Jinenne Sutherland from Audience Accelerator's presentation from Digiday Publishing Summit on September 18, 2014.

1. THE VALUE OF DIGITAL
PUBLISHERS’ AUDIENCES
Digiday Publishing Summit
September 2014

3. PUBLISHERS

4. PUBLISHER SUMMARY
Publishers are…
• More than ever looking to Audience-Extension solutions
• Are more sophisticated than they were a year ago, with a
greater understanding of Audience Extension
• Are looking to the future with growing demand for insights
and more visibility

5. MORE THAN HALF OF PUBLISHERS ARE OFFERING AUDIENCE EXTENSION
Yes
52%
No
48%
Q: Do you currently offer Audience Extension to your advertising partners?

6. INCREASINGLY, PUBLISHERS ARE OFFERING IT ON MOST CAMPAIGNS
Q: How often do you currently include Audience Extension on campaign proposals?
8%
64%
2013 2014 Actual 2015 Planed
21%
58%
33%
6% 7%
3%
0%
39%
48%
12%
Rarely - Maybe once or twice
a year
Sometimes - It depends on
the campaign
Often - On most campaigns Always

7. DEMAND FOR SCALABILITY HAS INCREASED
0% 10% 20% 30% 40% 50% 60% 70% 80%
We include it when we need additional reach or
impressions to deliver on a campaign
We include when it addresses an objective specifically
asked for in an RFP
We include when an RFP asks for data-driven, audience-based
buys
We created a unique product and rolled it out to our
top advertisers
We included when an RFP asks for channels that we
don't have (e.g. mobile, video, social)
Other
2014
2013
Q: How do you currently include Audience Extension on campaign proposals? (please select all that apply)

8. 77% OF PUBLISHERS HAVE BEEN OFFERING FOR 1+ YEARS
5%
18%
25%
34%
18%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Less than 6
months
6 months 1 year 2 years 3 or more years
Q: How long have you offered Audience Extension to your advertising partners?

9. PLATFORM CHOICE SHIFTING FROM AD NETWORKS TO DMPs & DSPs
0% 10% 20% 30% 40% 50% 60%
Data management platform (DMP)
Demand side platform (DSP)
Integration with my ad server
Third-party ad network
In-house network
Supply side platform (SSP)
Seat on an ad exchange
2014
2013
Q: What platform(s) are you currently using for Audience Extension? (Select all that apply)

10. 90% OF PUBLISHERS ARE FAMILIAR WITH AUDIENCE EXTENSION
10%
28%
62%
Not at all familiar
Somewhat familiar
Very familiar
Q: How familiar are you with the concept of Audience Extension?

11. INCREASE IN ABILITY TO MEET GOALS AND GROW REVENUE
0% 10% 20% 30% 40% 50% 60% 70% 80%
We have been able to meet goals for customers that we
would have otherwise not met
We have been able to win more money on proposals
We have been able to take business that we would have
otherwise turned down
We have been able to win new business
We have been able to keep business that we would have
otherwise lost
Offering audience extension has had no effect on your
revenue
Other (please specify)
2014
2013
Q: How has offering Audience Extension affected your revenue? (Please select all that apply.)

12. PLAN TO GROW % OF AUDIENCE EXTENSION REVENUE IN NEXT YEAR
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1-10% 11-20% 21-30% 31-40%
2014 actual
2015 planned
Q: What percentage of your ad revenue is currently attributable to Audience Extension?

13. AUDIENCE-EXTENSION CPMS ARE LOWER THAN OWNED AND OPERATED,
BUT NOT BY MUCH
64%
18%
9%
9%
Our CPMs for audience extension are
lower than on-site inventory
Our CPMs for audience extension are
about the same as on-site inventory
Our CPMs for audience extension are
higher than on-site inventory
Our CPMs for audience extension are less
than half those of on-site inventory
Q: Compared with your on-site inventory, are your average CPMs for Audience Extension higher or lower?

14. Q: What development would you like to see in the Audience Extension category in 2014?

15. PICKING A PLATFORM TAKES TIME
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Less than a
month
1 month 2 month 3-4 months 5-6 months 7-12 months More than a
year
Q: How long, from start to finish, did it take your organization to choose a platform for Audience Extension?

16. MULTIPLE VENDORS ARE EVALUATED
6%
9%
43%
27%
15%
1 Partner
2 Partners
3 Partners
4-6 Partners
More than 6 Partners
Q: How many Audience Extension partners did you consider during your evaluation process?

17. EASE OF USE, CONTROL, AND RESULTS ARE TOP REQUIREMENTS
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Ease of use/implementation
Ability to pick site lists/brand-safe inventory
Proven results
Ability to retarget
Data privacy
Multi-platform integration (e.g. mobile, video)
Full-service support team
Ease for the sales team to pitch to buyers
Self-service capabilities
Quality of graphical user interface (GUI)
Ability to purchase third-party data through the platform
Training program for our sales team
Buyer awareness of the technology's brand
Soemwhat to very
important
Not very to
somewhat not
imporant
Q: How important is each of the following factors when choosing an Audience Extension solution?

18. FEWER THAN HALF OF PUBLISHERS ARE USING A DMP
38%
62%
Yes
No
Q: Do you currently have a data management platform (DMP) solution in place?

19. EASE OF USE, INSIGHTS, AND SEGMENTATION ARE TOP FEATURES
DESIRED FOR DMPs
0% 20% 40% 60% 80% 100% 120%
Access to audience insights
Ease of use/implementation
Ability to build and target customer segments
Data security
Price
Ability to monetize first-party data through the platform
Self-service capabilities
Audience extension capabilities
Full-service support team
Quality of graphical user interface (GUI)
Ability to purchase third-party data through the platform
Ability to buy additional inventory on exchanges or networks
Soemwhat to very
important
Not important to
somewhat not
imporant
Q: How important is each of the following factors when choosing a data management platform (DMP)?

20. WITH PROGRAMMATIC PUBLISHER ARE FOCUSING ON UNIQUE PROGRAMS
0% 10% 20% 30% 40% 50% 60% 70%
We have put some or all of our inventory on ad
exchanges
We have created unique ad units/formats that
are not available on ad exchanges
We have focused on selling sponsorships and
custom programs
We have created or are participating in a
premium private exchange
We have not made any adjustments to our
business
We have reduced or eliminated our media sales
team
2014
2013
Q: How has the advent of programmatic buying affected your business? (Please select all that apply)

21. ADVERTISERS

22. ADVERTIERS SUMMARY
Advertisers…
• View Audience Extension as a favorable channel once they
adopt it in their campaigns
• Feel viewability, performance, and access are important
components of their Audience-Extension programs
• See Audience Extension as a way to make their budgets go
further

23. THEY ARE PARTNERING WITH THOSE THAT OFFER AUDIENCE EXTENSION
30%
70%
Yes
No
Q: Have you partnered with a publisher offering Audience Extension?

24. THEY SPEND MORE WITH PUBLISHERS THAT OFFER AUDIENCE EXTNESION
0% 10% 20% 30% 40% 50% 60%
I am more likely to spend more with publishers who
offer audience extension
I am less likely to spend more with publishers who offer
audience extension
It has no effect
2014
2013
Q: How does Audience Extension affect the amount of budget you allocate to publishers who offer it?

25. VIEWABILITY AND PERFORMANCE ARE TOP NEEDS
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Viewability of ads
Equivalent performance of the extended inventory with the
initiating site
Inclusion of recognizable brands vs. "longtail" sites in the
buy
Assurance that extended inventory is "brand safe"
Frequency management
Opportunity to reach the same audience as the initiating
content site
Bundled access to preferred ad units or native advertising
The necessity of extension for the site to meet minimum
reach requirements
Cross-platform opportunities (e.g. mobile, social, video
extensions)
Soemwhat to very
important
Neutral
Not important to
somewhat not imporant
Q: How important is each of the following factors when evaluating a proposal that includes Audience Extension?

26. PERCEIVED BENEFITS FOCUS ON PREMIUM AND DIVERSIFICATION
0% 10% 20% 30% 40% 50% 60% 70%
Inclusion of premium content sites
Enhancement to brand campaign
Diversification / discovery
Audience customization
More advertising options with premium content sites
Access to more channels (e.g. mobile, social, video)
Publisher's first-party data applied to my campaigns
Enhancement to direct response campaigns
Consolidates reach in a single source
Improved measurement
Other
Q: What do you consider the benefits of Audience Extension? (Select all that apply)

27. Q: How would you like to see Audience Extension develop in the coming year?

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