Review of Mobile Activities FY13 Q1

1. Review of Mobile Activities FY13 Q1 Prepared by Joule DRAFT v8

2. Agenda • Q1 Promotional Campaigns • Q1 International App Download Campaigns • Next steps

3. Q1 Promotional Campaigns

4. Q1 Objectives for Promotional Campaigns • Q1 objectives for promotional campaigns • Identify the most effective sources of traffic to drive to m.dell.com • Test additional paid media segments • Identify the audience behaviors most likely to drive sales • Drive incremental transactions • Campaigns launched • Presidents’ Day • Spyder XPS 13 – Phase 1 • Spyder XPS 13 – Phase 2

5. Overview: Extension the Presidents’ Day promotion to the mobile channel Dell.com and M.Dell were main activation points No mobile media deployed KPIs: ROAS Transaction volume Landing site conversion rates Dates: February 15–20, 2012 Campaign overview

6. Primary campaign flow Dell M-Commerce Site Dell.com and M.Dell.com Dell.com and M.Dell.com

7. Presidents’ Day Results 2/15 – 2/20 • Revenue Per Cart Visit (RPV) in line with the historical range of $2 - $4 per visitor from organic source. • Important to note that revenue numbers do not include click-to-call nor 30-day look back • Significant discrepancies seen in attribution of m.dell.com visits to traffic source

8. Spyder XPS 13 – Phase 1 • Overview • Build interest and awareness around a XPS13 product launch and, ultimately, drive transactions • Program components: • Mobile landing page and paid mobile media. Site features included: • Product information • Social media integration • Product videos • Mobile media • Display • Rich media • Organic sources • M.dell.com banner • Dell.com redirect

9. Campaign Flow Activation points: M.Dell.com banner Dell.com Mobile display media Rich media XPS 13 Micro Site Dell M-Commerce Site

10. Phase 1 Launch Results 3/3 – 3/22 • Primary test objective was the effectiveness of premium, tech-focused inventory (PCWorld) • Weather inventory from a network was also run and used as the benchmark • Animated and static banners deployed against both segments • Search was initially scheduled to run, but concerns at Dell about Dell.com re-directs postponed the flight • CTR was more than twice as high on PCWorld inventory • However, the higher price of PCWorld made the CPC and eCPM significantly higher than the Weather inventory

11. Phase 1 Launch Results 3/3 – 3/22 • Conversion rate for traffic from m.dell (52%) and dell.com (54%) was the highest for any campaign to date except for Holiday • Significant discrepancies seen in attribution of m.dell.com visits to traffic source. Also, revenue per visit was far below historical range of $2 - $4. • Conversion rate was much higher for PCWorld, but the higher media cost caused the Cost Per Conversion on PCWorld to be significantly higher than Weather. • $3.54 for Weather vs. $19.87 for PCWorld

12. Phase 2 Extension Approach 3/28 – 4/14 • Three primary test objectives for Phase 2: • Rich media: Deployed high impact ad units targeting weather and business content from a network, plus PCWorld • Additional contextual segments: Deployed banners targeting News, Tech, Weather content as well as new content areas Music, DIY, Health and Wellness. • Behavioral targeting: Utilized Millennial Media’s new Audience Intelligence Product used third-party data sources to enhance targeting

13. Phase 2 Extension Results 3/28 – 4/14 • Results: • Overall media conversion rate dropped from Phase 1 • M.dell banner and dell.com redirects both down approximately 20%, likely do to initial buzz of launch subsiding • The behavioral test, using Millennial’s Audience Intelligence product, which is sold at a $10 CPM, was not effective and resulted in an extremely high cost per conversion. • Of the contextual segments, Weather preformed best (historically best performing content) with News and DIY (new content category) following.

14. Rich Media Results • Rich media expandable units were run on both PCWorld and network (Weather and Business) inventory at comparable CPM’s • The CTR on PCWorld was higher, leading to a lower cost per click • In addition, a higher percentage of PCWorld users (16% vs. 5%) click from the ad unit to cart, leading to an significantly lower CPV • Cost per visit, however, was still 12.5% higher than display banners in Weather inventory

15. Key Learnings • Contextual targeting continues to be most effective approach for display media • Engagement with Rich Media was very high, but overall cost of media did not produce cost effective results • Likewise, the premium tech inventory created high engagement, but was not cost effective • Attribution issues are becoming more pronounced • Tracking test recently competed and awaiting results

16. Global App Download Campaigns

17. Objectives Set benchmarks for UK and AU for app download through paid media Explore new avenues for drive downloads in the US Program components: In UK and AU, app download campaigns were launched with Google Google was selected due to their ability to track and verify downloads through Google Play. Ran a mix of display banners and text and tile units across both markets. iOS was not targeted In US, banners were run in IDG/PCWorld’s online app guide, which drove to Google Play and the App Store Global App Download

18. UK and AU Primary Campaign Flow Mobile Media Banners Google Play

19. UK Results 4/3 – 4/10 • Similar to the US, conversion rate in the UK (.51%) was well below the industry average of 2% - 5% • No sign of CPD decreasing with time, indicating a lack of optimization by Google • If optimization could create the same drop in CPD as seen in the US (close to 75%), paid media could create an acceptable CPD.

20. AU Results 4/2 – 4/14 • AU conversion rate lowest of three countries (.34%), resulting in very high CPD • Even with optimization, it is unlikely the this paid media could create a reasonable CPD in AU.

21. US App Download Test • To explore the new avenues to drive downloads, media was run in the online (desktop version) app guide on PCWorld.com targeting both iPhone and Android

22. Online App Guide Results 3/29 – 5/10 • While CTR was strong for a typical web placement, the cost of the media made the CPC and projected CPD very high • CPD $35.04 with estimated 10% conversion rate • CPD $70.07 with estimated 5% conversion rate • CPD $175.18 with estimated 2% conversion rate

23. Key Learnings • Conversion rate remains stubbornly low across geographies, resulting in a high cost per download • In this context, Conversion rate defined as percentage of consumers who arrive at download page in Google Play or App Store and then successfully download app • Google continues to be unreliable in efficient execution of campaigns • If there can be a commitment from Google for proper optimization, further tests in the UK may be warranted • Any should include a lower per-day spend to allow for more focus on the ‘sweet spot’ and more time/data for optimization • The CPC generated by online CPM-based media very likely not cost effective

24. Next steps

25. Next Steps • Media tests targeted for Q2 • Geo-fencing • “Bridging” between online and mobile • Mobile DSP • Search • Additional activities • 30-day look back analysis • Tracking test

26. Appendix

27. Mobile Microsite

28. Standard Media Banners 320x50 Static Animated 300x50 Note: to see animation, please view in slideshow mode

29. Rich Media Experience Animated Banner Expandable Unit

30. US Results – Google App Download

31. Phase 2 Extension Results 3/28 – 4/14

32. Phase 2 Extension Results 3/28 – 4/14 To be updated with Omniture data from Dell

33. Thank You Melinda Toscano melinda.toscano@jouleww.com O +1.212.796.8363 M +1.203.232.7630 Michael Collins michael.collins@jouleww.com O +1.212.796.8382 M +1.917.509.0275