Leveraging Directional Mediato Fuel Local Commerce

Merging Digital Platform & Sales Reach

• $1B in digital & mobile revenue

• California-based tech organization • Developer of YP.com℠ site and YPmobile®

products.

• Network of 300+ online and mobile publishers

• $2B in print revenue

• Relationships with merchants

• Nationwide sales force

• Go-to-market systems and processes

$3B in multi-media revenue

#21 on Ad Age’s U.S. Media List

Top 50 digital global media company

Mobile / Digital platform focus

3K+ local media consultants

600,000 advertisers

Revenue and advertiser metrics are based on internal data

®

Our Mission

Estimated annual commercial transactions associated with searches on YP℠ Properties and across the YP℠ Local Ad Network

$200B+ Driven by Directional Media Platforms

Helping Local Businesses and Communities Grow

Industry Challenge: Eliminating Friction

Help consumersget stuff done

Help businesses grow &retain customers

Inefficient interactions driving distance in the process

• Consumer media is fragmented• Pricing models are varied and complex• Merchants bombarded with ad sales pitches• ROI is difficult to determine• Ad products primarily click and call driven• Unbalanced focus between consumers & advertisers

Need to establish better connections for consumers and advertisers.

Solving the Friction Problem & Enabling Connections Requires A Combination Of Assets…

TECHNOLOGY

CONSUMERREACH

SALESPRESENCE

ADVERTISINGSERVICES

Consumer Reach: Scale & Engagement

OrganicYP.com℠ site, YP℠ apps

YPmobile® web & YP℠ print directory

• 2.6 billion annual print and online searches

• 40M+ monthly uniques for YP.com℠ site and 20M+ for YPmobile® properties

• 120M print books distributed

Mobile Display YP℠ Local Mobile Display Network

• 150+ mobile app publishers across three mobile platforms and nine app categories

• Over 1B monthly impressions that reach 156M monthly unique users

SearchYP℠ Local Ad Network

& SEM

• Over 300 publishers and 60M monthly unique online visitors across the YP℠ Local Ad Network

• Search Engine Marketing for exposure to Google, Bing search results

+ over 300 others

Over 150 display publishers

Metrics are based on internal data

Advertising Services: Span the Life Cycle

• Digital & Mobile Advertising‒ YP.com℠ and YPmobile® ad distribution across the

YP℠ Local Ad Network ‒ SEM (YPconnect)‒ SEO‒ Online & Mobile websites‒ Display‒ Online Presence Management‒ Coupons

• Print Advertising‒ YP℠ print directories‒ Direct Mail (Digital Express)

BE FOUND GET LEADS CONNECT MANAGE

Helping consumers find your business

Generating leads for your business

Engaging with your potential customers

to drive sales

Managing & growing your customer relationships

Core Advertising Services Emerging Services

New capabilities to address consumer & advertiser needs

Sales Presence: Local Online Advertising is Sold, Not Bought

3K+ media consultants

365days of presence

Trusted advisors to

local businesses

Establishedwithin

communities nationwide

®

Technology: A Critical Competency

Consumer Platform

Search, Business Data, Personalization, Ssocial

Ad Delivery Platform

Traffic Acquisition, Publisher Mgmt, Ad Serving, Targeting

Platform Data ServicesInstrumentation, collection, processing, mining, analytics, reporting

Advertiser Platform

Self Service, Call Cloud, Content Mgmt, Reporting

Platform InfrastructureNetwork, security, sysadmin, storage, DBA, monitoring, operations

YP Has Become…Mobile…Since 2008

42%Total mobile local searches across YP properties in 2012

Top Ranked AppsTop 50 on Apple and Android in Travel Category

Over 300,000 menus Nearly two million menu views by iPhone and Android users each month

350M+ ad revenue associated with mobile; second highest in the industry per IDC

300+Mobile publishers in the YP Local Ad Network

38% SEM spend to mobileHighest in the industry

100 millionCalls made to a business using the YP app in 2012

3 calls every secondMade to a business on the YP app

100% Click Growth Clicks on paid listings accessed on mobile devices

Mobile …Fully Integrated for Local Advertisers

Wherever Consumers Need Local Information Driving Mobile Commerce Connecting Advertisers to

Consumers

When it Matters Most….

2010 2011 2012 -

50

100

150

200

250

300

350

400

450 Web/OtherMobile

10%

25%43%

Year-over-year Growth Total Clicks: +43% Mobile Clicks: +261%

Year-over-year Growth Total Clicks: +21% Mobile Clicks: +106%

Clic

ks o

n Y

P L

oca

l Ad

Ne

two

rk (

mill

ion

s)℠

Source: YP Internal Analytics

New Customer Opportunity for Local Businesses to Engage with Consumers

Clicks on YP℠ Local Ad Network

Mobile Local Search Behaviors Are Changing Mobile Being Used Where the Ad Dollars

ExistBehaviors around mobile local search are changing with the increased adoption of smartphones and tablets. Evidence of this includes search in categories not related to proximity or urgency, factors that often lead to a mobile search.

Banner Display Click Through Rate (CTR) by Proximity to a Business Destination

Data from geo-targeted YP℠ Local Mobile Display Network recently uncovered that the closer users are to a business, the more likely they are to click on a mobile banner ad for that business. However, there is a “sweet spot” about 1-2 miles that yields the highest engagement.

Source: YP Internal Analytics

Summary Thoughts

NEED TO ELIMINATE FRICTION Make is easy for consumers to connect with advertisers

KEY ASSETS FOR SUCCESS Consumer Reach: Engagement and scale are critical Sales Presence: Local advertising is sold, not bought Advertising Services: Must Span the Life Cycle Technology: Critical Competency

CONSUMERS ARE GOING MOBILE FOR LOCAL SEARCH

The Local Commerce Opportunity Continues to Grow…

THANK YOU