The document summarizes predictions for the online advertising market in 2012 from an executive breakfast presentation. It predicts that: 1) Online advertising will continue growing rapidly, reaching a 27% market share, up from 1% in 2001. 2) Video advertising will see strong growth, with a 100% increase in spending year-over-year and the rise of video ads in social games. 3) Social media display advertising will increase dramatically, with over 60% year-over-year growth.

3. Propel Executive Breakfast
Predictions for 2012
Guy Phillipson, CEO
Internet Advertising Bureau
www.iabuk.net 12th January 2011

4. MARKET BACKGROUND
& TRENDS

5. From last to first in 10 years
2011 - £4.6bn*
27% share
2001- £166m
1% share
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011
*based on H1 IAB/PwC ad spend figures and IAB H2 forecast

6. Increase in users in 2011
38.4m 40m
Source: UKOM June 2010 and Dec 2011

8. “My Entertainment Anywhere”
Time Spent Online
40%
60%
My Entertainment Anywhere (Social, video & games)
All Other Online Activity (Search, news, shopping, email etc)
Source: UKOM June 2011

9. H1 2011 vs. H1 2010
Source: PwC / Internet Advertising Bureau / WARC

10. Online showing strongest growth
Year on year growth for H1 2011
Source: PwC / Internet Advertising Bureau,
The Advertising Association / WARC: WARC estimate for directories.

11. Online’s market share for H1 2011 27%
% share of revenues for January to
June 2011
Source: PwC / Internet Advertising Bureau / The Advertising Association / WARC

12. PRESS CUTTINGS

13. Share of spend by Consumer Goods
advertisers is now 2nd place
Source: PwC / Internet Advertising Bureau: IAB estimates for industry sector shares are based on categorised net revenue from media owners provided
by PwC. Data excludes unclassified, multi-advertiser, recruitment and misc figures and covers 58% of online display revenues in H1 2011.

14. Video grows 100% year on year
Source: PwC / Internet Advertising Bureau
NB: Video includes pre/mid/post-roll, social video and other video. Social Video and other video included for the first time in H1 2011

15. Social media display up dramatically
year on year
60%+

16. Source: IAB / PwC mobile display ad spend survey 2010

17. The display landscape (1995)
BUY SIDE
Advertiser/ Publisher
Agency
SELL SIDE

18. The display landscape today!
Content Verification
ATDs Ad Exchange
Yield
Optimiser
Advertiser/ / Sell Publisher
Agency Side
Platforms
(SSPs)
DSP
Ad Network
Creative Data
Optimiser optimisers
Data Data Data
exchanges suppliers aggregators

19. Expert Witnesses
• Nick Roveta Go Viral/AOL
• Tom Ollerton We are Social
• Carl Uminiski Somo
• Louisa Wong Amnet Group

20. Questions?

21. 2012 Video Predictions
Nick Roveta

22. What goviral do
Your videos Our audience Guaranteed
engagement
Branded Video content +37,000 publishing partners Cost per view (CPV)

23. Video metrics won’t be standardized
Because the major players don’t need to speak the same language
View
Engagement
Interaction
Performance

24. Ad Selector will replace pre-roll in 2013
(so start testing now)

25. Video and Social will begin to Augment

26. 30% of Video Ads will be in Social Games
420
Million Monthly Active
Facebook Users are
Social Gaming
75%
Of Facebook Audience
210 play Social Games
Minutes are spent
Social Gaming each
month $3bn
Industry in 2012
Sources : Morgan Stanley, emarketer, Facebook, Flurry

27. Mobile video ads will still disappoint…
#1 47%
Mobile App Category
Of all Mobile App
by downloads is Social
Consumption is Social
Gaming
Gaming
(Except in mobile gaming)
Sources : Morgan Stanley, emarketer, Facebook, Flurry

28. Pre Roll will continue to dominate
(Video budgets in 2012)
90%
In Stream and Video banners
10%
Other
Source: AccuStream Research, Q4 2011

29. Video Ad Networks will be essential
But MUST evolve model to survive
Source: AccuStream Research, Q4 2011

30. Expect some network consolidation
Small tech/talent acquisitions
But no big buy outs
Source: AccuStream Research, Q4 2011

31. Thanks

32. 5 Predictions for mobile in 2012
Presented by: Presented on:
Carl Uminski 12th January
32
Somo Ltd - Copyright & Confidential

33. 1. Serious retail adoption
24%

34. 2. Rapid adoption of tablets
£
~5M = 46% iOS Mobile Browsing

35. 3. Augmentation of print media

36. 4. Synchronous use of TV

37. 5. Mobile Ad spend will explode (..again)
Ad spend 1%
time spent on
mobile
10%

38. Thank you
@uminski @somoagency

39. 39

41. Source: According to Econsultancy's 2011
Online Advertisers Survey Report
41

42. It is early days, but real time-bidding (RTB) is going to be as big an
initiative in Europe as it is in the US, where we are seeing triple-digit
increases in our ROI,” predicts Daphne Sacco, Director of Internet
Marketing at eBay International.
BSkyB has also been an early adopter of RTB in display advertising. In July
2010, it accounted for around 2% of Sky’s display adspend. By January
2011, this had grown to 18%. Matthew Turner, Head of Online Sales and
marketing at Sky, hopes this will reach 50% by 2013.
Source: Marketing Week article – “Why RTB is a game-
changer for digital ads”, September 2011

44. 2. Re-engineering Business Models

46. 46