Examples: Yahoo Mail, AOL Instant Messenger, MSN Groups ..

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Internet Activity Index Highlights August
2007
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Internet Activity Index - Objective

• The IAIs objective is to provide a reliable,
  ongoing measure of the time spent with key online
  activities
• The IAI looks at consumer engagement online,
  dividing Internet usage into four distinct
  activities Content, Communications, Commerce
  and Search
• By tracking share of time spent on each activity,
  the IAI provides a benchmark for charting the
  relative impact of changing market dynamics on
  these segments and identify important trends in
  Web use

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Internet Activity Index - Description

• Content - Web sites and Internet applications
  primarily providing news, information and
  entertainment
• Examples CNN.com, ESPN.com, MySpace, Windows
  Media Player, MapQuest
• Communications - Web sites and Internet
  applications that facilitate the exchange of
  messages or information between individuals or
  groups of individuals
• Examples Yahoo! Mail, AOL Instant Messenger,
  MSN Groups
• Commerce - Web sites and Internet applications
  designed for shopping
• Examples Amazon, eBay, Shopping.com, Dell.com
• Search - Web sites and Internet applications that
  provide prioritized results based on
  user-generated requests
• Examples Google Search, MSN Search, Yahoo!
  Search

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Internet Activity Index - Methodology

• The IAI is derived from a categorization of Web
  properties accounting for over 90 of active Web
  users and about 55 of total usage time
• Excludes .gov, .edu and pornographic domains
• For Web properties that cross over into multiple
  categories, site segments are classified
  individually
• For example, Yahoo! Mail is classified under
  Communications, Yahoo! Sports under Content
• Online audience metrics are collected by
  Nielsen//NetRatings and reported monthly by the
  OPA sites in the Index are proprietary to
  NetRatings and OPA
• The OPA and Nielsen//NetRatings monitor for
  significant new entries to the market and update
  the Index accordingly on an ongoing basis

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Avg Unique Audience by Category, 2003-2007
While all categories experienced growth in
audience, Content attracts the largest online
audience, followed by Communications, Search and
Commerce
Avg Unique Audience (000)
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Avg Monthly Page Views by Category, 2003-2007
Content generates the most page views, and also
experienced the greatest annual increase, up 70
from 2006 Communications has overtaken Commerce
in page views
Monthly Page Views Per Person
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Time Online by Category, 2003 vs. 2007
Content experienced the greatest growth in time
spent, nearly doubling from 2003 Communications
also captures a significant amount of user time
Monthly Avg Time per Person Online (hoursminutes)
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Share of Time Online, 2003 vs. 2007

• A dramatic shift in how users spend time online
  has taken place, with consumers now spending
  almost half of their time online with Content

2007
2003
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Internet Activity Index - Key Drivers

• Contents dominance is driven by several factors
• The online transition of traditionally offline
  activities getting news, finding entertainment
  information, checking the weather, etc
• Increased functionality and content inventory on
  media sites
• The rise of social networks, where people create
  and distribute their Content and interact with
  communities
• Videos popularity short and long-form
  leading to more time spent with Content
• Communication is popular, but more efficient with
  the rise of instant messaging over e-mail
• Commerce has steadily grown, with more people
  spending more money online
• Improved Search functionality leads to more
  searches over less time