Brite.Max Kalehoff 03 04 09

Online Advertising Made Simple, Instant & Profitable

What’s Happening to Online Advertising, Really?

Max Kalehoff, VP MarketingMarch 4, 2009

The divergence of fortune for pay-per-click and other performance-based models vs. CPM-based models will only intensify as the economy worsens. ‘Spray and pray' is a little harder to do when you're under economic pressure.

- Ted McConnell, GM-interactive marketing and innovation at Procter & Gamble Co

“

10 Truisms. Accept Them.Media are commodities

Premium is over

Remnant is the new premium

CPMs plummet

Demand dictates

Buyer resurgence

From clicks to profit

Instant gratification

Economic decisiveness

Purpose

Inventory Explosion Pressuring CPM

U.S. Banner Ad Impressions & CPM,2005-2007

U.S. Rich Media Impressions & CPM,2005-2007

Source: Internet Advertising Bureau (IAB), Nielsen NetRatings, Morgan Stanley Research.

Performance Valued Higher

Note: (1) Search effectiveness here measured by dividing the total search advertising revenue by total search ads impressions (000);(2) Banner Ad / Rich Media CPM calculated as total banner / rich media advertising revenue divided by total impressions (000). These metrics are not directly comparable to “Ad Revenue per 1,000 Page Views” data presented in slide 21, since many pages do not have ads (thus pvs >> impressions). Source: Morgan Stanley Research

Performance Driving More Acquisition

% of New Online Customers for Online Retailers / Marketing Spend Mix

Source: The State of Retailing Online 2007 / 2008 (Forrester Research), comScore global 7/08, Morgan Stanley Research

Advertiser Mindset Shifting From…

04/10/23Footer here 7

“Perfect, Launch & Wait” to…“Impact, Track & Respond”

What’s Out

• Brand Advertising Less Favorable

• Slow-Impact Experimental Spending

What’s In

• Goal-Based Advertising

• Transparency & Attribution

• Faith In Analytics To Drive Performance

• Offers & Incentives Bedrock Of Marketer & Consumer Mindset

The end.Max [email protected]