ComScore

Infobox Company
company_name = comScore, Inc.
company_
company_type = Public Company
founder = Magid Abraham & Gian Fulgoni
ticker_symbol = SCOR
foundation = 1999
location = Reston, VA
num_employees = 700
industry = Internet information providers
homepage = [http://www.comscore.com/ comScore.com]

comScore is an internet marketing research company that provides marketing data and services to many of the Internet's largest businesses. [cite web|url=http://www.comscore.com/about/clients.asp|title=comScore Clients|accessdate=2006-10-01] comScore tracks all internet data on its surveyed computers in order to study online behavior.

Company history

comScore Networks was founded in August 1999 in Reston, Virginia. [cite news|url=http://www.comscore.com/press/release.asp?press=6|title=comScore Networks Introduces "Customer Knowledge Platform" that Provides a 360 ° View of Customer Buying and Browsing Behavior on the Internet|date=2000-09-18|publisher=comScore] The company was founded by Gian Fulgoni, who was for many years the CEO of Information Resources, one of the world's largest market research companies. The other founder of comScore was Magid Abraham, who was also an ex-IRI employee and had served as President of IRI in the mid-90s.

Magid and Gian came up with the idea while working with one of the original investors in the company, Mike Santer, who thought of the concept of creating a very large consumer panel online to track online commerce. The problem was the traditional methods in which companies were tracking online behavior would not work in tracking commerce. The reason for this was because of the lower incidence of buying online. Normal panels in tracking visitation would be around 20-30K, and with less than 2-3% of the population buying online, the panel size needed to be at least 1-2MM. They decided to build a very large panel using more aggressive recruiting methodology and managing for the error by using advanced statistical methods and controls. Years and tens of millions of dollars went into the best ways to measure online buying and other behaviors to the level of accuracy that would be required for Fortune 1000 companies to buy.

In 2000 comScore bought certain assets and the customer agreements of PCData of Reston, Virginia. PCData was among the earliest Web measurement firms, but increasing competitive challenges (including threat of a patent infringement lawsuit by industry pioneer Media Metrix) put PCData's future in doubt. The acquisition of PCData's large customer base helped accelerate the growth of comScore's syndicated measurement service, which was widely considered to be more accurate than the service that PCData technology previously delivered.

By 2001, Media Metrix had built a market share lead but had been unable to create a sustainable financial structure. NetRatings, its closest competitor, was armed with strong capital reserves and announced its intention to acquire and integrate Media Metrix. However, after several months the FTC announced its intention to block the acquisition and accordingly NetRatings canceled the transaction. comScore was subsequently able to acquire Media Metrix in a deal announced in June 2002.

Media Metrix originated as PC Meter, a business unit of market research company NPD, and began publishing statistics in January 1996. [ [http://www.comscore.com/press/release.asp?press=434 Surfing Down Memory Lane to January 1996: comScore Media Metrix Revisits First-Ever Web Site Rankings] ] In July 1997, it changed its name to Media Metrix, citing the desire to track a wider variety of interactive traffic. [cite news|url=http://web.archive.org/web/20041201145733/www.wired.com/news/business/0,1367,5357,00.html|title=PC Meter Renames, Remakes Itself|publisher=Wired News|date=1997-07-21] In October 1998, Media Metrix merged with its nearest rival, Relevant Knowledge. [cite news|url=http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/1998/10/13/BU94264.DTL|title=2 Rating Services For Web Merge|publisher=SFGate|date=1998-10-13] The company went public as NASDAQ:MMXI in May 1999, reaching a market cap of $135 million on the first day of trading. [cite news|url=http://www.fool.com/EveningNews/1999/EveningNews990507.htm|title=May 7, 1999 Market Close|publisher=Motley Fool] In June 2000, the company acquired Jupiter Communications for $414 million in stock, and changed its name to Jupiter Media Metrix. [cite news|url=http://news.com.com/2100-1023-242455.html|title=Media Metrix, Jupiter merge in $414 million deal|publisher=CNET|date=2000-06-27] In the aftermath of the dot-com bubble collapse and associated downturn in internet marketing spending, Jupiter sold the Media Metrix service to rival comScore for $1.5 million in June 2002. [cite news|url=http://news.com.com/2100-1023_3-933580.html|title=Jupiter sells part of measurement unit|publisher=CNET|date=2002-06-06]

comScore announced on March 30, 2007 its intent to sell shares in an initial public offering and be traded on the Nasdaq using the symbol "SCOR". [cite web|url=http://www.marketwatch.com/news/story/internet-traffic-counter-comscore-files-ipo/story.aspx?guid=%7BAB5A4648-74D2-409B-AA9A-D8B7AB025FE0%7D|title=Web-traffic specialist comScore files for IPO|publisher=MarketWatch|date=2007-04-02]

Data collection and reporting

comScore maintains a group of users who have monitoring software (with brands including PermissionResearch and OpinionSquare) installed on their computers.Fact|date=March 2007 In exchange for joining the comScore research panels, users are presented with various benefits, including computer security software, Internet data storage, virus scanning and chances to win cash or prizes. Fact|date=March 2007

comScore is up-front about collecting user data and the software's ability to track all of a user's internet traffic, [cite web|url=http://www.opinionsquare.com/Privacy.aspx|title=OpinionSquare Privacy Policy & User License Agreement|accessdate=2006-11-02] including normally secure (https://) connections used to communicate banking and other confidential information.

comScore estimates that two million users are part of the monitoring program.cite web|url=http://www.sec.gov/Archives/edgar/data/1158172/000095013307001479/w30988sv1.htm|title=comScore's March 30th S-1 SEC form|publisher=SEC|date=2007-03-30] However, self-selected populations, no matter how large, may not be representative of the population as a whole. To get the most accurate data, comScore adjusts the statistics using weights to make sure that each population segment is adequately represented. To calculate these weights, comScore regularly recruits panelists using random digit dialing and other offline recruiting methods to accurately determine how many users are online, aggregated by geography, income, and age. [cite paper|url=http://www.comscore.com/method/arf.asp|title=Review of comScore Methodology|publisher=Advertising Research Foundation (ARF)|date=2001] [cite web|url=http://cendi.dtic.mil/presentations/KevinGartonApr17.ppt|title=Collecting & Analyzing Web Usage Data from User Panels|publisher=comScore|date=2001-04|pages=p7,9,13] [cite web|url=http://www.comscore.com/method/method.asp|title=comScore Methodology|accessdate=2006-11-02] Correcting the comScore data requires having accurate demographics about the larger pool of users. However, some comScore users are recruited without being asked to give demographic information, and in other cases users may not be truthful about their demographics. To ensure the accuracy of the data, comScore verifies its users' demographics during the course of measuring statistical data. [cite web|url=http://www.sigmavalidation.com/tips/05_06_02_Online_Survey_Panels.ppt|title=The “Professional Respondent” Problem In Online Survey Panels Today|publisher=comScore|date=2005-06|pages=p8-10]

The corrected data is used to generate reports on topics ranging from web traffic, [cite news|url=http://www.comscore.com/press/release.asp?press=1049|title=comScore Releases Worldwide Ranking of Top Web Properties|publisher=comScore|date=2006-10-26] to video streaming activity, [cite news|url=http://www.comscore.com/press/release.asp?press=1015|title=comScore Releases U.S. Video Metrix Rankings|publisher=comScore|date=2006-09-27] and consumer buying power. [cite news|url=http://www.comscore.com/press/release.asp?press=81|title=Newspaper Web Site Audiences Grow Faster Than Total Internet Populations In Largest U.S. Markets|publisher=comScore|date=2002-07-08]

Criticism

A Harvard researcher allegescite web|url=http://www.benedelman.org/news/062907-1.html|title=Comscore Doesn't Always Get Consent|publisher=benedelman.org|author=Ben Edelman|date=2006-07-26] that there are a few cases where comScore software has been installed on users' computers without their knowledge. comScore admits it was in discussion with DollarRevenue, a company known for distributing spyware. However, comScore says that no contract was ever signed, and that once it realized DollarRevenue was distributing its software months later, it took steps to prevent the DollarRevenue-distributed software from sending data to comScore.cite web|url=http://www.forbes.com/security/2006/12/07/internet-security-research-tech_cx_ll_1208comscore.html|title=How Much Privacy?|publisher=Forbes|author=Lisa Lerer|date=2006-12-97] Stanford IT notes the monitoring software has been bundled with file sharing program iMesh without users being aware of it, although comScore's relationship with iMesh was short-lived and occurred several years ago.

In the past, the software forwarded users' internet traffic through comScore proxy servers, which caused criticism among IT professionals.cite web|url=http://www.stanford.edu/group/security/securecomputing/2005/01/marketscore_spyware.html|title=MarketScore Spyware|publisher=Stanford Information Security Office|date=2005-01-11] [cite web|url=http://www.cit.cornell.edu/computer/security/marketscore/technical.html|title=An Analysis of the New Marketscore Proxy|date=2005-05-31|publisher=Cornell's IT Security Office] As a result, several universities and banks took steps to block the proxy servers. [cite news|url=http://msnbc.msn.com/id/7546554/|title='Researchware' watches where you click|publisher=MSNBC|date=2005-04-20] [cite news|url=http://news.com.com/ComScore+Spyware+or+researchware/2100-1032_3-5494004.html|title=ComScore: Spyware or 'researchware'?|publisher=CNET|date=2004-12-20] In response to these concerns, comScore no longer uses this technology. Fact|date=February 2007

Awards

comScore was selected by World Economic Forum as one of 47 innovative companies in 2007. [cite web|url=http://www.weforum.org/en/about/Technology%20Pioneers/index.htm|title=Technology Pioneers|publisher=World Economic Forum|accessdate=2007-05-19]

See also

Competitors in internet market research include Alexa, Compete.com, Nielsen Online, Hitwise, Quantcast and Gemius.

References

External links

* [http://www.comscore.com/ comScore]
* [http://www.opinionsquare.com/ OpinionSquare] and [http://www.permissionresearch.com/ PermissionResearch] (often classified as spyware [cite web|url=http://www.spywareguide.com/spydet_488_marketscore.html|title=MarketScore|publisher=SpywareGuide|accessdate=2006-11-02] ), distribution sites for comScore's data-collection software [cite web|url=https://cert.webtrust.org/SealFile?
|title=Report of Independent Accountants|publisher=Ernst & Young|date=2005-09-20]
* [http://community.ca.com/blogs/securityadvisor/archive/2007/12/20/sears-com-join-the-community-get-spyware.aspx Sears.com: Join the Community – Get Spyware] CA Security Advisor Research Blog entry about Sears and comScore