Jefferies & Company, Inc.

Jefferies 3rd Annual Internet Conference

February 28, 2007

CONFIDENTIAL DRAFT

Member, SIPC

Panel II: Data Driven Performance Marketing

Panelists

Joe Davis

CEO

David Liu

Managing Director Internet & Digital Media Group

Gurbaksh Chahal

CEO

Josh James

CEO

Art Shaw

CEO

Panelists arerepresentative of thedata driven performance marketing industry

Advertising Networks Web Analytics Content Sites

1

Sector Snapshot

2

What Problem are We Solving?

"I know half the money I spend on advertising is wasted, but I can never find out which half"

- John Wanamaker

“Let advertisers spend the same amount of money improving their product that they do on advertising and they wouldn't have to advertise it”

- Will Rogers

"Advertising is on its deathbed and it will not survive long, having contracted a fatal case of new technology"

- Roland T. Rust and Richard W. Oliver

3

What is the Online Marketing Opportunity?

20

26

32

39

46

54

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010

653

318

380

448

517

587

0

100

200

300

400

500

600

700

2005 2006 2007 2008 2009 2010

Online Advertising Revenue 2005-2010E1 Web Analytics Software Revenue, 2005-2010E2

(1) Source: Jefferies Research, 2006. Revenues include ad spend on search, display, text, and other advertising media. Does not include web analytics spend.(2) Source: IDC, 2006.

($ billions) ($ millions)

21.4% CAGR15.5% CAGR

4

How Are Advertisers Spending Their Money?

28.9%

25.1%

9.1%

22.5%

11.6%

2.7%

Direct Response Display

Paid Search

Branded Display

(1) Source: MediaPost & InsightExpress survey of 39 online media profiessionals, July 2006.

AffiliateE-mail

Other

Advertising Spend Allocation – Q2 20061

5

Note: Public companies labeled black; private companies labeled blue.(1) Source: comScore Media Metrix, February 2007.* January 2006 statistics not available - DRIVEpm growth from March 2006; Euroclick growth from November 2006.

Who are the Advertising Network Players?

YoY Growth

7% 15% 42% 34% 23% 58% 29% 39%* 25% 29%*

(millions)

Total Unique Visitors – January 20071

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Role of Ad Networks Marketplace matching

advertisers and Website publishers

For Advertisers Outsourced placement

and distribution of ads Create, plan, optimize,

and report campaigns Broad reach and price

economies of scale

For Publishers Cost-effective means

of selling inventory Handle payment,

processing: “love those checks!”

148.4

129.7

115.9109.9

101.194.9 90.5 88.2

77.0 75.1

0

20

40

60

80

100

120

140

160

6

Who are the Web Analytics Players?

Omniture

WebSideStory

Coremetrics / SurfaidSAS

Institute

Sane Solutions

Other

SPSS

WebTrends

(1) Source: IDC, June 2006.

Web Analytics Market Share – 20051

Note: Public companies labeled black; private companies labeled blue.

Role of Web Analytics Provide visitor behavior metrics to online marketers Marketers leverage these metrics to make data driven decisions resulting in more efficient spending and higher conversion rates Ensure advertisers and publishers are staying honest!

9.5%

12.9%

16.0%

9.7%

43.5%

4.4%1.9%

2.1%

7

Meet the Panelists

8

Dave’s Top Ten

9

Dave’s Top Ten

6. We keep hearing about behavioral targeting. Are there any privacy concerns?

7. Will all advertising go performance based?

8. Agree or disagree?

6. “Online fraud is out of control!”

7. “Getting an accurate ROI is a pipe dream”

8. “Online marketing will always suffer from leakage”

9. Do you believe advertising networks and Web analytics companies compete? Why or why not?

10. How are you exploiting the proliferation of rich media and video on the Web?

1995

1996

1997

1998

1999

2000

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Dave’s Top Ten (Cont.)

1. If you could LONG or SHORT any stock to exploit the next phase of data driven performance marketing what would it be?

2. If you could start ANY Internet based business in 2007 what would it be?

3. Hot or not? Yahoo’s Panama Microsoft’s adCenter Auction based online advertising models

4. Who loses the most if you gain? Traditional media? Other online marketers?

5. What is your biggest competitive threat? What are the big Internet companies doing? Worried?

2001

2002

2003

2004

2005

2006

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