1. K12 Online Advertising Report & Analysis VSP Campaign Review Reporting timeframe: February 20 – May 20, 2007 Meeting Date: May 24, 2007

2. 2 Agenda  Campaign Results  Executive Summary  Media Results  By Tactic  By Tactic & Site  By Site & Tactic  Value Add District Administration Newsletter  Creative Results  Display Banner Testing Results  Newsletter Banner Testing Results  By Ad Size  Multi-Tab Landing Page  Key Learnings & Recommendations  Brainstorming for Sept Campaign/Next Fiscal Year

3. Campaign Results

4. 4 Site/Publisher Launch Dates  TechLearning: 2/20  THE Journal: 2/21  Education Week: 2/23  eSchool News: 2/23  Edutopia: 3/5  ASBJ: 3/13

5. 5 Executive Summary  Below is a top line summary for this first-time online advertising program for K12 VSP.  Report Timeframe: February 20 – May 20, 2007  Impressions: 2,226,088  Clicks: 5,396  Click-Rate: 0.24%  Total Cost (with ad serving): $39,866.20  Total Leads: 294  Form-to-Lead Conversion: 8.39%  Cost-Per-Lead: $135.60  Additional pages on the K12 site were pixeled for this campaign.  A total of 1,032 additional visits to the K12 site & 3 additional conversions can be attributed back to a viewer seeing/clicking on a display ad banner or newsletter.  The following slides recap the set-up and individual data.

6. 6 Educators Home Page Visits  Educators Home Page Visits: 529 (350 click-based and 179 view-based)  http://educators.k12.com/

7. 7 Classroom Solutions Page Visits  Classroom Solutions Page Visits: 237 (163 click-based and 74 view-based)  http://educators.k12.com/classroom/index.html

8. 8 Virtual School Programs Page Visits  Virtual School Programs Page Visits: 245 (160 click-based and 85 view-based)  http://educators.k12.com/VSP/index.html

9. 9 VSP Contact Us & Thank You Page Visits  VSP Contact Us Page Visits: 21 (9 click-based and 12 view-based)  http://m1.k12.com/mk/get/vsp_contact  VSP Thank You Page Visits/Leads: 3 (2 click-based and 1 view-based)  http://m1.k12.com/mk/get/vsp_contact

10. Media Results

11. 11  The CPL for Display appears to be more efficient – the Newsletter Sponsorships had a CPL 54% higher than Display.  Of note, the data is slightly skewed by added value impressions/leads from Display.  Specifically, there were 23 added-value leads from Tech & Learning Display & 14 bonus leads from Edutopia Display. If we were to subtract these 37 leads from the 140 total, the overall Display CPL would change from $105 to $144.  Although Newsletters have a 51% lower CTR than Display, their Form-to-Lead Conversion rate is 55% higher.  This suggests that the Newsletters attracted more qualified respondents.  It will be interesting to learn if Newsletter leads enroll at a higher rate as well.  Recommendation:  Continue with an evenly weighted mix of both Display & Newsletter Sponsorship advertising in future online campaigns.  Both tactics offer comparable CPLs, yet are reaching prospects at different stages in the sales cycle as suggested by the difference in form-to-lead conversion.  Both tactics will also be necessary to sustain lead volume levels. Campaign Results – By Tactic

12. 12 Campaign Results – By Tactic-Site  eSchool News is a promising performer across both tactics.  In terms of CPL, the rank order of sites across both tactics differs, proving that each pub has different media efficiencies for K12.  Top Performing Display Channel Pub: Tech & Learning, CPL $77.36  Top Performing Newsletter Sponsorship Pub: eSchool News, CPL $60.59  Of note, Edutopia has the highest form-to-lead conversion rate at 16%  Recommendation: Do not proceed with ASBJ in future campaigns, nor Edutopia Display. We recommend still RFP’ing EdWeek for a future campaign in effort to negotiate their pricing down based on other site performance.

13. 13 Campaign Results – By Site-Tactic  If required to buy both Display & Newsletters in a package, eSchool News offers the lowest combined CPL.  Display is outperforming Newsletters in Tech & Learning and Education Week.  Newsletters are outperforming Display in eSchool News, THE Journal & Edutopia.

14. 14  Value add online placement from the publisher for print buys.  A 468x60 lead banner placement ran within the District Administration ‘District Daily’ Newsletter for a 10-day run beginning April 16 th.  5 total leads were generated.  The form-to-lead conversion rate is 37% lower than the average of all other Newsletter pubs tested.  If this placement were to have actual media cost associated with it, it would likely be a poor performer.  Recommend not testing/securing this specific Newsletter in future campaigns. Campaign Results – District Administration Newsletter

15. 15 Media Learnings & Recommendations for Future Campaigns  Display and Newsletter testing across 6 publisher sites has provided a good set of benchmarks for this first-time online advertising program for VSP.  Below is a summary of media learnings and recommendations that will help provide a footprint for future campaign set-up and testing:  Continue with an evenly weighted mix of both Display & Newsletter Sponsorship advertising in future online campaigns.  Both tactics offer comparable CPLs, yet are reaching prospects at different stages in the sales cycle as suggested by the difference in form-to-lead conversion.  Both tactics will also be necessary to sustain lead volume levels.  Do not proceed with ASBJ Newsletters in future campaigns, nor Edutopia Display.  We recommend still RFP’ing EdWeek for a future campaign in effort to negotiate their pricing down based on other site performance.  Top Performing Display Channel Pub: Tech & Learning  Top Performing Newsletter Sponsorship Pub: eSchool News  Pub with the Lowest Combined CPL across Tactics: eSchool News  For future campaigns, we may now RFP and consider testing Scholastic and District Administration, that were not on the table for this previous campaign.

16. Creative Results

17. 17 Display: Banner Testing Results  We have significant results in from the Display banner testing!  As a recap, Concepts B & C ran 50/50 weighting, head-to-head for campaign launch. Based on mid-campaign performance results, Concept C was pulled on 3/29, and Concept A was added into the testing mix to run against Concept B.  Results: Concept A generated a 65% lower cost-per-lead than Concept B.  Recommendation: Test a variant of Concept A in the next campaign.

18. 18 Newsletter Sponsorships: Banner Testing Results Ready for an e-learning program in your district?  Results from the Newsletter banner testing are directional.  As a recap, only 1 banner could run within each Newsletter, and Concept A was flighted within all first-run newsletters.  Concept A & the Logo/Text creative are generating the exact same CPL, $161.  Concept B was flighted in a couple of the newsletters with second runs, so data is very limited, but it shows a 3X higher CPL than Concept A.  Recommendation: Test a variant of Concept A in the next campaign. Let’s also keep in mind opportunities with logo/text.

19. 19  These 4 main ad sizes [160x600, 300x250, 336x280 & 728x90], which account for about 54% of the served impressions and 57% of the media cost, have generated 66% of the leads. Creative Results – By Ad Size

20. 20  Views decrease in correlation with the tab’s position on the page, although no one page is a prerequisite of another – with exception, is the FAQ page, which had slightly more interest than the page previous.  Additional page views totaling 23% of the original landing page, were generated.  We’d like to compare this number to the next campaign/redesigned page to see if there’s a way to increase it. Multi-Tab Landing Page Views

21. 21 Creative Learnings & Recommendations for Future Campaigns  Banner creative testing across tactics has provided significant learnings for this first-time online advertising program for VSP.  Below is a summary of creative recommendations that will help provide a footprint for future campaign testing:  Display: Roll-out Banner A as the Control and Test a Variant of A  Newsletters: Roll-out Banner A as the Control and Test a Variant of A. Also keep in mind opportunities with logo/text.  Here is a summary of Landing Page revisions previously discussed as potential for the next campaign:  ‘Tabs’: Revise ‘tabs to be more prominent. Consider a horizontal layout if possible. Also consider revising in current layout to appear as clickable buttons. Add rollover color change.  Form Fields: Reduce the amount of required fields [perhaps just Name, Title, Email, School District]. Also, consider flipping the vertical order of the form fields to begin with the simple fields such as ‘Name’.  Job Title Field: Consider changing it from an open field to a dropdown menu for selection.

22. 22 Brainstorming for Sept Campaign/Next Fiscal Year  K12 Proposed Display & Newsletter Online Advertising Budget: $205K over 27 weeks [July 2007 – June 2008]  Campaign Timeframes:  Sept 24 – Nov 25 th [9 weeks]  Jan 21 – March 17 th week [9 weeks]  March 24 – May 19 th week [9 weeks]

23. Appendix

24. 24 Final Media Plan Budget$42,000 American School Board Journal$ 4,200 Education Week$ 9,369 Edutopia$ 6,500 eSchool News$ 7,000 Technology & Learning$ 6,000 THE Journal$ 7,998 Ad Serving Costs (estimated)$ 962 Total Media $42,029 Total Impressions (estimate/not guaranteed) 2,298,372 CPM (estimate)$ 18.29

25. 25 Newsletter Sponsorship Run Dates [Tech & Learning]: TechLearning Weekly FULL (2/27) [eSchool News]: eSN Tools for Schools (2/28) [Ed Week]: EdTech Trends (3/1) [Ed Week]: Edweek Update (3/7) [Edutopia]: Technology Integration E-Newsletter (3/8) [Tech & Learning]: SchoolCIO Newsletter (3/8) [eSchool News]: eSN This Week (3/12) [ASBJ]: School Board News e_lert (3/13) [THE Journal]: K-12 Tech Trends (3/14) [Ed Week]: NCLB Alert (3/15) [THE Journal]: THE Smart Classroom (3/15) [eSchool News]: eSN Today (3/26 through 3/30) [ASBJ]: Technology Leadership Network Newsletter (3/27) [Tech & Learning]: TechLearning Weekly 1/2 RUN (4/2) [THE Journal]: K-12 Tech Trends (4/4) [Ed Week]: EdTech Trends (4/5) [Tech & Learning]: SchoolCIO Newsletter (4/5) [ASBJ]: National Affiliate eUpdate (4/10) [Edutopia]: Edutopia Newsletter (4/11) [ASBJ]: School Board News e_lert (4/12) [THE Journal]: K-12 Tech Trends - *bonus* - (4/18) [THE Journal]: THE Smart Classroom (4/19) [Edutopia]: Technology Integration E-Newsletter (4/26) [ASBJ]: Technology Leadership Network Newsletter (4/30) [Edutopia]: Edutopia Newsletter (5/2) [ASBJ]: National Affiliate eUpdate (5/10) [Edutopia]: Technology Integration E-Newsletter (5/10) [THE Journal]: THE Smart Classroom (6/7) [Edutopia]: Technology Integration E-Newsletter (6/14) [Edutopia]: Edutopia Newsletter (6/27)

26. 26 Recap of Creative Testing Structure – Display Ads  Running the below 2 creative executions head-to-head within display ad placements to test & benchmark performance. They will receive even (50/50) weighting and rotation.  For those ad sizes that have width and/or height dimensions that will not fit a dropdown unit or list- box unit, this creative is flighted:  Ad Format: The Flash version of the banners will run in those display ad placements whose site specs permit it; the GIF version will run for all others, and as a back-up to the Flash ad.  Display Ad Sizes in Media Plan: 300x250, 336x280, 160x600, 120x600, 728x90, 580x90, 120x90, Logo & Text, 125x125

27. 27 300x250 728x90 336x280 580x90 Creative C:

28. 28 300x250 728x90 336x280 580x90 Creative B:

29. 29 125x125 120x90 These ad sizes have width and/or height dimensions that will not fit a list-box or dropdown unit, so will run this ad version: 120x600160x600 Creative A:

30. 30 Recap of Creative Testing Structure – Newsletter Sponsorships  Only one creative may run in each newsletter distribution (site specs do not permit multiple ads).  The following creative will be flighted for all newsletter sponsorships that have Banner placement:  For newsletter sponsorships that have Text placement, see slide 31.  For those newsletters that have 2 distribution opportunities, the following creative will run for the 2nd distribution, when ad size permits. For ad sizes that are too small for this execution, the above ad will run a second time.  Ad Format: GIF format required (no flash permitted), or Text.  Newsletter Sponsorship Ad Sizes in Media Plan: 300x250, 200x120, 150x160, 468x60, 728x90, 336x280, Logo & Text, Text.

31. 31 300x250 728x90 336x280 468x60 1 st Newsletter Distribution – Banner Placement 150x160 200x120 320x75

32. 32 1 st Newsletter Distribution – Text Placement

33. 33 2 nd Newsletter Distribution – Banner Placement [for those Newsletters with a 2 nd distro planned] 300x250 728x90  The follow ad sizes are too small for this creative execution, so the ad on slide 30 will run a second time for those newsletters with a second distribution opportunity: 200x120, 320x75, 468x60, 150x160.