mbr - march

Partner Marketing Monthly Review

Expedia WorldwidePartner Marketing

March 2012

Confidential

2

Agenda

1. Direct Affiliates- AARP

2. Meta-search

3. Network Affiliates

4. Online Advertising (OLA)

5. Loyalty- TD Canada Trust

6. Appendix

3

2011 2012 (E) Plan

$15.3

$15.9

$14.3

2011 2012 (E) Plan

714

747 753

Network Affiliate Finance Overview

• Total 2012 Marketing Contribution is trending +10% vs. Plan, + 15.9M• Key performance drivers of February March

• Trx softness driven by active click implementations with ShopAtHome and We-Care applications + TM bidding isssues with Wantacode

• High ABV carried business performance, hitting plan on GBV & GP despite softness in transactions

• Lower than forecasted spend further assisted MC, exceeding plan by =16%

Tailwinds• Q2 placements from reinvested profit

• Headwinds: • Toolbar publishers• Tough Q2 comps from 2011 toolbar activity

March 2012 Snapshot Commentary

Annual Transactions (E) (in 000) Annual Marketing Contribution (E) (in USD 000)

+4% vs. LY

+10% vs. Plan

+5% vs. LY

-1% vs. Plan

2012 Y/Y vs. PlanShoppers 598,943 -32%CVR% 10% 29%Trx 57,391 -12% -18%GBV 36,180,041$ -4% 0%GP 2,422,616$ 2% 0%Spend 707,603$ 17% -26%MC 1,715,013$ -4% 16%Effi ciency 29% 15% -26%GBV/Trx 630.42$ 10% 21%GP/Trx 42.21$ 16% 21%

4

Headwinds

Network Affiliate: March Performance Drivers

Tailwinds

• Unfavorable March-June 2011 comp due to noncompliant toolbar activity starting in March 2011 through Q2.

• Toolbar suppression for ShopAtHome and We-Care drove 23K decline to weekly shopper run rate.

• Changes to TM bidding copy by Wantacode drove 1,600 decline to weekly shopper run rate.

• Air and Package ABV$ and $GP/Trx continues to grow.

• Product mix shifted 3% away from air.

• Lower than projected spend due to strong renegotiation of placements

• Strong Q2 placement pipeline.

5

Key Win: Q2 Placements - +10,037 trx, +$56.7K MC

Cartera

Q2 Impact: +7,590 trx, +$15K MC

Ebates

Q2 Impact: +721 trx, +$9K MC

Savings.com


ShopDiscover


June Merchant Spotlight

Shop

Disco

ver June Merchant

Spotlight

Add-it Up + WorldPoints Mall Category Featured Merchant DBG

Loya

lty

Shop

Disco

ver

Add-it Up + WorldPoints Mall Category Featured Merchant

Savin

gs

Homepage + Travel

DBG Lo

yalty

Wedding Week +

Savin

gs

Homepage + Travel

Ebat

es

120x90 Placement on Chase, Citi, Best Buy, Lucky, Wells Fargo, GM Card, Cabela’s, Navy Federal & USAA

Wedding Week +

Carte

ra

Ebat

es

120x90 Placement on Chase, Citi, Best Buy, Lucky, Wells Fargo, GM Card, Cabela’s, Navy Federal & USAA

Q3 Q4

Carte

ra

July August September October November DecemberApr May JuneQ2

DBG Loyalty

Q2 Impact: +271 trx, +$5.7K MC

6

Spotlight: 2012 Toolbar Publishers – Standard Integration

Shopper searches “Expedia”

Shopper clicks on natural search link

*We-Care cookie drops*

Shopper downloads We-Care app

We-Care thanks shopper for supporting “cause” by shopping

at Expedia

7

Spotlight: 2012 Toolbar Publishers – Revised Integration

Shopper searches “Expedia”

Shopper clicks on natural search link

Shopper downloads We-Care app

*We-Care drops cookie only after shopper clicks “Activate”

8

2 4 6 8 10 12 14 16 18 2090

100

110

120

130

140

150

-30%-25%-20%-15%-10%-5%0%5%10%

2011 2012

Week

Sho

pper

s (in

tho

usan

ds)

Expedia CA

Expedia US

Network Affiliate: 2011 Comps

2 4 6 8 10 12 14 16 18 2010

11

12

13

14

15

16

-15%-10%-5%0%5%10%15%20%

2011 2012 YoY

Week

Trx

(in

tho

usan

ds)

2 3 4 5 6 7 8 9 10111213141516171819200

5

10

15

20

-80%

-60%

-40%

-20%

0%

20%

2011 2012 YoY

Week

Sho

pper

s (in

tho

usan

ds)

2 3 4 5 6 7 8 9 10111213141516171819200

0.5

1

1.5

2

-30%

-20%

-10%

0%

10%

20%

30%

2011 2012

Week

Trx

(in

tho

usan

ds)

Launch of Coupon Buddy /

SHopDiscover

Active click implementation – ShopAtHome &

WeCare

Wantacode TM Bidding Copy

Change

99

Initiative Description Deliverables: Next 30 Days Rate of Progress

Blockers/ Escalation Deadline

Optimize marketing contribution and revenue with lower commission on air, simplified commission terms, and bonus plan for high potential affiliates.

1. Audit current commission terms (complete)

2. Propose new standard commission terms (complete)

3. Roll out quarterly bonus plans to 5 high potential partners (in progress)

4. Roll out new terms network wide (4/1/2012)

1. Managing the messaging around more conservative air terms network wide

4/1/2012

Launch additional co-brand implementations with Network Affiliate partners – drive CVR improvement

1. Identify next 10 partners (complete2. Kick off project with PM Operations

(complete)3. Gather creative assets from partners (2 of

10 received)4. Set cobrands live (2 of 10 live)

1. Creative receipts from affiliates

4/30/2012

Launch Hawaii coupon 3/27 with vanity codes for Upromise, WantaCode, and Savings.com

1. Secure premium placements (complete)2. Receive vanity codes (3/26)3. Send out coupon code to publishers

(3/27)

3/31/2012

•Goodshop pre-travel portal test with Search Form widget and/or Deals Widget

•Optimize Deals API on Upromise for destiantions

1. Send over widget HTML code to Goodshop (this week)

2. Audit Goodshop widget performance (4/15)

3. Set up developer call with Upromise (4/30)

1. Dev resources on publisher site

4/30/2012

Performance Optimization

Expand Co-Brand Implementations

DPS 30 Day Work Plan

Hawaii Coupon

Custom Integrations

10

Spotlight: Q1-Q2 Cobrand Roll-Out

• March 22nd – Cobrand headers for CouponMountain.com & Upromise.com go live.

• The remaining 8 affiliate partners participating in Q2 phase of the cobrand launch are scheduled to go live by end of April, pending creative receipt and release schedules.

1111

Initiative Description Deliverables: Next 30 Days Rate of Progress

Blockers/ Escalation Deadline

Launch AvantLink to accelerate growth in underrepresented affiliate partner segments (e.g. content)

1. Kick off batch file project with EDW (complete)

2. Execute agreement with AvantLink (3/31)

1. Legal2. Batch file project

de-prioritized

Q2

Rebuild network batch file to address CJ tracking issues, enable new network launch, and open mobile to affiliates

1. Kick-off meeting with EDW (complete)2. Roll out new affiliate tracking (3/15)

1. De-prioritized in EDW

2. Not yet secured the necessary resources

Q2

Improve content distribution to affiliates

• Event- categorized newsletters

• API integration.

1. Troubleshoot Upromise Deals API integration (3/15)

2. Send out Spring Break newsletter (3/15)

1. Technical aptitude of affiliates

5/15/2012

Leverage creative agency to refresh LOB, evergreen, holiday creative for affiliate channel

1. Add affiliate requirements to RFP (complete)

2. Sign creative agency3. Refresh creative

1. Budget2. Prioritization

5/30/2012

Launch New Affiliate Network

Batch FileRe-build

DPS 31-60 Day Work Plan

Content Distribution

Creative Refresh

mbr - march

Design