Ad Networks Panel Reach Vs Niche

Jefferies & Company, Inc. Jefferies 4 th Annual Internet Conference February 27, 2008 CONFIDENTIAL DRAFT Member, SIPC Ad Networks Panel: Reach vs. Niche - the Conversion Game

Panelists Casper Seifert CFO David Liu Managing Director Internet & Digital Media Group John Ardis VP, Corporate Strategy Don Mathis President Art Shaw CEO

Panelists are leaders in the online advertising network and related services industry

CPM, CPC, CPA

International, Domestic

Owned vs. represented

1

Sector Snapshot 2

What is the Online Advertising Opportunity? Global Online Advertising Revenue, 2005-2010E 1 US Online Advertising Expenditure, 2005-2010E 1

Source: Jefferies Research, 2007.

($ billions) ($ billions) 22% CAGR 22% CAGR 3

How Are Advertisers Spending Their Money?

Source: IAB.

Advertising Spend Allocation – Q2 2007 1 4

Who are the Advertising Network Players?

Note: Public companies labeled black; private companies labeled blue.

Source: comScore Media Metrix, February 2008.

* January 2007 statistics not available – Yahoo! Network growth from November 2007; Google Ad Network growth from July 2007; Specific Media growth from February 2007.

(millions) Total Unique Visitors – January 2008 1

Role of Ad Networks

Marketplace matching advertisers and Website publishers

For Advertisers

Outsourced placement and distribution of ads

Create, plan, optimize, and report campaigns

Broad reach and price economies of scale

For Publishers

Cost-effective means of selling inventory

Handle payment, processing: “love those checks!”

Platform-A Yahoo! Network* Google Ad Network* Specific Media* ValueClick Tribal Fusion Casale Media DRIVEpm adconion media group Connexus 5

Meet the Panelists 6

John Ardis VP, Corporate Strategy 7

Integrated Interactive Services ValueClick, Inc. is literally the only online marketing services provider who covers all online marketing channels in-house , in volume and with 10 years experience in doing so

Display/Rich Media/Video Advertising

CPA Lead/Action Generation Programs

Behavioral Marketing

Third-Party & Site-Side Ad Serving

Email Management

Advertising Management Software

Affiliate Marketing Services

Managed Search Services

CPA Media Programs

Comparison Shopping

Mobile Comparison Shopping

Consumer Reviews

Covering All Client Objectives AWARENESS LEADS SALES CRM Email Marketing CPL/CPA Programs Display/Rich Media/Video Behavioral Marketing Technology (Ad Serving, Email Deployment) Affiliate Marketing Search Marketing Comparison Shopping

#1 independent online display ad network

Reaching ~75% of U.S. Internet audience each month

#1 lead-generation provider in U.S.

Generating millions of qualified multi-channel leads each month

#1 in Affiliate Marketing globally

More than 45% of top 500 online retailers with 3rd-party affiliate program – more than next two providers combined

Billions in ecommerce transactions enabled each year

#1 independent advertising technology provider

#4 consumer comparison shopping properties

5,000+ clients worldwide

ValueClick by the Numbers

Don Mathis President 11

Don Mathis President February 2008

Company snapshot

Strong revenues / highly profitable

Reach = 75% of addressable Internet

Patent-Pending proprietary technology -- Display Ad Serving/Optimization/Targeting and Search

30,000+ Websites, search partners and email publishers

Core Revenue model: Cost Per Action / Direct Response

CPA is only pure “performance based” advertising

Measurable ROI

Strong “down market” characteristics

Little advertiser risk / deep advertiser integration

A Performance-based Ad Network

CPA Performance Marketing: The Nexus of Acquisition and Conversion Discovery Identify the Right Inventory / Mine the Torso & Tail Price Point Management Pay the Right Price Offer Testing Create the Conversion Consumers Point of Inspiration Action Point of Fulfillment Acquisition

Technology-driven

Via the Publisher Network

Via in-house search &

media buying

Conversion

Technology-enabled

Via in-house creative team

Via rigorous testing

Mini-site development

National Advertisers Small/Local Advertisers Self Serve (Ad Center) In-house Agency Services Outside Ad Agencies AD TYPE: TECHNOLOGY: “ ENTRY POINT”: IN-HOUSE OR NETWORK?: Text Ads Coupon Ads Search Display Email Widget/Apps Video DATA-LAYER: OPTIMIZATION & TARGETING Behavioral / Contextual / Geographic / Demographic / Time of Day

Casper Seifert CFO 12

TradeDoubler in brief TradeDoubler generates over € 300 Million in revenue for our customers each month Independent market leading solutions within Affiliate, Campaigns, Search and Technology Over 12 Billion impressions and 7.6 Million leads per month Unrivalled experience with presence in Europe and Japan

The strategic assets An extensive pan- European network of advertisers and publishers Local presence in 18 European Countries and Japan Proven and flexible technolgy platform supporting business model Superior knowledge in online marketing Independent internet marketing solutions provider Products in Search, Technology, Campaigns and Affiliate. Covering +80% of total online adspend

Our Business ” To redefine the marketing landscape." ” We create results Through our knowledge For advertisers, publishers and agencies Globally Through marketing technology " Vision Mission

Art Shaw CEO 13

Domain portfolio

700,000+ generic domain names

99% organic, type-in traffic

Optimize URL parsing, template, content

Search assistant software

Keyword search through address bar

Broad reach of consumer households

Media properties

Original editorial content

SEO-optimized

Powerful optimization and delivery

Demographics

Psychographics

Purchase behavior

Ad views, clicks and conversions

Supports all ad types, sizes, formats

© 2008 Connexus Corporation. All Rights Reserved. The contents of this document are proprietary and confidential. Drag-and-drop form builder Web development services Conversion path optimization Lead scrubbing, validation, de-duplication and real-time delivery Male, 33, single HHI $50k, ZIP 10583 Owns iPhone Likes Coldplay, Radiohead Light drinker Female, 28, married w/ kids HHI $160k, ZIP 60647 Good credit Concerned about car safety Visited DVD review site Audience Profiles Form Builder Custom Form

Platform scales to any product, service or business, national or local Local exchange Advertisers bid for highly qualified, relevant leads Consumers protected with full privacy Publisher captures search revenue © 2008 Connexus Corporation. All Rights Reserved. The contents of this document are proprietary and confidential.

Dave’s Top Five 14

Dave’s Top Five