Thomvest Advertising Technology overview - Sept 2014

Adver&sing Technology Overview
September 2014
1

2
Total US Adver&sing Spend
$200
$180
$160
$140
$120
$100
$80
$60
$40
$20
$0
US Adver&sing Spending By Format ($B)
TV
Print
Radio
Digital (Ex-‐Mobile)
Mobile
Other
2011A
2012A
2013E
2014E
2015E
2016E
Source: eMarketer, Jefferies
Total ad spend con&nues to grow, fueled
by TV and Digital (display and mobile)
• Total ad spending expected to reach
$190.86B in 2013
• TV captures the lion share of the
market – 39.1% or $64.5B in 2012
Mobile and digital video are the fastest
growing segment
• By 2017, eMarketer expects mobile to
be 13% of the market
• Digital video (mobile and display) is
the fastest-‐growing segment
Print con&nues to decline, mostly driven
by decline in newspaper readership
• Newspapers is expected to fall to
$16.2B by 2016
• Magazines are expected to stabilize at
$15.1B per year for the foreseeable
future
Despite growth in digital, consumers
remain more resistant to digital formats
• 45% vs. 39% had a nega&ve a^tude
towards digital vs. TV formats
respec&vely
Note: Other includes outdoor and directories. Detailed defini&ons in appendix

US Digital Ad Revenue Format Share
50%
40%
30%
20%
10%
0%
Digital Ad Format Share (% of total US digital ad revenue)
Search Display
Banners
Classifieds Mobile Digital Video Lead
Generation
Rich Media
2006 2007 2008 2009 2010 2011 2012
Search retains the largest share of market
• Search has consistently owned more
than 40% of the market, and will
con&nue to grow steadily
Mobile is experiencing the most rapid
growth in terms of ad budget alloca&on
• Share of ad spend on mobile has
grown the fastest since IAB began
measuring in 2010
• Widespread smartphone adop&on,
faster connec&on speeds, new in-‐app
ad formats contribute to growth
Digital video is also growing quickly but
with caveats
• 75% of marke&ng professionals
globally plan to increase their on video
ad and content spend next year
• However, Tremor Q3 2013 reports
were lackluster, causing a 50% drop in
share price
Google owns majority of internet display
and mobile market share
• According to eMarketer, Google owns
52.36% of net 2012 mobile internet ad
revenues ($4.61B)
• Twiger is growing the fastest in digital
adver&sing, up 106.7% in 2012 at
$290M in revenue, up from $140M in
2011
Source: IAB , eMarketer 3

4
Adver&sing Technology Ecosystem
Adver+sing
Agency
Source: Rubicon, Cantor Fitzgerald, Comscore, Thomvest Research
Supply
Side
Pla8orm
Programma+c
Guaranteed
(Direct
Order
Automa+on)
Auc+on
Markets
(Ad
Networks
and
Exchanges)
Demand
Side
Pla8orms
Adver+sers
Agency
Trading
Desk
Publishers
(Inventory)
$$
$$
$$
$$
$$
$$
$$
$$
$$
$$
$$
$$

5
How Things Work: Third-‐Party Ad Serving
User
1 User’s browser
Publisher Web/
App Server
Publisher Ad
Server
Marketer’s ad 4
Marketer
Ad Server
5
6
Source: Thomvest Research, AdOpsInsider
SSP
Ad
Exchange
DSP1
DSP2
Content Distribu&on
Network
User hits the
website, publisher’s
web server is called
and sends back
content and ad tag.
2
sends ad request to
publisher ad server
along with cookie
informa&on.
Publisher’s ad
3
server sends back an
ad tag for user’s
browser to access
SSP for ad auc&on.
SSP chooses
winner and sends an
ad tag to the user
with marketer’s ad
server informa&on.
server sends ad tag to
user’s browser to call
the Content
Distribu&on Network.
CDN delivers ad
to user’s browser
and the marketer’s
ad server is called to
inject a 1x1 tracking
pixel.

6
How Things Work: Programma&c Ad Buying
Programma&c buying is an automated transac&on between the buyer and the seller where:
• the buyer can determine the quality and subsequently the price of the audience on the fly
• the seller can iden&fy the best value for their ad space
• the best sale price is determined through a mul&-‐party auc&on
• the best determined buyer gets to buy the ad spot
The auc&on between various par&es happens through an ad marketplace or an exchange and this auc&on leverages a
protocol called Real Time Bidding (RTB) which helps various par&es communicate with one another.
The Process:The Benefits:
Source: Persicopix

Seconds
7
How Things Work: Real Time Bidding (RTB)
User clicks on URL and publisher’s content begins to load
Seconds
Publisher asks its ad server if an ad is available. If not,
server asks Ad Exchange
0.04
Seconds
Ad Exchange federates ad request to mul&ple demand
side planorms (DSPs)
0.08
Seconds
Ad Exchange sends user’s anonymous profile, website
category, and page ad safety informa&on
0.10
Seconds
Each DSP overlays adver&ser targe&ng and budget rules,
and applies third-‐party data
0.12
Seconds
Each DSP algorithm evaluates and computes op&mal bid
for adver&ser
0.125
Seconds
Each DSP responds to Ad Exchange
0.13
Seconds
Ad Exchange runs a second-‐price auc&on and selects
winning bid form DSP response
0.14
Seconds
Ad Exchange sends price and ad from winning bid to
publisher’s ad server
0.18
Seconds
Publisher’s ad server tells browser which ad to display
0.19
Seconds
Adver&ser’s ad server sends winning ad to browser
0.23
Seconds
Browser displays web page including winning ad, and
signals to winning DSP the ad was viewed
0.31
0.0
0.36Seconds
The
en+re
RTB
ad
buying
process
takes
~
.36
seconds
Source: Turn, Thomvest Research

8
RTB Market Size
RTB is currently 20% of the digital display ad market but will con&nue to grow as more premium content is distributed on RTB and
Source: eMarketer
agribu&on and targe&ng technology improves.

9
Pricing Models in Digital Adver&sing
Adver+ser
Cost-‐Per Engagement
Effec-ve
Cost
Per
1000
Impressions
(eCPM)
Publishers
are
paid
under
a
common
denominator,
net
effec+ve
CPM.
For
CPE,
eCPM
is
calculated
as
(net
revenue/#
of
impressions)*1000.
eCPM
is
also
known
as
RPM
(revenue
per
mille)
Publisher
(CPE)
Adver&ser only pays if a
user completes an
ac&on. Common pricing
models:
• Cost-‐per-‐click (CPC)
• Cost-‐per-‐view (CPV)
• Cost-‐per-‐ac&on (CPA)
• Cost-‐per-‐install (CPI)
Cost-‐Per 1000
Impression (CPM)
Adver&sers pay
whenever an ad is
shown, regardless of
whether user converts.
CPM is used more for
brand lio rather than
user engagement.
Source: IAB, AppFlood, Thomvest Research
CPM Pricing Model Example
Adver&ser
Buys 10,000
impressions at
$5 gross CPM
Total cost:
$5*10,000
= $50
Intermediary
(ad network)
Takes 40% cut
from publisher
Total revenue:
40%*$50=$20
Publisher
Earns a net CPM
of $3 (60%*$5)
Total revenue:
$3/1,000*
10,000=$30
CPE Pricing Model Example
Adver&ser
Buys app installs
at $5 per install.
10 installs aoer
10,000
impressions.
Total cost:
$5*10=
$50
Intermediary
(ad network)
Takes 40% cut
from publisher
Total revenue :
40%*$50=$20
Publisher
Earns a net
eCPM of $3
(60%*$50/
10,000)*1000
Total revenue:
$3/1,000*
10,000=$30
Methods to Calculate CPM and eCPM
eCPM (CPI) = Click-‐Through-‐Rate x Install-‐Rate x Bid (CPI) x 1000
eCPM (CPC) = Click-‐Through-‐Rate x Bid (CPC) x 1000
eCPM (CPM)= Bid (CPM) x 1000
Note: Adver&sers pay gross CPM, Publishers earn net CPM aoer intermediary costs.

10
Pricing Models in Digital Adver&sing
Performance-‐based digital ads generate the largest por&on of ad revenue as compared to CPM and hybrid ads.
Note: Performance-‐based ads are synonymous with cost-‐per-‐engagement pricing models.
46%
Ad Revenue by Pricing Model (% of Ad Revenue)
48%
45%
39% 37%
33% 31%
32%
41%
47%
51%
57%
59%
62%
65%
66%
13%
5% 4% 4% 4% 5% 4%
2%
70%
60%
50%
40%
30%
20%
10%
0%
2005 2006 2007 2008 2009 2010 2011 2012
CPM Performance Hybrid
Source: IAB, Thomvest Research

11
Top 20 Ad Networks (ComScore)
250,000
200,000
150,000
100,000
50,000
0
Sept. 2013 -‐ Top 20 Ad Networks and Buy Side Networks by Unique Visitor (000)
Source: Comscore, Thomvest Research

12
Notable DSPs and Retarge&ng Companies
DataXu is a DSP for omnichannel targe&ng,
guaranteed media, and private exchanges.
Employees & Status: 290+, Private
Products: DX3 Planorm (DSP), DX Social
(social DSP), DX Brand (brand management),
DX Mobile (mobile DSP), and DX Video
Investors: Atlas Ventures, Flybridge, Menlo
Ventures, Thomvest Ventures
Turn is a DMP and DSP that uses online and
offline sources to drive mul&-‐channel
marke&ng decisions.
Products: Origin Digital Marke&ng Hub, Origin
Media DSP, Origin Analy&cs, Origin Data
Management Planorm, and Origin Site
Investors: Norwest Ventures, Shasta, Trident
Capital, Focus Ventures
MediaMath is a DSP and DMP that has been
used by over 3,500 brands.
Products: TerminalOne (RTB, campaign
management, targe&ng), Feature Spotlight
(audience buying and private marketplace),
and MathClarity (analy&cs).
Investors: Silicon Valley bank, QED Investors,
European Founders Fund, Safeguard
Scien&sts
Rockenuel is a DSP ad network that generates
two-‐thirds of its revenue from performance
ads and the rest from brand ads.
Employees & Status: 1000+, Public (FUEL)
Products: Rocket Fuel for display, video,
mobile, social, marketers, publishers and
networks
Investors: MDV, Nokia Growth Partners,
Labrador Ventures, Comerica Bank,
Northgate, Summit Partners, Cross Creek
Criteo is an adver&sing retarge&ng and
programma&c ad network (6,000 publishers).
The company focuses on product-‐level
recommenda&on ads based on a CPC model.
Employees & Status: 1000+, Public (CRTO)
Products: Criteo’s Performance Op&miza&on
Planorm (CPOP), Programma&c buying, FB
Exchange, Mobile, Ad-‐X Tracking
Investors: Bessemer Venture Partners, Index
Ventures, IDInvest Partners, Elaia Partners
AdRoll is a retarge&ng company. Unlike Criteo,
AdRoll does not use a media arbitrage model;
AdRoll generates revenue based on % of
media spend.
Features: Facebook retarge&ng, customer
segmenta&on, analy&cs, Liquid Ads
(dynamically retargeted ads)
Investors: Founda&on Capital, Accel,
Floodgate, Merus Capital, Peter Thiel
Source: TechCrunch, AdExchanger, Inc., Businessweek, SEC, Linkedin, Forbes, Thomvest
Note: All informa4on is publicly available

DSP Market Share (Desktop & Mobile)
According to Index Exchange, over 70% of ad spend on its planorm was concentrated among only 5 DSPs. Top three DSPs
accounted for 42% of the market.
DSP 1
35%
Market Share by DSP, Q1’13
DSP 2
DSP 313%
12%
DSP 6
6%
DSP 5
7%
DSP 4
11%
DSP 7
4%
DSP 8
4%
DSP 9
4%
DSP 10
1%
Other
3%
Market Share by DSP, Q2’13
DSP 1
20%
DSP 2
17%
DSP 3
13%
Other
6%
DSP 4
12%
DSP 9
4%
DSP 8
5%
DSP 7
6%
DSP 6
7%
DSP 10
3%
DSP 5
7%
Note: Index by CasaleMedia is an exchange layer that enables publishers and suppliers to sell their ad impressions in real &me (in essence, a SSP).
Index tracks over 40,000 brands and adver&sers globally on a daily basis across RTB marketplaces. Index processes 3 to 4 billion bids per day.
Source: CasaleMedia (Index Exchange)13

14
Rubicon is a SSP and premium ad network. The
company claims it powers 40% of the top 500
publishers and works with over 100,000
adver&sers.
Employees & Status: 450+, Public (RUBI)
Products: Adver&sing Automa&on Cloud,
Buyer Cloud, Seller Cloud
Investors: Clearstone Ventures, Mayfield, IDG
Ventures, Peacock Equity, SVB, Square 1
PubMa&c is a SSP. The company claims it
works with 400+ adver&sing partners.
Products: PubMa&c Premier (ad solu&ons for
large media companies), AdFlex (ad
purchasing system), REVV (yield op&miza&on
planorm), PubConnect, and PubMa&c Ad
Auc&on Engine
Investors: Nexus VP, DFJ, Helion VP, August
Capital, SVB
Admeld is an SSP that powers Google’s
DoubleClick for Adver&sers. Admeld was
acquired for ~$400M in 2011.
Employees & Status: N/A, Acquired by Google
Features: Ad serving, yield and sales
management, mobile, video, audience
management, rich media
Investors: Foundry Group, Spark Capital,
Norwest Venture Partners, Time Warner
Investments
MoPub is a mobile SSP and RTB ad exchange.
As of May 2013, MoPub conducts +2b ad
auc&ons each day and reaches more than
550m unique devices a month.
Employees & Status: 59+, Acquired by Twiger
Products: Ad Serving, Network media&on,
MoPub Marketplace, Demand-‐Side Planorm,
Private Marketplace, Rich Media
Investors: Jafco Ventures, Accel Partners,
Harrison Metal Capital, Iris Capital
Nexage is a mobile SSP and private exchange.
The company claims to work with 300+
publishers. 50% of ad spend through Nexage
comes from DSPs, 40% from ad networks, and
10% from trading desks.
Employees & Status: 85+, Acquired by
Millennial Media
Products: RTB, Media&on, Private Exchange,
Ad Server, Nexage Connect
Investors: GrandBanks Capital, Relay
Ventures, SingTel Inno8, Hearst Ventures
LioDNA powers OpenX’s publisher SSP
solu&ons. OpenX is RTB ad exchange and SSP,
ranked second behind Google in terms of
publisher ad server install base.
Employees & Status: N/A, Acquired by OpenX
Features: yield op&miza&on, cross-‐device
targe&ng, transparency
Investors: Ben Franklin Technology Partners,
various Angel investors
Notable SSPs

15
Bluekai is a data exchange and DMP. Bluekai
has data on +200m customers across 10,000
agributes and executes over 18m data traders
per day.
Oracle
Products: DMP, Audience Data Marketplace,
Mobile DMP, Audience Analy&cs Suite
Investors: Redpoint Ventures, e.ventures,
Bagery Ventures, GGV Capital
eXelate is an data exchange for behavioral
targe&ng data. eXelate has a 700m+ user
database and 200+ data partnerships
Products: Op&X (analy&cs), conneX (data
sales infrastructure), eXchange (data
marketplace), maX (custom model service)
Investors: Carmel Ventures, Menlo Ventures,
Trident Capital, NewSpring Capital
[X+1] is a DMP and DSP, among other
marke&ng sooware offerings.
Rockenuel
Products: Origin Digital Marke&ng Hub
planorm includes the Origin Media DSP,
Analy&cs, DMP, and site op&miza&on
Investors: Advanced Technology Ventures,
Hudson Ventures, Blue Chip, Intel Capital,
Areas Capital
Aggregate Knowledge (AK) is a DMP. Most of
AK’s customers are direct adver&sers charged
on a fixed fee and/or per-‐impression basis. AK
gets data from publishers and data providers
but does not pay them, rather AK gives them
visibility to adver&sers.
Neustar
Products: Media Intelligence Planorm
Investors: First Round Capital, NSV, KPCB,
DAG Ventures, OVP, Founda&on Capital
Lotame is a data exchange and a DMP. The
bulk of Lotame’s revenue comes is from a
license fee plus usage model.
Products: Crowd Control (audience DMP),
Smart Data (audience targe&ng), Crowd
Control Intelligence (audience insight) and
G.O.A.L. (audience segment op&miza&on)
Investors: Bagery Ventures, Hillcrest,
Emergence, Pinnacle Ventures, beta works
Krux is a DMP with a focus on security. Krux’s
planorm reaches more than 600 million users
worldwide.
Products: Data Sentry & Krux Inspector
(security), SuperTag & ADM (analy&cs and
management), Interchange (data
mone&za&on)
Investors: Accel Partners, IDG Ventures
Notable DMPs

16
Notable Data Providers
Acxiom collects data on consumers from
public filings, consumer surveys, magazine
subscriber lists, warrant cards, and more. The
company executes +1 tril. data transac&ons
per week and maintains a database of 700 mil.
customers.
Employees & Status: 6,300+, Public (ACXM)
Business divisions: Marke&ng and data
services, IT infrastructure, e-‐mail fulfillment,
and outsourced call-‐centers
LiveRamp enables ad targe&ng based on
offline customer data. The company is focused
solely on data onboarding. LiveRamp’s services
are mostly used by DSPs and DMPs.
Employees & Status: 80+, Acquired By Acxiom
Investors: Ron Conway, North Bridge
Ventures, SooTech VC, Rembrandt, Founders
Fund, Felicis Ventures, Peter Thiel, Jeff Clavier
Datalogix collects data on customers mainly
from agreements with companies that offer
loyalty cards or membership programs. The
company claims it holds data on almost every
U.S. household and more than $1 tril. worth of
transac&on data
Products: DLX Planorm, DLX ROI, DLX Net
Investors: General Catalyst, Costanoa, Sequel
VP, IVP
Alliance Data’s Epsilon provides data
management and loyalty marke&ng services
for 750+ clients. By managing e-‐mail lists for
their clients and mapping them to loyalty
program data, Epsilon has built transac&on
profiles on 130m households.
Employees & Status: 3800+, Public (ADS)
Products: Marke&ng Data, Online Targe&ng,
Agility Loyalty (loyalty programs), Agility
Harmony (email), Aspen CRM (automo&ve)
Experian marke&ng services collects data from
Hitwise (IP-‐based web traffic measurement)
and CheetahMail (e-‐mail planorm) along with
Experian’s extensive consumer credit
databases that can be used to target
customers online.
Employees & Status: 9800+, Public (EXPN)
Features: Consumer insights, targe&ng, cross-‐
channel marke&ng, data quality
Neustar collects telco data that can be used to
target customers offline and online. Notably,
Neustar acquired TARGUSinfo in 2011 for
$650M. At the &me, TARGUSinfo was
responsible for 86% of all U.S. cable and VOIP
caller ID subscribers.
Employees & Status: 1400+, Public (NSR)
Features (marke&ng only): iden&fica&on &
verifica&on, customer acquisi&on, customer
iden&ty management, SMS messaging

17
Ad Formats – Global
50%
40%
30%
20%
10%
0%
Display (% of Total Impressions)
120x600
160x600
180x150
300x250
300x600
468x60
728x90
Other
100%
75%
50%
25%
0%
Mobile (% of Total Impressions)
300x50
300x250
320x50
728x90
75%
50%
25%
0%
15-‐second pre-‐
roll
roll companion
roll
roll companion
Video (% of Total Impressions)
Source: Turn
$12
$11
$10
$9
$8
$7
$6
$5
$4
$3
$2
$1
$0
eCPM – Global Ad Spend Jul-‐Sept. 2013
Display
Mobile
Video
July
August
September
Defini&ons
Display: Ads that appear on website on Desktop, non –search
Mobile: In-‐app and mobile web adver&sements, includes sta&c,
interac&ve, and video ads
Video: Video adver&sements that are displayed on desktop
formats, non-‐mobile

Cookie tracking is highly prevalent on desktop and much less prevalent on mobile. The majority of impressions served with the
% of Mobile Impressions Q2’13
38%
62%
% of Desktop Impressions Q2’13
89%
11%
Cookie
No Cookie
18
Cookie Prevalence
Source: Casale Media (Index Exchange)
Cookie
No Cookie
% of Impressions by Cookie State Q2’13
17%
47%
36%
No Cookie
Cookie & 3P Data
Cookie & No 3P Data
Distribu&on of Impressions without Cookies Q2’13
27%
31%
41%
1%
Windows Desktop
Mac Desktop
Mobile
Other Desktop
use of cookies, about half were served with cookies and third-‐party data.

19
Bid Volume and Avg. CPM (Desktop & Mobile)
According to data from Index Exchange, there is a moderate degree of consistency in bid volumes and avg. CPMs across quarters.
Travel, Auto, and Telecom have the highest avg. CPMs while Retail, Telecom and Financial have the largest bid volumes.
100
90
80
70
60
50
40
30
20
10
0
Top 10 Sectors by Bid Volume (Indexed), Q2’13
Bid Volume
Avg. CPM
100
90
80
70
60
50
40
30
20
10
0
Top 10 Sectors by Bid Volume (Indexed), Q1’13
Bid Volume
Avg. CPM
Source: Casale Media (Index Exchange)

20
US Digital Display Ad Spending
Google and Facebook generate the largest por&on of US digital display ad revenue. Yahoo! is expected to decline substan&ally in
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Net US Digital Display Ad Revenue Share
2011
2012
2013
2014
2015
Google
Facebook
Yahoo
Microsoo
Aol
Twiger
Other
the coming years while Twiger con&nues to grow display revenues at nearly 100% year over year.
$12.3B
Total Revenue:$15B
$17.7B
$20.73B
$23.9B
Source: eMarketer

21
Top 20 Video Ad Networks (ComScore)
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
August 2013 -‐ Top 20 Video Proper&es by Unique Visitors (000’s) -‐ (Comscore)
Total Unique Vieweres
Average Daily Unique Viewers
Source: ComScore
Total Unique Viewers
Average Daily Unique Viewers

22
Notable Video Ad Tech Companies
Tremor is a video ad network that generates
the majority of its revenue through media
sales of premium digital video inventory.
Employees & Status: 345+, Public (TRMR)
Products: Video Hub, Video Hub for
Adver&sers (VHA), Tremor Video Network
Investors: SV Angel, Canaan, Masthead,
Meritech, SAP Ventures, DFJ, W Capital
Partners, European Founders Fund
TubeMogul is a programma&c video ad SaaS
planorm that allows adver&sers to buy media
from public and private exchanges, instead of
buying and reselling inventory.
Employees & Status: 375+, Public (TUBE)
Products: Play&me Video Adver&sing,
OneLoad
Investors: Trinity, Founda&on Capital, Knight’s
Bridge, SingTel, Northgate
YuMe is a video ad network that offers
publisher-‐ and agency-‐side technologies. YuMe
is ooen used in conjunc&on with primary ad
serving planorms such as DoubleClick and
Freewheel.
Employees & Status: 500+, Public (YUME)
Products: Connected Audience Network,
Service Providers, Publishers
Investors: SV Angel, Accel, Kholsa, DAG, Intel,
Samsung, Translink, WestSummit
Videology is a video DSP for RTB through
exchanges, including their own exchange.
Videology generates revenue through
arbitrage of guaranteed inventory.
Technology: Ad decisioning, advanced
targe&ng, repor&ng & analy&cs
Investors: NEA, Valhalla, Comcast, Pinnacle
Adap.tv provides programma&c exchange
technology to adver&sers and publishers.
Adapt.tv does not sell media but rather takes a
cut of transac&ons. Adap.tv offers premium
inventory via private exchanges
Employees & Status: 300+, Acquired by AOL
Products: Pathway Planorm, Marketplace
Investors: Gemini Israel, Redpoint, BVP, Spark
Capital
BrightRoll is a programma&c video ad network
and private & public exchange. According to
comScore, BrightRoll is second to Google
(Youtube) in terms of unique visitors.
Products: Brightroll Exchange (BRX), BRIQ (ad
buying), Targe&ng, Op&miza&on Engine
Investors: True Ventures, Adam Street
Partners, Scale VP, KPG, Comerica, Trident
Capital, Felicis Ventures
Premium brand
network, scager, non-‐
programma&c
Performance brand
network, scager,
programma&c
Video DSP,
programma+c
Video DSP for RTB,
video ad exchange
Video DSP, private and
public exchange,
programma+c
Video ad market, private
and public exchange,
programma&c

23
Mobile eCPMs
According to MoPub, eCPMs and bidding compe&&on are rising for mobile adver&sing formats. Furthermore, iOS consistently
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
provides higher eCPMs than Android.
MoPub Marketplace eCPM (Banner + Inters&&als)
May-‐12
Jun-‐12
Jul-‐12
Aug-‐12
Sep-‐12
Oct-‐12
Nov-‐12
Dec-‐12
Jan-‐13
Feb-‐13
Mar-‐13
Apr-‐13
May-‐13
Jun-‐13
Jul-‐13
Aug-‐13
Sep-‐13
8
6
4
2
0
Compe&&ve Factor (Avg. Bids Per Auc&on Won)
Q1 '13
Q2 '13
Jul-‐13
Aug-‐13
Sep-‐13
Source: MoPub
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
iOS vs. Android eCPM
iOS
Android

24
Mobile Ad Network Landscape
Premium Mobile Ad Network
Rich Media and Video Networks
Source: Mobyaffiliates, MobiThinking, Kargo, Thomvest Research
Mobile Exchanges
Mobile Ad Networks
Demand Side Planorms
Ad Servers & Supply Side Planorm
Rewards Networks
Local Mobile Networks
Cross Promo&on Networks
Data Partners
CPA Ad Networks
Acquired

26
Top 10 Adver&sers by Ad Spend
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
INTERNET
DISPLAY
RADIO
TV
OUTDOOR
NEWSP.
MAGAZINES
UNMEASURED
Aoer many years of growth, top adver&sers’ ‘Internet’ spend remained consistent at 9% between 2011-‐12
Note: this figure includes display only (excluding search, video and mobile channels)
Source: AdAge
Top Adver&sers by Ad Spend in 2012 ($MM)

27
Digital vs. Analog % of Spend
Publicis Clients’ % of Spend to Digital/IP vs. Analog By Industry Ver&cal
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Financial Services
TMT
Leisure/Luxury/Energy
Auto
Healthcare
Retail
Fast Moving Consumer Goods
Digital/IP
Analog
Source: Publicis Groupe

28
Top 15 Agencies Holding Co.'s by Revenue
Top 10 agency holding companies generate 42% of the worldwide and 42% of the US revenues of the top 50 agency holding
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
WPP
Omnicom
Group
Publicis
Groupe
Interpublic
Group of
Cos.
Dentsu
Inc.* 1
Havas
Hakuhodo
DY
Holdings*
Alliance
Data
Systems
Corp.'s
Epsilon* 2
MDC
Partners
Experian's
Experian
Marke&ng
Services
Acxiom
Corp.
Sapient
Corp.'s
SapientNitro
IBM Corp.'s
IBM
Interac&ve*
DJE
Holdings 3
Cheil
Worldwide
Top 15 Agency Holding Co. Ranked by 2012 Revenue ($M)
Worldwide
US
1. Es&mated pro forma revenue including Aegis Group (acquired in March 2013) and Roundarch (acquired by Aegis in March 2012). 2. Es&mated pro forma
revenue including Hyper Marke&ng (acquired in November 2012) and Aspen Marke&ng Services (acquired in May 2011). 3. Owns Edelman.ca
Source: AdAge DataCenter
companies. Overall, revenues grew 4.5% worldwide and 5.3% in the US.

29
Agency Revenue Composi&on
U.S. Agency Revenue by Est. Agency Revenue Breakdown – J.P. Morgan Category – Ad Age
CRM , 35%
PR, 10%
Specialty,
10%
Crea&ve,
30%
Media
Buying,
15%
Adver&sing 45%
Marke&ng Services 55%
Source: AdAge, J.P. Morgan
Agency
Discipline
2012 Revenue
Growth Rate
(vs. 2011)
Digital (From
All Disciplines)
$11.6B
6.9%
Adver&sing
$11B
4.8%
CRM/Direct
$6.6B
3.6%
Public Rela&ons
$3.9B
5.6%
Health Care
$3.6B
2.1%
Media
$3.3B
7.4%
Promo&on
$2.9B
9.2%

30
Top 5 Agencies Worldwide by Category
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
Dentsu [Dentsu]
BBDO
Worldwide*
[Omnicom]
$1,200
$1,000
$800
$600
$400
$200
Source: AdAge DataCenter, 2013
McCann Erickson
Worldwide
[Interpublic]
Hakuhodo
[Hakuhodo DY
Holdings]
DDB Worldwide
[Omnicom]
Agencies by 2012 Wordwide Revenue ($M)
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
CRM/Direct-‐Marke&ng Networks by 2012 Worldwide Rev. ($M)
Epsilon [ Alliance
Data Systems]
Wunderman
[WPP]
Experian
Marke&ng
Services
(Experian)
Acxiom Corp.
DigitasLBi
[Publicis]
$1,200
$1,000
$800
$600
$400
$200
$0
Digital Agency Networks by 2012 Worldwide Revenue ($M)
Wunderman
[WPP]
Digital@Ogilvy
[WPP]
DigitasLBi
[Publicis]
SapientNitro
[Sapient Corp.]
IBM Interac&ve
[IBM Corp.]
$0
Starcon
MediaVest
[Publicis]
OMD Worldwide
[Omnicom]
Mindshare
Worldwide
[WPP]
Carat [Dentsu]
ZenithOp&media
[Publicis]
Media Agencies by 2012 Worldwide Revenue ($M)

31
Top 5 US Agencies by Category
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
iCrossing [Hearst
Corp]
360i [Dentsu]
iProspect
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
Source: AdAge DataCenter, 2013
[Dentsu]
Plaƒorm
Adver&sing
Performics
[Publicis]
US Search-‐Marke&ng Agencies by 2012 Revenue (000’s)
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Wunderman
[WPP]
SapientNitro
[Sapient Corp.]
Deloige Digital
[Deloige Touche
Tohmatsu]
Razorfish
[Publicis]
Ogilvy & Mather
Adver&sing
[WPP]
US Mobile-‐Marke&ng Agencies by 2012 Revenue (000’s)
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
US Experien&al/Event-‐Marke&ng Agencies by 2012 Rev. (000’s)
George P.
Johnson [Project
WorldWide]
GMR Marke&ng
[Omnicom]
Jack Morton
Worldwide
[Interpublic]
Derse
Team Enteprises
[MDC Partners]
$0
Integer Group
[Omnicom]
MarketStar
[Omnicom]
George P.
Johnson [Project
WorldWide]
Momentum
Worldwide
[Interpublic]
GMR Marke&ng
[Omnicom]
US Promo&on Agencies by 2012 Revenue (000’s)

32
Agency Holding Company Structure
Source: BMO
Capital
Markets
Adver&sing
Marke&ng Services
Key Clients
Major: JWT, Ogilvy & Mather, Y&R, Grey
Other: United Group, Bates Asia, CHI, Tapsa
Media Buying: GroupM (Mediaedge:cia,
Mindshare,MediaCom, Maxus)
CRM/Direct: Wunderman, OgilvyOne, 141
Worldwide, G2, 24/7 Real Media
PR: Hill & Knowlton, Burson-‐Marsteller, Ogilvy
Public Rela&ons, Cohn & Wolfe
Market Research/Other: Kantar Group,
CommonHealth, Landor
Ford, Unilever, P&G,
Microsoo, Dell, J&J, Colgate,
Nestle, GSK, BP, Allianz, Pfizer,
IBM, HSBC
Adver&sing
Marke&ng Services
Key Clients
Global Adver&sing Network: BBDO, BBD, TBWA
Direct marke&ng and digital: Rapp
Other: Goodby Silverstein, GSD&M, Merkley +
Promo&on and events: Integer
Partners
PR: Fleishman-‐Hillard
Media Planning and Buying: OMD, PHD,
Prometheus
McDonald’s, Pepsi, Nissan,
AT&T, Hewleg-‐Packard,
Johnson & Johnson,
Chevrolet, Mars
Adver&sing
Marke&ng Services
Key Clients
Global Adver&sing Network: McCann Erickson,
Draofcb, Lowe + Partners
Other: Compbell-‐Ewald, Hill Holiday, Gotham
Media Planning and Buying: Universal McCann,
Ini&a&ve
Interac&ve: R/GA, MRM Worldwide
Draofcb, Jack Morton, Weber Shandwick
General Motors, Johnson &
Johnson, Microsoo,
Mastercard, P&G, Verizon,
Unilever, Coca-‐Cola
Adver&sing
Marke&ng Services
Key Clients
Major: Publicis WW, Saatchi & Saatchi, Leo
CRM/Direct: Digitas, ARC Worldwide, Razorfish,
Burneg
Rosega
Other: Fallon Worldwide, Kaplan Thaler, Bartle
PR: Manning, Selvage & Lee
Bogle Hegarty
Other: Publicis Healthcare Group, Bromley, iSE
Media Buying: Publicis Groupe Media, Zenith
Op&media, Starcom MediaVest
P&G, Toyota, Ferrero, Coca-‐
Cola, General Mills, Disney,
Nestle, Sanofi-‐Aven&s,
L’Oreal, Carrefour

Relevant WPP Umbrella Agencies: GroupM (Mindshare, MEC, MediaCom, Maxus)
• 24/7 Media – Digital ad management planorm for adver&sers and publishers. SSP is called Open
AdStream. 24/7 provides ad network and analy&cs
• Media Innova&on Group – Develops new technology for acquiring, op&mizing and measure
digital media
• GroupM Next – Research agency focused on online, search, social, mobile and emerging markets
33
Agency Trading Desks
Holding Company
Media Group
Source: BMO
Capital
Markets,
Thomvest
Research
Agency Trading
Desk
Other Tech-‐Focused Specialty Agencies
Relevant Omnicom Umbrella Agencies: Omnicom Media Group, PHD, OMD
• Annalect – Data and analy&cs driven marke&ng technology planorm. Used by nearly all of
Omnicom’s media planning and buying clients to build insights and dash boards. Includes the
following:
• Resolu&on Media – Behavior, search, social media, mobile and display marke&ng
• BrandScience – Business and marke&ng consultancy, econometrics
• TargetBase – Database marke&ng agency, provides crea&ve, analy&cs, tech, strategy
• Promoetheus – Spun off from OMD in 2005, focused on ROI and accountable media
Relevant IPG Umbrella Agencies: Universal McCann, Ini&a&ve
• Reprise Media – SEO, SEM, SMM and custom solu&ons
• Ansible – Full-‐service mobile marke&ng agency; crea&ve, strategy, analy&cs, texts, QR codes
• Geomentum – Hyper-‐local marke&ng and media strategy
• Shopper Sciences – Full-‐service shopper marke&ng consultancy
• IPG Media Lab – New product analysis and development, planorm resource
Relevant Publicis Umbrella Agencies: Vivaki (Starcom MediaVest, ZenithOp&media)
• Digitas – Number one digital agency in the US by revenue
• Razorfish – All aspects of digital campaigns from crea&ve to ad buying across channels
• Big Fuel – Social marke&ng agency
• CRM365 – Social/mobile data-‐lead offering
• Performics – SEO and SMO services
• Vivaki Nerve Center – Used by en&re Vivaki network; tests new technologies, tracking, bid
management, data partnerships, analy&cs

Venture capital investment in adver&sing technology reached an all-‐&me high in 2011. VC investment in ad tech declined in 2013
250
200
150
100
50
35
Global VC Investment in Ad Tech
74
105
$2,500
$2,000
$1,500
$1,000
$500
Source: Crunchbase, Pitchbook Data
Ad Tech VC Deal Count and Amount Raised 2005-‐2014 ($MM)
159
as compared to 2012 and 2011.
193
157
201
222
237
217
139
0
$0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Total Capital Invested ($M)
Deal Count

36
Recent US VC Financings in Ad Tech
Company
Deal Date
Deal Size
Raised to Date
VC Round
HQ Loca&on
Adjust
08-‐Sep-‐2014
7.60
11.90
4th Round
Berlin, Germany
BlueCava
04-‐Sep-‐2014
1.50
36.87
6th Round
Irvine, CA
Netser&ve
04-‐Sep-‐2014
3.00
21.27
3rd Round
Morrisville, NC
xAd
04-‐Sep-‐2014
50.00
92.19
7th Round
New York, NY
Adinch
03-‐Sep-‐2014
3.00
4.00
2nd Round
San Francisco, CA
Verve Mobile
26-‐Aug-‐2014
4.10
41.57
7th Round
Carlsbad, CA
Datanyze
25-‐Aug-‐2014
2.00
2.00
1st Round
San Mateo, CA
AdStage
13-‐Aug-‐2014
6.25
8.78
4th Round
San Francisco, CA
Adello
12-‐Aug-‐2014
2.00
2.00
1st Round
Redwood City, CA
EverString
12-‐Aug-‐2014
12.00
12.00
2nd Round
San Mateo, CA
Windsor Circle
12-‐Aug-‐2014
5.25
7.69
4th Round
Durham, NC
July Systems
08-‐Aug-‐2014
3.25
58.18
7th Round
Burlingame, CA
JoopLoop
07-‐Aug-‐2014
0.03
0.03
1st Round
Hoboken, NJ
VentureBeat
07-‐Aug-‐2014
3.28
3.64
2nd Round
San Francisco, CA
Reten&on Science
05-‐Aug-‐2014
7.00
9.05
3rd Round
Santa Monica, CA
Smaato
05-‐Aug-‐2014
25.00
47.00
4th Round
San Francisco, CA
ADmantX
31-‐Jul-‐2014
2.40
6.60
3rd Round
West Harnord, VT
Ds&llery
30-‐Jul-‐2014
24.32
56.00
3rd Round
New York, NY
Kixer
29-‐Jul-‐2014
1.00
1.00
1st Round
Los Angeles, CA
Mobile Ac&on
23-‐Jul-‐2014
0.81
0.81
1st Round
San Francisco, CA
SmartZip Analy&cs
23-‐Jul-‐2014
12.00
23.05
3rd Round
Pleasanton, CA
Glow Digital Media
22-‐Jul-‐2014
7.00
8.30
2nd Round
London, United Kingdom
Intent Media
21-‐Jul-‐2014
22.70
50.99
3rd Round
New York, NY
Supersonic
21-‐Jul-‐2014
15.00
23.20
3rd Round
San Bruno, CA
Monetology
18-‐Jul-‐2014
1.50
1.50
1st Round
Atlanta, GA
Source: Pitchbook Data

37
Recent US VC Financings in Ad Tech Cont.
Company
Deal Date
Deal Size
Raised to Date
VC Round
HQ Loca&on
Capillary Technologies
17-‐Jul-‐2014
14.00
35.60
4th Round
Bangalore, India
Locket
17-‐Jul-‐2014
0.02
0.52
3rd Round
New York, NY
AdAdapted
11-‐Jul-‐2014
0.75
1st Round
Ann Arbor, MI
Ohana Companies
11-‐Jul-‐2014
0.79
15.91
5th Round
Wilmington, DE
Tapad
30-‐Jun-‐2014
7.00
16.80
5th Round
New York, NY
BrightFunnel
29-‐Jun-‐2014
1.00
1st Round
San Francisco, CA
App Annie
27-‐Jun-‐2014
17.00
39.00
4th Round
Beijing, China
ContextLogic
27-‐Jun-‐2014
50.00
74.70
4th Round
San Francisco, CA
LiquidM
27-‐Jun-‐2014
3.67
5.45
2nd Round
San Francisco, CA
White Ops
24-‐Jun-‐2014
11.09
11.09
1st Round
New York, NY
OwnerIQ
20-‐Jun-‐2014
11.00
39.36
6th Round
Boston, MA
TapFwd
19-‐Jun-‐2014
0.15
0.15
1st Round
San Francisco, CA
Appier
18-‐Jun-‐2014
6.00
7.00
2nd Round
Taipei, Taiwan
Pixability
18-‐Jun-‐2014
1.80
10.97
4th Round
Boston, MA
Rhiza
17-‐Jun-‐2014
3.00
3.00
1st Round
Pigsburgh, PA
Wayin
17-‐Jun-‐2014
13.10
34.24
2nd Round
Denver, CO
LaunchHub
16-‐Jun-‐2014
1.83
1.83
1st Round
Redwood City, CA
mNectar
16-‐Jun-‐2014
7.00
7.08
1st Round
San Francisco, CA
BrightRoll
13-‐Jun-‐2014
1.24
37.52
5th Round
San Francisco, CA
Snipi
12-‐Jun-‐2014
3.10
7.42
3rd Round
Philadelphia, PA
Placed
10-‐Jun-‐2014
10.00
13.40
3rd Round
Seagle, WA
Yieldbot
05-‐Jun-‐2014
18.00
30.35
4th Round
New York, NY
Yext
04-‐Jun-‐2014
50.25
116.44
7th Round
New York, NY
Free ATM
03-‐Jun-‐2014
0.75
1.09
3rd Round
Brooklyn, NY
MediaMath
03-‐Jun-‐2014
176.00
222.92
7th Round
New York, NY
BlueConic
28-‐May-‐2014
4.00
8.00
3rd Round
Boston, MA
Datalogix
28-‐May-‐2014
45.25
91.97
6th Round
Westminster, CO

38
Global Ad Tech M&A Ac&vity
Note: Transac&on amounts do not encompass every recorded deal; some private market acquisi&ons are not disclosed. However, deal count encompasses
disclosed and undisclosed transac&ons.
Global Ad Tech M&A Ac&vity by Deal Count (2008-‐2013)
24
20
34
35
46
39
42
2008
2009
2010
2011
2012
2013
2014

39
Recent Ad Tech M&A Ac&vity
Company
Deal Date
Deal Size
Total Raised
Acquirer
HQ Loca&on
[x+1]
05-‐Sep-‐2014
230.00
67.78
Rocket Fuel
New York, NY
Luminate
05-‐Sep-‐2014
30.00
Yahoo
Mountain View, CA
InsightExpress
26-‐Aug-‐2014
25.00
Milward Brown
Stamford, CT
adSage
21-‐Aug-‐2014
100.00
20.00
BesTV
Beijing, China
LiveRail
15-‐Aug-‐2014
500.00
5.00
Facebook
San Francisco, CA
OnSwipe
05-‐Aug-‐2014
19.40
Beanstock Media
New York, NY
BlueKai
23-‐Jul-‐2014
425.00
37.49
Oracle
Cuper&no, CA
Grow Mobile
16-‐Jul-‐2014
42.00
1.00
Perion
San Francisco, CA
Zoove
14-‐Jul-‐2014
67.87
Mblox
Palo Alto, CA
LiveRamp
01-‐Jul-‐2014
310.00
32.00
Acxiom
San Francisco, CA
Jirbo
24-‐Jun-‐2014
350.00
2.00
Opera Sooware
Los Angeles, CA
mDialog
19-‐Jun-‐2014
8.15
Google
Toronto, Canada
Kontera
11-‐Jun-‐2014
150.00
36.16
SingTel
San Francisco, CA
Namo Media
05-‐Jun-‐2014
50.00
1.90
Twiger
San Francisco, CA
NowSpots
02-‐Jun-‐2014
25.50
1.10
Marin Sooware
Chicago, IL
Dis&mo
28-‐May-‐2014
1.00
App Annie
Utrecht, Netherlands
MarketVibe
21-‐May-‐2014
OwnLocal
Aus&n, TX
PrecisionDemand
21-‐May-‐2014
16.72
Adap.tv
Seagle, WA
Mocean Mobile
19-‐May-‐2014
15.50
46.59
PubMa&c
New York, NY
Convertro
07-‐May-‐2014
91.00
10.25
AOL
Santa Monica, CA
Adometry
06-‐May-‐2014
30.61
Google
Aus&n, TX
Adchemy
05-‐May-‐2014
119.22
WalmartLabs
Foster City, CA
AcuityAds
25-‐Apr-‐2014
5.75
Wildlaw Capital
Toronto, Canada
Korrelate
23-‐Apr-‐2014
9.55
JD Power
New York, NY

40
Global Ad Tech IPO Ac&vity
2013 was a breakout year for ad tech IPOs with five companies raising a combined ~$630M from public markets. Several more
Global Ad Tech IPO Ac&vity (2009-‐2013)
0
$700
$600
$500
$400
$300
$200
$100
$0
2009
2010
2011
2012
2013
adver&sing technology companies are expected to IPO in 2014.
1
0
1
5
6.0
5.0
4.0
3.0
2.0
1.0
0.0
IPO
Transac+on
($M)
IPO
Deal
Count
Company
Date
Amount Raised ($M)
Criteo (CRTO)
29-‐Oct-‐2013
288.10
Rocket Fuel (FUEL)
20-‐Sep-‐2013
116.00
YuMe (YUME)
06-‐Aug-‐2013
46.13
Tremor Video (TRMR)
28-‐Jun-‐2013
75.00
Marin Sooware (MRIN)
22-‐Mar-‐2013
105.00
Millennial Media (MM)
29-‐Mar-‐2012
132.60
MediaMind Technologies
(MDMD) – Acquired by
Digital Genera&on
11-‐Aug-‐2010
57.50
Note: Transac&on amounts do not encompass every recorded deal; some private market acquisi&ons are not disclosed. However, deal count encompasses
disclosed and undisclosed transac&ons.

41
Thank you
Don Butler
don@thomvest.com
Andrew Tweed
andrew@thomvest.com
Daphne Ewing-‐Chow
daphne@thomvest.com
A special thanks to Eric Liu and Natasha
Osborne for their contribu&ons to the research
203 Redwood Shores Parkway
Suite 680
Redwood City, CA 94065

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