THE AD SPEND GROWTH

20% 15% 10%

DIGITAL AD SPEND GROWTH1

15% 11%

PREMISE AD SPEND SHOULD ACCELERATE ITS SHIFT FROM TRADITIONAL TO DIGITAL MEDIA. CURRENT SITUATION SINCE 2008, DIGITAL AD SPEND HAS BEEN OUTPACING TRADITIONAL AD SPEND. AD SPEND IS CONTINUOUSLY MOVING TOWARD DIGITAL MEDIA, ALIGNING WITH WHERE PEOPLE ARE INCREASINGLY SPENDING TIME. CONCLUSION THE FAST-GROWING DIGITAL AD SPEND WILL SUBSTANTIALLY CLOSE THE $24 BILLION GAP2 IN THE NEXT FEW YEARS.

5% 0% -5% -10% -15% -20% -17% -8%

TRADITIONAL AD SPEND GROWTH1

CLOSING THE $24 BILLION2 AD SPEND GAP

2010 -2%

2008

-3% 2009

Sources: 1) Magna Research, Advertising Forecast, 2010; IAB Advertising Revenue Report, 2005-2011 2) Architect Partners Digital Ad Spend Gap, http://architectpartners.com/digital-adspend-gap/, August 4th 2011

SOURCE DATA: ADVERTISING REVENUE GAP

REVENUE BY AD FORMATS DIGITAL AD SPEND Search Display-Related: Video Banner Rich Media Sponsorship Total Display-Related Classifieds and Directories Lead Generation Email TOTAL DIGITAL COMPONENT
(a)

2006

YEAR ENDED 2007 2008 (Growth in %) 30% 21% 39% 28% 32% 9% 21% 25% 26% -2% 0% 20% 9% -1% -39% 8% -4% 6% -4% 11% -8% -6%

2009

2010

THREE MONTHS ENDED Q1 2011

32% 40% 19% -21% 26% 43% 74% 35% 35% 2% 4%

1% 4% -8% -1% 4% -29% -14% -28% -3% -17% -15%

12% 23% 2% 87% 24% 15% -8% -33% 15% -2% 0% 23%

NON-DIGITAL AD SPEND TOTAL AD SPEND (b) Sources: a) IAB Internet Advertising Revenue Report, 2005-2011 b) Magna Research, Advertising Forecast, 2010