Search and Entertainment Content Driving

Massive Changes in Filipino Online Behaviour

In partnership with Nielsen Media, Yahoo! delivers insights to help
advertisers make sense of Internet trends in Philippines.

MANILA, JUNE 8, 2010 – With 29.7 million Internet users currently in the Philippines, the country
has become a critical piece of the Asia Pacific Internet industry. In partnership with Nielsen,
Yahoo! today announced the results of the second edition of New Index, a groundbreaking study
of Filipino usage trends that defines this still nascent Web market for marketers making decisions
about online opportunities.

The Net Index Study identifies four significant changes in online user behaviour in the Philippines.
First, Search has become the predominant online activity, overtaking email and messenger.
Filipino users are using Search primarily to find entertainment content online including images,
video and music. Second, with the increase in Entertainment-related searches, consumption of
entertainment content is also expanding. Music videos, TV shows, movie trailers have become
increasingly popular with the online audience. Third, with attractive tariffs driving adoption of
mobile internet, Filipinos are now using the mobile Web for communication functions such as
email and instant messenger.

Key findings of Net Index 2010 Philippines include:

• Search is the number one online activity.
o Search has grown significantly from 58% to 76% to become the dominant online
activity, surpassing email and instant messaging
o The young and middle-aged (10 – 39 years) are the predominant users.
o Entertainment related content is the most searched for (62%) followed by videos
(52%), information/research documents (44%), and music/audio clips (31%).
• Entertainment consumption is proliferating.
o Music uploading/downloading increased from 25% to 41% year over year
o Video uploading/downloading grew from 22% to 38% year over year
o Music videos accounted for 73% of video accessed in the past month and movie
trailers represented 26% of video consumed

• Mobile Internet is finally picking up, driven in part by lucrative subscription packages.

Source IDC digital market place report Nov 09

 o Mobile Internet access has grown from virtually zero in 2009 to 5 % in 2010, with 40%
of users planning to spend more time going online in this way.
o Mobile Internet access is skewed to young adults aged 20-39.
o Activities driving mobile Internet usage are instant messaging (77%), email (75%) and
SMS (59%).

• Social media ushering a fundamental shift in the way people interact with each other and
media.
o Social Networking (53%) is the most popular social media activity followed by
user generated content (30%). Blogging (7%) and forums (11%) are least
popular.
o Social networking is primarily used to stay in touch with friends and family (66%),
send emails (64%) and for online chats (63%).

“With a generation of young Filipinos growing up as digital natives, understanding their media
habits is critical to understanding the future,” said Jack Madrid, General Manager, Yahoo!
Philippines. “The Philippines is one of the fastest growing markets for the Internet in Southeast
Asia and Yahoo! is truly pioneering the study of internet usage in the region and educating
marketers on the way forward here.”

The Net Index study not only provides findings on popular online activities such as email, search
and instant messaging, but also sheds light on Internet usage trends (e.g. from social networking
to most visited websites), channels of web access (e.g. from internet cafes to mobile phones) and
makes recommendations on how businesses can leverage the research to grow .

“While the Philippines market is distinct, information and insights on Filipino Internet users remain
limited. In the current economy, digital media is more than a buzzword. Net Index addresses the
expressed need by publishers, marketers and advertisers for a clear perspective and direction to
craft meaningful online strategies. We are proud to associate with Yahoo! in developing a
resource that will produce tangible benefits for the industry,” said Jay Bautista, Executive Director,
Nielsen Media Philippines.

Net Index incorporates well-established principles and techniques in the sample selection to
ensure complete representation of the target population. Respondents were selected using a
multi-stage probability sampling technique. Yahoo! will provide current and prospective clients
relevant data to enable them to make informed decision about advertising on its properties. The
agencies conducting the research will be at discretion to charge for the data.

The findings for this year will be disseminated during the Net Index 2010 launch event on June 8th
at the Manila Polo Club.
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About Net Index

The Net Index study aims to provide a rigorous and strategic ‘big picture’ overview of Internet
users – from their online activities, cross-media usage habits, lifestyles, and psychographics, to
their brand preferences. These insights address the current knowledge gap in the industry,
supplying marketers and media professionals with a comprehensive understanding of the Internet
medium, necessary to unlock its full potential.

The Yahoo! Net Index study is the first in-depth Internet media study of urban internet users in
select countries across South East Asia.

Initiated in 2009, the survey was conducted in Vietnam, Indonesia and the Philippines. While the
Internet is an important, fast-growing medium in SEA, insights on Internet users remain limited.
The premise of the study stems from the fact that media insights play a key role in connecting a
brand to its audience

About Nielsen Media

Nielsen Media’s unmatched industry expertise and leadership, deep understanding of consumer
media consumption and behavior across platforms and innovative research and measurement
tools position us to help you develop the right strategies to overcome the challenges you face
across media today.

The Nielsen Company is a global information and media company with leading market positions
in marketing and consumer information, television and other media measurement, online
intelligence, mobile measurement, trade shows and business publications. The privately held
company is active in approximately 100 countries, with headquarters in New York, USA.

For more information, please visit, www.nielsen.com or call +632 706 8100.

About Yahoo!

Yahoo! attracts hundreds of millions of users every month through its innovative technology and
engaging content and services, making it one of the most trafficked Internet destinations and a
world class online media company. Yahoo!'s vision is to be the center of people's online lives by
delivering personally relevant, meaningful Internet experiences. Yahoo! is headquartered in
Sunnyvale, California. For more information, visit http://pressroom.yahoo.com or the company's
blog, Yodel Anecdotal (http://yodel.yahoo.com).

For media inquiries, please contact:

Peter Joblin China Tanchanco
Yahoo! Southeast Asia Ogilvy Public Relations Worldwide, Manila
+ 65 9389 3513 +63-2-885-0001
pjoblin@yahoo-inc.com china.tanchanco@ogilvy.com