Yahoo Behavioural Targeting Intelligent User Profiling Comes to

Yahoo! Behavioural Targeting Intelligent User Profiling Comes to the UK Richard Frankel 17 January 2007

Behavioural Targeting: A Brief History • 1999: Yahoo! starts content categorization • 2001: First BT product sold • 2005: 2. 0 Platform started • 2006: BT 2. 0 Ships in the US in May • 2006: International platform begun • Q 1 2007: First product offered in the UK • Onward: The rest of the world 2

Finance | Loans | Mortgage Yahoo! Behavioural Targeting Results from a recent client campaign on Yahoo! US Network +626. 0% Conv Lift 1, 900, 000 people looking for mortgage loans. Includes users anywhere on the Yahoo! Network who actively seek Mortgage Loans. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. +121. 9% CTR Lift Example search terms qualified for this target: Mortgages Home Loans Refinancing Ditech Example Yahoo! Pages visited: Financing section in Real Estate Mortgage Loans area in Finance Real Estate section in Yellow Pages 3 Prepared for Client name Date: March 2006 Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Conversion is the number of qualified leads from clicks over number of impressions served. Audience size represents the audience within this Behavioural interest category that has the highest propensity to engage with a brand or product and to click on an offer.

Autos Yahoo! Behavioural Targeting Results from a recent client campaign on Yahoo! US Network +35. 8% CTR Lift 3, 200, 000 people looking for cars. Includes users anywhere on the Yahoo! Network who have demonstrated active interest in Autos. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Category profile is the aggregate of the following subcategories: Sedan Truck SUV US Non US Price Range Coupe Convertible Sport Wagon Alternative Fuel Used 4 Prepared for Client name Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Audience size represents the audience within this Behavioural interest category that has the highest propensity to engage with a brand or product and to click on an offer. Date: March 2006

CPG | Beauty & Personal Care Yahoo! Behavioural Targeting Results from a recent client campaign on Yahoo! US Network +43. 2% CTR Lift 3, 200, 000 people looking for beauty care. Includes users anywhere on the Yahoo! Network who have demonstrated active interest in beauty products and services. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Users searched keywords such as: Makeup Lipstick Perfumes Shampoo Users visited pages such as: Makeup section in Shopping Fashion & Beauty in Geocities Women’s Fragrances section in Shopping 5 Prepared for Client name Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Audience size represents the audience within this Behavioural interest category that has the highest propensity to engage with a brand or product and to click on an offer. Date: March 2006

Behavioural Targeting Trends Growing Acceptance Across Advertising Industries 2004 2006 Finance Autos Retail FMCG Tech Entertainment Travel Finance Retail Pharma Tech Telco Travel 6

How does Yahoo! Behavioural Targeting work? Network + User Behaviours + Modeling 7

How it works – ‘DNA’ emerges from registration & behaviours Marketing Exec, Insurance Industry Male, age 37 Lives in the UK Clicked on a Jaguar ad Searched for GPS, DAB, Plasma TV Visits Yahoo! Finance daily 500 million users worldwide … each unique Added RSS feeds from the BBC and The Times Responds most to ads in Yahoo! News Looked for flights to Italy on Yahoo! Travel Frequent visits Yahoo! games 8

How it works – what behaviors go into the models? Relevant behaviors… Ads clicked Search queries Search clicks AUTOS / SEDAN Behavioural Interest Pageviews Sedan 9

How it works - Recency When the behaviour was done matters Heavier Weight to Recent Behaviors NOW 10

How it works - Activity level is also considered Relative intensity of behaviour helps distinguish user most likely to respond. 11

How it works - Network + interests + modeling Varying Product Purchase Cycles We analyzed predictive patterns for purchase cycles in each product category. 12

How it works - Network + interests + modeling Users to Matching Models We analyzed predictive patterns for purchase cycles in each product category. In each category, we built models to describe behaviour most likely to lead to an ad response. 13

How it works - Network + interests + modeling EXAMPLE PRODUCT CATEGORY Varying User Scores We analyzed predictive patterns for purchase cycles in each product category. In each category, we built models to describe behaviour most likely to lead to an ad response (i. e. click). We scored each Y! user for his fit with every category. Re-score daily Target your ads to users who get highest ‘relevance’ scores in the targeting categories you choose 14

Many major commercial categories … Finance Services Travel Tech FMCG Bank Accounts Credit Cards Investment Insurance Loans Real Estate Local Wireless Gas & Electric Europe Americas Air Lodging Rail Hardware Software Consumer Mobile Personal Care Entertainment Games Movies Television Gambling And more …. Autos Econ/Mid/Luxury Saloon/Coupe/SUV Retail Other Health Parenting Moving Apparel Gifts Home For even narrower targets, filter each Behavioural interest category with gender, demographic and other targeting solutions. 15

UK Case Studies 16

Finance | Bank Accounts Yahoo! Behavioral Targeting Results from a recent client campaign on Yahoo! UK & Ireland +86% CTR Lift 100. 000 people looking for Bank Accounts. Includes users anywhere on the Yahoo! Network who actively seek Bank Accounts. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Users searched keywords such as: Bank Account Savings Account Best Bank Account Providers Users visited pages such as: Banking Section in Yahoo! Finance Compare Banks function in Yahoo! Finance Banking Survey in Yahoo! Groups 17 Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Audience size represents the audience within this behavioral interest category that has the highest propensity to engage with a brand or product and to click on an offer. Date: Jan 2007

Cars Yahoo! Behavioral Targeting Results from a recent client campaign on Yahoo! UK & Ireland +30% CTR Lift 1. 226. 000 people looking for Cars. Includes users anywhere on the Yahoo! Network who have demonstrated active interest in Autos. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Users searched keywords such as: Used Car Renault Clio 2007 SUV BMW MINI Users visited pages such as: Yahoo! Cars Section Cars related groups in Yahoo! Groups Cars related news articles in Yahoo! News 18 Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Audience size represents the audience within this behavioral interest category that has the highest propensity to engage with a brand or product and to click on an offer. Date: Jan 2007

FMCG | Beauty & Personal Care Yahoo! Behavioral Targeting Results from a recent client campaign on Yahoo! UK & Ireland +53% CTR Lift 428. 000 people looking for Beauty Care. Includes users anywhere on the Yahoo! Network who have demonstrated active interest in beauty products and services. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Users searched keywords such as: Makeup Lipstick Perfumes Shampoo Users visited pages such as: Hair & Makeover section in Yahoo! Groups ‘What’s the best shampoo? ’ in Yahoo Answers! Women’s Fragrances section in Yahoo! Shopping 19 Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Audience size represents the audience within this behavioral interest category that has the highest propensity to engage with a brand or product and to click on an offer. Date: Jan 2007

How could Yahoo! Behavioural Targeting help drive your brands? 20

Thank-you for your time today. 21

Additional UK Case Studies 22

Telecommunications Yahoo! Behavioral Targeting Results from a recent client campaign on Yahoo! UK & Ireland +136% CTR Lift 4. 500. 000 people looking for Telco products & services. Includes users anywhere on the Yahoo! Network who actively research products and services related to Telecommunications. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Users searched keywords such as: Ring tone Sony Ericsson 700 i Mobile Deals Users visited pages such as: Yahoo! Mobiles on Yahoo! Shopping Mobile Phone in Yahoo! Groups 23 Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Audience size represents the audience within this behavioral interest category that has the highest propensity to engage with a brand or product and to click on an offer. Date: Jan 2007

Entertainment | Television Yahoo! Behavioral Targeting Results from a recent client campaign on Yahoo! UK & Ireland +54% CTR Lift 2. 000 people looking for television entertainment. Users searched keywords such as Includes users anywhere on the Yahoo! Network who actively research products and services related to Television Entertainment. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Desperate Housewives News Programme TV Listings Sports Users visited pages such as: Soap News in Yahoo! TV Gossip section TV Listings in Yahoo! TV Entertainment News in Yahoo! News 24 Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Audience size represents the audience within this behavioral interest category that has the highest propensity to engage with a brand or product and to click on an offer. Date: Jan 2007

U. S. Case Studies 25

Telecommunications | Cell & Wireless Services Yahoo! Behavioural Targeting Results from a recent client campaign on Yahoo! Network +475. 8% CTR Lift +291. 5% Conv Lift 2, 800, 000 people looking for cell & wireless services. Includes users anywhere on the Yahoo! Network who actively research products and services related to Cell & Wireless Services. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Example search terms qualified for this target: Ring Tones Cell Phones Cingular T-Mobile Example Yahoo! Pages visited: Yahoo! Mobile Wireless section in Yellow Pages Mobile Phones & Plans in Shopping 26 Prepared for Client name Date: March 2006 Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Conversion is the number of qualified leads from clicks over number of impressions served. Audience size represents the audience within this Behavioural interest category that has the highest propensity to engage with a brand or product and to click on an offer.

Finance | Insurance | Autos Yahoo! Behavioural Targeting Results from a recent client campaign on Yahoo! Network +376. 1% Conv Lift +73. 5% CTR Lift 1, 600, 000 people looking for car insurance. Includes users anywhere on the Yahoo! Network who actively seek Auto Insurance. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Example search terms qualified for this target: AAA Geico Progressive Auto Insurance Example Yahoo! Pages visited: Insurance section in Autos Auto Insurance area in Finance Auto Insurance section in Yellow Pages 27 Prepared for Client name Date: March 2006 Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Conversion is the number of qualified leads from clicks over number of impressions served. Audience size represents the audience within this Behavioural interest category that has the highest propensity to engage with a brand or product and to click on an offer.

Autos | Sedan Yahoo! Behavioural Targeting Results from a recent client campaign on Yahoo! Network +302. 9% CTR Lift 396, 000 people looking for sedans. Includes users anywhere on the Yahoo! Network who have demonstrated active interest in Sedan. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Users searched keywords such as: Ford Focus Alero Honda Accord Lexus Sedan Users visited pages such as: Nissan Maxima page in Groups Audi A 4 Make & Model page in Autos Honda Accord Kelley Blue Book Page in Autos 28 Prepared for Client name Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Audience size represents the audience within this Behavioural interest category that has the highest propensity to engage with a brand or product and to click on an offer. Date: March 2006

Technology | Consumer Electronics Yahoo! Behavioural Targeting Results from a recent client campaign on Yahoo! Network +164. 2% CTR Lift 4, 300, 000 people looking for consumer electronics. Includes users anywhere on the Yahoo! Network who actively research Consumer Electronics related products. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Example search terms qualified for this target: DVD Digital Cameras Best Buy i. Pod Example Yahoo! Pages visited: Yahoo! Mobile Consumer Electronics section in Shopping Mobile Phones in Clubs 29 Prepared for Client name Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Audience size represents the audience within this Behavioural interest category that has the highest propensity to engage with a brand or product and to click on an offer. Date: March 2006

Technology | Computer Hardware Yahoo! Behavioural Targeting Results from a recent client campaign on Yahoo! Network +64. 1% CTR Lift 3, 800, 000 people looking for computer hardware. Includes users anywhere on the Yahoo! Network who have demonstrated active interest in Computer Hardware. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. Example search terms qualified for this target: Computer Webcam Router Dell Example Yahoo! Pages visited: Computers in Shopping Semiconductors section in Message Boards Computer Hardware section in Clubs 30 Prepared for Client name Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Audience size represents the audience within this Behavioural interest category that has the highest propensity to engage with a brand or product and to click on an offer. Date: March 2006

Telecommunications Yahoo! Behavioural Targeting Results from a recent client campaign on Yahoo! Network +250. 1% CTR Lift 1, 100, 000 people looking for telco products & services. Includes users anywhere on the Yahoo! Network who actively research products and services related to Telecommunications. Interest is targeted through searches and clicks, relevant pages viewed and/or advertising clicked during the time horizon defined uniquely for this product category. +30. 4% Conv Lift Category profile is the aggregate of the following subcategories: Cable Cell & Wireless Services Internet Access Local Service Long Distance Satellite 31 Prepared for Client name Date: March 2006 Source: Campaign Click thru Rate lift is determined by Yahoo! Internal research. Conversion is the number of qualified leads from clicks over number of impressions served. Audience size represents the audience within this Behavioural interest category that has the highest propensity to engage with a brand or product and to click on an offer.