programmatic: using technology to automate the buying and selling of digital ads

PROGRAMMATIC USING TECHNOLOGY TO AUTOMATE THE BUYING AND SELLING OF DIGITAL ADS. Brand Safety Viewable Inventory Fraudulent Impressions Uncluttered Environment SAFETY/QUALITY #1 CONCERN OF MARKETERS 36% OF ALL PROGRAMMATIC IMPRESSIONS ARE CONSIDERED FAKE. 4% 24% 29% 43% ! Nonprogrammatic RTB Non-RTB Programmatic 11% 19% 28% 34% 41% 47% 52% 13% 18% 25% 29% 32% 32% 31% 76% 62% 47% 36% 27% 21% 17% US Display Ad Spending Share, by Type, 2011-2017 % of total NOTE: read as 28% of display-related spending was through RTB in 2013; numbers may not add up to 100% due to rounding SOURCE: MAGNA GLOBAL as cited in press release, Oct. 14, 2013 RTB Open Auction Unreserved Inventory Auction Pricing Buying impressions based on audience across multiple data sources. Inventory across publishers that lacks control of the buy but extends campaign reach. Automated Guarantee Reserved Inventory Fixed Pricing Inventory pre-network stage that has a premium cost for added transparency and placement. Unreserved Fixed Rate Unreserved Inventory Fixed Pricing Publishers offer preferred deals for volume spend with ﬂexible inventory. Invitation Private Marketplace Unreserved Inventory Auction Pricing Publishers offers inventory to select brands through an exchange. Highly selective, requires large scale budgets but is premium inventory with greater transparency. RTB Non-RTB programmatic US Digital Ad Spending, 2011-2017 billions, % change, % of total media ad spending NOTE: includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets, and includes all of the various formats of advertising on those platforms; data through 2012 is derived from IAB/PwC data SOURCE: eMarketer, Aug 2013 2011 2012 2013 2014 2015 2016 2017 $31.99 $36.80 $42.26 $47.58 $52.49 $57.30 $61.35 21.7% 22.3% 24.7% 26.8% 28.6% 30.0% 31.1% 20.2% 15.0% 14.9% 12.6% 10.3% 9.2% 7.1% % of Total Media Ad Spending Digital Ad Spending % Change US Programmatic Display Ad Spending, 2011-2017 billions, % change NOTE: includes both RTB and other programmatic/automated platforms for banner, social and video ads on desktop and mobile devices SOURCE: MAGNA GLOBAL as cited in press release; eMarketer calculations, Oct. 14, 2013 2011 2012 2013 2014 2015 2016 $2.8 $4.8 $7.5 $9.8 $12.4 $14.8 71.4% 56.3% 30.7% 26.5% 19.4% Programmatic Display Ad Spending % Change $16.9 14.2% 2017 2011 2012 2013 2014 2015 2016 2017

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PROGRAMMATIC USING TECHNOLOGY TO AUTOMATE THE BUYING AND SELLING OF DIGITAL ADS.

Brand Safety

Viewable Inventory

Fraudulent Impressions

Uncluttered Environment

SAFETY/QUALITY #1 CONCERN OF MARKETERS36% OF ALL PROGRAMMATIC IMPRESSIONS ARE CONSIDERED FAKE.

4% 24% 29% 43%

NonprogrammaticRTB Non-RTB Programmatic

11%19%

28% 34% 41% 47% 52%13%

18%

25%29%

32%32%

31%76%

62%47%

36%27% 21% 17%

US Display Ad Spending Share, by Type, 2011-2017 % of total

NOTE: read as 28% of display-related spending was through RTB in 2013; numbers may not add up to 100% due to roundingSOURCE: MAGNA GLOBAL as cited in press release, Oct. 14, 2013

RTB Open Auction Unreserved Inventory

Auction Pricing

Buying impressions based on audience across multiple data sources. Inventory across publishers that lacks control of the buy but extends campaign reach.

Automated Guarantee

Reserved Inventory

Fixed Pricing

Inventory pre-network stage that has a premium cost for added transparency and placement.

Unreserved Fixed Rate

Unreserved Inventory

Fixed Pricing

Publishers offer preferred deals for volume spend with flexible inventory.

Invitation Private Marketplace

Unreserved Inventory

Auction Pricing

Publishers offers inventory to select brands through an exchange. Highly selective, requires large scale budgets but is premium inventory with greater transparency.

RTB Non-RTB programmatic

US Digital Ad Spending, 2011-2017 billions, % change, % of total media ad spending

NOTE: includes advertising that appears on desktop and laptop computers as well as mobile phones and tablets, and includes all of the various formats of advertising on those platforms; data through 2012 is derived from IAB/PwC dataSOURCE: eMarketer, Aug 2013

2011 2012 2013 2014 2015 2016 2017

$31.99$36.80

$42.26$47.58

$52.49$57.30

$61.35

21.7% 22.3%24.7%

26.8%28.6% 30.0% 31.1%

20.2% 15.0% 14.9% 12.6% 10.3% 9.2% 7.1%

% of Total Media Ad SpendingDigital Ad Spending % Change

US Programmatic Display Ad Spending, 2011-2017 billions, % change

NOTE: includes both RTB and other programmatic/automated platforms for banner, social and video ads on desktop and mobile devicesSOURCE: MAGNA GLOBAL as cited in press release; eMarketer calculations, Oct. 14, 2013

2011 2012 2013 2014 2015 2016

$2.8

$4.8

$7.5

$9.8

$12.4

$14.871.4%

56.3%

30.7%26.5%

19.4%

Programmatic Display Ad Spending % Change

$16.9