Far more than simply ecommerce, the digital channel is the growth engine to drive new markets, test merchandise quickly and cost effectively, acquire new customers, retain existing customers and tap them along with brand fans to propagate messages, content and influence purchases across all channels. In this session, you’ll learn why the digital channel is a growth engine for your business and how to realize its full potential. This session will delve into digital, its benefits and opportunities, and examine how the consumer purchase decision is forever altered by the new digital consumer.

1. PRESENTED BY: Kelly Mooney President & CXO, RESOURCE INTERACTIVE THE DIGITAL CHANNEL: Retail’s new growth engine

3. Web sales remain too small to matter. MISCONCEPTION #1

4. The web remains the fastest-growing channel, driving disproportionate retail growth. FACT:

5. TOTAL SALES (trillions) Retail Growth is Relatively Flat Overall 2.6% Total Retail CAGR is projected to be 2.6% from 2007-2012 Source: Forrester Research, January 2008 2007 2008 2009 2010 2011 2012

6. TOTAL SALES (triillions) Online Growing 5x Faster than Offline 2007 14% ONLINE Retail CAGR is projected to be 14% from 2007-2012 2008 2009 2010 2011 2012 Source: Forrester Research, January 2008

9. The web is primarily an e-commerce channel. MISCONCEPTION #2

10. The web uniquely catalyzes and impacts cross-channel shopping. FACT:

13. TOTAL SALES (millions) 2007 50% 2008 2009 2010 2011 2012 48% 47% 45% 42% 38% Offline Sales Offline Sales Influenced by Online Online Sales The Web is Projected to Influence 50% of Offline Sales by 2012 Jupiter: US Online Retail Forecast, 2007 - 2012 Total Online Impact

14. Web Improves Total Customer Experience The web should be the hub for engagement and transactions Web-and-Spoke Model Source: Resource Interactive 2002, rev 2008 ENABLE ADVOCACY & AMPLIFICATION

15. Stores are the most important channel for purchasing. MISPERCEPTION #3

16. The web has begun to rival stores for purchase decision- making. FACT:

17. Web Rivaling Offline in Importance Home electronics buyers rated stores and online equally Source: Resource Interactive Survey, August 2008 Q: How important were each in helping you make your decision on what to purchase? 7% said that online was “absolutely essential” when making an apparel purchase decision

18. Advertising dollars are being judiciously shifted to the web. MISCONCEPTION #4

19. Consumers’ time spent online is outpacing web advertising planning and tracking. FACT:

20. Greatest Disparity Between Time Spent Online and Internet Ad Spending Source: Forrester Research, January 4, 2008 *Note: consumer media time does not include time spent using a cell phone, watching DVDs or playing video games. Share of time in a typical week that US adults spend with Select Media* vs. Share of US advertising spending by media, 2007

21. Source: Advertising Age, June 2008 Notes: Dollars in millions. Media expenditures by medium from TNS Media Intelligence. *Medium's percentage of all measured and unmeasured advertising. “ Internet” includes Display Ads, not Search or… - Search optimization - Affiliates - Social media - Email - E-circulars - Web site - In-store - CRM - Mobile 2007 U.S. AD SPENDING TOTALS BY MEDIUM for the top 100 National Advertisers MEDIA ADVERTISING SPEND (Millions) MEDIUM AS A % OF TOTAL SPEND Magazine $9,538 9 Sunday magazine $755 0.7 B-to-B magazine $491 0.5 Local magazine $16 0 National newspaper $1,063 1 Local newspaper $5,328 5.1 FSI $818 0.8 Network TV $18,029 17.1 Spot TV $5,165 4.9 Syndicated TV $2,557 2.4 Cable TV networks $9,075 8.6 Network radio $460 0.4 National spot radio $1,015 1 Local radio $1,751 1.7 Outdoor $1,038 1 Direct mail NA NA Internet $4,185 4 Measured media $61,283 58.1 Unmeasured spending $44,205 41.9 Total U.S. spending $105,488 100 2007 U.S. AD SPENDING TOTALS BY MEDIUM for the top 100 National Advertisers MEDIA ADVERTISING SPEND (Millions) MEDIUM AS A % OF TOTAL SPEND Magazine $9,538 9 Sunday magazine $755 0.7 B-to-B magazine $491 0.5 Local magazine $16 0 National newspaper $1,063 1 Local newspaper $5,328 5.1 FSI $818 0.8 Network TV $18,029 17.1 Spot TV $5,165 4.9 Syndicated TV $2,557 2.4 Cable TV networks $9,075 8.6 Network radio $460 0.4 National spot radio $1,015 1 Local radio $1,751 1.7 Outdoor $1,038 1 Direct mail NA NA Internet $4,185 4 Measured media $61,283 58.1 Unmeasured spending $44,205 41.9 Total U.S. spending $105,488 100

22. Reduced advertising spending where customers weren’t paying attention COST PROFIT 18% 40% Gap Makes Data-Smart Spending Move Source: Advertising Age, May 2008

23. P&G Makes Spending Shift Re-assessed Media Spending to Align with Consumers Source: Advertising Age, August 2008

24. More than 25% of the search results on Google for the world’s 20 largest brands, are consumer generated content. — Nielsen Buzz Metrics The number of text messages sent and received each day exceed the population of Earth . — m-metrics, 2007 Mobile Commerce Landscape 77% of Internet shoppers read online product reviews. — JupiterResearch, August 2007 86+ million social network users in the U.S. — eMarketer, 2008 1.4 blogs created every second of every day. — Technorati 2007 The average U.S. citizen will spend 5.4 years per lifetime online. — Nielsen Online Stats, 2007 Over 3 million twitter users in the U.S. — Twitdir, 2008

25. WORLDVIEW OF A CLOSED BRAND WORLDVIEW OF AN OPEN BRAND Targets Consumers Fosters Communities of Consumers Monologue Brand Management Awareness Push Guarded Communications Created by Marketers Brand Stewardship Dialogue /Trilogue Engagement Pull Transparent Communications Co-created With Consumers

26. THE OPEN BRAND FRAMEWORK Fuels relevant customer experiences … is for On-Demand Delivers accessible, self-directed and instantly gratifying experiences. … is for Personal Facilitates meaningful interaction with many markets of one. … is for Engaging Deepens attachment through relevant emotional experiences. … is for Networked Taps the exponential potential of individual consumers and online niche communities.

32. 75% higher likelihood to purchase online 60% higher satisfaction with the multi-channel retailer 42% higher likelihood to purchase offline High Level of Satisfaction with the Online Shopping Experience Yields Big Returns Source: Foresee Results, Spring 2008

33. HOW OPEN IS YOUR BRAND? Do you compel customers to spend time with your brand? Do your customers collectively influence the future of your brand? Do you make it fast and easy to make purchase decisions? Do you listen to your customers and personalize their experience?

35. PRESENTED BY: SPONSORED BY: Kelly Mooney www.mooneythinks.com www.theopenbrand.com New Business Opportunities Melissa Dorko [email_address] 614.621.2888 Speaking Engagements Megan Burnside [email_address] 614.621.2888