Fernando Narcio

Regional Manager, Latin America

@ PubMatic

5 Thought-Driving Trends in Media

1. Follow the Consumer

2. Empower Publishers

3. Inspire Buyer Confidence

4. Role of Technology

5. Look Beyond the Horizon

5 Thought Drivers

1. Follow the Consumer

2. Empower Publishers

3. Inspire Buyer Confidence

4. Role of Technology

5. Look Beyond the Horizon

5 Thought Drivers

Content is KingRelevance

Follow the Consumer…

More Connected Devices Per Person

More Time Spent with Media Per Day

More Ad Impressions Seen Per Day

Advertisers Continues to Follow Consumers into Digital

2015 2020E 2035E

Global Ad Spending, Digital vs. Non-Digital($ in Billions)

Global Non-Digital Advertising (-6% CAGR)

Global Digital Advertising (12% CAGR)

21%

79%

36%

64%90%

10%

2015

$30B

2035

$1.1Trillion

Programmatic Spend

$7

21 $9

71

$1

,50

0

Sources: IDC, Magna Global, Zenith Optimedia, eMarketer and PubMatic Analysis

Ad Dollars Follow Digital & Mobile EyeballsAdvertisers coming to terms with consumers’ shifting consumption habits

$0,6 $1,4$2,4

$4,1

$6,3

$8,1

$5,5$6,8

$8,1$9,6

$11,1$12,7

2013 2014 2015 2016E 2017E 2018E

LatAm Digital & Mobile Ad Spend ($ in Billions)

Mobile

Total Digital

Sources: Mobile – eMarketer (Mar. 2015), Programmatic – eMarketer (Mar. 2015)

1. Follow the Consumer

2. Empower Publishers

3. Inspire Buyer Confidence

4. Role of Technology

5. Look Beyond the Horizon

5 Thought Drivers

REACH

FREQUENCY

DURATION

REQUIRED TECHNOLOGY FOUNDATION

Companies that are successful in extending theircapabilities early will win disproportionate share

Requirements for Success

DATAHOLISTIC

INVENTORY MANAGEMENT

OPTIMIZATION & CONTROL

REPORTING & ANALYTICS

Make Your Impressions Stand Out

1. Follow the Consumer

2. Empower Publishers

3. Inspire Buyer Confidence

4. Role of Technology

5. Look Beyond the Horizon

5 Thought Drivers

Concerns: Ad Fraud, Ad Blocking, and Viewability

Ad Quality Concern Driven by Ad Fraud

Source: WhiteOps (Dec. 2014), Integral Ad Science (Apr. 2015)

Global advertisers will lose

$6.3 billion to bots in 2015

4.0%

All Publishers

16.5%

Networks & Exchanges

% of Ads Affected by Ad Fraud

Ad Availability Concern Driven by Ad Blocking

Source: PageFair (June 2015)

Alone could have lost up to

$6.6 billion from

AdBlock in 2014

2%

10%

10%

10%

20%

20%

30%

Middle East & Africa

US

AsiaPac

Latin America

Canada

Western Europe

Central & Eastern Europe

Estimated Ad Blocking Adoption Rates, by Region

Latin America

Ad Value Concern Driven by Viewability

80% of ads seen for

1-2 seconds with

50%+ of the ad loadedwas deemed VIEWABLE

In a Media Rating Council (MRC)

analysis of billions of impressions…

% of Ads that are Viewable

All Publishers

Networks & Exchanges

Source: Integral Ad Science (April 2015)

1. Follow the Consumer

2. Empower Publishers

3. Inspire Buyer Confidence

4. Role of Technology

5. Look Beyond the Horizon

5 Thought Drivers

Publisher Journey

Technology is Required For Success in Media

This means automating the publisher’s marketing value chain—everything from identifying a new buyer, qualifying that buyer, nurturing buyer relationships, converting a sale and identifying future opportunities to upsell and cross-sell.

Obviously, these are not new concepts. However, doing them successfully millions of times a week and in real-time is only possible when enabled by technology.

ID Opportunities Qualify Nurture Convert Grow

Marketing Automation is RequiredOpportunity

Identification Qualification Planning Conversion Growth

Publishers Need to Identify Potential New Advertiser Relationships

Publishers Need to Qualify Target Audiences & Placements for Advertisers

Publishers Need Inventory Packaging and Negotiation

Publishers Need IO Generation & Trafficking of Campaigns

Publishers Need to Identify New Cross-Screen, Cross-Channel Opportunities

The Good and Bad of Multiple Partners

20

Advantages Challenges

A tiered pricing strategy (leads to higher fill rates, value for inventory)

First look inventory is sold arbitrarily (risk of overexposing and devaluing inventory)

Create more competition for your inventory from potential new partners

Ad quality concerns(sources of fraud, imperfect block-lists)

Diversify partner revenue streams and ad-serving opportunities

Low visibility and no single source of truth from data

Free to take advantage of market changes and emerging technology

Slower page loads, poor ad UX and lost impressions

Key questions for your tech partner

Whose best interests are being served?

Is your partner focused on innovating the tech you need?

Is your forward visibility their highest priority?

Is their platform proposition truly holistic or a point solution?

Does their business model make them a vendor or a partner?

1. Follow the Consumer

2. Empower Publishers

3. Inspire Buyer Confidence

4. Role of Technology

5. Look Beyond the Horizon

5 Thought Drivers

Growing Need to Simplify the Stack

22%

25%

17%

15%

21%

15%

20%

14%

20%

31%

5 or fewer

5-10 vendors

11-20 vendors

21-30 vendors

30+ vendors

20152012

51%of organizations use more than

20 vendors

Actionable Insights Are Your Competitive Advantage

25%

37%

44%

47%

47%

Real-time reporting

Advanced customerbehavior analytics

Dashboards

Cross-channelview of results

Prescriptive andpredictive analytics

Source: Gartner (2014), Regalix (Mar. 2015)

85% of marketing organizations are

leveraging analytics data to measure marketing effectiveness

Media companies spend 11% of their

marketing budget on analytics

Top Needs from a Marketing Software Provider

• Follow the “hyper-connected” consumer and increase relevancy

• Deploy technology to understand and anticipate consumer needs

• Address buyer concerns

• Automate your marketing value chain

• Simplify the stack and use data to stay ahead

Key Takeaways

1. Follow the Consumer

2. Empower Publishers

3. Inspire Buyer Confidence

4. Role of Technology

5. Look Beyond the Horizon

5 Thought Drivers