1. Bobbi Loy-Luster VP – Client Services, BIA/Kelsey January 25, 2011 2011 UBL User Conference: Interactive Local Media Industry Overview

2. 2 BIA/Kelseys Suite of Services Continuous Advisory Services Valuation and Litigation Strategic Consulting Due Diligence Sales Training Data and Research Conference and Events Our Clients

3. 3 Publish Key Research and Forecasts

4. 4 Local Media and Advertising Spending About 55% of all ad spending is local. Local ad spend includes spending by SMBs, national advertisers, and regional advertisers making local buys. Source: National figures based on consensus of estimates from research groups including Myers, Wilkofsky, eMarketer, Barclays, Bernstein, Oppenheimer, UBS, VSS, Citi, Cowen, GroupM, MAGNA, ZenithOptimedia, Collins, Jefferies, BMO, Morgan Stanley and ThinkPanmure. US$ Billions

5. 5 Local Ad Market Currently Dominated by Traditional Media Digital revenues associated with traditional media (e.g., Web sites associated with local TV stations, local radio stations, newspapers and magazines) are included in the revenues for the traditional media. Revenues for Internet Yellow Pages that are associated with print Yellow Pages are included in the overall Yellow Pages media category. *ERPM = E-Mail, Reputation and Presence Management

6. 6 Steady Shift Toward Digital Media US$ Billions 2009-2014 CAGRs: Total Media CAGR 2.1% Traditional Media CAGR -0.9% Online/ Interactive Media CAGR 17.4% $130.6 $133.3$133.2 $137.3 $140.2 $145.2 $156.3 Note: Numbers are rounded. Source: BIA/Kelsey Estimates

7. 7 2008 – SMB Relationships Built on Channels That Deliver Perceived Audience Millions of SMB relationships Source: BIA/Kelsey Estimates

8. 8 2010: In 2 Years, SMB Relationships were Radically Transformed Source: BIA/Kelsey Estimates Millions of SMB relationships There has never been a ramp this fast…ever

9. 9 Last Year, 32% of SMBs Intended to Build a Page on a Social Network SMBs That Intend to Use a Page on a Social Site in Next 12 Months Overall average @ 32% Note: Scale begins at 10%. Source: Local Commerce Monitor Wave XIII August 2009 (Sample: 302). Methodology: Online. Cosponsor: ConStat.

10. 10 2010 - Use of Social Media is Intense Usage of various social media by SMBs is already intense. Nearly half of SMBs report having a Facebook page for their business – even more than use Email marketing. Sources: Local Commerce Monitor Wave 14. November 2010. Use of Social Media

11. 11 Membership in Social Networks is Exploding Multiple mentions allowed. Source: User View. Wave VII: February 2010 sample 1,002 Methodology: Online. Cosponsor: ConStat. Membership in Social Networks Continues to Explode Percent of Respondents

12. 12 Presence, Performance, Permanence Presence Listings Print Banners Search DOOH Door hangers Radio Cable TV Mobile TV Performance Clicks Calls Forms Store Visits Inquiries Ratings Reviews Permanence Online booking Customer reminders Customer updates Retention strategies Telephone training

13. 13 Named after the aviation slang term for the Himalayas, this exotic Japanese eatery at the Santa Monica Airport offers luscious sushi and beautifully presented innovative fare. ~ The Hump Restaurant Santa Monica, CA Why? Consider the Implications of the Social Net

14. 14 Case Study :~15 Years in Business; High reviews & Consistent Volume The Hump

15. 15 Case Study : On-line Conversations Spike on March 10 th

16. 16 Case Study: 10 Days Later…

17. 17 Courtesy 15 Mile & comScore Everyone launches Local Check-in Search and Social Get Local & Mobile Local tags Service Areas QR Codes

18. 18 Mobile Internet Access Has Increased The percentage of heavy Internet users continues to increase significantly. The overall mean number of Internet accesses per month, for all users, doubled to 20. Mean Number of Internet Accesses per Month, by all Users Source: Mobile Market View Wave III, October 2009, sample = 504; Wave II, October 2008, sample = 512; Wave I, September 2007; sample = 500. Methodology: Online. Cosponsor: ConStat.

19. 19 Mobile Commercial Searches in Past Six Months Searches for local products or services now exceed out-of- market searches by a wide margin. Out-of-market searches Local searches Source: Mobile Market View Wave III, October 2009, sample = 504; Wave II, October 2008, sample = 512; Wave I, September 2007; sample = 500. Methodology: Online. Cosponsor: ConStat.

20. Contact: Bobbi Loy-Luster VP – Client Services, BIA/Kelsey bloy@kelseygroup.com (704) 892-0296