MEDIATIVE PERFORMANCE DISPLAY

AGENDAMEDIATIVE PERFORMANCE DISPLAY PRODUCT

1. What is the market growth? ($)2. Mediative Display & Definition of Performance3. What is the Product & What are the Product Features4. The Product Staircase5. Campaign Delivery Business Rules 6. The Reports7. Billing Rules8. Exceptions and Escalation Process

2017: $258.2M45.0% Growth Year-over-Year.

2016: $178.0M49.2% Growth Year-over-Year.

2015: $119.3M. 46.0% Growth Year-over-Year

2014: $81.7M47.5% Growth Year-over-Year

THE PROGRAMMATIC/RTB MARKET STRONG GROWTH IN CANADA THOUGH TO 2017

Source: eMarketer, 2014

Strong & consistent growth in Canada is driven by attractive CPMs and the evolution of programmatic direct buys.

Programmatic direct will fuel a significant amount of the industry growth in Canada.

MEDIATIVE’S USP = PERFORMANCE

5

2 TYPES OF DISPLAY CAMPAIGNS

1

2

BRANDING & AWARENESS

PERFORMANCE

Leveraging data targeting is incorporated into both Mediative’s Brand Awareness & Mediative’s Performance Campaigns.

WHAT IS PERFORMANCE?PERFORMANCE IS CONVERSIONS

“Media buyers buy on CPM, CPC, or DealID; but they cancel on CPA”

- Jennifer Dunn

Regardless of the how the media is purchased, the most determining factor of the success of a performance campaign is the cost per conversion.

WHAT IS PERFORMANCE?PERFORMANCE IS CONVERSIONS

“Conversion campaigns rely on having the right impression land on the right user.  In short, performance campaigns are led by the first data-fuelled impression to land on the correct user – not the last click standing.”

- John Fanous

WHAT IS A CONVERSION?

Conversions: a measurable on-site engagement action completed by a site visitor that directly correlates to a measurable business KPI. (EX: lead form completion, e-commerce transaction)

OPTIMIZATION FOR CONVERSIONSCLICKS ≠ CONVERSIONS IN ALL CASES

Optimizing for clicks consider the quantity of the visitor versus optimization for conversions is focused on the quality of the visitor.

• The vast majority of research indicates that conversions and clicks are not correlated.

• comScore research states that only 16% of consumers will click on ads

• 8% of consumers account for 85% of all clicks. • Studies by Nielsen indicate that there is virtually no

correlation between clicks and brand metrics or offline sales. • A case study by Rocket Fuel found that only 1% of total

revenue generated from an online campaign came from post click conversions.

OPTIMIZATION FOR CONVERSIONSCLICKS ≠ CONVERSIONS IN ALL CASES

Note: Conversion results need to include BOTH post click & post view conversions to track the full value to the display advertising.

OPTIMIZATION FOR CONVERSIONSINCREASING CPM/CPC LEADS TO DECREASED CPA

Higher CPC = higher quality visitor = higher likelihood to convert = more conversions = lower CPA

MEDIATIVE PERFORMANCE DISPLAYWhat Is It?

The Performance Display product is designed to optimize display

campaigns against a set of on-site conversion objectives related to

business KPIs.

GET ACTIONMEDIATIVE PERFORMANC DISPLAY SOLUTIONS

Drive Conversions from your display advertising maximizing returns from current and new audience opportunities.

COMPETITIVE ASSESSMENTFULL-SERVICE PERFORMANCE COMPANIES

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CompetitorPricing Model

Platform/Service

TechnologyData Sources

Notes

Rocket Fuel CPATechnology-Focused

Machine Learning DMP & DSP

3rd PartyProprietary DMP and DSP integration technology with custom-built machine-learning algorithms to create dynamic audience segments and leverages lookalike targeting to identify new potential customers based off of behaviour.

Quantcast CPMTechnology-Focused

Machine Learning DMP & DSP

1st PartyPerformance Lookalikes benefit from impression level, machine learned optimization on both macro and micro levels. RTB delivery algorithm learns which combination converts at a higher rate and secures bids on those impressions to drive efficiency.

eyeReturnCPM ($0.50 - $5)

Technology-Focused

Machine Learning DMP & DSP

3rd Party

3 Levels of Product: Awareness, Behavioural, & Performance. Performance campaign directs 100% of the budget to testing and optimizes the campaign based on behavioural, demographic and performance metrics. (4-week minimum campaigns w/ 2-week testing period) Strong reporting capabilities. 2-person team on each campaign (RTB-specialist & Analyst)

Exchange LabsCPM($3-$3.50)*

Services-Focused

Ad Serving Technology Plugging into 14-16 different DSPs

3rd Party

Technology that automatically collates and standardizes language and the data across all the platforms, generating one unified dataset; then benchmark price and performance across all the programmatic platforms. DataLab reporting is extremely detailed. Exchange Lab can also provide a list of sites the ad has appeared on. eCPM campaigns, and tend to work back to an eCPA. They will provide bid ranges on a proposal with margin built into the range at the start. Are able to geo-fence around addresses eCPM is roughly $6. Very quick sales response time (<1 day)*CPM is based on the number of tactics that are used $3-$3.50

Acuity AdsDynamic CPM ($5 CPM)

BothMachine Learning DMP & DSP

1st Party

Data from cookieing users to understand behaviours. 500 million profiles in Canada on user behavior. Collected overtime to create groups that can be targeted. Also use historical info from campaigns run in the past. Acuity takea SEO keywords and overlays data - identifying the topic of each page to ensure the best possible ad placements for a campaign. Also, this technology allows us to identify and avoid brand unsafe content.DCPM allows for Premium Placements averaging to about $5 CPM. Very quick sales response time (<1 day)

Key Takeaways:

1. Majority of competitors leverage CPM-based pricing – not a single competitor that was secret shopped mentioned a CPC pricing model.

2. Majority of competitors leverage 3rd Party Data with only a few having 1st Party Data

3. Competitors place their technological capabilities (DMP & DSP) front and center with a human team of analysts to monitor, report, and adjust strategy

4. Competitors heavily leverage lookalike targeting capabilities to drive performance.

5. Competitors provide detailed reporting w/ commentary and recommendations

Competitive analysis table in available in excel format for more detailed review

MEDIATIVE PERFORMANCE DISPLAYOUR UNIQUE SELLING PROPOSITION

Mediative will become a consultative, strategic partner; developing strategy-driven,

rigorous optimization programs aimed at delivering quantifiable results. Our first party

data and strategic approach to the purchase and bidding for impression inventory ensures

that Mediative is able to place your ad in front of the right user in the right context with

the an intent to purchase.

Our targeting and optimization processes ensures that the ad impressions your ad receives

initiates, influences and ultimately drives conversions.

PERFORMANCE DISPLAY: WHAT YOU GET

1 Media Strategy & Planning: Identification of channels, audiences and the overall approach required to drive towards an advertiser’s business objectives.

23 Media Buying: Mediative will execute your campaign against the

aforementioned media plan

4

Custom-Built, Dynamic Lookalike Modelling: Creation of profiles of converting user segments on your website and pattern matching that audience against the entire web ecosystem; delivering ads to those individuals using RTB technology.

5 Reporting and Insights : Regular reporting of campaign metrics and optimization tactics and insights as to the customer profile and audience make up.

Campaign Management & Optimization: On-going evaluation of the campaigns performance and altering of the campaign settings, budget distribution across tactics or channels, and updates to the campaign strategy to maximize performance.

REPORTING – GET ACTION

PERFORMANCE SUMMARY BY TACTIC & LINE ITEM

PERFORMANCE TREND ANALYSIS

INSIGHTS INTO CAMPAIGN PERFORMANCE BY AD COPY, AD SIZE, NETWORK, & AD POSITION

INSIGHTS INTO CAMPAIGN PERFORMANCE BY TIME OF DAY, DAY OF WEEK, GEOGRAPHY

HOW IT WORKSOUR PROCESS & TECHNOLOGY

TECHNOLOGY GAP

PROPOSED FUTURE

STATE

12

3

4

Tags are placed on all pages of the client’s site

Custom Audiences are created in Mediative’s Data Management Platform

Audiences are evaluated using signal analysis to identify common traits between customers who have converted. Custom audiences are created. Lookalike modelling is leveraged to identify other users who demonstrate similar behavioural characteristics

Mediative’s DSP Targets those users in real time and bids for those specific impressions.

5Mediative’s RTB algorithms learn which audiences, ad copy and campaign setting combinations are most effective at driving conversions and optimizes campaign delivery against those settings.

Custom Audiences

Lookalike Targeting

Conversions

INTERNAL USE ONLYAgency Direct

Pricing Model CPM CPMPrimary KPI Conversions Converisons Pricing $4.00 - $5.00 $4.00-$8.00

Min Spend$10,000

TBD per Finance$10,000

TBD per FinanceService LevelCampaign Manager Meetings (Internal or Client-Facing) 3X Bi-WeeklyApplication of Mediative Data Advertise on Mediative Exchange Campaign Set-Up Conversion Tracking Code Implementation Re-Targeting 3rd Party Data Custom Direct Data Strategy Similar Users Targeting (Look-a-like targeting) Strategic Media PlanningSegment-based Media Plan Development Target Market Defintion & Segmentation Campaign Test & Data Collection Period Campaign Strategy Definition & Tactical Outline In-House ServicesAd Creative Services Add-on Add-onLanding Page Development Add-on Add-onLanding Page Audit Add-on Landing Page Testing Optimization Frequency Daily DailyCampaign Performance Analysis (Client Report) Post Test Period Bi-WeeklyEnd of Campaign Report

Campaign Performance & Trending Business Insights Audience Insights

PRODUCT STAIRCASE

• Guaranteed CPA or Volume of Conversions

• CPC Campaigns (CPC is decidedly not performance)

• HyLoMo (Version 1)

• PPC Advertising (Search)

• Social Media Advertising (Version 1)

• Ad Creative Development

• Site Specific Reporting

• Video Ads or In-Stream Video Ads

• Call-Tracking, Social Media Audience Acquisition, Downloads, or qualitative conversion metrics cannot be supported.

WHAT THIS DOES NOT INCLUDE

INTERNAL USE ONLY

• Client must allow Mediative to effectively add tags to their site to allow for audience modelling and performance to be tracked.

– Tracking Pixels will need to be placed on the client site and validated prior to campaign launch. This process will have a direct impact on the lead time required to launch the campaigns.

• If no tags are able to be put in place, we will need to adjust to sell a Branding or Behavioural Campaigns

• Client’s site should have a minimum of 40,000 unique visitors per month for Performance Campaigns; otherwise PPC or SEO may be of more value to the client for driving a direct response campaigns.

• Campaigns should be run for a minimum duration of 30 days for net new campaigns.

• An initial testing period for data collection could last for up to 2 weeks prior to campaign launch.

• Campaign objectives must be provided to campaign managers in the campaign checklist document.

• The campaign checklist document must be provided with the opportunity reaching 75% in SalesForce. If no checklist has been completed & approved, no IO can be generated.

• Conversions must include post click and post view impressions

INTERNAL USE ONLY

BUSINESS RULESHOW DO WE EXECUTE PERFORMANCE CAMPAIGNS?

• Campaigns will typically launch within 10 business days after contract has closed.

• All ad copy should be provided to Mediative no less than 48 hours prior to campaign launch.

• Campaigns will run on Google DoubleClick Bid Manager (DBM) for the desktop campaigns.

• Mediative can provide landing pages and ad creative as add-ons to almost all packages.

• Additional ad copy can be added to the campaign (48hrs turnaround SLA)• Ad copy should be named with a specific theme or call-to-action should multiple ad

variations be used so that ad performance can be analyzed. • Campaign reporting will be delivered on a bi-weekly basis without commentary. • Final reporting will be delivered within 5 business days of the campaign end date

and will include commentary and future campaign recommendations. • Commentary will be a joint effort between the campaign manager and sales rep.• Should conversions still be occurring within the 5 day period, the report may be

delayed to capture the full value of the conversions driven from the campaign.• Bonus impressions/’make goods’ must be approved by Finance.

INTERNAL USE ONLY

BUSINESS RULESHOW DO WE EXECUTE PERFORMANCE CAMPAIGNS?

VERSION 1.0

Manual optimization with automated reporting and

strandardized business fules & workflows

VERSION 1.1

Increased Automation & Supported Conversions

VERSION 2.0

Machine Learning

VERSION 2.1

Cross-Channel Performance

VERSION 2.2

Best-in-Class Solution

DISPLAY FOR PERFORMANCEPRODUCT ROADMAP

PRODUCT HIGHLIGHTS

• Lead Generation & E-Commerce Conversion Optimization

• Standardized, Operations Workflows

• Automated Performance Reporting

• Desktop Performance Programmatic/RTB

PRODUCT HIGHLIGHTS

• Adding in Call Tracking, Conversion Optimization

• Look-a-like reporting & Basic Modelling

• On-demand Client-facing reporting

• Site blacklist database

• Dynamic Ad Creative

PRODUCT HIGHLIGHTS

• Dynamic Audience Development & Integration into DSP

• Increased Optimization Automation & Process Workflows

• Machine Learning

• Optimization Knowledge Base by Vertical

PRODUCT HIGHLIGHTS

• Integration w/ HyLoMo, Social Ads, GDN, PPC, etc.

• Cross-Channel Management (Display as a Service)

• Cross Channel Reporting

PRODUCT HIGHLIGHTS

• Advanced Attribution Modelling & Click Path Reporting

June 2014 Aug 2014 TBD Per Paul Ryan’s Plans 2015

HOW IT WORKSOUR SALES PROCESS FLOW

INTERNAL USE ONLY

Opportunity Identified

PRE-SALES PROCESS

75%50% 100%

Meeting with Campaign Manager

IO Created

Pixels Given to Client

IO Signed Campaign Launch

0%

10 Business Days

MANDATORY SF CHECK:Checklist Completed & Approved by CM to generate a IO

MANDATORY SF CHECK:Pixel Tracking Validated to confirm “GO” to sign IO

BUSINESS CONTROLSENSURING COMPLIANCE WITH BUSINESS RULES

HOW IT WORKSOUR OPERATIONAL PROCESS FLOW

INTERNAL USE ONLY

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KEY CONTACTSHOW TO GET SUPPORT

Pre-Sale Support: Campaign ManagersReach out to your campaign managers for pre-sale questions & support including project validation, proposals, IOs, & Tracking Code Development

Campaign Objectives: Campaign ManagersCMs will be the point of contact for project validating the performance campaign criteria have been met, create tracking codes, billing, and providing reports.

Product Manager: Kyle GrantKyle will be able to answer any product-related questions regarding product definition, pricing, options, or product integration.

Product Thought-Leaders: Claudia Ortiz Claudia can be available for strategic consultation, account reviews & specific questions.

OPERATIONAL OBJECTIVEPROVE OUR CAPABILITIES TO DRIVE PERFORMANCE

Our objective is to drive the lowest eCPA for our clients possible leveraging every potential tactic at our disposal. Our focus needs to be on advertiser performance and driving conversions rather than focusing on Mediative Margin.

We are pricing based on average CPM and therefore we can bid higher on high converting inventory, even higher than the sale CPM price, with the goal to average out lower than the CPM in the IO.

1. Add a New Advertiser in Bid Manager

2. Create Conversion Pixels in Bid Manager

3. Add/Upload Ad Creative

4. Create Insertion Order1. Set IO Name

2. Set Start & End Dates

3. Set Budget

4. Set Page URL

5. Create Line Items1. Set Targeting

2. Set Bids

3. Pick how to count Conversions

4. Assign Creative

6. Confirm campaign status

SETTING-UP CAMPAIGNS IN DBM

• vCPM dynamically changes a line item's bid based on the likeliness that an individual impression is going to perform well, such as lead to a click or conversion.

• Algorithm-based technology to assist in driving towards a targeted CPA

VARIABLE CPM (vCPM)PERFORMANCE-DRIVEN DYNAMIC BIDDING

Implement controls to ensure CPMs do not

exceed targets

Target ROI, CPC or CPC(We will not use CPC)

Prioritize Performance vs. Spend Targets

STANDARDIZED LINE ITEM TACTICS PERFORMANCE CAMPAIGN STRATEGY

Advertiser Objective

Conversion Definition

Campaign Strategy

Tactics

Remarketing

Channel Targeting

Audience 1st Party Data Targeting

Semantic & Contextual Targeting

Facebook Exchange

Lookalike Modelling

Dynamic Ads

Performance campaigns should test any tactic aligned to the overall campaign strategy. Performance will dictate which tactics are continued to be funded and others dropped.

Tactics may be used independently or in combination for maximum results

REMARKETING AUDIENCE DEVELOPMENTRetargeting pixels will need to come from Lotame with conversion pixels coming from DBM.

Request CTAX pixels from Data team breaking out each site section, as necessary, for detailed audience segmentation.

Data team will go into Lotame to ensure that the retargeting segment has been created and push that to DBM and Appnexus

Tags will be sent to client for Implementation

Data team will get confirmation pixel has been implemented

STANDARDIZED OPTIMIZATION FREQUENCYCADENCE OF IN-DEPTH CAMPAIGN CHECK-INS

Campaign Duration

Launch Date

24 Hrs

48 Hrs

25% of Duration

50% of Duration

75% of Duration

Final Report

Note: Longer duration campaigns should have a minimum of a weekly check-in on performance

Tactics to Optimize Performance Campaigns?

• Budget Alignment to Top Performing line Items• Audience Segment Performance Optimization• Dayparting (Time of Day & Day of Week)• Geotargeting• Ad Copy Performance (Ad Version & Size) Optimization• Ad Exchange Optimization• Site Blacklisting & Whitelisting• Segment Performance Analysis• Above vs. Below the fold Analysis• Device Type segmentation• Browser Type segmentation• Language segmentation• Reach & Frequency Analysis – Incremental CPA impact for each additional

impression• Conversion Funnel Abandonment

OPTIMIZATION TACTICS BEST PRACTICES

CLAUDIA

OPTIMIZATION CHECKLISTCheckpoint Responsible Checklist24 Hrs Programmatic Specialist Ensure all ads are serving in all line items

Review initial targeting & campaign settings are correct

48 Hrs Programmatic Specialist Review budget pacing & adjust bids Identify abnormal CTR (Ident. Click Fraud) Review campaign delivery against settings

25% Campaign Manager Line Item Performance Analysis Campaign Brand Safety Settings Analysis Audience Performance Review Review Budget allocation by Channel Geo-targeting Analysis Network Performance Analysis Add Category Exclusions Day Parting Analysis by TOD/Day of Week

50% Programmatic Specialist & Campaign Manager

Ad Copy Performance Line Item Performance Analysis Audience Performance Review Above the Fold vs. Below the Fold Analysis Frequency Capping Analysis Performance Trend Analysis & Optimization Review Strategy & Tactical Adjustment

75% Campaign Manager Line Item Performance Analysis Campaign Brand Safety Settings Analysis Audience Performance Review Review Budget allocation by Channel Geo-targeting Analysis Network Performance Analysis Add Category Exclusions Day Parting Analysis by TOD/Day of Week

EXAMPLE TO BE

VALIDATED

This checklist will be validated with the Programmatic team in the near future to ensure it is complete and aligns to best

practices.

How To Get Reports – TBD

REPORTING OVERVIEW

MEDIATIVE’S TECHNOLOGY OVERVIEWTHE TOOLS TO EXECUTING PERFORMANCE

Sales order

Campaign manageme

nt

Campaign delivery

Reporting

Opportunity is created in Salesforce with media plan

Campaign managers verify avails in Operative and

create sales order (or IO) to be signed.

Sales order is created. Campaign managers create

media plan

If opportunity reaches 75% closing prob. Sales order is

pushed to Operative

Ad Servers Programmatic RTBCampaigns delivered to the Mediative ad network (i.e.:publisher sites) are pushed to Google DFPP

Campaign report Finance/Billing report

Operative imports delivery data from dfp on a daily basis which can be viewed on a campaign, sales order or line item level directly from the Operative UI.

BIComplete delivery logs are extracted from DFP and AppNexus and inserted in the BI database on a daily basis.

Mobile

Semantic targeting Keyword contextual targeting

Audience data Demand-side platforms (DSP)

Ad Exchanges

Targeting helpers

APPENDIX

DEFINITIONSTerm DEFINITIONRTB

Real Time Bidding also refers to as Programmatic Buying is a new method of selling and buying online display advertising in real time one ad impression at a time

DSP A demand-side platform (DSP) is a system that allows buyers of digital advertising

inventory to manage multiple ad exchange and data exchange accounts through one interface. Real-time bidding for displaying online ads takes place within the ad exchanges, and by utilizing a DSP, marketers can manage their bids for the banners and the pricing for the data that they are layering on to target their audiences.

DMP

Data Management Platform which houses data from different sources and make it accessible through the ad exchange

Audience Targeting Audience Targeting, Interest-based targeting, data targeting is a type of online marketing where the user is identified with certain interests and then targeted by the relevant advertising message.

Retargeting Behavioral retargeting (also known as behavioral remarketing, or simply, retargeting) is a form of online targeted advertising by which online advertising is targeted to consumers based on their previous Internet actions, in situations where these actions did not result in a sale or conversion.

Remarketing See Retargeting

40

MarginPerformance

PRODUCT

WHY WE NEED A NEW CONSTRUCT

DISPLAY FOR PERFORMANCE

41

MarginPerformance

CPC CPM

PRODUCT

WHY WE NEED A NEW CONSTRUCT

DISPLAY FOR PERFORMANCE

42

MarginPerformance

CONVERSIONS% of

Spend

PRODUCT

WHY WE NEED A NEW CONSTRUCT

DISPLAY FOR PERFORMANCE

43

Margin

Performance

Mediative Network

RON

Data with RTB

Client Site Remarketing

HyLoMoCreative & UX Services

% of Spend

PRODUCT

WHY WE NEED A NEW CONSTRUCT

DISPLAY FOR PERFORMANCE