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2. Interactive Marketing Campaign Case Study June, 2007

3. K12 Marketing Challenge  K12, a leading provider of home school curricula and online academies, asked Tangible Impact to launch their first-ever interactive marketing campaign.  The “e-school” product is complex. Home and e- schooling are defined by state-specific regulations. And all marketing & execution is state-specific.  The commitment is highly considered. A decision to home school or e-school is a life-changing commitment of time, energy and money.  The K12 metrics are well-quantified: Cost Per Lead and state-by-state total number of leads. Results from this pioneering program to be compared to the strong performance of the established marketing channels of direct mail, print and SEM. http://www.k12.com

4. Project Parameters Tangible Impact determined the K12 marketing challenge to require:  Campaign Strategy  Target Audience Profiling  Media Planning and Buying  Creative Design and Development  Media and Creative Testing  Analysis and Optimization  Change Management  Measurable and Meaningful Success

5. Target Audience Profiling  K12 offered a broad definition of the target audience: Parents with kids.  Key characteristics of the target audience were unknown. Gender? Age? Income? Interests? Activities? Influences? Attitudes? Affinities?  Tangible Impact discussed, considered researched and documented a target audience strategy.  We developed a target audience profile and identified when, where and how these individuals might be engaged - and receptive to communications - online.  We applied this target audience profile as a guiding principle in our media and message strategy development.

6. Media Planning & Buying  Tangible Impact structured an initial media plan, spanning a spectrum of publishers, placements and targeting techniques, at statistically significant levels of budget and impressions, and including:  Publishers:  Broad Reach Portals and Ad Networks  Related Interest Sites (Parenting, News, Casual Games)  Relevant Content Sites (Home Schooling, Homework)  Placements:  IAB Standard Ad Units  Text Links & Logo Buttons  Newsletter Sponsorships  Targeting Techniques:  Geographic  Demographic  Psychographic  Behavioral Standard Ad Units

7. Media Planning & Buying We leveraged multiple forms of targeting across a spectrum of sites.

8. Creative Design & Development  We conceived of the initial messaging strategy, and designed banners to effectively initiate the conversation with the target audience.  All banners were infused with our proven creative and copy best practices.  All banners faithfully foreshadowed the K12 landing page look, feel and content.  All banners were efficiently developed according to publisher specs, for streamlined, trouble-free operations.

9. Creative Design & Development  We designed interactive campaign landing pages to both convey critical information and capture qualified leads.  Landing pages incorporated proven composition, creative and copy best practices.  Landing pages were synergistic with the campaign banners and consistent with the overall K12 website.  The information/education role of the landing pages was important to maintaining cost efficiencies for K12’s outbound call center team.

10. Media Testing  K12 media testing has produced key learnings and supported impactful optimization decisions throughout the first year:  Broadreach inventory - coupled with behavioral and demo targeting – has proven to be far more effective than content-specific inventory.  Based on this learning, we’ve aggressively optimized K12’s media allocations to leverage these focused, friendly and highly frequented placements.  Demographic differences - Further media testing demonstrated dramatic performance differences across demo target age ranges.  Based on this subsequent learning, we refined our targeting selections, and further boosted results and reduced CPLs.  We continue to test new publishers, placements and targeting techniques, to both refresh and expand the K12 campaign.

11. Dramatic Demographic Differences  Across MSN and Yahoo we targeted 2 female demographics, and tested them head- to-head: age ranges 25-34 vs. 35-49.  In every media placement and across all 5 states, the 35-49 age range was far more efficient in cost per lead, by as much as a actor of 4 ($112 CPL vs. $26 CPL). Media Testing – Demographic Targeting

12. Creative Testing - Banners  This seemingly simple banner creative test drove down CPL by 223%.  Banner creative testing has addressed core messaging, calls-to-action, branding, use of animation and now, incorporation of testimonial video.  We’ve established a control banner for each state school as well as for K12’s national positioning.

13. CPL was 26% lower for this landing page Landing Page 2 Landing Page 1 Banner 1 Test 1 Test 2 Creative Testing – Landing Pages

14.  Landing Page creative testing has addressed key factors such as: page layout, page content and single vs. multi-page construction.  Testing has spanned both display and search results landing pages for incremental gains in performance.  Next landing page test will focus on the impact of video testimonials.

15. Insightful Analysis & Continual Optimization  We monitored data on a daily basis immediately after campaign launch and continued with weekly monitoring throughout the campaign.  Optimization milestones were identified at launch, and optimization recommendations made – and acted upon - on an ongoing basis, as media and creative results became statistically significant.  Continual, well-informed optimization is a proven means to drive down cost per lead and build net responses over the life of a campaign.

16. Change Management  K12 debuted an all-new brand midway through the first year of the campaign.  As a result of deliberate testing and documented learnings, we knew how to effectively and efficiently introduce the new brand, while maintaining campaign response.  Our online execution and results provided direction for other K12 marketing channels.

17. Campaign Results – Year 1 Success  Over the first 12 months of K12’s interactive marketing campaign, cost per lead has decreased by 163%  And the rate of form-to-lead conversion has increased by 165%  We’ve established state-specific cost per lead benchmarks, as well as control banner and landing page positions for future campaigns.  Successful interactive creative test results have been applied across multiple K12 marketing channels.

18. Year 2 - A New Challenge  Based on the success of year 1, Tangible Impact was awarded management of K12’s consumer interactive marketing program for year 2.  Tangible Impact also won the assignment to launch K12’s first ever professional interactive marketing program.  To date, this new K12 marketing program has surpassed all expectations.

19. Tangible Impact Services Interactive marketing campaign management  Campaign Strategy  Target Audience Profiling  Media Planning and Buying  Creative Design and Development  Media and Creative Testing  Continual Analysis and Optimization  Change Management  Measurable and Meaningful Success

20. Office 614.792.3392 Mobile 614.296.4327 tangibleimpact.com beth@tangibleimpact.com