobile advertising spending2008 2013 (millions and % change)

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500

2008

2009

2010

2011

2012

2013

$648 (+35.0%)

$760 (+17.3%)

$995 (+30.9%)

$1,410 (+41.7%)

$2,390 (+69.5%)

$3,330 (+39.3%)

eMarketer, Mobile Advertising and Usage, April 2009



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Mobile phone activities in the last 30 days

The chart above from the Experian Simmons New Media Study released in April

2008 compares the usage of different mobile functions among consumers in the U.SWhile 59 percent of people who have used a cell phone in the past 30 days have text

messaged, less than 2 percent have shopped by mobile and less than 5 percent have

used mobile GPS indicating the relative nascence of both mobile shopping and

mobile GPS in terms of becoming ingrained consumer habits.

The emergence of smart phone usage is strongly illustrated by the 20 percent of

consumers who used their phones for e-mail and the 19 percent who accessed

the Internet.

Takeaway: Mobile advertising, including mobile search, social networks and

location-specific services, will become a more viable marketing strategy as

consumers continue to adopt smart phone technology.

Trend spotting: The number of mobile handset users in China is

expected to rise to 660 million by 2010. It is potentially the biggest 3G

mobile market of the world. The United States, Japan, Russia andBrazils mobile markets are the largest markets behind China.6

6 Mobile Marketing Magazine, Global Mobile, October 2007

0%

10%

20%

30%

40%

50%

60%

70%

59%

17%

49%

13%

7%

14%

19%

5%3%

20%

2%

6%

TXT

mes

sage

Phot

os

Ring

tone

s

Vide

os

Mus

ic

down

load

Vide

o

gam

es

Inte

rnet

GPS

Stre

aming

video

E-m

ail

Shop

ping

Bank

ing

Percentofce

llphoneusers



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Mobile GPS

The use of location-specific mobile services and GPS applications, especially

those driven by the Google Maps Application Programming Interface (A.P.I.), and

Flickrs geo-tagged photo function, has the potential to increase significantly as new

technologies proliferate. The process of geo-tagging photographs, for example

which records the location where a photo was taken and overlays it on services like

Google Maps to produce an interactive mixture of map and photo data can prove

highly useful to digital marketers looking to reach mobile-savvy consumers.

Age profile of mobile phone GPS users

Age Index

18 - 24 206

25 - 34 108

35 - 44 106

45 - 54 69

55 - 64 68

65+ 17

The data in the chart above from the Experian Simmons New Media Study indicates

that mobile GPS usage among mobile phone owners skews decidedly younger,

although consumers in the 35- to 44-year-old age bracket index slightly above the

market average.

Trend spotting: There is a severe drop-off in mobile phone GPS

usage for the older age groups, which is expected to remain the case

with mobile technologies in general.


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Consumer attitudes toward mobile

The utilization of mobile technology, combined with the concurrent expansion

of mobile services, creates a powerful new channel through which marketing

messages can be delivered effectively to individuals. In fact, more than one-third

of consumers who spend an hour or more online per week rate themselves as

being interested in receiving ads via their mobile device, provided there is a

tangible incentive.7

Incentive consumers wouldprefer to receive on cell

Extremely interestedin receiving ads

Cash 85%

Free movie passes 39%

Free products 38%

Discount off mobile phone bill 38%Free minutes 26%

Free music downloads 19%

Free ring tones or games 18%

Discount coupons 16%

Additional free text messages 15%

Free movies or TV over yourmobile phone

14%

Entry into a sweepstakes 11%

Other 3%

Takeaway: The most desired incentives are cash, free movie passes, free

products and discounts off mobile phone bills.

7 Experian SimmonsSM, Experian Simmons New Media Study, April 2008


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According to Forrester Research, Inc., big brands that have trialed mobile

successfully, such as Coca-Cola and Toyota, plan to keep it as a key part of their

overall interactive spend in 2009, despite the down economy. Other marketers,

such as retailers looking for a new direct-response vehicle, will respond to growing

mobile data usage with trials of message-based promotions and display media on

popular mobile content sites.8

For example, retail chain Lane Bryants pilot mobile campaign generated at least

16,000 subscribers in a test period spanning from July 2008 to October 2008. Today,

the ongoing promotion of the program is generating more than 1,000 new mobile

subscribers every week.

A sample incentive promotion from Lane Bryant would appear as follows:

LB MSG ME! 15% off ur onlinepurchase 7/23 8/5/08. Enter cde

XXXXX at chkout. Exclus apply.

C site 4 dets. 2 opt out, rply

STOPLB or call 8884796514.

8 Forrester Research, 2009 North American Interactive Marketing Predictions, February 2009


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Data sourcing

Data included in this section was collected by Experian SimmonsSM and

SmartReplySM from April 2007 to April 2008.

For more information, please visit the Experian SimmonsSM Web site,

www.smrb.com, or the SmartReplySM Web site, www.smartreply.com.

You also can reach Experian SimmonsSM by calling 1 212 471 2850 or

SmartReplySM at 1 949 340 0700.


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Targeting categories

Unique targets

Addressab

lemedia

Massmedia

1

210

3,000

43,000

208,000

43,000,000

113,000,000

235,000,000

National

DMA

Cable zones

ZIP Code

Block group

ZIP + 4

Household

Individual

Addressable media aggregation pyramid

Industry progression

The traditional media that many marketers rely on today is focused on reaching

consumers with the same generic message across large categories. As digital

advertising technology moves forward, there will be greater focus on addressable

audiences. This technology will support individualized messaging at the

household level.

Takeaway: The future of digital advertising will be more targeted, interactive

and effective.


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Television advertising becomes more targeted

With the explosive growth of high-definition television (HDTV) delivered by cable

companies, satellite providers and television over the Internet, the infrastructure

that enables household-level targeting of television advertising is becoming a

reality. While still in the testing phase, targeted advertising, also known as advanced

advertising, is showing tremendous potential for marketers.

Leading cable operators and media agencies have begun testing the effectiveness

and efficiency of addressable advertising. During one trial, thousands of targeted

ads across eight popular cable networks were delivered to anonymous households

based on pre-selected characteristics.

Advanced advertising results

Tune away 38%

Ad effectiveness 56%

The results indicate that there is real value in advanced advertising. Homes receiving

targeted advertising tuned away during commercials 38 percent less of the time than

homes that received non-targeted advertising, and advertisers realized 56 percent

greater efficiency based on the per-spot costs of targeted versus non-targeted ads.

Trend spotting: Consumers will be targeted at the household level as

marketers learn to combine online and off-line data strategically.



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Online advertising becomes more relevant

While there are many models for improving advertising performance online, from

contextual ads to behavioral targeting, most of these models provide very broad

audience definition inferred from behaviors only exhibited on the Internet.

As digital technology advances over time, so will the usage of ad-targeting

technology that combines online and off-line data to enable more targeted and

relevant communication.

Trend spotting: Major credit card companies that have begun testing

this technology have experienced impressive results, with targeted

ads significantly outperforming standard offers, leading to more

clickthroughs and application submissions.

Tip: Look for ways to combine online and off-line data to improve

advertisement targeting.

Takeaway: Increased relevance of online advertising improves ad

performance and engagement.


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Data sourcing

Data in the online advertising portion of this section was provided by

Experian Marketing Services in 2008.

For more information, please visit the Experian Marketing Services Web

site, www.experianmarketingservices.com, or call 1 888 404 6911.


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Documents

The 2009 Benchmark and Trend Report