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Via All Things Digital — “Check out this engagement chart, courtesy of Citigroup’s Mark Mahaney. It’s a neat illustration of the Web 2.0 era, and does a nice job of explaining why Google is so freaked out about Facebook, and why AOL and Yahoo seem to be in eternal turnaround mode. (Note that just a couple of years ago, someone might have thought to include Myspace in here. Remember?)”

How do people spend their time online? This Experian Hitwise data shows not only where the UK Internet population are visiting online, but also how long people spend on a given website.

In August 2011 3.4 billion hours were spent online by the UK Internet population. 800 million of those were spent on social sites in August or close to 1/4 of all time spent online.

Facebook is still the clear market leader with half of all social networking visits and an average visit time of 22 minutes. Entertainment is the next biggest category, accounting for 9 minutes, with the majority of time spent on video on demand sites like BBC iPlayer and 4OD as well as movie and gaming websites.

Here’s how one hour of internet time in the UK would look:

“Freemium” apps now account for nearly three of every four App Store downloads, according to new research. Downloads that include in-app purchases grew 34% since 2010 compared to just 7% for paid apps. Free games comprise 65% of the top-grossing titles in the U.S. App Store.