Ben Fox Discusses the Future of Brands

1. THE FUTURE OF BRANDS FOLLOW ME! LINKEDIN.COM/IN/BENFOX, @BENFOXGO

2. 4 KEY DRIVERS OF THE FUTURE BRAND ADVERTISER Simultaneous Consumer Behavior + MOBILE SOCIAL + TV EMAIL + SEARCH DISPLAY Old and New Ad Marketplace PRINT TV UPFRONTS DIGITAL Ad Exchanges and RTB required The Nth screen is here now! 1 2 3 4

3. EMAIL $700 MM 2011 ADVERTISING SPEND IN THE US BROADCAST $36 BB CABLE $28 BB SOURCE: Emarketer 2011, Forrester 2011

4. ADVERTISING REVENUE MARKET SHARE BY MEDIA, IN BILLIONS SOURCE: IAB Internet Advertising Revenue Report; PwC * Broadcast television includes Network, Syndicated, and Spot television advertising revenue. ** Cable Television includes National Cable Networks and Local Cable television advertising. *** Magazine includes Consumer and Trade magazines 2011

5. 2012 ADVERTISING REVENUE MARKET SHARE BY MEDIA, IN BILLIONS SOURCE: IAB Internet Advertising Revenue Report; PwC * Broadcast television includes Network, Syndicated, and Spot television advertising revenue. ** Cable Television includes National Cable Networks and Local Cable television advertising. *** Magazine includes Consumer and Trade magazines $40?

6. ADVERTISING MARKETPLACES Broadcast Television Digital Cable Television Newspaper Magazines Radio Out of Home Video Games Cinema BUYERS SELLERS THE OPPORTUNITY TO INFLUENCE A CONSUMER A D M A R K E T P L A C E S EACH AD MARKETPLACE HAS ITS OWN BENEFITS, DRAWBACKS, METHODOLOGIES, AND METRICS.

7. ADVERTISING MARKETPLACES Broadcast Television Digital Cable Television Newspaper Magazines Radio Out of Home Video Games Cinema BUYERS SELLERS THE OPPORTUNITY TO INFLUENCE A CONSUMER A D M A R K E T P L A C E S EACH AD MARKETPLACE HAS ITS OWN BENEFITS, DRAWBACKS, METHODOLOGIES, AND METRICS.

8. SOME MARKETPLACES ARE CONTRACTING SOURCE: Business Intelligence, Sept 2012; Newspaper Association of America; Carpe Diem Blog NEWSPAPER ADVERTISING REVENUE IN MILLIONS OF 2012 DOLLARS, 1950-2012 INCLUDING ONLINE PRINT ONLY ?

9. SOME MARKETPLACES ARE CONTRACTING SOURCE: Business Intelligence, Sept 2012; Newspaper Association of America; Carpe Diem Blog NEWSPAPER ADVERTISING REVENUE IN MILLIONS OF 2012 DOLLARS, 1950-2012 INCLUDING ONLINE PRINT ONLY ?

10. OTHER MARKETPLACES HAVE BEEN GETTING MORE EXPENSIVE SOURCE: Nielsen, Coady Diemar Partners, June 2012, Horizon Media estimates BROADCAST NETWORK SHARE OF TV VIEWING (PRIME TIME) YEAR AVG. BIG FOUR RATING (18-49) COST ($MM) TO BUY 400 GRPs COST PER RATING POINT HISTORICAL UPFRONT COSTS TO ADVERTISERS 1991-92 2001-02 2011-12 7.0 4.0 2.5 $5.4 $10.9 $20.5 $13,586 $27,295 $51,304

11. OTHER MARKETPLACES HAVE BEEN GETTING MORE EXPENSIVE SOURCE: Nielsen, Coady Diemar Partners, June 2012, Horizon Media estimates $ Cost per rating point has increased by almost 4x – but you get almost 50% fewer viewers! So are Brand advertisers getting 4x the value of someone watching network TV? BROADCAST NETWORK SHARE OF TV VIEWING (PRIME TIME) YEAR AVG. BIG FOUR RATING (18-49) COST ($MM) TO BUY 400 GRPs COST PER RATING POINT HISTORICAL UPFRONT COSTS TO ADVERTISERS 1991-92 2001-02 2011-12 7.0 4.0 2.5 $5.4 $10.9 $20.5 $13,586 $27,295 $51,304

12. THE DIGITAL MARKETPLACE IS TAKING OFF! SOURCE: IAB PwC 2011 Annual Report “In every year since 2005, the annual growth rates of Internet advertising exceeded those of other advertising media” DIGITAL MARKETPLACE Annual Revenue, in Billions

13. THE DIGITAL MARKETPLACE IS TAKING OFF! SOURCE: IAB PwC 2011 Annual Report DIGITAL MARKETPLACE Annual Revenue, in Billions Forbes Google Emarketer $50B $200B $60B

14. WHAT IS SO DIFFERENT ABOUT THE DIGITAL MARKETPLACE? Millions of publishers and advertisers! BUT THERE IS A CATCH… THERE’S ALWAYS A CATCH!

15. DIGITAL EXCHANGES NEED TO CONSOLIDATE

23. THE DAY OF THE SINGLE SCREEN COUCH POTATO IS OVER

24. THE DAY OF THE SINGLE SCREEN COUCH POTATO IS OVER Consumer activity is simultaneous… are we thinking this way?

25. TOP ACTIVITIES PERFORMED DURING SIMULTANEOUS SCREEN USAGE SOURCE: GOOGLE .COM “THE NEW MULTI-SCREEN WORLD: UNDERSTANDING CROSS-PLATFORM CONSUMER BEHAVIOR.” 2012

26. TOP ACTIVITIES PERFORMED DURING SIMULTANEOUS SCREEN USAGE SOURCE: GOOGLE .COM “THE NEW MULTI-SCREEN WORLD: UNDERSTANDING CROSS-PLATFORM CONSUMER BEHAVIOR.” 2012 EMAIL IS THE #1 ACTIVITY FOR USERS ON MULTI-SCREEN!

27. TV BUDGETS AND MULTI-SCREEN ACTIVITY SHOULDN’T ADVERTISER TV BUDGETS ACCOUNT FOR THIS?

28. WHEN USERS ARE ON MOBILE DEVICES, WHAT IS THE PRIMARY CONSUMER ACTIVITY?

29. SOURCE: Edwin Wong, Senior Director, B2B of Strategic Insights, Yahoo!SOURCE: ExactTarget channel study 2012 EMAIL DOMINATES MOBILE ACTIVITY IN MULTIPLE STUDIES

30. TECHNOLOGY IS EXPANDING CHOICE FASTER THAN CREATIVE

31. FUTURE CONSUMER: THE NTH SCREEN IS HERE TODAY

34. CONSUMERS ARE LIVING IN A REAL TIME WORLD!

42. MEDIA PLANS REFLECT TECHNOLOGY AVAILABLE YESTERDAY

43. LAST CLICK / LAST VIEW: Rudimentary Attribution Capability ECONOMETRIC MODELS “50% of my TV budget is wasted, I just don’t know which 50%” MEDIA PLANS REFLECT TECHNOLOGY AVAILABLE YESTERDAY

44. NEAR TERM TECHNOLOGY REQUIREMENTS Direct to exchange bidding Access to all exchanges Profile Server Global Datawarehouse Email/Consumer 1:1 Integrated CRM 1 2 3

45. ADVERTISING TECHNOLOGY ECOSYSTEM IN 2020

46. 4 KEY DRIVERS OF THE FUTURE BRAND ADVERTISER Simultaneous Consumer Behavior + MOBILE SOCIAL + TV EMAIL + SEARCH DISPLAY Old and New Ad Marketplace PRINT TV UPFRONTS DIGITAL Ad Exchanges and RTB required The Nth screen is here now! 1 2 3 4

47. 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