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Q3 2018 HIGHER EDUCATION INQUIRY GENERATION REVIEW

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Q3 2018 Higher Education Inquiry Generation Review 3 Report Highlights Online program demand and conversion rates continued to rise: In addition to bringing in the predominant share of inquiry volume in Q3, with a 60% share of voice (SOV), online programs led for conversion rates in Q2 2018, increasing both quarter over quarter (10.4%) and year over year (11.8%). Third-party SOV increased: The growth in third-party share was the result of an increase in affiliate data leads and affiliate PPC leads, combined with a decreased share of internal website leads. Bachelor's degrees were the most popular and fastest-growing degree level: Bachelor's degrees had the highest SOV at 37.3% in Q3 2018. Volume was up 16.2% from the prior quarter and up 5.4% from the prior year. Business and health programs continued to dominate: The top program category in Q3 2018 was Health Professions and Related Programs with 39.9% SOV. Business Administration and Management, General was the top overall program and had the highest SOV for doctorate and master's programs and the second-highest SOV for bachelor's programs in Q3 2018. Q3 Inquiry Volume Trends • Higher education demand continued to increase in Q3 2018, driven by growth in online program inquiries. • Volume for all three quarters of 2018 exceeded each quarter throughout 2016 and 2017. • Q3 2018 overall inquiry volume increased 1.1% from Q2 2018 and was up 6.8% from Q3 2017. • Online program volume in Q3 2018 grew 9.7% over the prior quarter and was up 12.5% from Q3 2017. • Conversely, campus-based program volume fell 1.5% from Q2 2018 to Q3 2018 but was up 5.5% year over year (YOY). Inquiry Volume Change Inquiry Volume by Program Format QOQ YOY Inquiry Volume Across All Formats 4.84% 9.13% Campus-Based Program Inquiry Volume -1.49% 5.54% Online Program Inquiry Volume 9.55% 11.68%

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