Making Sense of Programmatic Buying - Nexage - Todd Tran

The Mobile Programmatic

Opportunity

Todd Tran Managing Director, Europe

– 2 –

The Mobile Opportunity

Mobile takes center screen

Mobile takes 47% of screen time, led by smart phone use

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Mobile takes center screen

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Smart phones are the leading media across the majority of the day

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Mobile: the first screen?

“Yahoo’s future is mobile and we are delivering our products mobile first.” Marissa Mayer, CEO, Yahoo

“The new rule is mobile first; mobile first is everything.” Eric Schmidt, CEO, Google

“Mobile is everyone's job. Everything we need to do needs to be mobile and that includes monetization.” Mark Zuckerberg, CEO, Facebook

“Twitter is now a Mobile-first company, says CEO” FT reports on Twitter’s strategy

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Mobile ads have greater impact

Mobile is becoming the strategic channel for digital

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$0

$10

$20

$30

$40

$50

$60

$70

$80

2013 2014 2015 2016 2017

TV Mobile Online Print

Source: emarketer, December 2013;

UK Mobile Ad Spend - 2013

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£1 billion

Brand Spend Taking Flight

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Source: emarketer, December 2013; Nexage

$0

$5

$10

$15

$20

$25

$30

2013 2014 2015 2016 2017

Brand spend Game/app spend In

billions

US PREMIUM AND GAME/APP FORECASTS

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The Mobile Programmatic Opportunity

Mobile ad spend rapidly shifting to programmatic

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Source: eMarketer Mar 2013, Nexage

DISTRIBUTION OF TRADING TYPES (%)

0%

20%

40%

60%

80%

100%

Non-‐programmaEc ProgrammaEc Direct Open Exchange (on RTB)

Private exchange (on RTB)

2013 2014 2015 2016 2017

Mobile’s uniqueness

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No cookies

Different Publishers

Loca5on

Ad formats

Mobile Web 25%

Mobile Apps 75%

App dominated

App Dominates Mobile Internet

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Mobile App Replaces Search

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Mobile Programmatic to Grow Faster than Desktop

Why Faster? •  Learn from desktop •  App publishers have no

or limited direct sales force

•  App publishers are more flexible

Issues •  Identification and data •  Education •  Getting comfortable with

app publishers

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The mobile programmatic ecosystem

Media A

gency

Trading Desk

DSP

Exchange

Publ

ishe

r

DMP / Data Provider

Advertiser

Use

r

The Nexage Exchange

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VIDEO & RICH MEDIA

The Premium Mobile Exchange

COMPLETE BRAND SAFETY

PRIVACY-SAFE 1ST AND 3RD PARTY DATA

FULL-SUITE OF PROGRAMMATIC MARKETS

PREMIUM PUBLISHERS

Premium Audience Brand Spend

500m unique users Accelerating brand spend

Audience at Your Fingertips Nexage Inventory Book

Reach

500million

Type Operating System Targetable Data

Geography Rich Media & Video Tablet Breakout

Android 56%

iOS 42%

BlackBerry 36.8B 32.9B 32.5B

6.1B 5.6B

Zip Lat/Long Age Device ID Gender

VAST

HTML5

ORMMA

MRAID

1.2B

3.5B

4.8B

21.3B

2%

Smartphone 76%

Tablet 24%

App 61%

Mobile Web 39%

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What is Programmatic Advertising/Media?

The use of technology to automate the buying and selling of media at a single impression level.

What is RTB?

A type of programmatic ad trading where single impressions are bought and sold in real-time through an auction

Nexage Programmatic Solutions

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Public Exchange

Private Exchange(s)

Rules-based First-look Exclusive Branded

Programmatic Direct

Direct Deal Programmatic Guarantee Futures

Leveraging Data

Data passed from publisher •  Device ID •  Location (lat/long) •  Demographic (age, gender)

Cross-device ID

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Value of a Mobile Impression

23

>  Transparent brand

>  Video ad units

>  Tablet formats

>  Device ID

>  Lat/long (GPS derived)

>  Interstitials

>  Rich media ad units

>  Banner impressions with no data

>  Poor engagement and click through rates

Yield Spectrum

High-Liquidity

Mid-Liquidity

Low-Liquidity

4-10x premium

2-3x premium

Commoditized

Nexage Connect

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ENRICHMENT

IDENTIFIER CONTEXTUAL BEHAVIORAL PRIVACY &

VERIFICATION LOCATION

Premium Inventory Enriched Impression

Nexage Connect Enriched Audience Impression

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“Never in human history has any gadget or technology achieved 100% penetration levels. Not cars, not motorbikes and mopeds, not even bicycles. Not the Walkman, not the CD player, not the television, Playstation, VCR, DVD player nor even radio. Not the PC, not the internet. Not even such basic necessities we all expect, like running water or electricity.”

PROPRIETARY & CONFIDENTIAL – DO NOT DISTRIBUTE – 26 –

Thank you.

Todd Tran [email protected]

Ad Sizes and Formats

Standard Smartphone Banners: o  320x50 o  300x50 o  300x250 (interstitial) o  480x320 (interstitial) o  320x480 (interstitial) Standard Tablet Banners: o  728x90, 300x250 o  1024x768 (interstitial) o  768x1024 (interstitial)

Mobile Video & Rich Media: o  VAST o  MRAID o  ORMMA o  HTML5

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Examples of programmatic markets