The Oprah Winfrey Litigation: What Affiliate Marketers Must Know SES Chicago 12/9/09 Peter Bordes, CEO, MediaTrust

Ours is the Network Perspective...

The Issue: Environmental Factors Affiliate Performance Marketing is the least understood segment of the online marketing industry With the migration from CPM to CPC to CPL and CPA, the popularity of performance marketing has accelerated the industry segments growth. The GLOBAL affiliate universe is exploding as our world becomes digitally flatter. Accelerated by the economy & better tools and technology Traffic Creation Lead Generation Online Sale Click Form Fill Transaction Marketing Activity Offering Cost Per Click, (CPC) Cost Per Lead (CPL) Cost Per Sale or Cost Per Action (CPS, CPA) Brand Awareness Impression Cost Per Thousand (CPM) Banner Ads Video Ads Text Ads email Search Ads Contextual Ads Social Media Call Center

Affiliate Performance Marketing is the least understood segment of the online marketing industry

With the migration from CPM to CPC to CPL and CPA, the popularity of performance marketing has accelerated the industry segments growth.

The GLOBAL affiliate universe is exploding as our world becomes digitally flatter. Accelerated by the economy & better tools and technology

To accommodate our newfound popularity, we need to overcome our legacy The industry has a legacy of being “black-boxed” -- therefore has little in terms of standardization, best practices, and technological innovation. Publishers and advertisers in the space are exploiting the industry’s lack of standards, best practices and regulation. Publisher Fraud : improper testimonials, fraud rings, lead “stuffing” Advertiser Fraud : Consumer abuse, improper display of T&Cs, credit card abuse, data misuse The Issue: History

The industry has a legacy of being “black-boxed” -- therefore has little in terms of standardization, best practices, and technological innovation.

Publishers and advertisers in the space are exploiting the industry’s lack of standards, best practices and regulation.

Publisher Fraud : improper testimonials, fraud rings, lead “stuffing”

Advertiser Fraud : Consumer abuse, improper display of T&Cs, credit card abuse, data misuse

We need to evolve: The industry as a whole needs to be more proactive VS. reactive in establishing standards and regulation: Performance Marketing Association (PMA) Privately driven standardization Advertisers and publishers are both asking: "How do I know the other side is compliant?" Its up to the networks to provide a trusted environment where business can be conducted without risk The Issue: Where the industry is going

We need to evolve: The industry as a whole needs to be more proactive VS. reactive in establishing standards and regulation:

Performance Marketing Association (PMA)

Privately driven standardization

Advertisers and publishers are both asking: "How do I know the other side is compliant?"

Its up to the networks to provide a trusted environment where business can be conducted without risk

We believe the network shoulder the responsibility of taking the lead on: Creating strong partnerships between publishers and advertisers Enforcing compliance standards from FTC and state attorneys general Being transparent with advertisers, publishers & industry With our partners we focus on quality vs. quantity and increasing consumer lifetime value. Dynamic pricing that rewards quality Built in-house technology to monitor fraud & compliance Created real-time transparency reporting by drilling to publisher sub ID level with creative screen shots We have created our own self-enforced vetting standards: "trusted criteria"for advertisers & publishers Accordingly, we have removed 1000+ publishers that did not meet our criteria What MediaTrust is doing to improve our network’s accountability

We believe the network shoulder the responsibility of taking the lead on:

Creating strong partnerships between publishers and advertisers

Enforcing compliance standards from FTC and state attorneys general

Being transparent with advertisers, publishers & industry

With our partners we focus on quality vs. quantity and increasing consumer lifetime value. Dynamic pricing that rewards quality

Built in-house technology to monitor fraud & compliance

Created real-time transparency reporting by drilling to publisher sub ID level with creative screen shots

We have created our own self-enforced vetting standards:

"trusted criteria"for advertisers & publishers

Accordingly, we have removed 1000+ publishers that did not meet our criteria

We have created and open-to-all industry compliance center with compliance policies and information Contributed financial and human resources to form the first association for performance marketing industry (PMA) Established thought-leadership via blogging, podcasting and openly discussing issues facing the industry PMA was built to: Form the Industry framework and standards Help to lawmakers understand our industry What MediaTrust is doing to improve Industry accountability

We have created and open-to-all industry compliance center with compliance policies and information

Contributed financial and human resources to form the first association for performance marketing industry (PMA)

Established thought-leadership via blogging, podcasting and openly discussing issues facing the industry

PMA was built to:

Form the Industry framework and standards

Help to lawmakers understand our industry