Financial Vertical Category

Expanding ContextWeb’s success in the Financial Vertical Category

Paul Curran

November 14th, 2008

Agenda

What Financial Advertising Means to ContextWeb Marketplace Situation Financial Advertising Spending Our Benefits in the Financial Vertical Competitors Trends in Online Marketing Case Study: Bank of America Overview

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Financial Advertising: What It Means To Our Company

Biggest spending industry we have, accounting for $9.6 Million Dollars over 2007 and YTD 2008 and 21% of our overall income

YTD: $3.5 MM/15% of national sales

+11% VS YTD 2007

YTD: $3.02 MM/ 20% of national salesTotal: $5.90 MM/ 28% of national sales

2007

2008

Finance Vertical Category: SWOT Analysis

Strengths:Largest online advertising industry $1.4 billion accounts for 22% of online spending 475.2 billion impressions accounts for 26% advertising impressions online 29 different companies have spent at least $10 million each so far in 2008

Opportunities:These companies will still need to advertise their business onlineEconomy only has room to improveNew Administration in OfficeCompanies establish themselves as sympathetic, forward thinking and reliable in this time of crisis by utilizing the genius of contextual advertising

Weaknesses:Crumbling economyProblems in these advertisers businesses including mass lay-offs and companies changing hands very frequently creates an unstable environmentCompanies once perceived as reliable are not anymore

Threats:Problems in these advertiser's businesses will affect their advertising spendWe have seen budget cuts so far and will continue to see more as advertisers worry about keeping their heads above waterIn a time of crisis, why should advertisers spend their money on “risky business” like contextual advertising

Insights: What does this marketplace situation mean for ContextWeb?

Contextual Advertising is a cost effective way to reach consumers

Advertisers with shrinking budgets can be hesitant to venture into this new space

This budget crisis will have an effect on all parts of consumer advertising, but the companies that put their heads in the sand and ignore the most targeted and measurable media are sinking their business

The coming months will be an awesome opportunity for Contextweb to prove our merit: by working effectively with these advertisers to deliver contextually relevant ads when their businesses need them the most

At a Glance: Financial Services Industry Online Spending

2007 YTD Spend: $1.9 Billion2007 Total Spend: $2.6 Billion

2008 YTD: $1.4 Billion online•26 % Decline in Advertising dollars VS a year ago•August to October, there is a 29% decline, or a difference $190 MM VS a year ago

Ad Relevance, October 2008

Who is Advertising? The Top Dogs of 2008

This top group of Advertisers has spent combined $848.2 MM in 2008

Ad Relevance, November 2008

Top Dogs

Ad Relevance, November 2008

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Our Benefits: Unique Visitors in ContextWeb Finance and Money

•Over 60 million unique visitors month•3X what it was in October last year

Com Score, October 2008

•Over 2 Billion Page Views a month•8X what it was in October last year

Total Pages Viewed in ContextWeb Finance and Money

Com Score, October 2008

Unique Reach

•In the time of crisis, we have the highest unique reach

Com Score, October 2008

Subcategories

Finance/Money Subcategory People Cookies Page Views

Beginning Investing 41.4K 43.3K 74.8

Credit/Debit Loans 863.8K 946.7K 3.3MDayTrading 33.8K 36.1K 81.8K

Financial News 1.7M 2.1M 7.4M

Financial Planning 25.9K 26.6K 41.9K

Insurance 530.6K 603.6K 6.2M

Investing 309.0K 340.5K 721.4K

Mutual Funds 230 244 328

Retirement Planning 336.6K 357.2K 639.7K

Stocks 3.6M 4.6M 21.5M

Tax Planning 481.0K 508.2K 1.1M

Who is Getting the Money?

•Despite having the highest category reach, unique visitors per day and page views, ADSDAQ was not close with the leaders in advertising dollars for the time of the start of the economic crisis

•This can be attributed to these other sites having more established brands

Ad Relevance, November 2008

Advertiser Spending: Bank’s Online Spend

Financial Advertising in the online space is growing:

We see these businesses investing more and more in online advertising because of the accountability, optimization and success other banks have seen in the past

EMarketer, November 2008

Advertiser Spending: Budget Allocations

Banks are allocating more of their budgets to online media and venturing away from traditional media

Showing trust in what online vendors can do for them

EMarketer, November 2008

Trends to Watch

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Customization Financial players are looking to maximize traffic and revenues by delivering quality experiences to customers with distinct needs

Wachovia created a passel of microsites targeted around a specific offering to a particular customer segment.

Wachovia has gone so far as to create “vanity URLs” that further customize a user’s experience on the site.

Financial institutions are moving away from a broad portal approach to offering a more customized Web experience according to the individual needs of customers.

Citibank in 2006 made instant account opening possible on deposit accounts online. It resulted in nearly a 500% increase in new accounts.

EMarketer, November 2008

Trends to Watch

Mobile Banking

Banking executives project that, by 2010 or 2011, approximately one-third of all online banking customers will use mobile banking services, which will be driven by younger, more tech-savvy customers

The increasing numbers of Java-enabled mobile phones will make those transactions easier.

Social Media Credit card firms such as American Express, Visa and MasterCard—known for their

aggressive and relevant marketing campaigns (online and offline)—are more likely to employ social media to engage consumers than are banks

Web sites offering online feedback are increasingly popular in building customer loyalty and relationships and in drawing consumers to new services

Makes consumers more “sticky”

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Case Study: Bank of America

Background

As one of the Leading Banking Online Advertisers, and our biggest financial client, Bank of America has been a pioneer for online advertising

From 2005 to 2006 we saw a 74% increase in their online spending

Have the lowest amount of budget allocated to Traditional Media at 13.6% as of 2006

Recently changed digital agencies (March 2008) from OMD Digital to Digitas

They have spent a combined $1.5 million with us in 2007 and 2008

They have utilized our Contextual targeting capabilities for campaigns in Small Business, Affinity, Olympics and Deposit Savings

Objective of this case study is to examine why they run repeat campaigns with us and what we can do to translate this success to other financial advertisers

Bank of America and ContextWeb

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Bank of America: Creative

Q4 Small Business Fundamentals

Target: “New to the market” Small Business Owners with no employees and with a company revenue less than $100K

Campaign Goals: Increase awareness of the BAC Fundamental Business Package and drive enrollments to this product suite

Budget :$180,347.58

Special Placement Considerations: Geo-Targeting to Atlanta, Chicago, Miami and NY

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We fit their business objectives and campaign goals

Agency Comments: Why We are Recommended

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BAC Small Business Fundamentals Plan: Q4 2008

Ability to target the small business owner through geo targeting and contextual targetingLeverage advanced targeting to connect with SMB audience outside of endemic contentAdvanced targeting includes: job titles, employee size, SMB behavioral and creative retargeting, page/article level contextual

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AVG CTRCTRImpressions

Top Level CTR Avg CTR ImprFitness 0.142% 0.00072367 28,933Health & Medicine 0.132% 0.00072367 79,010Shopping 0.094% 0.00072367 167,390Law & Politics 0.089% 0.00072367 1,263,421Hobbies & Interests 0.083% 0.00072367 2,735,127Business & Industry 0.083% 0.00072367 3,383,903Education 0.071% 0.00072367 416,269Career 0.069% 0.00072367 132,500Finance & Money 0.069% 0.00072367 728,435Science 0.065% 0.00072367 209,959Religion 0.063% 0.00072367 68,307Computers & Electronics 0.061% 0.00072367 921,920Arts & Entertainment 0.060% 0.00072367 1,320,846Small Business 0.056% 0.00072367 76,621People & Relationships 0.052% 0.00072367 112,615Travel 0.051% 0.00072367 252,932Sports & Recreation 0.050% 0.00072367 775,115Real Estate 0.047% 0.00072367 117,604Parenting & Family 0.046% 0.00072367 82,377Food & Drink 0.044% 0.00072367 100,761Pets 0.039% 0.00072367 135,906Style & Fashion 0.039% 0.00072367 134,712Home & Decoration 0.025% 0.00072367 101,059Autos 0.025% 0.00072367 320,720

How it worked

Whats the Secret to Our Success?

Targeted, relevant campaigns that worked Resourcefulness to create custom campaigns 8% CTR Delivering what we promise The ability to work with Bank of America to deliver the advertising their business

needs to succeed

This is how we grew this business, and by implementing this same technique with other financial advertisers we can improve our sales in this industry category

Overview

Budgets are being trimmed but these advertisers are not going dark

Rough time for these advertisers, their budgets are shrinking and they are worried about keeping their heads above water

Opportunity for ContextWeb to assert itself as an ally and as a cornerstone for these businesses to continue to reach advertisers by partnering with a company that combines contextual relevant ads with targeted reach

When times look the worst, companies need advertising the most