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Sklik – PPC advertising from Seznam.cz

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SUMMARY

1. Seznam.cz - overview2. Seznam.cz&figures3. AboutSklik4. Sklik&figures5. SklikintheSearchNetwork6. SklikintheContentNetwork7. DisplayadvertisingintheContentNetwork8. ReasonstoadvertiseinSklik9. Graphicinterface10. Advancedfeatures11. SklikRetargeting12. Whyyoucan tdowithoutSklik intheCzechRepublic?

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Seznam.cz is a Czech company orien-ted to theCzechmarket. Itwas founded in1996 and from a one-man-company hasgrown into an organisation with more than1000employees,whoparticipate in the production of unique Internet solutionsandprepareuseful,simpleandreliableservicesandproducts.88%ofCzechinternetpopulationvisits thewww.seznam.czhome-pageatleastonceamonth.

Seznam.cz offers the most popularsearch engine, free e-mail box, andthe largest Czech yellow page data-base. On it s homepage it provides news, categorized information and entertainment.Seznam.cz offers more than 30 productsandservicesthatarefreeforusers,ofhigh quality and help users find the searchedfor solutions on the Internet. Through our effectiveadvertisingtoolswehelpourclientsand thus support enterprise in the Czech Republic. All Seznam.cz does aims at makingtheinternetthestrongestCzechme-diaandSeznam.czthefirstplaceofchoice.

1. SEZNAM.CZ – OVERVIEW

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2. SEZNAM.CZ & FIGURESThankstoSeznam.cz,CzechRepublicistheonlycountryintheworldusingRomanalphabetandGooglenotbeingNo.1on thesearchmarket.WhatmakesSeznam.czuniqueisthatunlikemanyother„local“searchenginesinEurope it has it s own technology for fulltext search.Already in 1997 itlaunchedKompas,it sownfulltextsearchengine.Aftersometime,theowndevelopmentofsearchtechnologyhasbeenhaltedbutSeznam.czresumeditagain in2004.OveronemillionCzechswereusing theSeznam.czownsearchtechnologyin2005.

Currently,Seznam.czisaclearleaderontheCzechmarket,andinternetNo.1,whichisprovenbyeconomicresultsfortheyear2012.In2012,Seznam.czendedwithoperatingprofitofCZK947million(€37million)withturnoverof2.83billionCZK(€110million).JustthesearchitselfandlinkedPPCadver-tisingaccount for30%of totalcompanyrevenues.Nowonder.Everyday,peopleenterover15millionqueriestotheSeznam.czsearchengine.Asoftoday,Seznam.czoperates27ownportalswithrealnumberofvisitsexcee-ding2millionusers/day.

seznam.cznovinky.cz

super.czidnes.cz

centrum.czsport.czblesk.czmapy.cznova.cz

prozeny.czstream.czheureka.cz

csfd.czfirmy.czaukro.czbazos.czdenik.czzbozi.czextra.czlide.cz

OP 20 most visited sites on the Czech internet (in RU*)

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NetMonitorstatisticsshowthatamongthemostsuccessfulportalsintermsofnumberofvisitsclearlydominatesitesoperatedbySeznam.cz.SitesunderSeznam.czarehigh-lighted in red colour.Forany furtherdetails anddetailedstatisticsyoucanvisitdirectlyhttp://www.netmonitor.czwhichisalsoavailableinEnglish.

*RU(realusers)-thenumberofInternetusersinthespecifictargetgroupwhogeneratedatleastonedisplayattheselectedwebserverduringthemonth(week,day).Thisindicatorcorrespondstotheactualnumberofpeople(notcomputers,cookiesorIPaddresses)whovisitedthewebserverinagivenmonth(week,day).

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3. ABOUT SKLIKSklikisadvertisingPPC(„payperclick“)systemoperatedbySeznam.cz,whichcandisplaytextadsinSeznam.czsearch,inpartnersearchenginesandalsotextandgraphicadsonthemostvisitedsitesintheCzechinternetwithinthecontentnetwork.UsingtheSklikPPCadvertising,anadvertisercan reacha largeshareof it s potential customers.PPCcampaignsarecurrentlyoneofthemosteffectiveformsofon-lineadvertising.

• focusedtargetingofprospectivecustomers

• CPCstartingatCZK0.20(€0.01)

• payforrealvisitorsonly

• accurateresultsmeasurement

• expendituresforadvertisingfullyundercontrol

• adswordingcanbechangedatanytime

What are the main benefits of PPC advertising in Sklik?

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4. SKLIK & FIGURESTheSklikadvertisingsystembringsdailyonaveragemorethanonemillionvisitorstotheadvertisersites.Thanks to the combination of the largest Czech search engine Seznam.cz and an extensive content network with the most visited sites of the Czech Internet every advertiser can reach more than 90% of the Czech internet population.

In the systemwe register over1.5 million active ads and thenumber of active ad accountshas already exceeded 18,000.The Sklik content networkconsists of more than 5,000partner sites, and their num-ber is growing every day. Theminimumcost per click is 0.20CZK and maximum possibleadjustable price is 1.000 CZK.Theaveragecostperclickinthewholesystemisapprox.3CZKbutitverymuchdependsontheindustryinwhichtheadvertiserplacesthead.

90 % of Czech Internetpopulation

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5. SKLIK IN SEARCH NETWORK

Adsaredisplayedonthemost used Czech search engine Seznam.cz,inthesearchresultsofZbozi.cz,Firmy.cz,ListEncyclopedia,inSeznam.czmobileapplicationsandinotherpartnersearchengines.PPCadvertisinginsearchisveryeffectiveasitallowstotarget people actively looking for specific information, product or service.Asaresult,usersareofferedanddisplayedadsrelevanttowhattheyshowinterestinduringtheirsearch.

AdsontheTOP position Upto8additionalads

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6. SKLIK IN THE CONTENT NETWORK

Sklik advertising is displayed not only in the search network but also as context advertising in the content networkonSeznam.czpartnerwebsites.Thesystemanalyzespagesoneachsiteandaccordingtotheircontentdisplayscontextuallyrelevantadvertising.Itisaveryeffectivewayhowtoadvertiseontopicorientedwebsites.Thecontentnetworkiscom-posedofagroupofthemostvisitedsitesontheCzechInternetandotherseveral thousandsofpartnersites thatdisplaySklikcontextadvertisingontheirwebsites.Everymonth,thecontentnetworkgrowsbythenewlyconnectedsites.

Advertisinginthecontentnetworkismoregeneral,itisthereforesuitableforaddressing a wide range of users.Thecontentnetworkissuitablealsoforproducts that are standardly not looked for in the Internet search engine.Itmaythereforebeconsumer goods-detergents,food,launchofneworotherspecificproductsthatarenotsubjectofqueries,a.e.speciali-zedsoftwareandcertainservices.Unlikecampaignsinthesearchnetworkwhereuser demand is met through the PPC advertising, as a contrary in the content network the demand is being created.

Inadditiontothemostimportantwebsites(seethefigure)thecontentne-tworkconsistsofhundredsoftopicorientedsitesaccordingtotheindividualfields.

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7. DISPLAY ADVERTISING IN THE CONTENT NETWORK

Apart from text ads, the content network alsooffers advertising through display advertising.It is a visual form of advertising with focus on performance and strengthening the brand.Displayadvertisingoffersadvertisersanewwayhow to get customers throughSklik.Banners more easily attract user attention,andwithspecificproductsthataremoredifficultto describe in text ads can yield significantlymore customers. Advertising through bannerspositively supports search rate of brand or product in the searchengineandknowledge of the brandorproductamongtheusers.Dis-playadvertisingisdisplayedatselectedsitesinthecontentnetwork(i.e.bannercannotbeseeninsearchresultsatSeznam.cz).TheseincludeAutoRoad.cz,HyperInzerce.cz,HyperPrace.cz,Fotbal.cz,KinoBox.cz,EuroZpravy.czandmanyothers.

WhatisthepriceofdisplayadvertisinginSklik?StandardlybyCPCasadvertiserswereaccus-tomedto,orbyCPT ie. Cost per Thousand.Iftheprimaryobjectiveofthecampaignis“tobeseen“ insteadofdrivingtraffic, theCPTmodelistherightone.TheminimumCPTis10CZK.

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Displayadvertisingofferstheuseofa large variety of formats,current-ly isatotalof24differentsizes.Themostsuccessfulbannersaccordingtoourstatisticsare the728 x 90, 300 x 300, 160 x 600, 468 x 60 and 250 x 250dimensions.Thesebannerformatsshoulddefinitelynotbemissi-nginsuccessfulcampaigns.

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8. REASONS TO ADVERTISE IN SKLIK

Sklikprovidesadvertiserswithquickandeasywayofadvertisingon thePPC pay-per-click´ principle. Advertising ispaid only after a potential customer clicks on the ad.Adsaredisplayedonly touserswhohaveenteredaqueryintothesearchenginethatmatchesoneofthekeywordsfromPPCcampaigns.Sklikprovidesatoolfordesignofkeywordsintheinterface.Thistoolisusedforthedraftofkeywordsandphrasesthatmaybecloselylinkedtoadvertising.

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OneofthemainadvantagesofPPCadvertisingisspecifictargetingthoseinternetuserswhoactivelyseektheadvertiser‘sproductsorservices.PPCsystemsallowtorespondveryflexiblytomarketneeds(a.e.tolaunchanewcampaignrelatedtocurrentpromotionsornewproducts).Anotheradvan-tageisthatPPC advertising is measurable.Usingwebanalyticstoolsitisconsequentlypossibletodetermine whether the funds invested in PPC campaigns are being spent effectively.

Advertiserscandisplaytheiradsinuptothree so-called TOP positions positionedabove theSeznam.cznaturalsearchresults.Adson theTOPpositionsarerankedtobethemostvisibleandwiththehighestprobabilitytheuserclicksonthem.Additionalupto8positionsarepositionedtotherightfromthesearchresults.Sklikshouldbeusedevenifwithinthefull-textsearchresultstheadvertiserisdisplayedonleadingpositions.

Sklikalsoenablestochoosethemostappropriatelandingpageforeachkeyword–forexamplearelevante-shopcategory,aptlysitewithcurrentclearancesaleofpartoftheadvertiserproducts.Insuchcase,theadver-tisercanappreciatethattheclearancesalecanimmediatelybepromotedalso in thead. Inaddition,Sklikoffers theopportunity to testseveraladoptionsandevaluatethembothintermsofCTR–ClickThroughRatesandtheConversionrate.

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9. GRAPHIC INTERFACE

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10. ADVANCED FEATURES a) Regional targeting

Regionaltargetingisusefulforadvertiserswhowanttoreachusersinapar-ticularcity, region or geographic area.Priortousingitshouldbeconside-redwhatregiontheusers–potentialcustomerssearchingforadvertiser sofferarefrom.

Thebenefitsofregionaltargetingadsincludetheabilitytotarget exactly potential customers, provided they are in a specific region.Useofre-gionaltargetingincreasescompetitivenessofadvertiseradsastheirlocali-zationmakesthemmoreattractiveforusers.

Regionaltargetingalsoenablestousedifferentadsfortargetingdifferentregionsthus responding to different users needsinthoseregions.

Regionally targeted advertising thus ensures increased clickthrough rate(CTR)andareduction in the price per click (CPC),actually improve-ment of ad positionsandmoreefficientuseoffunds.

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b) Extending Sklik advertising for locality (link to the entry in the Firmy.cz catalogue)

TheadvertisercanlinktheadswithbusinesslistingatFirmy.cz.Incaseofsuchlinkthead additionally includes also the address of the company. IfyouradappearsattheTOPposition,corporatelogo,address,mapandlinktothebusinesslistingwillbealsodisplayed.

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c) Scheduling

Sklikadvertisingsystemallowstospecifytimeintervalinwhichtodisplayadsinthecampaign,andalsothepercentage adjustment in the maxi-mum CPCforgroupsandkeywordsinthegiven time interval.

d) Conversion

Apartfromattractingnewuserstothelandingpage,theaimofadvertisingusuallyalso is that the user completes an action that has a specific importance to the advertiser.Conversionisastatuswhenthesitevisitorfulfillstheobjectivesetbyadvertiser.Thismayforexamplebean order, registration, newsletter subscription, downloading demo programme, displaying pricelist or other significant site.Basedonconversionme-asurements, theadvertiserhastheopportunitytomonitor and evaluate ad effectiveness and return on investment (ROI).ThestatisticsgivetheadvertiserdataonhowmanyconversionshavebeencarriedoutbysitevisitorscomingthroughtheSklikcampaigns.Itispossibletomeasurenotonlythenumberofconversionscarriedoutbutalsotheirvalues.

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11. SKLIK RETARGETINGRetargetingisatooldesignedtoapproachuserswhohavealreadyoncevisitedyourwebsite.

Youplace theSklik retargetingcodeonyourwebsite.Through this codeSklikrememberswhichURLhaseachspecificuserofyourwebsitevisited.YouthencreatelistsofuserswhovisitedthoseURLthatareofcommercialinteresttoyou,andyoumatchcorrespondingSklikadstotheselists.Thesearethendisplayedtotheusersinthecontentmarketingnetwork.

Through Retargeting you can target your ads to users who:

• browsedyourwebsitewiththeofferofyourproductsorservicesbut havenotdoneanypurchaseorhavenotcompletedit.Youcanthus approachthemagain,aptlycomeupwithaspecialoffer.

How does it work?

Havethevisitorsbrowsedyourwebsitebuthavepurchasednothingyet?

Doyouwanttoofferyourexi-stingcustomersaccessoriesorafter-saleservice?

Doyouwanttoapproachcustomerswhowillpurcha-seonaregularbasis?

Purchased

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STUDENTAGENCYk.s.,Dovolená.cztravelagency

Since the beginning of December, the number of orders generated by Sklik on the Dovolena.cz website increased by 81%, compared to search through retargeting campaigns.

Přemysl Vícha, Director of Business and Marketing

• purchasedaproductorserviceandyouthenwanttoofferthem accessoriestotheseproductsorotherafter-sale/additionalservi- ces.

• arelikelytorepeatthepurchase.Exampleofthistypeofusersare contactlenswearers..

• havevisitedyourinformationwebsiteandyounowwanttooffer themyourkeyproductorservice.

• haveusedatime-limitedfreeversionofyourproduct/serviceand younowwanttoofferthemapaidoption.

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12. WHY YOU CAN´T DO WITHOUT SKLIK?

• Precisekeywordtargeting

• Adetailedoverviewoftheperformanceandresults ofthecampaigns

• Paymentforrealclicksonly

• Budgetfullyundercontroloftheadvertiser

• TargetingnotonlyintheSearchbutalsointheContent network

• ThemostvisitedCzechInternetcontentsiteswithintheSklikcontentnetwork

• Compatibilityinsearchwithotheradvertisingsystems

Additional benefits the Sklik PPC advertising offers the advertisers:

• PPCadvertisingonthebiggestCzechsearchengine– Seznam.cz

• Seznam.czrecordsover15millionsearchqueriesonadailybasis

• IfanadvertiserwantstobeseenonCzechInternethe cannotmissSeznam.cz

• Hitting9outof10InternetusersintheCzechRepublic

• Oneofthemosteffectiveformsofonlineadvertising

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Seznam.cz,a.s.|Radlická3294/10|15000|Praha5http://www.seznam.cz|e-mail:info@firma.seznam.cz

tel.:+420234694111|fax:+420234694115