How to Maximize Revenue and Lifetime ValueWINTER NIGHTSFebruary 7th, 2014

Nexage is the leading premium mobile exchange

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THE PREMIUM MOBILE EXCHANGE

o Monetizing 35B impressions per month – growing 12% per month

o 400M unique users (“reach”)o 25% of revenue through private

exchange

What is Programmatic Advertising/ Media?

The use of technology to automate

the buying and selling of media

Examples of programmatic markets

Programmatic will trade place with non-programmatic

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0%

20%

40%

60%

80%

100%

2012 2013 2014 2015 2016 2017

Programmatic GuaranteedRTBNon-Programmatic

32%

47%

Share of Spend in Mobile Advertising (WW)

90% 89%

eMarketer, December 2013 and Nexage Analysis

Mobile gaming is as much a cultural phenomenon as it is a market phenomenon

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…but the game is changing

But the market is changing

o The pace of download growth is decreasing

o Cost of acquiring is rising

o The % of customers paying for games or buying virtual goods is relatively flat

o The level of inactive users is increasing

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Game developers must now also focus on increasing revenue from existing users

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Customer lifetime value (LTV) measures the customer’s value over the life of the game or title

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o Maximize the number of active users …AND…

o Maximize the revenue per active user

Breaking down your customer base

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Active Users

Inactive Users

In-App Purchasers

Total Acquired

Customers

~5%

Paid Games ~5%

Non-revenue generating

Breaking down your customer base

Reduce

Re-engage

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Active Users

Inactive Users

In-App Purchasers

Paid Games

Grow

Keep happy

Optimize revenue

Grow

Keep happy

Maximize revenue

Total Acquired

Customers

Increasing LTV for your app

o Look-alikes

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Re-engage non-active

users

Monetize low/no-revenue

users

Extend customers

Acquire active users

o Re-engagement ads

o Promotions

o Strong demand

o Ad quality

o Brand Advertisers

o Relevance

o Cross-promotion

Acquire look-alikes

o Avoid low-cost strategy – it costs too much

o Identify high LTV customer profile

o Target, target, target

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Re-engage inactive or stalled customers

o Mine your own data

o Re-engagement ads

o Promotions

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…and seize on accelerating brand spend

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THE PREMIUM MOBILE EXCHANGE

225+ buyers

Maximize (brand safe) demand

Ensure ad quality

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PREVENTATIVE

Brand Controls

Channel Conflict

Brand Conflict

Bad Ads

PROACTIVE

Creative Verification

RESPONSIVE

Ad Screening

BLOCK

TRANSPARENT

Malware Protection

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Enhanced user experience

Brand Advertiser + Relevance

Cross-promote

o Mine your own data

o Create advocates

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The game is changing

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…stack the deck in your favor