Cdp display advertising_update2011

Display Advertising – 2011 Market Update

September 20, 2011

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Table of Contents

I. Trends in Display Advertising

II. M&A and Capital Markets Observations

III. Relevant M&A Transactions

IV. Sector Public Market Comparables

V. Coady Diemar Partners

VI. AppendixA. Display Advertising Top 5 – Key Assets/Exposure in Value ChainB. Display Advertising Ecosystem Top 5 – Key DataC. Mobile Display Advertising Landscape

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I. Trends in Display Advertising

Overview

US Ad Spend totaled $175B in 2010, a 6% increase over 2009– Remains below 2007 high of $204.5B– 1.7% of nominal GDP compared to 2.1% 30 year average

In April 2011, 214.5M Americans used the internet; 2.5 hours average daily usage– Reach and engagement statistics second only to TV– Social, games and video driving growth

U.S. Internet Advertising revenue exceeds $27B for the 12-mth period ending March 2011 – 23% growth Q1 2011 compared to prior year, up from 15% growth in 2010 versus 2009– Fastest growth of all measured media– Larger share of total ad spend (14.9%) than cable networks, newspapers, magazines and radio– 20% annual growth forecasted next 2 years

Search advertising accounts for approx. $12B of spend in 2010

– 46% of market, 12% growth in 2010– Google possesses 65% share

Display advertising spend nearly $10B in 2010

– 24% growth in 2010; online video exploding; mobile emerging– Top 5 (Yahoo, Microsoft, AOL, Google and Facebook) account for approx. 50% of the market– Display market expected to overtake search by 2015 with market growing to $22B in size – a 17% CAGR

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The Big 5 in Display

The display ad space is a real battleground among the top five

– Facebook and Google are ascendant, Yahoo and FOX flat to down, AOL declining

Facebook has emerged as a giant in the Internet ecosystem

– In 2011 Facebook will generate $2.2B of display advertising revenue, a 21.6% share -- easily surpasses perennial leader Yahoo with $1.65B spend and a 16.4% share

– 5% of total time spent on the internet, 25% of all page views, nearly half of all US internet users are members– Increasingly important source of referral traffic

Google is experiencing strong organic growth in display, from YouTube and acquisitions

– Google growing at approx. 50% in 2011 to $1.28B, a 12.6% share– YouTube streams over two billion videos every day and 100 mm unique users visit the site every month in the US– Google has recently acquired AdMeld and companies in the social, mobile and video sectors

Performance travails continue at Yahoo and AOL

– Both have made recent acquisitions to enhance capabilities and reach

The top advertisers and publishers, adtech service providers and aggregators split the balance

– Several dozen significant publishers– Ad technology market fragmented; and characterized by substantial new investment, M&A and emerging leaders

Key Current Trends

Substantial growth in display market anticipated for 2011 - very strong 1st half

– Expect approximately $12.0B display ad spend in 2011, up 20+-% from 2010, 39% of online spend

Real-Time Bidding (“RTB”) is the story of 2011

– Enhances ability to buy targeted audience at scale through instant auctions, remnant focused– Rapid adoption has resulted in lower CPMs and higher CTR performance– $1.0B market in 2011, 8%-10% of online display and growing

“Private” exchanges emerge as key gateway for premium publishers

– Built on SSPs and RTB enabled – Publishers offer more premium inventory with greater contextual information– Higher CPMs for no-guaranteed inventory result in higher margins

Rapid growth of video advertising

– Online video projected to be the fastest growing segment of online advertising, driven by brand advertising– Online video projected to grow to $7.1B in 2015 from $1.4B in 2010 (38% CAGR)

Mobile is finally emerging as an advertising platform with scale

– Approximately $1.0B 2011 ad spend in North America growing to $5.8B in 2015 (Gartner), 4% of total ad spend– Mobile display to be relatively evenly divided between in-app and mobile web placements– Rapid adoption of HTML5 resulting in substantial growth in rich media

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Video Advertising is Exploding

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Online advertising is projected to grow 3x faster than total online ad spend

– Online video advertising is projected to account for nearly one-quarter of total online advertising growth ($5.7B out of $23.5B in incremental spending between 2010 and 2015)

Source: eMarketer

Mobile trends driving huge commerce and advertising opportunity

5.3 billion global mobile subscriptions – 76.2% penetration

– 55 mm tablet unit sales est’d in 2011, iPad projected to retain 75% market share

In U.S. through June 2011 234 M Americans aged 13 and older used a mobile device, 95% penetration

– Approximately 88 mm own a smartphone, 38% of the market – 55% of prior 3-mth mobile phone purchases were smartphones – Approximately 50% of devices provide fast mobile internet via 3G/4G

Smartphone and 3G+ users consume lots of data and apps

– Average smartphone generates 24x more data traffic compared to the typical feature phone– iOS and Android devices generates 4x more data – represent 68% of postpaid market Q2 ‘11– Global mobile data traffic est’d to increase 26x from 2010 to 2015 (Cisco)– Mobile app downloads to increase from 10.7B in 2010 to 180B in 2015 (IDC)– Paid app downloads to reach $2.0B quarterly by end of 2012 (Strategy Analytics)

Mobile advertising spend expected to grow rapidly

– More engagement, more engaging ads with HTML5 and location drive migration of ad dollars– U.S. ad spend in 2011 estimated at $1.0B + growing to $5.8B in 2015 (Gartner)

Mobile internet driving commerce

– 79% of smartphone owners use phone to help with shopping– M-commerce approximately $2.4B or 2.7% of web revenue

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II. M&A and Capital Market Trends

Innovation and Robust M&A Market

The display advertising market is dynamic and characterized by new investment

– Substantial venture capital participation funding new start-ups (nearly $1.0B in new money Q2)– Investment generally targeting niche aspects of market, innovate and seek exit– Continued evolution as brand and DR medium driving growth and capital investment

Agencies and brands increasingly seeking comprehensive/multi-platform service providers

– Driving robust M&A market– Larger players acquiring capabilities/speed-to-market– Mid-sized participants combining to achieve scale and “seat at table”

Substantial M&A activity in the Display Advertising ecosystem

– Over 100 sizeable purchase/sale transaction in 2011 already– Big-5, tech, agencies, media and marketing services providers all participating– Video, social, mobile and measurement most active segments

Active M&A environment expected to continue with cycle of innovation

– Getting tantalizingly closer to delivering specific targeted audience at scale– Corporate balance sheets flush with cash; public market valuations volatile

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AdTech Incumbents Enhancing Portfolio through M&A

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Media, Technology and Related Industries Going Digital

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1 Year and 5 Year Sector Stock Market Performance

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III. Relevant M&A Transactions

Enterprise Value / Rev. EBITDA

High 33.8x 47.1xMean 5.1x 21.3x

Median 2.8x 18.9xLow 0.2x 6.8x

Summary Transaction Information

Summary purchase multiple statistics for relevant 2011 M & A transactions are as follows:

Historical Transaction Data

Consolidation in the display advertising market has grown exponentially beginning in 2010

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Year# of

TransactionsTransactions with

Multiples Data

2011 106 26

2010 47 9

2009 7 2

2008 8 4

2007 17 5

Relevant 2011 Transactions

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Announced Enterprise Enterprise Value / Date Target Buyer Value Rev. EBITDA Target Description

09/13/11 AdoTube Exponential Interactive (Tribal Fusion) NA NA NA Provides in-stream video/video overlay advertising solutions for publishers and advertisers/marketers

09/13/11 OneRiot Walmart NA NA NA Operates as a search engine that finds the pulse of the Web09/12/11 BDM Global Ventures (JigoCity) FriendFinder $65.0 NA NA Operates as a daily deals website offering online discounts

09/08/11 Zagat Google Inc. NA NA NA Provides consumer survey-based dining, travel, and leisure information in the United States

09/07/11 Digital and Direct (UK) SapientNitro $41.0 NA NA Plan, create and deliver campaigns across traditional media, web builds and apps, social media, display, email and mobile

08/30/11 EyeWonder, Inc. DG FastChannel, Inc. $66.0 1.8x NA Provides interactive digital advertising products and services in the United States

08/19/11 Rockfish Interactive, Inc. WPP Digital $40.0 2.8x NA Provides marketing research and strategy, and search engine optimization services to brand identity and social media campaigns

08/15/11 AdJug, Ltd. IgnitionOne, Inc. NA NA NA Operates as an online advertising exchange08/08/11 Reinvigorate Webtrends NA NA NA Provides Web analytics applications

08/08/11 Remodelista Say Media NA NA NA Owns and operates home interiors website for design enthusiasts and home owner

08/05/11 Dashwire HTC $18.5 NA NA Provides Connected Services platform to deliver mobile-Web consumer services in the United States and internationally

08/05/11 Hip Cricket Augme Technologies $44.0 NA NAOperates as a mobile marketing and advertising company that empowers brands, agencies, and media properties to engage customers, drive loyalty, and increase sales in the United States

08/03/11 Global Traffic Network GTCR $239.6 2.2x 15.8x Provides traffic and news information reports to radio and television stations

08/03/11 AdXpose comScore $22.0 NA NA Provides digital advertising analytics solutions

08/02/11 Sprout InMobi NA NA NA Provides Web-based services for individuals to collect money from their social network for group gifts, events, and fundraising

08/02/11 Dotomi Value Click $295.0 3.7x NA Offers Internet advertising and media management services

08/01/11 Ticket Monster Living Social NA NA NA Operates web-based platform for buying and selling of products and services online

08/01/11 Digicom Amscreen NA NA NA Engages in building and delivering digital out of home networks

08/01/11 The Dealmap Google Inc. NA NA NA Provides local deals, offers, and discounts on local restaurants, entertainment, attractions, hotels, spas, salons, and shops.

07/28/11 Pushbutton Amazon NA NA NAProvides interactive television content and services for IPTV, Internet-enabled TV sets, tablets, TV widgets, broadband Internet, satellite, and cable platforms

07/28/11 Zokem Oy Arbitron $11.7 NA NA Designs, develops, and distributes software for mobile phones

Relevant 2011 Transactions (cont’d)

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07/27/11 Synovate (Aegis ) Ipsos $858.2 1.0x 12.8x Operates as a marketing research company07/26/11 Zappedy Groupon, Inc. $10.3 NA NA Develops applications for merchants07/20/11 Insider Guides (myYearbook) Quepasa $100.0 4.2x 20.4x Operates as an online social network in the United States

07/19/11 JagTag Augme Technologies $5.5 NA NA Develops and provides multimedia messaging service 2D barcode content delivery systems in the United States

07/14/11 GoLocal.Biz Nexstar Television NA NA NAOffers online local business listings, advertising and promotion solutions, embedded video, images, map, contact information, local advertiser web links and other vital information to local consumers

07/07/11 Tumri Collective Media NA NA NA Provides online display advertising solutions07/07/11 Zong eBay (PayPal) $240.0 NA NA Provides online mobile payment services

07/05/11 BackType Twitter NA NA NA Operates a search engine that enables the users to find, follow, and share comments from blogs and social news sites on the Web

06/29/11 MySpace (Fox Entertainment) Specific Media $35.0 0.2x NA Operates a Web site to create private online community06/20/11 Sage TV Google Inc. NA NA NA Develops digital entertainment and placeshifting solutions06/16/11 Appealing Media Ltd. YuMe, Inc. NA NA NA Operates a mobile video and rich media advertising network

06/16/11 MediaMind Technologies Inc. DG FastChannel, Inc. $422.7 5.0x 28.5x Provides digital advertising campaign management solutions to media agencies and advertisers worldwide

06/15/11 Fwix Comcast/NBCU NA NA NA Operates a local news site that offers information in the areas of business, crime, environment, politics, and sports

06/09/11 Ad Meld Google Inc. $400.0 13.3x NA Provides advertising network optimization technology for online publishers in the United States and internationally

06/08/11 Scoreloop AG Research in Motion NA NA NA Operates as a social gaming platform for the mobile devices

06/07/11 Steak Group Dentsu NA NA NA Provides digital marketing services for businesses that promote their products or services online in the United Kingdom and internationally

06/06/11 PostRank Google Inc. NA NA NA Offers RSS filtering solutions05/27/11 Groop Swoop BuyWithMe NA NA NA Provides an online platform for shopping deals05/17/11 ReviNet Pubmatic NA NA NA Provides advertising network optimization services to online publishers05/17/11 Rosetta Publicis $575.0 2.6x NA Provides personalized marketing solutions

05/16/11 Minicom Digital Signage EnQii Holdings NA NA NA Produces multimedia distribution and extension solutions for the digital signage marketplace

05/13/11 5:1 Yahoo! $26.4 33.8x NM Operates an online advertising platform

05/13/11 Spinback BuddyMedia NA NA NADevelops social commerce and analytics tools that helps online retailers to quickly launch social features and measure its effectiveness by only embedding a few lines of code


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05/11/11 Inside Network WebMediaBrands $14.0 NA NAProvides original market research, critical analysis, data services, and news on the Facebook platform, social gaming, and mobile applications ecosystems

05/10/11 Skype Microsoft Corporation $9,082.4 10.6x 47.1x Provides communications services over the Internet

05/04/11 Context Optional Efficient Frontier $50.0 NA NA Provides social marketing software and services for brands, advertising agencies, and publishers

05/04/11 AdCloud Deutsche Post NA NA NA Operates as an advertising technology company in Germany and Switzerland

05/04/11 BuzzLabs CityGrid (IAC) NA NA NA Provides social media monitoring solutions05/04/11 Flixster Time Warner NA NA NA Operates as an online community for movie fans

05/02/11 Clickability Limelight Networks $10.0 NA NA Develops web content management, interactivity, and navigation software

05/02/11 UGO Entertainment IGN (News Corp) NA NA NA Creates and operates Websites and online properties for gamers04/28/11 Shopzilla (Scripps Networks) Symphony Technology Group $165.0 NA NA Operates as an online shopping search engine04/28/11 YouCast Halogen Media NA NA NA Provides internet advertising by using social media

04/28/11 AdBuyer MediaBank NA NA NA Provides an audience buying and optimization platform for search marketers

04/25/11 Greystripe Value Click $70.0 2.8x 28.0x Operates an ad-supported mobile games and applications distribution platform

04/25/11 IntoNow Yahoo! $22.0 NA NA Develops television and mobile applications

04/20/11 Where eBay (PayPal) $150 +- NA NA Provides local search and recommendation services on mobile phones and Web applications

04/18/11 Kosmix Wal-Mart NA NA NA Develops a social media technology platform that filters and organizes content in social networks to connect people with real-time information

04/18/11 Whrrl Groupon, Inc. NA NA NA Enables to connect to people, places, and events around through an integrated Web/mobile application

04/17/11 Dogster SAY Media NA NA NA Operates pet-focused online communities

04/13/11 Tatto Media Ozura World $60.0 NA NA Provides online advertising services to advertisers and publishers in the United States and internationally

04/11/11 PushLife Google Inc. $25.0 NA NA Develops mobile application for Nokia, LG, Samsung, BlackBerry, and Android mobile devices

04/11/11 ioko365 Ltd KIT digital $79.4 1.5x NADesigns, builds, and runs digital media platforms for telecommunications, media, and entertainment companies in the United Kingdom and internationally


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04/07/11 Burst Media Blinkx $30.0 0.8x NA Provides Internet advertising solutions to online advertisers, publishers, and ad networks

04/07/11 Jingle Networks Inc. Marchex Inc. $61.2 NA NA Provides directory assistance services in the United States

04/01/11 MIJO Corp. DG Fast Channel $39.5 2.3x 13.2x Provides bilingual services to generate and deliver final broadcast, print, and digital media materials in Canada and North America

03/29/11 IMPAQT Merkle NA NA NA Operates as a search marketing agency03/29/11 Web TV Enterprise Ltd. Collective Media NA NA NA Operates an online video advertising network

03/29/11 Radian6 Technologies Salesforce.com $326.0 NA NA Provides social media monitoring and analysis solution for marketing, communications, public relations, and customer support professionals

03/28/11 GSI Commerce Ebay $2,400.0 1.8x 23.1x Provides e-commerce and interactive marketing services primarily in North America

03/24/11 Journalism Online RR Donnelley $45.0 NA NA Provides technology and marketing support that enables publishers to charge for select Web site access and digital content

03/24/11 Muzak Mood Media $375.0 1.9x 6.8x Provides various media based solutions

03/21/11 Tiny Prints Shutterfly $357.2 4.1x NA Engages in the online retail of chic photo cards and personalized stationery

03/18/11 Adenyo Motricity $142.5 8.9x NA Provides interactive, online, and mobile marketing and advertising solutions

03/15/11 TXT Polymedia KIT digital $34.4 NA NAProvides products and services for multi-channel content management and interactive cross-media service management for the broadcasting, media, telecommunication, and enterprise sectors

03/07/11 BeatThatQuote.com Ltd Google Inc. $62.0 NA NA Operates as a price comparison Web site in the United Kingdom03/07/11 Next New Networks Google Inc. NA NA NA Operates as an independent producer of online television networks

03/04/11 Outside.in AOL NA NA NA Provides a data and technology platform that develops, organizes, and distributes hyperlocal news online

03/04/11 Clicker Media CBS NA NA NA Operates as a guide to Internet television03/02/11 Adometry Click Forensics NA NA NA Provides online advertising services in Washington

03/01/11 Thumbplay Clear Channel NA NA NA Engages in aggregating, promoting, and delivering mobile entertainment content directly to members

02/23/11 OggiFinoggi Collective Media NA NA NA Provides advertising technology, video platform, player technology and advanced campaign analysis

02/09/11 MarketingNPV MarketShare Partners, Inc. NA NA NAOperates as an advisory company that links marketing investments to financial value creation, enabling clients to measure the payback on their marketing efforts and take risks with resource allocation

02/09/11 Shine Ltd BskyB (News Corp) $668.0 NA NA Produces and distributes television content


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02/08/11 OnLive HTC $40.0 NA NA Provides on-demand gaming platforms02/07/11 Saffron Media HTC $48.6 2.8x NA Is a digital content distributor 02/07/11 Mindset Media Meebo NA NA NA Operates as an Internet ad-technology and market research company02/07/11 Huffington Post AOL $300.0 9.7x NA Provides online services to its members and users

02/07/11 Transpera Tremor Media NA NA NA Provides platform and bridging technology for mobile video deployments in North America

02/07/11 Communispace Diversified Agency Services (Omnicom)

NA NA NA Develops, manages, and facilities private online communities for organizations in the United States and internationally

02/04/11 Inlet Technologies Cisco $95.0 NA NA Provides encoding solutions02/04/11 Answers.com AFCV Holdings $93.9 4.4x 17.5x Provides answer-based search services to users

02/01/11 Manymoon Salesforce.com $25.0 NA NA Is a Web-based social productivity tool that leverages existing cloud platforms

02/01/11 Goviral AOL $74.1 NA NA Distributes content based campaigns in digital environments in the United Kingdom and internationally

01/31/11 Kewego KIT digital $32.0 3.1x NA Provides business solutions to manage, broadcast, and monetize videos on the Internet, Intranet, and screen networks

01/31/11 Decentral.TV (dba Kyte) KIT digital $6.7 1.8x NA Provides an online and mobile video platform for live and on-demand content

01/31/11 KickApps KIT digital $43.2 NA NAProvides a software-as-a-service platform that hosts, manages, and delivers media and community applications for media companies and businesses

01/26/11 TrackSimple BlueKai $6.7 NA NA Operates a data-as-a-service platform that provides reporting, analysis, and prediction services to media companies

01/25/11 Dailymotion SA Orange (France Telecom) $160.0 6.4x NAOperates a Web video portal for members to see, create, and share online videos in the United Kingdom, Australia, Morocco, France, Poland, Canada, and internationally

01/25/11 fflick Google Inc. $10.0 NA NA Operates a Web portal which features movie trailers, reviews, and ratings

01/25/11 Rel8tion Facebook NA NA NA Provides hyperlocal mobile advertising technology01/19/11 LOVEFiLM Amazon $200.0 NA NA Operates as a home entertainment company in the United Kingdom01/19/11 Engine Entertainment IAC NA NA NA Engages in international TV content distribution and production

01/19/11 Demdex Adobe Systems Inc. $58.0 NA NA Provides audience management solutions for multi-channel data strategies

01/10/11 ClearSaleing GSI Commerce Inc. NA NA NA Provides advertising portfolio management technology for Internet retailers and direct marketers

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IV. Sector Public Market Comparables

% of Ent. Value / Net 3 YearShare 52 Week Market Net Ent. LTM Revenues EBITDA Debt / Revenue EBITDAPrice High Cap Debt Value Revenues EBITDA LTM 2011E LTM 2011E EBITDA CAGR Margin

Google Inc. $546.67 85.0% $176,513.1 ($32,981.0) $143,532.1 $33,328.0 $12,785.0 4.3x 3.8x 11.2x 9.2x NM 20.9% 38.4%

Yahoo! Inc. 14.61 77.5% 18,446.8 (2,513.5) 15,973.2 5,569.7 1,430.3 2.9x 3.6x 11.2x 11.1x NM (3.2%) 25.7%

Pandora Media, Inc. 10.82 41.6% 1,744.9 (95.3) 1,649.6 203.3 (1.0) 8.1x 5.7x NM 2447.0x NM 112.8% (0.5%)

ValueClick, Inc. 17.20 87.2% 1,361.3 (142.5) 1,218.8 477.1 136.7 2.6x 2.3x 8.9x 7.5x NM 4.7% 28.7%

AOL, Inc. 14.22 51.4% 1,521.1 (338.8) 1,182.3 2,253.8 463.0 0.5x 0.5x 2.6x 3.4x NM (22.4%) 20.5%

Velti Plc 7.32 36.6% 450.6 (137.5) 313.2 142.0 10.0 2.2x 1.8x 31.5x* 6.1x NM 92.1% 7.0%

Demand Media, Inc. 7.99 29.2% 670.6 (103.6) 567.0 297.9 61.2 1.9x 1.8x 9.3x 6.7x NM 22.9% 20.6%

QuinStreet, Inc. 10.76 43.2% 511.7 (61.2) 450.6 403.0 74.9 1.1x 1.1x 6.0x 5.1x NM 28.0% 18.6%

ReachLocal, Inc. 12.78 45.0% 373.6 (93.6) 280.0 334.5 (6.3) 0.8x 0.8x NM 20.9x NM 62.2% (1.9%)

interCLICK, Inc. 5.96 66.7% 147.3 (6.7) 140.6 118.2 10.9 1.2x 1.0x 13.0x 7.5x NM 107.0% 9.2%

Quepasa Corp. 4.77 30.9% 79.5 (4.6) 74.9 8.7 (4.5) 8.6x* NA NM NA NM 202.2% (51.7%)

Local.com Corp. 2.72 37.5% 59.8 (13.5) 46.4 74.9 0.7 0.6x 0.6x 64.6x* NA NM 57.5% 1.0%

Mean 2.9x 2.1x 17.6x 252.5x NM 57.1% 9.6%

Adj. Mean 2.4x 2.1x 8.9x 252.5x NM 57.1% 9.6%

Median 2.1x 1.8x 11.2x 7.5x NM 42.8% 13.9%

Online Media

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Note: Adjusted Mean excludes values marked by *


Apple Inc. $411.63 99.6% $381,618.5 ($28,395.0) $353,223.5 $100,322.0 $32,079.0 3.5x 2.9x 11.0x 9.2x NM 38.4% 32.0%

Amazon.com Inc. 241.69 99.1% 109,711.6 (6,355.0) 103,356.6 40,277.0 1,827.0 2.6x 2.1x 56.6x 40.5x NM 32.1% 4.5%

eBay Inc. 33.10 93.6% 42,657.9 (1,851.2) 40,806.7 10,050.7 3,012.3 4.1x 3.6x 13.5x 10.8x NM 6.1% 30.0%

Netflix, Inc. 143.75 47.2% 7,552.1 (141.2) 7,410.8 2,656.3 403.2 2.8x 2.4x 18.4x 14.0x NM 21.5% 15.2%

HomeAway, Inc. 41.32 90.3% 3,328.0 (111.6) 3,713.2 200.8 33.7 18.5x* 16.7x* 110.2x* 58.7x* NM NA 16.8%

IAC/InterActiveCorp. 42.18 96.3% 3,583.8 (816.0) 2,824.2 1,810.0 221.4 1.6x 1.4x 12.8x 8.0x NM 7.1% 12.2%

Zillow, Inc. 28.76 47.9% 792.6 (16.2) 776.4 44.9 1.3 17.3x* NA 614.2x NA NM NA 2.8%

Digital River Inc. 22.48 56.4% 892.1 (354.8) 537.2 373.4 52.0 1.4x 1.3x 10.3x 6.5x NM 1.3% 13.9%

Mean 6.5x 4.4x 105.9x 21.1x NM 17.8% 15.9%

Adj. Mean 2.7x 2.3x 20.4x 14.8x NM 17.8% 15.9%

Median 3.2x 2.4x 16.0x 10.8x NM 14.3% 14.6%

ECommerce

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Advertising & MarketingVelti Plc $7.32 36.6% $450.6 ($137.3) $313.2 $142.0 $10.0 2.2x 1.8x 31.5x* 6.1x* NM 92.1% 7.0%

Lenco Mobile Inc. $0.40 9.9% $28.5 ($2.9) $25.6 $7.8 (8.9) 3.3x NA NM NA NM 0.0% (114.7%)

Carrier SolutionsNeuStar, Inc. $25.47 91.1% $1,868.3 ($385.2) $1,483.1 $566.0 $242.4 2.6x 2.5x 6.1x 5.7x NM 7.1% 42.8%

Motricity, Inc. $2.12 6.6% $98.1 ($3.0) 95.1 $140.7 $21.0 0.7x 0.8x 4.5x 6.7x NM 55.9% 14.9%

GamesGameLoft SA $5.09 68.1% $385.7 ($37.9) $347.8 $237.1 $37.9 1.6x 1.6x 9.2x 7.3x NM 14.9% 16.0%

Glu Mobile, Inc. $3.32 54.4% 209.7 (26.4) 183.3 65.2 (2.4) 2.8x 2.9x NM NM NM (1.3%) (3.7%)

Mean 2.2x 1.9x 12.8x 6.5x NM 28.1% (6.3%)

Adj. Mean 2.2x 1.9x 6.6x 6.6x NM 28.1% (6.3%)

Median 2.4x 1.8x 7.6x 6.4x NM 11.0% 11.0%

Mobile

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V. Coady Diemar Partners

CDP Team and Relevant Experience

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Focus on traditional/digital media and internet convergence – substantial transaction experience and relevant industry contacts

– Colin Knudsen, 25+ years TMT focused investment banker, Co-Founder CDPSenior member of TMT groups, DLJ and Credit SuisseCo-Head, Data Services Group, DLJ and Credit-Suisse

– Chris Ensley, 15+ years Broadcast and Media equity research analyst, Bear Stearns and Lazard Freres

#1 ranked (Institutional Investor)

– Jonathan Newcomb, former CEO of Simon & Schuster; reputation as digital innovator

Completed 30+ acquisitions; divestiture of S&S from ViacomC-level relationships at Bloomberg, CBS, eBay, Hearst, Ingram, Amazon, IAC, Pearson, Reed Elsevier, among othersServes on numerous corporate Boards

Strong PE relationships – dedicated effort led by Scott Estill and Bob Diemar

– Scott EstillResponsibility for developing and maintaining middle market PE relationships

– Bob Diemar

Former head of DLJ Private Equity Placement group– Coordinate and align PE focus with industry expertise

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Representative CDP Relationships in “Convergence” Markets

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CDP’s Key Competitive Attributes

We are uniquely positioned to maximize value in Advertising Technology sectors

– Bankers and Operating Executives with industry knowledge and significant M&A transaction experience and expertise – Creative and veteran professionals supported by dedicated and seasoned junior resources

Superior industry and PE contacts and knowledge

– Intimate knowledge of internet/media industries and buyer universes, both strategic and financial– Relationships with key participants in industry value chain– Highly active network of senior operating executives and advisors

Substantial M&A experience and skills

– Significant experience managing sale transactions – over 80 managed M&A transactions– Bulge bracket heritage (Goldman Sachs, CSFB and DLJ M&A heritage)– Corporate M&A and executive management heritage

Private Capital Markets and Strategic Advisory focus and expertise

Sustained/commitment of senior bankers and operating partners to client relationship

– Senior bankers manage client relationship and all phases of transaction– Operating partners provide access and credibility

VI. Appendix: Display Advertising Top 5 – Key Assets/Exposure in Value Chain

DISPLAY ADVERTISING ECOSYSTEMTop 5 – Key Assets/Exposure in Value Chain

For additional information visit www.coadydiemar.com or contact Colin Knudsenat [email protected] or Chris Ensley at [email protected]

(1) AOL Ventures participated in $20 mm Series D funding dated May 13, 2011(2) Microsoft participated in $50 mm Series C funding dated October 5, 2010

VI. Appendix: Display Advertising Ecosystem Top 5 – Key Data

DISPLAY ADVERTISING ECOSYSTEMTop 5 – Key Data


VI. Appendix: Mobile Display Advertising Landscape

US MOBILE ADTECH LANDSCAPE


ADVERTISERS

Measurement / Analytics

SMS / MMS

Location Networks / Services

Ad Networks

Tools

Ad Servers

Rich Media

Trading Desks

Ad Exchanges

Demand Side Platforms

Media Agencies / Buyers

Supply Side Platforms

Carrier Solutions

PUBLISHERS

Cdp display advertising_update2011

Business

excludes values

ebitda target

contact colin

na na na

online advertising

display advertising

0 na na

0 na na