Comscore, Inc. · NASDAQ:SCOR
Comscore — Q1 2010 Earnings Presentation
43 slides from Comscore's earnings presentation, May 2010
Slide 1: State of the U.S. Online Retail Economy in Q1 2010
State of the U.S. Online Retail Economy in Q1 2010 Gian Fulgoni, Chairman, comScore, Inc. Note: A copy of this presentation will be sent to all attendees within 24 hours of today’s webinar
Slide 2: Data sourced from comScore's global panel of 2 million Internet users
Data sourced from comScore’s global panel of 2 million Internet users °View of Consumer Behavior 360° Analysis Parameters E-commerce data includes all worldwide buying on U.S. sites Web Visiting & Search Behavior Unless explicitly stated otherwise, the term e-commerce refers to online retail spendin
Slide 3: Validation of comScore Sales Data vs. U.S. Department of Commerce
Validation of comScore Sales Data: Comparison of comScore data to U.S. Department of Commerce Quarterly U.S. e-Commerce Sales* ($ Billions) Quarterly U.S. e-Commerce Growth* vs. YA Source: comScore & U.S. Department of Commerce (DOC) Source: comScore & U.S. Department of Commerce (DOC) 50 Dept. of C
Slide 4: e-Commerce continues to gain share of retail spending
e-Commerce continues to gain share of retail spending e-Commerce Share of Corresponding Retail Spending* Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail 9.0% 8.1% 8.0% 7.6% 7.7% 7.4% 7.3% 7.7% 7.0% 6.7% Commerce Share 6.4% 6.8% 6.9% 5.9% 6.3% 6.6% 6.0% 6.5% 5.1% 5.9% e
Slide 5: Q1 '10 e-commerce sales up 6% versus year ago
Following a soft 2009, e-commerce sales in Q1 ’10 were up 6% versus year ago. Travel and non-travel up 2% and 10%, respectively. e-Commerce Dollar Sales Growth ($ Billions) +6% Source: comScore e-Commerce Measurement -2% +7% +17% +19% $214 $209 +22% $200 +26% $171 $84 +9% $80 -5% +29% $77 +12% $143
Slide 6: Online and offline retail recovering, e-commerce double-digit growth
Online and offline retail sectors recovering, with e-commerce showing double-digit growth for the first time since Q2 ’08 Quarterly e-Commerce Sales Growth vs. YA Source: comScore e-Commerce Measurement 25% 23% 23% 17% 19% 20% 15% 11% 13% 10% 10% 6% 5% 3% -3% 0% -1% -2% 0% -5% Q1-07 Q2-07 Q3-07 Q4-0
Slide 7: Positive growth has recurred in 2010
Positive growth has recurred in 2010. Note that most pre-Easter buying occurred in March this year but fell in April in 2009. Monthly e-Commerce Sales Growth vs. YA Source: comScore e-Commerce Measurement Month Growth Rate vs. YA January 2010 +7% February 2010 +4% March 2010 +17% April 2010 +12% © c
Slide 8: Visitation to retail category grew 12% in April 2010
Visitation to the overall retail category grew 12% in April 2010 versus year ago, while some larger retailers experienced declines in total UVs to their sites Total Unique Visitors (MM) and % Growth vs. YA on Selected Retail Sites in April 2010 Source: comScore Media Metrix Amazon Sites 74.7 +5% +19
Slide 9: Positive GDP growth another sign of economic progress?
Positive GDP growth another sign of economic progress? GDP Percent Change from Preceding Period Source: Bureau of Economic Analysis U.S. Bureau of Economic GDP in Billions of Chained 2005 Dollars $13,400 Analysis just revised GDP down $13,300 from 3.2% to 3.0% $13,200 Recovery and Reinvestment $13,1
Slide 10: Job market still paints a gloomy picture
Job market still paints a gloomy picture “The economy is strengthening. But millions of jobs lost in the recession could be gone for good. That helps explain why economists think it will take at least five years for the economy to regain the 8.2 million jobs wiped out by the recession — longer than
Slide 11: Unemployment remains the top economic concern among consumers
Unemployment remains the top economic concern among consumers Q. Based on your current situation, which one of the following economic conditions most concerns you? Source: comScore Survey April 2010 Among All Consumers Among Consumers Earning $100K or more Unemployment/ 42% 34% Job Security Rising P
Slide 12: Economic indicators continue to waver
Economic indicators continue to waver, causing concern and uncertainty about strength of recovery “Recovery on track but economy sails into stronger headwinds.” – Bart van Ark, Chief Economist of The Conference Board, April 30, 2010 “American consumers appear to have been resurrected, but it’s still
Slide 13: Consumer sentiment about the economy is improving
Consumer sentiment about the current state of the economy is improving, with a 5-point shift from pessimistic to neutral/positive, but 7 out of 10 consumers are still pessimistic Consumer Agreement with Economic Statements Q. Which statement best describes how you feel about the current economic con
Slide 14: Majority of consumers still cutting back on spending
Although to a lesser degree than last year, the majority of consumers are still cutting back on spending Percent Cutting Back by Income Segment Q. Are you cutting back on your spending due to concerns about the economy? Source: comScore Surveys Under $50K $50K - $99K $100K or more 86% 87% 85% 80% 81
Slide 15: The Economy's Impact on E-Commerce
The Economy’s Impact on E-Commerce © comScore, Inc. Proprietary and Confidential. 15
Slide 16: Six in ten consumers say the Internet is important in buying decisions
Six in ten consumers say the Internet has become important when making buying decisions; 56% of those consumers say this has increased in the past year Importance of the Internet in Making Purchasing Decisions Q. In the past 3 months, how important has the Internet become in providing Q. How has thi
Slide 17: Consumer loyalty to retailers and brands has decreased
Consumer loyalty to specific retailers and brands has steadily decreased over the past two years, while likelihood to shop online for deals and use coupons has risen Q. Please indicate how you are cutting your shopping expenses Source: comScore Surveys – July 2008 & April 2010 July April % Chg 2008
Slide 18: Consumers 'trading down' to cope with decreased spending power
Consumers have found themselves ‘trading down’ as a means of coping with decreased spending power “I buy the brand I want most” 60% 50% 40% 30% 20% 10% 0% March 2008 March 2009 March 2010 Source: comScore ARS, Brand Loyalty Study, March 2008-March 2010 •As the economic downturn has continued, the pe
Slide 19: Shift from preferred brands boosts private label market share
In a down economy, as consumers begin to shift from buying the brand “they want most,” we see a direct, positive impact on private label market share; degree of impact varies by product category Private Label Market Share (by volume) Total U.S. Food, Drug, Mass Merchandiser Source: IRI InfoScan Net
Slide 20: Coupon sites continue to grow in importance
Coupon sites continue to grow in importance to consumers, largely fueled by the economy 29 Million People Visited a Coupon Site in April 2010 Unique Visitors (000) & Total Visits (000) Top 10 Coupon Sites to Coupon Sites by Unique Visitors (MM) in April 2010 Source: comScore Media Metrix Source: com
Slide 21: Free shipping a top online cost-saving measure
When it comes to the online channel, consumers choose free shipping as one of their most important cost-saving measures, followed by sale items and no tax Cost Saving Measures Q. Please select the 3 online cost saving methods that are most important to you Source: comScore Survey April 2010 Free shi
Slide 22: Large retailers better able to leverage economies of scale
Large retailers are better able to leverage economies of scale and provide online shoppers with the incentives that are most attractive to them…free shipping, discounts, etc Share of Sales for Top 25 Retailers in Q1 2010 vs. YA Source: comScore e-Commerce Measurement Sales Share Q1 2009 Q1 2010 Poin
Slide 23: Who is Today's Online Consumer?
Who is Today’s Online Consumer? © comScore, Inc. Proprietary and Confidential. 23
Slide 24: Lower and upper income segments driving growth
Lower and upper income segments are driving growth, while growth among the middle-income segment remains relatively flat e-Commerce Sales vs. YA by Income Segment Source: comScore e-Commerce Measurement Bracket Contribution of Total Income Segment Online Retail Spending Online Retail Spending Share
Slide 25: More than half of categories out-performed total e-commerce growth
More than half of the categories out-performed the total quarterly e-commerce growth rate of 10% versus year ago Q1 2010 e-Commerce Sales Growth vs. YA by Retail Category Source: comScore e-Commerce Measurement Category Change vs. YA Strong FLOWERS, GREETINGS & GIFTS Strong CONSUMER ELECTRONICS (x P
Slide 26: Men more likely to buy from pure-play retailers
Men are much more likely to buy from pure-play retailers, regardless of age. For women, it’s a pretty even split. Propensity to Buy on Multi-Channel vs. Pure-Play Retailer Sites by Age and Gender % of Total Dollars Spent by Segment in March 2010 Source: comScore e-Commerce Measurement Multi-Channel
Slide 27: Heavy buyer segment spent nearly 20x the Light segment
The “Heavy” buyer segment spent nearly 20x as much in Q1 ‘10 and conducted nearly 3x as many transactions as the “Light” segment Key Shopping Metrics for Heavy/Medium/Light Buyer in Q1 2010 Source: comScore e-Commerce Measurement Heavy Medium Light % of Buyers 20% 30% 50% % of Basket Dollars 68% 23%
Slide 28: Social Media
Social Media © comScore, Inc. Proprietary and Confidential. 28
Slide 29: What is 'Social Retail'?
What is “Social Retail”? Is the social appeal of shopping finally going digital? Social Retail 1.0 Social Retail 2.0 © comScore, Inc. Proprietary and Confidential. 29
Slide 30: Group Buying is growing exponentially
Group Buying is growing exponentially…and the money is following 4,000 U.S. Unique Visitors (000) 3,500 3,000 2,500 2,000 1,500 1,000 500 0 LIVINGSOCIAL.COM GROUPON.COM % Composition by Gender GROUPON.COM LIVINGSOCIAL.COM Total Internet 62% Females 67% 50% 38% Males 33% 50% © comScore, Inc. Propriet
Slide 31: Flash Sale sites continue to grow
Flash Sale sites continue to grow, and their users spend several times more than average online Total Unique Visitors (000) to Flash Sales Sites Q1 2010 Buying Power Index Source: comScore Media Metrix Source: comScore Media Metrix 2,000 1,800 383 1,600 Unique Visitors (000) 1,400 288 259 260 1,200
Slide 32: Most Twitter users access via Twitter.com on desktop or laptop
Most Twitter users have accessed the site via Twitter.com on a desktop or laptop, but 18% have used Twitter.com from their mobile phone, while 5% have used an application from their phone Consumer Usage of Twitter Q. Which best describes your usage of Twitter? Q. How have you accessed Twitter? Sourc
Slide 33: 23% of Twitter users follow businesses for deals or reviews
23% of Twitter users follow businesses to find special deals, promotions or sales or use it for product reviews & opinions Consumer Usage of Twitter Q. For which have you used Twitter? Source: comScore Survey April 2010 Reading tweets from users I follow 40% Posting my own tweets 34% ‘Retweeting` ot
Slide 34: Facebook 'Like' Button: The Future of Social Retail?
Facebook “Like” Button: The Future of Social Retail? © comScore, Inc. Proprietary and Confidential. 34
Slide 35: Are most retailers hesitant to advertise on social media?
Are most retailers hesitant to advertise on social media? Top Retail Display Advertisers on Social Networking Sites in Q1 2010 Share of Advertiser Display Ads on Social Source: comScore Ad Metrix Networking Sites Netflix, Inc. 505,245 5.4% eBay, Inc. 398,770 9.0% Teleflora LLC 261,499 48.2% ideeli I
Slide 36: Facebook & Twitter visitors spend more money online
Facebook & Twitter visitors spend more money online than average; as Facebook usage increases so does propensity to spend online Average Q1 2010 e-Commerce Spending per Visitor Source: comScore e-Commerce Measurement $80 $75 $73 $70 $67 $61 $63 $60 $50 $50 Total $43 Internet $40 $30 $27 $20 $10 $0 F
Slide 37: Social Media CPMs are low compared to other categories
Social Media CPMs are low compared to other publisher categories Top Publisher Categories Cost per Thousand Share of Total U.S. Internet Display Ads Impressions (CPM) Social Networking 27% $0.55 Portals 21% $2.69 Entertainment 11% $4.53 e-mail 10% $0.89 News/Information 8% $5.63 Sports 3% $6.35 Onli
Slide 38: Why the reluctance to advertise on social media?
So why the reluctance to advertise on social media? Are certain social media myths continuing to scare away advertisers? Myth 1: The audience is all young people w/ no $$$ Media buyers — the agency people who book campaigns — report that Myth 2: Low ad click-thru rates = low performance [Facebook] i
Slide 39: To summarize…
To summarize… Fact: Social networking site users spend 1.5x more online than the average Internet user Fact: CPMs on social networking sites are 5x less than average Internet CPM So why are retailers 3x less likely than average to advertise on social networking sites? Are retailers missing a huge op
Slide 40: Understanding Behavioral Impact of Ad Exposure: comScore's Methodology
Understanding Behavioral Impact Of Ad Exposure: comScore’s Methodology AD EXPOSED GROUP LIFT METRICS Site Visitation Test and control groups matched on Site Engagement demographic and behavioral variables Search Behavior Buying Behavior (on and offline) BALANCED UNEXPOSED GROUP © comScore, Inc. Prop
Slide 41: Display ads successfully build sales online and offline
Display ads successfully build sales – both online and offline $ per 000 Exposed % Lif t: 16.6% $11,550 $9,905 % Lif t: 27.1% $994 $1,263 Online Of f line Control Test © comScore, Inc. Proprietary and Confidential. 41
Slide 42: Questions?
QUESTIONS? Please contact us at learnmore@comscore.com if you have any additional questions or comments. © comScore, Inc. Proprietary and Confidential. 42
Slide 43: Thank You!
Thank You! Note: A copy of this presentation will be sent to all attendees within 24 hours of today’s webinar. Want more insights? Follow us on Twitter! http://twitter.com/gfulgoni http://twitter.com/comscore