Consumer Sports Engagement Apps--Explosive Growth Continues.

White Paper

6.10.20Written by Jeff McClelland, CEO PERFORMANCEbrandny, NY, NY

© 2020 PERFORMANCEbrandny & React, LLC. Super Squares® is a registered trademark of Media IP Holdings and React, LLC. U.S. Patents and Patents Pending.

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Recent Beta Test data shows superior Consumer Engagement and Brand Messaging analytics.

New Football app features Brand Messaging and offering first, one of kind, measurement and performance-based pricing model.

Consumer Engagement within Sports Apps has exploded.This position paper will cover the continued explosive growth of sports apps, consumer engagement and feature a recently launched and beta test of a new app designed to “Put Fans and Brands in the Game.”

2020 will continue to show growth of downloads of consumer engagement focused apps.

“The Three V’s – Viewability, Verification, and Value – as the areas of greatest weakness in digital and even legacy media’s efforts to distribute and charge for advertising.”

- Sir Martin Sorrell (Former WPP Chairman & Current Exec. Chairman, S4 Capital)

According to REACT, LLC (“REACT”) founder and architect of patented new live mobile game show app, SUPER SQUARES®

“Sir Martin is right – big brands and agencies are paying for video ads to be watched for as little as two seconds, often with only half the ad visible, without any proof of who the person is, or that they are even paying attention!”

- Frank Maggio, Founder, CEO & Architect of REACT, LLC

Are you ready for some football?

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Supporting Growth Evidence.

“The 2019 PWC Internet advertising report demonstrates that even while the digital advertising industry matures, innovation continues to propel the growth of the industry at rates far surpassing other ad supported media.” - David Silverman,Partner, PwC

With over 3.2 billion smartphone users across the world, it’s no surprise that the mobile app industry is thriving. App usage and smartphone penetration are still growing at a steady rate, without any signs of slowing down in the foreseeable future.

Now factor in the over 1.35 billion tablet users worldwide, which is a number that has doubled over the past six years.

In fact, recent studies show that the average American checks their phone every 12 minutes. 10% of people check their phones once every four minutes.

90% of mobile time is spent on apps.

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• Mobile apps are expected to generate $582 billion inrevenue through 2020.

• The Apple App Store has 2.2 million apps available fordownload; Google Play has more, at 2.8 million apps.

• 49% of people open an app 11+ times each day.• This year, projections call for 232 billion app downloads.• The average person has 40 apps installed, but 89% of the

time is spent on 18 apps.• The average weekly time spent on gaming apps is 116

minutes; second only to social apps (at 131 weekly)Non-linked data source: www.buildfire.com/app-statistics/

You probably assumed that younger generations spend more time using mobile apps than people who are older. If so, that assumption was correct.

However, that doesn’t mean you can’t target other age groups. As you can see from the graph below, people between the ages of 25-34 spend only 1% more time on second screens than those aged 35-44 and 45-54. In fact, users aged 55-64 now spend more time on second screens than any age band older than 24 years of age:

Key Mobile App Statistics

So, what does market data show in terms of usage and age breakdown?

Mobile apps are expected to generate $582 billion in revenue through 2020.

In fact, users aged 55-64 now spend more time on second screens than any age band older than 24 years of age

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New Digital & App Platform launches in sync to NFL games putting fans “back in the game” and providing consumer brands robust, consumer engagement.The Super Squares® app merges the live TV viewing behavior of football fans, with the impulse to multi-task that strikes when live football games take a break.The sync-to-TV 2nd screen experience takes advantage of the attention and time shift from TV to mobile devices that continues to trend towards greater time spent on mobile.

SOURCE: eMarketer

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The Super Squares® live score-matching game show app is engineered to sync to live football games and allows Fans to be “in the game” -- something no other major 2nd screen mobile app is capable of support-ing. Most sports apps rely on pre-game prediction and wagering to attract users but leave them with little to do once the football game starts.

Audiences want to play NOW, be rewarded, and be at the center of attention – especially today, given the COVID-19’s dramatic impact on sports.

REACT’s patented, reactive advertising™ platform, de-livers adrenalized, proven fan and ad engagement via a wave of apps and products rolling out in 2020. The first is the Super Squares® live mobile game show.

Synced to live NFL football starting this fall, Super Squares® score-matching quiz show rewards fans who watch and react in real-time, from kickoff to final whistle. Fans engage with the app and Sponsors during the major breaks in the action – the time most likely to draw viewers away from the TV and to their mobile devices.

Reactive Advertising

Super Squares®, REACT’s dynamic real-time sports engagement app, has recently garnered national attention.

Fans First

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Sports Apps and True Consumer Engagement Dominate the App Landscape

The 2nd screen is now a critical part of real-time sports.

As the chart below shows, overall app downloads and participation are dominated by those within the sports category.

While apps such as the ESPN®, NFL®, NBA®, CBS and Fox Sports act mainly as “news” and ongoing team by team information sources, as recently as March 2020, sports leagues have promoted and began using Sports Trivia and “predictor games” in an effort to excite their audiences and drive engagement—thus creating new Consumer Brand Messaging opportunities for leading brands and further driving engagement with brand messaging. In most instances, brands are either not present, or are presented to fans in a traditional banner or screen takeover model.

Let’s be honest - 90% of sports fans feel the need to multi-task on 2nd screens.

But much of what takes place there is left to third parties, who are not associated with the teams, networks, leagues and brands that make the football game possible. REACT is aligned with the benefactors of sports – and drives fans back to watching live in order to maximize their 2nd screen experience.

Super Squares® has created a new game day experience and adrenalized a consumer “passion point” that takes back the 2nd screen.

“Sports Apps” is a broad category. REACT has pinpointed the right sector of sports for its first product: Fan Engagement. And, with pandemic-related concerns likely to diminish the number of fans attending events live at stadiums, providing a second screen solution that engages an even larger at-home audience is even more timely:

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Message Integration and Reports—What’s In It For Brands and AgenciesAll said, a) full Integration of messaging into an app, and b) custom real time dashboard reporting, has not been realized within most app brand engagements.

Further, brands and agencies prefer to engage and participate with apps where brand messages are assured of being seen and only where the brand “pays for performance” and viewed messages.

“Don’t even think about talking to me through 2020 unless your offering is wrapped in a digital experience… that offers and further allows our brand to only pay for performance and consumer engagement within the digital and social ecosystem” - Leading Global Spirits Brand. Category VP of Marketing and Digital Engagement

What is REACT’s position related to guaranteeing performance of advertiser messaging and creating a platform that offers product and category exclusivity?

Category exclusive Sponsors’ in-app ads are in the game – literally – so brands finally get the attention (and data) they deserve. Sponsors only pay when fully registered users “react” to their advertising—an industry first. Projected app audience sizes are tied to the size of the audience consuming the live sports on TV, radio, or attending the event. And while NFL football games are the first to be synced, all major sports and motorsports can be made Super Squares® ready.

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Other Brand benefits

What Is Really In It For Brands With This New App?

• Fully viewed ad (with ability to re-watch at no charge)• Fully registered user that provides demographic information• Ad sentiment measurement via a rapid ad rating system• Response to quiz about messaging where “players” are rewarded for having viewed and

understood a message

• Max 10 brands/season, each with Category Exclusivity• Census-level proof ads are served, viewed, rated, and reacted to• Est. 70+ million Reactions, 700+ million impressions over season

Economics - Only pay for full REACTIONS

When asked:

“What do brands, and agencies want from a consumer app in terms of data and engagement, performance-based efforts?”

REACT’S Answer:

An Advertiser dashboard with unequalled insights into census-level ad efficacy and spontaneous sentiment measurement, along with proof of demography, delivery, viewability, and engagement.

Beta Test of “Classics” Version Provides Snapshot of the Future of Census-Level Brand Engagement.

Dashboard Preview and Real Time Reporting made available from REACT's Super Squares® App BETA Test, Monday, May 25, 2020 during ESPN’s rebroadcast of an Oct. 2015 NFL game.

Those invited to play had more than fun; they had a visceral front row seat how advertising becomes content, when they become adrenalized, gamified, and rewarding:

“While playing Super Squares® Live, I felt a cognitive shift in the way I viewed and digested the advertisements knowing I would be quizzed on the content. …it’s a powerful tool for advertisers and entertainment for users.”- Christopher Anci, COO, Fisher Capital Investments

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Reporting

NOTE: Each brand’s creative noted below were curated from online, public domain sites. No endorsement of their previously published “ads/messages” is implied.

This is an example of reporting and analysis available to each participating brand and agency, drawn from REACT’S Super Squares® custom dashboard under development. Data is avail-able for review within 12 hours of any supported live sporting event:

Below is an example of reporting from the Super Squares® Classics Beta game that focused on 200+ invited VIP’s and users.

COMING SOON: Brand ESPTM Dashboard• E = Engagement (Ad Skips; Ad Replays; Ratings; Reactions)• S = Sentiment (Overall; Demographic; Over Time; By Category)• P = Performance (Viewing; Verification; Value (Event/Campaign)

• Fans are the energy of sports.• Fan attention is the currency.• BRANDS are BENEFACTORS• RESPECT for FANS & BRANDS

Fans and brands agree –

Adrenalized reactive ads work BETTER.REACT, LLC and the Super Squares® app put FANS FIRST, positioning brands and agencies as the benefactors of football game day excitement, beginning this fall.

Advertising is IMPORTANT CONTENT.• Ad dollars fund media & sports.• When ads work, people work.

According to REACT, LLC, exciting news about national integration with media and/or league platforms is expected this summer. At that time, the company plans to release new media network and digital partners.

For more information, click here or reach out to Jim Coraci, SVP National Accounts & Sponsors at jim@react.net.