Third Party Advertising Evaluation: American Express eStatement Topline July 2008

2 Background and Objectives Third Party Advertising Evaluation Understand how American Express Cardmembers feel about the presence of ads on their eStatement American Express has been selling advertising on its website for some time now. In an effort to extend the revenue potential of this endeavor, the company is planning to introduce advertising on its eStatement. –While American Express is committed to selling this ad space, the company wants to do so in a way that minimizes negative repercussions. –The focus of this research is to accomplish the following goals: Overall Objective Determine the optimal ad location for future sales on the American Express eStatement that will maximize revenue without creating a negative experience for Cardmembers Assess current interaction with and impressions of the American Express eStatement Gauge how disruptive the ads are to Cardmembers’ experience with the website and American Express overall Evaluate how the footer, sidebar and midpage ads compare in terms of impacting the Cardmember experience Research Goals

3 Methodology Third Party Advertising Evaluation Who: A total of 1,000 random interviews were conducted among American Express Cardmembers who were visiting the website to view their American Express eStatement. –Of the random sample, 110 were OPEN Cardmembers. Augment interviews were conducted among OPEN Cardmembers to allow for an analysis of that target. Between the random and the augment, 726 OPEN Cardmembers were interviewed. –This nets out to the following sample sizes per cell: What: 12-minute online interview, using a pop-up survey When: June 11 – June 23, 2008 Stat Testing: A/B/C/D – Significantly higher than group noted at the 90% confidence level Total Random (CCSG and OPEN) OPEN (Random and Augment) Footer Ad Sidebar Ad Midpage Ad No Advertising250165

4 Key Findings Currently, CMs are highly involved and satisfied with their American Express eStatement. –Most visit their eStatement at least once a month, with between one-fifth and one-third incorporating this activity into their daily routine. –Overall impressions of the eStatement are favorable; eight in ten CMs have an extremely positive opinion of the site. Over three-quarters feel the sites provides useful information and is user friendly. The vast majority can find the information they’re looking for within a few minutes. While the proposed advertising does not generate positive feelings about American Express or the eStatement experience, it also does not seem to negatively impact engagement or satisfaction. –Reactions tend to be neutral rather than strongly negative. Two-thirds of CMs feel the advertising has a negligible impact on their impressions of American Express overall and the eStatement experience. More importantly, the ads are not likely to deter CMs from visiting the eStatement. Even with the ads, more than nine in ten CMs are just as likely or more likely to visit their eStatement in the next month. A majority say the size of the ads is not too obtrusive and has a minimal impact, if any, on navigation of the site. Of the possible locations, the footer ad is most likely to be perceived as too large. –The biggest barrier for American Express to overcome is the lack of appeal the ads generate. Six in ten CMs consider the ads not at all appealing Third Party Advertising Evaluation

5 Key Findings (Continued) The consensus is that CMs are inundated with advertising and that ads on the eStatement do not make them feel special, add value to the site, or provide worthwhile information about new products and services. –However, CMs exposed to the sidebar ad were slightly more receptive to the presence of advertising. This group was more likely to consider advertising acceptable, especially if the ads are exclusively for American Express CMs. Further, this location is least likely to interfere with CMs train of thought as they navigate the eStatement. Based on these preliminary findings, the sidebar ad seems to be the best option for American Express, as it is the least intrusive for CMs. –In the final report, we will take a more in-depth look at awareness and perceptions of the sidebar ad relative to alternative ad locations. –We will also gauge reactions among OPEN CMs as well as other key targets to see whether there are important nuances that may impact your decision Third Party Advertising Evaluation

Experience with and Perceptions of American Express and the eStatement

7 ________ Note: Net Promoter = Top 2 Box – Bottom 6 Box likelihood to recommend. Q.21 How likely are you to recommend American Express to a friend, relative, or coworker? 10 point scale - 1 is Not At All Likely, 10 is Extremely Likely Third Party Advertising Evaluation Extremely Likely (Top 3 Box) Middle 4 Box Not At All Likely (Bottom 3 Box) Likelihood to Recommend American Express to a Friend or Family Member AC C D D

8 ________ Q.1bBefore today, have you visited the American Express website to check your online statement? Q.2And how frequently do you visit your American Express online statement in a typical month? *Based on those who have visited eStatement previously Third Party Advertising Evaluation About Once a Day About Once a Week About Once Every Other Week About Once a Month Less Than Once a Month Involvement with American Express eStatement Yes No Frequency of Viewing eStatement in a Typical Month C

9 ________ Q.3 Thinking about the American Express online statement and considering all of the experiences you have had with this site, how would you describe your overall impression of the American Express online statement? 10 point scale - 1 is Extremely Negative, 10 is Extremely Positive Q.4 Using the scale below, how useful do you find the information provided to you on the American Express online statement? 10 point scale - 1 is Not At All Useful, 10 is Extremely Useful Q.5 Thinking about the American Express online statement, how would you rate it in terms of being easy to navigate? 10 point scale - 1 is Not At All Easy to Navigate, 10 is Extremely Easy to Navigate Q.6 On average, how quickly are you usually able to find the information you are looking for on the American Express online statement? Almost Immediately Within a Few Minutes Longer than a Few Minutes Third Party Advertising Evaluation Impression of American Express eStatement D C D

Impact of Advertising on American Express eStatement Experience

11 ________ Q.13Overall, how appealing do you find this ad that appeared on your American Express online statement/would it be to have this type of ad on your American Express online statement? 10 point scale - 1 is Not At All Appealing, 10 is Extremely Appealing Q.16What type of impact does (would) the presence of this ad have on your feelings about American Express overall? 10 point scale - 1 is Extremely Negative Impact, 10 is Extremely Positive Impact Q.17And what type of impact does (would) the presence of this ad have on your feelings about the American Express online statement? 10 point scale - 1 is Extremely Negative Impact, 10 is Extremely Positive Impact Q.18Thinking about the ad displayed on the American Express online statement, how does (would) the presence of this ad affect your likelihood to visit your online statement in the next month? 10 point scale - 1 is Makes (Would Make) You Much Less Likely to Visit Your Online Statement, 10 is Makes (Would Make) You Much More Likely to Visit Your Online Statement Third Party Advertising Evaluation Reaction to eStatement Advertising Bottom 3 Box Middle 4 BoxTop 3 Box

12 ________ Q.14 Using the scale below, please indicate how you felt (would feel) about the size of the ad on the online statement? Was it (Would it be)…? 10 point scale - 1 is Way too Small, 10 is Way too Large Q.15 How did (would) the ad placement on the American Express online statement impact your ability to view or check the information on your online statement? Third Party Advertising Evaluation Way Too Large (Top 3 Box) Just the Right Size (Middle 4 Box) Way Too Small (Bottom 3 Box) Perceptions of Size of Ad Impact of Ad Placement on Ability to View/Check eStatement No Impact Minimal Impact A Lot of Impact Reaction to the Size and Placement of eStatement Ads B AA AB

13 ________ Q.19 For each statement listed, please select the number that best describes the extent to which you agree or disagree with the statement. 10 point scale - 1 is Completely Disagree, 10 is Completely Agree Agreement with Statements about Advertising on American Express eStatement C Third Party Advertising Evaluation B B C B B B A A A C C BC AC A A B A B B B Completely Disagree (Bottom 3 Box) Middle 4 BoxCompletely Agree (Top 3 Box) C

Cardmember Profile

15 Cardmember Profile ________ *Monthly spend based on self-reported estimate Third Party Advertising Evaluation