The Power of Talk. Using experiential marketing to drive positive word-of-mouth

mission What is House Party? • A highly specialized WoM Marketing & Consumer Activation Solution • We develop and deploy thousands of individual parties that take place across the country, all on the same day • Each Party takes place in the home of a specially selected, highly qualified consumer Host and features your brand or show as the centerpiece • Each event includes a custom branded micro-site that serves as Party Central and Mission Control for 6 weeks • The entire event is planned and tracked by House Party proprietary tools • Each event is managed by a House Party producer to ensure your event is effective for you, and engaging for the consumer 2 ©2008 House Party, Inc.

mission How Marketers Use House Party. House Party delivers an immersive consumer activation experience and a high impact, experiential marketing vehicle. House Party helps clients: • Create an intimate, immersive product trial experience • Activate a new product introduction program that drives extensive word-of-mouth • Build audience for entertainment products and programming • Drive direct sales and new customer acquisition • Drive traffic to online and offline retailers • Marry content and advertisers’ products in a powerful activation setting 3 ©2008 House Party, Inc.

Why House Party? • House Party blends In-Home and Online in a powerful, scalable way • Featured brands become interwoven with a memorable and fun social gathering • House Party events are active, not passive – consumers lean forward and personally experience a brand vs. leaning back in a passive, mass media impression • Brands are experienced in context – in a real life setting, fully installed and integrated into a real person’s home and life • The parties and the experiences they create are completely authentic • The experience lasts for hours, not seconds • The parties create a long tail via organic WoM for 8-12 weeks post event • Structured post-event incentives and special opportunities extend and document the target outcomes 4 ©2008 House Party, Inc.

The Powerful In‐Home Medium of House Party MEASURE House Party – In Home TV Radio Print Online Immersiveness Very High Very Low Very Low Very Low Hit or Miss “Hands on Extensive: None None None None Brand” Time 4+ hrs per consumer Engagement Moderate Very Active Passive Passive Passive Style when it works Situational Prescreened and Very Hit or Lifestyle Hit or Miss Hit or Miss Hit or Miss High Miss Relevance Total Experience 3+ weeks 30 30 10 seconds 10‐30 seconds Duration 4+ hours seconds seconds In‐Context Engineered to be Very Hit or Hit or Miss Hit or Miss Hit or Miss Experience High Miss 5

brand advocates Key Differentiator: Our Hosts House Party hosts are highly engaged and activated to perform. • Hosts are existing brand, show or category advocates • Not all advocates make great hosts • Screened for viral propensity, ability to use and manage digital technology • They’re not compensated • It’s not like a Tupperware party – NO SELLING! • They are the connectors in their social groups; bring different groups together • Like to entertain and do it well 7 ©2008 House Party, Inc.

brand advocates Why Do They Do It? House Party hosts are highly engaged and activated to perform. • They are connected to a brand they like in a new and powerful way • They feel like a VIP • They get recognition from their social group – increased social currency • They are inspired and respected – get a backstage pass to a brand/show • They love the House Party Packs • They have fun! 8 ©2008 House Party, Inc.

Party Site Hosts are led to the free Sunday Supper by Chef Michael’s® House Party™ website, where they: • Send and track invitations • Communicate with guests • View and post consumer-generated media • Read and comment on party blog posting • Receive online party updates • Vote in polls • Download party favors http://www.houseparty.com/chefmichaels 10 ©2009 House Party, Inc.

Party Site continued Party Vision Loop Party Vision View important greetings from Sunday Supper by Chef Michael’s® Lightbox View Event and House Party Explore thousands of media uploads from Sunday Supper by Chef Michael’s® partygoers all across the country Party Vision Loop View, print and share highlighted media from the event. 11 ©2009 House Party, Inc.

My Party Vision Hosts and guests see all photos and videos uploaded to this party album Party Site continued My Party Page Featured PartyTalk™ Where Sunday Supper by Chef Michael’s® House Party partygoers from around the country share their ideas and Party URL experiences. Read Post your party through the URL on your conversations that have MySpace or already started and post Facebook page your comments. Feel so everyone free to start a new can check out conversation about your party anything related to this event. Guest List Snapshot Hosts and guests can Our Party Wall see who’s coming in Make a shoutout an instant to the party... 12 ©2009 House Party, Inc.

Party Site continued Add Guests, Guests List Manager Edit Invites, Send Messages Grow your guest list and create messages to send to individuals or Guest List your entire guest Manager list View and update RSVP status, send reminders or re-invite your guests Status Update View your guest grand total—so you can be ready for the fun 13 ©2009 House Party, Inc.

process Ready, set, party. 45 to 120 days 1 2 3 4 5 Plan & Prep Recruit/Select Build Up Party! Extend/Report • Success metrics set • Host profile developed • Inform/engage hosts • National party day • Extend the buzz • Activities/themes developed • Host screener calibrated • Set up individual party pages • Guest gather at host • Collect partygoer data • Key behaviors/incentives • Host promo plan developed • Develop guest lists households • Gather photos, video, blog matched & deployed • Drive traffic to event site • Party packs are shared verbatims • Co-sponsors engaged • Host aggregation • Blog • Spotlight brands are • Collate event statistics • Party packs developed opens/closes • Drive media uploads experienced • Field post-event survey • Hosts selected • Encourage contest/ • Each party generates 30+ • Summarize phone & email • Branded site launched sweepstakes activities hours of hands-on brand time customer service data • Monitor behavior • Participants engaged to • Gather complete media • Develop party community become viral agents releases and liability waivers • Promote party day • Partygoers blog, upload • Write post-event report • Deliver party packs photos and videos, • Compare results to success providing window into their metrics House Parties • Plan the next House Party 2 to 6 weeks 2 to 3 weeks 2 to 4 weeks 1 day 2 to 4 weeks 15 ©2008 House Party, Inc.

overview Consumers Love House Party Consumer interest in House Party events is strong and growing : • 15,000 to 25,000+ consumers apply even for small events (1,000 parties) • The typical House Party Host spends not just their social currency but their hard currency throwing a party. On average $150 per party • This becomes an EVENT in their home that is authentic, compelling, memorable and fun! • Average party lasts nearly 4 hours • Average number of attendees per party: 15 + 1 host (alcohol trends 17+1) • A 5,000-party event generates more than 340,000 person-hours of in person brand exposure 16 ©2008 House Party, Inc.

Activate Consumers with House Party • Deliver immersive product trial and feedback • Drive traffic to retail and restaurant locations • Deliver high coupon redemption • Initiate purchase online and in-store • Drive traffic, usage and sign-ups online • Incorporate contests, sweepstakes, trivia, polls, email and blog engagement, samples, coupons, literature, custom DVDs, CGM • Activate print and on-air buys with this new In Home capability • Track everything they do and reward them using House Party Points that lead to: • Special Access • Exclusive Offers • Increased Status 17 ©2008 House Party, Inc.

Activation Examples • 8,000 test drives in a single weekend for Ford • 4 cars sold in a weekend for Saturn • 1100 transactions over $50 for Fisher Price • Best coupon redemption rate by a factor of 5 for P&G/Clairol • Green Mountain Coffee Roasters: 40% conversion on sign ups for their monthly coffee continuity program • ABC Family: Secret Life – largest premier in their history with 4.4m viewers • TNT/Raising the Bar – largest premier in cable history with 7.7m viewers • A&E/History Channel: largest viewership in network history for Season 2 of Ice Road Truckers • Cartoon Network/Ben 10 Alien Force: largest premier in their history • Cartoon Network/Star Wars The Clone Wars: 2nd largest audience in their history 18 ©2008 House Party, Inc.

tangible results House Party Measurement & Reporting • Before each event we establish the client’s “success metrics” • During and after each event, we measure the event’s impact both online and off • Track usage on branded party microsite, Twitter, Facebook, Myspace, Blogs, etc. • Survey hosts and guests, both before and after the parties • The metrics in our final report enable ROI comparison across media • ENGAGEMENT (activity, hours of brand exposure, and eCPM‐Thirties – an innovation) • REACH (including eCPM‐Impressions) • BRAND METRICS (lifts in awareness, favorability, brand advocacy, purchase intent) • ACTIVATION (opt‐ins, trials/views, sales – and cost per) • We have been audited by, and work with, ChatThreads, a leading WoM analytical firm

Measurement Framework METRIC CATEGORY WHAT IT MEASURES METRICS HOW WE MEASURE IT How deeply partygoers were Hours of brand‐exposure We track partygoers’ online activity, engaged with the event and Volume of activity (# blog posts, survey them about their offline activity, brand/product. photo uploads, etc.) convert all that activity to time, add it up, Engagement eCPM‐Thirties (effective cost‐per‐ and calculate the eCPM‐Thirties. thousand thirty‐second segments of brand exposure) How far word of the event and Number of impressions We track partygoers online impressions, brand/product spread, from eCPM‐Impressions (effective cost‐ survey them about their offline partygoers to their “conversation per‐thousand impressions) impressions and conversations, apply partners” (CPs). frequency‐assumptions based on Reach industry and House Party research, calculate total impressions, as well as the eCPM‐Impressions. How the event affected partygoers’ Percentage lifts in: We survey partygoers about their awareness of, and attitudes • Awareness brand/product awareness & attitudes, Brand Awareness & toward, the brand/product (i.e. the • Favorability both before and after the parties, then Attitudes impact at “the top of the sales • Advocacy (Intent to recommend) calculate the lift. funnel”). • Intent to purchase How the event drove consumers to Numbers of: We count the number of opt‐ins, survey transact with the brand/product • Contact opt‐ins partygoers about their trials/views and Activation (i.e. the impact at “the bottom of • Free trials/views (& cost per) purchases, and count the sales results the sales funnel”). • Sales (& cost per) when the client provides them. 21 ©2009 House Party, Inc.

Typical Results Summary (1000 Parties) • Engagement • 65,000 hours of brand exposure (eCPM-Thirties $11) • Reach • Over 1.3 million impressions (eCPM-Impressions $55) • Awareness & Attitudes • Awareness: 25 point lift (guests) • Favorability: 80/80 point lift (hosts/guests) • Advocacy: 20/25 point lift (hosts/guests) • Purchase-Intent: 20/25 point lift (hosts/guests) • Activation • Client Opt-Ins: 8,000 • Trials: 13,000 (Cost-per-trial = $7) 22 ©2009 House Party, Inc.

Total Impressions: 1,314,829 eCPM-Impressions: $55 Reach Methodology & • Host impressions: 187,530 • Guest impressions: 227,384 (14 guests/party) Typical Results (1000 parties) • Applicant Impressions: 8,055 • Host passalongs: 102,000 (see diagram) • Guest passalongs: 750,000 (see diagram) • Social network Impressions: 39,860 Generation 0 Generation 1 Generation 2 Generation 3 Hosts talked Hosts’ CPs 1,000 with 17 talked with an Conversation additional 5 CPs Hosts Partners (CPs) each Guests Guests’ CPs 15,000 talked with talked with an additional 4 CPs Guests 10 CPs each Generations 0, Generation 1, and Generation 2 (Host) data are based on survey data Generation 2 (Guest) and Generation 3 are based on industry research (Measuring the Ripple, 2007) and analysis of House Party™ data 24 ©2009 House Party, Inc.

Word‐of‐Mouth Marketing • What is Word‐of‐Mouth? • An alternative marketing strategy, encouraging consumers to talk about products and brands • Online and off • Often facilitated by influential peers, communities, and brand advocates • Does not include* in‐store product sampling; coupons & loyalty programs; event marketing & sponsorships; non‐WoM PR (e.g. crisis management); social network & consumer‐generated media ads • Associated terms: buzz, grassroots, community or cause marketing, influencers, brand ambassadors, product evangelists • The most powerful medium? • Prospects targeted through social connections monetize at a rate 3‐5 times that of those targeted using traditional marketing techniques. (Hill, Provost and Valinksy, Wharton School of Business, 2007) * For purpose of PQ Media’s market‐sizing

Word‐of‐Mouth Marketing (cont.) • The WoM planets have aligned • Greater awareness of its importance (e.g. via the hype of digital social networks) • The emergence of tools to affect it • The fragmentation of traditional media and the relative inefficiency of traditional advertising (cluttered, avoidable, less targetable, less measureable) • Spending on WoM is getting real • In 2008, spending on WoM marketing increased 14% to $1.5 billion* The growth rate (CAGR) from 2003 to 2008 was 38%* • In 2009, spending looks to increase 10% to $1.7 billion* This despite the decrease in spending on many marketing segments • Measurement of WoM is getting real • Marketers are demanding, and getting, accurate measurement & ROI metrics • House Party is helping lead the way (see “Measurement & Analytics” slide) Source: PQ Media

Word‐of‐Mouth Marketing (cont.) • The WoM supplier landscape: • General marketing and ad agencies; PR firms • WoM agencies, communities, media companies • Measurement and technology firms • Top 10 WoM spenders: • CPG, Food & Drink, Finance & Business, Electronics & Telecom, Retail, Auto & Transportation, Entertainment & Media, Apparel & Accessories, Healthcare & Pharma, Sports & Gaming • Most WoM happens offline • Despite the hype of digital social networks • Over 90% of WoM about brands takes place offline. And less than 2% takes place via blogs, chatrooms, or social networking sites. (Keller/Fay) • The most effective WoM blends online and off

WoM & House Party, Over the Next Few Years • WoM will grow 14.5% from 2008 to 2013, reaching $3 billion (PQ Media) • Targeting will get Increasingly precise • Measurement & ROI reporting will get increasingly accurate and granular • The fusing of online and off will get ever more seamless and effective • WoM will become a part of all marketing campaigns

Bumble Bee Tuna Temptations Party Summary Parties: Over 14,000 people attended 998 parties • Spread word offline and across the Web Recruit: Over 9,000 applied to be host • Family-oriented female Bumble Bee consumers, 25-54 Engagement: Over 66,000 hours with the brand (eCPM-Thirties1 $13) Reach: Over 1.2 million impressions (eCPM-Impressions1 $83) Brand Consideration • Awareness: 31-57 point lift • Favorability: 90-95 point lift • Advocacy: 28-32 point lift • Purchase-Intent: 26-41 point lift Activation • Opt-Ins: over 10,000 opt-ins to be contacted by Bumble Bee • Free Trial: over 13,000 free trials (cost-per-free-trial1 $7) • MyCookbook Signups: over 3,000 registrations 31 ©2009 House Party, Inc.

SPLENDA® Sweet Solutions Party Summary Parties: 14,000 people attended 1,000 parties • Spread word offline and across the Web Recruit: Over 7,000 applied to be host • Moms, 25-54 Engagement: Over 61,000 hours with the brand (eCPM-Thirties under $17) Reach: Over 1.7 million people (eCPM-Reached under $69) Brand Consideration • Awareness: 33-point lift • Favorability: 87-92 point lift • Advocacy: 24-35 point lift • Purchase-Intent: 19-31 point lift Activation • Opt-Ins: over 8,000 opt-ins to be contacted by SPLENDA® • Contest Entries: 152 • Trial: over 33,000 trials (cost-per-trial under $4) 32 ©2009 House Party, Inc.

Hot Wheels® Battle Force 5™ House Party™ Parties: Over 15,000 people attended 848 parties • Spread word offline and across the Web Recruit: over 8,000 applied to be host • Kids who watch Cartoon Network and love Hot Wheels®, Adults who know their home entertainment system Engagement: over 56,000 hours with the brand (eCPM-Thirties $12) Reach: over 1.4 million impressions (eCPM-Impressions $57) Brand Consideration • Awareness: 57 point lift • Favorability: 81-85 point lift • Advocacy: 27-42 point lift • Intent to Watch: 23-38 point lift • Purchase-Intent: 19-38 point lift Activation • Opt-Ins: over 9,000 opt-ins to be contacted by Hot Wheels® • Views: over 14,000 Views (cost-per-view $6) 33 ©2009 House Party, Inc.

French Cocktail Hour House Party Summary Parties: over 15,000 people attended 984 parties • Spread word offline and across the Web Recruit: over 20,000 applied to be host • Higher income; wine drinkers and shoppers Reach: over 6.9 million people • eCPM-Reached under $15 Engagement: over 85,000 hours with the brand • eCPM-Thirties under $10 Brand Consideration: Awareness: 39-41 point lift Favorability: 59-62 point lift Advocacy: 14-18 point lift Purchase-intent: 9-13 point lift Activation: • Opt-Ins: over 15,000 people agreed to future contact • Trial: over 36,000 trials (cost-per-trial under $3) 34 ©2009 House Party, Inc.

Project Snapshot Project Goals • Drive Product Trial • Product awareness • Develop brand loyalists • Sales/coupon redemption Target Consumer • Women with dogs • Ages 45 - 54 • Household income:60K+ • Grown children or no children 36 ©2009 House Party, Inc.

Party Pack • 16 Chef Michael’s® samples of Filet Mignon flavor • 16 Chef Michael’s® samples of Rotisserie Chicken flavor • 1 Tablecloth • 2 Table tents • 2 Canine creation food shaping tins • 15 Recipe Book creation kits • 15 Chef Michael’s® serving plates for your dog • 15 Made With Love dish cards • 15 Branded napkins *The elements of the host party packs were selected and provided by Purina • 15 Gift bags 37 ©2009 House Party, Inc.

Party Pack continued melissapeek said... “Party Pack just arrived! Bow wow WOW! We are so excited and can't wait for all are friends to come over and share in all the fun! Thanks Houseparty! Our 4 legged friends will have a tail wagging good time trying Chef Michaels. Thank you Purina!!!!!!!!!!!!!!!!!!!!!” msteff said... “I'm so happy we hosted... our dog LOVES the products and I am now a happy consumer, I believe our guests (and those that were unable to attend and received a treat bag will agree). The quality of the product is great, as I said our dog really enjoyed his meal and he'll be eating this for sure in the future. THANK YOU CHEF MICHAEL!!!!” 38 ©2009 House Party, Inc.

Chef Michael – Sunday Supper House Party Parties: over 12,000 people and 7,500 dogs attended 983 parties • Spread word offline and across the Web Recruit: over 3,900 applied to be host • Women, 45-54, household income of 60,000+ Engagement: over 50,000 hours with the brand (eCPM-Thirties1 $14) Reach: over 4.1 million impressions (eCPM-Impressions1 $21) Brand Consideration: • Awareness: 61-point lift • Favorability: 95-97 point lift • Advocacy: 41-51 point lift • Purchase-Intent: 37-48 point lift Activation • Opt-Ins: over 5,000 opt-ins to be contacted by Purina • Free Trial: over 33,000 free trials (cost-per-free-trial1 under $3) 39 ©2009 House Party, Inc.

Project Snapshot Project Goals Target Consumers • Drive ESPN Fantasy Football signups • Males ages 28-45 • Build awareness of Fantasy Football • Median 15 hours per week spent and ESPN Fantasy Football offerings playing fantasy football • To deliver a positive ESPN experience • Experienced fantasy football around the draft at the grassroots level players • Income over 60k • NFL Fan • Interested in that connection/ camaraderie with friends • Priority to California and Texas 41 ©2009 House Party, Inc.

Party Pack • Fantasy Football Sweatshirt • Full Draft Board (Board, labels, marker) • ESPN The Magazine- Fantasy Edition • Folder with Fantasy cheat sheets and analysis • ESPN Bottle Opener • ESPN Koozies • Monday Night Football Magnets • ESPN Cups • ESPN Napkins • ESPN Plates *The elements of the host party packs were selected and provided by ESPN 42 ©2009 House Party, Inc.

Party Pack continued “The kit is awesome! This is my first official party and what a way to get things going!” “The Draft kit was awesome. The Draft Board with the sticker names was the best part of the Kit.....Well outside of the Hooded Sweatshirt! 43 ©2009 House Party, Inc.

ESPN Fantasy Football Draft Party Parties: Over 15,000 people attended 990 parties • Spread word offline and across the Web Recruit: Over 6,500 applied to be host • Males 28-45, previous Fantasy Football players Engagement: Over 87,000 hours with the brand (eCPM1-Thirties $9) Reach: Over 1.3 million impressions (eCPM-Impressions $66) Brand Consideration: • Awareness: 10-18 point lift • Favorability: 84-88 point lift • Advocacy: 15-22 point lift • Signup-Intent: 12-20 point lift Activation • Opt-Ins: over 7,000 opt-ins to be contacted by ESPN • Signups2: over 14,000 Signups (cost-per-signup $6) 1 – CPM and other cost measurements based on 90% of contract price, taking into account (10%) creative, but excluding party pack and shipping costs 2 – Number of signups assumes that live draft participants were using ESPN Fantasy Football 45 ©2009 House Party, Inc.

Project Snapshot Project Goals • Product awareness • Sampling American Legends® pizzas • Direct Sales/Purchase Intent Target Consumer • Families with children (under 12 and some older) • 26-39 • Female • In delivery area (in pickup area secondary 47 ©2009 House Party, Inc.

Party Pack The Party Pack consisted of • One $75 Domino’s gift card • One Domino’s notepad and pen • One You Gotta Be Kidding game from Zobmondo!! • 15 coupons for Zobmondo!! “I am so excited I am having some • 15 Domino’s coupons much fun planning my pizza order that • 15 AMC Movie Theater coupons I had to buy Dominos last night for the kids because they saw me on the website planning the party.” “Thanks Dominos and HP, I just got my party pack and it is great!! “ *The elements of the host party packs were selected and provided by Domino's 48 ©2009 House Party, Inc.

Party Site Hosts are led to the free Domino's American Legends™ House Party™ website, where they: • Send and track invitations • Communicate with guests • View and post consumer-generated media • Read and comment on party blog posting • Receive online party updates • Vote in polls • Download party favors http://www.houseparty.com/americanlegends 49 ©2009 House Party, Inc.

Party Site continued Party Vision Loop Party Vision View important greetings from Lightbox View the Domino’s American Legends Explore thousands of media Event and House Party uploads from the Domino’s Party Vision Loop American Legends partygoers View, print and share highlighted all across the country media from the event. 50 ©2009 House Party, Inc.

Domino’s American Legends House Party Parties: over 41,000 people attended 1,993 parties • Spread word offline and across the Web Recruit: over 19,000 applied to be host • Women, 26-39, in families with children Engagement: over 200,000 hours with the brand (eCPM-Thirties under $7) Reach: over 4.3 million people (eCPM-Reached under $35) Brand Consideration: • Favorability: 90-94% of partygoers experienced an increase in favorability • Awareness: 53 point lift • Advocacy: 40-43 point lift • Purchase-Intent: 35-36 point lift Activation • Opt-Ins: over 19,000 opt-ins to be contacted • Trial: over 176,000 trials (cost-per-trial under $1) • 95% of hosts have already encouraged friends and family to try Domino’s American Legends pizza 51 ©2009 House Party, Inc.

Healthy Laughs Party Summary - Qiagen • Parties: over 12,000 people attended 974 parties • Spread word offline and across the Web • Recruit: over 3,500 applied to be host • Women ages 30-49 • Engagement: over 51,000 hours of brand exposure (eCPM-Thirties1 $15) • Reach: over 900,000 impressions (eCPM-Impressions1 $95) • Brand Consideration: • Awareness: 31-32 point lift • Advocacy: 37-44 point lift • Intent to request a test: 35-37 point lift • Intent to request coverage: 33-38 point lift • Activation • Opt-Ins: over 4,600 opt-ins to be contacted by Qiagen • DVD/Online Video Views: over 16,000 views (cost-per-view1 $5) 52 ©2009 House Party, Inc.

pricing Basic Rate Card Event Size Base Price per Direct Total Reach Event Attendees 1,000 Parties $120,000 13,000+ 1.4 million+ 2,500 Parties $220,000 32,500+ 3.5 million+ 5,000 Parties $300,000 65,000+ 7 million+ 10,000 Parties $425,000 130,000+ 14 million+ 25,000 Parties $750,000 325,000+ 35 million+ 50,000 Parties $925,000 750,000+ 72 million+ PRICING NOTES: • Filling and Shipping costs for Party Packs are additional and are not included in the fees above • Administration costs for any contests or sweepstakes that are executed by House Party for the events are charged back to Client at cost. Inclusion of Sweepstakes or contests is an additional fee • Volume discounts available for multiple events • Fees billed in 3 parts once an event date is scheduled 53 ©2008 House Party, Inc.

The Power of Talk. Using experiential marketing to drive positive word-of-mouth

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