Google Confidential and Proprietary

Adrian Mulryan, Rich Media Sales SpecialistTanzil Bukhari, Head of Buyside Solutions

20th May, 2011

Improving the Efficiency of Display

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Google Confidential and Proprietary

Display Reached a Tipping Point

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Google Confidential and Proprietary

Display Technology has Fundamentally Evolved

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InventoryLiquidityaudience access

DataLiquidity

audience info

Scalable Creativerich and right message

Google Confidential and Proprietary

Ad exchanges let you buy what you want, when you want,at the price you want, at massive scale

Inventory Liquidity: Ad Exchanges

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Ad exchangesequate to over 500

billion monthlyimpressions (and

growing)Over 75% of all non-premium displayinventory offered via adexchanges* and willinclude mobile and video

In 2 to 3 years*

Today

* According to ThinkEquity

Google Confidential and Proprietary

AdX – Benefits to the buyer

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• More transparency

• Increased level of control around how audience buysare executed

• Cost efficiency gained and hopefully a performanceincrease from traditional display buying

• RTB integration

• Technology agnostic

Google Confidential and Proprietary

Efficiently Reach Your Audience

Combine real-time bidding and reserve allocation to ownthe complete active and potential Best Buy audience

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Dynamic Allocation:Impression-by-impression

competition with other sourcesof demand

Real-Time Bidding:Impression-by-impression

access to all inventory

Open and neutral auctionwhere all bids compete

$- Max bid $- Floor price

Google Confidential and Proprietary

The value of the inventory is driven by the audience dataassociated with the impression.

Data Liquidity: Data is Driving Performance and Reach

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3rd PartyDataMedia Data Advertiser

Data

Registra)onData

ConsumerMatchData

SearchKeyword

PropertyType

Sitebrowsingbehavior

Seasonal/Promo)onalproductscoring

Mediabasedcategorymodeling

Frequencybasedsequen)almessaging

Audiencebehavior

Lookalikemodeling

Demographic

Conquest

Google Confidential and Proprietary

Scalable Creative: Rich is Becoming Richer

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Production Toolsor Services

QualityAssurance

Trafficking Toolsor Services

OptimizationTools

ReportingTools

Ad Serving for AllCreative Types

Benchmarking

Publisher RelationsServices

ConversionReporting

Increase inbrand recall

63%

Interactive vs

Non-Interactive ads

Rich media adimpressions

10%

Of total ad impressions

over the last few years

Google Confidential and Proprietary

Data is Enabling Relevance at Scale

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• Headline | weather based

• Product Images | weather based

• Product copy | Product based

• Local Lowe’s | IP zip code based

• Background image | weather based

• Call-To-Action | BT based

• Footer image| weather based

Google Confidential and Proprietary

2- [Rollover gifts boxes to revealproduct and copy]

4- [Refresh product button isrevealed after initial build]

Remarketing Dynamic Creative Examples

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1- [Initial ad build w/ interactive“open me!” buttons]

3- [Expandable ad with secondaryinformation and value adds]

Generic Sears Dynamic Ad

Viewer visits website and establishes interest

New retargeted dynamic ad is served up.

Google Confidential and Proprietary

Designing an Efficient Display Strategy

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Lower Funnel – Personalized Retargeting

•Plug the leaks in the lower funnel

•Convert more users

•Maximize efficiency and ROI

Upper Funnel – Message Targeting

•Broad buy to push volume into newly efficient funnel

•Dynamic creative chooses best offers, messages, andcreative elements for maximum performance

Mid Funnel – Market Segmentation

•Build audience personas off 3rd party data

•Message local offers and products

•Maximize reach

Google Confidential and Proprietary

Our Vision for Display Advertising

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Simplify Performance Open