Audience Extension Survey 2014

Presented by Audience Accelerator and Digiday
THE VALUE OF
DIGITAL
PUBLISHE RS’
AUDIENCE S
Q3 2014

2THE VALUE OF DIGITAL PUBLISHERS’ AUDIENCES Q3 2014
ABOUT DIGIDAY
Digiday is a media company and community for professionals who work in the
digital media, marketing, and advertising industry. Our mission is to connect
the industry with insightful analysis and perspective, as well as each other.
We provide key insights and information through our online publications and
conferences that cover the changes and trends—and we communicate why they
matter. The focus is on quality, not quantity, and honesty instead of spin. Digiday
is driven to produce the highest quality publications, conferences, and resources
for our industry.
ABOUT AUDIENCE ACCELERATOR
Rocket Fuel’s Audience Accelerator business unit provides an unparalleled full-
service audience-extension platform, exclusively servicing websites, networks, and
data companies. We help our partners leverage their data to effortlessly scale their
audiences with outstanding results. Powered by our proven artificial intelligence
(AI) technology, we enable our partners to model their unique audiences and
extend reach to up to 99% of the online universe in the United States. Audience
Accelerator’s full-service team handles set up, training, and execution. We provide
access to industry experts; RFP responses; and detailed, actionable campaign
analysis—saving technology, staff, and infrastructure investment.
Rocket Fuel delivers a leading programmatic media-buying platform at Big Data scale
that harnesses the power of AI to improve marketing ROI in digital media across
web, mobile, video, and social channels. Rocket Fuel powers digital advertising and
marketing programs globally for customers in North America, Europe, and APAC.
Rocket Fuel currently operates in more than 20 offices worldwide and trades on the
NASDAQ Global Select Market under the ticker symbol “FUEL.”

3Presented by Audience Accelerator and Digiday
INTRODUCTION
When we first conducted research on Audience Extension with Digiday in
our 2013 Audience Extension Industry Overview, our goal was to gauge the
marketplace and identify how publishers and advertisers were responding to
advancements in audience targeting through Big Data and programmatic buying
in a rapidly changing marketplace. One year later, our goal is to identify changes
in the marketplace and shifts in messaging and attitudes around extension.
As with last year’s survey, to understand these shifts Audience Accelerator
partnered with Digiday to survey its readers and key professionals on the
publisher and buyer sides about their attitudes and strategies around audience
extension. The insights in this survey will highlight those shifts over the past
year and forecast future shifts.

TOPLINE
• More than ever, publishers are looking to audience-extension solutions
to increase their revenue through greater reach.
More than half of publishers (52%) are offering audience extension to
their advertising partners, a slight increase from last year’s survey. Those
publishers who do offer extension solutions are leveraging them often,
however, with one third (33%) offering them on either “most” or “all” of their
campaign proposals to advertisers. This is a 31% increase (8.6 percentage
points) from one year ago.
• Publishers are more sophisticated than they were a year ago, with a
greater understanding of the benefits of audience extension.
More than two-thirds (77%) of publishers now say they are “very familiar”
with audience extension, underlining a significant shift from a year ago
overall (+23% increase in familiarity).
• Publishers looking to the future want better reporting tools and more
transparency from audience-extension platforms.
A direct consequence of greater levels of familiarity and sophistication is a
greater understanding of the benefits a publisher can receive from audience
extension. Publishers are seeing more benefits overall, primarily when it
comes to meeting goals for clients—two-thirds of publishers (67%) say that
audience extension has allowed them to meet client goals that would have
otherwise not been met, nearly double the number from one year ago.
P U B L I S H E R S

More than ever, publishers are looking to audience-extension solutions
to increase their revenue through greater reach.
0%
10%
20%
30%
40%
50%
60%
70%
2014 actually
2015 planned
2013
2014 planned
0%
0%
8%
7%
0%
64%
39%
21%
12%
48%
NEVER RARELY
maybe once
or twice
SOMETIMES
it depends on
the campaign
OFTEN
on most
campaigns
ALWAYS
Q. HOW OFTEN DO YOU INCLUDE/PLAN TO INCLUDE
AUDIENCE EXTENSION ON CAMPAIGN PROPOSALS?
More than half of publishers (52%) are now offering audience
extension to their advertising partners, a slight increase from
last year’s survey. Those publishers who do offer extension
solutions are leveraging them often, however, with one
third (33%) offering them on either “most” or “all” of their
campaign proposals to advertisers. This is a 31% increase
from one year ago. Although the majority of publishers
offering extension are still offering it on a case-by-case basis
(58%), that percentage declined from one year ago (64%), in-
line with the projections provided by publishers when asked
to estimate how often they planned to include extension
over the next 12 months. Similarly, publishers predict a
continuing increase in extension use, with more than half
(61%) planning to include extension on either “most” or “all”
of their campaign proposals. Comparatively, this is a much
larger planned shift than last year’s results showed.
One of the key drivers for this shift is the need to create
additional reach or impressions to satisfy advertiser demand
when responding to RFPs—nearly three-fourths publishers
offering extension (73%) say that they include extension on
a proposal when they need additional reach or impressions
to deliver a campaign. This is a jump of more than 55%
from a year ago (47%). Similarly, publishers have become
more aware of how extension can help address campaign
objectives or reach channels that were previously beyond the
publisher’s reach. Publishers have also become more adept at
creating unique products to roll out to advertiser clients, with
two-fifths (39%) having done so. This is a 31% increase from
last year.

Q. HOW DO YOU
CURRENTLY INCLUDE
AUDIENCE EXTENSION
ON CAMPAIGN
PROPOSALS?
(PLEASE SELECT ALL THAT APPLY)
At this point, the majority of publishers offering extension
have been doing so for at least one year (77%). Compared to
a year ago, the methods have changed: Publishers are relying
less on third-party ad networks and seats on ad exchanges
and instead choosing to rely more and more on data-
management platforms (DMPs) for extension solutions, with
nearly half of publishers leveraging either a DMP (45%) or a
digital-service provider (DSP) (41%) for audience extension.
Publishers are more sophisticated
than they were a year ago, with a
greater understanding of the benefits
of extension.
More than two-thirds (77%) of publishers now say they
are “very familiar” with audience extension, underlining
a significant shift from a year ago overall (+23%
increase in familiarity).
Publishers have a greater understanding
of the benefits of audience extension
than they did a year ago.
A direct consequence of greater levels of familiarity and
sophistication is a greater understanding of the benefits a
publisher can receive from audience extension. Publishers
are seeing more benefits overall, primarily when it comes
to meeting goals for clients—two-thirds of publishers (67%)
say that audience extension has allowed them to meet
client goals that would have otherwise not been met, nearly
double the number of one year ago. Similarly, more and more
publishers are leveraging audience extension to win more
money on proposals (55%) or take business that they would
have otherwise had to turn down (42%). This underlines
the importance of using audience extension to generate
additional reach, particularly across new platforms.
2014
2013
73%
47%
42%
50%
39%
30%
30%
23%
9%
6%
58%
50%
Other
We include it when an RFP asks for channels
that we don’t have (e.g. mobile, video, social)
We created a unique product and
rolled it out to our top advertisers
We include it when an RFP asks for
data-driven, audience-based buys
We include it when it addresses an objective
specifically asked for in an RFP
We include it when we need additional reach
or impressions to deliver a campaign

Q. IS THERE A SHIFT
IN TYPE OF PLATFORM
USED THIS YEARS VS
LAST YEAR?
Third-party ad network
Integration with my ad server
In-house network
Data management platform (DMP)
Demand side platform (DSP)
Seat on an ad exchange
Supply side platform (SSP)
2014
2013
0% 10% 20% 30% 40% 50% 60%
Somewhat familiar
Very Familiar
Not at all familiar
77%
17%
6%
Q. HOW FAMILIAR
ARE YOU WITH
THE CONCEPT
OF AUDIENCE
EXTENSION?
SPECIFICALLY, THE PRACTICE
WHERE ADVERTISERS CAN
PURCHASE AD INVENTORY
THAT IS TARGETED TO A
PARTICULAR PUBLISHER’S
PREMIUM SITE AUDIENCE
ELSEWHERE ON THE INTERNET.

Other
We’ve been able to keep business
that we’d have otherwise lost
Offering audience extension has
had no effect on our revenue
We’ve been able to win new business
We’ve been able to take business that
we’d have otherwise turned down
We’ve been able to win more
money on proposals
We’ve been able to meet goals for customers
that we’d have otherwise not met 66.7%
54.9%
42.4%
42.4%
36.4%
9.1%
3.0%
+31
+9
+12
+0.2
-1.4
+0.2
-1.4
2014
2013
Our CPMs for audience extens
Lower than on-site inventory
Less than half those of on-si
Higher than on-site inventor
About the same as on-site in
33.3%
5.6%
25
.6
%
35.6%
35.6
%
9.09% 9.09%
18.18
%
6
3.64 %
Q. HOW HAS
OFFERING AUDIENCE
EXTENSION AFFECTED
YOUR REVENUE?
(PLEASE SELECT ALL THAT APPLY)
Q. COMPARED WITH
YOUR ON-SITE
INVENTORY, ARE
YOUR AVERAGE
CPMS FOR AUDIENCE
EXTENSION HIGHER
OR LOWER?
2013
Our CPMs for audience extension are:
Lower than on-site inventory
Less than half those of on-site inventory
Higher than on-site inventory
About the same as on-site inventory
33.3%
5.6%
25
.6
%
35.6%
35.6
%
9.09% 9.09%
18.18
%
6
3.64 %

When pricing audience extension, publishers have largely settled on a best
practice, choosing to price CPMs for audience extension lower than on-site
inventory (64%), or in-line with CPMs for on-site inventory (18%). Fewer than
10% price their audience extension CPMs above on-site inventory (9%), and the
same proportion price extension at less than half the price of on-site inventory.
This shows a dramatic shift from last year’s results as the market has increased in
sophistication: Only one-third of publishers were pricing extension at a lower CPM
than on-site inventory, while an even proportion were charging the same price, and
one-quarter were charging higher CPMs for extension.
As a result, publishers ultimately realize significantly higher revenue totals from
audience extension, even if audience extension does not necessarily constitute
an increasingly larger proportion of that revenue. Publishers say that extension
currently accounts for between 1 and 10% of ad revenue (79%), with 15% saying
extension accounts for 11-20%. Over the next year, publishers expect these
numbers to increase, with one-third (36%) of publishers saying that they
expect extension to account for between 11 and 20% of ad revenue over the
next 12 months.
Publishers looking to the future want better
reporting tools and more transparency from
audience extension platforms.
When asked what developments they’d like to see in the audience-extension
category in the next year, publishers’ primary concerns were around better tools
in their existing platforms, to provide 1) better reporting, 2) clearer inventory
forecasting, or 3) audience-overlap estimates. Transparency is also a hot topic
among publishers, who want greater insight into their platforms—how they’re
operating, and where ads are being served—and would like to have access to better
inventory (such as through private exchanges) when offering extension. Publishers
are also frustrated with the lack of adoption for extension in the industry, as well
as the number of options—in addition to better education in the space, many would
prefer to have a one-stop-shop-style solution for extension, data management, and
data protection rather than having to work with several vendors.

Choosing an extension platform is
still a lengthy process, with many
stakeholders to consult.
The process of choosing an extension platform is not
a short one—publishers commonly say it takes their
organization between three and four months to choose an
extension platform (45%), though for 24% it can take even
longer. This is partly due to the number of departments
and individuals that typically weigh in on the process: 60%
of publishers listed more than one key decision-maker in
the process of choosing an extension platform, and one
quarter (24%) listed three or more key decision-makers for
choosing an extension platform. It is also due to the number
of platforms publishers are evaluating before picking a
solution: 42% evaluate three partners, and 27% go as far
as to evaluate four to six partners before choosing one.
When it comes to making the decision on an extension
platform, little has changed in the past year: The ability
to choose from site lists or purchase brand-safe inventory
when delivering extension is still the most important
factor (91% rate it either “very important” or “somewhat
important,” for an average score of 3.57 out of 89%), followed
by the ability to reach consumers on other platforms (e.g.
mobile, video, etc.) and the ability to retarget.
DMPs
There are a number of DMPs on the market, and customers
have their choice of providers. According to our respondents,
most DMP providers saw an increase in the percentage of
respondents using DMPs, with Acxiom, Krux, and Adobe
Audience Management all having double-digit percentage
increases. While fewer respondents indicated having a DMP
in place this year as compared to than last year, the actual
difference was rather small (14% fewer respondents), and is
not likely to reflect an overall trend.
When choosing a data-management platform, the two
most important features for consideration are the ability to
build and target customer segments (95%) and access to
customer insights (93%). Principally, these results reflect
the primary concern of having the ability to drive results
to find out about and locate new customers on the horizon.
DMPs not addressing these issues risk potentially losing the
interest of prospective clients.
Data security was also a major topic of interest (93%) and
rated third on the list of “must-haves” for a DMP. In light of
the recent large-scale hacks on Home Depot, Target, and
PlayStation Network, respondents appear to be expressing
concern about the security of their information in an
increasingly digital world.
Publishers’ Strategic Changes
As a result of the advent and proliferation of programmatic
buying, publishers have had to adjust strategy, largely
choosing to adopt an “if you can’t beat them, join them”
strategy: 65% of publishers polled have put some or all
of their inventory on exchanges, and nearly half (45%)
are participating in or creating private exchanges. Many
attempt to differentiate their media or offerings by
either creating unique ad formats/units (46%) or focusing
on custom sponsorships and programs (46%). Only 18%
of publishers have not made any adjustments to their
business as a result of programmatic buying.

2014
2013
65.38%
43.8%
46.15%
39.6%
44.87%
22.9%
17.95%
20.8%
6.4%
8.3%
46.15%
35.4%
We have reduced or eliminated
our media sales team
We have not made any
adjustments to our business
We have created or are participating
in a premium private exchange
We have focused on selling
sponsorships and custom programs
We have created unique ad units/formats
that are not available on ad exchanges
We have put some or all of our
inventory on ad exchanges
Q. HOW HAS THE ADVENT OF PROGRAMMATIC BUYING
AFFECTED YOUR BUSINESS? (PLEASE SELECT ALL THAT APPLY)

A D V E R T I S E R S
TOPLINE
• Advertiser adopters of audience extension view the offering and its
benefits favorably.
Half of advertisers are at least “somewhat familiar” with audience extension
and its uses, and just under a third (29%) are currently working with a
partner providing audience extension on one or more of their campaigns.
• Viewability, performance, and access are important for advertising buyers.
For advertisers, brand safety, performance, and cross-platform opportunities
are the most important factors for when evaluating publisher proposals that
include audience extension. However, bundled access to preferred ad units
or native advertising was significantly more important this year—advertisers
are 58% more likely to rate bundled access to these ad units as either “very
important” or “somewhat important” this year (as opposed to last year)
when evaluating an extension proposal.
• Advertisers see extension as a way to make their budgets go farther.
Advertisers primarily see audience extension as a way to get more out of
their buys on premium content sites for branding campaigns (73%), and see
the benefits to these campaigns as the ability to access a unique audience
(55%), while staying within brand-safe content.

Advertiser adopters of audience
extension view the offering and its
benefits favorably.
Half of advertisers are at least “somewhat familiar” with
audience extension and its uses, and just under a third (29%)
are currently working with a partner providing audience
extension on one or more of their campaigns. Overall,
advertisers don’t seem to have a strong opinion on audience
extension yet, with most (58%) viewing it neither favorably
nor unfavorably, and none viewing it either very favorably or
very unfavorably. Overall, advertisers tend to rate their prior
experience with publishers offering extension either “Good”
or “Fair,” as opposed to “Excellent” or “Poor.”
For many advertisers, access to extension makes them
more likely to spend more with a publisher, with 50%
of advertisers saying that they are likely to spend more
with publishers who offer audience extension—a slight
increase from results one year ago. Conversely, only
8% of advertisers say they are likely to spend less with
publishers offering extension. As with last year’s results,
advertisers are more likely to include extension as part
of a campaign (39%) than not (10%).
Viewability, performance, and access
are important for advertising buyers.
For advertisers, brand safety, performance, and cross-
platform opportunities are the most important factors
for when evaluating publisher proposals that include
audience extension. However, bundled access to
preferred ad units or native advertising was significantly
more important this year—advertisers are 58% more
likely to rate bundled access to these ad units as
either “very important” or “somewhat important” this
year (as opposed to last year) when evaluating an
extension proposal.
Advertisers see extension as a way to
make their budget go farther.
Advertisers primarily see audience extension as a way to
get more out of their buys on premium-content sites for
branding campaigns (73%), and see the benefits to these
campaigns as the ability to access a unique audience
(55%), while staying within brand-safe content (55%).
Ultimately, the appeal for advertisers is in the ability to
access additional premium-content sites (59%), and to
do so with more options (41%). Many advertisers also
appreciate the ability to diversify their spend or audience
through extension (48%) or to do more custom targeting
against their audience on premium sites (44%). For these
advertisers, the value in audience extension reflects the
importance of brand-safe environments and finding new
customers within those channels. Publishers offering
extension should feel more comfortable approaching
advertisers with extension as a brand solution for reaching
premium audiences at scale and not just a way to meet DR
goals for a campaign.

Q. HOW FAVORABLY
DO YOU VIEW
AUDIENCE
EXTENSION? No opinion
Very Favorably
Unfavorably
35.48%
58.06%
6.45%
Changing strategies in 2015.
Heading into 2015, nearly half (38%) of advertisers predict that they’ll allocate a
higher percentage of their budget to publishers offering audience extension, while
the remaining 62% anticipate maintaining the same level of spend. Comparatively,
advertisers plan to spend more on programmatic across the board in the next year,
and most (60%) feel that programmatic buying saves them time. Few advertisers
feel that programmatic buying devalues premium content sites (28% “somewhat
agree”) and most feel that their programmatic campaigns perform better (64%).

METHODOLOGY
A sample of 226 publishers, and agency and brand professionals—at the Director
level or higher—responded to this survey as part of the Digiday Executive
Forum. The survey was fielded between August 13th and September 5th, 2014.
Publishers involved in the Executive Forum range in audience size from less than
250,000 uniques per month to more than 50 million uniques per month.

EFFORTLESSLY SCALE
YOUR AUDIENCE WITH
SPECTACULAR RESULTS
FOR MORE INFORMATION ON AUDIENCE ACCE LE RATOR
VI S I T AUDIENCEACCELERATOR.COM OR CONTACT U S AT
888-717-8873 OR SALES@AUDIENC E ACCE LE RATOR. COM

Audience Extension Survey 2014

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