411 Monthly Performance Report

1. 411.ca Monthly Performance Report Nov. 16 – Dec. 16, 2011 Prepared by Digital Cement January 11, 2012 Prepared for 411.ca by Digital Cement | Confidential

2. Agenda • Executive Summary • SEM Conversion Summary • Review Period Conversion Summary • Testing • In-field A/B testing results and recommendation • Upcoming Tests • Sales Performance Summary • Weekly Sales • Sales by Campaign • ROI by Campaign • Reasons for Non-Sale • Appendix – Weekly SEM Slides Prepared for 411.ca by Digital Cement | Confidential

3. Executive Summary • Free Campaign performs at par with other campaigns for value of individual sale • High percentage of leads requesting call-back or more information • Large area of opportunity in “warm” leads being added to an effective lead nurturing program • We are getting to our target market ahead of the competition • Continue to refine existing campaigns for conversion cost towards $20 per acquisition • Continue to expand the size of qualified universe for search campaigns Prepared for 411.ca by Digital Cement | Confidential

4. SEM Conversion Summary Prepared for 411.ca by Digital Cement | Confidential

5. Total OVs – SEM delivering over 35% of all OVs Prepared for 411.ca by Digital Cement | Confidential

6. SEM OVs vs. Total OVs Prepared by Digital Cement | Confidential

7. SEM OVs by source vs. other OVs Prepared by Digital Cement | Confidential

8. Upcoming campaign changes to increase overall size of universe for leads Google Display Network Campaign • Replicate ‘Free’ campaign on to the Google Display Network • Test image / text ads • 411 historical data shows conversion rate of 12% for ‘Free / Advertising’ keywords through this channel with $10 CPA. Although market is more competitive this is a good indictor of first area of focus • Identified top performing historical placements can be set up as managed placements New Campaign Categories • Keyword research exercise for the next top 20 areas identified Catering, Massage Therapists, Painters, Residential Cleaning, General Contractors as areas with most potential and material search volumes • Continue identifying new relevant categories and validate potential conversions with research Prepared for 411.ca by Digital Cement | Confidential

9. A/B Test Performance Summary Prepared for 411.ca by Digital Cement | Confidential

10. Split of form going forward The Form vs. No Form test was launched on December 13 but paused for the holidays on Dec 16 and campaigns resumed on Dec 30. Dec 14 – Jan 5 observations (experiment running 10 days): Total View • Recommend going forward with no-form page for all except SB marketing • With exception of Free and SB Marketing campaigns differences are minimal in addition to low volume of conversions

11. Upcoming A/B Tests Landing page headline testing • Headline test for Control vs. Risk to be tested after Form vs. No Form test completed • Headline test for Control vs. Free to be tested after Risk headlines • Page update w/o Jan 9 • First headline test to launch Monday Jan 16 • Planned time in market of 2 weeks Large format themed image testing • Redesign landing page to include large format image • Use SBMarketing or Free campaign to test (low conversion volume on verticals) • Launch following headline tests Video landing pages • Video landing page solution. Test results vs. static pages • Present findings and options Jan 18 Prepared for 411.ca by Digital Cement | Confidential

12. Sales Performance Summary Prepared for 411.ca by Digital Cement | Confidential

13. Over the past month, 76 sales were recorded with an avg. value of $97 • 76 sales were recorded from Nov 16 – Dec 16, with a conversion rate of 8%. • The average value of each sale was $97 and took 3.8 days to convert from the initial OV registration. • 30% of sales took place in week 3, from Nov 28 to Dec 4. Prepared for 411.ca by Digital Cement | Confidential

14. ‘Google – Free’ campaign generated 68% of all sales • The majority of sales can be attributed to the ‘Google - Free’ campaign. With 52 sales and a conversion rate of 8%, it is the best performing campaign from a sales perspective. • ‘Google - SB’ campaign generated 11 sales at a lower conversion rate of 6%. On average, the sales attributed to this campaign converted a day earlier than the previous cohort (2.7 days vs. 3.7 days). • ‘MSN - SB’ had the highest rate of conversion (17%) and generated 5 sales. On average, it took 5.1 days from OV registration to sale; it is the best performing campaign from a salesconversion rate standpoint. Prepared for 411.ca by Digital Cement | Confidential

15. Opportunity to optimize media spend exists by focusing on ‘high-value’ campaigns • ‘Google - Free’ proved to be a high-value campaign, as it generated the highest number of sales along with an avg. spend of 96$, on par with the average of all campaigns. • Other high-value campaigns were ‘Google - SB’, ‘Google - Search’ and ‘MSN - SB’, all having generated sales and similar avg. spend. If possible increase media spend on these campaigns - particularly the latter two - can have a positive impact on sales, as they had higher than average sale conversion rates (10% and 17%, respectively). Prepared for 411.ca by Digital Cement | Confidential

16. Half of all prospects requested a call back, identifying a longer term conversion opportunity • Leverage high volume of warm leads. Specifically, there were 373 customers that scheduled a call back, with an another 122 that needed additional information – 64% of total • Seek opportunities to move warm leads into programs maintaining engagement and into a longer term sales funnel for long term conversions • We are getting to our customers first – only 1% have bought a similar product Only 4 customers (1%) already advertise online with a competitor. Prepared for 411.ca by Digital Cement | Confidential

17. Calculating program ROI 3 Month revenue Remaining Lifetime value Value of warm leads OV listings / Data Value of all other transactions beyond 3 month sale + OV data Cost per lead Sales revenue per lead Prepared for 411.ca by Digital Cement | Confidential

18. Next Steps • Testing recos • Conclude form / no form test - w/o Jan 9 • Begin headline test – w/o Jan 16 • Decide on preparing large image test for SBmarketing or free campaign in absence of volume by vertical • Focus on lead nurturing experience • Develop user experience to convert to sale from the 64% of “warm” leads within first month • Add unconverted “warm” leads into long term nurturing stream • Review experience for improvements leading to enhanced retention to increase lifetime customer value • Next monthly report • Recommend moving to Month End cycle due to campaign and sales pause over holidays Prepared for 411.ca by Digital Cement | Confidential

19. Appendix: Weekly Results Jan 3-10 Prepared for 411.ca by Digital Cement | Confidential

20. Jan 4. – Jan 9 Weekly Report Update Prepared by Digital Cement | Confidential

21. Campaign Summary Date range: 16/11 – 09/01 Prepared by Digital Cement | Confidential

22. Campaign Metrics: Jan 4 - Jan 9 SB Marketing Cost/Conv down from $49 to $35 wk/wk Prepared by Digital Cement | Confidential

23. Campaign Metrics: Jan 4 – Jan 9

24. Campaign Metrics: Jan 4 - Jan 9 Prepared by Digital Cement | Confidential

25. Total O.V.s and Total Attributed to SEM Campaigns Prepared by Digital Cement | Confidential

26. Daily OVs from SEM and All other Channels Prepared by Digital Cement | Confidential

27. Optimizations General Changes: • 16-17/11 Google and Bing/Yahoo campaigns launched (SB Marketing, Search, Listing, Free) • 17/11 Re-allocated budget between campaigns based on spending trends (budget moved from Search to SB Marketing) • 22/11 Started building campaign negative keywords lists • 23/11 Set up Rank#1 bidding all campaigns except Listing to Budget bidding • 09/12 Demoted Rank of any high CPA keywords throughout campaigns • 13/12 Launched Brand, Keymarkets and Categories campaigns and Form vs. No Form A/B test in Google • 14/12 Set new campaigns on to budget bidding strategy Free Campaign (Best performing at target CPA) • 01/12 Added new keywords to Free campaign from search query Report Search(Lower Conversions CPA very close to target) • 06/12 Paused Yahoo ad group non-converting keywords • 30/12 To set up on Keyword ROI bidding SB Marketing Campaign (2nd biggest conversion volume, CPA high) • 25/11 Increased SB Marketing budget to $900 due to lost impression share • 30/11 SB Marketing high CPA keywords moved to Rank #3 • 01/12 SB Marketing budget reduced to $500 from $900 • 01/12 Paused all keywords over $40 CPA • 06/12 Paused SB Internet Ad group in SB Advertising campaign • 16/12 Paused SB Internet ad group in SB Advertising MSN • 30/12 To set up on Keyword ROI bidding Listing Campaign (Lower conversions high CPA ) • 25/11 Paused all high cost/conversion keywords in Listing campaign and reduced daily budget to $100 • 06/12 Paused all non-converting keywords in Listing campaign • 14/12 Set Listing campaigns onto Keyword ROI bidding for Max CPA of $20 411 Brand Campaign (Low Conversions high CPA) • 14/12 Paused high spending keywords • 15/12 Changed keyword match type to exact from broad • 30/11 To set up on Rank# 4/5 bidding strategy Prepared by Digital Cement | Confidential