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Free Directory Assistance: A New, Exciting Media Channel

Free Directory Assistance: A New, Exciting Media Channel. Lyn Chitow Oakes Senior Vice President, Marketing Jingle Networks. State of DA Market Today. $7.4B market in 2006, growing to $11.4B in 2010 (Pierz Group) 6.5B calls made to 411 each year

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Free Directory Assistance: A New, Exciting Media Channel

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  1. Free Directory Assistance: A New, Exciting Media Channel Lyn Chitow Oakes Senior Vice President, MarketingJingle Networks

  2. State of DA Market Today • $7.4B market in 2006, growing to $11.4B in 2010 (Pierz Group) • 6.5B calls made to 411 each year • Carriers continue to increase cost of DA; average nearly $2 per call • Major U.S. carrier testing free DA • De-regulation sought by telecom companies as alternatives crop up Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  3. What is FREE 411? • FREE411 monetizes the 411 call in the same way that Google and Yahoo! monetize paid Internet search • For consumers: a FREE alternative to costly 411 • Preferred by 74% of consumers • 3% market share in less than a year • For advertisers: a unique new media channel that delivers a captive, engaging, and targeted audience in a clutter-free environment • Highly targetable – location, consumer request, carrier, etc. • Ad response rates 2-4x other DR media • FREE411 is about consumers, it’s not about telecommunications • Success requires a very large audience and lots of advertisers : both National and Local • It’s the first step toward truly voice search Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  4. What do you dislike about 411? Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  5. Limit 411 Use Because of Cost? 74% yes Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  6. “411 Should be Free” Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  7. 74% yes Prefer to use a “FREE411” with Ads rather than Paid 411? Source: Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  8. 88% yes Would you use FREE411 More? Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  9. 1-800-FREE411 Calls Continue to Grow Millions of Calls Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  10. Benefits of FREE411 • Fills a market void, addresses a consumer need • Expands industry - more people making more 411 calls • Easier for customers to connect with advertisers • Supports de-regulation by giving everyone choice

  11. A 411 Call is a Proxy for Something Else • A consumer request for a phone number is a prelude to: • A call to find out the hours a business is open • A call to find out if something is in stock • A call to make a reservation • A call to make a purchase • All of these represent a consumer’s willingness and intent to spend money. This is an advertiser’s dream. Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE Source: Google, Yahoo!, Pierz Group, Kelsey

  12. What Paid Search Tells Us • Direct Marketing is Math: Businesses will pay for clicks as long as there is a ROI as measured in new customer acquisitions • Lawyer ($5.00-$100.00) • Mortgage ($5.00-$30.00) • Travel ($2.50-$7.50) • Auto Glass Repair ($3.00-$5.00) • If a business is willing to pay this much to find a consumer, why are consumers paying to find businesses? Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE Source: Google, Yahoo!, Pierz Group, Kelsey

  13. FREE 411 - ECONOMICS 101 • Traditional advertising is sold on a cost per thousand impressions (CPM) basis • Radio is typically $20-$30 CPM ($0.02 - $0.03) • Our “Switch Pitch” ads are typically sold on a “per connected call” basis • Depending on the category, success happens 1-5% of the time • Lots of calls can’t be monetized—broad and deep • Good Revenue per call is about $0.20 • Great would be anything north of $0.30 • The costs to handle the call have an important impact on the overall profitability of an ad supported network. Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  14. How Does it Work? Nuance Live Operator Caller dials 800-FREE411 Caller requests number Sponsor Message Targeted ad served to caller Hold for number Press 2 to connect to advertiser Number returned to caller Press 3 For SMS SMS or text message to caller w/ad Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  15. The Role of Speech Recognition • Great strides in the past several years • Enables 1-800-FREE411 to deliver an ad supported solution • Willing to challenge a couple of times • 50% of calls never touch a live operator • Major reduction in costs • Better recognition • Background noise filters • Consumer familiarity and use

  16. Speech Recognition Needs • Opportunity for further improvement • Accents • Natural Language Search “I need a plumber” • Better cellphone recognition • Solutions for more and better location granularity • Can do better than live operator in a shorter period of time through software • Full speech recognition call flow—say rather than press 2

  17. Jingle Key Milestones • Jan 2007: • Frost & Sullivan’s North American Growth & Strategy Award; • Hit 500+ advertisers (McDonalds, Absolut, 1-800-Mattress, 1-800 CONTACTS, Discount Tire, ID Media, Ingenio, OMD, Roto Rooter, Aegan Insurance, The South Beach Diet, Vonage and Zagat Survey) • Nov 2006: Serviced 100 Millionth Calls • Oct 2006: • Series C Financing with Goldman Sachs & Hearst as Lead investors • Saves Americans over $130M • Sept 2006: Launched SMS Text Messaging Capability • August 2006: Partner with Metro One • July 2006: AlwaysOn AO100 Private Company Award • May 2006: Partner with Broadwing Communications • April 2006: Partner with Nuance • September 2005: Launched 1-800-FREE411 Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  18. Summary • 1-800-FREE 411 fills a need and creates opportunity for consumers as well as advertisers • Cannibalization of existing services, but 1-800-FREE 411 is driving new usage • Consumers have voted --industry players need to devise strategies to co-exist and benefit • Speech Recognition partners are benefiting from new usage but need to continue to innovate • 1-800-FREE411 will continue to leverage speech recognition as a key component to delivering a strong caller experience. Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

  19. Q&A • lyn@free411.com • 650.617.6553 Jingle Networks, Inc. Confidential - DO NOT DISTRIBUTE

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