Return on Ad Spend = Cost Rising @ Faster Rate than Reach Facebook E-Commerce eCPM vs. CTR Y/Y Growth eCPM = +112% 120% In performance-based 80% [digital advertising] channels, CTR = +61% competition for top placement has obal Gl , reduced ROIs over the years & th40% been a source of margin pressure… Grow /Y - Glenn D. Fogel, CEO & President, Booking Holdings Y 0% Q3:17 Earnings Call, (11/17) -40% Q1 Q2 Q3 Q4 Q1 2017 2018 eCPM CTR Source: Booking Holdings Inc. (11/17), Nanigans Quarterly Facebook Benchmarking Data. Note: eCPMs are defined as the effective (blended across ad formats) cost per thousand ad impressions. Click-Through Rate is defined as the percentage of people visiting a web page who access a hyperlink text from a particular advertisement. CTR 75 figures based on $600MM+ of ad spend through Nanigan’s platform. In 2017, Booking Holdings spent $4.1B on online performance advertising which is primarily focused on search engine marketing (SEM) channels. The quote on the left relates to historical long-term ad ROI trends as competition across performance channels intensified.