Building an Online Strategy

Matt Thornton, Technical Product Manager Alfredo Tan, Senior Director, Strategic Partnerships

2

Some of the Common Challenges?

•Who should we be targeting? What is the market segment that can show the greatest ROI?

•Building an audience and generating traffic with a limited marketing budget.

•Using new technologies, such as mobile, to drive awareness and interest in the business?

•Now that you’ve got the traffic, how can you monetize it?

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Canada: World Leader in Online Penetration & Engagement.

Source: comScore Media Metrix Multi Country July 2008Source: CIA World Fackbook July 2008 Estimates

Onl

ine

Pene

trat

ion

%

Tota

l Uni

que

Visi

tors

(000

s)

65%

0

10

20

30

40

50

60

70

Canada Sweden UnitedKingdom

UnitedStates

France Japan Germany Italy Russia Brazil China Mexico India0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Total 15+ Population

Canadians are also the most engaged online at 45 hours / visitor per month. The U.S. is second at 31.5 hours

Canadians are also the most engaged online at 45 hours / visitor per month. The U.S. is second at 31.5 hours

4

The ad spend of TV and online is very different although consumption is only 17% different

2008 Ad Spending vs Median Weekly Time Spent on Each Medium

1 1

3

12

10

$42

$14$19

$77

$24

0

2

4

6

8

10

12

14

Newspapers Magazines Radio TV Online$0

$10

$20

$30

$40

$50

$60

$70

$80

$90Hours Spent per Week2008 Ad Spend

Source: Jupiter Research ‘ Media Consumption Patterns” Oct. 25, 2008

2008

U.S

. Ad

spen

ding

(Bill

ions

)

Med

ian

Num

ber o

f Wee

kly

Hou

rs S

pent

with

Med

ia

5

*Source: MediaPost News “Online Will Continue to Expand Amid ’09 Global Ad Recession” December 8, 2008

2009 Online Ad spend according to the experts………

10% increase in online ad spend in 2009 -Group M

• 18% increase in online ad spend 2009 - ZenithOptimedia

• 18% increase in online ad spend 2009 -Interpublic

• 9% increase in online ad spend 2009 - eMarketer

*2009 online ad expenditures:

Other online predictions:“The present economic pressures will forever change how media is planned and measured. It will also change the media mix itself” ** Geoff Ramsey CEO eMarketer

“Mobile is poised for a breakthrough year in 2009 … it will grow between 300% and 500% worldwide this year” *** Duncan Stewart Deloitte Consulting Toronto

**Source: eMarketer “Seven Predictions for 2009” January 5, 2009 & Marketing Magazine “Print in Peril” January 21, 2009***Source: Marketing Magazine “Print in Peril” January 21, 2009

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Selecting the Audience you want to target.

• Who should you be focusing the content of your business towards.

• How can you make the business attractive to the advertising community.

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Boomers 45 to 64Reach 70%Property UU (000)

Autos 227 Finance 741Lifestyle 566News 1,456Travel 346Weather 172

Yahoo! Builds Audience to Match the Advertisers Targets

CHOs 25 to 54(Chief Household Officers)Reach 75%

Property UU (000)

Games 402Music 475News 1,198OMG! 75Travel 359Lifestyle 517

MACHOs 18 to 34(Males)Reach 73%

Property UU (000)

Answers 1,088News 597Sports 351Tech 82Shopping 163Movies 160

comScore Media Metrix All Locations Demo Persons 45-64, Q4 2008

comScore Media Metrix All Locations Demo F25-54, Q4 2008

comScore Media Metrix All Locations Demo M18-34, Q4 2008

BIG $PENDER$

Yahoo! Canada Proprietary and Confidential. ©2007 All Rights Reserved

250236

102105

Finding the Big Spender Audience

0

200

400

600

800

1000

1200

1400

1600

AOL Canoe MSN Yahoo!

1,448

949

540388

Number of Cdn females in (000)s, 15-19 yrs, who spent $100+ on shoes in the past 12 months and visited these sites

in the past month

Number of Cdn Boomers in (000)s, 45-64 yrs of age with a household income of $75+

and who visited the following sites in the past month

0

500

1000

1500

2000

2500

3000

3500

4000

AOL Canoe MSN Yahoo!

741

1,264

2,290

3,334Number of Cdns in (000)s, 18-64 yrs of

age who have stayed in a hotel/ motel in the past

year and visited the following sites in the past month

0

100

200

300

400

500

600

700

800

AOL Canoe MSN Yahoo!

153230

522

741

Number of Cdns in (000)s, 45 to 64 yrs of age who spend more than $500 on

credit card each month and visited the following sites in the past month

Retail Income

Travel Finance

0

50

100

150

200

250

300

AOL Canoe MSN Yahoo!0

500

1000

1500

2000

2500

3000

3500

4000

AOL Canoe MSN Yahoo!

3,529

2,425

1,497

932

Home

Number of Cdns in (000)s, 18-64 yrs of age, who have a mortgage and visited these

sites in the past month

Weighted Count: The total number of Canadian Adults 18 to 64 as surveyed by PMB and projected by Canadian CensusSource: PMB RTS Canadian Data

9

Selecting the Audience you want to target.

• Think about who the “Big Spenders” are in your audience.

• Create content that will engage the “Big Spenders” to develop loyalty with them.

Building Your Audience Search Marketing

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Canadian Internet User Behaviour

Source: 2008 Rogers/Ipsos-Reid report

0

10

20

30

40

50

60

70

80

90

Communicat ing Paying bills Photos Streaming

% 2007 % 2008

Shopping Downloading Music

Games Downloading TV/Movies

12

Average Cost per Customer Acquisition

Source: Piper Jaffray, “The New eCommerce Decade: The Age of Micro-Targeting.”, October 2006

13

Search Advertising: Reach Beyond the Big Three

Title(unit)

Building Your Audience Content Distribution

Yahoo! Canada News reaches a larger audience each day than the daily circulation of Canada’s Top Weekday Newspaper!

Big media magnet sites attract the large audiences with content aggregated from publishers of all sizes. Local niche content is in high demand.

Source: comScore Media Metrix, Canada Q1 2007 Source: Wikipedia “Newspaper Circulation by Country October 2007 to March 2008 and The Star.CA Media Kiit 2008

16YAHOO!

Data Distribution on Google• Google Maps is using multiple local players to

provide data.

• Links drive traffic back to the Local directory.

Audience Monetization

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There are estimated to be more than 250,000 publishers using Google AdSense alone. The long tail is very long, very crowded, and very poor.

• Ad networks now generate a whopping 27-cent average CPM, while premium publishers rake in a $20.17 average CPM through direct sales.

Canadians generate more than 90 million search queries a day and 55% of those searches are commercially viable search terms

Sources: Cybertrends Pulse of the Internet Report March 2006; comScore qSearch: US & Canada, September 2007

Mediapost “Ad Networks Are For Idiots -- And Here's The Math To Prove It”. April 9, 2009

Beyond the Ad Network Search Drives Monetization

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Every Search should include Search Advertising

Network Results

Organic Results

$16 - $25 eCPM

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Driving Sponsored Search with Breadcrumbs

Sponsored Search Results

Navigational Directory Breadcrumbs

• Yahoo Canada’s Shopping uses the breadcrumb navigation to drive highly relevant Search advertising results onto each page.

$11.50 eCPM

21

Guidelines for Success

• Target an Audience that has relevance to Advertisers, the Big Spenders.

• Building content to target the Big Spenders will enable distribution opportunities that can drive the traffic and awareness.

•Once you have the audience engaged creative advertising supported ideas will drive the monetization goals.