Will ad blocking kill

the advertising business?Finding the right balance between

privacy and monetization

REINVENTING VIDEO ADVERTISING

Pierre Chappaz Executive Chairman at Teads

@ TEADSFR

Source : PageFair & Adobe Q2 2016

Global monthly active users (mobile adblocking browsers) in millions

198

237270

334370

Janvier 2015 Avril 2015 Juillet 2015 Octobre 2015 Janvier 2016

408 million

users of mobile adblocking browser in March 2016

+90% vs 2015

Ad blocker adoption cannot be ignored

Source : IIAB Europe

France is one of the top countries for adblocking adoption

36%

30% 30%

27% 27% 27%

21,90% 21%20% 20% 20% 19,43%

18% 17%15%

13,90%

10% 10%9% 8%

PL FR SE BE NO ES IT UK DK NL SI DE BG CZ FI RO RS SK CH TR

Penetration of adblocking in Europe

The global cost of ad blocking for publishers in 2015 is

$22 Billion

Source : PageFair and Adobe 2015 ad blockers report/Teads Research, “Profile of an Ad Blocker,” fielding by Research Now, analysis by Teads, December 2015. Base: Active ad blocker users on any device

Taking legal action

Educating the user

Counteracting ad blockersthrough technology

Publishers are fighting back

1

2

3

Source : GroupM

Survival is at stake

300

200

100

0

2001 ‘05 ‘10 ‘15 ‘16 ‘17

$279.3 B

$375.5 B

6.9%

9.0%

33.3%

Digital

4.3%

Radio

40.4%

TV

5.8%

Magazine

Newspaper

Digital is more thanten times largerthan it was in 2001.

Others havemanaged to generally maintainthen shares ofadvertising.

Outdoor

$400 billion

Source : Sauver les Medias, Julia Cagé

Digital is not covering the loss of print revenues

30

40

50

60

70

80

90

1955 1965 1975 1985 1995 2005 2015

Part de la publicité print+digitale dans le chiffre d'affaires des journaux (en %)

Part de la publicité print dans le chiffre d'affaires des journaux (en %)

% of print + digital advertising in newspapers turnover in the US

% of print advertising in newspapers turnover in the US

Why do usersblock ads?

69%of ad blockers were motivated because they dislike ads that interrupt their experience

66%mentioned slow browser performance

60%claimed that they do not want to see irrelevant ads

Source : PageFair and Adobe 2015 ad blockers report/Teads Research, “Profile of an Ad Blocker,” fielding by Research Now, analysis by Teads, December 2015. Base: Active ad blocker users on any device

REINVENTING VIDEO ADVERTISING

Aversion to

intrusive ad

formats is global

but providing people choice

and control is a global solution.

Source: Teads Research, “Profile of an Ad Blocker,” fielding by Research Now, analysis by

Teads, December 2015. Choice-to-view %s are the sum of all choice-to-view response rates for

the features listed.

Q: Which of the following reasons motivated you to install ad blockers on your device?

Q: Which of the following features of an online ad, if any, would make you to consider not

installing an ad blocker?

United States

United Kingdom

Germany

Argentina

Mexico

Spain

Brazil

France

Italy

74%

72%

72%

70%

70%

68%

64%

64%

60%

% who agree intrusive

advertising is the #1

motivator to block ads

% who list ad features that

provide choice-to-view as

motivation not to block ads

80%

79%

83%

84%

89%

89%

86%

80%

85%

REINVENTING VIDEO ADVERTISING

( Privacy #4 motivator)

Source: Teads Research, “Profile of an Ad Blocker,” fielding by Research Now, analysis by

Teads, December 2015. Choice-to-view %s are the sum of all choice-to-view response rates for

the features listed.

Q: Which of the following reasons motivated you to install ad blockers on your device?

United States

United Kingdom

Argentina

Mexico

Spain

Brazil

France

Italy

54%

49%

38%

43%

55%

49%

51%

49%

36%

% who agree privacy concerns is

a motivator to block ads

Germany

Privacy concerns

are not as

important as user

experience

Defining a new

advertising deal

USER EXPERIENCE

ENGAGEMENT

TRUST

BRANDS MEDIA

USERS

Participating member

Active member of the

User friendlyadvertising

Never block content access

Ban pop-ups and interstitials

Skippable video ads

Respect data privacy

REINVENTING VIDEO ADVERTISING

Formats make a real difference

In-article native video creates a more positive experience.Even the ad blocker users agree !

Source: Teads Research, “Profile of an Ad Blocker,” fielding by Research Now, analysis by Teads, November 2015. Base: those who have installed blockers by device. Sample: Any Device: n=1,003,

Desktop: n=701, Mobile n=591. *In-article native video are formats that appear between the text of an article.

Q: Please order ad formats below from most intrusive to least intrusive.

% of respondents who ranked formats as most intrusive of those given

55%

25%

Pre-roll In-article nativevideo

Over 1 in 2

consider

pre-roll ads

more intrusive

than native

video on a

mobile device

People

consider

pre-roll more

intrusive on

desktops, too52%

23%

Pre-roll In-article nativevideo

Have installed an ad blocker on a mobile device

Have installed an ad blocker on a desktop/laptop

Advertising experiencedefined by mobile

Reduce load time

Adapt the duration of the adsdepending on the screen

Provide wifi-only preferencesettings for video ads

Google AMP = The Future

Page upload for AMP pages is 85% faster than for standard page

Teads: first certified partner of

Google AMP for native video ads

‘Accelerate Mobile Pages’:

A better user and ad experience

Source : Doubleclick Adexchange may 2016

Technology for better ads

Create engagement usinginteractivity

Leverage data and programmaticto improve ad relevancy

Audiences prefer

video ad

targeting based

on their interests

and the types of

brands

they follow.

Attitudes toward

targeting are less

positive when it

feels like

‘stalking’

Q: Advertisers can target the video ads you see in many different ways. How do you feel about video ad targeting based on...?

Source : Millsward Brown Adreaction 2015

- 21 41

- 21 40

- 25 29

- 29 29

- 31 29

- 32 29

- 30 28

- 30 26

- 35 26

- 36 25

- 37 25

Your interests

(passions, hobbies & pastimes)

The type of brands you like

or follow

The type of surrounding

context (show, website)

Where you live

Video viewing history

Your online shopping history

Your demographiic profile

(age, gender etc.)

Where you are when the video

is shown

Your online search history

Your social media profile

Your web browsing history

- 50 -30 -10 10 30 50NET (+ve

minus –ve)

20

19

4

0

-2

-3

-2

-4

-9

-11

--12

NEGATIVE POSITIVE

All countries are not equal

Source : BCG Big Data and Trust Consumer Survey 2015Note : Survey question “ How private do you consider the following types of personal data?“

% considering the data as extremely private

Users share sensitive data when the experience is worth it

58%would be more likely to

tolerate an online video

ad if it is interactive

Source : Brightcove 4000 consumers in the UK, France and Germany

Data-driven creative optimization

Teads Studio leverages first and third party

data (audience data, time, location,

weather…).

s t u d i o

Thank you

REINVENTING VIDEO ADVERTISING