PERFORMANCE MARKETING 101 Confidential and proprietary. Copyright © 2016 Xaxis Incorporation. All rights reserved. Distribution without permission is prohibited. XAXIS 101 SERIES

IN THE FUTURE, ALL DIGITAL MARKETING WILL BE CLASSIFIED AS “PERFORMANCE” IAB, Defining Performance Marketing in Today’s Digital Landscape

The intention of the campaign is to drive consumer action, as opposed to raise awareness The cause and effect between the advertising and consumer action can be clearly measured The buyer can optimize their buy in real or near real-time based on the measurement In many cases payment is made based on consumer action (this is not necessarily required if the other three criteria are met) WHAT EXACTLY IS PERFORMANCE MARKETING? 3 IAB, DEFINING PERFORMANCE MARKETING IN TODAY’S DIGITAL LANDSCAPE THE PROGRAMMATIC AUDIENCE COMPANY

The prerequisite = ability to measure outcomes TWO TYPES OF PERFORMANCE MARKETING PERFORMANCE OPTIMIZATION The ability to adjust the buy in real time, based on the effectiveness of the campaign in driving consumer action that makes it a performance campaign. PAY-FOR-PERFORMANCE The ability to measure and optimize with the option to pay only when that performance action occurs 4 THE PROGRAMMATIC AUDIENCE COMPANY IAB, DEFINING PERFORMANCE MARKETING IN TODAY’S DIGITAL LANDSCAPE

5 “Not all performance actions are considered equal, The closer the performance action is to the transaction, the more accountable the outcome” TRANSACTION IN-STORE VISITS CALLS LEAD FORMS REGISTRATIONS SMS CLICKS SOCIAL ENGAGEMENTS PRE-ROLL VIDEO VIEWS VIEWABLE IMPRESSIONS NATIVE OR CONTENT ENGAGEMENTS IAB, DEFINING PERFORMANCE MARKETING IN TODAY’S DIGITAL LANDSCAPE

BRANDING The ability to adjust the buy in real time, based on the effectiveness of the campaign in driving consumer action that makes it a performance campaign. PERFORMANCE MARKETING MORE VOLUME MORE VALUE Action/Intention Focused/Download Registered Lead/Purchase Qualified Researching Explicit Targeted Brand Awareness Unregistered View/Click Unqualified Browsing Implicit Reach CPM (COST PER THOUSAND) CPCV (COST PER COMPLETED VIEW) CPC (COST PER CLICK) CPC (COST PER LEAD) CPC (COST PER ACTION) PWC and IAB UK, The value of Online Performance Marketing Study vCPM (VIEWABLE CPM)

FRAUD IN PERFORMANCE MARKETING OF MARKETERS THINK FRAUD IS A SERIOUS PROBLEM IN PERFORMANCE MARKETING 7 THE PROGRAMMATIC AUDIENCE COMPANY PERFORMANCE MARKETING INSIDER SURVEY, FEBRUARY 2016 OF ADVERTISERS SAY THEY HAVE BEEN A VICTIM OF FRAUD 82% 72% 52% Of publishers do not trust affiliate networks 11% Of CPA Networks admit to asking publishers to commit fraud 66% Of advertisers do not trust affiliate networks 49% Of advertisers do not believe in fraud detection program (the lack of) TRUST In performance marketing

PROGRAMMATIC & PERFORMANCE MARKETING THE PROGRAMMATIC AUDIENCE COMPANY Confidential and proprietary. Copyright © 2016 Xaxis Incorporation. All rights reserved. Distribution without permission is prohibited.

PROGRAMMATIC & PERFORMANCE MARKETING WERE BORN FOR EACH OTHER WHY? PROGRAMMATIC SCALE DMP LOOKALIKE & RETARGETING ATTRIBUTION & MEASUREMENT ALGORITHMIC OPTIMIZATION IMPRESSION-LEVEL VALIDATION OUTCOME HISTORICAL DATA AUDIENCE & CLOSED LOOP DATA EHANCEMENT

Your Title Here OUTCOME OPEN EXCHANGES INVENTORY FORMATS: STANDARD DISPLAY, VIDEO, MOBILE WEB/APP ENGAGEMENT NATIVE & SOCIAL INVENTORY FORMATS: CONTENT RECOMMENDATION, OUTSTREAM, IN-FEED, IN-IMAGE, SOCIAL AND MOBILE NATIVE AUDIENCE & BRANDING PREMIUM INVENTORY FORMATS: STANDARD, RICH MEDIA, DISPLAY, DCO, IN-STREAM, PRE- ROLL, IN-APP/MOBILE WEB, RADIO, DIGITAL OUT OF HOME LEVERAGING PROGRAMMATIC FOR OUTCOME BASED MARKETING 10 THE PROGRAMMATIC AUDIENCE COMPANY PERFORMANCE RISK ADVERTISERXAXIS CAMPAIGN MODEL INSIGHTS FOCUSDELIVERY FOCUS GUARANTEED AUDIENCE ENGAGEMENT BASED GUARANTEED OUTCOMES

FROM SILO TO CROSS-VIEW 11 THE PROGRAMMATIC AUDIENCE COMPANY CROSS-VIEWING: Leveraging Xaxis propriety audiences across addressable, programmatic channels for cross-device targeting, measurement and attribution. Offers deep insight into true audience journeys and optimal media allocation. PERSONAL COMPUTER TRADITIONAL TV MOBILE DEVICE CONNECTED TV ONLINE VIDEO A SILOED VIEW OF MEDIA CHANNEL ONLY ALLOWS LINEAR CONVERSIONS CONVERSIONS TODAY ARE CROSS-PATH AND MULTI-PLATFORM.

12 ISOLATED MEDIA CHANNEL VIEW PROVIDES ONE DIMENTIONAL RESULTS LINEAR PERFORMANCE IS COMMODITIZED THE LACK OF CROSS-MEDIA AT ATTRIBUTION TRADIONALLY HANDICAPS DIGITAL MARKETERS TO PLAN BASED ON DEVICE AND NOT USER BEHAVIOR (OR THE ONE TASK, MULTI-DEVICES” NORM ACTUAL CAMPAIGN DESKTOP CHANNEL SEEMS VERY STRONG FROM A LINEAR ATTRIBUTION VIEW MOBILE CHANNEL IS LIKELY TO GET CUT OR REALLOCATED TO DESKTOP 84% CONVERSATION (DESKTOP) 16% CONVERSATION (MOBILE) 48.4% IMPRESSION (DESKTOP) 51.6% IMPRESSION (MOBILE) IAB, DEFINING PERFORMANCE MARKETING IN TODAY’S DIGITAL LANDSCAPE

13 CROSS-VIEWING REVEALS HIDDEN PERFORMANCE SINGLE DEVICE VIEW IS “BLINDING” ALMOST 60% OF CONVERSIONS FROM MOBILE IMMPRESSIONS ACTUALLY OCCURED ON DESKTOP. WITHOUT CROSS-VIEW, THIS ATTRIBUTION WOULD BE LOST! ACTUAL CAMPAIGN 84% CONVERSATION (DESKTOP) 16% CONVERSATION (MOBILE) 48.4% IMPRESSION (DESKTOP) 51.6% IMPRESSION (MOBILE) SOURCE: TURBINE CROSS-VIEW, ACTUAL CAMPAIGN DATA, SEPTEMBER 2015 COMPUTER: COMPUTER: 59.1% COMPUTER: 40.9% MOBILE: 5.7%

Confidential and proprietary. Copyright © 2016 Xaxis Incorporation. All rights reserved. Distribution without permission is prohibited. XAXIS 101 SERIES PERFORMANCE MARKETING 101