Bespoke Yahoo! UK research on how consumers engage with search and what impact this has on the advertising marketplace.

1. Search in 2010: The Consumer Perspective Patrick Hourihan, UK Head of Trade Research

2. There’s no lack of performance data in Search Traffic to Travel Republic Average Visit time to Travel Republic Source: Hitwise click stream data

3. There’s no lack of performance data in Search Search terms driving traffic to Travel Republic Source: Hitwise click stream data

4. But what is it telling us? + v

5. How did we do it? The Y! Connections Panel is an opt-in research panel of 10,000 internet users recruited from the Yahoo! Site Search Insights survey ran from 26th February to 8th March 2010 Weighted to be reflective of the internet population In total 2,222 respondents completed the survey Yahoo! Connections Panel

6. Who’s at fault if a result doesn’t come back on the first page? Just how important is search in the user experience? What are the perceived benefits of sponsored search? Do people remember and search for ad straplines?

7. The role of search 5/24/2010

8. Search is core to the consumer’s web experience 74% of internet users agree they cannot make the most of the web without search engines Source: Yahoo! Research, March 2009 | Sample: All, 2222

9. This is built on a high level of reliability 69% of internet users agree that search engines are reliable enough to help them find what they want Source: Yahoo! Research, March 2009 | Sample: All, 2222

10. Brand identity helps define the search relationship 54% “My favourite search engine is a brandI can identify with” 67% | 124 “My favourite search engineis a brand I can identify with” Source: Yahoo! Research, March 2009 | Sample: All, 2222

11. But there are alternatives to search How do you remember useful or interesting websites you have visited? 61% Bookmarkon theweb browser 39% Search again for useful sitesthey know of 29% Let their browsertoolbar remembersites 7% E-mail linksto themselves 7% Copy/pasteinto Worddoc on PC 7% Write downthe URL onpaper Source: Yahoo! Research, March 2009 | Sample: All, 2222

12. Brand recall? Source: Yahoo! Research, March 2009 | Sample: All, 2222 5/24/2010 Yahoo! Presentation Template, Confidential

13. 65% blame the web (engine or company) 36% yourself 31% the search engine 34% the website/brand If you are searching for a website belonging to a companyand you do not find it on the first page of the search results,who do you blame? Source: Yahoo! Research, March 2009 | Sample: All, 2222

14. And 65% of people will not go beyond the first page…

15. A quarter will be lost to an alternative destination 40% keep refining the search terms to find the website I wanted 23% go to another website that came up in the results 35% will go to the next page of the search results If you are searching for a website and you do not find it on the first page of the search results, but you do find links to similar websites, what are you most likely to do next? Source: Yahoo! Research, March 2009 | Sample: All, 2222

16. Searching without the brand is commonplace 68% of internet users have searched for a company… but did not remember the company’s name Source: Yahoo! Research, March 2009 | Sample: All, 2222

17. 69% of searchers search for strap lines... 71% tried and were successful Q |How did you go about finding the company? A |Searching for the strap line or phrase from the advertising 22% tried and were not successful… but did find a similar company 7% tried and were not successful Source: Yahoo! Research, March 2009 | Sample: All who have tried to find company but did not remember name, 1544

18. 75% tried and were successful 87% of searchers also search ‘generic terms’ Q | How did you go about finding the company? A | Searching for a generic term for the type of company and scrolled through to find the one I was looking for 22% tried and were not successful… but did find a similar company 3%tried and were not successful Source: Yahoo! Research, March 2009 | Sample: All who have tried to find company but did not remember name, 1544

19. Generic search drives conversions Source: Nielsen presentation: Visualising the full customer journey to assess the key trigger points behind purchase, Jan 09

20. Perceptions of sponsored search 5/24/2010 Yahoo! Presentation Template, Confidential

21. High awareness for sponsored search 69% of internet users are aware that the results at the top and side of the page are paid-for advertising. Source: Yahoo! Research, March 2009 | Sample: All, 2222

22. ..with Yahoo! search users more likely to look at them Q | Do you typically look at theseresults if they come up whenyou are searching? A | Yes, I look at them Source: Yahoo! Research, March 2009 | Sample: Those who look at paid for results, 373

23. But why use sponsored search? Reasons for using sponsored search results 34% they are the most prominent 32% they are the most relevant results 32% they reassure me that I am goingto the official company’s site 32% I know these sites will be ofreasonable quality Source: Yahoo! Research, March 2009 | Sample: Those who look at paid for results, 373

24. Yahoo! search users more likely to purchase Agree | “I have bought products froma website I found by clicking onsponsored search terms” Source: Yahoo! Research, March 2009 | Sample: All, 2222

25. Final thoughts Consumer confidence in search engines is underpinned by a high level of trust in its quality - but it’s a competitive market There’s a number of ways in which brands could potentially suffer if consumers cant find their brands through search Brand loyalty weakens Straplines Generic terms Sponsored search can provide reassurance to consumers that the destination site is authentic

26. Patrick Hourihan UK Head of Trade Research hourihan@yahoo-inc.com Questions?