The E.T.T.A. Equation
AppNexus Inc. — Confidential!1
JC Conti, VP Publishers, EMEA!
Evolution of Programmatic
Publishing:!
2
is the world’s leading
independent advertising
technology company!
It’s big. !
Really 

big.!
AppNexus Inc. and Circle Research Ltd; 2015

3
of Global respondents feel that programmatic will
play an important or dominant role in the future of
digital advertising !
91%!
Advertising Growth will come from Programmatic
AppNexus Inc. - Confidential – Not for Distribution
4!
Global Advertising 2015 – 2019 . In Bn $!
Source:	
  IDC	
  and	
  AppNexus	
  es4mates	
  
Global

Advertising!
$623

4.98%!
CAGR!
Digital!
Advertising!
$246!
11.53%!
CAGR!
Programmatic!
Advertising!
$61.9!
20.56%!
CAGR!
Rational benefits have driven strong adoption
AppNexus Inc. - Confidential – Not for Distribution
5!
AppNexus	
  Inc.	
  and	
  Circle	
  Research	
  Ltd;	
  2015	
  
Targeting
Automation
Real-time
PROGRAMMATIC
92% 
media buying
agencies…	
  
67% 
total

ecosystem…	
  
61% 
Publishers	
  
Still: Challenges of adopting programmatic 
AppNexus Inc. - Confidential – Not for Distribution
6! AppNexus	
  Inc.	
  and	
  Circle	
  Research	
  Ltd;	
  2015	
  
So how to tackle those hurdles:
AppNexus Inc. - Confidential – Not for Distribution
7!
Lack of understanding on
how programmatic works
Fear of Advertising
appearing on undesirable
sites 
Lack of transparency on
where advertisements
end up
Technical Complexity
Evangelization 
& Training
Operate in a
Trusted
Marketplace
Create Greater
Transparency 
Improve
Automation to
Increase Yield
E+T+T+A
Evangelization & Training
AppNexus Inc. - Confidential – Not for Distribution
8!
Operate in a Trusted Marketplace
•  Aggressive Policies
•  Product & Technology 
•  Initiatives 
AppNexus Inc. - Confidential – Not for Distribution
9!
AppNexus Inc. - Confidential – Not for Distribution
10!
	
  $-­‐	
  	
  	
  	
  
	
  $0.10	
  	
  
	
  $0.20	
  	
  
	
  $0.30	
  	
  
	
  $0.40	
  	
  
	
  $0.50	
  	
  
	
  $0.60	
  	
  
CPM	
  
CPM	
  
CPMs ì 175%
AppNexus Inc. - Confidential – Not for Distribution
11!
SEEKING THE TRUTH IN DATA!
0	
  
0.00001	
  
0.00002	
  
0.00003	
  
0.00004	
  
0.00005	
  
0.00006	
  
Post-­‐click	
  conversion	
  rate	
  
Post-­‐click	
  conversion	
  rate	
  
Post-click Conversion Rate ì 130%
AppNexus Inc. - Confidential – Not for Distribution
12!
SEEKING THE TRUTH IN DATA!
$0	
  
$500,000	
  
$1,000,000	
  
$1,500,000	
  
$2,000,000	
  
$2,500,000	
  
$3,000,000	
  
$3,500,000	
  
Buyer	
  spend	
  
Buyer	
  spend	
  
Buyer Spend è (Unchanged)
Create Greater Transparency 
AppNexus Inc. — Confidential
13!
[IMAGE / VISUAL]!
beats!OPEN! CLOSED!
AppNexus Inc. — Confidential
14!
•  Minimal	
  data	
  
•  Low	
  compa4bility	
  
•  Lack	
  of	
  granularity	
  
•  Hidden	
  costs	
  
•  Open,	
  limitless	
  data	
  
•  Open	
  API	
  
•  Granularity	
  
•  Actual	
  costs	
  
Improve Automation
15!
“…If the objective of ad tech is to streamline and simplify the process by which digital inventory is
bought and sold, then the status quo is decidedly unsatisfying…”
BUYER!SELLER!
RTB Open Auction!
Class 1 Ad serving!
Deals!
Programmatic
Guaranteed!
Data Platform!
Yield Optim. /Analytic!
16
 AppNexus Inc. - Confidential – Not for Distribution!
Key

Takeaways!
EVANGELIZATION	
  +	
  
TRUST	
  +	
  	
  
TRANSPARENCY	
  +	
  	
  
AUTOMATION	
  
GREATER	
  
PROGRAMMATIC	
  
PLATFORM	
  	
  
Questions !
& Answers!
17
 AppNexus Inc. — Confidential!

The Evolution of Programmatic Publishing sponsored by AppNexus - DPSE, 10/6/15

  • 1.
    The E.T.T.A. Equation AppNexusInc. — Confidential!1 JC Conti, VP Publishers, EMEA! Evolution of Programmatic Publishing:!
  • 2.
    2 is the world’sleading independent advertising technology company!
  • 3.
    It’s big. ! Really
 big.! AppNexus Inc. and Circle Research Ltd; 2015 3 of Global respondents feel that programmatic will play an important or dominant role in the future of digital advertising ! 91%!
  • 4.
    Advertising Growth willcome from Programmatic AppNexus Inc. - Confidential – Not for Distribution 4! Global Advertising 2015 – 2019 . In Bn $! Source:  IDC  and  AppNexus  es4mates   Global
 Advertising! $623
 4.98%! CAGR! Digital! Advertising! $246! 11.53%! CAGR! Programmatic! Advertising! $61.9! 20.56%! CAGR!
  • 5.
    Rational benefits havedriven strong adoption AppNexus Inc. - Confidential – Not for Distribution 5! AppNexus  Inc.  and  Circle  Research  Ltd;  2015   Targeting Automation Real-time PROGRAMMATIC 92% media buying agencies…   67% total
 ecosystem…   61% Publishers  
  • 6.
    Still: Challenges ofadopting programmatic AppNexus Inc. - Confidential – Not for Distribution 6! AppNexus  Inc.  and  Circle  Research  Ltd;  2015  
  • 7.
    So how totackle those hurdles: AppNexus Inc. - Confidential – Not for Distribution 7! Lack of understanding on how programmatic works Fear of Advertising appearing on undesirable sites Lack of transparency on where advertisements end up Technical Complexity Evangelization & Training Operate in a Trusted Marketplace Create Greater Transparency Improve Automation to Increase Yield E+T+T+A
  • 8.
    Evangelization & Training AppNexusInc. - Confidential – Not for Distribution 8!
  • 9.
    Operate in aTrusted Marketplace •  Aggressive Policies •  Product & Technology •  Initiatives AppNexus Inc. - Confidential – Not for Distribution 9!
  • 10.
    AppNexus Inc. -Confidential – Not for Distribution 10!  $-­‐          $0.10      $0.20      $0.30      $0.40      $0.50      $0.60     CPM   CPM   CPMs ì 175%
  • 11.
    AppNexus Inc. -Confidential – Not for Distribution 11! SEEKING THE TRUTH IN DATA! 0   0.00001   0.00002   0.00003   0.00004   0.00005   0.00006   Post-­‐click  conversion  rate   Post-­‐click  conversion  rate   Post-click Conversion Rate ì 130%
  • 12.
    AppNexus Inc. -Confidential – Not for Distribution 12! SEEKING THE TRUTH IN DATA! $0   $500,000   $1,000,000   $1,500,000   $2,000,000   $2,500,000   $3,000,000   $3,500,000   Buyer  spend   Buyer  spend   Buyer Spend è (Unchanged)
  • 13.
    Create Greater Transparency AppNexus Inc. — Confidential 13! [IMAGE / VISUAL]! beats!OPEN! CLOSED!
  • 14.
    AppNexus Inc. —Confidential 14! •  Minimal  data   •  Low  compa4bility   •  Lack  of  granularity   •  Hidden  costs   •  Open,  limitless  data   •  Open  API   •  Granularity   •  Actual  costs  
  • 15.
    Improve Automation 15! “…If theobjective of ad tech is to streamline and simplify the process by which digital inventory is bought and sold, then the status quo is decidedly unsatisfying…” BUYER!SELLER! RTB Open Auction! Class 1 Ad serving! Deals! Programmatic Guaranteed! Data Platform! Yield Optim. /Analytic!
  • 16.
    16 AppNexus Inc.- Confidential – Not for Distribution! Key
 Takeaways! EVANGELIZATION  +   TRUST  +     TRANSPARENCY  +     AUTOMATION   GREATER   PROGRAMMATIC   PLATFORM    
  • 17.
    Questions ! & Answers! 17 AppNexus Inc. — Confidential!