The E.T.T.A. Equation

AppNexus Inc. — Confidential!1

JC Conti, VP Publishers, EMEA!

Evolution of Programmatic Publishing:!

2

is the world’s leading independent advertising

technology company!

It’s big. !Really big.!

AppNexus Inc. and Circle Research Ltd; 2015

3

of Global respondents feel that programmatic will play an important or dominant role in the future of digital advertising !

91%!

Advertising Growth will come from Programmatic

AppNexus Inc. - Confidential – Not for Distribution 4!

Global Advertising 2015 – 2019 . In Bn $!

Source:  IDC  and  AppNexus  es4mates  

GlobalAdvertising!

$623

4.98%!

CAGR!

Digital!Advertising!

$246!

11.53%!

CAGR!

Programmatic!Advertising!

$61.9!

20.56%!

CAGR!

Rational benefits have driven strong adoption

AppNexus Inc. - Confidential – Not for Distribution 5!

AppNexus  Inc.  and  Circle  Research  Ltd;  2015  

Targeting Automation Real-time

PROGRAMMATIC 92% media buying agencies…  

67% totalecosystem…  

61% Publishers  

Still: Challenges of adopting programmatic

AppNexus Inc. - Confidential – Not for Distribution 6! AppNexus  Inc.  and  Circle  Research  Ltd;  2015  

So how to tackle those hurdles:

AppNexus Inc. - Confidential – Not for Distribution 7!

Lack of understanding on how programmatic works

Fear of Advertising appearing on undesirable sites

Lack of transparency on where advertisements end up

Technical Complexity

Evangelization & Training

Operate in a Trusted

Marketplace

Create Greater Transparency

Improve Automation to Increase Yield

E+T+T+A

Evangelization & Training

AppNexus Inc. - Confidential – Not for Distribution 8!

Operate in a Trusted Marketplace

• Aggressive Policies

• Product & Technology

•  Initiatives

AppNexus Inc. - Confidential – Not for Distribution 9!

AppNexus Inc. - Confidential – Not for Distribution 10!

 $-­‐        

 $0.10    

 $0.20    

 $0.30    

 $0.40    

 $0.50    

 $0.60    

CPM  CPM  

CPMs ì 175%

AppNexus Inc. - Confidential – Not for Distribution 11!

SEEKING THE TRUTH IN DATA!

0  

0.00001  

0.00002  

0.00003  

0.00004  

0.00005  

0.00006  

Post-­‐click  conversion  rate  Post-­‐click  conversion  rate  

Post-click Conversion Rate ì 130%

AppNexus Inc. - Confidential – Not for Distribution 12!

SEEKING THE TRUTH IN DATA!

$0  

$500,000  

$1,000,000  

$1,500,000  

$2,000,000  

$2,500,000  

$3,000,000  

$3,500,000  

Buyer  spend  Buyer  spend  

Buyer Spend è (Unchanged)

Create Greater Transparency

AppNexus Inc. — Confidential 13!

[IMAGE / VISUAL]!

beats!OPEN! CLOSED!

AppNexus Inc. — Confidential 14!

•  Minimal  data  

•  Low  compa4bility  

•  Lack  of  granularity  

•  Hidden  costs  

•  Open,  limitless  data  

•  Open  API  

•  Granularity  

•  Actual  costs  

Improve Automation

15!

“…If the objective of ad tech is to streamline and simplify the process by which digital inventory is bought and sold, then the status quo is decidedly unsatisfying…”

BUYER!SELLER!RTB Open Auction!

Class 1 Ad serving!

Deals!

Programmatic Guaranteed!

Data Platform!

Yield Optim. /Analytic!

16 AppNexus Inc. - Confidential – Not for Distribution!

KeyTakeaways!

EVANGELIZATION  +  TRUST  +    TRANSPARENCY  +    AUTOMATION  

GREATER  PROGRAMMATIC  PLATFORM    

Questions !& Answers!

17 AppNexus Inc. — Confidential!