Page 1 Understanding the Consumer Buying Cycle The Role of Search Sara Stevens Director – Marketing Solutions comScore Networks, Inc. Drilling Down on Local: The Online-Offline Opportunity April 19 th, 2005

Page 2 comScore Research Study Summary & Objectives Improve search marketing performance by understanding: How patterns in overall search behavior provide insight into the buy cycle The role and relationship among the various types of terms (including trademark) during the buy cycle The role of search in driving sales – both online and offline Multiple Studies focused on better understanding search: Yahoo! Search Marketing Study: Tracking consumer behavior from initial search to conversion. Include offline connection for conversion. Performics/DoubleClick: Looking backwards from transaction to understand build-up to purchase.

Page 3 comScore Research Study Methodology: Represent Total Internet Search Search behavior for 10 specific products – aggregated to represent CE/C Time-aligned 3 months – tracked each searcher for 12 weeks All searches must be relevant to specific product in order to be tracked. Performics study additional details: Analysis across four categories – travel, apparel, sports & fitness, and consumer electronics Time-aligned from the online purchase and worked backwards for 3-months Header: Broad product terms, highest volume, e.g. Camera, Computer General: Broad product terms, less volume, e.g. Computer Memory, PDA Phone Specific: Detailed product queries often with manufacturer or model number, e.g. HP Notebook ZX 5000, Epson Printer Trademark: Merchant name present e.g. Circuit City, Best Buy, Dell, SonyStyle.com Local ties to Trademark terms (retailers and merchants).

Page 4 comScore Research comScore Methodology Global panel of more than 2 million consumers who have given comScore explicit permission to confidentially capture their online browsing and transaction behavior Proprietary technology collects all Internet activity including eCommerce and search activity Key advantages of our approach Fully passive approach Proper use of surveys with passive screening Data capture on discreet events eCommerce activity Search activity comScore Panelist comScore Servers World Wide Web

Page 5 comScore Research Multi-Channel Conversion An estimated 90% or more of conversion activity occurs offline – This dynamic speaks to an interesting play for local search comScore/Yahoo! Search Study - Total U.S. Consumer Electronic Searchers, Q Total Conversion – 25.2% (2.1% online & 23.1% offline)

Page 6 85% of all online search transactions are latent: 35% are post 30 days 18% are post 60 days comScore Research Search-to-Conversion Timing Online Latent Conversions have a huge impact on ROI, so marketing messages and effectiveness measurement is critical comScore/Yahoo! Search Study - Total U.S. Consumer Electronic Searchers, Q1 2004

Page 7 comScore/Performics Search Study - Total U.S. Q2/Q comScore Research Final Search to Conversion: Apparel Category Findings are consistent – 43% of buyers made their search at least one week prior and 72% at least 5 weeks prior to purchase.

Page 8 comScore Research Total Share of Searches: Full Buy Cycle Across both the total search and starting terms, broad terms dominate; challenging the long held belief that consumers start broad and end specific. Term Category Share of Start Share of Total Header18.3%14.0% General65.0%56.8% Specific13.6%11.7% Trademark3.2%17.5% Trademark Terms 17.5% Header Terms 14.0% General Terms 56.8% Specific Terms 11.7% comScore/Yahoo! Search Study - Total U.S. Consumer Electronic Searchers, Q1 2004

Page 9 Average Number of Searches Prior to Purchase Start Term Type *Includes converters and non-converters Avg. Product Searches Over 12-Week Cycle. Marketers have over 4 opportunities to communicate during the buy cycle. Among buyers, that opportunity increases dramatically to about 12 searches. comScore Research CE/C Buyers Based On Start Term: comScore/Yahoo! Search Study - Total U.S. Consumer Electronic Searchers, Q1 2004

Page 10 *Includes converters and non-converters All shoppers tend to refine within their start category. When they do move beyond their original term type, it’s generally to trademark. Trademark searchers are closest to the retailer. comScore Research Search Refinement Summary by Start Term comScore/Yahoo! Search Study - Total U.S. Consumer Electronic Searchers, Q Refinement Activity by Start Term Type 16% 37% 17% Refinement: Describes any search activity occurring after the initial term and related to the same product. 62%

Page 11 comScore Research Conclusions & Findings Search offers access to a fantastic target – 25% of all searchers in the study purchased, mostly offline (92%). Buy cycle is long, even for offline and local conversions, though local is closer to the transaction. 84% of all trademark conversions were influenced by broad terms during their first search. Linking standard search with Local. Holistic, multi-channel marketing analysis to best integrate the overall product/purchase search and research cycle with the local hook.