Jefferies & Company, Inc.

Jefferies 4th Annual Internet Conference

February 27, 2008

CONFIDENTIAL DRAFT

Member, SIPC

Ad Networks Panel: Reach vs. Niche - the Conversion Game

Panelists

Casper Seifert

CFO

David Liu

Managing Director Internet & Digital Media Group

John Ardis

VP, Corporate Strategy

Don Mathis

President

Art Shaw

CEO

Panelists are leaders in the online advertising network and related services industry

CPM, CPC, CPA International, Domestic Owned vs. represented

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Sector Snapshot

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What is the Online Advertising Opportunity?

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Global Online Advertising Revenue, 2005-2010E1 US Online Advertising Expenditure, 2005-2010E1

(1) Source: Jefferies Research, 2007.

($ billions) ($ billions)

22% CAGR

22% CAGR

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How Are Advertisers Spending Their Money?

(1) Source: IAB.

Advertising Spend Allocation – Q2 20071

Display Ads21%

Sponsorship3%

Classifieds17%Search

41%

Lead Generation

8%Rich Media

7%

Broadband Video

1%

E-mail2%

CPM45%

Performance50%

Hybrid5%

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Note: Public companies labeled black; private companies labeled blue.(1) Source: comScore Media Metrix, February 2008.* January 2007 statistics not available – Yahoo! Network growth from November 2007; Google Ad Network growth from July 2007; Specific Media growth from February 2007.

Who are the Advertising Network Players?

(millions)

Total Unique Visitors – January 20081

Role of Ad Networks Marketplace matching

advertisers and Website publishers

For Advertisers Outsourced placement

and distribution of ads Create, plan, optimize,

and report campaigns Broad reach and price

economies of scale

For Publishers Cost-effective means

of selling inventory Handle payment,

processing: “love those checks!”

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121.9131.8137.5142.3143.2

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Meet the Panelists

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John ArdisVP, Corporate Strategy

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Display/Rich Media/Video Advertising CPA Lead/Action Generation Programs Behavioral Marketing

Third-Party & Site-Side Ad Serving Email Management Advertising Management Software

Affiliate Marketing Services Managed Search Services CPA Media Programs

Integrated Interactive Services

ValueClick, Inc. is literally the only online marketing services provider who covers all online marketing channels in-house, in volume and with 10 years experience in doing so

Comparison Shopping Mobile Comparison Shopping Consumer Reviews

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AWARENESSAWARENESS LEADSLEADS SALESSALES CRMCRM

Email MarketingEmail Marketing

CPL/CPA ProgramsCPL/CPA Programs

Display/Rich Media/VideoDisplay/Rich Media/Video

Behavioral MarketingBehavioral Marketing

Technology (Ad Serving, Email Deployment)Technology (Ad Serving, Email Deployment)

Affiliate MarketingAffiliate Marketing

Search MarketingSearch Marketing

Covering All Client Objectives

Comparison ShoppingComparison Shopping

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• #1 independent online display ad network○ Reaching ~75% of U.S. Internet audience each month

• #1 lead-generation provider in U.S.○ Generating millions of qualified multi-channel leads each month

• #1 in Affiliate Marketing globally○ More than 45% of top 500 online retailers with 3rd-party affiliate

program – more than next two providers combined○ Billions in ecommerce transactions enabled each year

• #1 independent advertising technology provider

• #4 consumer comparison shopping properties

• 5,000+ clients worldwide

ValueClick by the Numbers

Don MathisPresident

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Don Mathis

President

February 2008

• Company snapshotCompany snapshot

– Strong revenues / highly profitableStrong revenues / highly profitable

– Reach = 75% of addressable InternetReach = 75% of addressable Internet

– Patent-Pending proprietary technology -- Display Ad Patent-Pending proprietary technology -- Display Ad Serving/Optimization/Targeting and SearchServing/Optimization/Targeting and Search

– 30,000+ Websites, search partners and email publishers30,000+ Websites, search partners and email publishers

• Core Revenue model: Cost Per Action / Direct ResponseCore Revenue model: Cost Per Action / Direct Response

– CPA is only pure “performance based” advertisingCPA is only pure “performance based” advertising

– Measurable ROIMeasurable ROI

– Strong “down market” characteristicsStrong “down market” characteristics

– Little advertiser risk / deep advertiser integrationLittle advertiser risk / deep advertiser integration

A Performance-based Ad NetworkA Performance-based Ad Network

CPA Performance Marketing: The Nexus of CPA Performance Marketing: The Nexus of AcquisitionAcquisition and and ConversionConversion

DiscoveryIdentify the Right Inventory /

Mine the Torso & Tail

Price Point Management

Pay the Right Price

Offer TestingCreate the Conversion

ConsumersPoint of Inspiration

ActionPoint of Fulfillment

AcquisitionAcquisition

• Technology-drivenTechnology-driven• Via the Publisher NetworkVia the Publisher Network• Via in-house search & Via in-house search & media buyingmedia buying

ConversionConversion

• Technology-enabledTechnology-enabled• Via in-house creative teamVia in-house creative team• Via rigorous testingVia rigorous testing• Mini-site developmentMini-site development

National AdvertisersSmall/Local Advertisers

Self Serve Self Serve (Ad Center)(Ad Center)

In-house Agency In-house Agency ServicesServices

Outside AdOutside AdAgenciesAgencies

DATA-LAYER: OPTIMIZATION & TARGETING

Behavioral / Contextual / Geographic / Demographic / Time of DayBehavioral / Contextual / Geographic / Demographic / Time of Day

AD TYPE:AD TYPE:

TECHNOLOGY:TECHNOLOGY:

““ENTRY POINT”:ENTRY POINT”:

IN-HOUSE OR IN-HOUSE OR NETWORK?:NETWORK?:

Text AdsText Ads Coupon AdsCoupon Ads

SearchSearch DisplayDisplay EmailEmail

Widget/AppsWidget/Apps VideoVideo

Casper SeifertCFO

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TradeDoubler generates over € 300 Million in revenue for our customers each

month

Independent market leading solutions within Affiliate,

Campaigns, Search and Technology

Over 12 Billion impressions and 7.6 Million leads

per month

Unrivalled experience with

presence in Europe and

Japan

TradeDoubler in brief

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The strategic assets

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An extensive pan-European network

of advertisers and publishers

Local presence in 18 European

Countries and Japan

Proven and flexibletechnolgy

platform supportingbusiness model

Superiorknowledge in

online marketing

Independent internetmarketing solutions

provider

Products in Search, Technology, Campaigns

and Affiliate. Covering +80% of

total online adspend

Our Business

”To redefine the marketing landscape."

” We create results

Through our knowledge

For advertisers, publishers and agencies

Globally

Through marketing technology"

Vision Mission

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Art ShawCEO

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Media Business Search

Ad Network

Media and Monetization Company

© 2008 Connexus Corporation. All Rights Reserved. The contents of this document are proprietary and confidential.

Domain portfolio

• 700,000+ generic domain names

• 99% organic, type-in traffic

• Optimize URL parsing, template, content

Search assistant software

• Keyword search through address bar

• Broad reach of consumer households

Media properties

• Original editorial content

• SEO-optimized

© 2008 Connexus Corporation. All Rights Reserved. The contents of this document are proprietary and confidential.

Powerful optimization and delivery – Demographics– Psychographics– Purchase behavior– Ad views, clicks and conversions

Supports all ad types, sizes, formats

© 2008 Connexus Corporation. All Rights Reserved. The contents of this document are proprietary and confidential.

Drag-and-drop form builder

Web development services

Conversion path optimization

Lead scrubbing, validation, de-duplication and real-time delivery

Male, 33, single HHI $50k, ZIP 10583Owns iPhoneLikes Coldplay, RadioheadLight drinkerFemale, 28, married w/ kidsHHI $160k, ZIP 60647Good creditConcerned about car safetyVisited DVD review site

Audience Profiles Form Builder Custom Form

Platform scales to any product, service or business, national or local

Local exchange

Advertisers bid for highly qualified, relevant leads

Consumers protected with full privacy

Publisher captures search revenue

© 2008 Connexus Corporation. All Rights Reserved. The contents of this document are proprietary and confidential.

Dave’s Top Five

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Dave’s Top Five

2002

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2006

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20071. If you could LONG or SHORT any stock to exploit the

next phase of advertising networks what would it be?

2. Weakening economy: near-term impact? Long-term impact?

3. Thoughts on these ad networks making news?

Newspapers (Gannett, Tribune, Hearst, NYTimes)

Cable (Comcast)

Female (Glam)

4. Microsoft acquires Yahoo, who wins? Who loses?

Google/DoubleClick?

5. What are the fundamental advantages and disadvantages of broad reach versus deep niche expertise?

Dave’s Top Five Back-up

1. Is Facebook worth $15BN?

2. Isn’t international where all the action will be in 2008?

3. Is conversion enhanced by combining both “reach” and “niche” capabilities?

4. Will all advertising go performance based?

5. What is the role of the vertical/niche ad networks?

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