Slide 1: (NYSE Amex: INUV) May 2012
(NYSE Amex: INUV) May 2012
Slide 2: Forward-looking Statement
Forward-looking Statement Certain statements in this presentation relating to Inuvo®, Inc. ("Inuvo") contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. All forward-looking statements included in
Slide 3: About Us
About Us Inuvo®, Inc. (NYSE Amex: INUV), an Internet marketing and technology company specializing in browser-based consumer applications, managing networks of website publishers and operating specialty websites. The Company operates amongst three distinctive business lines: • Software Search • Publ
Slide 4: Lines of Operations: Software Search
Lines of Operations Software Search (Approximately 50% of Annual Revenue) • Consists of websites that assist users in the search, navigation, or management of everyday information • alOt Appbar and Home Page search business, which currently has over 7.4 million worldwide users, is expected to genera
Slide 5: Lines of Operations: Publisher Network
Lines of Operations Publisher Network (Approximately 25% of Annual Revenue) Third-party Publishers • Liaison between advertisers and publishers, facilitating performance-based advertising • Anchored by a long-term relationship with Yahoo! and Bing, Inuvo distributes sponsored search advertisements a
Slide 6: Lines of Operations: Publisher Network, Owned & Operated Websites
Lines of Operations Publisher Network (Approximately 25% of Annual Revenue) Owned & Operated Websites • Inuvo’s owned and operated websites monetize search revenues through its partnerships with the nation’s largest search engines
Slide 7: Lines of Operations: Partner Programs
Consists of: • Display revenues • Affiliate programs • Data sales • Kowabunga® • BargainMatch® • Inuvo just launched its Kowabunga® initiative, which aggregates local daily deals from rural and suburban businesses and provides those deals to the rural consumer • BargainMatch® provides cash-back ince
Slide 8: Competitive Advantage
Competitive Advantage • Strong strategic relationships with market leaders Google and Yahoo! • Recent integration of the alOt Appbar and Home Page provide scale and distribution for Inuvo’s properties and applications • By owning various web properties, Inuvo has more flexibility to control traffic
Slide 9: Industry Overview
Industry Overview Market Size in Excess of $70 Billion • Global Search Market is over $40 Billion • Affiliate, Local Deals and Consumer Applications Market of $2.4 Billion, Forecasted @ 20% CAGR • Mobile internet usages accounts for 8% of the market, however it is rapidly expanding due to improved s
Slide 10: Acquiring Users: PPC Ads
Acquiring Users: PPC Ads Step one: long tail keyword buys across the major PPC engines User clicks on Ad
Slide 11: Acquiring Users: PPC Ads
Acquiring Users: PPC Ads Step two: users are taken to keyword related landing pages
Slide 12: Acquiring Users: PPC Ads
Acquiring Users: PPC Ads The alOt Appbar Installation Fully transparent installation process: • Ensures compliance with TRUSTe, McAfee and anti-spyware groups • Pre-qualifies alOt users • Enables cross-sell / bundling of other alOt products Step three: the product download and installation process
Slide 13: The alOt Appbar
The alOt Appbar User can then add more apps from the alOt App Store Installation
Slide 14: Search Market: Monetizing alOt Users
Search Market Pay-Per-Click Ads 16.1M global ad clicks 128.8M search queries in March ‘12 Monetizing alOt Users
Slide 15: Inuvo shopping deals page
iINUVO. Garmin nuvi 2300LM 4.3 Widescreen Portable GPS Gave $110.00) Free Shipping Garmin nuvi 230010 4.3 widescreen $89.00 (Save 55%) Zmodo 4 Channel DVR Security $134.99 Gave 55%) a Black & Decker 114 Piece Drill Bit Set $15.99 Gave 41%) ‘wolfgang Puck Rice Cooker w/ $29.99 Gave 63%) Search eBay f
Slide 16: Rural Market - Local Deals: Kowabunga
Rural Market - Local Deals Kowabunga®
Slide 17: Featured Oval
Featured Oval $10 for food at IHOP! $10 =e —— = — qeor34t $20 mabsshoie estan Ome Messe Clits Momus Tatar oil, Miasimiean ha actin Track Packages ow re Fis Deeper By Alotcom Description Screenshots Fat Mons Gift Inroretvo UPS DHL. Holiday Cords Start $e 1102011 FedEx cor Seat atings Inari Fs custom
Slide 18: Inuvo Entertainment
iINUVO. QENTERTAINNENT
Slide 19: Marketed in Countries in Different Languages
Marketed in 24 Countries in 7 Different Languages Inuvo’s Worldwide Presence
Slide 20: Growth Strategy
Growth Strategy Diversification • The new Inuvo has a broader product portfolio allowing us to expand the business and enabling us to exploit established strategic partnerships across multiple products New Market Development • Many of our existing applications can be modified for delivery into the r
Slide 21: Select Market and Financial Information
Symbol: (INUV) Fiscal Year End: December 31 st 52-Week Trading Range: $0.67 - $4.49 Stock Price: * $0.75 Shares Outstanding: 23.1 Million Market Cap: * $17.6 Million Pro Forma 2011 Revenue $64.1 Million Pro Forma 2011 Gross Margin 41.8% Analyst Coverage Craig-Hallum Select Market and Financial Infor
Slide 22: Financial Highlights
Financial Highlights • In Q1 the combined operations generated approximately $8.8 million in revenue o This number reflects three months of Inuvo revenue and one month of the Vertro subsidiary revenue • The combined post merger enterprise is expected to have operational savings of $2.9 million annua
Slide 23: Combined Companies Key Metrics
Metric (averages) Q1 2012 Q4 2011 Q1 2011 ALOT Downloads* 8.4 6.2 11.3 ALOT Live Users* 7.4 6.4 9.1 Global Ad Clicks* 42.9 51.9 68.0 Global Mkt Spend* $4.3 $4.8 $7.8 Headcount (1) 45 53 93 * all figures in millions Combined Companies (1) Excludes in transition employees and open positions
Slide 24: Peer Valuation
Company Name Symbol Revenue (TTM) 12/31/2011 Market Cap (4/13/2012) Market Cap/ Revenue Inuvo, Inc. (Post Merger Pro Forma) INUV $64.1M $ 17.6 M 0.27 LookSmart, Ltd. LOOK $27.6 M $ 16.25 M 0.59 Perion Network, LTD PERI $35.5 M $ 47.8 M 1.34 Local.com Corp. LOCM $ 78.8 M $ 54.9 M 0.64 Marchex, Inc. M
Slide 25: Management Team
Management Team Peter Corrao, Chief Executive Officer • Former President and CEO of Vertro, Inc. before its merger with Inuvo in 2012 • More than 25 years of executive level management experience • Served as CEO of Bluestreak.com, a digital marketing products and services for both business-to busine
Slide 26: Management Team
Management Team Richard Howe, Executive Chairman • Previously served as Chief Executive Officer for Inuvo prior to merger with Vertro, Inc. in • Former Chief Marketing/Business Strategy and M &A Officer at the Acxiom Corporation (NASDAQ: ACXM), a $1.4 billion annual revenue global interactive market
Slide 27: Management Team
Management Team Rob Roe, General Manager • Former General Manager of Vertro’s Alot.com business before its merger with Inuvo in • Original Product Manager of Alot’s core software products • Attended Columbia Business School MBA program and Graduate of Carleton College
Slide 28: Investment Highlights
Investment Highlights • The Software Search and Partner Programs Lines of Operations are expected to have high organic growth • Inuvo is expected to access over 132 million unique Internet users per month • Inuvo’s has established strong business relationships with Yahoo!, Google and Bing • By ownin
Slide 29: THANK YOU
THANK YOU
Slide 30: Contact Us
Contact Us Investor Relations Alliance Advisors, LLC 420 Lexington Ave Suite 855 New York, NY 10010 www.allianceadvisors.net Alan Sheinwald, President (914) 669-0222 asheinwald@allianceadvisors.net Inuvo, Inc. 143 Varick Street New York, NY 10013 www.inuvo.com Peter Corrao, CEO & President (212) 231