VEM Global Executive Briefing

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CONCEPT
Vertical Sites Network Analytics
Analytics

• Niche website that serves Technology platforms create Our tracking platform
your business niche partner networks with answers: What does the
• Timely, personalized thousands of niche sites that data mean?
content about your business specialize in your products
or services. • Complete data capture
• Centralized location • Call recording
for compelling marketing • Voice analytics
propositions

get vertical. go local.

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INTRODUCTION
The following is based on more than 10 years of research from companies including:

• Doubleclick
• Forrester
• eMarketer
• Interactive Advertising Bureau
• TravelNet Solutions, Inc., compiling, tracking and managing thousands
of phone calls and emails and millions of unique visitors each year.


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The 4 Reasons Businesses are Failing to
Market and Sell in the New Millennium


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THE FOUR DANGEROUS TRENDS
1. Companies are still devoting 40% to 90% of their spends on traditional media.
2. If spent online, companies are allocating 70% of their marketing dollars
towards major search engines.
3. Businesses struggle to broadcast messages and effectively manage online
marketing dollars across millions of different Websites.
4. Businesses are failing to acquire in-depth analytics & track results accurately.


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DANGEROUS TREND #1

Companies are still devoting 40% to 90%
of their spends on traditional media.

Consumer Media Industry Ad
Consumption Spend
8% Online
Untapped Audience
Gap between ad spend
and media consumption
38% Online
32% TV While consumers are spending
38% of their time online,
companies are still devoting
26% Print
just 8% of their general ad
(20% Newspaper, spend to online media.
6% Magazine)
37% TV

9% Radio

11% Print
25% Other
14% Radio

Source: Nielsen Media Research


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DANGEROUS TREND #1 - FACTS AND FIGURES

U.S. ONLINE ADVERTISING SPENDING

$12.5 billion $42 billion
2005 2011

Source: eMarketer.com


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INTERNET USAGE BY CONSUMERS

64% of consumers have used online media – such as Websites,
microsites, mobile coupons or email - to purchase a brand for the first
time. No other media have affected sales and marketing so dramatically.

Source: Razorfish Digital Brand Experience Study, 2009


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THE BOOM - INTERNET USAGE

250

204.3
200
Households - Millions

171
150
Online customers
100

50 46.5

14.5
0
1995 2000 2004 2006

Source: eMarketer


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TV GROWTH VS. YOUTUBE GROWTH
It took TV 13 years to reach 50 million users.
It took YouTube 2 years to reach 137.5 million users.
140

120
Viewers - Millions

100

80
YouTube
60
TV
40

20

0
2 4 6 8 10 12 14
Years
Source: United Nations Cyberschoolbus


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ONLINE VIDEO CONSUMPTION IS EXPLODING

In November 2009, 170.6 million
U.S. residents watched almost 31
billion videos, an average of 182
videos per person.
Source: comScore

Hulu took big strides in November
2009, growing its number of unique
viewers from 22.5 million to 43.7
million, and its number of videos from
226.5 million to 924 million.
A quarterly analysis from Source: CIO.com
Anytime Anywhere Media
Measurement™ initiative – shows In 2007 MeFeedia tracked
considerable year over year 20,000+ video blogs; now it
growth in terms of time spent for tracks more than 110,000.
DVR (up 22.5%) and online video
(up 34.9%) in Q3 2009.
Source: Nielson Company


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WHERE ARE YOUR CUSTOMERS
CONSUMING THE MOST MEDIA? BE THERE.


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DANGEROUS TREND #1 - POSSIBLE SOLUTION

THE ULTIMATE IN RESPONSIVE, HIGH-
IMPACT ADVERTISING
No other medium lets you display your message in so many unique ways, and
allows you to change and adapt your messages almost instantly.

• Detailed listings
• Expanding banners
• Tile banners
• Cost-per-click


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DANGEROUS TREND #2

If spent online, companies are allocating
70% of their marketing dollars towards
major search engines.

Where are your customers spending their time?
Historical data commissioned by :

User’s online activity:
typing in search queries

personalized niche websites/portals


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NICHE MEDIA

2x as many consumers view content on niche sites

4x as much time interacting with niche site advertising

Engaged Higher Ad Great ROI
Users Response Rate

Mass Media
Mass Media Niche Media

Source: Google


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NICHE VS. INDIVIDUAL BUSINESS
Research shows consumers want choice and options, not just one brand.
Shopping all your options, do you click just one brand, “Samsung,” or do you
click into Best Buy to compare all TV’s?


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NICHE VS. INDIVIDUAL BUSINESS
Research shows consumers want choice and options, not just one resort. Are
you going to buy or click in to see just one water park in Wisconsin or would
you click into ResortsandLodges.com® to see all water parks?


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GENERIC AD LISTING

Can I bring my pet?

Is there a spa? What’s the rate?

Is there a romance package?


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DETAILED LISTING PAGE


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INTERNET CHANNELS


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DANGEROUS TREND #3

Businesses struggle to broadcast messages and effectively manage
online marketing dollars across millions of different Websites.

Local, Regional, National, and Global

Niche Sites General Sites
Get Vertical & Local on a Global Site Get Vertical & Local on a Global Site

Yield Management

Get Vertical & Local on a Local Site

Get Vertical & Local on a Local Site


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“Five to 10 years ago, a business could work with 6 to 12 vendors to hit
its budget. Today, beyond traditional media, there are social communities,
blogs, search engines and literally millions of niche and general Websites
where consumers can find your products or services.”
– Ryan Bailey, President, VEM Global


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CONSTANT BARRAGE OF IRRELEVANT
ADVERTISING MESSAGES
David Shenk, in his book Data Smog, states that the average American
encountered 560 daily advertising messages in 1971.

Today, the average urban resident is exposed to 5,000 ad messages per day.
(New York Times Magazine 2.11.07)
5000

4000

3000
Number of Ads
2000 Consumed Per Day

1000

0
1971 2007


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THERE ARE MORE THAN 15 BILLION WEB PAGES

Total Websites worldwide: 156 million+
Total blogs on the Web: 200 million+
83% of the online population ages 13 to 54 use social media Websites.

The average small business (less than $100 million) typically
has fewer than five people on their marketing team.
Are you keeping up?

Sources: Netcraft Report, Technorati, Knowledge Networks


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ONLINE VIDEO IS GROWING
And It’s Working – Video is One of the Most Effective Media for Advertising.

Over 85% of users are downloading or streaming video in 2010 – nearly
a 25% increase in the last five years.

US Online Video Viewers As a Percent of
Internet Users, 2006-2011

2006 62.8%
2007 72.0% Users click on video ads
2008 80.0% about 5 times as often
2009 84.2% as they do on image ads.
Source: Klipmart, a company of DoubleClick
2010 85.4%
2011 86.6%
Note: ages 3+; online video viewer defined as an individual who downloads
or streams video (content or advertising) at least once a month
Source: eMarketer, August, 2007


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NETWORKS


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NETWORK EXAMPLES:

VIDEO NETWORK EXAMPLES:


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EXCLUSIVE VIDEO NETWORK
We blast your video to millions of viewers globally to ensure potential guests
know your true experience. Here are a few of our established partners:
TripAdvisor.com,YouTube, Google Video, MSN Video, yahoo! Video, your web site


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TELEVISION REACH THROUGH ONLINE PLATFORM
1. Ability to measure your ads effectiveness with real-time analytics
2. Reach your target audience on premium inventory
3. Easy and affordable
• Take advantage of great media.
• Access inventory across a rapidly-growing
list of online, cable and major network
TV channels.
• Discover relevant programming to reach
your target.
• Use keyword and program targeting to run
ads on the shows that work best for you.


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DANGEROUS TREND #4

Businesses are failing to acquire in-depth
analytics & track results accurately.

PLANNING Evaluation has never been more
important in the planning process.

Yet businesses are basing important
EVALUATION planning decisions on incomplete,
EXECUTION misleading or false data from outdated
tracking sources.


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EVALUATION
How are you Tracking and Analyzing your Online Marketing?
MarketingExperiments.com, an online marketing research outfit, reported that “as much
as 29.5% of the clicks” in three experimental PPC campaigns on Google were
fraudulent. An estimated 17.1% of marketing dollars were lost in click fraud in Q4 - 2008.
7000
6279
6000
Dollars - Millions

5000

4000
Marketing Dollars
3000
Lost in Click Fraud
2000

1000 800
443
294
0
2001 2003 2005 2008


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USE OF TRACKING TOOLS
While 42% of local online searchers respond to a business by
phone, only 5% of businesses use call tracking in their analytics.

50

40

30
Percent

20

10

0
Responses by Phone Call Tracking
Sources: TMPDM/comScore study, BIA/Kelsey study, ClickZ, 1.14.10


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GOOGLE ANALYTICS
Google Analytics tools allow us to show detailed revenue figures including number
of transactions, number of purchased products and much more.

Conversion Rate
Visitors Profile
Avg. Order Value
Traffic Sources
Top Revenue Sources


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UNIQUE SOURCE CODE TRACKING

propertyID=3067#ralmember


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PHONALYTICS DASHBOARD

Connectivity
lost & repeat calls

Quick comparison
of call performance


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FACTS
Founded in 1998, ResortsandLodges.com® was one of the first major leisure travel
guides established on the Internet. Today, it is the most comprehensive online
resource for resort and lodge vacations worldwide, serving more than ten million
leisure, group and corporate travelers each year. The site’s loyal travel-minded
community spans 65 countries around the world, with the United States, Canada,
Europe and Asia leading the list. Travelers have direct access to original content,
colorful photography and high-quality video for thousands of leisure properties of
all type and sizes.

• We market over 21,000 Resort and Vacation Lodging Properties Globally
• Over 2,000 Reservation Phone Calls Generated Per Day
- average phone call = $700
- $42,000,000 In Phone Reservation Inuiries Per Month
• Over 680 Group RFP Per Day
- average group = $5,500
- $112,000,000 In Group RFP Per Month


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DOLLARS SPENT ONLINE FOR LEISURE TRAVEL

79 billion 146 billion
2006 2010


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INTERNET USAGE FOR LEISURE TRAVEL

8 out of 10 people taking vacations this year
will research their trips online


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A SNAPSHOT OF OUR CLIENT PORTFOLIO


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DEMOGRAPHIC HIGHLIGHTS

ResortsandLodges.com users

Total Audience:
10,500,000 million
unique visitors annually

Median Age:
42 years

Median Household Income:
$77,175

37% Male 63% Female

Statistics courtesy of Hitwise and audited by Price Waterhouse Coopers


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80%
76%
70%
67%
60%
61%
50%

46%
40%
41%
30%

20%

10%

0
College Professional/ Married 1+ Children Homeowner
Graduate Managerial in Household

Statistics courtesy of Hitwise and audited by Price Waterhouse Coopers


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TELEVISION NETWORK
We publish partners, compelling offers and last minute travel deals through
television commercials with affordability and a tremendous reach.


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RESORTSANDLODGES.COM®

Comprehensive resort
directory offers searches
by map, location and
resort name.

Featured Platinum and Gold
listings rotate on Worldwide,
Nation and State pages.

Top 10 lists and professionally-
produced destination videos
are easily accessible from
the home page.


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DYNAMIC AND CONTEXTUAL PUBLISHING
OPPORTUNITIES WITH RESORTSANDLODGES.COM®
Banner ads
positioned on State
and Region pages.
Text ads positioned
on State, Region, and
local City pages.

Platinum contextual ad
listing with guaranteed
placement.
Opt in positions available
for compare flight/ car/
lodging widget.


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TEXT ADS AND VIDEO PROMOTION
Text ads and video promotion across 1,000’s of pages and relevant Travel Guides

Best rates text ads on
1,000’s of property
landing pages.

Hi-def destination
video promotion.


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TOP 10 AD PLACEMENT

Additional placement
and articles property
specific to the top
10’s by region.

Contextual ad placement
best deals & regional travel
deals on article pages.


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INCREDIDEALS™
incrediDEALS™ can be broadcast across comprehensive partner ad networks
and through weekly or monthly email blasts.

Text links from Region
pages lead to a custom
landing page.

Visitors can call toll-free
tracking number.

Visitors can click through
direct to resort website.


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VACATION PACKAGES
Comprehensive directory includes rotating Featured Vacation Packages on
Worldwide, Nation and State pages.

Viewers can inquire by
email about packages
Viewers click directly to resort and availability.
home or packages pages. Toll-free tracking number allows
viewers to call property direct.


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TRAVEL GUIDE

Regional “Stay Here” banners
highlight premiere properties.

Property text ads appear within
relevant content about the region.


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DYNAMIC AND CONTEXTUAL E-MAIL
MARKETING SPONSORSHIPS


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NETWORK

Message is broadcast – and
tracked –through thousands of
global and niche sites dedicated
to resort & lodge travel deals.


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ANALYTICS


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TRACKING
Impressions, web site visits, email inquiries, and phone calls for transient & group business.

32868 2152 22 112


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CALL RECORDING
Records calls in mp3 format, allowing users to listen to the content of each call.

Oct 2, 2008 8:39:39 570.489.8586
Unreviewed
0:59 Dallas, PA


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DYNAMICALLY CHANGING PHONE NUMBERS
Each online tracking number automatically transfers to your site from your
advertisements for complete data on call lead generation.
800 Tracking Technology & Dynamic 800 Technology Example
(Notice the 866 number)


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Notice the same 866 ResortsandLodges.com® tracking number


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CASE STUDIES


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Myrtle Beach Hotels
gained $1,363,880 in
revenue, an ROI of 9.4 to
1, during a one-year VEM
Global campaign.


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Targeted revenue opportunity
for Horseshoe Bay Resort
was $250,000; the VEM Global
campaign generated 3.5 times
that much at $891,000.


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In one month, the VEM Global
campaign for West Virginia’s
legendary Greenbrier resort
generated $463,160 in revenue
opportunity – an ROI of 24:1.


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Nickelodeon Family Suites
gained $298,455 in revenue
opportunity – nearly 3.5
times the projected target.


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For Flying L Guest Ranch,
VEM Global projected
revenue opportunity of
$37,500. The result was
$339,405 – more than 9
times the projection.


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The VEM Global campaign
for Colucci Log Cabins
generated $320,150, or 8
times the projected $40,000.


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FACTS
HotelsorMotels.com is dedicated to the hotel and motel property verticals
within the travel and hospitality industries.

It reaches a community of group, business and leisure travelers that spans 65
countries around the world, with the United States, Canada, Europe and Asia
leading the list.

• Access to more than 50 million viewers per month on the partner network.


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HOTELSORMOTELS.COM

Comprehensive hotel
and motel directory
offers searches by map,
location and resort name.

Useful, informative Top 10
lists are easily accessible
from the home page.


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DYNAMIC AND CONTEXTUAL PUBLISHING
OPPORTUNITIES WITH HOTELSORMOTELS.COM

Banner ads
positioned on State
and Region pages.

placement.


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INCREDIDEALS™
incrediDEALS™ can be broadcast across comprehensive partner ad networks
and through weekly or monthly email blasts.

and City pages lead to
a custom landing page.

tracking number.

direct to hotel website.


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VACATION PACKAGES

Viewers click directly
to resort home or
packages pages. Toll-free tracking number allows
viewers to call property direct.


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Notice the same 866 tracking number


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For Saybrook Point Inn &
Spa,VEM Global projected
revenue opportunity of
$50,000. The result was
$170,588 – more than 3
times the projection.


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FACTS
MoreContractors.com is dedicated to providing contracting services to
consumers who are researching home and lifestyle improvement projects online.

MoreContractors.com is a site of VEM Global™, which creates and acquires
vertical websites, maintains a network of thousands of global and niche sites and
owns and resells the latest Web and phone tracking technology. Our flagship site
alone generates:

• More than ten million unique visitors each year
• Over 60 million page views per year
• Direct access to over 17,000 clients worldwide.

more information. more choices. more contractors.


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MoreContractors.com serves homeowners and renters primarily consisting of
do-it-for-me customers, as well as others buying for personal and family use.

MoreContractors.com users are:

• Midwestern - among the highest homeownership rates in the U.S.
• European American - highest ownership rate of all nationalities
• Most likely between ages of 55-64
• Likely to be married couple families


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MORECONTRACTORS.COM

Comprehensive contractor
directory allows searches
by map, location and
contractor name.

Featured Contractors
highlight individual businesses
on the home page.

Useful, informative Top
10 lists present the best
contractors by city.


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LISTING PAGE

Banner ads
positioned on State
and Region pages.

placement.


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LANDING PAGE

Hi-def contractor video
Separate listings by promotion.
contractor type.

Lists of services offered,
cities served, products
used and affiliations.


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MEMBER CENTER
Users can save favorite contractors, create and add projects, and submit
quote requests.

Communication log
lets users communicate
directly with chosen
contractors.


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CONTRACTOR SPECIALS

and City pages lead to
a custom landing page.

tracking number.

direct to the contractor
website.


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TOP 10 AD PLACEMENT

Additional placement
and articles specific to
the top 10’s by region.


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NETWORK

Message is broadcast – and
tracked - through thousands of
global and niche sites dedicated
to contractors.


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TRACKING
Impressions, website visits, email inquiries, and phone calls for residential
contractor business.

32868 2152 22 112


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Notice the same 866 tracking number

866.525.8305


VEM Global Executive Briefing

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