Supply continues to skew toward digital environments - most notably mobile & multimedia devices. The buy side is catching up with digital ad spend surpassing TV in 2017 & digital video predicted to see significant growth. Industry changes (i.e. death of flash, standardization) favorable to promote advertising revenue growth across mobile & CTV environments.

1. STATE OF VIDEO Mobile and Connected Devices

2. Agenda
• SpotX – Who are we?
• What is affecting the video supply side?
• How is the buy side adapting/evolving?
• Challenges in Video Advertising?
2

3. • Holistic video monetization platform for
publishers
• Founded in 2007, 350+ employees globally
• First to market with video RTB in 2010
• Majority stake investment from RTL Group in
2014
• Integrated with 60+ DSPs via OpenRTB – 38 are
Deal ID compliant
Powering 600+ Publishers
7+ billion ad decisions per day
Reaching 600+ million unique users every month
Serving impressions in 190+ countries

4. 4
0:00
1:12
2:24
3:36
4:48
6:00
2011 2012 2013 2014 2015
Digital
TV
Radio
Print
Hrs:mins
Average Time Spent per Day with Major Media by US Adults
*Source: eMarketer & Pacific Crest, MediaPost
Supply Landscape is Shifting As Consumers
Spend More Time With Digital

5. 5
In 2015, 4.9 million
households that once
paid for TV services no
longer do, a jump of
10.9% over the last year
*Source: eMarketer & Pacific Crest
People are Cutting Ties (and Cords) with
Cable TV Providers

6. Shifting Audiences – Time Spent
6
To compare time spent -
normalized Nielsen Total
Audience Report across 4 media
channels into Cumulative
Engagement Hours:
• Live + DVR Time shifted
• Multimedia Devices (Roku,
Apple TV etc)
• Video on a PC
• Video on a Smartphone
Sources: Nielsen, Total Audience Report, Q1 & Q, 2016

7. Shifting Audience - Demographics
7
While shifts may
seem significant (e.g.
745mil monthly TV
engagement hours
among the under -25
population) TV still
represents 7.2 billion
monthly engagement
hours among this
population
Sources: Nielsen, Total Audience Report, Q1 & Q, 2016

8. CTV is Increasingly Mainstream
Connected TV adoption has been steadily on the rise driven by the widespread availability of web-
enabled televisions and a generation of inexpensive plug-in and set-top extensions
By 2018 over 75% of US households will have a Connected TV
Percentage of households with connected devices
8
55% gaming console 26% connected TV31% multi-media device
*Source: eMarketer, IAB and Digiday

9. 9
Mobile & CTV Opportunity

10. How is the buy side
evolving?
10

11. Digital Ad Spend to Surpass TV in 2017
11
• Total digital ad spending
will increase 15.4% in
2016
• Mobile ad spending will
grow 38.0% to $43.60 bil
• Mobile represents 63.4%
of total digital ad
spending in the US this
year.
Source: eMarketer Marhc 2016

12. 2015 2016 2020
Non-
programmatic
Programmatic
12Source: MAGNA GLOBAL
The global programmatic market penetration will grow from 35% in 2015, to 57% in 2020
2015 2016 2020
Non-
Programmatic
Programmatic
27
27
31
15
42
19
65% 59%
43%
35% 41%
57%
Global Programmatic Penetration (%)Global Programmatic Spend ($bn)
Growth of Programmatic

13. Why Private Marketplaces?
Buyers
• Increased transparency and
control
• Reduced risk
• Access to relevant & targeted
audience
Sellers/Publishers
• Handpick which buyers can
access the private exchange =
control and exclusivity
• Higher priced campaigns,
increased fill
• Power to leverage audience
data (e.g. 1st party) to enhance
inventory value and increase
CPMs
13
At SpotX - Q4 2015 to Q3 2016,
PMP campaigns grew from 38%
to 49%

14. Curated Marketplaces
14
• Source and aggregate
premium supply into
inventory packages
• More efficient with with
Deal ID across multiple
publishers
• Pubs have complete
control against pricing,
targeting, and segmenting

15. Curated Marketplaces
15
• High participation from buyers
– billing & targeting efficiencies
• Pre-filters premium supply
packages to buyers (Highly
Viewable, Vertical, Audience
etc)
• Publishers able to command
CPMs 2X greater on Curated
Marketplaces than OMP

16. Challenges in Video?
16

17. Challenges facing Video
17
Death of Flash
• Browsers will stop supporting flash
• Majority of OMP creative still flash
based
Slow adoption of VPAID 2.0
standard
• Popular given ability to support
interactivity, viewability & fraud
detection

18. Challenges facing Video
18
Ad Blocking
• Growing adoption & Revenue Impact
• Publisher Solutions (SSAI, Blocking
Content)
Standardization
• Some environments don’t support cookies
& Device ID
• SpotX initiative to standardize Bundle ID &
Device Type across Connected TVs

19. Summary
19
• Supply continues to skew toward digital environments - most notably
mobile & multimedia devices
• The buy side is catching up with digital ad spend surpassing TV in
2017 & digital video predicted to see significant growth
• Industry changes (i.e. death of flash, standardization) favorable to
promote advertising revenue growth across mobile & CTV
environments
Questions?