Cdp display advertising update 2011

Display Advertising – 2011 Market Update September 20, 2011

Table of ContentsI. Trends in Display AdvertisingII. M&A and Capital Markets ObservationsIII. Relevant M&A TransactionsIV. Sector Public Market ComparablesV. Coady Diemar PartnersVI. Appendix A. Display Advertising Top 5 – Key Assets/Exposure in Value Chain B. Display Advertising Ecosystem Top 5 – Key Data C. Mobile Display Advertising Landscape 1

I. Trends in Display Advertising 2

Overview US Ad Spend totaled $175B in 2010, a 6% increase over 2009 – Remains below 2007 high of $204.5B – 1.7% of nominal GDP compared to 2.1% 30 year average In April 2011, 214.5M Americans used the internet; 2.5 hours average daily usage – Reach and engagement statistics second only to TV – Social, games and video driving growth U.S. Internet Advertising revenue exceeds $27B for the 12-mth period ending March 2011 – 23% growth Q1 2011 compared to prior year, up from 15% growth in 2010 versus 2009 – Fastest growth of all measured media – Larger share of total ad spend (14.9%) than cable networks, newspapers, magazines and radio – 20% annual growth forecasted next 2 years Search advertising accounts for approx. $12B of spend in 2010 – 46% of market, 12% growth in 2010 – Google possesses 65% share Display advertising spend nearly $10B in 2010 – 24% growth in 2010; online video exploding; mobile emerging – Top 5 (Yahoo, Microsoft, AOL, Google and Facebook) account for approx. 50% of the market – Display market expected to overtake search by 2015 with market growing to $22B in size – a 17% CAGR 3

The Big 5 in Display The display ad space is a real battleground among the top five – Facebook and Google are ascendant, Yahoo and FOX flat to down, AOL declining Facebook has emerged as a giant in the Internet ecosystem – In 2011 Facebook will generate $2.2B of display advertising revenue, a 21.6% share -- easily surpasses perennial leader Yahoo with $1.65B spend and a 16.4% share – 5% of total time spent on the internet, 25% of all page views, nearly half of all US internet users are members – Increasingly important source of referral traffic Google is experiencing strong organic growth in display, from YouTube and acquisitions – Google growing at approx. 50% in 2011 to $1.28B, a 12.6% share – YouTube streams over two billion videos every day and 100 mm unique users visit the site every month in the US – Google has recently acquired AdMeld and companies in the social, mobile and video sectors Performance travails continue at Yahoo and AOL – Both have made recent acquisitions to enhance capabilities and reach The top advertisers and publishers, adtech service providers and aggregators split the balance – Several dozen significant publishers – Ad technology market fragmented; and characterized by substantial new investment, M&A and emerging leaders 4

Key Current Trends Substantial growth in display market anticipated for 2011 - very strong 1st half – Expect approximately $12.0B display ad spend in 2011, up 20+-% from 2010, 39% of online spend Real-Time Bidding (“RTB”) is the story of 2011 – Enhances ability to buy targeted audience at scale through instant auctions, remnant focused – Rapid adoption has resulted in lower CPMs and higher CTR performance – $1.0B market in 2011, 8%-10% of online display and growing “Private” exchanges emerge as key gateway for premium publishers – Built on SSPs and RTB enabled – Publishers offer more premium inventory with greater contextual information – Higher CPMs for no-guaranteed inventory result in higher margins Rapid growth of video advertising – Online video projected to be the fastest growing segment of online advertising, driven by brand advertising – Online video projected to grow to $7.1B in 2015 from $1.4B in 2010 (38% CAGR) Mobile is finally emerging as an advertising platform with scale – Approximately $1.0B 2011 ad spend in North America growing to $5.8B in 2015 (Gartner), 4% of total ad spend – Mobile display to be relatively evenly divided between in-app and mobile web placements – Rapid adoption of HTML5 resulting in substantial growth in rich media 5

Video Advertising is Exploding Online advertising is projected to grow 3x faster than total online ad spend – Online video advertising is projected to account for nearly one-quarter of total online advertising growth ($5.7B out of $23.5B in incremental spending between 2010 and 2015) Source: eMarketer 6

Mobile trends driving huge commerce and advertising opportunity 5.3 billion global mobile subscriptions – 76.2% penetration – 55 mm tablet unit sales est’d in 2011, iPad projected to retain 75% market share In U.S. through June 2011 234 M Americans aged 13 and older used a mobile device, 95% penetration – Approximately 88 mm own a smartphone, 38% of the market – 55% of prior 3-mth mobile phone purchases were smartphones – Approximately 50% of devices provide fast mobile internet via 3G/4G Smartphone and 3G+ users consume lots of data and apps – Average smartphone generates 24x more data traffic compared to the typical feature phone – iOS and Android devices generates 4x more data – represent 68% of postpaid market Q2 ‘11 – Global mobile data traffic est’d to increase 26x from 2010 to 2015 (Cisco) – Mobile app downloads to increase from 10.7B in 2010 to 180B in 2015 (IDC) – Paid app downloads to reach $2.0B quarterly by end of 2012 (Strategy Analytics) Mobile advertising spend expected to grow rapidly – More engagement, more engaging ads with HTML5 and location drive migration of ad dollars – U.S. ad spend in 2011 estimated at $1.0B + growing to $5.8B in 2015 (Gartner) Mobile internet driving commerce – 79% of smartphone owners use phone to help with shopping – M-commerce approximately $2.4B or 2.7% of web revenue 7

II. M&A and Capital Market Trends 8

Innovation and Robust M&A Market The display advertising market is dynamic and characterized by new investment – Substantial venture capital participation funding new start-ups (nearly $1.0B in new money Q2) – Investment generally targeting niche aspects of market, innovate and seek exit – Continued evolution as brand and DR medium driving growth and capital investment Agencies and brands increasingly seeking comprehensive/multi-platform service providers – Driving robust M&A market – Larger players acquiring capabilities/speed-to-market – Mid-sized participants combining to achieve scale and “seat at table” Substantial M&A activity in the Display Advertising ecosystem – Over 100 sizeable purchase/sale transaction in 2011 already – Big-5, tech, agencies, media and marketing services providers all participating – Video, social, mobile and measurement most active segments Active M&A environment expected to continue with cycle of innovation – Getting tantalizingly closer to delivering specific targeted audience at scale – Corporate balance sheets flush with cash; public market valuations volatile 9

AdTech Incumbents Enhancing Portfolio through M&A 10

Media, Technology and Related Industries Going Digital 11

1 Year and 5 Year Sector Stock Market Performance 12

III. Relevant M&A Transactions 13

Summary Transaction Information Summary purchase multiple statistics for relevant 2011 M & A transactions are as follows: Enterprise Value / Rev. EBITDA High 33.8x 47.1x Mean 5.1x 21.3x Median 2.8x 18.9x Low 0.2x 6.8x Historical Transaction Data # of Transactions with Year Transactions Multiples Data 2011 106 26 2010 47 9 2009 7 2 2008 8 4 2007 17 5 Consolidation in the display advertising market has grown exponentially beginning in 2010 14

Relevant 2011 TransactionsAnnounced Enterprise Enterprise Value / Date Target Buyer Value Rev. EBITDA Target Description Provides in-stream video/video overlay advertising solutions for publishers 09/13/11 AdoTube Exponential Interactive (Tribal Fusion) NA NA NA and advertisers/marketers 09/13/11 OneRiot Walmart NA NA NA Operates as a search engine that finds the pulse of the Web 09/12/11 BDM Global Ventures (JigoCity) FriendFinder $65.0 NA NA Operates as a daily deals website offering online discounts Provides consumer survey-based dining, travel, and leisure information in 09/08/11 Zagat Google Inc. NA NA NA the United States Plan, create and deliver campaigns across traditional media, web builds 09/07/11 Digital and Direct (UK) SapientNitro $41.0 NA NA and apps, social media, display, email and mobile Provides interactive digital advertising products and services in the United 08/30/11 EyeWonder, Inc. DG FastChannel, Inc. $66.0 1.8x NA States Provides marketing research and strategy, and search engine 08/19/11 Rockfish Interactive, Inc. WPP Digital $40.0 2.8x NA optimization services to brand identity and social media campaigns 08/15/11 AdJug, Ltd. IgnitionOne, Inc. NA NA NA Operates as an online advertising exchange 08/08/11 Reinvigorate Webtrends NA NA NA Provides Web analytics applications Owns and operates home interiors website for design enthusiasts and 08/08/11 Remodelista Say Media NA NA NA home owner Provides Connected Services platform to deliver mobile-Web consumer 08/05/11 Dashwire HTC $18.5 NA NA services in the United States and internationally Operates as a mobile marketing and advertising company that empowers 08/05/11 Hip Cricket Augme Technologies $44.0 NA NA brands, agencies, and media properties to engage customers, drive loyalty, and increase sales in the United States Provides traffic and news information reports to radio and television 08/03/11 Global Traffic Network GTCR $239.6 2.2x 15.8x stations 08/03/11 AdXpose comScore $22.0 NA NA Provides digital advertising analytics solutions Provides Web-based services for individuals to collect money from their 08/02/11 Sprout InMobi NA NA NA social network for group gifts, events, and fundraising 08/02/11 Dotomi Value Click $295.0 3.7x NA Offers Internet advertising and media management services Operates web-based platform for buying and selling of products and 08/01/11 Ticket Monster Living Social NA NA NA services online 08/01/11 Digicom Amscreen NA NA NA Engages in building and delivering digital out of home networks Provides local deals, offers, and discounts on local restaurants, 08/01/11 The Dealmap Google Inc. NA NA NA entertainment, attractions, hotels, spas, salons, and shops. Provides interactive television content and services for IPTV, Internet- 07/28/11 Pushbutton Amazon NA NA NA enabled TV sets, tablets, TV widgets, broadband Internet, satellite, and cable platforms 07/28/11 Zokem Oy Arbitron $11.7 NA NA Designs, develops, and distributes software for mobile phones 15

Relevant 2011 Transactions (cont’d)Announced Enterprise Enterprise Value / Date Target Buyer Value Rev. EBITDA Target Description 07/27/11 Synovate (Aegis ) Ipsos $858.2 1.0x 12.8x Operates as a marketing research company 07/26/11 Zappedy Groupon, Inc. $10.3 NA NA Develops applications for merchants 07/20/11 Insider Guides (myYearbook) Quepasa $100.0 4.2x 20.4x Operates as an online social network in the United States Develops and provides multimedia messaging service 2D barcode 07/19/11 JagTag Augme Technologies $5.5 NA NA content delivery systems in the United States Offers online local business listings, advertising and promotion solutions, 07/14/11 GoLocal.Biz Nexstar Television NA NA NA embedded video, images, map, contact information, local advertiser web links and other vital information to local consumers 07/07/11 Tumri Collective Media NA NA NA Provides online display advertising solutions 07/07/11 Zong eBay (PayPal) $240.0 NA NA Provides online mobile payment services Operates a search engine that enables the users to find, follow, and 07/05/11 BackType Twitter NA NA NA share comments from blogs and social news sites on the Web 06/29/11 MySpace (Fox Entertainment) Specific Media $35.0 0.2x NA Operates a Web site to create private online community 06/20/11 Sage TV Google Inc. NA NA NA Develops digital entertainment and placeshifting solutions 06/16/11 Appealing Media Ltd. YuMe, Inc. NA NA NA Operates a mobile video and rich media advertising network Provides digital advertising campaign management solutions to media 06/16/11 MediaMind Technologies Inc. DG FastChannel, Inc. $422.7 5.0x 28.5x agencies and advertisers worldwide Operates a local news site that offers information in the areas of 06/15/11 Fwix Comcast/NBCU NA NA NA business, crime, environment, politics, and sports Provides advertising network optimization technology for online 06/09/11 Ad Meld Google Inc. $400.0 13.3x NA publishers in the United States and internationally 06/08/11 Scoreloop AG Research in Motion NA NA NA Operates as a social gaming platform for the mobile devices Provides digital marketing services for businesses that promote their 06/07/11 Steak Group Dentsu NA NA NA products or services online in the United Kingdom and internationally 06/06/11 PostRank Google Inc. NA NA NA Offers RSS filtering solutions 05/27/11 Groop Swoop BuyWithMe NA NA NA Provides an online platform for shopping deals 05/17/11 ReviNet Pubmatic NA NA NA Provides advertising network optimization services to online publishers 05/17/11 Rosetta Publicis $575.0 2.6x NA Provides personalized marketing solutions Produces multimedia distribution and extension solutions for the digital 05/16/11 Minicom Digital Signage EnQii Holdings NA NA NA signage marketplace 05/13/11 5:1 Yahoo! $26.4 33.8x NM Operates an online advertising platform Develops social commerce and analytics tools that helps online retailers 05/13/11 Spinback BuddyMedia NA NA NA to quickly launch social features and measure its effectiveness by only embedding a few lines of code 16

Relevant 2011 Transactions (cont’d)Announced Enterprise Enterprise Value / Date Target Buyer Value Rev. EBITDA Target Description Provides original market research, critical analysis, data services, and 05/11/11 Inside Network WebMediaBrands $14.0 NA NA news on the Facebook platform, social gaming, and mobile applications ecosystems 05/10/11 Skype Microsoft Corporation $9,082.4 10.6x 47.1x Provides communications services over the Internet Provides social marketing software and services for brands, advertising 05/04/11 Context Optional Efficient Frontier $50.0 NA NA agencies, and publishers Operates as an advertising technology company in Germany and 05/04/11 AdCloud Deutsche Post NA NA NA Switzerland 05/04/11 BuzzLabs CityGrid (IAC) NA NA NA Provides social media monitoring solutions 05/04/11 Flixster Time Warner NA NA NA Operates as an online community for movie fans 05/02/11 Clickability Limelight Networks $10.0 NA NA Develops web content management, interactivity, and navigation software 05/02/11 UGO Entertainment IGN (News Corp) NA NA NA Creates and operates Websites and online properties for gamers 04/28/11 Shopzilla (Scripps Networks) Symphony Technology Group $165.0 NA NA Operates as an online shopping search engine 04/28/11 YouCast Halogen Media NA NA NA Provides internet advertising by using social media Provides an audience buying and optimization platform for search 04/28/11 AdBuyer MediaBank NA NA NA marketers Operates an ad-supported mobile games and applications distribution 04/25/11 Greystripe Value Click $70.0 2.8x 28.0x platform 04/25/11 IntoNow Yahoo! $22.0 NA NA Develops television and mobile applications Provides local search and recommendation services on mobile phones 04/20/11 Where eBay (PayPal) $150 +- NA NA and Web applications Develops a social media technology platform that filters and organizes 04/18/11 Kosmix Wal-Mart NA NA NA content in social networks to connect people with real-time information Enables to connect to people, places, and events around through an 04/18/11 Whrrl Groupon, Inc. NA NA NA integrated Web/mobile application 04/17/11 Dogster SAY Media NA NA NA Operates pet-focused online communities Provides online advertising services to advertisers and publishers in the 04/13/11 Tatto Media Ozura World $60.0 NA NA United States and internationally Develops mobile application for Nokia, LG, Samsung, BlackBerry, and 04/11/11 PushLife Google Inc. $25.0 NA NA Android mobile devices Designs, builds, and runs digital media platforms for 04/11/11 ioko365 Ltd KIT digital $79.4 1.5x NA telecommunications, media, and entertainment companies in the United Kingdom and internationally 17

Relevant 2011 Transactions (cont’d)Announced Enterprise Enterprise Value / Date Target Buyer Value Rev. EBITDA Target Description Provides Internet advertising solutions to online advertisers, publishers, 04/07/11 Burst Media Blinkx $30.0 0.8x NA and ad networks 04/07/11 Jingle Networks Inc. Marchex Inc. $61.2 NA NA Provides directory assistance services in the United States Provides bilingual services to generate and deliver final broadcast, print, 04/01/11 MIJO Corp. DG Fast Channel $39.5 2.3x 13.2x and digital media materials in Canada and North America 03/29/11 IMPAQT Merkle NA NA NA Operates as a search marketing agency 03/29/11 Web TV Enterprise Ltd. Collective Media NA NA NA Operates an online video advertising network Provides social media monitoring and analysis solution for marketing, 03/29/11 Radian6 Technologies Salesforce.com $326.0 NA NA communications, public relations, and customer support professionals Provides e-commerce and interactive marketing services primarily in 03/28/11 GSI Commerce Ebay $2,400.0 1.8x 23.1x North America Provides technology and marketing support that enables publishers to 03/24/11 Journalism Online RR Donnelley $45.0 NA NA charge for select Web site access and digital content 03/24/11 Muzak Mood Media $375.0 1.9x 6.8x Provides various media based solutions Engages in the online retail of chic photo cards and personalized 03/21/11 Tiny Prints Shutterfly $357.2 4.1x NA stationery Provides interactive, online, and mobile marketing and advertising 03/18/11 Adenyo Motricity $142.5 8.9x NA solutions Provides products and services for multi-channel content management 03/15/11 TXT Polymedia KIT digital $34.4 NA NA and interactive cross-media service management for the broadcasting, media, telecommunication, and enterprise sectors 03/07/11 BeatThatQuote.com Ltd Google Inc. $62.0 NA NA Operates as a price comparison Web site in the United Kingdom 03/07/11 Next New Networks Google Inc. NA NA NA Operates as an independent producer of online television networks Provides a data and technology platform that develops, organizes, and 03/04/11 Outside.in AOL NA NA NA distributes hyperlocal news online 03/04/11 Clicker Media CBS NA NA NA Operates as a guide to Internet television 03/02/11 Adometry Click Forensics NA NA NA Provides online advertising services in Washington Engages in aggregating, promoting, and delivering mobile entertainment 03/01/11 Thumbplay Clear Channel NA NA NA content directly to members Provides advertising technology, video platform, player technology and 02/23/11 OggiFinoggi Collective Media NA NA NA advanced campaign analysis Operates as an advisory company that links marketing investments to 02/09/11 MarketingNPV MarketShare Partners, Inc. NA NA NA financial value creation, enabling clients to measure the payback on their marketing efforts and take risks with resource allocation 02/09/11 Shine Ltd BskyB (News Corp) $668.0 NA NA Produces and distributes television content 18

Relevant 2011 Transactions (cont’d)Announced Enterprise Enterprise Value / Date Target Buyer Value Rev. EBITDA Target Description 02/08/11 OnLive HTC $40.0 NA NA Provides on-demand gaming platforms 02/07/11 Saffron Media HTC $48.6 2.8x NA Is a digital content distributor 02/07/11 Mindset Media Meebo NA NA NA Operates as an Internet ad-technology and market research company 02/07/11 Huffington Post AOL $300.0 9.7x NA Provides online services to its members and users Provides platform and bridging technology for mobile video deployments 02/07/11 Transpera Tremor Media NA NA NA in North America Diversified Agency Services Develops, manages, and facilities private online communities for 02/07/11 Communispace NA NA NA (Omnicom) organizations in the United States and internationally 02/04/11 Inlet Technologies Cisco $95.0 NA NA Provides encoding solutions 02/04/11 Answers.com AFCV Holdings $93.9 4.4x 17.5x Provides answer-based search services to users Is a Web-based social productivity tool that leverages existing cloud 02/01/11 Manymoon Salesforce.com $25.0 NA NA platforms Distributes content based campaigns in digital environments in the 02/01/11 Goviral AOL $74.1 NA NA United Kingdom and internationally Provides business solutions to manage, broadcast, and monetize videos 01/31/11 Kewego KIT digital $32.0 3.1x NA on the Internet, Intranet, and screen networks Provides an online and mobile video platform for live and on-demand 01/31/11 Decentral.TV (dba Kyte) KIT digital $6.7 1.8x NA content Provides a software-as-a-service platform that hosts, manages, and 01/31/11 KickApps KIT digital $43.2 NA NA delivers media and community applications for media companies and businesses Operates a data-as-a-service platform that provides reporting, analysis, 01/26/11 TrackSimple BlueKai $6.7 NA NA and prediction services to media companies Operates a Web video portal for members to see, create, and share 01/25/11 Dailymotion SA Orange (France Telecom) $160.0 6.4x NA online videos in the United Kingdom, Australia, Morocco, France, Poland, Canada, and internationally 01/25/11 fflick Google Inc. $10.0 NA NA Operates a Web portal which features movie trailers, reviews, and ratings 01/25/11 Rel8tion Facebook NA NA NA Provides hyperlocal mobile advertising technology 01/19/11 LOVEFiLM Amazon $200.0 NA NA Operates as a home entertainment company in the United Kingdom 01/19/11 Engine Entertainment IAC NA NA NA Engages in international TV content distribution and production Provides audience management solutions for multi-channel data 01/19/11 Demdex Adobe Systems Inc. $58.0 NA NA strategies Provides advertising portfolio management technology for Internet 01/10/11 ClearSaleing GSI Commerce Inc. NA NA NA retailers and direct marketers 19

IV. Sector Public Market Comparables 20

Online Media % of Ent. Value / Net 3 Year Share 52 Week Market Net Ent. LTM Revenues EBITDA Debt / Revenue EBITDA Price High Cap Debt Value Revenues EBITDA LTM 2011E LTM 2011E EBITDA CAGR MarginGoogle Inc. $546.67 85.0% $176,513.1 ($32,981.0) $143,532.1 $33,328.0 $12,785.0 4.3x 3.8x 11.2x 9.2x NM 20.9% 38.4%Yahoo! Inc. 14.61 77.5% 18,446.8 (2,513.5) 15,973.2 5,569.7 1,430.3 2.9x 3.6x 11.2x 11.1x NM (3.2%) 25.7%Pandora Media, Inc. 10.82 41.6% 1,744.9 (95.3) 1,649.6 203.3 (1.0) 8.1x 5.7x NM 2447.0x NM 112.8% (0.5%)ValueClick, Inc. 17.20 87.2% 1,361.3 (142.5) 1,218.8 477.1 136.7 2.6x 2.3x 8.9x 7.5x NM 4.7% 28.7%AOL, Inc. 14.22 51.4% 1,521.1 (338.8) 1,182.3 2,253.8 463.0 0.5x 0.5x 2.6x 3.4x NM (22.4%) 20.5%Velti Plc 7.32 36.6% 450.6 (137.5) 313.2 142.0 10.0 2.2x 1.8x 31.5x* 6.1x NM 92.1% 7.0%Demand Media, Inc. 7.99 29.2% 670.6 (103.6) 567.0 297.9 61.2 1.9x 1.8x 9.3x 6.7x NM 22.9% 20.6%QuinStreet, Inc. 10.76 43.2% 511.7 (61.2) 450.6 403.0 74.9 1.1x 1.1x 6.0x 5.1x NM 28.0% 18.6%ReachLocal, Inc. 12.78 45.0% 373.6 (93.6) 280.0 334.5 (6.3) 0.8x 0.8x NM 20.9x NM 62.2% (1.9%)interCLICK, Inc. 5.96 66.7% 147.3 (6.7) 140.6 118.2 10.9 1.2x 1.0x 13.0x 7.5x NM 107.0% 9.2%Quepasa Corp. 4.77 30.9% 79.5 (4.6) 74.9 8.7 (4.5) 8.6x* NA NM NA NM 202.2% (51.7%)Local.com Corp. 2.72 37.5% 59.8 (13.5) 46.4 74.9 0.7 0.6x 0.6x 64.6x* NA NM 57.5% 1.0% Mean 2.9x 2.1x 17.6x 252.5x NM 57.1% 9.6% Adj. Mean 2.4x 2.1x 8.9x 252.5x NM 57.1% 9.6% Median 2.1x 1.8x 11.2x 7.5x NM 42.8% 13.9% Note: Adjusted Mean excludes values marked by * 21

ECommerce % of Ent. Value / Net 3 Year Share 52 Week Market Net Ent. LTM Revenues EBITDA Debt / Revenue EBITDA Price High Cap Debt Value Revenues EBITDA LTM 2011E LTM 2011E EBITDA CAGR MarginApple Inc. $411.63 99.6% $381,618.5 ($28,395.0) $353,223.5 $100,322.0 $32,079.0 3.5x 2.9x 11.0x 9.2x NM 38.4% 32.0%Amazon.com Inc. 241.69 99.1% 109,711.6 (6,355.0) 103,356.6 40,277.0 1,827.0 2.6x 2.1x 56.6x 40.5x NM 32.1% 4.5%eBay Inc. 33.10 93.6% 42,657.9 (1,851.2) 40,806.7 10,050.7 3,012.3 4.1x 3.6x 13.5x 10.8x NM 6.1% 30.0%Netflix, Inc. 143.75 47.2% 7,552.1 (141.2) 7,410.8 2,656.3 403.2 2.8x 2.4x 18.4x 14.0x NM 21.5% 15.2%HomeAway, Inc. 41.32 90.3% 3,328.0 (111.6) 3,713.2 200.8 33.7 18.5x* 16.7x* 110.2x* 58.7x* NM NA 16.8%IAC/InterActiveCorp. 42.18 96.3% 3,583.8 (816.0) 2,824.2 1,810.0 221.4 1.6x 1.4x 12.8x 8.0x NM 7.1% 12.2%Zillow, Inc. 28.76 47.9% 792.6 (16.2) 776.4 44.9 1.3 17.3x* NA 614.2x NA NM NA 2.8%Digital River Inc. 22.48 56.4% 892.1 (354.8) 537.2 373.4 52.0 1.4x 1.3x 10.3x 6.5x NM 1.3% 13.9% Mean 6.5x 4.4x 105.9x 21.1x NM 17.8% 15.9% Adj. Mean 2.7x 2.3x 20.4x 14.8x NM 17.8% 15.9% Median 3.2x 2.4x 16.0x 10.8x NM 14.3% 14.6% Note: Adjusted Mean excludes values marked by * 22

Mobile % of Ent. Value / Net 3 Year Share 52 Week Market Net Ent. LTM Revenues EBITDA Debt / Revenue EBITDA Price High Cap Debt Value Revenues EBITDA LTM 2011E LTM 2011E EBITDA CAGR MarginAdvertising & MarketingVelti Plc $7.32 36.6% $450.6 ($137.3) $313.2 $142.0 $10.0 2.2x 1.8x 31.5x* 6.1x* NM 92.1% 7.0%Lenco Mobile Inc. $0.40 9.9% $28.5 ($2.9) $25.6 $7.8 (8.9) 3.3x NA NM NA NM 0.0% (114.7%)Carrier SolutionsNeuStar, Inc. $25.47 91.1% $1,868.3 ($385.2) $1,483.1 $566.0 $242.4 2.6x 2.5x 6.1x 5.7x NM 7.1% 42.8%Motricity, Inc. $2.12 6.6% $98.1 ($3.0) 95.1 $140.7 $21.0 0.7x 0.8x 4.5x 6.7x NM 55.9% 14.9%GamesGameLoft SA $5.09 68.1% $385.7 ($37.9) $347.8 $237.1 $37.9 1.6x 1.6x 9.2x 7.3x NM 14.9% 16.0%Glu Mobile, Inc. $3.32 54.4% 209.7 (26.4) 183.3 65.2 (2.4) 2.8x 2.9x NM NM NM (1.3%) (3.7%) Mean 2.2x 1.9x 12.8x 6.5x NM 28.1% (6.3%) Adj. Mean 2.2x 1.9x 6.6x 6.6x NM 28.1% (6.3%) Median 2.4x 1.8x 7.6x 6.4x NM 11.0% 11.0% Note: Adjusted Mean excludes values marked by * 23

V. Coady Diemar Partners 24

CDP Team and Relevant Experience Focus on traditional/digital media and internet convergence – substantial transaction experience and relevant industry contacts – Colin Knudsen, 25+ years TMT focused investment banker, Co-Founder CDP Senior member of TMT groups, DLJ and Credit Suisse Co-Head, Data Services Group, DLJ and Credit-Suisse – Chris Ensley, 15+ years Broadcast and Media equity research analyst, Bear Stearns and Lazard Freres #1 ranked (Institutional Investor) – Jonathan Newcomb, former CEO of Simon & Schuster; reputation as digital innovator Completed 30+ acquisitions; divestiture of S&S from Viacom C-level relationships at Bloomberg, CBS, eBay, Hearst, Ingram, Amazon, IAC, Pearson, Reed Elsevier, among others Serves on numerous corporate Boards Strong PE relationships – dedicated effort led by Scott Estill and Bob Diemar – Scott Estill Responsibility for developing and maintaining middle market PE relationships – Bob Diemar Former head of DLJ Private Equity Placement group – Coordinate and align PE focus with industry expertise 25

Representative CDP Relationships in “Convergence” Markets 26

CDP’s Key Competitive Attributes We are uniquely positioned to maximize value in Advertising Technology sectors – Bankers and Operating Executives with industry knowledge and significant M&A transaction experience and expertise – Creative and veteran professionals supported by dedicated and seasoned junior resources Superior industry and PE contacts and knowledge – Intimate knowledge of internet/media industries and buyer universes, both strategic and financial – Relationships with key participants in industry value chain – Highly active network of senior operating executives and advisors Substantial M&A experience and skills – Significant experience managing sale transactions – over 80 managed M&A transactions – Bulge bracket heritage (Goldman Sachs, CSFB and DLJ M&A heritage) – Corporate M&A and executive management heritage Private Capital Markets and Strategic Advisory focus and expertise Sustained/commitment of senior bankers and operating partners to client relationship – Senior bankers manage client relationship and all phases of transaction – Operating partners provide access and credibility 27

VI. Appendix: Display Advertising Top 5 – Key Assets/Exposure in Value Chain

D ISPLAY A DVERTISING E COSYSTEM Top 5 – Key Assets/Exposure in Value Chain(1) AOL Ventures participated in $20 mm Series D funding dated May 13, 2011(2) Microsoft participated in $50 mm Series C funding dated October 5, 2010 For additional information visit www.coadydiemar.com or contact Colin Knudsen at colin@coadydiemar.com or Chris Ensley at chrise@coadydiemar.com

VI. Appendix: Display Advertising Ecosystem Top 5 – Key Data

D ISPLAY A DVERTISING E COSYSTEM Top 5 – Key Data For additional information visit www.coadydiemar.com or contact Colin Knudsen at colin@coadydiemar.com or Chris Ensley at chrise@coadydiemar.com

VI. Appendix: Mobile Display Advertising Landscape

US M OBILE A D T ECH L ANDSCAPE Carrier Solutions Media Demand Side Ad Networks Rich Media Supply Side Agencies / Platforms Platforms BuyersA PD UV BE Location Networks / Services LR Ad Exchanges IT Ad Servers SI HS EE SMS / MMS RR Trading Desks SS Measurement / Analytics Tools For additional information visit www.coadydiemar.com or contact Colin Knudsen at colin@coadydiemar.com or Chris Ensley at chrise@coadydiemar.com

Cdp display advertising update 2011

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Cdp display advertising update 2011 Presentation Transcript