Opera Software

OSLO! NYC! //////////////////

CAPITAL MARKETS DAY 2015

Mahi de Silva CEO, Opera Mediaworks

EYEBALLS SHIFT TO MOBILE

0 100 200 300 400 500 600

Indonesia

Brazil

United States

South Africa

Russian Federation

United Kingdom

Australia

Mexico

India

Germany

Canada

France

Daily Distribution of Screen-Viewing Minutes

TV Desktop Mobile

45% of screen time

is mobile

Source: Milward Brown Ad Reaction

SHIFT OF “SCREEN” AD DOLLARS TO MOBILE

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

2014 2015 2016 2017

Global Ad Revenue by Media Type (in Billions)

TV Desktop Mobile

Source: eMarketer, Zenith Optimedia

MOBILE IS GROWING FASTER…

1% 2%

8%

35%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Other TV Desktop Mobile

Global Ad Revenue CAGR 2014-2017 by Media Type

Source: eMarketer, Zenith Optimedia

MOBILE VIDEO ADS GROWING FASTEST “In terms of mobile ad types, video will show the highest growth – with the category being driven by tablets and growth in tablet ownership.” - Gartner, 2014

$0.72

$1.54

$2.63

$3.94

$5.09

$6.11

166.5%

113.0%

70.4%

50.2%

29.3% 20.2% 0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

180.0%

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2013 2014 2015 2016 2017 2018

US Mobile Video Ad Spending in Billions (2013-2018)

Mobile Video Ad Spend (Billions) YOY Growth

Source: eMarketer

MOBILE APPS HAVE NOW BECOME OUR FIRST-SCREEN EACH CONSUMER HAS A UNIQUE APP DNA & SET OF INTERESTS

ENABLING RESULTS DRIVEN MARKETING

DATA SOURCES EXPANDING DAILY

Real-­‐Time  Beacon  Real-­‐Time  Beacon  Real-­‐Time  Beacon  

THE RESULT? A FULL VIEW OF A CONSUMER

MEET LUCY

AT&T

NYC

HHI $85K

Frequent Traveler

TARGET THE RIGHT CONSUMER AT THE RIGHT TIME

Data

EXPANDING TO NEW ATTRACTIVE GEOGRAPHIES

AD IMPLEMENTATIONS FOR OPERA PRODUCTS

Opera Mediaworks is the Largest Mobile Ad Platform in the World

We enable the biggest marketplace and the highest quality ad experiences

between publishers and advertisers.

OPERA IS A MARKET MAKER

Publishers Advertisers

1B+ Unique Consumers / Month

100B+ Ad Requests / Month

90% Ad Age Top 100

18/25 Top Global Media Companies

MOBILE VIDEO ADVERTISING DRIVING OMW GROWTH

Traditional ad products still growing nicely, but video is the key driver of revenue growth.

91% 118%

9%

120%

0%

50%

100%

150%

200%

250%

300%

Q4 2013 Q4 2014

Q4 2013 vs. Q4 2014 YoY Revenue Growth, Video vs. Non-Video

Non-Video Video

50.4%

49.6%

Source: Opera Mediaworks

ADVERTISING VALUE CHAIN

OUR SUPPLY-SIDE DIFFERENTIATION

-  Manage and serve direct-sold campaigns -  1st party & 3rd party data and audience management -  Best in class rich-media and video advertising tech -  Mediate 3rd party ads

-  Programmatic & private marketplaces -  Yield optimization & revenue assurance -  Back office integration

The platform chosen by more premium publishers…

OUR DEMAND-SIDE DIFFERENTIATION

Delivering the highest quality ad experiences at scale -  Brand safe & site specific -  Channel buys -  Audience segments -  Early session impressions -  Best in class rich-media and video formats -  End-to-end tracking & reporting -  CRM support

INNOVATION TIMELINE

2008 2010 2012 2013 2014 2015

400MM+ 1B+

Will Kassoy CMO, Opera Mediaworks

NATIVE APP CONSUMPTION NOW BIGGER THAN PC

Source: Nielsen, AdColony. “Mobile Video: A Crucial Component of the Marketing Mix.” May 2013

Last year was the first year where mobile in-app consumption surpassed desktop consumption.

SMARTPHONES ARE CONSTANT, TABLETS ARE THE NEW PRIMETIME

Source: ComScore

TIME SPENT ON MOBILE

Source: Flurry

70%+

CAPITALIZE ON CONSUMER STATE OF MIND

Need Want

NIELSEN 3-SCREEN AD EFFECTIVENESS

78%

43%

27% 29%

16%

47%

17% 12% 6% 12%

39%

21%

11% 14% 8%

General Recall Brand Recall Message Recall Ad Favorability Retail Intent

Source: Nielsen, AdColony. “Mobile Video: A Crucial Component of the Marketing Mix.” May 2013

Major Brand Advertiser 3-screen video campaign test

Brand’s Ad (via Opera Mediaworks’ Mobile Video)

Brand’s Concurrent TV Campaign :30s

Category’s Overall Online Video Ad Norm

Category’s Retail Intent TV Ad Norm

Instant Play Mobile Video vs. TV & Online Video

Bill Bernbach

“If you know what you stand for, people will either be for you or against you. If you don’t know what you stand for, no one will be for you and no one will be against you.”

Opera Mediaworks is the first mobile ad platform built for brands, delivering breakthrough marketing at scale.

Our technology powers the biggest publishers in the world, enabling marketers to convey the highest quality ad experiences

to more people in more places when it matters most.

MOBILE. IT’S WHAT WE DO.

•  Global Reach & Scale: Opera Mediaworks is the Largest Independent Mobile Ad Platform

•  Mobile-First: 100% Focus and Dedication to Mobile From the Beginning

•  Effective Targeting: Leverage Accurate Data to Reach and Impact the Right Audience

•  Proven Results: Drive Engagement, Action & Lift in Key Brand Metrics

•  Working with 90% of the AdAge Top 100: Partnering with Top Brands in the World

A PLATFORM BUILT FOR BRANDS

Delivering breakthrough marketing and innovation, fueled by three unique pillars:

Proprietary Technology

Innovative Creative

Premium Environments

DIVING DEEPER INTO THE THREE KEY PILLARS

Proprietary Technology

•  Highest quality ad experiences

•  Instant-PlayTM technology

•  Industry’s best ad serving & optimization technology

Premium Environments

•  18 of 25 top media publishers in the world

•  85% of Top Grossing (Apple/Google Play)

•  Effective targeting methods

•  Right context & state of mind

Innovative Creative

•  Full mobile creative suite, including highest quality video

•  In house global creative team

•  Award-winning executions

MARKETPLACE MOMENTUM

MARKETPLACE MOMENTUM

“Opera Mediaworks…is on a roll…one of the biggest mobile ad platforms in the country.”

-

MARKETPLACE MOMENTUM

“As video consumption continues to grow on mobile, leading brands… are increasingly funneling big bucks into mobile video. [This] positions Opera Mediaworks for a role in this quickly growing market.” - Mobile Marketer

Opera Mediaworks Industry-Recognition & Awards

�  

David Kurtz SVP Product Strategy, Opera Mediaworks

COMPREHENSIVE PUBLISHER SOLUTION

•  Powering Direct Sales

•  Monetization & Mediation

•  Programmatic Tools •  In-App Purchases & Cross-

Promotion

37.2%

32.6%

12.8%

13.9%

3.5%

Time Spent in Mobile Apps

Gaming Social

Entertainment & News Utilities & Productivity

Others

Gaming and feed-based

environments, such as

Entertainment, News, and

Sports represent

50% of time spent on mobile devices.

Source: Flurry

37.2%

32.6%

12.8%

13.9%

3.5%

Time Spent in Mobile Apps

Gaming Social

Entertainment & News Utilities & Productivity

Others

Gaming and feed-based

environments, such as

Entertainment, News, and

Sports represent

50% of time spent on mobile devices.

Source: Flurry

INSTANT-FEED™ VIDEO INSTANT-FEED™ VIDEO

•  Native, in-app placement in feeds

•  Auto-plays instantly when post scrolls into view; pauses when out of view

•  Tap to expand to full-screen

•  Drive post-view engagement via video end card (when video is full screen)

•  User can toggle volume on/off

BIG DATA SIGNALS

DAILY ANALYSIS

•  175 billion+ session events with 50+ different metrics each

•  400+ TBs of compressed data

•  100 million+ app install events

•  15,000,000+ ad engagements, over 70,000,000 total data points

DYNAMIC BID PRICING

•  Adjust bids according to predicted audience conversion rate

•  MoM UA Rev. Increase: +20%

•  MoM Efficiency Increase: +21%

Programmatic represents

45% of all digital ad

spend, much of the

growth coming from the

mobile channel.

Source: eMarketer

Opera Mediaworks’ Premium Mobile-First Marketplace

Efficiency

•  Automated buying

•  Impression-level bidding

•  Target using DSP data & OMW data

Scale

•  1B+ monthly uniques worldwide

•  900M+ impressions served per day

•  Top mobile apps & sites in the world

Quality

•  Private access

•  Early session impressions

•  Access to best-in-class ad products

INTRODUCING…

PUSHING CREATIVE BOUNDARIES

We can do better.

Mike Owen EVP North American Sales, Opera Mediaworks

OUR BUSINESS: BRAND AND PERFORMANCE

DELIVERING A TV-LIKE EXPERIENCE IN THE PALM OF YOUR HAND

•  Video consumption is moving to mobile–50% of people watch more than 20+ minutes of video weekly

•  From quick-viewing to co-viewing, consumers are turning to their devices for entertainment

•  Content and advertising need to be premium

•  The only place to get access to the highest quality mobile video ads is through Opera Mediaworks

Source: eMarketer

WORKING WITH THE BEST & EXPANDING SALESFORCE

of the Top Grossing

85% of the Ad Age Top 100

90% Size of Sales Team

120+

#1 MOBILE VIDEO ADVERTISING PARTNER

Supersonic Vungle Tapjoy Applifier Google AppLovin Chartboost AdColony Facebook

A TOP GLOBAL PLATFORM FOR APP INSTALLS AT SCALE

AdColony is rated 3.5x higher than Google for providing app installs at scale

Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

“Who are your Top 3 sources of driving user acquisition at SCALE?”

SUPER BOWL HIGHLIGHTS – FEBRUARY 1-2, 2015

•  Opera Mediaworks partnered with 2 of 3 Super Bowl app advertisers to drive conversions (installs) on mobile

•  Super Bowl metrics: ü  14MM+ completed video views

ü  10’s of thousands of installs

ü  40M+ YouTube views

"We've been extremely pleased having AdColony as a trusted partner in driving user

acquisition at quality and scale. Their support and service is unparalleled and this has been

true since we started the relationship over 3 years ago. Quality, innovation, and results

are all things we have come to expect from the entire team at AdColony."

Jimmy Lee Media Lead, Supercell

BRANDING COMMERCE

ENGAGEMENT EARNED MEDIA

Instant-FeedTM HD Native Video

•  Announced in March 2014

•  Democratizes native video to the rest

of the mobile ecosystem

•  Brands can now reach consumers with

native video ads in environments

previously dominated by display

"The in-feed autoplay video format is coming…[and] AdColony beat Facebook to the punch.” - Steve Smith, Journalist

NEED FOR A MOBILE-FIRST MINDSET / NATIVE VIDEO FUND

•  Partner with brands and agencies to revolutionize the mobile creative process

•  Create mobile-first, short-form video based on data-driven best practices

NATIVE VIDEO FUND: MAKING HEADLINES

•  ADAGE: “Brands have to figure out how to get people's attention on smaller screens.” - Tim Peterson, journalist

•  ADWEEK: “…the creative was developed to be watched in eight to 10 seconds…the sweet spot for mobile video.” - Lauren Johnson, journalist

“Opera Mediaworks' Fund enables us to reshape this process, not just for creation of

video assets for mobile, but to help drive the necessary education and shift in mindset to

properly approach this space.”

Adam Shlachter Chief Investment Officer, Digitas

CONCLUDING THOUGHTS

The MOBILE category is exploding we are at the very beginning of the biggest platform transition in history (expected to be 10X size of PC desktop)

We are uniquely positioned to enable the broad mobile ecosystem (70%+ that is not social) with the highest quality ad experiences in the world.

Towering strength is Video

50%+ of our revenue, category with the fastest growth.  No one else has Instant Play Technology nor delivering TV-quality experience at scale

Market leading innovation - combining technology and creativity Powering the biggest brands around the world

Diversified and balanced business between Brand and Performance Advertising that is global in scale

Q & A