1. © 2006 Outsell, Inc. All rights reserved. 1

2. Outsell Ad Spending Study:
Where and Why Advertisers
Move Online
Bette S. Brunelle
VP and Lead Analyst
Outsell, Inc.
SSP 28th Annual Meeting
June 9, 2006
© 2006 Outsell, Inc. All rights reserved. 2

3. And what are you doing to attract them?
© 2006 Outsell, Inc. All rights reserved. 3

4. About This Study
§ Outsell’s annual Ad Spending Study focuses on never-before-
tracked areas such as advertisers’ views about Google vs.
Yahoo! and Microsoft; performance of keyword ads vs.
contextual and behavioral ads; adoption rates/penetration of
online advertising; budget allocation, growth rates, and trade-
offs across all types of advertising; and the purpose and
media-type of ads.
§ The study is based on a survey Outsell fielded to 1,200
advertisers in November 2005, all responsible for ad spending
or specifying ad budgets, controlling an estimated $2.4 billion
in advertising. Confidence level is 95% +/- 3%.
§ This is the only study to analyze differences across
advertisers and the markets they target: B2B, B2C, and
Healthcare.
© 2006 Outsell, Inc. All rights reserved. 4

5. Who Advertisers Target
Primary Market Sectors Targeted
46%
Business
Consumers 38%
Healthcare Institutions 9%
or Practitioners
Government 4%
Education 3%
Source: Outsell’s Advertising Tracking Database
Base = 924 (Q5a, A) © 2006 Outsell, Inc. All rights reserved. 5

6. Industries of the Advertisers Surveyed
(By Segment)
Healthcare 20%
Business Services 19%
Manufacturing 13%
Other Services 12%
High Tech 11%
Biotech/Pharma/Chemical/Food 9%
Financial Services 5%
Travel 4%
Education 4%
Legal Services 1%
Government 1%
Other 1%
Source: Outsell’s Advertising Tracking Database
Base = 1,214 (Q5, A) © 2006 Outsell, Inc. All rights reserved. 6

7. Online Spend Growth Outpaces Print
Allocation of Total Marketing Budget – Spending % by Media Type
32%
31%
29%
29%
23% 23%
19%
18%
16%
6%
3%
2%
Online Media Print Media Events TV, Radio & Other Media
2005 Share of Budget 2006 Share of Budget Spending Growth Rate
Source: Outsell’s Advertising Tracking Database
Base = 625 (M3, A) © 2006 Outsell, Inc. All rights reserved. 7

8. Puny Growth in All Major Print
Categories; Targeted Pubs Have Edge
Spending % by Print Type and Spending Growth Rate
24%
23%
20%
3.3% Total Print Spending Growth
15%
10%
9%
6% 6%
4% 4%
3%
2% 2%
2%
General Direct Mail Trade Other Print Custom Print Directories Newsletters
Magazines & Mktg. Magazines Media Pubs.
Newspapers
2006 Spending Growth Rate
Source: Outsell’s Advertising Tracking Database
Base = 436 (M4, A) © 2006 Outsell, Inc. All rights reserved. 8

9. Healthcare Online Spend Outpaces
Other Markets
HC Allocation of Total Marketing Budget – Spending % by Media Type
42% 43%
29%
26%
24%
21% 21%
10%
9% 8% 8%
-3%
Online Media Print Media Events TV, Radio & Other Media
2005 Share of Budget 2006 Share of Budget Spending Growth Rate
Source: Outsell’s Advertising Tracking Database
Base = 80 (M3, A) © 2006 Outsell, Inc. All rights reserved. 9

10. Healthcare Search Engine Growth
Sizzles 188%
23.5% Total Online Spending Growth
66%
42% 44%
37% 41%
30% 29%
13%
11% 10% 9% 8% 8% 7% 7%
4% 3% 1% 1%
-30%
-36%
Company's Other Sponsoring Search Trade Web E-mail Webinars Gen. Bus. Online Weblog Wireless
Own Site Online Content Engines Site Mktg. Site Directories Mktg. Mktg.
Media
2006 Spending Growth Rate
Source: Outsell’s Advertising Tracking Database
Base = 80 (M5, A) © 2006 Outsell, Inc. All rights reserved. 10

11. Healthcare Print Relatively Healthy
42%
8.1% Total Print Spending Growth
29%
24% 22%
21% 21%
15%
12% 11% 11%
7%
6% 4%
2% 2%
Online Trade Direct Mail Other Print Custom Print General Newsletters Directories
Growth Magazines Mktg. Media Pubs. Magazines &
Newspapers
2006 Spending Growth Rate
Source: Outsell’s Advertising Tracking Database
Base = 80 (M4, A) © 2006 Outsell, Inc. All rights reserved. 11

12. Healthcare Advertisers Value
Keyword Ads
Search Keyword Contextual Placement
61%
56% 56%
51% 51%
48%
46% 46%
67%
52%
43% 38%
37% 38%
35%
29%
Google Yahoo! MSN Other Search Google Yahoo! Other Behavioral Ads
Engines
% Extremely/Somewhat Effective Percent Using
Source: Outsell’s Advertising Tracking Database
Bases = 80 (M10, A) © 2006 Outsell, Inc. All rights reserved. 12

13. Healthcare Conferences Lead Strong
Event Spending
7.6% Total Event Spending Growth
42%
31%
28%
24%
9% 10%
3%
Online Growth Conferences Exhibitions Other Events
2006 Spending Growth Rate
Source: Outsell’s Advertising Tracking Database
Base = 80 (M6, A) © 2006 Outsell, Inc. All rights reserved. 13

14. Healthcare Advertisers Driven by
Depth of Leads
76%
69%
57% 56%
52% 52%
48%
42%
Depth of the Maximize volume Lead tracking Receiving ratings Self-managed ad Leads formatted Consultant- Guaranteed
qualification of leads at all data and reports of leads from hot campaign for direct loading managed ad minimum
profiles you stages of to cold into CRM systems campaign performance
receive for each qualification
lead
% Extremely/Somewhat Important
Source: Outsell’s Advertising Tracking Database
© 2006 Outsell, Inc. All rights reserved. 14
Base = 80 (M13, A)

15. For Healthcare Leads, Traditional Is
Tops, for Now
Effectiveness and Usage of Marketing Tactics for Lead Generation
84% to 94% Using
Traditional Up to 71% Using
94% Online for Leads
90%
86% 84%
81%
79%
71% 70%
68% 66%
67% 64% 64% 65%
62% 60%
59%
51%
45% 44% 44%
40% 39%
33%
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Source: Outsell’s Advertising Tracking Database, Revised March 2006
© 2006 Outsell, Inc. All rights reserved. 15
Base = 77 (M12, H)

16. What are you doing to attract advertisers?
© 2006 Outsell, Inc. All rights reserved. 16

17. Come By and Visit Us
330 Primrose Road, Suite 510
Burlingame, CA 94010
Tel: (650) 342-6060
Fax: (650) 342-7135
http://www.outsellinc.com
© 2006 Outsell, Inc. All rights reserved. 17

18. Outsell Background
Outsell is the leading research and advisory firm providing actionable market analytics
for the information industry. Founded in 1994, Outsell helps publishers, commercial
information providers, and content software technology vendors identify, maintain, and
grow markets and revenue streams. Outsell also works with information management
executives in top corporations, government agencies, and educational institutions to
benchmark spending, optimize performance, and demonstrate best practices. Outsell
invests heavily in unique information industry data assets that form the core of its high-
quality, fact-based research, analysis, and recommendations for clients worldwide.
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display of the information and data contained herein. As a user of this report, you acknowledge that you are a licensee of Outsell's copyrights and that Outsell, Inc.
retains title to all Outsell copyrights in the report. You are not permitted to resell, distribute, disseminate, disclose, copy, or otherwise make use of the information
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Outsell, Inc.'s information, analysis, opinion, and reports (the "Information") are based on qualitative and/or quantitative res earch methods and its staff's extensive
professional expertise in the industry. Outsell, Inc. has used its best efforts and judgment in the compilation and presentation of the Information and believes the
Information is accurate as of the date furnished, but the industry and the Information are subject to rapid change. Except as af oresaid, Outsell, Inc. makes no other
representations or warranties, express or implied, concerning or relating to the Information.
© 2006 Outsell, Inc. All rights reserved. 18