AdColony's semi-annual mobile app developer survey (fielded June 2 - 23, 2014) as presented at Casual Connect USA 2014. Bryan Buskas, SVP Sales Performance Advertising at AdColony, reveals the results of the company's annual developer survey to unveil insights on the latest trends and strategies for user acquisition and monetization straight from the top grossing devs. The new developer “future-casting” research presentation pulls insights and shows changes in attitudes over the past year on topics such as: - “What advertising channels are currently being used by Top Grossing mobile developers?” - “What user acquisition channels and ad formats are most effective at achieving campaign goals?” - “What trends from last year are on the down and out?” With aggregated data and real input from the biggest developers in the world on important topics like mobile video, social and more, Bryan presents the ever-changing mobile marketing landscape and provides a dose of reality on what’s working and what’s not.

1. Mobile Marketing and
User Acquisition Trends -
2014 and Beyond
Bryan Buskas
SVP Sales,
Performance Advertising
AdColony
@BBuskas
@AdColony

2. Global leader in mobile video advertising featuring HD Instant-
PlayTM technology that eliminates buffering and long load times

3. USER ACQUISITION TRENDS
!
• Semi-annual mobile app
developer survey
• Fielded June 2 - 23, 2014
• 17 required questions (5
optional) requiring 94
responses
• 49% response rate

4. PARTICIPANTS

5. SAMPLE QUESTIONS
• What User Acquisition (UA) channels do you use?
• How effective is each UA channels/format at achieving
your campaign goals?
• What are the most important KPIs in evaluating ad
network / campaign performance?
• What pricing models do you use?
• Compared to last year, my campaigns in 2014 have….
• Compared to 2014, in 2015, I expect my UA campaigns
to…
• What UA channel in 2015 are you most excited about?

6. USAGE BY CHANNEL/FORMAT
Which of the following UA channels do you work with?
Video Ads 100%
Facebook App Install Ads (Display) 92%
Interstitials 90%
Display/Banners 86%
Facebook App Install Ads (Video) 69%
Direct Publisher Deals 59%
Cross Promotion Platforms/Partners 49%
Offer Walls (Incentivized) 47%
Free App Networks (e.g. Free My Apps) 35%
Television 22%
OOH (e.g. Billboards, Posters) 6%
Print 2%
Other 2%
0 25 50
1
1
3
11
17
23
24
29
34
42
44
45
49
Video ads are now the most common UA channel (100% usage with Top Grossing developers)
along with Facebook app install ads (92%), interstitials (90%) and display (86%)

7. CHANNEL/FORMAT USAGE TRENDS
Which of the following UA channels do you work with?
Jan‘13 July‘13 June‘14
Video Ads 100% 100% 100%
Facebook App Install Ads (Display) 68% 94% 92%
Interstitials 100% 83% 90%
Display/Banners 89% 86% 86%
Facebook App Install Ads (Video) - - 69%
Direct Publisher Deals 63% 72% 59%
Cross Promotion Platforms/Partners 68% 53% 49%
Offer Walls (Incentivized) 100% 64% 47%
Free App Networks (e.g. Free My Apps) 95% 64% 35%
Television - - 22%
OOH (e.g. Billboards, Posters) - - 6%
Print 0% 0% 2%
Other 5% 3% 2%
Video Ads, Facebook App Install Ads, Interstitials and Display continue to dominate the media
mix for performance advertisers, while direct deals, cross promo, offer walls, and free app
networks all continue to lose significant share over the last year and a half

8. USAGE VS. EFFECTIVENESS BY UA CHANNEL
0%
25%
50%
75%
100%
Video Ads Facebook (Display) Interstitials Banners Facebook (Video) Direct Deals
Usage
Effectiveness
(at least “very effective”)

9. DECLINING USAGE AND EFFECTIVENESS
Which of the following UA
channels do you use?
0%
25%
50%
75%
100%
Jan'13 Jul'13 Jun'14
Direct Publisher Deals
Cross Promotion Platforms/Partners
Offer Walls (Incentivized)
Free App Networks (e.g. Free My Apps)
0%
25%
50%
75%
100%
Direct Deals Cross Promo Offerwalls Free App Networks
Usage
Effectiveness
How effective is each UA channel
at achieving your campaign goals?

10. KPIS
50%
75%
100%
Jan’13 Jul’13 Jul'14
Quality of User
Price
Targeting
Service
Volume
• Quality is king
• Price, targeting, and service are
all growing in importance
• Volume is still important, but
much less today than in the last
18 months

11. PRICING MODELS
CPI
CPCV
CPC
CPA
CPM
CPL
Other
0 13 25 38 50
1
1
14
15
20
29
49 CPI 100%
CPCV 59%
CPC 41%
CPA 31%
CPM 29%
CPL 2%
Other 2%
Which pricing models do you work?
CPI is still the most common pricing model used by 100% of advertisers, however CPCV (video)
is now the 2nd most used pricing model - above CPC, CPA or CPM

12. 2014 TRENDS
0%
25%
50%
75%
100%
Jan’13 Jul’13 Jul'14
Increase in size
Increase in reach (geo)
Utilize new channels
Shift to video
Focused with fewer partners
More focused on CPI
Shift to Android
• Budgets are increasing
• Campaigns are more global
• New channels are emerging
• Video is gaining share
• Spend is consolidating with
fewer partners

13. 2014 TRENDS
0%
25%
50%
75%
100%
Jan’13 Jul’13 Jul'14
Shift to social
More focused on CLV than cost
Shift to direct deals
Shift to interstitials
Shift to iOS
Shift to free app networks
Shift to display/banners
Shift to offerwalls
• Growth in spend with social
channels is slowing
• CLV is still an important focus
• Growth of interstitials, free app
networks, display, and offer
walls is declining

14. 2015 OUTLOOK
2015 Outlook
Increase in size ($) strongly agree
Increase in reach (more geographies) strongly agree
Utilize new channels strongly agree
Be more focused with select partners strongly agree
Shift more to video agree
Shift to social (e.g. facebook) agree
Be more focused on CLV agree
Be more focused on CPI agree
Shift more to iOS -
Shift more to Android -
Shift more to Windows -
Shift more to interstitials -
Shift more to direct deals ➡disagree
Shift more to display/banners ➡ strongly disagree
Shift more to Free App Networks ➡ strongly disagree
Shift more to offer walls (incentivized) ➡ strongly disagree
StronglyagreeStronglydisagree
Compared to 2014, in 2015, I expect my UA campaigns to:

15. MOST EXCITING UA CHANNEL/FORMAT
For the 2nd straight year, advertisers are most excited about the potential
and results of video and social as the main 2 user acquisition channels.
Video 43%
Social (e.g. Facebook) 41%
Other 10%
Television 2%
Interstitials 2%
Free App Networks 2%
Offerwalls 0%
Banners 0%
Print 0%
OOH (e.g. billboards) 0%
What UA channel are you most excited about in 2015?
Video
Social
Other

16. THANK YOU!
Bryan Buskas
SVP Sales - Performance Advertising
AdColony
bryan@adcolony.com