1. 2009 Internet Advertising Revenue Report
Rethinking the Market Opportunity
April 7, 2010
Terence Kawaja
GCA Savvian Advisors

2. Interactive Advertising is on a Long Term Growth Path…
$40
$35
$30
GR = 12%
$25 CA $23.4 $22.7
$ Billions
$21.2
$20
$16.9
$15 $12.5
$9.6
$10 $8.1 $7.1 $7.3
$6.0
$5
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Online Ad Spend ($Bn)
Notes:
Source: IAB / PricewaterhouseCoopers internet advertising revenue reports.

3. …But Has Much More Upside Potential
Media Consumption vs. Ad Spend, 2009
TV
Newspapers
Radio
Magazines
Online
0% 10% 20% 30% 40% 50%
% ad spending by media % of time households spend by media
Notes:
Source: Wall Street research, 2010.
(1) As a percentage of ad spending on the media channels indicated above only: TV, Newspaper, Radio, Magazines and Online.

4. The Crowded Display Ad Tech Landscape
Agencies Media Buying Ad Ad Networks Sharing Data /
DSPs
Platforms Exchanges Social Tools
Horizontal
Trading Desk
A P
D U A
Video / Rich Media Yield
V Optimization
B U
E L D
R Vertical I I
T E
S N
I Targeted Publisher H C
S Creative Data
Optimization
Data
Exchanges /
Tools
E E
Optimization Aggregators
E R
Performance
R S
S
Ad Servers Ad Servers
Analytics Verification / Data Suppliers Mobile
Attribution
Ad Ops / Infrastructure

5. Deals are Back and Consolidation is Coming
Recent
Digital Media
Acquisitions: Global Tech Transactions $10MM - $1.0Bn (1)
54
Transaction Volume ($Bn)
$16 50 60
Number of Transactions
49
45 50
$12
34 40
30 30
$8 $10 $10 30
$9 20
$8
$7 20
$4
$4 $4 10
$3
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008 2009
Transaction Volume ($Bn) Number of Transactions
Notes:
(1) Source: FactSet as of 2/28/10; Includes global announced acquisitions in the specified range of transaction sizes; excludes minority investments, JVs etc.; includes all transactions
with target in Electronic Technology, Technology Services, and Communications sectors as defined by FactSet.

6. Convergence in the Purchase Funnel
Purchase Funnel Metric Example Companies
Impression CPM
Search CPC
Lead CPL
Data
Customer CPA
Sale Transaction

7. Going After the Elephant in the Room: TV
US Video & Display Advertising, 2009 ($MM)
• Online video is currently a
$0.5 fraction of total TV and
$6.7
online spending
• The holy grail is achieved
when digital video is part of
the television budget
• Much of the media
$73.2 optimization techniques
honed in online can be
applied to TV audiences
Television
Display & In-Page Video
In-Stream Video
• Shift in agency dynamic and
marketer mindset is key
Notes:
Source: VSS Communications, August 2009; eMarketer, December 2009.

8. Achieving the Holy Grail: Solving for Attribution
TELEVISION Several links in the attribution chain are missing:
– Online to online (the last click phenomenon)
– Online to offline
– Offline to online
Technology is improving data collection and analysis
DIGITAL which will allow for the discovery of “digital footprints”
Once attribution is achieved, there is no reason all media
cannot be optimized
Already, several interesting technologies have been
RETAIL deployed:
– TV set top box measurement
– Mobile location-based services

9. Rethinking the Market Opportunity
Forecasts show the interactive channel growing to $50+
billion in 5 years
– Represents an linear, evolutionary approach
– The challenge is to think revolution, not evolution
– How does interactive get to a $100 billion marketplace?
– Think new definition for “interactive” to go beyond online
• Digitally-addressable video (aka TV)
• Offline commerce enablement
• Mobile
Several reasons for a revolution
– Innovation (eg. media optimization, real time phenomenon)
– Simplification (less point solutions)
– Consolidation (entry of larger players)
– Attribution (eg. TV, offline retail)

10. Putting $100 Billion in Perspective
Healthcare reform for one year
War in Iraq and Afghanistan for a year
Cost of recent bank failures to the FDIC
A controlling stake in Google (at market)

11. GCA Savvian’s Digital Media Advisory Business
Terence Kawaja
Managing Director
+1 212.999.7082
tkawaja@gcasavvian.com
John Lambros
Managing Director
+1 212.999.7083
jlambros@gcasavvian.com
Steven Fletcher TOKYO • SAN FRANCISCO • CHICAGO • NEW YORK • LONDON
Managing Director
+1 415.318.3661
sfletcher@gcasavvian.com
Leading investment banking firm with over 200
professionals worldwide
Services include advice on mergers and acquisitions,
private capital finance and restructurings
Advised on over $60 billion in transactions since 2006
Advisor to media companies new and old