Digital Innovators Summit, Atlas, Microsoft Advertising

1. Microsoft Publisher Solutions 5 Ways to Increase Your Return on Audience / Analytics and Ad Management Berlin, Wednesday, March 4.th , 2009 Axel Hoehnke

2. Microsoft Advertising crafts solutions to increase revenue for advertisers and publishers Increased Revenue for Top Tier Publishers • Maximize yield: Forecasting, pricing, and sales Microsoft is committed to building the • Optimize ad delivery: Prioritization, effectiveness platform for the advertising industry, • Improve efficiency across the board allowing its customers to focus on their core competencies. PUBLISHERS ADVERTISERS Solutions Media Tools Services 2 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

3. Publishers: In an ideal world, you could monetize every impression at your premium rates Maximum Revenue CPM Max CPM x Max Impressions Volume of Impressions 3 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

4. The industry has developed two classes of inventory to price discriminate CPM Premium Sales Revenue Discretionary Sales Revenue Volume of Impressions 4 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

5. More sophisticated publishers have more ways of increasing revenue 1. Maximize Value of Premium Inventory 5. Increase Overall Efficiency in Ad Sales & Delivery 2. Increase Sell-through of Premium Inventory CPM Premium Sales Revenue 4. Expand Total Impressions 3. Optimize Yield on Available to Sell Discretionary Inventory Discretionary Sales Revenue Volume of Impressions 5 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

7. Yield management is a core function of the airline industry; Publishers use similar concepts to maximize revenue Airlines Yield Management Demand Airlines will adjust prices to maximize revenue for limited seat availability. This role is fulfilled by their yield management Capacity groups, who control pricing Online Publishers Prices Revenue Maximization Publishers need to understand the scarcity of their inventory and use yield management concepts to manage their sites 7 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

8. So what’s different about online advertising? AIRLINES ONLINE ADVERTISING  Firmly established in the  Has only been talked about in online HISTORY airline industry for 20 media for 3 years (no data standards, years common product specs)  There are few consumer  If publishers don’t respect and partner SCARCITY alternatives to flying with advertisers, they will take their business elsewhere  There are only so many  The number of packages and products COMPLEXITY ways the seats can be laid that can be created from better out in a plane targeting is almost infinite  The least price sensitive  The most price sensitive customers PRICE customer (e.g. business (direct marketers) book last RESPONSE travelers) book last © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

10. Microsoft Advertising has several products to help you with these hard problems 1. Maximize Value of AdManager Price Director Premium Inventory 5. Increase Overall Efficiency in Ad Sales & Delivery 2. Increase Sell-through of Premium Inventory Deal Manager Business Advisor Inventory Manager CPM Premium Sales Revenue Network Control Panel 4. Expand Total Impressions 3. Optimize Yield on Available to Sell Discretionary Inventory Audience Extension Discretionary Sales Revenue Volume of Impressions 10 © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com

11. Bring It All Together Realize greater returns from your audience, and achieve operational excellence through a unique blend of media, technology and consulting solutions. The Most Comprehensive Set of Solutions In the Industry… Audience Technology Solutions Media Solutions Consulting Solutions Price Director Microsoft Network Advisory Services Inventory Manager Ad Syndication Information Services Efficiency Audience Extension Custom Analytics Business Advisor Implementation Deal Manager AdManager … and the most effective. © 2009 Microsoft Corporation. | axel.hoehnke@microsoft.com