For info about the proprietary technology used in comScore products, refer to http://comscore.com/About_comScore/Patents

Will have new cover

© comScore, Inc. Proprietary. 2

About this report

The 2017 U.S. Cross-Platform Future in Focus leverages several data sources unique to comScore:

The report is based primarily on behavioral measurement from comScore Media Metrix® Multi-Platform, which provides unduplicated reporting of

digital audiences across desktop computers, smartphones and tablets; comScore Mobile Metrix®, which provides unduplicated reporting of mobile

web and app audiences across both smartphones and tablets; and comScore Video Metrix® Multi-Platform, which provides a single, unduplicated

measure of digital video consumption across smartphones, tablets, desktops and over-the-top (OTT) devices. The report also includes survey-based

mobile data from comScore MobiLens®, search data from comScore qSearch™, online retail spending data from comScore e-Commerce

Measurement™, advertising measurement data from comScore validated Campaign Essentials™ (vCE®) and comScore Brand Survey Lift™

(BSL™), as well as cross-platform data from comScore Xmedia™, viewing data from comScore’s suite of TV and video-on-demand measurement

services and new connected home measurement via the comScore Total Home Panel™.

Important Definitions:

Total Digital: The combination of desktop and mobile.

Mobile: The combination of smartphone and tablet. When data is referring specifically to smartphones or tablets, it will be labeled accordingly.

Unique visitor: A person who visits an app or digital media property at least once over the course of a month.

Pay-TV: Subscription-based television services that are delivered via a traditional cable, telco or satellite service operator.

Digital Video Recorder (DVR): An electronic device used to record live television and watch later. Viewing via a DVR is often referred to as time-shifted recorded viewing.

Video-on-Demand (VOD): Refers to video content that is made available via the traditional cable, telco or satellite service operators for on-demand viewing, as opposed to the regularly

scheduled live TV viewing or time-shifted DVR viewing.

Over-the-Top (OTT): Refers to video content that is transmitted via the internet to one’s television set, instead of via the traditional cable, telco or satellite service operators.

For more information about subscribing to comScore services, please contact us at comscore.com/learnmore.

© comScore, Inc. Proprietary. 3

Table of Contents

Multi-Platform

Digital Media

Mobile

Social & Video Platforms

TV & Cross-Platform

Advertising

E-Commerce

Box Office

Key Takeaways

9

22

29

39

52

58

67

71

4

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 4

Multi-Platform

© comScore, Inc. Proprietary. 5

Smartphone usage has doubled in the past three years, and since

2014 it’s driven all of the growth in digital media time spent

Total digital media usage is up 40% since 2013, with mobile – particularly smartphones –driving those gains. The smartphone has continued to expand on its role in digital, even in just the last two years, as desktop and tablets have both experienced modest declines in engagement during this period.

Growth in Digital Media Time Spent in Minutes (MM)Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Dec 2013 - Dec 2016

505,591 551,184 500,173 463,814

441,693

646,324 787,541 878,654

123,661

197,446160,767

156,199

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Dec-2013 Dec-2014 Dec-2015 Dec-2016

To

tal M

inute

s (

MM

)

Desktop Smartphone Tablet

+26% vs. 2013

+99%vs. 2013

-8%vs. 2013

© comScore, Inc. Proprietary. 6

Mobile media usage surpassed the 1 trillion monthly minute milestone

in March 2016 and continues to rise

Mobile time spent continues to progress upward, hitting a huge milestone in reaching an eye-popping level of one trillion minutes of aggregate media consumption per month in 2016. This is nearly double what desktop internet usage accounted for at its peak.

Total Minutes (Billions) Spent on MobileSource: comScore Mobile Metrix, U.S., Age 18+, Dec 2013 – Dec 2016

400

500

600

700

800

900

1,000

1,100

Dec-2013 Jun-2014 Dec-2014 Jun-2015 Dec-2015 Jun-2016 Dec-2016

To

tal M

inute

s (

Bill

ions)

The average person spent

2 hrs 51 min per day on mobile

© comScore, Inc. Proprietary. 7

Mobile now represents almost 7 in 10 digital media minutes, and

smartphone apps alone account for half of all digital time spent

With desktop engagement faltering in recent years, it has lost share to mobile –which now accounts for 69% of digital media time spent. Mobile apps now drive 60% of digital time spent, and smartphone apps alone currently account for a majority of digital media consumption.

Share of Digital Media Time Spent by PlatformSource: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Total Audience, Dec 2013 – Dec 2016

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

Dec-2013 Jun-2014 Dec-2014 Jun-2015 Dec-2015 Jun-2016 Dec-2016

Share of Digital Time Spent on MOBILE APP

Share of Digital Time Spent on MOBILE

31%

60%

Share of Digital Time Spent on DESKTOP

+16pts

+16pts

-16pts

44%

53%

47%

Share of Digital Time Spent on SMARTPHONE APP+16pts

35%

51%

69%

© comScore, Inc. Proprietary. 8

Nearly one in eight U.S. internet users are now mobile-only, with 18-

24 year-old women the highest skewing for this behavior

The mobile-only

internet user is an

emerging group

within the digital

media ecosystem.

Millennials are more

likely to rely

exclusively on their

mobile devices, with

the heaviest skews

occurring among

college-aged adults

and females.

Mobile-Only Share of Digital Audience by Age SegmentSource: comScore Media Metrix Multi-Platform, U.S., Age 18+, Dec 2016

11%

16%

12%12%

22%

14%

0%

5%

10%

15%

20%

25%

Total Age 18+ Age 18-24 Age 25-34

Male Female

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 9

Digital Media

© comScore, Inc. Proprietary. 10

Google Chrome continues to widen its market share lead for desktop

browser activity, capturing a majority share of all page views in 2016

Google Chrome

gained three

percentage points of

the desktop browser

market in the 2nd

half of 2016, now

with more than 50%

of all page views.

Microsoft’s Edge

browser also saw

gains, eating into

the share of

Microsoft’s Internet

Explorer browser.

Share of Desktop Browser ActivitySource: comScore Custom Analytics, U.S., Total Audience

0%

10%

20%

30%

40%

50%

Jun-2016 Dec-2016

Sh

are

of D

eskto

p P

ag

e V

iew

s

Google Chrome

51%

Other

+3pts

+0pts

48%

Firefox-2pts14%

20% Internet Explorer-3pts17%

Safari-0pts

Edge+2pts

10%

6%

2%

12%

10%

8%

2%

© comScore, Inc. Proprietary. 11

Microsoft’s search engine Bing has grown its desktop search market

share over the past year, but the market is for the most part stable

The desktop search

market has

stabilized in recent

years with share

shifts from year to

year tending to be

relatively modest.

Market leader

Google remained

stable, but #2 player

Microsoft Bing did

manage to grow its

share by more than

one percentage

point.

Desktop Explicit Core Search ShareSource: comScore qSearch, U.S., Q4 2016

64%

23%

12%

1% 1%

Google Sites

Microsoft Sites

Yahoo! Sites

Ask Network

AOL, Inc.

+1.4 pts vs. year ago

© comScore, Inc. Proprietary. 12

Digital media audiences continue to grow on the back of mobile,

which is now 2x that of the average desktop audience

Over the past three years, digital media audiences of the Top 1000 properties have surged to an average 16.8 million visitors per month, up 38% in the past three years. All of that growth has been due to mobile, which jumped 127% in that time, and is now 2x that of the Top 1000 desktop audience.

Growth in Top 1000 Digital Media Property AudiencesSource: comScore Media Metrix Multi-Platform, U.S., Dec 2013 – Dec 2016

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Ave

rag

e #

of U

niq

ue V

isito

rs b

y P

latf

orm

(M

M)

TOTAL DIGITAL

MOBILE

DESKTOP

8.1

12.3

5.6

6.3

16.8

12.7

© comScore, Inc. Proprietary. 13

Digital is delivering audiences at scale, but the number of newly

emerging large-scale media properties is flattening

While 2015 saw a

big jump in the

number of digital

media properties

reaching large

audiences of 20+

million (+34), 2016

saw much more

modest gains (+8).

Are we now nearing

a point of audience

maturity for digital

media properties?

Number of Digital Media Properties Reaching Unique Visitor ThresholdsSource: comScore Media Metrix Multi-Platform, U.S., Dec 2016 / Dec 2015 / Dec 2014

119142 149

53

6465

0

50

100

150

200

250

Dec-2014 Dec-2015 Dec-2016

Nu

mb

er

of D

igita

l M

edia

Pro

pe

rtie

s

20-50 MM 50+ MM

+20%

+19%

+2%

+5%

© comScore, Inc. Proprietary. 14

For the Top 100 properties, incremental mobile audiences extend

their desktop audiences by a factor of 2.4x

Mobile audiences

continue to be an

important

contributor to total

digital audience.

This year mobile

helped boost the

audiences of the

Top 100 digital

media properties by

2.4x vs. desktop

alone, a multiple

that has grown

steadily in the past

few years.

Median Audience Sizes for the Top 100 Digital Media PropertiesSource: comScore Media Metrix Multi-Platform, U.S., Dec 2013 - Dec 2016

45,18050,462

56,780 57,690

28,382 29,21425,762 24,053

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Dec-2013 Dec-2014 Dec-2015 Dec-2016

Un

iqu

e V

isito

rs (

000

)

Total Digital Desktop

2.2x

1.6x 1.7x

2.4x

© comScore, Inc. Proprietary. 15

Google Sites, Facebook and Yahoo Sites remain the top digital

media properties and the only ones with 200+ MM visitors

The average Top 10 digital media property has 39% of its audience visiting only on mobile and 34% visiting on both mobile and desktop. For five of the Top 10, a majority of their digital media audiences are mobile-only visitors, highlighting the importance of mobile as a primary touchpoint for many large digital media companies.

Top Digital Properties: Unique Visitors (MM) by PlatformSource: comScore Media Metrix Multi-Platform, U.S., Dec 2016

0 50 100 150 200 250 300

Google Sites

Facebook

Yahoo Sites

Microsoft Sites

Amazon Sites

Comcast NBCUniversal

CBS Interactive

AOL, Inc.

Apple Inc.

Time Inc. Network (U.S)

Desktop Only Multi-Platform Mobile Only

209 MM

206 MM

190 MM

189 MM

164 MM

163 MM

157 MM

153 MM

129 MM

247 MM

© comScore, Inc. Proprietary. 16

There were 21 digital media properties that reached at least 100

million U.S. visitors per month across 2016

After the big three, the 2nd tier of digital media properties consists of some of the most established brands from the early days of the internet and a couple large TV publishers that have built a huge following on digital over the years. The 3rd tier consists of a mix of legacy print publishers, TV networks, social media sites and others.

Digital Media Properties By Audience TierSource: comScore Media Metrix Multi-Platform, U.S., Jan 2016 – Dec 2016

0

50

100

150

200

250

300

Properties with 100-150 MMUnique Visitors

Properties with 150-200 MMUnique Visitors

Properties with 200-250 MMUnique Visitors

Avg

. M

onth

ly U

niq

ue V

isito

rs (

MM

) fo

r F

Y

100-150 MM UVs

150-200 MM UVs

200-250 MM UVs

© comScore, Inc. Proprietary. 17

A major digital media trend in 2016 was growth in news consumption

as the U.S. presidential election captivated Americans’ attention

The U.S. presidential election was the biggest news story of the year, and digital news sites posted strong gains over the course of its 18-month news cycle. Interest reached its apex in November, as the general election coverage resulted in all-time highs in readership for many digital newspapers and political news destinations.

Newspapers and Political News Categories: Total Minutes (MM)Source: comScore Media Metrix Multi-Platform, U.S., Nov 2013 - Dec 2016

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

No

v-2

013

De

c-2

013

Jan-2

014

Feb

-2014

Ma

r-2

014

Apr-

2014

Ma

y-2

014

Jun-2

014

Jul-2

014

Aug-2

014

Sep-2

014

Oct-

2014

No

v-2

014

De

c-2

014

Jan-2

015

Feb

-2015

Ma

r-2

015

Apr-

2015

Ma

y-2

015

Jun-2

015

Jul-2

015

Aug-2

015

Sep-2

015

Oct-

2015

*

No

v-2

015

De

c-2

01

5

Jan-2

016

Feb

-2016

Ma

r-2

016

Apr-

2016

Ma

y-2

016

Jun-2

016

Jul-2

016

Aug-2

016

Sep-2

016

Oct-

2016

No

v-2

016

De

c-2

016

To

tal M

inute

s (

MM

)

Newspaper Sites

Political News Sites

+19%FY 2016 vs.

FY 2015

+122%FY 2016 vs.

FY 2015

Presidential

Primary

Elections

General

Election

* Total Minutes for the Newspapers category in October 2015 was recalculated to remove the impact of overstated data for an individual mobile news app that had a substantial

impact on topline category time spent.

** Newspapers and Political News are two sub-categories within the broader News/Information category and are not fully inclusive of all news properties. There is also a small amount

of duplication between the two sub-categories.

© comScore, Inc. Proprietary. 18

Certain leading print and TV news brands saw huge digital audience

growth as consumers demanded election coverage

The New York Times, Washington Post, CNN and Fox News were among the news organizations that had a huge year in 2016 covering the U.S. Presidential Election. While traffic peaked in October and November – with the NYT and WaPo surpassing 100 MM UVs for the first time in their respective histories – traffic was elevated throughout much of the year.

0

20

40

60

80

100

120

Avg

. M

onth

ly U

niq

ue V

isito

rs (

MM

) fo

r F

Y

FY 2015 FY 2016

Y/Y Digital Audience Growth of Select Leading Print and TV News OrganizationsBased on Average Monthly Unique Visitors for Full Year

Source: comScore Media Metrix Multi-Platform, U.S., Full Year 2016 / Full Year 2015

+36% +40%

+20%

+35%

© comScore, Inc. Proprietary. 19

Facebook and Google own the Top 8 mobile apps and 10 of the Top

20, while Snapchat is the top app not owned by either company

Top 20 Mobile Apps by Unique Visitors (000) with Y/Y GrowthSource: comScore Mobile Metrix, U.S., Age 18+, December 2016

* “Apple Music,” as it appears in comScore’s monthly reporting, is referring to Apple’s native music app, which captures all music activity within that app,

including listening via the streaming service, radio service and users’ personally downloaded music libraries..

Facebook

Google

Everyone Else

155,726

136,853

130,548

114,791

101,951

90,129

89,480

89,447

82,098

79,634

73,321

64,685

62,647

53,930

52,971

45,995

43,337

39,493

37,889

33,426

Facebook

Facebook Messenger

YouTube

Google Search

Google Maps

Instagram

Gmail

Google Play

Snapchat

Pandora Radio

Amazon Mobile

Google Calendar

Apple Music

Apple Maps

Pinterest

Google Drive

Twitter

Netflix

Spotify

The Weather Channel

Y/Y %

Change

Google and

Facebook have

strong app portfolios

that account for a

high percentage of

the top-ranked

apps. The two

companies own the

top eight positions

on the list, while

Snapchat, Pandora

and Amazon are the

biggest apps from

outside that mix.

15%

25%

22%

40%

23%

36%

19%

9%

114%

3%

9%

N/A

0%

4%

11%

9%

0%

16%

34%

-15%

© comScore, Inc. Proprietary. 20

Many of the fastest growing apps are services that improve existing

real-world behaviors, such as hailing cabs and paying cash to friends

Apps like Waze, Uber and Lyft are improving the way we get around; Tinder makes dating easier; Fitbit lets you to track your personal fitness metrics and Venmomakes it simple to digitally transfer money to friends. Bitmoji, the fastest growing app of this select group, enables self-expression through the use of personal cartoon avatars.

Fast Rising Apps – Unique Visitor TrendSource: comScore Mobile Metrix, U.S., Age 18+, Dec 2014 – Dec 2016

0

5

10

15

20

Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016

Uniq

ue

Vis

ito

rs (

MM

)

Waze

Wish

Uber

letgo

Bitmoji

OfferUp

Tinder

GroupMe

Lyft

Flipp

Venmo

+246%

+443%

+166%

+5,210%*

% Change

vs. Dec 2014

+677%

+850%

+101%

+1,213%

+1,085%*

+336%

+260%

* letgo’s percent change figure represents its app audience growth from June 2015 to December 2016.

Bitmoji’s percent change figure represents its app audience growth from February 2015 to December 2016.

© comScore, Inc. Proprietary. 21

Pokémon GO was a mobile app phenomenon that quickly surged to

attract a huge audience but has since come back down to earth

Pokémon GO: Daily Unique Visitor TrendSource: comScore Custom Analytics, U.S., Age 18+, Jul 2016 – Dec 2016

0

5

10

15

20

25

30

7/1

7/7

7/1

1

7/1

5

7/1

9

7/2

3

7/2

7

7/3

1

8/4

8/8

8/1

2

8/1

6

8/2

0

8/2

4

8/2

8

9/1

9/5

9/9

9/1

3

9/1

7

9/2

1

9/2

5

9/2

9

10

/3

10

/7

10

/11

10

/15

10

/19

10

/23

10

/27

10

/31

11

/4

11

/8

11

/12

11

/16

11

/20

11

/24

11

/28

12

/2

12

/6

12

/10

12

/14

12

/18

12

/22

12

/26

12

/30

Da

ily U

niq

ue V

isito

rs (

Mill

ions)

60% of Pokémon

Go’s users are

18-34 year-old

Millennials

Pokémon GO – a location-based augmented reality game – launched on July 6th, and in just a matter of days it was consistently capturing more than 20 million daily users. It peaked at 28.5 million daily users on July 13th

and, though eventually tailing off, provided an important glimpse into the potential of augmented reality to engage users.

28.5 Million

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 22

Mobile

© comScore, Inc. Proprietary. 23

U.S. smartphone penetration eclipsed 80% in 2016, but growth is

slowing as market adoption concludes its ‘late majority’ stage

Since the end of 2005, smartphone penetration of the mobile phone market has grown from next to nothing to 81%. Just five years ago that penetration figure was roughly half of what it is today at 42%. The remaining uncaptured market is mostly technology laggards who don’t necessarily have a high likelihood of ever making the switch.

Smartphone Penetration of Mobile Phone MarketSource: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2005 - 3 Mo. Avg. Ending Dec 2016

2% 3% 6%11%

17%

27%

42%

54%

65%

75%79% 81%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Dec2005

Dec2006

Dec2007

Dec2008

Dec2009

Dec2010

Dec2011

Dec2012

Dec2013

Dec2014

Dec2015

Dec2016

© comScore, Inc. Proprietary. 24

Smartphone penetration among Millennials is already near its

saturation point, while the oldest users still have room to grow

Smartphone Penetration by Age SegmentSource: comScore MobiLens, U.S., Age 18+, 3 Mo. Avg. Ending Dec 2016 / Dec 2015

79%

94% 93%

84%

58%

81%

94% 94%

86%

61%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total: Age 18+ Age 18-24 Age 25-34 Age 35-54 Age 55+

Dec-2015 Dec-2016Millennial smartphone penetration has been relatively flat since 2015, which is expected considering it is already solidly above 90%. The 55-and-older segment has the most room for growth and experienced the biggest bump with a 3-point increase in 2016. Still, it will likely be a slow climb to reach 80 or 90% penetration.

© comScore, Inc. Proprietary. 25

The U.S. market share for smartphone operating systems has

stabilized in recent years with Android #1 and iOS a strong #2

Smartphone OS market share has shifted immensely from its early years, but has remained relatively stable since 2013. It now appears that the most popular device for accessing the internet will be dominated by two major players’ software platforms for the foreseeable future.

Smartphone Platform Market Share: Long-Term TrendSource: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2005 - 3 Mo. Avg. Ending Dec 2016

1% 5%

29%

47%53% 51% 53% 53% 54%

9%17%

25%

25%

30%

36% 42% 42% 43% 43%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

HP/Palm

Symbian

BlackBerry

Microsoft

iOS

Android

© comScore, Inc. Proprietary. 26

But Apple remains the largest smartphone OEM at 43%, with the

remaining share split about evenly between Samsung and all others

In the past three

years, the U.S.

market share for

smartphone original

equipment

manufacturers

(OEMs) has seen

minor growth from

Apple and Samsung

at the expense of

most others. Like

the smartphone

software market, the

OEM market is

maturing in the U.S.

* The months of April and May 2015 were calculated using their single month of data vs. the 3-month

average, due to an improved sample weighting methodology introduced in April.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Smartphone OEM Market Share: 3-Year Trend Source: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2013 - 3 Mo. Avg. Ending Dec 2016

28%

43%

29%32%

42%

26%

Apple

All Others

Samsung

© comScore, Inc. Proprietary. 27

iPhone owners were rapidly upgrading to the 6 models, until

September when the latest 7 models were introduced

Apple’s iPhone 3, 4,

and 5 models

collectively lost

nearly 42 million

users since 2014,

but more than made

that up by gaining

37 million new

iPhone 6 and 6 Plus

users, and another

16 million users of

its latest SE, 7 and

7 Plus models.

Trend of U.S. Apple iPhone Users (MM) by Device FamilySource: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Dec 2014 - 3 Mo. Avg. Ending Dec 2016

24.219.2 15.4 12.1 9.7 8.0 6.1 5.0 4.1

39.339.0

38.737.0

30.827.2

24.922.1

17.8

7.9 14.9 20.624.0

30.536.0

37.637.2

33.4

3.76.4 7.1 9.1 11.6 13.6

14.415.8

15.0

3.0

7.5

5.1

0

10

20

30

40

50

60

70

80

90

Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016

Ap

ple

iP

ho

ne

Use

rs (

MM

)

Apple iPhone 7 Plus

Apple iPhone 7

Apple iPhone SE

Apple iPhone 6/6S Plus

Apple iPhone 6/6S

Apple iPhone 5/5S/5C

Apple iPhone 3G/4/4S

© comScore, Inc. Proprietary. 28

The smartphone market has transitioned heavily to large screen

models, which now outnumber small screen devices by 4x

More consumers

are adopting

smartphones with a

4.5” display or

greater, while tablet

ownership growth

has pulled back in

recent years. This

correlation could be

due to tablets and

larger screen

smartphones

sharing many of the

same use cases.

Device Ownership by Smartphone Screen Size and TabletSource: comScore MobiLens, U.S., Age 13+, 3 Mo. Avg. Ending Sep 2014 - 3 Mo. Avg. Ending Dec 2016

0

20

40

60

80

100

120

140

160

180

De

vic

e O

wn

ers

(M

M)

Tablet

<4.5”

4.5”+

* The months of April and May 2015 were calculated using their single month of data vs. the 3-month

average, due to an improved sample weighting methodology introduced in April.

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 29

Social &

Video Platforms

© comScore, Inc. Proprietary. 30

Share of Total Digital Time Spent by Content CategorySource: comScore Media Metrix Multi-Platform, U.S., Total Audience, December 2016

Social media and video viewing are the two most popular online

activities, together accounting for more than a third of all internet time

Social Media20%

Multimedia14%

Entertainment - Music11%

Games8%

Portals5%

Retail5%

Directories/Resources4%

News/Information3%

e-mail3%

Search/Navigation3%

Instant Messengers2%

Photos2%

Lifestyles2%

Sports2%

All Other16% Social Media leads

all categories in engagement, accounting for 1 out of 5 minutes spent online. The next largest categories being Multimedia, Music and Games highlight that digital is being increasingly used for entertainment – now more so than ever with the rise of mobile and consumers’ need to make use of their “in-between” time.

© comScore, Inc. Proprietary. 31

The smartphone app is by far the most popular access point for social

media usage, with greater relative usage than the internet as a whole

The vast majority of social media consumption (70%) occurs on mobile apps, driven largely by smartphones. The smartphone app is the dominant social platform in the U.S., accounting for 60% of all social media time spent, which is 9 percentage points greater than the internet as a whole.

Share of Time Spent on Social Media vs. Total Internet Across Different PlatformsSource: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., Dec 2016

31%

21%

51%

60%

8%

6%

9%

10%

2%

2%

Total Internet

Social Media

Desktop Smartphone App Smartphone Web Tablet App Tablet Web

+9 pts for Social Media

© comScore, Inc. Proprietary. 32

Millennials use several social networks regularly, with Facebook

commanding the lead in both audience size and engagement

After Facebook,

Snapchat has the

highest engagement

per visitor among

Millennials, just

slightly ahead of

Instagram – which

is 2nd in terms of

penetration.

Millennials overall

have a more diverse

diet of social media

platforms they

engage with on a

regular basis.

Age 18-34 Digital Audience Penetration vs. Engagement of Leading Social NetworksSource: comScore Media Metrix Multi-Platform, U.S., Dec 2016

0

200

400

600

800

1,000

1,200

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ave

rag

e M

onth

ly M

inute

s p

er

Vis

ito

r

% Reach Among Age 18-34

© comScore, Inc. Proprietary. 33

The 35+ population also uses Facebook heavily, but doesn’t spread

its attention across other networks to the extent Millennials do

Age 35+ users show

a higher relative

preference for

Facebook in relation

to other social

media platforms.

They do have high

penetration among

several others

beyond Facebook,

but they don’t

engage with any

other platforms for

more than 100

minutes per month.

Age 35+ Digital Audience Penetration vs. Engagement of Leading Social NetworksSource: comScore Media Metrix Multi-Platform, U.S., Dec 2016

0

200

400

600

800

1,000

1,200

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ave

rag

e M

onth

ly M

inute

s p

er

Vis

ito

r

% Reach Among Age 35+

© comScore, Inc. Proprietary. 34

While Facebook’s users mirror the internet as a whole, Snapchat,

Instagram and Tumblr have a younger audience profile

Snapchat is the

youngest skewing

social network with

more than half of its

users between the

ages of 18-34. It’s

demographic

composition is now

much more diverse

in age than a year

ago, as adoption

among the 35+

population has

improved.

Age Demographic Composition % of Major Social NetworksSource: comScore Media Metrix Multi-Platform, U.S., Age 18+, Dec 2016

15.020.6

13.117.7 14.7

28.5

13.3

25.7

20.6

25.2

23.122.5

23.1

24.9

24.1

23.9

18.5

20.1

21.319.5 22.3

16.6

22.6

17.117.7

15.4

17.917.9 17.7

13.5

16.6

14.0

17.5

14.917.0 16.5 16.6

12.4

18.112.8

10.63.9 7.6 5.9 5.7 4.1 5.4 6.4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Age 65+

Age 55-64

Age 45-54

Age 35-44

Age 25-34

Age 18-24

© comScore, Inc. Proprietary. 35

Snapchat has rapidly gained adoption among Millennials and now

attracts most 18-24 year-olds and almost half of 25-34 year-olds

Snapchat’s strength among younger demographics is well-established and is especially good at reaching the coveted Millennials demographic. With a firm grasp on the college-age segment, Snapchat has made huge gains in penetration older Millennials as it gains more mainstream market adoption.

Snapchat Smartphone App Penetration by AgeSource: comScore Mobile Metrix, U.S., Age 18+, Dec 2013 – Dec 2016

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Dec-2013 Apr-2014 Aug-2014 Dec-2014 Apr-2015 Aug-2015 Dec-2015 Apr-2016 Aug-2016 Dec-2016

% R

each

Age 25-34

48%

12%

38%

Age 18-2478%

© comScore, Inc. Proprietary. 36

Snapchat steadily climbed the app rankings to crack the Top 10 in

2016, as mobile video becomes a new communication medium

Snapchat’s

continued gains in

adoption has led to

a steady increase in

its rank among the

top smartphone

apps. November

2016 marked the

first month

Snapchat cracked

the Top 10, and it

followed that up by

jumping another

spot to #9 to close

out 2016.

1718

1715

1413 13 13 12 12

1110 9

0

2

4

6

8

10

12

14

16

18

20

Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016

Ra

nk A

mo

ng

Sm

art

ph

on

e A

pp

s

Snapchat Rank in Audience Penetration Among Smartphone AppsSource: comScore Mobile Metrix, U.S., Age 18+, Dec 2015 - Dec 2016

Top 10

© comScore, Inc. Proprietary. 37

YouTube has also seen success with mobile video, with 7 out of 10

minutes of their viewing now happening on smartphones and tablets

YouTube Share of Time Spent by Digital PlatformSource: comScore Video Metrix Multi-Platform, U.S., December 2016

30%

70%

Mobile Desktop

YouTube, which was

originally launched

in the desktop era,

has seen usage

shift heavily to

mobile in recent

years, with more

than 2x as much

viewing on mobile

than on desktop.

This disparity is

even more

pronounced among

18-49 year-olds and

women.

© comScore, Inc. Proprietary. 38

YouTube: Engagement Metrics by PlatformSource: comScore Video Metrix Multi-Platform, U.S., December 2016

4.7

3.7

Desktop Mobile

355

847

Desktop Mobile

Average Monthly Minutes

per Viewer

Average Minutes

per Video View

Average Monthly Videos

Watched per Viewer

76

230

Desktop Mobile

Mobile YouTube viewing is shorter-form but much more frequent,

leading to 3x as many video views on mobile overall

Viewers tend to

watch longer videos

on desktop than on

mobile, but they

watch a lot more

videos overall on

mobile. The

portability and

accessibility of

mobile devices

allow for frequent

short-form video

viewing experiences

throughout the day.

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 39

TV &

Cross-Platform

© comScore, Inc. Proprietary. 40

Live viewing still dominates total TV time, but time-shifted viewing is

more prevalent with primetime content

Live TV still makes

up the bulk of TV

viewing hours, but

time-shifted viewing

on DVR accounts

for a significant

percentage of the

total viewing hours,

particularly for

primetime content.

Video-on-demand

(VOD) only

accounts for 1% of

TV viewing time.

Share of Total TV Viewing Time: Live, DVR & VODSource: comScore TV Essentials, U.S., FY 2016, Live +15 Day DVR; comScore State of VOD Trend Report

84.0%74.7%

14.9%24.6%

1.1% 0.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Viewing Primetime Content

Sh

are

of T

ota

l T

V V

iew

ing

Tim

e

Video-on-Demand (VOD)

Digital Video Recorder (DVR)

Live TV

* Total TV viewing includes live TV, DVR and VOD, and does not include streaming via over-the-top (OTT) services.

© comScore, Inc. Proprietary. 41

There’s a wide variance in time-shifted TV viewing by genre, with

News and Sports content still skewing heavily toward live viewing

Not surprisingly, the News and Sports genres still see the vast majority of viewing time happening live since content relevance declines quickly post-event. Meanwhile, Dramas have a much higher percentage of time-shifted viewing since these programs tend to have week-to-week storylines that viewers want to keep current with, but don’t always need to watch on the day and time they originally air.

Live TV and DVR Time Split by GenreSource: comScore TV Essentials, U.S., FY 2016, Live +15 Day DVR

71%

75%

85%

85%

90%

90%

29%

25%

15%

15%

10%

10%

Drama

Reality

Comedy

Movies

News

Sports

Live TV DVR +15 Days

© comScore, Inc. Proprietary. 42

Time-shifted DVR usage is especially popular among genres with

dramatic, original programming

Genres with

ongoing storylines

that viewers follow

week-to-week, or

that require a full

episode’s worth of

attention, see more

time-shifted viewing.

This time-shifting

varies greatly even

within the Top 10,

with Thriller/Horror

seeing nearly 3x

more time-shifting

than Travel content.

Genres with Highest Percentage of Time-Shifted DVR ViewingSource: comScore TV Essentials, U.S., FY 2016, +15 Day DVR

46%

34%

31%

29%

25%

25%

18%

17%

16%

16%

Thriller/Horror

Soap Opera

Action/Adventure

Drama

Reality

Science Fiction/Fantasy

Variety

Foreign Language

Documentary

Travel

© comScore, Inc. Proprietary. 43

Millennials and Gen Xers spend more time on digital media than

watching live TV, a sign of shifting media consumption dynamics

The younger demographic segments are more likely to spend time on their mobile device and less likely to spend time watching live TV. In fact, Millennials already spend more time on mobile than they do watching live TV. It should be noted, however, that younger viewers are likely watching more TV via OTT services and time-shifted via DVR and video-on-demand (VOD).

Hours Spent on Platform by DemographicsSource: comScore Xmedia (Custom) and Media Metrix Multi-Platform, U.S., Q4 2016

19.1

26.6

37.0

6.9 8.9 6.8

23.1 18.5

9.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Live TV Digital Live TV Digital Live TV Digital

Tota

l H

ours

(B

illio

ns)

Live TV Desktop Mobile

Age 18-34 Age 35-54 Age 55+

* Time spent on desktop and mobile accounts for all content consumption on these devices (i.e. websites and apps),

not just digital video.

© comScore, Inc. Proprietary. 44

Nearly 1/3rd of the OTT audience is ‘cordless’ and doesn’t subscribe to

pay-TV, with half of those being ‘streaming only’ households

Cable45.1%

Satellite24.3%

Streaming + Cordless Antenna

15.2%

Streaming Only15.4%

Cordless

30.6%

Over-the-Top (OTT) Households by TV Service TypeSource: comScore Total Home Custom Reporting, U.S., December 2016

Although there are many over-the-top households who use these services as a replacement for pay-TV, more than two-thirds of OTT households use it as a supplement to their cable or satellite service package. Only 15% of OTT households depend solely on this content for all of their TV viewing.

* Households that use an antenna in addition to their cable or satellite services are included in those respective shares.

© comScore, Inc. Proprietary. 45

Live TV, DVR and OTT all have the same ‘primetime’ with viewing

peaking in the evening hours, though it’s most pronounced for DVR

The evening hours are primetime for all types of TV viewing. DVR sees the highest percentage of consumption during this time, as viewers save their favorite programs for the most convenient time to watch – often that window after dinner and before bed. The peak viewing hour for all three is during the 9 PM hour.

Household Share of TV Viewing Type by DaypartSource: comScore TV Essentials & Total Home Custom Reporting, U.S., December 2016

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Live TV DVR +15 Over-the-Top (OTT)

© comScore, Inc. Proprietary. 46

Households with both TV and OTT still watch more than 5 hours of

live TV for every one hour spent watching OTT content

Ratio of Live TV Viewing Hours per Hour of OTT Viewing in HHs with Both ServicesSource: comScore Single-Source (TV + OTT) Custom Reporting, U.S., December 2016

Among households

that watch both

traditional television

and OTT, live TV

still dominates total

viewing time. While

OTT has been

carving out more

viewing time in the

typical home, this

data suggests that

it’s supplemental

rather than primary

for homes with both

viewing options.0 1 2 3 4 5 6

Live TV

OTT

Viewing Hours

5 Hours & 28 Minutes

1 Hour

© comScore, Inc. Proprietary. 47

In combined viewing households, even the heaviest OTT viewers

consume more than twice as much live TV content as OTT

Over-the-Top (OTT) and Live TV Time Split Among HHs with Both ServicesSource: comScore Single-Source (TV + OTT) Custom Reporting, U.S., December 2016

Among households

that watch

traditional TV and

OTT content, even

the heaviest OTT

households still

spend a lot more

time watching live

TV. Despite the

availability of more

‘on-demand’ content

than ever before,

viewers still have a

tendency to watch

what’s on.2%14%

31%

98%

86%69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Light OTT Viewers Medium OTT Viewers Heavy OTT Viewers

Sh

are

of V

iew

ing

Ho

urs

Live TV

OTT

Heavy OTT = Top 20% segment of OTT viewers by duration

Medium OTT = Top 20-50% segment of OTT viewers by duration

Bottom OTT = Bottom 50% segment of OTT viewers by duration

© comScore, Inc. Proprietary. 48

A variety of connected devices are now being used to watch OTT

content, with streaming boxes and sticks the most popular

37%

31%

27%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Streaming Box/Stick Gaming Console Connected TV Internet Blu-ray Player

Pe

ne

tra

tion

of U

.S. W

i-F

i HH

s

Connected Home Devices: Penetration of U.S. Wi-Fi HouseholdsSource: comScore Connected Home, U.S., December 2016

Households have

several tech options

for streaming over-

the-top TV content

to their television

sets. Streaming

boxes/sticks, such

as Roku devices,

have the highest

household

penetration, but

gaming consoles

and “smart” TVs are

other popular

options.

.

© comScore, Inc. Proprietary. 49

Roku is the most popular box or stick for streaming video, but

Amazon, Google and Apple remain key players in this market

18%

12%

8%

5%

TV Streaming Boxes/Sticks: Penetration of U.S. Wi-Fi HouseholdsSource: comScore Connected Home, U.S., December 2016

With streaming

boxes/sticks as the

most popular method

for streaming OTT

content, many of the

largest technology

companies are

battling to be the

platform-of-choice for

consumers’ living

rooms. Despite the

competition from

huge tech companies

with deep wallets,

Roku is currently the

market leader.

.

* Roku’s number includes Roku OS TVs, which account for a small percentage of its total penetration.

© comScore, Inc. Proprietary. 50

Netflix leads the major over-the-top streaming services in both

household penetration and viewing engagement

Netflix has the

highest household

penetration and

viewing time per

month among the

major OTT content

services. Hulu isn’t as

widely penetrated but

attracts comparable

viewing engagement

on a per-household

basis. YouTube and

Amazon are also in

the mix and have

solid positions in the

OTT market.

Selected Over-the-Top (OTT) Streaming Services by Wi-Fi Household Penetration & EngagementSource: comScore OTT Intelligence, U.S., December 2016

0

5

10

15

20

25

30

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Avg.

Mon

thly

Vie

win

g H

rs. pe

r H

H

Wi-Fi Household Penetration

© comScore, Inc. Proprietary. 51

Sling TV, a popular ‘skinny bundle’ option, has seen adoption

quickly accelerate in OTT households in the second half of 2016

Sling TV, which is a less expensive, less robust alternative to cable, was being used in nearly two million households by the end of 2016. PlayStation Vue and DirecTV Now are similar services offering live streaming packages of pay-TV channels, in what will likely be an increasingly common trend to attract cord-cutters and cord-nevers.

Sling TV Household Reach (Millions)Source: comScore OTT Intelligence, U.S., 3 Mo. Avg. Ending Jul 2016 - 3 Mo. Avg. Ending Dec 2016

0.7

1.0

1.2

1.5

1.7

1.9

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Jul-2016 Aug-2016 Sep-2016 Oct-2016 Nov-2016 Dec-2016

To

tal H

ouse

ho

lds (

Mill

ions)

HHs watched 48 hours of

Sling TV,

the highest per-HH viewing

of any OTT service

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 52

Advertising

© comScore, Inc. Proprietary. 53

Nearly half of digital ad impressions can’t have an impact because

they’re not viewable or not delivered to a human

Nearly half of all desktop ad impressions are unable to deliver an advertising impact. While most of these non-viewable ads are simply delivered to parts of the web page that are out of view, a meaningful percentage is being delivered to bots and other forms of invalid traffic that is by definition not viewable to a human.

Percentage of Viewable Desktop Ad Impressions in U.S.Source: comScore vCE Benchmarks, U.S., Q4 2016

54%40%

6%

Viewable

Non-viewable

Invalid Traffic (IVT)

© comScore, Inc. Proprietary. 54

Sophisticated IVT is the overwhelming majority of invalid ad traffic,

requiring advanced detection methods to combat this form of waste

Sophisticated IVT, which according to the Media Rating Council (MRC) includes “traffic originating from hijacked devices, malware or misappropriated content,” accounts for the vast majority of invalid traffic. Sophisticated detection techniques are therefore required for advertisers to mitigate the potential for waste.

Invalid Traffic (IVT) by TypeSource: comScore vCE (Custom), U.S., December 2016

89%

11%

Sophisticated IVT

General IVT

© comScore, Inc. Proprietary. 55

Directly bought digital display and video ad inventory is more

viewable and has a lower incidence of invalid traffic

Percentage of Viewable Ad Impressions & Invalid Traffic (IVT) – Display vs. VideoSource: comScore vCE Benchmarks, U.S., Q4 2016

60%

70%

52%47%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Desktop Display Desktop Video

% o

f A

d Im

pre

ssio

ns

Direct Programmatic

% Viewable % Invalid Traffic

4%5%

6%

11%

0%

2%

4%

6%

8%

10%

12%

Desktop Display Desktop Video

% o

f A

d Im

pre

ssio

ns

Direct ad buys and

display ads tend to

outperform

programmatic buys

and video ads,

respectively, when it

comes to appearing

in view and being

seen by humans.

Programmatic video

ads are the most

susceptible to low

rates of viewability

and high rates of

invalid traffic.

© comScore, Inc. Proprietary. 56

Invalid traffic levels have been stable for display ads, but the

problem is growing for higher-CPM video ads

U.S. Desktop Invalid Traffic Comparison: Display vs. Video NormsSource: comScore vCE Benchmarks, U.S., 2016

5.8% 6.0% 6.2% 6.1%

8.5% 8.5%9.3%

10.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Q1 2016 Q2 2016 Q3 2016 Q4 2016

% o

f In

va

lid T

raff

ic

Display Video Given the higher CPMs for video, advertising on the medium has become increasingly susceptible to invalid traffic. This will continue to be a challenge for the industry, underscoring the importance of sophisticated detection techniques.

© comScore, Inc. Proprietary. 57

Both desktop and mobile ads deliver branding effectiveness, but

mobile performs better – particularly at the bottom of the funnel

Mobile ads caused point lifts up to 3x greater than ads on desktop across four key brand metrics and performed especially strong in middle and bottom-funnel metrics, such as favorability, intent to buy and likelihood to recommend. Less ad clutter and proximity to point of purchase may be driving better effectiveness for mobile ads.

Percentage Point Lift in Brand Metrics for Desktop and Mobile AdsSource: comScore BSL and BSL Mobile Benchmarks, U.S., 2014 - 2016

Aided awareness

Favorability

Likelihood to recommend

Purchase Intent

1.3 2.6

1.3 2.9

1.5 2.8

1.3 4.0

Desktop Mobile

3.1xdesktop

1.9xdesktop

2.2xdesktop

2.0xdesktop

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 58

E-Commerce

© comScore, Inc. Proprietary. 59

By Q4 2016, total digital commerce had grown to account for more

than 1 out of every 6 discretionary retail dollars

Desktop & Mobile Digital Commerce Share of Corresponding Consumer Spending*Source: U.S. Dept. of Commerce, comScore e-Commerce & m-Commerce Measurement, U.S., 2004 - 2016

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

15%

16%

17%

18%

Digital Commerce Share (desktop + mobile)

e-Commerce Share (desktop)

*Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales excluding Food Service & Drinking, Food & Bev. Stores,

Motor Vehicles & Parts, Gasoline Stations and Health & Personal Care Stores.

15.0%(Q4 ‘15)

13.5%Q4 ‘16

17.0%Q4 ‘16

12.5%(Q4 ‘15)

Digital’s share of

consumer

discretionary

spending, which

peaks in seasonally

colder months,

reached an all-time

high in Q4 2016 at

17%. Digital

commerce share

appears to be

accelerating slightly

in recent years due

to the impact of

mobile.

© comScore, Inc. Proprietary. 60

Boosted by a growing share of mobile, total digital commerce

surpassed the $100 billion mark in Q4 2016 for the first time

While desktop

spending has

continued to grow

every year, mobile

is now driving much

of the growth and

contributing an

increasing share of

online discretionary

retail sales. Mobile

pushed digital

commerce to its

highest quarterly

total ever in Q4.

U.S. Quarterly Online Retail Spending by PlatformSource: comScore e-Commerce & m-Commerce Measurement, U.S., 2013 - 2016

$50.2 $49.8 $47.5

$63.1 $56.1 $54.8 $53.9

$72.1

$61.1 $59.8 $58.3

$76.9 $67.9 $69.9 $67.4

$86.6

$5.9 $4.7 $5.8

$8.3

$7.3 $6.9 $6.7

$10.7

$11.1 $11.1 $11.4

$15.6

$15.6 $17.3

$16.9

$22.7

$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Bill

ions (

$)

Desktop Mobile

$109.3

Billion

© comScore, Inc. Proprietary. 61

Mobile commerce growth rates far outpaced those of desktop

e-commerce and bricks-and-mortar in 2016

2016 was a strong year for U.S. discretionary retail, with e-commerce contributing some of the strongest gains. Mobile commerce, which is still a smaller market than desktop and brick-and-mortar, saw the fastest growth rate at 47% -- far outpacing the two other primary retail channels.

Full Year 2016 Y/Y Retail Spending Growth by ChannelSource: U.S. Dept. of Commerce, comScore M-Commerce and E-Commerce Measurement, U.S., FY 2016 / FY 2015

+5%

+14%

+47%

+0%

+5%

+10%

+15%

+20%

+25%

+30%

+35%

+40%

+45%

+50%

Total Discretionary Retail e-Commerce m-Commerce

© comScore, Inc. Proprietary. 62

Mobile commerce continues to gain share of digital commerce,

surpassing the 20% mark in the second half of the year

M-commerce has come a long way in the past 6 years and now contributes about 1 in every 5 dollars spent via digital commerce. 2016 saw a continuation of the platform’s gains in its percent share of the total market, as consumers become increasingly comfortable transacting on their smartphones and tablets.

Quarterly Trend in Mobile Commerce as a Share of Total Digital CommerceSource: comScore M-Commerce and E-Commerce Measurement, U.S., Q2 2010 – Q4 2016

1.8%2.4%

3.6%

5.8%6.6%

8.8% 9.0% 9.3%

8.1%

9.8%

11.3%10.5%

8.6%

10.8%11.7%11.5%11.1%11.1%

13.0%

15.4%15.6%16.4%

16.9%

18.6%

19.8%20.0%20.8%

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

© comScore, Inc. Proprietary. 63

However, in 2016, dollars still significantly lagged digital media time

spent on mobile, highlighting the mobile conversion challenge

Mobile accounted for 67% of time spent shopping online, but only 20% of digital retail spend in 2016. Factors such as security concerns and smaller screen size continue to add friction to mobile purchases. While this m-commerce monetization gap will narrow once mobile’s share of time spent stabilizes, the two aren’t likely to ever reach equilibrium.

2016 Share of Retail Time Spent vs. Spending by PlatformSource: comScore M-Commerce and E-Commerce Measurement, U.S., FY 2016

67%

20%

33%

80%

Time Spent Dollars Spent

Desktop

Mobile

47%

Gap

© comScore, Inc. Proprietary. 64

Several e-commerce product categories grew more than 20% in 2016,

led by Jewelry & Watches and Furniture & Appliances

Online retail grew 19% year-over-year in 2016, with the fastest growing categories seeing most of their gains on mobile. The fact that the top couple of product categories by growth contain more expensive and complicated items shows that consumers are becoming more comfortable making these types of purchases on their smartphones and tablets.

Y/Y % Change in Total Retail Digital Commerce Dollars by CategorySource: comScore E-Commerce and M-Commerce Measurement, U.S., FY 2016 vs. FY 2015

39%

26%

24%

24%

24%

24%

22%

21%

20%

19%

18%

17%

17%

16%

16%

15%

15%

14%

Jewelry & Watches

Furniture, Appliances & Equipment

Video Games, Consoles & Accessories

Flowers, Greetings & Misc Gifts

Event Tickets

Computer Software

Home & Garden

Music, Movies & Videos

Apparel & Accessories

Total Digital Commerce

Office Supplies

Consumer Packaged Goods

Sport & Fitness

Toys & Hobbies

Consumer Electronics

Digital Content & Subscriptions

Computers / Peripherals / PDAs

Books & Magazines

© comScore, Inc. Proprietary. 65

Apparel & Accessories is now the clear #1 product category online,

edging out Computer Hardware for the 2nd straight year

Computer Hardware was the longtime #1 category in digital commerce, but Apparel & Accessories has emerged over the last few years to establish itself as the new #1. Gains in mobile commerce, along with consumers’ increasing comfort with online returns, have helped boost the category to new heights.

Digital Commerce Sales by Category: Apparel & Accessories vs. Computer HardwareSource: comScore E-Commerce & M-Commerce Measurement, U.S., Q1 2013 – Q4 2016

$8.4 $8.4

$7.1

$12.3

$9.9 $10.0

$8.4

$15.0

$12.4$11.8

$10.1

$17.2

$14.0 $14.7

$12.9

$20.3

$9.2 $9.1$9.9

$13.5

$10.2 $10.0$11.3

$15.9

$11.1 $11.0

$11.8$16.0

$12.5$13.0

$13.6

$18.2

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Bill

ions (

$)

APPAREL & ACCESSORIES

COMPUTER HARDWARE

© comScore, Inc. Proprietary. 66

The 2016 holidays saw retail traffic peak on Black Friday and Cyber

Monday, with mobile outpacing desktop every day this season

Mobile accounted

for 62% of all online

retail visits this

holiday season and

outpaced desktop

every single day of

the season. Mobile

visits peaked on

Black Friday, while

desktop visits

peaked on Cyber

Monday, which saw

more overall retail

traffic than any

other day in 2016.

2016 Holiday Season: Digital Retail Visits (MM) by PlatformSource: comScore Custom Analytics, U.S., Nov 1 – Dec 31, 2016

0

200

400

600

800

1,000

1,200

11/1/2016 11/8/2016 11/15/2016 11/22/2016 11/29/2016 12/6/2016 12/13/2016 12/20/2016 12/27/2016

Vis

its (

MM

)

MOBILE

DESKTOP

TOTAL DIGITAL

Black Friday Cyber Monday

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 67

Box Office

© comScore, Inc. Proprietary. 68

Disney led all film studios in 2016 market share, taking in more than

a quarter of the box office dollars on the strength of its franchises

North America Box Office Market Share by Film Studio in 2016 vs. Year AgoSource: comScore Box Office Essentials, North America, FY 2016 vs. FY 2015

22%

20%

14%

13%

9%

6%

6%

10%

Other26%

17%

13%

12%

8%

8%

6%

10%

Other

2015 2016 Disney had a huge 2016 at the box office, growing its market share by 6 percentage points from a year ago. Warner Bros. and Paramount also grew their market shares, while Universal couldn’t quite match its level of success from 2015, boosted by Jurassic World, Furious 7 andMinions. Overall, the “Big Seven” major studios took in more than 90% of the 2016 box office dollars.

© comScore, Inc. Proprietary. 69

As was the case in 2015, the Top 10 in 2016 featured mostly action movies and animated family-friendly films, with Disney distributing four of the top five films in 2016. Impressively, Star Wars: The Force Awakens cracked this past year’s Top 10 despite being released in mid-December 2015.

Finding Dory led the 2016 domestic box office as one of six Disney

films to rank in the Top 10

Top 10 Grossing Box Office Movies in 2016 ($ Millions)Source: comScore Box Office Essentials, North America, Jan. 1 – Dec. 31, 2016

$486.3

$408.2

$408.1

$368.4

$364.0

$363.1

$341.3

$330.4

$325.1

$284.7

Finding Dory

Rogue One: A Star Wars Story*

Captain America: Civil War

Secret Life Of Pets, The

Jungle Book, The

Deadpool

Zootopia

Batman V Superman: Dawn Of Justice

Suicide Squad

Star Wars: The Force Awakens

* Rogue One was released on December 16, 2016, and therefore was only in theaters the last two weeks of the year.

Warner Bros.

20th Century Fox

Universal

Disney

© comScore, Inc. Proprietary. 70

As was the case last year, 20th Century Fox was home to two of the biggest movies in 2016 in terms of total digital purchases and rentals. As with the top grossing box office movies, action films tended to be most popular among audiences, even on the “small screen,” but comedies and sci-fi films also had notable success this year.

20th Century Fox had the top two digital movie rentals of 2016 with

Deadpool and The Martian

RANK TITLE STUDIO

1 Deadpool (2016) Fox

2 Martian, The (2015) Fox

3 Zootopia (2016) Disney

4 Star Wars: Episode VII - The Force Awakens (2015) Disney

5 Batman V Superman: Dawn Of Justice (2016) Warner

6 The Hunger Games: Mockingjay - Part 2 (2015) Lionsgate

7 Revenant, The (2015) Fox

8 Captain America: Civil War (Theatrical) Disney

9 Daddy's Home (2015) Paramount

10 Suicide Squad (2016) Warner

11 Intern, The (2015) Warner

12 Big Short, The (2015) Paramount

13 Finding Dory (2016) Disney

14 13 Hours: The Secret Soldiers Of Benghazi (2016) Paramount

15 Bridge Of Spies (2015) Disney

16 Sicario (2015) Lionsgate

17 Star Trek Beyond (2016) Paramount

18 Hateful Eight, The Starz Entertainment

19 Central Intelligence (Unrated) (2016) Warner

20 X-Men: Apocalypse (2016) Fox

* Excludes NBC Universal and non-participating Independent distributors. EST revenue source: DEG

Top 20 Digital Movie Purchases & Rentals in 2016Source: comScore Digital Download Essentials, U.S., Jan. 1 – Dec. 31, 2016

© comScore, Inc. Proprietary.© comScore, Inc. Proprietary. 71

Key Takeaways

© comScore, Inc. Proprietary. 72

Key Themes for 2017

1 The Maturation of

Mobile 2 A Cross-Platform

Ecosystem Emerges

Today’s media environment is fragmented,

messy and complex. Siloed platforms,

varying ad formats, and disparate buying and

selling processes all add friction that inhibit

coordinated marketing strategies.

Issues of digital ad viewability and fraud only

add to the confusion, erode trust, and distract

from how advertising performance ought to

be measured.

Ad measurement is finally getting back to

basics with a return to the metrics that matter

– reach, frequency, impressions,

demographics – which are every bit as

relevant today as they have ever been. But

they are also getting more advanced, with the

ability to go deeper on audience descriptors

and tying to behavioral outcomes.

3 Advertising Gets Back

to the Basics

The U.S. smartphone market is nearing

saturation and the tablet market has flattened.

Advances in device technology are now

growing incrementally rather than by leaps

and bounds.

While mobile now dominates digital media

usage, consumption is beginning to stabilize

and the days of huge growth are over. Digital

media audiences are in the latter stages of a

multi-year boom.

Consumer usage trends always shift faster

than dollars, but now is the time for the

economics to catch-up with behavior. This will

be enabled by better measurement, improved

industry standards and less friction in running

mobile ad campaigns.

Digital media has gone cross-platform, and

more devices than ever before are being used

to access content inside the home.

Desktop and mobile media usage are

converging with traditional TV and OTT, as

consumers watch their favorite content through

any number of devices, including smart TVs,

streaming boxes and gaming consoles.

The cross-platform era will be defined by a

media-agnostic view of the consumer and

comparable metrics to facilitate efficient media

planning, buying and selling.

© comScore, Inc. Proprietary. 73© 2017 comScore, Inc.For info about the proprietary technology used in comScore products, refer to http://www.comscore.com/About-comScore/Patents

For more information

about comScore and its

measurement products,

please visit:

For more information about the report, please contact:

ANDREW LIPSMAN,

VP Marketing & Insights

ADAM LELLA,

Senior Marketing Insights Analyst

comscore.com/learnmore

alipsman@comscore.com

alella@comscore.com

comscore.com

@comscore comScore, Inc. comScore, Inc.