With much of the activity focused on daily deals, several companies led the way in acquisitions: Groupon, Google, eBay and LivingSocial. This presentation provides a view of the local commerce ecosystem and details on the 186 transactions in 2011.

1. MERGERS &
ACQUISITIONS
ACTIVITY IN LOCAL
March 2012
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2. KEY TAKEAWAYS
LOCAL MARKETING AND COMMERCE ARE IN
THE MIDST OF A MAJOR UPHEAVAL DRIVEN BY:
INTERNET-INFORMED & CONNECTED CONSUMERS
MOBILE DEVICES
LOCATION AWARENESS
INTENSIVE DATA ANALYSIS
BIA/KELSEY PROJECTS LOCAL ONLINE
ADVERTISING WILL REPRESENT $43 BILLION IN
SPEND BY 2015, UP 65% FROM TODAY
STRATEGIC M&A IS VERY ACTIVE, WITH 186
ANNOUNCED TRANSACTIONS IN 2011, UP 40%
FROM 2010
GROUPON, GOOGLE, LIVINGSOCIAL AND EBAY
ARE THE LEADING ACQUIRERS
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3. WHAT IS LOCAL ONLINE MARKETING ?
DIGITAL MEDIA ARE INCREASINGLY ABLE TO
FACILITATE INTERACTION AND COMMERCE
BETWEEN CONSUMERS AND MERCHANTS
This includes: One-store merchants
Local service providers
National chain retailers
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4. THE FUNDAMENTALS OF LOCAL COMMERCE
ATTRACT
CUSTOMER
LOCAL
MERCHANT
ENCOURAGE SELL
REPEAT CUSTOMER
PRODUCTS &
SERVICES
4

5. LOCAL COMMERCE WITH COMPLEXITY
MARKETING EFFORTS
Advertising
Promotion
Create Social Signals
ATTRACT
CUSTOMER
LOCAL
MERCHANT
ENCOURAGE SELL
REPEAT CUSTOMER
PRODUCTS &
SERVICES
CUSTOMER RELATIONSHIP HELP CUSTOMERS LEARN
MANAGEMENT Reviews
Loyalty Programs
Price & Availability
Customer Support
In-Store Assisted Selling
Clienting Software
In-Store Navigation
ENCOURAGE & MANAGE SOCIAL
SIGNALS Network Engagement
Social CATALYZE PURCHASES
Encourage Sharing Purchases Distributed Store Platform
Encourage Reviews SUGGEST ADDITIONAL PURCHASES
Encourage Referrals Recommendations
In-Store Assisted Selling
HELP CUSTOMERS PAY
Payment Infrastructure
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6. IMPORTANT LOCAL PLAYERS TODAY
ATTRACT
CUSTOMER
LOCAL
MERCHANT
ENCOURAGE SELL
REPEAT CUSTOMER
PRODUCTS &
SERVICES
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7. STRATEGIC MOVES ARE HAPPENING
LOCAL COMMERCE M&A ACTIVITY LEVEL
57 55
NUMBER OF TRANSACTIONS PER QUARTER
50
41
40
36
34
24
23
2010 2011 2012 TO
DATE (a)
NUMBER OF UNIQUE BUYERS PER QUARTER
21 37 32 30 22 47 46 48 37
Note: a) Through March 8, 2012
Source: Architect Partners, Capital IQ and Public Information. Local commerce M&A is defined to Include target
companies within local marketing and commerce such as local daily deals, coupons, local search, directory, local
ad targeting, digital payment infrastructure and online local commerce. Excludes non-local flash sales
companies.
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8. STRATEGIC MOVES ARE HAPPENING
Ten Most Active Local Acquirers 2010 - 2012 YTD (a)
Prior to acquisition
by Gilt City
Note: a) Through March 8, 2012
Source: Architect Partners, Capital IQ and Public Information
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9. RECENT MARQUEE DEALS
9

10. PUBLIC LOCAL-ORIENTED COMPANIES
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11. Prepared by: For:
http://www.architectpartners.com