JASON FAIRCHILDChief Revenue Officer

Mobile Monetization: Three Challenges, Three Solutions July 2013

The Multi-screen Reality

• Q4 2012: Tablets outpace PC sales

• Mobile trending towards 30% of Internet traffic

• We reach for our smartphones 150x per day

Source: Mary Meeker Internet Trends D11 Conference 5.29.13

The Harsh Reality: Low CPMs

Average CPMs

3

2

1

0Desktop Mobile

$3.50

$0.75

Source: Mary Meeker Internet Trends D11 Conference 5.29.13

We Solved This Problem in 2001 for Display

• New buyer models: Ad networks

• New targeting technologies

• Cookie data

• Behavioral targeting

• Contextual

• New marketplace models: Ad exchanges

• Technology innovation: Real-Time Bidding (RTB)

• Buyers

• Sellers

• Operating Systems

• Devices

• Ad sizes

• Inventory Types

Challenge 1: 360 Degree Fragmentation

Fragmentation Friction Inefficiency CPMs

• Mobile must learn from display

• Mobile exchange trading will force standards• Ad formats, targeting, buyer controls, inventory classification

Solution 1: More Efficient Marketplace

Standardization Order Efficiency CPMs

Challenge 2: Absence of Cookie Data

Without device level targeting, buyers can’t value impressions

What is this painting worth?

• Audience targeting?• Retargeting?• Cross screen targeting?• Conversion tracking?

Solution 2: Universal Cross-screen ID

Example: OpenX & AdTruth

• Better device recognition• Sophisticated targeting• Analytics for measurement• Privacy friendly• Consistent cross-platform ID

What is this painting worth?

Challenge 3: Fragmented Ad Platforms

Many Screens

Many Ad Platforms

Many Reports

Ad Server

RTB Ad Exchange

Networks

SSP / Yield Optimization

Solution 3: Universal Ad Platform

One Integrated Ad Platform

Consolidated Reporting

Ad Server

Ad Exchange

SSP/Yield Optimization

Many Screens

Summary

Yes, Mobile CPMs are low, but…

• Trading platforms will force standardization

• The cookie problem will get solved

• Universal ad platforms will increase efficiency

• We’re already seeing strong improvements and growth

JASON FAIRCHILDChief Revenue Officer

Thank you