CONFIDENTIAL & PROPRIETARYCONFIDENTIAL & PROPRIETARY

Mobile Ad Exchange:

Transforming the mobile advertising

market for buyers and sellers

Simon Bailey

Director Business Development EMEA

12th April 2011

CONFIDENTIAL & PROPRIETARY 1

Velti: At-a-Glance

Brands & Agencies:

Executed 2,700 campaigns for 820 customers on five continents in 2010

Global technology enabler of mobile marketing and advertising

campaigns for carriers, brands and advertising agencies

Media Inventory:

10+ billion monthly impressions. Platform reaches >2+ billion consumers

Financials:

Public on the NASDAQ Exchange (VELT)

Operators:

Customers include 8 of the top 10 and 13 of the top 20 mobile carriers

Company Background:

10-year operating history: 250+ experienced mobile engineers

CONFIDENTIAL & PROPRIETARY

A Driving Force in Global Adoption of Mobile

Advertising and Marketing

2

CONFIDENTIAL & PROPRIETARY

Reach

What we do?

Advertising Marketing Results

Engage Convert

Campaign dashboards

Conversion Tracking

Mobile Media

Marketplace

Ad Server/Ad

RouterSite and App Builder Analytics

Ad Exchanges

Media research

Media planning

Traditional media

Ad Serving

Mediation Router

Mobile sites

Landing Pages

Mobile Apps

Mobile Marketing CRM

Mobile coupons

Mobile commerce

Mobile social media

70 templates

Profiling, Segmentation

Loyalty

Cross-sell,Up-sell

Analyze Remarket

mGage software platform enables operators, brands, agencies and

media companies to execute mobile marketing and ad campaigns

Campaign planning and optimization

End-to-end campaign management

Optimization across full-scale of mobile media

3

Global execution

CONFIDENTIAL & PROPRIETARY

Table of Contents

I. Mobile Ad Exchanges – Some numbers

II. What is an Ad Exchange?

III. The power of Real Time Bidding on Mobile

IV. How Exchanges fit into a Publishers Revenue Stack

V. Velti in the Mobile exchange eco system

4

CONFIDENTIAL & PROPRIETARY

Mobile Ad Exchange: Here to stay and available for mobile today

2009

2010

2015

5

•Mobile will become the No. 1 screen for advertising

•50% of all display advertising targeting audience will rely on real-time bidding

Google Predicts:

•Advertising spend will increase 10x on Mobile within the EU top 5 markets

MobileSQUARED

Predicts:

•£83 Million Spent

•Year on year growth 116%

IAB Mobile Display Spend

•Launches 1st Mobile RTB Ad ExchangeMobclix:

•£37 Million Spent

IAB Mobile Display Spend

2010•$733 million (48% RTB)

2011•$1.416 Billion (58% RTB)

Forrester RTB Report Feb 2011

US Online Ad Exchange spend

Predicts 133% increase in RTB

CONFIDENTIAL & PROPRIETARY

What is an Ad Exchange?

6

1. Visitor loads

App or mobile

site page

6. Visitors sees

creative from highest

bidder. Complete

process takes only ~75

milliseconds

2. Publisher sends ad

request to Mobclix

exchange with a $.75

floor price*

floor price (.75)

5. Mobclix exchange

sends the corresponding

ad creative to Publisher

(if it beats the floor

price)

Winning bid price

(1.25)

3. Mobclix platform alerts

Publisher’s approved buyers

(DSPs, agencies, Ad Networks)

to ad unit’s spec, visitor profile,

and app/ web page context

I bid

$1.50

I bid

$1.25

4. Real-time auction!

Highest bidder wins and

pays the 2nd highest bid

rate ($1.25)

Ad exchanges are technology platforms that facilitate the bidded buying and selling of online media advertising inventory from multiple ad networks*

CONFIDENTIAL & PROPRIETARY

The power of Real Time Bidding on Mobile

Targeting Capabilities for site:

Site Name, domain, url

Category

Keywords

Targeting Capabilities for App:

Name, Domain of app publisher

Category

Paid or Free? Number of Apps downloaded, Type

7

Demographic Location Usage Profile Device

Age: 25-30Gender: MaleTechnology: ExtensiveSpending Power: 90

Average Session: 5minApps Downloaded: 18-24App type: Games

+ + + =

Unique Audience

Targeting Capabilities for Device:

ID of device

IP address, country, state

Make, model and carrier, operating system

Location – Lat and Long

Targeting Capabilities for User:

Demographic, age, gender etc...

Any 3rd party targeting groups – EG High Tech User

CONFIDENTIAL & PROPRIETARY

How Exchanges fit into a Publishers Revenue Stack

8

Exclusive

Ad Campaigns

/ Sponsorships

Guaranteed

Ad Campaigns

Ad Network

Optimisation for non

guaranteed inventory

Dir

ectl

y S

old

Spot Market Sales

(Real-Time Bidding)

Indir

ectl

y S

old

Mobile Ad Revenue Stack

Link Directly

to the Mgage

Agency

planning tool.

Real time

optimisation of your

non-guaranteed

inventory

• Optimise 25+ Ad

Networks

• Full Control

• Full transparency

Real-Time Bidding

• No Economic Risk

• Manage Channel

Conflicts

• Deeper relationships

with Agencies

Direct Sales:

Private

Exchanges

• Automate Direct

Campaigns

• Automatic RFP

process

• Extend your

existing sales

team.

• Maintain full

control

Indirect Sales:

Public Exchanges

CONFIDENTIAL & PROPRIETARY

Velti in the Mobile Ad Exchange eco system

9

25+ Ad Networks.

12,500+ Publishers.

10 Billion Monthly Imps.

2 Billion + ads per month.

70% of all Mobile Ads in China run through

CASEE.

Private Ad Exchanges.

CONFIDENTIAL & PROPRIETARYCONFIDENTIAL & PROPRIETARY 10

Thank You

Simon Bailey

Director, Business Development EMEA

sbailey@velti.com