Peter Krasilovsky's BOLO 2010 presentation

1. Peter Krasilovsky VP and Program Director BOLO Presentation, Scottsdale October 18, 2010 Online and Mobile Opportunities in Local

3. Some of BIA/Kelsey’s 100+ Clients

11. Traditional Media Still Dominates Local Ad Spending 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

12. US: 2008 Interactive Ad Market $29.18B Source: Proprietary research by The Kelsey Group, mid-2007. Sample: 1,200 SMB advertisers in 4 major US MSAs). Methodology: Telephone survey. Cosponsor: ConStat. Turn Around Time is a Key Driver of Segments for SMBs; National & Aggregators Buy Performance & Identity

13. US: 2013 Interactive Ad Market $58.57B (CAGR 15%) Source: Kelsey Group Turn Around Time is a Key Driver of Segments for SMBs; National & Aggregators Buy Performance & Identity

14. *Base: LCM respondents that have a “web site or homepage”. Source: BIA/Kelsey estimates based on LCM data, Estimates are sensitive to assumptions. Local Advertiser Spending Widely Varies Bracket Very Low Low Medium High Range of Annual Spend $0 - $1,500 $1,500 - $5,000 $5,000 - $19,000 $19,000+ Av. Annual Spend on Adv. (Monthly Spend) $410 ($34) $2,516 ($210) $8,436 ($703) $25,564 ($2,130) Av. Annual Spend on Website* $911 $628 $2,670 $6,117 Percent of SMBs (by count) 61% 16% 17% 5% Percent of Total Ad Spend 7% 12% 42% 39%

15. High Spenders account for almost as much total spending as Medium Spenders. Each of these brackets far exceeds total spending accounted for by the much more numerous Low and Very Low spenders. High Spenders Account for a Large Portion of Ad Spending Source: Kelsey Group estimates based on LCM XI data, Nov. 2007. Estimates are sensitive to assumptions. Share of Total Ad Spending

16. Online Makes up 22% of SMB Spending Source: Local Commerce Monitor Wave XIII August 2009; Wave XII August 2008. (Sample for each Super-Vertical approximately 300.) Methodology: Online. Co-sponsor: ConStat.

18. SMBs: Influences on Media Buying Decisions Source: Local Commerce Monitor Wave XII August 2008. (Sample: 299). Methodology: Online. Co-sponsor: ConStat.

20. Mobile Local Media Increasingly Important, Too US$ Billions Note: Numbers are rounded. $130.6 $133.3 $133.2 $137.3 $140.2 $145.2 $156.3

24. Local’s Share of Mobile Search Volume Local Local Non-Local Non-Local

25. 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.

27. Come to Interactive Local Media:10! Questions and comments: Peter Krasilovsky | pkrasilovsky@kelseygroup.com | 760.918.0450