VEM Global Executive Briefing

VEM Global

™

get vertical. go local.

TM

CONCEPT

Vertical Sites Analytics

• Niche website that serves your business niche• Timely, personalized content about your business• Centralized location for compelling marketing propositions

Technology platforms create partner networks with thousands of niche sites that specialize in your products or services.

Our tracking platform answers: What does the data mean?

• Complete data capture• Call recording• Voice analytics

Network Analytics

HotelsorMotels.comResortsandLodges.comExecutive Briefing

EXECUTIVE BRIEFING


TM

The following is based on more than 10 years of research from companies including:

• Doubleclick• Forrester• eMarketer• Interactive Advertising Bureau• TravelNet Solutions, Inc., compiling, tracking and managing thousands of phone calls and emails and millions of unique visitors each year.

INTRODUCTION


TM

The Reasons Businesses are Failing to Market and Sell in the New Millennium

4


TM

1. Companies are still devoting 40% to 90% of their spends on traditional media.

2. If spent online, companies are allocating 70% of their marketing dollars towards major search engines.

3. Businesses struggle to broadcast messages and effectively manage online marketing dollars across millions of different Websites.

4. Businesses are failing to acquire in-depth analytics & track results accurately.

THE FOUR DANGEROUS TRENDS


TM

Companies are still devoting 40% to 90% of their spends on traditional media.

DANGEROUS TREND #1

While consumers are spending 38% of their time online, companies are still devoting just 8% of their general ad spend to online media.

38% Online

Untapped AudienceGap between ad spend and media consumption

8% Online

32% TV

26% Print(20% Newspaper, 6% Magazine)

9% Radio

25% Other

37% TV

Consumer Media Consumption

Industry AdSpend

14% Radio

11% Print

Source: Nielsen Media Research


TM

U.S. ONLINE ADVERTISING SPENDING

$12.5 billion

2005

$42 billion

2011

Source: eMarketer.com

DANGEROUS TREND #1 - FACTS AND FIGURES


TM

INTERNET USAGE BY CONSUMERS

64% of consumers have used online media – such as Websites, microsites, mobile coupons or email - to purchase a brand for the first time. No other media have affected sales and marketing so dramatically.

Source: Razorfish Digital Brand Experience Study, 2009



TM

THE BOOM - INTERNET USAGE

0

50

100

150

200

250

1995 2000 2004 200614.5

46.5

171

204.3

Hou

seho

lds

- M

illio

ns

Online customers

Source: eMarketer


0

50

100

150

200

250

1995 2000 2004 200614.5

46.5

171

204.3

Hou

seho

lds

- M

illio

ns

Online customers


TM

TV GROWTH VS. YOUTUBE GROWTH

It took TV 13 years to reach 50 million users.

It took YouTube 2 years to reach users.


137.5 million

Source: United Nations Cyberschoolbus

0

20

40

60

80

100

120

140

2 4 6 8 10 12 14

Years

Vie

wer

s -

Mill

ions

YouTube

TV


TM

ONLINE VIDEO CONSUMPTION IS EXPLODING

In November 2009, 170.6 million U.S. residents watched almost 31 billion videos, an average of 182 videos per person.Source: comScore

Hulu took big strides in November 2009, growing its number of unique viewers from 22.5 million to 43.7 million, and its number of videos from 226.5 million to 924 million.Source: CIO.com

In 2007 MeFeedia tracked 20,000+ video blogs; now it tracks more than 110,000.

A quarterly analysis from Anytime Anywhere Media Measurement™ initiative – shows considerable year over year growth in terms of time spent for DVR (up 22.5%) and online video (up 34.9%) in Q3 2009.Source: Nielson Company



TM

WHERE ARE YOUR CUSTOMERS CONSUMING THE MOST MEDIA? BE THERE.



TM

THE ULTIMATE IN RESPONSIVE, HIGH-IMPACT ADVERTISING

DANGEROUS TREND #1 - POSSIBLE SOLUTION

No other medium lets you display your message in so many unique ways, and allows you to change and adapt your messages almost instantly.

• Detailed listings

• Expanding banners

• Tile banners

• Cost-per-click


TM

If spent online, companies are allocating 70% of their marketing dollars towards major search engines.

DANGEROUS TREND #2

User’s online activity:

typing in search queries

personalized niche websites/portals

Historical data commissioned by :

Where are your customers spending their time?


TM

EngagedUsers

Great ROIHigher AdResponse Rate

Mass Media Niche Media

as many consumers view content on niche sites

as much time interacting with niche site advertising

Source: Google

NICHE MEDIA

4x2x

Mass Media



TM

NICHE VS. INDIVIDUAL BUSINESS

Research shows consumers want choice and options, not just one brand. Shopping all your options, do you click just one brand, “Samsung,” or do you click into Best Buy to compare all TV’s?



TM

NICHE VS. INDIVIDUAL BUSINESS

Research shows consumers want choice and options, not just one resort. Are you going to buy or click in to see just one water park in Wisconsin or would you click into ResortsandLodges.com® to see all water parks?



TM

GENERIC AD LISTING

Can I bring my pet?

What’s the rate?Is there a spa?

Is there a romance package?



TM

DETAILED LISTING PAGE



TM

INTERNET CHANNELS



TM

Businesses struggle to broadcast messages and effectively manage online marketing dollars across millions of different Websites.

DANGEROUS TREND #3

Local, Regional, National, and Global

Yield Management

Get Vertical & Local on a Local Site

Get Vertical & Local on a Global Site

General Sites

Get Vertical & Local on a Local Site

Get Vertical & Local on a Global Site

Niche Sites


TM

“Five to 10 years ago, a business could work with 6 to 12 vendors to hit its budget. Today, beyond traditional media, there are social communities, blogs, search engines and literally millions of niche and general Websites where consumers can find your products or services.”– Ryan Bailey, President, VEM Global


TM

CONSTANT BARRAGE OF IRRELEVANT ADVERTISING MESSAGESDavid Shenk, in his book Data Smog, states that the average American encountered 560 daily advertising messages in 1971.

Today, the average urban resident is exposed to 5,000 ad messages per day.(New York Times Magazine 2.11.07)

1000

2000

3000

4000

5000

0

Number of Ads Consumed Per Day

1971 2007



TM

Total Websites worldwide:

Total blogs on the Web:

of the online population ages 13 to 54 use social media Websites.

156 million+

200 million+

The average small business (less than $100 million) typically has fewer than five people on their marketing team.

THERE ARE MORE THAN 15 BILLION WEB PAGES

Are you keeping up?

Sources: Netcraft Report, Technorati, Knowledge Networks


83%


TM

ONLINE VIDEO IS GROWING

And It’s Working – Video is One of the Most Effective Media for Advertising.

Over 85% of users are downloading or streaming video in 2010 – nearly a 25% increase in the last five years.

US Online Video Viewers As a Percent of Internet Users, 2006-2011

2006 62.8%

72.0%2007

2008

2009

2010

2011

80.0%

84.2%

85.4%

86.6%

Note: ages 3+; online video viewer defined as an individual who downloads or streams video (content or advertising) at least once a monthSource: eMarketer, August, 2007


Users click on video ads about as often as they do on image ads.

5 timesSource: Klipmart, a company of DoubleClick


TM

NETWORKS



TM

NETWORK EXAMPLES:


VIDEO NETWORK EXAMPLES:


TM

EXCLUSIVE VIDEO NETWORK

We blast your video to millions of viewers globally to ensure potential guests know your true experience. Here are a few of our established partners:TripAdvisor.com, YouTube, Google Video, MSN Video, yahoo! Video, your web site



TM

TELEVISION REACH THROUGH ONLINE PLATFORM

1. Ability to measure your ads effectiveness with real-time analytics2. Reach your target audience on premium inventory3. Easy and affordable

• Take advantage of great media.• Access inventory across a rapidly-growing list of online, cable and major network TV channels.• Discover relevant programming to reach your target.• Use keyword and program targeting to run ads on the shows that work best for you.



TM

Businesses are failing to acquire in-depth analytics & track results accurately.

Evaluation has never been more important in the planning process. Yet businesses are basing important planning decisions on incomplete, misleading or false data from outdated tracking sources.

DANGEROUS TREND #4

PLANNING

EXECUTIONEVALUATION


TM

0

1000

2000

3000

4000

5000

6000

7000

2001 2003 2005 2008

294 443 800

6279

Dol

lars

- M

illio

ns

Marketing Dollars Lost in Click Fraud

EVALUATION


How are you Tracking and Analyzing your Online Marketing?

MarketingExperiments.com, an online marketing research outfit, reported that “as much

as of the clicks” in three experimental PPC campaigns on Google were

fraudulent. An estimated of marketing dollars were lost in click fraud in Q4 - 2008.

29.5%17.1%


TM

USE OF TRACKING TOOLS

While of local online searchers respond to a business by

phone, only of businesses use call tracking in their analytics.


10

20

30

40

50

0Responses by Phone Call Tracking

Perc

ent

42%5%

Sources: TMPDM/comScore study, BIA/Kelsey study, ClickZ, 1.14.10


TM

GOOGLE ANALYTICS

Visitors Profile

Traffic Sources


Google Analytics tools allow us to show detailed revenue figures including number of transactions, number of purchased products and much more.

Conversion Rate

Avg. Order Value

Top Revenue Sources


TM

UNIQUE SOURCE CODE TRACKING

propertyID=3067#ralmember



TM

PHONALYTICS DASHBOARD


Connectivitylost & repeat calls

Quick comparisonof call performance

HotelsorMotels.comResortsandLodges.com


TM

FACTS

Founded in 1998, ResortsandLodges.com® was one of the first major leisure travel guides established on the Internet. Today, it is the most comprehensive online resource for resort and lodge vacations worldwide, serving more than ten million leisure, group and corporate travelers each year. The site’s loyal travel-minded community spans 65 countries around the world, with the United States, Canada, Europe and Asia leading the list. Travelers have direct access to original content, colorful photography and high-quality video for thousands of leisure properties of all type and sizes.

• We market over 21,000 Resort and Vacation Lodging Properties Globally• Over 2,000 Reservation Phone Calls Generated Per Day - average phone call = $700 - $42,000,000 In Phone Reservation Inuiries Per Month• Over 680 Group RFP Per Day - average group = $5,500 - $112,000,000 In Group RFP Per Month


TM

DOLLARS SPENT ONLINE FOR LEISURE TRAVEL

79 billion

2006

146 billion

2010


TM

INTERNET USAGE FOR LEISURE TRAVEL

8 out of 10 people taking vacations this year will research their trips online


TM

A SNAPSHOT OF OUR CLIENT PORTFOLIO


TM

DEMOGRAPHIC HIGHLIGHTS

Female63%Male37%

ResortsandLodges.com users

Total Audience:10,500,000 million unique visitors annually

Median Age:42 years

Median Household Income:$77,175

Statistics courtesy of Hitwise and audited by Price Waterhouse Coopers


TM


10%

20%

30%

40%

50%

60%

70%

0College

GraduateProfessional/Managerial

Married 1+ Children in Household

Homeowner

80%

61%

41%

67%

46%

76%

Statistics courtesy of Hitwise and audited by Price Waterhouse Coopers


TM

TELEVISION NETWORK

We publish partners, compelling offers and last minute travel deals through television commercials with affordability and a tremendous reach.


TM

RESORTSANDLODGES.COM®

Comprehensive resort directory offers searches by map, location and resort name.

Featured Platinum and Gold listings rotate on Worldwide, Nation and State pages.

Top 10 lists and professionally- produced destination videos are easily accessible from the home page.


TM

DYNAMIC AND CONTEXTUAL PUBLISHING OPPORTUNITIES WITH RESORTSANDLODGES.COM®

Opt in positions available for compare flight/ car/ lodging widget.

Text ads positioned on State, Region, and local City pages.

Platinum contextual ad listing with guaranteed placement.

Banner ads positioned on State and Region pages.


TM

TEXT ADS AND VIDEO PROMOTION

Text ads and video promotion across 1,000’s of pages and relevant Travel Guides

Hi-def destination video promotion.

Best rates text ads on 1,000’s of property landing pages.


TM

TOP 10 AD PLACEMENT

Additional placement and articles property specific to the top 10’s by region.

Contextual ad placement best deals & regional travel deals on article pages.


TM

Visitors can call toll-free tracking number.

Visitors can click through direct to resort website.

INCREDIDEALS™

incrediDEALS™ can be broadcast across comprehensive partner ad networks and through weekly or monthly email blasts.

Text links from Region pages lead to a custom landing page.


TM

Viewers click directly to resort home or packages pages. Toll-free tracking number allows

viewers to call property direct.

Viewers can inquire by email about packages and availability.

VACATION PACKAGES

Comprehensive directory includes rotating Featured Vacation Packages on Worldwide, Nation and State pages.


TM

TRAVEL GUIDE

Property text ads appear within relevant content about the region.

Regional “Stay Here” banners highlight premiere properties.


TM

DYNAMIC AND CONTEXTUAL E-MAIL MARKETING SPONSORSHIPS


TM

Message is broadcast – and tracked –through thousands of global and niche sites dedicated to resort & lodge travel deals.

NETWORK


TM

ANALYTICS


TM

TRACKING

Impressions, web site visits, email inquiries, and phone calls for transient & group business.

2152 22 11232868


TM

CALL RECORDING

Records calls in mp3 format, allowing users to listen to the content of each call.

0:59

Oct 2, 2008 8:39:39

Unreviewed570.489.8586

Dallas, PA


TM

DYNAMICALLY CHANGING PHONE NUMBERS

Each online tracking number automatically transfers to your site from your advertisements for complete data on call lead generation.

800 Tracking Technology & Dynamic 800 Technology Example (Notice the 866 number)


TM

Notice the same 866 ResortsandLodges.com® tracking number


TM

CASE STUDIES


TM

Myrtle Beach Hotels gained $1,363,880 in revenue, an ROI of 9.4 to 1, during a one-year VEM Global campaign.


TM

Targeted revenue opportunity for Horseshoe Bay Resort was $250,000; the VEM Global campaign generated 3.5 times that much at $891,000.


TM

In one month, the VEM Global campaign for West Virginia’s legendary Greenbrier resort generated $463,160 in revenue opportunity – an ROI of 24:1.


TM

Nickelodeon Family Suites gained $298,455 in revenue opportunity – nearly 3.5 times the projected target.


TM

For Flying L Guest Ranch, VEM Global projected revenue opportunity of $37,500. The result was $339,405 – more than 9 times the projection.


TM

The VEM Global campaign for Colucci Log Cabins generated $320,150, or 8 times the projected $40,000.

HotelsorMotels.com


TM

FACTS

HotelsorMotels.com is dedicated to the hotel and motel property verticals within the travel and hospitality industries.

It reaches a community of group, business and leisure travelers that spans 65 countries around the world, with the United States, Canada, Europe and Asia leading the list.

• Access to more than 50 million viewers per month on the partner network.


TM

DOLLARS SPENT ONLINE FOR LEISURE TRAVEL

79 billion

2006

146 billion

2010


TM

INTERNET USAGE FOR LEISURE TRAVEL

8 out of 10 people taking vacations this year will research their trips online


TM

Message is broadcast – and tracked –through thousands of global and niche sites dedicated to resort & lodge travel deals.

NETWORK


TM

HOTELSORMOTELS.COM

Comprehensive hotel and motel directory offers searches by map, location and resort name.

Useful, informative Top 10 lists are easily accessible from the home page.


TM

DYNAMIC AND CONTEXTUAL PUBLISHING OPPORTUNITIES WITH HOTELSORMOTELS.COM




TM

INCREDIDEALS™

incrediDEALS™ can be broadcast across comprehensive partner ad networks and through weekly or monthly email blasts.


Visitors can click through direct to hotel website.

Text links from Region and City pages lead to a custom landing page.


TM

VACATION PACKAGES

Viewers click directly to resort home or packages pages. Toll-free tracking number allows

viewers to call property direct.


TM

ANALYTICS


TM

TRACKING

Impressions, web site visits, email inquiries, and phone calls for transient & group business.

2152 22 11232868


TM

CALL RECORDING


0:59

Oct 2, 2008 8:39:39


Dallas, PA


TM





TM

Notice the same 866 tracking number


TM

CASE STUDIES


TM

Targeted revenue opportunity for Horseshoe Bay Resort was $250,000; the VEM Global campaign generated 3.5 times that much at $891,000.


TM

In one month, the VEM Global campaign for West Virginia’s legendary Greenbrier resort generated $463,160 in revenue opportunity – an ROI of 24:1.


TM

Nickelodeon Family Suites gained $298,455 in revenue opportunity – nearly 3.5 times the projected target.


TM

For Saybrook Point Inn & Spa, VEM Global projected revenue opportunity of $50,000. The result was $170,588 – more than 3 times the projection.


TM

FACTS

MoreContractors.com is dedicated to providing contracting services to consumers who are researching home and lifestyle improvement projects online.

MoreContractors.com is a site of VEM Global™, which creates and acquires vertical websites, maintains a network of thousands of global and niche sites and owns and resells the latest Web and phone tracking technology. Our flagship site alone generates:

• More than ten million unique visitors each year• Over 60 million page views per year• Direct access to over 17,000 clients worldwide.

more information. more choices. more contractors.



TM

MoreContractors.com serves homeowners and renters primarily consisting of do-it-for-me customers, as well as others buying for personal and family use.

MoreContractors.com users are:

• Midwestern - among the highest homeownership rates in the U.S.• European American - highest ownership rate of all nationalities• Most likely between ages of 55-64• Likely to be married couple families


TM

MORECONTRACTORS.COM

Comprehensive contractor directory allows searches by map, location and contractor name.

Useful, informative Top 10 lists present the best contractors by city.

Featured Contractors highlight individual businesses on the home page.


TM

LISTING PAGE




TM

LANDING PAGE

Separate listings by contractor type.

Lists of services offered, cities served, products used and affiliations.

Hi-def contractor video promotion.


TM

MEMBER CENTER

Users can save favorite contractors, create and add projects, and submit quote requests.

Communication log lets users communicate directly with chosen contractors.


TM

CONTRACTOR SPECIALS


Visitors can click through direct to the contractor website.

Text links from Region and City pages lead to a custom landing page.


TM

TOP 10 AD PLACEMENT

Additional placement and articles specific to the top 10’s by region.


TM

Message is broadcast – and tracked - through thousands of global and niche sites dedicated to contractors.

NETWORK


TM

ANALYTICS


TM

TRACKING

Impressions, website visits, email inquiries, and phone calls for residential contractor business.

2152 22 11232868


TM

CALL RECORDING


0:59

Oct 2, 2008 8:39:39


Dallas, PA


TM






TM

Notice the same 866 tracking number

866.525.8305

Documents

VEM Global Executive Briefing