Ben Fox Discusses the Past, Present and Future of Advertising

1. THE PAST, PRESENT AND FUTURE OF ADVERTISING FOLLOW ME! LINKEDIN.COM/IN/BENFOX, @BENFOXGO

2. 2005 2013

3. 1900 0 $70B SOURCE: BUSINESS INSIDER, PURPLE MOTES 201220001960 (Inflation unadjusted) $30B 198019401920 US NEWSPAPER AD SPEND 1704-2012 303 YEARS NEWSPAPER

4. 1900 0 2012 (Inflation unadjusted) US RADIO AD SPEND 1922-2012 RADIO 90 YEARS 20001960 198019401920 SOURCE: BUSINESS INSIDER, PURPLE MOTES NEWSPAPER $70B $30B

5. 1900 0 2012 (Inflation unadjusted) US TV AD SPEND 1945-2012 RADIO TV 68 YEARS 20001960 198019401920 SOURCE: BUSINESS INSIDER, PURPLE MOTES NEWSPAPER $70B $30B

6. 1900 0 SOURCE: BUSINESS INSIDER, PURPLE MOTES 20131993 (Inflation unadjusted) US DIGITAL AD SPEND 1993-2013 ~36.5 B RADIO 20 YEARS 1960 198019401920 2000 $70B $30B TV NEWSPAPER

7. IN 2003, WHEN YAHOO BOUGHT OVERTURE, WE SPENT ALL OUR TIME EXPLAINING “SEARCH ADVERTISING” (And don’t say “Algorithmic Search Results”) 1993:THE FIRST BANNER AD ATT on HOTWIRED.COM CTR 78%!

8. ONLINE AD MEETINGS WITH CMO’s IN 2003 “Does this mean advertising on those AOL Disks?” – Automotive CMO Objection #1:

9. ONLINE AD MEETINGS WITH CMO’s IN 2003 “Does this mean advertising on those AOL Disks?” – Automotive CMO Objection #1: “Why do I need to spend money online? I don’t even have the internet at my house!” – Fortune 500 CEO Objection #2:

10. ONLINE AD MEETINGS WITH CMO’s IN 2003 “Does this mean advertising on those AOL Disks?” – Automotive CMO Objection #1: “Why do I need to spend money online? I don’t even have the internet at my house!” – Fortune 500 CEO Objection #2: Well how have you been replying to my emails? Follow up:

11. “Oh that’s my secretary reading them to me and replying back to you!” ONLINE AD MEETINGS WITH CMO’s IN 2003 “Does this mean advertising on those AOL Disks?” – Automotive CMO Objection #1: “Why do I need to spend money online? I don’t even have the internet at my house!” – Fortune 500 CEO Objection #2: Well how have you been replying to my emails? Follow up:

12. $7B 2003 ENTIRE US ONLINE ADVERTISING SPEND

13. 2013 DISPLAY: $8B! $7B 2003 ENTIRE US ONLINE ADVERTISING SPEND

14. $46B 2013 ENTIRE US ONLINE ADVERTISING SPEND 2013 DISPLAY: $8B! $7B 2003 ENTIRE US ONLINE ADVERTISING SPEND

15. IN THE NEXT 10 YEARS HAVE ONE OF THE BIGGEST OPPORTUNITIES OF THE LAST 100 YEARS AVERAGE AGE OF AGENCY EMPLOYEE: 28!

16. NEWS INVENTORY, SOCIAL INVENTORY SMART PHONE ADS ON PANDORA CTV SAMSUNG INVENTORY CTV EXCLUSIVE, NETBLOCKS EMAIL NEWSPAPER RADIO TV BILLBOARDS DIRECT MAIL

17. WHAT DO YOU DO NEXT?

18. HERE’S THE PLAYBOOK FOCUS ON CONSUMER STATE DISRUPTION DRIVES EVOLUTION THE 1:1 MARKETING CONVERGENCE 1 2 3

19. FOCUS ON THE CONSUMER STATE! 1

20. 1 THE CONSUMER STATE AT HOME IS SIMULTANEOUS!

21. TOP ACTIVITIES PERFORMED DURING SIMULTANEOUS SCREEN USAGE BASE: MULTI-SCREEN OCCASIONS (4486) Q: Which Activities did you do on your [DEVICE] SOURCE: GOOGLE .COM “THE NEW MULTI-SCREEN WORLD: UNDERSTANDING CROSS-PLATFORM CONSUMER BEHAVIOR.” 2012

22. TOP ACTIVITIES PERFORMED DURING SIMULTANEOUS SCREEN USAGE BASE: MULTI-SCREEN OCCASIONS (4486) Q: Which Activities did you do on your [DEVICE] SOURCE: GOOGLE .COM “THE NEW MULTI-SCREEN WORLD: UNDERSTANDING CROSS-PLATFORM CONSUMER BEHAVIOR.” 2012 THE TOP STATES FOR USERS ON MULTI-SCREEN ARE EMAIL, WEB BROWSING & SOCIAL!

23. HOW MANY TV PLANNERS ARE IN THE ROOM?

24. HOW MANY TV PLANNERS HAVE PUT EMAIL & TV ON A SINGLE IO?

25. MOBILE IS A TECHNOLOGY FEATURE, NOT AN ADVERTISING SILO. “Mobile” is actually an at home device! Second only to time spent on TV

26. Source: Edwin Wong, Senior Director, B2B of Strategic Insights, Yahoo! EMAIL & SOCIAL DOMINATE THE MOBILE STATE Source: Pew Research Center’s Project for Excellence in Journalism in collaboration with The Economist Group Source: ExactTarget channel study 2012

27. DOES ANYONE KNOW WHAT THIS IS? ADVERTISING CHARACTERISTICS: AFFLUENT EARLY ADOPTERS SAFE BRAND ENVIRONMENT HOME PAGE IS DEFAULT HIGHLY ENGAGED AUDIENCE ACTIVE USAGE

28. THIS IS A SAMSUNG SMART TV

32. THE FUNDAMENTAL SHIFT TO SMART TV IS WELL UNDERWAY 18% of US Homes currently own a Smart TV 33% of US Homes will have a Smart TV in 2015 By 2015, 77MM Smart TV’s will be shipped globally – Morgan Stanley – Forrester – IHS

33. HOURS PER DAY AVERAGE 25-34 Y.O. CONSUMER 5 LIVE, DVR+3 $70B

34. WATCHING TRADITIONAL TV / DVR+3 SOCIALSEARCH “TV” AD PLANNING MIGHT LOOK VERY DIFFERENT IN THE FUTURE! EMAIL $42B $14B $14B BROWSE 1 1HOUR HOURS HOUR 3

35. THE BEST AD PLANNERS IN THE WORLD MAP CONSUMER STATE THEIR ADVERTISING TO THE

36. DISRUPTION DRIVES EVOLUTION 2

37. DEVICE ADVERTISINGDEVICE ADVERTISING CONTENT & DISTRIBUTION

38. DEVICE ADVERTISINGDEVICE ADVERTISING CONTENT & DISTRIBUTION

39. CONTENT & DISTRIBUTION ADVERTISINGDEVICE CROSS CHANNEL PLATFORM

40. AN ADVERTISING ECOSYSTEM LOCKED IN SILOS BY DISTRIBUTION IS NOW OPEN!

41. DISRUPTION WILL DRIVE AGENCY EVOLUTION Monthly Planning Cycles All Media GRP Agency Performance Fee Guaranteed Performance Sales revenue share NEXT Fractional Attribution Interactive, User Selected, Single user targeted $+ 12-24 Month Planning Cycles No Online GRP Agency Flat Fee NOW Last View/Click Attribution 22 mins Contact/8 mins ads/30 Second Interruption Spot $

42. ORGANIZATION Be an integrated agency even if your client isn’t AGENCY EVOLUTION ROADMAP HIRING DNA The math major, not the marketing major, becomes the new must hire DYNAMICALLY APPROVED CREATIVES Let algorithms dynamically create, test, and recommend millions of creatives for you DATA INTEGRATION Deep integration with your clients’ sales data TECHNOLOGY & VENDOR LEADERSHIP Focus on data integration, analytics, reporting and optimization. Master delivery through long term vendor partnerships

43. THE 1:1 MARKETING CONVERGENCE 3

44. CONSUMERS ARE LIVING IN A REAL-TIME WORLD!

52. 1900 0 SOURCE: BUSINESS INSIDER, PURPLE MOTES 20131993 (Inflation unadjusted) ALL CURRENT US AD SPEND $160 Billion 2012 RADIO 1960 198019401920 2000 $70B $30B TV NEWSPAPER DIGITAL

53. THE DEATH OF “TV”, “RADIO”, “OUTDOOR”, ETC. IS NOT GOING TO HAPPEN! THEY ALL EVOLVE! 2013 $ 2023 RADIO NEWS PAPER TV LAST PRINTED Page AM/FM AUDIO FTP/ CABLE

54. STREAMING AUDIO DIGITAL PRINT LTE/FIBER $200B 2013 $200B 2023 ADVERTISING EVOLVES INTO A DIGITAL SINGULARITY

55. PRAGMATIC PLANNING THE NEAR FUTURE MEDIA PLAN:

56. DEVICE AGNOSTIC CONSUMER STATE

57. DEVICE AGNOSTIC CONSUMER STATE MEASURING ACROSS MEDIA TYPES USING ALGORITHMIC CREATIVES THROUGH CENTRALIZED DELIVERY USING AN ALL MEDIA GRPs

58. WITH TRUE FRACTIONAL ATTRIBUTION TARGETING ALL AUDIENCES OR A SINGLE PERSON DIRECTLY INTEGRATED TO YOUR ADVERTISERS’ SALES DATA WAREHOUSE AND CRM WHILE OPTIMIZING AGAINST DAILY POINT OF SALE RESULTS BILLIONS OF EXCHANGE BIDS WHILE BACKING OUT AGAINST A TOTAL LIFETIME CUSTOMER VALUE METRIC COLLECTING YOUR AGENCY FEE AS A SALES BASED REVENUE SHARE

59. In real time.

60. THE ADCONION MARKETPLACE 77OF TOP 100ADVERTISERS 1.1 BILLION VIDEO AND DISPLAY STREAMS, OF WHICH 65% ARE EXCLUSIVE REVENUE SPLIT 50% AGENCY 5,000+ TOP-TIER INVENTORY PARTNERS INTEGRATED TECH STACK BIG DATA PREDICTIVE MODELING PROPRIETARY RTB AUDIENCE 360 ANALYTICS DEVICE MANUFACTURERSAPP DEVELOPERSCONTENT OWNERS CROSS-CHANNEL, CROSS-DEVICE DISPLAY MOBILE SOCIAL CTV 700MM UNIQUES PER MONTH 50% DIRECT CLIENT 40 BILLION EVENTS PER MONTH 2.7 BILLION BID REQUESTS PER DAY 3 GLOBAL CO-LOCATION FACILITIES ON CONTINENTS 3 ADCONION TARGETING PLATFORM OUR SUPPLY OUR DEMAND

61. 2005 2013

62. 2023

63. 2023

64. 2023

65. 2023

66. THE NEXT 10 YEARS IS YOUR TIME. ARE YOU READY!?

67. FOLLOW ME!: linkedin.com/in/benfox @benfoxgo CONTACT ADCONION DIRECT AT: s a l e s @ a d c o n i o n d i r e c t . c o m