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SparkPeople Confidential | 2011 SparkPeople All Rights Reserved. 2

Overview

Presentation Overview Team History: It can happen in Cincinnati

Who is SparkPeople

Our mobile experience & approach get out there andkeep expanding

Key takeaways to be there & future of mobile

Todays Goals:Mobile is here to stay. Well provide a few tips and strategies to start capitalizing now as part of a longer

terms plan

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Who is SparkPeople

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Team History: It Can Happen In Cincinnati!

Personal Story -- anyone can use these techniques

Anxiety shyest kid in class

Trapped yo-yo fitness

Corporate life: Dont be like Larry!

Combine exercise and goal setting

Ten Minute Fitness Streak control destiny

More likely to stop at gym instead of Taco Bell

Exercise tipping point more work at first vs. benefits

Wanted to improve in all areas of life

I can do anything!

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Who is SparkPeople

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It Can Happen In Cincinnati!

Pat Story at Procter & Gamble:

Your daily actions and words impactmore people than you realize!

How many people could you Spark?

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Who is SparkPeople

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Team History: It Can Happen In Cincinnati!

Up4Sale.comeBays leading competitor

Team = 4 UC grads & 1 UC co-op

$50K on credit cards

Support of small team

Bootstrapping: ice storm/no brakes

eBay acquired us their first acquisition

Met wife at eBay

Approximate $100 million internet exit on $100K capital

http://images.google.com/imgres?imgurl=http://baikong.files.wordpress.com/2008/12/ebay-logo.jpg&imgrefurl=http://baikong.wordpress.com/2008/12/&usg=__vdPkqQt6h4ILs6MZzd0cXa8eAic=&h=352&w=640&sz=16&hl=en&start=1&sig2=7VUanos72P2CLeFckxiVhA&um=1&tbnid=FvKbuOGRKwxG1M:&tbnh=75&tbnw=137&prev=/images?q=ebay+logo&hl=en&sa=X&um=1&ei=Y1_aSd2hA6XmlQehz7DgDA

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Who is SparkPeople

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Team History: It Can Happen In Cincinnati!

From shy kid to realizing my mission in life was to help other people reach their goals

Started new company to SPARK millions of PEOPLE to reach their goals

Added one great person at a time to our team team includes members

Continuous improvement based on member feedback

We LOVE being a Cincinnati-based tech company on a national stage!

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Who is SparkPeople

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SparkPeople Overview

35 employees today, 25 in Cincinnati

Became largest diet and fitness site in2009

Helps members be healthy through acombination of:

Trackers calorie tracker, fitness logs, etc

Content articles, recipes, & more

Community teams, friends, messaging

Primary revenue driver is sponsorshipsales, but also publishes books, DVDs,and more

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

Jan,

2009

March

May

July

September

November

Jan,

2010

March

May

July

September

November

Jan,

2011

March

May

July

September

November

Jan,

2012

SparkPeople Unique Visitor Growth(Google Analytics)

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Our Approach & Experience

* Source: SparkPeople Registration Data (remaining from 2010 user survey. n=23,000) 8

Our Original Mobile Approach

Since our founding in 2001, we monitored the overallpenetration of mobile devices, especially within ourtarget female demographic

We evaluated Palm, Blackberry, Treo, etc

We were not sure what to make of the iPhone when itlaunched in June 2007

By mid-2008, even though we were growing quicklyonline, we realized the potential of the iPhone andmoreso the iTunes App Store and started devotingresources early to mobile

We launched our first iPhone app in February 2009 We create an app with our most used tools calorie and

fitness trackers

We chose iPhone because it had a better app experienceat the time

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Our Approach & Experience

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Early Learnings

In our first month we were surprised atthe early adoption in our target market;with 10,000 downloads the first monthwe realized we were onto something

The key was (and still is) the App Store We drove our members to get the app,

which raised our ranking in iTunes

Non-members then found our app anddownloaded

This became a major source of new

members, essentially with freemarketing by the App Store

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Expanding Our Offerings After seeing our iPhone success, we launched a 2nd application

(Healthy Recipes) and launched applications on more platforms

iPhone Tracker February 2009

iPhone Recipes December 2009

Android Recipes December 2009

Blackberry Recipes December 2009

Blackberry Tracker February 2010

Android Tracker March 2010

iPad Tracker September 2010

iPad Recipes April 2011

iPhone Paid Perfect Produce April 2011 iPhone Quote of the Day January 2012

We had the same success on all platforms seed app with ourusers, see our ranking rise in app store, get non-member downloads

Our Approach & Experience

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Mobile Benefits to SparkPeople

Marketing & Member Experience Over 6MM lifetime downloads of our apps; based on how we pay to acquire members,

a rough model would value our free marketing done by apps at over $10MM!

Also a defensive position against diet startups

Weve worked to integrate mobile with web to maximize member experience

Drive mobile registrations to web for expanded community, content, etc Offer mobile to web registrations for convenient use on the go

Monetization

Advertising is still in transformation lots of inventory, and brands figuring out what todo (we are seeing some agencies/groups specializing in mobile buys)

Weve had some success with custom integrated sponsorships Weve tested networks (Apple iAd, Google); fairly low fill rates, only $.50-$.75 eCPM

We are testing paid apps, with model of driving users from free apps to paid apps; wewill likely continue to innovate with new paid apps

We have had early success with driving purchase of our other products (books, DVDs)

Our Approach & Experience

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How should you be there?

Chose what features and functionalities you should move mobile What is your core functionality/product?

What works well on mobile? What can be done with lessinteraction/screenspace? What do people want on the go?

Think about any unique/proprietary content you have

Free, paid, or freemium?

Choose a platform

Wed choose Apple or Android, since the user base and stores are so robust

HTML5 is interesting to watch; however there currently is not an app store todrive downloads

Check with tech team, which are they most comfortable with?

Once you build on one platform, its typically easier to build same app on 2nd

Launch, learn, and expand

Drive your customers to download app; then get benefit of higher storeranking, and more free/new customers

Learn from how customers use your app and decide what to do next; expandapp, launch new app, launch on new platforms

Takeaways

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Future of Mobile

For SparkPeople

We will invest more and more in mobile; this year mobile is 30% of our usage, lastyear was 20%; we will watch and adjust our strategy

Keep an eye on native applications (iTunes/Android) vs browser based(HTML5/etc)

Keep looking for new and different ways to monetize our mobile members

The industry

Keep an eye on the platform wars; Microsoft still has a chance

Mobile is likely not going away, but dont forsake desktop yet

YOU HAVE TO BE THERE!

Dont rely exclusively on 3rd party and media research

Your consumers have a unique link with you and your products; by meetingthem on mobile sooner than later, you can learn what they want and will use

Takeaways