1

Getting Creative With Programmatic Chuck Moran VP Marketing RhythmOne

November 14, 2016

2

Programmatic Has Arrived

Note: Digital display ads transacted via an API, including everything from publisher0erected APIs to more standardized RTB technology; includes native ads and ads on social networks like Facebook and Twitter; includes advertising that appears on desktop/laptop computers, mobile phones, tablets and other internet-connected devices; *includes banners, rich media, sponsorship, video and other Source: eMarketer, Sep 2016

$11.59

$17.50

$25.23

$31.87

$37.88

55.0% 65.0%

73.0% 78.0% 82.0%

145.3%

51.0% 44.2% 26.3% 18.9%

2014 2015 2016 2017 2018

Programmatic digital display ad spending % Change Percent of total digital display ad spending*

US Programmatic Digital Display Ad Spending, 2014-2018 Billions, % change and % of total digital display ad spending*

3

Get Beyond Display PRIORITY NO.1

83.0%

BUY RICH MEDIA

92.8%

BUY VIDEO

83.9%

BUY NATIVE

42.0% ARE BUYING ALL THREE

4

Opportunities and Challenges

What is Native?

76%

63%

53%

40%

32%

19%

Sponsored Content

In Feed Ads

Content Widgets

Promoted Listings

Native Banners

Paid Search

INSTREAM

All: 92% Power: 93%

OUTSTREAM

All: 43% Power: 64%

Source: Advertising spend based on IAB data for full year 2015. ~$22B opportunity calculated assuming Mobile ad spend share equal its respective time spent share. Time spent share data based on eMarketer 4/16. Excludes out-of-home, video game, and cinema advertising.

Time Spent

Ad Spend

Total internet ad spend = $60B, of which mobile ad spend = $21B

Time Spent In Mobile vs. Mobile Advertising Spend USA, 2015

~$22B OPPORTUNITY VIDEO INVENTORY RICH MEDIA INVENTORY NATIVE INVENTORY

POOR QUALITY 36.4%

GOOD QUALITY 63.6%

POOR QUALITY 27.6%

GOOD QUALITY 72.4%

POOR QUALITY 22.4%

GOOD QUALITY 77.6%

5

Aligning Goals and Expectations

BRAND

PERFORMANCE

M A R K E T I N G F U N N E L

Awareness

Consideration

Conversion

Loyalty

42% NATIVE

39% VIDEO

42% RICH MEDIA

TOP GOALS

PRIORITY NO.2

59% NATIVE

48% VIDEO

65% RICH MEDIA

TOP SUCCESS METRICS

6

Marketing Technology

Advertising Technology

First-Party Data Second- and

Third-Party Data

Gaining a 360 View of the Customer

CRM

Website

In Store

Email/ IM

Call Centers

Events Social Media

TV

DOOH

Mobile Advertising

Desktop Advertising

Search

Transactions/ purchases

Content Engagement

Call Center Data

Account data

In-person interaction

Chat Search/ browsing behaviors

Demographics

Purchase trigger

Geo-location

Preferences

Needs

Communities

CUSTOMER

360° CUSTOMER INSIGHTS

PRIORITY NO.3

7

The Consolidation Opportunity

Over 60% of respondents use between

2-5 platforms for their programmatic buying

… Volume, Volume, Volume

35% 42%

33%

55%

Pro-consolidation Anti-consolidation

Volume: Performance Volume: Ad Type

The Solution? …

6.8% use 10+

8

Programmatic

A Starting Point

TV

Nat

ive

Soc

ial

Vid

eo

Mob

ile

Dis

play

Prog

ram

mat

ic

Prog

ram

mat

ic

9

Key Takeaways

To capitalize on the next generation of programmatic, we must:

•  Get out of our display shell

•  Align our goals and expectations

•  Consolidate to achieve a 360 degree view of clients

1 2 3 •  Get out of our display shell

•  Align our goals and expectations

•  Consolidate to achieve a 360 degree view of clients

1 2 3 •  Get out of our display shell

•  Align our goals and expectations

•  Consolidate to achieve a 360 degree view of clients

1 2 3 •  Get out of our display shell

•  Align our goals and expectations

•  Consolidate to achieve a 360 degree view of clients

1 2 3