From the IAB/DataXu webinar: "Digital Transformation or Disruption? DSPs, Digital Advertising, and the Changing Role of the Agency"

1. Digital Transformation or Disruption? DSPs, Digital Advertising, and the Changing Role of the Agency Hosted By:

2. Agenda Introductions Industry Overview DSP Learnings & Key Requirements RTB & Premium Inventory Branding vs Performance Success Stories Q&A with panelists © 2010 DataXu, Inc. Privileged & Confidential 2

3. Participants © 2010 DataXu, Inc. Privileged & Confidential Steve Weeks, Sr. Manager of WW Advertising Mike Baker, CEO Michael Jenkins, Sr. Communication Strategist Ben Trenda, VP of REVV Marketplace Development 3

4. Agenda Introductions Industry Overview DSP Learnings & Key Requirements © 2010 DataXu, Inc. Privileged & Confidential Mike Baker, CEO 4

5. The Evolution of Online Media Buying Direct from Publishers 1996  Ad Networks1998  Ad Exchanges2005  DSPs2009  © 2010 DataXu, Inc. Privileged & Confidential

7. Reduces display cost

8. Generates data-driven consumer insights© 2010 DataXu, Inc. Privileged & Confidential

9. The Role of a DSP Ads Placements Online display exchanges Publisher Advertiser Agency Online video exchanges DSPs Mobile exchanges Consumer data aggregators Audience © 2010 DataXu, Inc. Privileged & Confidential

11. Static in place and time

13. Break through scale limitations

15. Fragmented in space and time

17. More control

18. More efficient

20. Poor scalability of retargetingand audience buying

21. Cost effectivenessAUDIENCE BUYING RETARGETING

22. AUDIENCE BUYING RETARGETING The biggest problem with 1st gen DSPs: SCALE © 2010 DataXu, Inc. Privileged & Confidential REACHES ALL CONSUMERS Use insights from your own data to scale across display, mobile and video AUDIENCE DISCOVERY LIMITEDby the number of cookies you can buy LIMITEDby the number of people who come to your site

23. DataXu’s Next Generation Platform sd © 2010 DataXu, Inc. Privileged & Confidential LEARNS FROM WHAT’S WORKING 1. 2. MEASURES CONSUMER BEHAVIOR BUYS MEDIA ACROSS CHANNELS AND FORMATS DECIDES WHAT CONSUMERS, CONTEXTS, CREATIVES, AND PRICE 4. 3.

24. Why Dynamic Decisioning Matters © 2010 DataXu, Inc. Privileged & Confidential

25. Learning: Price VolatilityFavors Dynamic Bidders Results: Persistent price volatility is enabling advertisers to capture high value at low cost. Over 100% volatility --10 times higher than NASDAQ’s Conclusion: Dynamic decision systems that adjust in real time can boost performance Challenge: Decide, in real-time what ads to buy, adjusting to extreme price variation © 2010 DataXu, Inc. Privileged & Confidential

27. A global optimization approach balances all three domains at once© 2010 DataXu, Inc. Privileged & Confidential

30. Agenda Introductions Industry Overview DSP Learnings & Key Requirements RTB & Premium Inventory © 2010 DataXu, Inc. Privileged & Confidential Ben Trenda, VP of REVV Marketplace Development 17

32. 250 employees

33. $60M funding

34. More than 1 trillion ads served

35. Key Acquisitions:

36. Fox Audience Network

37. OthersOnline: audience affinity analytics

38. SiteScout: ad security

39. Most Innovative Company, American Business Awards 2010

40. Trusted by 350 Premium Publishers

41. 33% of comScore 100 (U.S.)

42. 88 of comScore 500 (Global)

43. 12 of Top 15 Newspapers in the U.S.

45. 550M+ global uniques

46. 600+ ad networks, exchanges, DSPs

47. Non-Competitive (no advertiser access)

49. Yield optimize for highest revenue

50. across all sources of demand, including RTB

51. More effectively compete:

53. Protect direct sales pricingOne platform to yield optimize all inventory one marketplace to access all demand

55. 2/3 of online display impressions sold on a non-guaranteed basis

57. Each has created a trading desk to fix the problems inherent in the buying of digital media (duplication, opacity, quality, efficiency)

58. Agencies working to move spend to trading desks

59. Trading desks want to spend via RTB

60. Tradingdesks limiting ad network access to this spend

62. Inventory volume is up, CPMs are down

63. Advertisers want to buy audience, not just inventory

64. 2 million active advertisers (how to reach them all!?)

65. 2/3 inventory sold on a non-guaranteed basis (via ad networks, exchanges, DSPs) – how to optimize all those sales channels?

66. So publishers are watching the media buying landscape carefully:

67. Programmatic buying will be increasingly important

68. Agency-originated non-guaranteed spending starting to become concentrated within trading desks— can’t afford to ignore

70. Quality - high quality brand campaigns not always available through ad networks

71. Efficiency – the right ad to the right user at the right time, at the highest possible price

73. Direct Sales Revenue/Channel Conflict

75. Who should have access to my inventory? When? Where?

79. Preferred Price Floors

81. The Results To Date © 2010 DataXu, Inc. Privileged & Confidential CPM 20% CPM INCREASE RTB alone drives immediate lift(3–5x CPM) while protecting publisher revenue against channel conflict, pricing arbitrage & data leakage… …and additional yield growth of 20% across ALL non-guaranteed inventorywhen Protected RTB is enabled in concert with all optimization sources publisher A Total revenue lift before RTB publisher A Total revenue lift after RTB

82. Agenda Introductions Industry Overview DSP Learnings & Key Requirements RTB & Premium Inventory Branding vs Performance Success Stories © 2010 DataXu, Inc. Privileged & Confidential Steve Weeks, Sr. Manager of WW Advertising Michael Jenkins, Sr. Communication Strategist 27

83. Operating in silos: The Past Raise awareness Site direct buys focused on high target audience composition Premium rates Messaging focused on product benefits “Learn More” © 2010 DataXu, Inc. Privileged & Confidential “Brand” Efforts “Response” Efforts Sell product Network buys focused on increasing campaign reach Remnant inventory Messaging focused on product features Drive to “Try/Buy now” Few opportunities to apply cross-campaign insights in real-time

84. Cross-campaign interaction: The Present © 2010 DataXu, Inc. Privileged & Confidential Brand Efforts Response Efforts Leverage data to deliver relevant, timely messages to in-market consumers Excite, engage & entice. Grow marketable universe.

86. Tag Adobe.com to track interest and consideration or consumers.

88. …and response efforts will capitalize on insights. © 2010 DataXu, Inc. Privileged & Confidential Matching product to sub-targets (i.e. After Effects for video enthusiasts) Response Campaign Deliver relevant, timely messages Purchase process messaging (i.e. offers for trialists) Broad, efficient media + granular targets & messages Leverage site data to develop relevancy Incentivize when necessary 32

89. The Results © 2010 DataXu, Inc. Privileged & Confidential Response Campaigns Brand Campaigns

90. Agenda Introductions Industry Overview DSP Learnings & Key Requirements RTB & Premium Inventory Branding vs Performance Success Stories Q&A with panelists © 2010 DataXu, Inc. Privileged & Confidential 34

92. Mobile Campaign Measurement – Your Questions Answered Wednesday, January 12, 2010 Noon EST Professional Development Classes (NYC) IAB Classes on Professional Presentations, and the Digital Ecosystem starting mid-January… stay tuned! IAB Annual Leadership Meeting Palm Springs, California February 27 – March 1, 2011

93. Credits, Future Webinars Earn Credits for attending IAB Webinars Individuals earn one (1) hour credit for each webinar attended through the IAB. For further information on the IAB Digital Advertising Certificate, please visit: www.iab.net/events_training/certificate Member Led Seminar Submissions If you are a member of the IAB, we encourage you to submit proposals for future webinars. There is no cost to members for these sessions, and we hope they will provide a valuable forum for members to showcase their latest insights, research, and technologies. To submit a webinar proposal, email luke@iab.net, or visit www.iab.net/member_webinar_submission

94. Q&A Please type your questions into the Questions tab on the right hand side of your screen