The document discusses the growth of programmatic advertising and challenges with its adoption. It notes that programmatic advertising is expected to have a 20.56% CAGR from 2015-2019. While 92% of media buying agencies and 67% of the overall ecosystem feel programmatic plays an important role, only 61% of publishers agree. Common challenges include a lack of understanding of how programmatic works, lack of transparency around ad placements, and technical complexity. The document recommends evangelization and training, operating in a trusted marketplace, creating greater transparency through more open data and APIs, and improving automation to increase programmatic adoption.

1. The E.T.T.A. Equation
AppNexus Inc. — Confidential!1
JC Conti, VP Publishers, EMEA!
Evolution of Programmatic
Publishing:!

2. 2
is the world’s leading
independent advertising
technology company!

3. It’s big. !
Really
big.!
AppNexus Inc. and Circle Research Ltd; 2015
3
of Global respondents feel that programmatic will
play an important or dominant role in the future of
digital advertising !
91%!

4. Advertising Growth will come from Programmatic
AppNexus Inc. - Confidential – Not for Distribution
4!
Global Advertising 2015 – 2019 . In Bn $!
Source:
IDC
and
AppNexus
es4mates
Global
Advertising!
$623
4.98%!
CAGR!
Digital!
Advertising!
$246!
11.53%!
CAGR!
Programmatic!
Advertising!
$61.9!
20.56%!
CAGR!

5. Rational benefits have driven strong adoption
AppNexus Inc. - Confidential – Not for Distribution
5!
AppNexus
Inc.
and
Circle
Research
Ltd;
2015
Targeting
Automation
Real-time
PROGRAMMATIC
92%
media buying
agencies…
67%
total
ecosystem…
61%
Publishers

6. Still: Challenges of adopting programmatic
AppNexus Inc. - Confidential – Not for Distribution
6! AppNexus
Inc.
and
Circle
Research
Ltd;
2015

7. So how to tackle those hurdles:
AppNexus Inc. - Confidential – Not for Distribution
7!
Lack of understanding on
how programmatic works
Fear of Advertising
appearing on undesirable
sites
Lack of transparency on
where advertisements
end up
Technical Complexity
Evangelization
& Training
Operate in a
Trusted
Marketplace
Create Greater
Transparency
Improve
Automation to
Increase Yield
E+T+T+A

8. Evangelization & Training
AppNexus Inc. - Confidential – Not for Distribution
8!

9. Operate in a Trusted Marketplace
• Aggressive Policies
• Product & Technology
• Initiatives
AppNexus Inc. - Confidential – Not for Distribution
9!

10. AppNexus Inc. - Confidential – Not for Distribution
10!
$-­‐
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
CPM
CPM
CPMs ì 175%

11. AppNexus Inc. - Confidential – Not for Distribution
11!
SEEKING THE TRUTH IN DATA!
0
0.00001
0.00002
0.00003
0.00004
0.00005
0.00006
Post-­‐click
conversion
rate
Post-­‐click
conversion
rate
Post-click Conversion Rate ì 130%

12. AppNexus Inc. - Confidential – Not for Distribution
12!
SEEKING THE TRUTH IN DATA!
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Buyer
spend
Buyer
spend
Buyer Spend è (Unchanged)

13. Create Greater Transparency
AppNexus Inc. — Confidential
13!
[IMAGE / VISUAL]!
beats!OPEN! CLOSED!

14. AppNexus Inc. — Confidential
14!
• Minimal
data
• Low
compa4bility
• Lack
of
granularity
• Hidden
costs
• Open,
limitless
data
• Open
API
• Granularity
• Actual
costs

15. Improve Automation
15!
“…If the objective of ad tech is to streamline and simplify the process by which digital inventory is
bought and sold, then the status quo is decidedly unsatisfying…”
BUYER!SELLER!
RTB Open Auction!
Class 1 Ad serving!
Deals!
Programmatic
Guaranteed!
Data Platform!
Yield Optim. /Analytic!

16. 16
AppNexus Inc. - Confidential – Not for Distribution!
Key
Takeaways!
EVANGELIZATION
+
TRUST
+
TRANSPARENCY
+
AUTOMATION
GREATER
PROGRAMMATIC
PLATFORM

17. Questions !
& Answers!
17
AppNexus Inc. — Confidential!