2Taking Stock: Why Ad ExchangesAre Not the New Wall Street2Presented by:Rob Deichert I General Manager, Tribal Fusion, an Exponential division
3Company overview• Exponential is the global provider ofadvertising intelligence and digital mediasolutions to brand advertisers.• Our e-X Advertising Intelligence Platformcombines one of the world’s largest digitalmedia footprints with proprietary audiencedata and technology to deliver advertisingintelligence that enables smarter, better-informed marketing decisions.• Our audience engagement divisions applyadvertising intelligence to deliver high-impact, high-engagement campaignsacross display, video and mobile media.• Exponential offers solutions in 26 countriesworldwide and reaches more than 450munique users every month*.(comScore 2012)3
4The Wall Street Exchanges4Wall Street Evolution• Open Outcryunder a tree• Runners• Telegraph – StockTicker• Electronic tradingDigital Evolution• Fixed placements• Ad Networks• Ad Exchanges
5Financial Markets Listing RequirementsNYSE TSX - TorontoPre-Tax Income LFY $2,000,000 VariesC$5,000,000 revenueC$5,000,000 nettangible assetsMarket Value of PubliclyHeld Stock$100,000,000 No MinimumMinimum Trading Priceof Listed Securities$4.00 No Minimum5What are the listing requirements on the advertising exchanges?How are they monitored and policed?
6Buying and Selling Equities vs Impressions• Core function of an exchange isto ensure fair and orderlytrading, as well as efficientdissemination of priceinformation for any securitiestraded on that exchange.6Impressions• Impressions are not fixed• Each impression expires• Impressions are bought incombination with the userEquities• Fixed number of share• Same asset transfers ownership• Share of GE is the same at9:40AM vs 3:40 PM
7Buying and Selling ImpressionsSite Page ATF/BTF Session Depth Site DataFrequency1st Party Data3rd Party DataLocation7
9Rating Agencies and Verification9Financial• S&P, Moody’s• Rate credit worthiness ofcompanies and specific issuesof financial instruments• Systemic failure is possible –CDO collapse of 2007Advertising• Ad verification• Ad Blocking• Network Scores• Lack of transparency aroundmethodologies
10In Summary10No Analogy is perfect, but…• Financial world has differentproducts for different needs.• Advertising world has differentproducts for different needs.• One size fits all is risky, just like notdiversifying your portfolio.• Benchmark everything to insureyou retire rich and perform onyour advertising spend.ONE SIZE DOESN’T FIT ALL