1 MySpace.com: Structuring The Network Presented By: Brian Dennett Prepared by: Antony Abara, Brian Dennett, Wayne Marcy, and Vivek Patel Structuring the Network

2 Overview of MySpace Structuring the Network  MySpace.com is the largest social networking site  130 million users growing at 250k a day  Accounts for 17% of the all Internet ad impressions  Projected 250 million in revenue for 2006  Content is Largely Unstructured and Unclassified  Only members can be targeted  Targeting capabilities are limited to information provided by members

3 Opportunity Structuring the Network  MySpace.com CPM rates are low by industry standards  MySpace.com has the potential to have dramatically higher CPM rates  To realize higher CPM rates, knowledge must be collected about MySpace.com traffic  The REULE Targeting Engine will allow MySpace.com to obtain more than 2 Billion dollars total revenue by 2011 an increase of 500 Million.

4 Potential Customer List  GM  2007 Internet budget up to 3.5% to 150 Million  Wal-Mart  2007 Internet budget 35 Million  Circuit City  50 Million 2005 spending  Absolut Vodka  % of Marketing budget online  Limited Brands  VictoriaSecret.com, Bed Bath and Body Works, Limited Clothing Store  14 Million online 2005  Vonage  275K Internet spending in 2005 Structuring the Network

5 Ad Type BANNER MEDIUM RECTANGLE LEADER BOARD HALF PAGE SKYSCRAPER GROUP SECTION MUSIC SECTION VIDEO CLIPS FEATURED PROFILE Size468x60300x300728x90430x600160x600 Current Price CPM $5.00 $4.00$6.00$4.00$3.00$7.00$20.00$50, Projected Price after 12% CPM increase $5.60 $4.48$6.72$4.48$3.36$7.84$22.40$56, Financial Details Proposed Pricing Model

6 Structuring the Network Financial Details (continued) Projected Revenue based on annual increase of 12%

7 Structuring the Network Total Start-Up costs: $1,532,000.00Note: * - Part of Production Environment Financial Details (continued) Costs

8 Structuring the Network Financial Details (continued) Return On Investment

9 REULE Targeting Engine Structuring the Network

10 Workflow Overview Structuring the Network The RUELE targeting engine will proceed under the following workflow:  MySpace.com websites are mined by the REULE Network Miners  Mined psychographic and demographic information about the website is stored in the REULE Database.  The REULE Targeting data is accessed by the data stewards and checked for accuracy  The Superstars of MySpace.com will further analyze the data and understand where Market niches can be established and targeted.  Superstar data is incorporated into the REULE reporting data to be accessed by the MySpace.com’s marketing team.

11 Architectural Overview Structuring the Network

12 Target Audience Structuring the Network Who?  Identify our user-base  Define audiences Why?  Decide who is marketable How?  Develop a way to find targeted users Where?  Track user traffic  Discover hubs

13 Risks  Inaction – What happens if no action is taken by FOX interactive media and MySpace.com?  Alienate Users – What if too many untargeted solicitations de-sensitize users to MySpace.com advertising?  Competitive Advantage – Does the REULE targeting engine offer the competitive advantage that MySpace.com will need to grow aggressively for the next five years? Structuring the Network

14 Next Steps  Sign contracts  Begin Work  Payment Schedule  Payment 1 … $399,  Payment 2 … $706,  Payment 3 … $300, (* See details in attached document) Structuring the Network

15 Questions and Answers Structuring the Network

16 The End MySpace.com: Structuring the Network Presented By: Brian Dennett Prepared by: Antony Abara, Brian Dennett, Wayne Marcy, and Vivek Patel Structuring the Network