FY11 First Half Online Campaign Report

December, 2010

Table of Contents

• Campaign Background– FY11 Objectives and Approach– Planning Parameters– Creative Review– Campaign Success Measurement

• Campaign Delivery– Overall Campaign Delivery– Performance by Site

• Creative Performance

• Key Findings– 2H Implications

• Appendix

Campaign Background

FY11 Objectives and Approach

Objectives• Raise awareness of potatoes’ health benefits among key target audience• Raise awareness that potatoes fit the needs and demands of our target consumers

Approach• Continue momentum from FY10 and use online advertising as an effective medium to deliver potato

nutrition and convenience message/recipes– Focus on recipe sites for maximum relevancy– Test new sites that reach Linda consumers that are lower/middle income– Includes health, wellness, family, and/or recipe edit

• Enhance message awareness through frequency on key sites– Two to four sites to ensure effective impression levels/visibility

• Sites will be measured for effectiveness based on agreed upon metrics

Planning Parameters• Timing: July 15- April 30

– July 15- Nov 18 measured for mid-campaign report

• Budget: $214,000 net– Ad serving fees included ($6,181)– $119,262 measured for mid-campaign report

• Geography: National

• Creative: Standard flash banners

• Target Audience: Linda– 25-54 year old female with children in the home– Frequently cooks meals and prefers to cook with fresh ingredients. She does research

online and in magazines for cheap, healthy, and family friendly dinners/meals. She wants to provide her family with tasty and healthy options without breaking the bank.

Creative Review

Campaign Success Measurement

• Before the FY10 online plan was implemented, it was agreed the following metrics would be used to determine the success of the campaign:– CTR– Recipes viewed– Recipes printed/downloaded

• Note, last three metrics above were included as key measurements to ensure we monitored activities that required a deeper interaction with the ads beyond CTR. These metrics ensure that the ads elicited a deep interaction with consumers thus increasing our ability to generate purchase intent and increase demand for potatoes at retail.

Campaign Delivery

Overall Campaign Delivery Partner sites drove heavy traffic to the Transform Potatoes landing page and encouraged even higher

campaign awareness levels (based on pure impressions) than in 2010.– CTR of 0.22% significantly exceed CPG industry standards of 0.09% for flash ads

Post-click engagement levels were significantly higher than those in 2010– Time spent on site and average page views both grew significantly from 2010’s already strong performance

The overall FY11 campaign to-date has been highly efficient– Although CTR is lower in FY10 vs FY11, the clicks were highly qualified and drove as many recipe interactions as the

higher click volume generated in FY10– Overall CPM to-date in FY11 is $1.66 lower than FY10 CPM

*Report dates: July 15-October 31

** Bold metrics represent outperformance in one year vs. another

FY11 1st Half Performance FY10 Performance

Total Impressions 11,205,644 7,856,842Total CPM $10.64 $12.30 Total Clicks 24,451 32,896

Click Through Rate 0.22% 0.42%Average Time Spent on Site 3:31 2:47

Average Page Views 4.65 3.63Recipe Views 37,652 37,793

Recipe Print/Downloads 5,277 5,313Total Recipe Interactions 42,929 43,106

Overall Campaign Delivery – Traffic Drivers

• All 4 sites generated above-industry-average CTR’s and drove high traffic volume

• AllRecipes.com and WeightWatchers.com had the highest CTR (0.24%) and drove the most visitors• Health and Wellness placements within all 4 sites were the most successful

• Although BHG drove the lowest CTR and cost efficiencies, post-click engagement of BHG visitors was highest in terms of page views and time spent on site

• Lower CTR vs FY10 may be driven by seasonality, “newness” of campaign, and expansion from more targeted to broader channel placements focused on increasing awareness

Site Impressions Clicks CTR Average CPC CPM Total CostAllRecipes.com 4,519,294 10,716 0.24% $4.00 $9.49 $42,885 MyRecipes.com 2,423,177 5,196 0.21% $5.04 $10.82 $26,210

WeightWatchers.com 2,497,791 6,088 0.24% $4.32 $10.53 $26,310 BHG.com 1,765,382 2,451 0.14% $9.73 $13.51 $23,854

TOTAL 11,205,644 24,451 0.22% $5.78 $11.09 $96,600

Key Post-Click Engagement Metrics

*Does not include recipe interactions from other traffic sources

• Post-Click engagement has risen significantly from FY10

• BHG.com drove the highest overall time spent on site and average page views

• AllRecipes and WeightWatchers drove the most recipe interactions

Site-By-Site Analysis

AllRecipes.com Performance The Daily Dish Newsletter sponsorship drove overall CTR down but helped drive high awareness by delivering nearly 1.5MM impressions

– Campaign CTR independent of the eNewsletter delivered at 0.31%

Food genre-specific channels performed very well for the campaign and should continue to be utilized in the future

Ability to deliver 100% 250x300 banner creative (proven to be the best-performing unit) helped drive CTR and post-click engagement

Text and Search Links continue to be solid awareness and click drivers

Placement Start Date End DateImpressions

Delivered Clicks CTRSide Dish Channel 300x250 07/15/10 10/15/10 384,529 1,552 0.40%Healthy Channel 300x250 07/15/10 10/15/10 462,442 1,667 0.36%

Best Performing Channel 300x250 08/16/10 10/15/10 524,639 1,416 0.27%BBQ & Grilling 300x250 07/15/10 08/15/10 81,318 393 0.48%Salad Channel 300x250 07/15/10 08/15/10 351,293 1,759 0.50%

Search Text Links 07/15/10 10/15/10 687,837 1,549 0.23%Recipe Text Links 07/15/10 10/15/10 533,429 1,055 0.20%

Picnic Hub Sponsorship 07/15/10 08/15/10 19,800 42 0.21%Daily Dish Newsletter 09/17/10 09/17/10 1,474,007 1,283 0.09%

MyRecipes.com Total 4,519,294 10,716 0.24%

AllRecipes.com Best Performing Channel Targeting

300 x 250

AllRecipes.com Integrated Search Text Links

655 x 36

AllRecipes.com Daily Dish Newsletter, 9/17

AllRecipes.com Best Performing Recipe Text Links

468 x 60

MyRecipes.com Performance

• Recipe Targeting was the clear outperformer of the first half of the FY11 MyRecipes plan– 2nd half of the FY11 plan should be optimized to focus more impressions against this unit

• 300x250 units across the board drove the most clicks

Placement Start Date End DateImpressions

Delivered Clicks CTRKid Approved Channel 300x250 8/16/2010 10/15/2010 103,913 187 0.18%

Kid Approved Channel 728x90 8/16/2010 10/15/2010 103,883 50 0.05%

Quick Easy Channel 300x250 8/16/2010 10/15/2010 248,114 508 0.20%

Quick Easy Channel 728x90 8/16/2010 10/15/2010 240,093 121 0.05%

Recipe Targeting 300x250 8/16/2010 10/15/2010 363,913 1,975 0.54%

Recipe Targeting 728x90 8/16/2010 10/15/2010 275,784 390 0.14%

ROC Healthy Diet 300x250 8/16/2010 10/15/2010 163,028 336 0.21%

ROC Healthy Diet 728x90 8/16/2010 10/15/2010 170,920 117 0.07%

Side Recipe Sponsorship 8/16/2010 10/15/2010 753,529 1,512 0.20%

MyRecipes.com 2,423,177 5,196 0.21%

MyRecipes.com Kid Approved Channel

300 x 250

MyRecipes.com Healthy Diet Channel

728 x 90

MyRecipes.com Quick & Easy Channel

728 x 90

MyRecipes.com Recipe Finder

728 x 90

MyRecipes.com Healthy Diet

300 x 250

BHG.com Performance

• The Food & Recipes Homepage sponsorship drove the highest site CTR (avg of 0.38%)

• Weekly Recipe newsletter placements drove awareness but were not efficient CTR drivers

• Although BHG delivered the fewest clicks, visitors to the Transform Potatoes page from BHG were the most engaged audience of all 4 sites

Placement Start Date End DateImpressions

Delivered Clicks CTRContent Placement – 728x90 8/15/2010 10/30/2010 187,513 156 0.08%Content Placement – 300x250 8/15/2010 10/30/2010 209,778 611 0.29%Daily Recipe Newsletter – 728x90 (ADDED VALUE) 8/19/2010 8/19/2010 95,834 91 0.09%Daily Recipe Newsletter – 160x600 8/26/2010 8/26/2010 98,049 193 0.20%Daily Recipe Newsletter – 300x250 8/19/2010 8/19/2010 48,130 132 0.27%Food & Recipes Homepage Sponsorship – 728x90 8/16/2010 8/22/2010 48,581 138 0.28%

Food & Recipes Homepage Sponsorship – 300x250 8/16/2010 8/22/2010 45,668 172 0.38%

ROADBLOCK - Content Placement – 728x90 8/15/2010 10/30/2010 181,637 156 0.09%

ROADBLOCK - Content Placement – 300x250 8/15/2010 10/30/2010 173,917 497 0.29%Weekly Recipe Newsletter – 728x90 (ADDED VALUE) 9/5/2010 9/11/2010 333,829 215 0.06%Weekly Recipe Newsletter – 300x250 9/5/2010 9/11/2010 342,446 90 0.03%

BHG.com TOTAL 1,765,382 2,451 0.14%

WeightWatchers.com Performance

• WeightWatchers.com drove the 2nd highest number of clicks to the Transform Potatoes page

• Health & Fitness channel CTR was exceptionally strong, averaging at 0.57%– 2nd Half of Campaign should continue to optimize to Health & Fitness inventory where possible

Placement Start Date End DateImpressions

Delivered Clicks CTRHealth & Fitness, Food & Recipes – 160x600 11/1/2010 11/30/2010 696,603 1,534 0.22%Health & Fitness, Food & Recipes – 300x250 11/1/2010 11/30/2010 270,650 3,458 1.28%

Community – 160x600 11/1/2010 11/30/2010 797,853 583 0.07%Community – 728x80 11/1/2010 11/30/2010 680,557 466 0.07%

Community – 160x600*Added Value* 11/1/2010 11/30/2010 52,128 47 0.09%WeightWatchers.com Total 2,497,791 6,088 0.24%

160x600

WW Food & Recipes/Health & Fitness

WW Food & Recipes/Health & Fitness

300x250

WW Community Channel

728x90

WW Community Channel

160x600

Creative Performance Analysis

1st Rotation Creative (7/15-9/10): Grilling

• Click rate and post-click recipe interaction between Kabobs and Grilled Potato Salad during the first months of the FY11 campaign was generally even– Click and interaction parity suggest equal appeal between both recipe creatives

• Seasonality of recipes most likely helped to drive strong CTR and interaction

0.25% CTR (49% of recipe clicks)

0.25% CTR (49% of recipe clicks)

0.26% CTR (51% of recipe clicks)

0.26% CTR (51% of recipe clicks)

2nd Rotation Creative (9/10-11/15): Fall

• The creative refresh proved successful, with overall CTR and recipe interaction rising in the last months of the first half of the campaign

• “French Fry” creative drove an overwhelming proportion of recipe clicks (49%) and recipe downloads (64%) once users clicked through to the landing page during the 2nd creative rotation

• “Soup” drove the fewest clicks and recipe interactions

0.30% CTR (28% of recipe clicks)

0.30% CTR (28% of recipe clicks)

0.30% CTR (23% of recipe clicks)

0.30% CTR (23% of recipe clicks)

0.31% CTR (49% of recipe clicks)

0.31% CTR (49% of recipe clicks)

Weight Watchers Test Creative (11/2-11/30)

• Both creatives performed above industry standards in terms of CTR

• “Think Again” creative ultimately drove the highest CTR (58% vs 42%)

0.25% CTR (58% of recipe clicks)

0.25% CTR (58% of recipe clicks)

0.22% CTR (42% of recipe clicks)

0.22% CTR (42% of recipe clicks)

Key Findings

Key Findings

• The online advertising campaign delivered impressive results and greatly exceeded industry standards– 0.22% CTR is more than double the industry benchmark of 0.09% and continues to grow with the

addition of WeightWatchers.com to the site partner mix.

• Online advertising continues to prove an effective medium to deliver the “Transform Potatoes” campaign and debunk the convenience myths surrounding potatoes– Efficient way to get our Quick & Healthy recipes in the hands of Linda– Reaches her in the most relevant possible mindset as she plans meals for her family

• Engagement within the Transform Potatoes is outperforming all benchmarks for CPG campaigns and is significantly outperforming the 2010 campaign in terms of page views (3.95 vs. 2.63) and time spent on site (3:30 vs. 2:49), indicating engagement with more Potato Board recipes and tips.

• Health-focused and occasion-related channels tend to perform the best for the “Transform Potatoes” campaign, most likely due to relevancy of messaging and an optimal consumer mindset

Implications for 2nd Half

• "Think Again" should be continued into the 2nd half of FY11 as it outperformed the 2nd “Transform Your Look” creative in November’s WeightWatchers’ test runs

• eNewsletters do not strongly deliver against Potato Boards’ primary goal of driving clicks to the Transform Potatoes landing page. Future inventory in these spaces should be redistributed or negotiated as added value

• Once visitors have landed on the landing page, the "Fries" recipe continues to drive the highest user engagement; accounting for around 60% of all recipe downloads. Any future creative messaging based on recipes may want to focus around the "Fries" creative/recipe.

• BHG investment should be lowered in the 2nd half of the FY11 campaign. We will continue to optimize in the 2nd half of the campaign across all sites to take advantage of the highest performing placements and creative units to-date.