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GOING BEYOND RIGHT TIME, RIGHT PLACE & RIGHT CONSUMER

Programmatic Insider Summit9/6/169/6/16

Outline of Ken presentation:Going Beyond Right Time, Right Place & Right Consumer

It's time to revisit the marketing adage that in order to be effective, an online ad needs to be delivered to the right consumer, at the right time, and in the right place. Programmatic advertising has made it easier to achieve these three goals, and its become a table stake for many brands. But the rise of mobile and recent advances in ad tech means we can expect more. The context around where an ad is served is making a comeback, and when combined with the right behavior, can help serve highly effective ads to consumers who are more likely to be receptive. To be relevant today, an ad needs to be served to a consumer not only in the right mindset, but also with the right creative -- and without being annoying. This session will explore how the latest versions of image recognition technology, contextual targeting and trend targeting can help achieve these new goals programmatically and in a mobile environment. The session will also highlight how creative limitations in programmatic can be addressed. Finally, this session will show examples of groundbreaking, programmatically-delivered In-Image advertising campaigns from Fortune 100 brands.1

ABOUT US70%OF FORTUNE 100COMPANIES200GUMGUMMERS

13 OFFICES IN 3 CONTINENTS100BIMAGE IMPRESSIONS

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Why this slide matters: Validating GumGums size and experience.

Voice-over: GumGum is a leading computer vision company that is best known for inventing the field of In-Image advertising. We are currently about 200 people, across 13 offices, in 3 continents. We work with many of the largest publishers in the world and the majority of Fortune 100 brands.

This year, we delivered more than 100BN image impressions.

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PREMIUM PLATFORM400MGLOBAL REACH10B+MONTHLY IMPRESSIONS

2K+PREMIUM PROPERTIES

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Why this slide matters: Establishes credibility/market validation and demonstrates the scale and premium nature of our offering.

Voice-over: We work with many of the largest publishers in the world, which collectively give our advertisers access to 10 billion impressions per month. Some of our publisher partners include Time Inc. Wenner Media, Bauer, and Hearst.

Key Takeaway: GumGum is a scalable, brand-safe platform with high quality partner sites that your brand can be proud to be associated with.

Supporting Talking Points:

Strict publisher acceptance criteria ensures only sites you would be proud to include on your plan, are allowed into our platform.Third party ad verification is available.We use both a programmatic and human review process to ensure our clients ads never appear alongside objectionable images or content.175M UVs/mo. gives us sufficient scale from which to deliver audiences via our In-Content campaigns.A complete site list is available upon request.

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OPPORTUNITIES AND CHALLENGES OF PROGRAMMATIC

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9/6/165RIGHT TIME, RIGHT PLACE & RIGHT CONSUMER

Why the slide matters: Demonstrate what makes programmatic so compelling to marketers.

Voice-over: Programmatic advertising helps automate the decision-making process of media buying by targeting specific audiences. By collecting a wide variety of first and third part data about consumers and delivering the most relevant ads to them, programmatic creates efficiencies. Some pundits would argue that programmatic is the gold standard of marketing. 5

9/6/166THAT PROMISE HAS BECOME COMMONPLACE

Why the slide matters: Show that programmatic has been widely adopted by marketers.

Voice-over: What is clear is that marketers have embraced programmatic. This year, more than 67% of the US display spend was purchased programmatically. This represents almost $15BN and is expected to continue to grow as more premium inventory is made available to marketers through private exchanges and automated guarantees.6

9/6/167BUT IS TOUGHER IN MOBILE

Why the slide matters: Show that programmatic faces some challenges in mobile environments.

Voice-over: With the explosion of mobile, programmatic is reinventing itself. Cookies that help to identify and serve an ad to consumers are generally not available on mobile. There are some other solutions that go around that problem but none of them is a panacea. In addition, small ad units continue to be a challenge in mobile, who hasnt clicked on a mobile ad by accident recently?

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9/6/168AND IGNORES CONSUMER SENTIMENT

Why the slide matters: Demonstrate that you might find the right audience, but that audience might not be in the right frame of mind.

Voice-over: Another underlying issue of programmatic relates to the platforms (DSPs, TD, retargeters) dependence on behavioral targeting. Take retargeting as an example. As we know, retargeting consists in serving an ad to a consumer based on this persons intent in buying a product or service. Its one thing to serve an ad to this person, but it is another one to deliver an ad to this person when he/she is in the right frame of mind to buy that product. This is an area where retargeting usually falls short. 8

VIEWABLE IS NOT THE SAME AS BEING SEEN

9/6/169

Why this slide matters: Identifies the problem we solve - attention and viewability.

Voice-over: People visit websites to consume content, and all eye tracking studies show that users focus on the images and text in the body of the web page, largely ignoring anything appearing on the periphery of pages, especially banner ads. This is known as banner blindness.

As this heat map illustrates, images attract the most heat or attraction from viewers. Our attention is naturally drawn to headlines, images and text because this is the content the users are on the page to consume. They appear in-line with the natural flow of how weve been conditioned to read content online. So its not surprising that the most effective marketing messages are those that sit within the content, like images, where users are most actively engaged.

Key Takeaway: Research shows banner blindness is still a pervasive problem, and the way users consume content does not match how ads are displayed online.

Supporting Talking Points:

- People visit websites to consume content- Eye tracking studies prove users focus energy and attention on images, text and other content in the center of the page- The most effective marketing messages are those which appear in-line with content where user attention is actively engaged.

Note: While Mashable is not a GumGum publisher, this heat map is for illustrative purposes only. Its not necessary to mention imagery and In-Image advertising at this point to successfully deliver this slide.

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THE NEW PROGRAMMATIC ORDER

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CONTEXTUAL TARGETING MATTERS

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9/6/16

Why this slide matters: Demonstrates why contextual marketing is important

Voice-over: It is our strong belief that marketing messages should be placed, politely and relevantly, in line with content users are actively engaged with. Because In-Image ads run where a readers attention is already focused, not only are they viewable, but they are also seen. GumGum looks at billions of images every month across more than 2,000 premium publishers and our proprietary technology deciphers the content of these images. We can then use that understanding to align brand messages to these images with contextually relevant ads.

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NativeOUR PRODUCTS

In-Image

Native

In-Screen

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In-Content Video

Why this slide matters: Show our placements.

Voice-over:GumGum offers a variety of formats and creative options designed to meet the brand objectives of every advertiser.

Supporting Talking Points:

Custom creative using your assets can be developed by our in-house design team at no additional cost.Ads are responsive and dynamically conform to the size and shape of images and the screen size, regardless of platform or device.Ads can be closed by consumers to reveal entire photos.Upon clicking, a video overlay can be presented to include video, images or any rich media or social engagement feature.Ads can be targeted on a keyword or a category basis and audience targeting options are available.

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HOW WE PROCESS IMAGES AT SCALE

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Why this slide matters: Succinctly conveys how our image recognition and semantic/contextual analysis technology works.

Voice-over: At our core, we are a computer vision company. We look at billions of images every month and use machine learning techniques to determine the content of images. Our technology looks for things like faces, animals, automobiles, skin, hair, locations, logos, and so much more. In addition, we use semantic analysis to infer the meaning of images and the context of any page, based on several variables, including keywords and metadata.

Supporting Talking Points:How GumGums patented image recognition technology identifies whats in pictures:Image Analysis Our image recognition technology is able to identify faces (hair, eyes, ears, lips, etc.) automobiles, and skin/nudity detection.Content Analysis Semantic analysis of the text on a page further helps to identify the meaning of images and their eligibility for ad targeting.Page Metadata Meta tags, keywords and page titles provide inferences to the meaning of photos on the page.Image Metadata Every image contains data that can be used to infer its meaning. This data includes file names and descriptors entered by a photographer or publisher, Exif and IPTC meta data, and Facebook open source image coding.Referrer Data If a user arrives on this page via search, we can identify the term searched prior to landing on this page.Image Clustering Once an image is identified, our system can locate the same image across multiple publishers, even if it has been cropped or altered.

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HOW TO OVERCOME CREATIVE LIMITATIONS

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9/6/16

Why this slide matters: Expose some issues that relate to programmatic standard formats, and show one way to overcome them

Voice-over: Producing high impact creative has been challenging for programmatic. More often than not, programmatic faces some creative limitations as the number of ad formats is somewhat limited. Early one, at GumGum, we made the decision to create a creative studio to assist our clients with non standard IAB ads. More recently, we launched a tool that allows our clients to create their own non standard units. Heres an example of that. 14

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23456Buyers are now able to purchase GumGums inventory and custom formats via integrated DSP partnersWORKING WITH GUMGUM PROGRAMATICALLYMOUNT ENGAGEMENTWhere you end up depends on where you plan to go.GumGum is most effective when used as a brand building tool. When we operate at the top and middle of the funnel, superior engagement metrics await at your destination.BEST-CASE VOLCANOStrategically pack for blowing out results.A three-pronged approach works best to blast audiences with effective content, using behavioral, contextual, and vertical data to target. This strategy maximizes campaign efficiency.CATEGORIAL CAVESSplit up to cover more ground.In the DSP, create a separate ad group for each strategic category. This allows flexibility and better overall performance.EQUIP-AND-BE DUNEEquip yourself with best practices.Serve ads to individual users a maximum of four times in eight hoursLighten pre-bid solutions, thanks to our robust, premium publishing partnershipsCast a broad keyboard net with at least 100 associated keywords

AWE SUMMITSet up camp.Plant your flag, relax, and watch engagement rise. Then start planning your next ad-venture!

FORGET FALLSForget what you know. GumGum achieves unique results because it is different than any programmatic experiences you may have had. Over the course of creating successful campaigns for dozens of brands and agency partners, we have learned what works best.

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Why this slide matters: Shows that offer programmatic and we know how to make it work for your clients

Voice-over: This map illustrates what we learned from our clients who are running programmatic campaigns with us. Its a fun read and all of you should have a copy of the map in front of you. We are proudly integrated with TTD, AppNexus and also DoubleClick Manager.

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THANKYOU!

Ken Weiner, CTOKen@gumgum.com310.260.96669/6/16

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