Presented by Gian Fulgoni at Web Content Chicago, June 17-18, 2008. Marketing dollars are moving rapidly from traditional media to the Internet. IDC estimates that $25 billion was spent on search and display advertising, in 2007, up 27% over 2006. However, the very nature of consumers’ online behavior dictates that marketers think in new ways if they are to maximize the return from their investments in online advertising. This presentation will examine how consumers are using the Internet and identify the ways in which advertisers can best market to them. This will also reveal the key metrics that marketers need to use as they plan and analyze their online marketing efforts so as to maximize their ROI. The database used for this discussion will be comScore’s panel of 2 million people who have given comScore explicit permission to track the complete details of their online activities.

1. Online is the New Primetime Gian Fulgoni Chairman Web Content 2008 June 18, 2008 MEASURING THE DIGITAL WORLD

5. User Generated Content Sites Growing Rapidly People (000) Monthly Unique Visitors (000)

6. The Internet is the 3 rd most used medium and about to become 2 nd only to TV Source: Forrester Research, March 2007 * Excludes work usage.

7. Internet’s reach exceeds TV’s from 7 am to 8 pm Source: National People Meter, comScore Media Metrix 2007

8. Internet Ad Revenues Continue to Surge Quarterly Internet Advertising Revenues ($ Billions) 1998 1999 2007 2006 2005 2004 2003 2002 2001 2000 Source: Interactive Advertising Bureau (IAB), PricewaterhouseCoopers (PwC) estimates. $21.1B in 2007, Up 26% Over 2006

9. Ad Dollars are Flowing Online Internet Outdoor Cable TV Magazines Direct Mail Miscellaneous Overall Trade Journals Yellow Pages Broadcast TV Radio Newspapers $21 Billion $ 7 $26 $14 $61 $39 $295 $ 4 $14 $46 $19 $44 Media Advertising Dollars Spent in 2007* Percent Change from 2006 Source: Global Insights as published in BusinessWeek * Other sources may define categories differently, leading to different results 60% of all ad spending in traditional media goes to branding campaigns

10. Yet, online is only 7% of total ad spending! 2007 Estimate ($ in Millions) Source: Advertising Age by Robert J. Coen, McCann-Erickson Inc; Newspaper Association of America; Radio Advertising Bureau; Simba Information; Outdoor Advertising Association of America; Interactive Advertising Bureau (IAB); Lehman Brothers % Total Direct Mail $ 60,988 21% Broadcast TV $ 45,749 15% Newspaper $ 42,939 14% Internet $ 21,100 7% Cable TV Networks $ 20,479 7% Radio $ 18,592 6% Yellow Pages $ 14,538 5% Consumer Magazine $ 13,695 5% All other $ 55,977 19% Total $ 296,100 100%

12. The Web Already Delivers More Advertising Than TV! 2.2 x Source: Display Impressions: comScore Ad Metrix, Jan -08, Television GRP’s: comScore Estimates The CPM’s are just much, much lower for Internet. Monthly GRP’s Monthly Impressions Per Person

16. Looking Beyond your Site Server Data What’s the Size of my Lost Opportunity? A: Lost Opportunity Analysis 8% Bought at Marriott 92% Became Visitor Non-Buyers (VNBs) 87% That Visit Another Travel Site 88% Did Not Convert 12% Bought Elsewhere 12.9 Million Unique Visitors 13% Had No Other Travel Activity 25% 14% 10% 10% 8% 7% 7% 19% IC Hotels Hilton Other Priceline Hotels.com Choice Hotels Expedia Starwood $462M Sales Opportunity Gap Analysis of Marriott Visitor Non-Buyers (VNBs) Dollar Share of Lost Sales Among VNBs

17. Decline in Online Ad Click-Through Rates Sources: Doubleclick, eMarketer, Eyeblaster, ABI Research estimates

18. “ Natural Born Clickers” comScore Study with Tacoda and Starcom Clickers on Display Ads Source: comScore, Total US Online Population, July 2007 Clickers Non-Clickers

19. Clickers Follow the 80/20 Rule Source: comScore, Total US Online Population, July 2007 Clickers are predominantly younger (25 - 44) with lower income (under $40K)

20. Those Who Viewed the Ad But Did Not Click Drove Majority of Site Engagement and Sales % of Exposed People Include View-Through Effects When Measuring the Campaign – Clicks Are NOT Enough

21. Majority of Sales Impact of Display Ads Occurs Offline

24. Auto Industry Ad Leaders Source: comScore Ad Metrix, Jan 08

25. Automakers using Portals and Auto Resource Sites Source: comScore Ad Metrix, Jan 08

26. Top Sites Deliver Far Less Than Their Nominal Reach and Need Ad Networks to Expand Effective Reach Reach of U.S. Internet Audience Source: comScore Custom Analysis, December 2007 Bottom 50% of Viewers for Each Site % of Total Page Views % of Page Views Viewed by Bottom 50% of Site Users Average PVs per Light User (bottom 50%) 10.3 14.7 7.4 7.3 At Least Half of Top Sites Audiences Are Hard to Reach by a Typical Campaign AOL Media Network AOL Media Network 74.4% 72.4% 58.7% 56.5% MSN-Windows Live Google Sites Yahoo! Sites AOL Media Network MSN-Windows Live Google Sites Yahoo! Sites

28. “ The Role of Search in Consumer Buying” 2006 comScore Study with Google Source: Google/comScore “The Role of Search in Consumer Buying” Press Release, March 21, 2006; based on holiday-related purchases completed online and offline across 11 product categories for 60 days post-search Direct Online Effects 16% Latent Offline Effects 63% Latent Online Effects 21% The Three Components of how Search Drives Buying

30. Demographic & Life Stage Questions: Base: Searcher (n = 2,011); Non – Searcher (n= 803) = Significant difference at 95% confidence Demographic Profile Searchers are more affluent, younger and more likely to be female SEARCHERS U.S. POPULATION Average Income $63k $45K Average Age 41 46 Female 78% 50% 4 yr. College or Better Education 45% 22%

33. The Brand Lift of Search

35. A 16% Point Increase in Brand Association When Brand Is in Top Sponsored and Top Organic Results Test Brand Other None When you think of fuel-efficient cars, which come to mind? 42% point gap between test brand and another brand 16% Control Side Sponsored Top Sponsored Listing Top Sponsored & Top Organic Top Organic Listing 0% 10% 20% 30% 40% 50% 60% 70% Source: Enquiro Search Solutions, Inc., July 2007; Note: There is a significant (7% point) increase from Control to Side Sponsored, as well. Query: Unbranded (i.e., “fuel efficient cars”)

36. A 2.2x Lift in Aided Brand Recall When Brand Is in Top Sponsored and Top Organic Results Which of the following brands do you remember seeing in the search results page you just viewed? Side Sponsored Top Sponsored Top Sponsored & Top Organic Top Organic Listing Test Brand Other 0% 10% 20% 30% 40% 50% 60% 70% Source: Enquiro Search Solutions, Inc., July 2007. Query: Unbranded (i.e., “fuel efficient cars”) Test Brand 2.2x 1.5x x

39. Search + Display Ad Effectiveness Results: comScore Norms for Offline Sales Lift Incremental Impact On Offline $’s Search ads generate a greater lift in offline sales, but have a far lower reach and cost substantially more than Display ads Offline $$ Per (000) Exposed 11% 8% 80% % of All Exposed Users