Simon bailey velti mobile publishing masterclass, #mpublishing

1. Mobile Ad Exchange:
Transforming the mobile advertising
market for buyers and sellers
Simon Bailey
Director Business Development EMEA
12th April 2011
CONFIDENTIAL & PROPRIETARY

2. Velti: At-a-Glance
Global technology enabler of mobile marketing and advertising
campaigns for carriers, brands and advertising agencies
Brands & Agencies:
Executed 2,700 campaigns for 820 customers on five continents in 2010
Operators:
Customers include 8 of the top 10 and 13 of the top 20 mobile carriers
Media Inventory:
10+ billion monthly impressions. Platform reaches >2+ billion consumers
Company Background:
10-year operating history: 250+ experienced mobile engineers
Financials:
Public on the NASDAQ Exchange (VELT)
CONFIDENTIAL & PROPRIETARY 1

3. A Driving Force in Global Adoption of Mobile
Advertising and Marketing
CONFIDENTIAL & PROPRIETARY 2

4. What we do?
mGage software platform enables operators, brands, agencies and
media companies to execute mobile marketing and ad campaigns
Advertising Marketing Results
Reach Engage Convert Analyze Remarket
Mobile Media Ad Server/Ad
Site and App Builder Mobile Marketing Analytics CRM
Marketplace Router
 Ad Exchanges  Ad Serving  Mobile sites  Mobile coupons  Campaign  Profiling,
 Media research  Mediation Router  Landing Pages  Mobile commerce dashboards Segmentation
 Media planning  Mobile Apps  Mobile social media  Conversion  Loyalty
 70 templates Tracking  Cross-sell,
 Traditional media
Up-sell
Campaign planning and optimization
End-to-end campaign Global execution Optimization across full-scale
management of mobile media
CONFIDENTIAL & PROPRIETARY 3

5. Table of Contents
I. Mobile Ad Exchanges – Some numbers
II. What is an Ad Exchange?
III. The power of Real Time Bidding on Mobile
IV. How Exchanges fit into a Publishers Revenue Stack
V. Velti in the Mobile exchange eco system
CONFIDENTIAL & PROPRIETARY 4

6. Mobile Ad Exchange: Here to stay and available for mobile today
Forrester RTB Report Feb 2011
US Online Ad Exchange spend
Predicts 133% increase in RTB
2011
•$1.416 Billion
2010 (58% RTB)
•$733 million
2015
(48% RTB)
2010 •Mobile will become
the No. 1 screen for
advertising
Google
•50% of all display
Predicts: advertising targeting
audience will rely on
IAB Mobile •£83 Million Spent real-time bidding
2009
Display •Year on year growth
Spend 116% •Advertising spend
MobileSQUARED will increase 10x on
Predicts: Mobile within the EU
top 5 markets
IAB Mobile
Display •£37 Million Spent •Launches 1st Mobile
Spend Mobclix: RTB Ad Exchange
CONFIDENTIAL & PROPRIETARY 5

7. What is an Ad Exchange?
Ad exchanges are technology platforms that facilitate the bidded buying and selling of online media
advertising inventory from multiple ad networks*
2. Publisher sends ad 3. Mobclix platform alerts
request to Mobclix Publisher’s approved buyers
1. Visitor loads exchange with a $.75 (DSPs, agencies, Ad Networks)
App or mobile floor price* to ad unit’s spec, visitor profile,
site page and app/ web page context
I bid
$1.50
I bid
floor price (.75)
$1.25
Winning bid price
(1.25)
6. Visitors sees
4. Real-time auction!
creative from highest
5. Mobclix exchange Highest bidder wins and
bidder. Complete
sends the corresponding pays the 2nd highest bid
process takes only ~75
ad creative to Publisher rate ($1.25)
milliseconds
(if it beats the floor
price)
CONFIDENTIAL & PROPRIETARY 6

8. The power of Real Time Bidding on Mobile
 Targeting Capabilities for site:  Targeting Capabilities for Device:
 Site Name, domain, url  ID of device
 Category  IP address, country, state
 Keywords  Make, model and carrier, operating system
 Location – Lat and Long
 Targeting Capabilities for App:
 Name, Domain of app publisher  Targeting Capabilities for User:
 Category  Demographic, age, gender etc...
 Paid or Free? Number of Apps downloaded, Type  Any 3rd party targeting groups – EG High Tech User
Unique Audience
Age: 25-30 Average Session: 5min
Gender: Male Apps Downloaded: 18-24
Technology: Extensive App type: Games
Spending Power: 90
Demographic Location Usage Profile Device
+ + + =
CONFIDENTIAL & PROPRIETARY 7

9. How Exchanges fit into a Publishers Revenue Stack
Mobile Ad Revenue Stack
Exclusive Direct Sales:
Ad Campaigns
Indirect Sales:
Private
Directly Sold
/ Sponsorships Exchanges Public Exchanges
Guaranteed
Ad Campaigns
Link Directly Real time
to the Mgage optimisation of your Real-Time Bidding
Agency non-guaranteed
planning tool. inventory
Ad Network
Indirectly Sold
Optimisation for non
guaranteed inventory • Automate Direct • Optimise 25+ Ad • No Economic Risk
Campaigns Networks
• Automatic RFP • Manage Channel
• Full Control Conflicts
process • Full transparency
• Extend your • Deeper relationships
existing sales with Agencies
Spot Market Sales team.
(Real-Time Bidding) • Maintain full
control
CONFIDENTIAL & PROPRIETARY 8

10. Velti in the Mobile Ad Exchange eco system
Private Ad Exchanges.
25+ Ad Networks. 2 Billion + ads per month.
12,500+ Publishers. 70% of all Mobile Ads in
China run through
10 Billion Monthly Imps. CASEE.
CONFIDENTIAL & PROPRIETARY 9

11. Thank You
Simon Bailey
Director, Business Development EMEA
sbailey@velti.com
CONFIDENTIAL & PROPRIETARY 10