LEVERAGING XAXIS FOR TV REACH ENHANCEMENT THE PROGRAMMATIC AUDIENCE COMPANY LEVERAGING XAXIS FOR TV REACH ENHANCEMENT Confidential and proprietary. Copyright © 2016 Xaxis Incorporation. All rights reserved. Distribution without permission is prohibited.

Take a closer look at the reach of your target group over 90 % over 80 % 71 % All 26-45 about 30 % Considering the given target group All 26-45, monthly we can reach 71 % of it by having 400 GRPs. However, in that case we reach only about 30 % of Light TV viewers. Even if we doubled the TRPs we wouldn’t reach more than 50 % of Light TV viewers, which makes their reach extremely costly. 400 Source: ATO | Nielsen Admosphere | Based on all monthly TV campaigns in 11/2016

Not all people watch TV in the same manner Amongst the whole TV population, there is 46 % watching TV at least 3 hours a day in average. Those are called Heavy TV viewers. Medium TV viewers watch TV 2-3 hours a day and the ones that concerns us most are so called Light TV viewers. People who watch TV not even 2 hours a day. Heavy TV viewers 15+ Medium TV viewers 15+ Light TV viewers 15+ Non TV viewers 15+ They watch TV at least 3 hours a day in average. They watch TV 2 - 3 hours a day in average. They watch TV less than 2 hours a day in average. They don’t watch TV at all. 46 % 23 % 24 % 4 % 4 mil. 2 mil. 2,1 mil. 0,4 mil. Source: MML-TGI Q1+Q2 2016

Share of those being rather Light or even Non viewers grows The phenomenon of Light TV viewers was always there, as there were always people watching TV rather occasionally. However, it gains importance as the share of Light TV viewers grows in past years, especially amongst young audiences. Due to leveraging the capabilities of XAXIS and Turbine, we are now ready to face this challenge in a completely new way. Speaking of young audience (15-24 years), share of people watching TV less than two hours a day (in average) increased from 36 % in 2009 up to 42 % this year. Amongst the mid-age audience (26-45) still prevails the share of high TV viewers, but even in this target group the share of Light TV viewers grew up from 24 % up to 28 % in this year. The oldest audience aged from 46 to 65 is known for its highest TV consumption. Although the share of Light TV users does not grow rapidly, still one fifth of them belongs to that segment. Source: MML-TGI

These viewers are the most desired part of population The profile of Light TV viewers shows us, that we mostly deal with young people under 45 years regardless of sex. Their age determines almost all other characteristics – their above average education, active life-style and life roles they usually hold. Light TV viewers are recruited mostly from young age groups, especially from the youngest one within 15 and 24 years. In total, 68 % of Light TV viewers falls within the age group 15-44 years. Regarding the sex, although there is slight overbalance towards men, we see that the difference is rather negligible. When it comes to more detailed characteristic of Light TV viewers, they are more educated than the general population (52 % has at least GCE and 17 % has a university degree). Regarding their profile, it can be said that these people are mostly modern, independent, active, educated and family oriented. According to their life-style they can be labelled as either students, independent youth or young parents. 68% Source: MML-TGI Q1+Q2 2016

While their interest in TV falls, their usage of internet grows It is not a surprise, that Light TV users watch TV below average. On the other hand, they are the heaviest users of internet which has daily reach nearly 80 % amongst them, while TV lacks by more nearly 10 p.p. Due to their age, these people do not read a lot, at least in terms of dailies and magazines, and they are only slightly above average in terms of consuming Radio and OOH media. TV Light TV viewers are obviously the ones both being the least reached by TV on a daily basis and having the lowest affinity towards TV as a media type. While Light TV viewers have daily TV reach not even 70 % and its affinity is only 85, Heavy TV viewers have more than 90 % daily reach and affinity above 110. Internet Regarding the consumption of online media, there is not that huge difference between Light, Medium and Heavy TV viewers as in consumption of TV. However, it can be clearly seen that Light TV viewers are much heavier Internet users (daily reach nearly 80 % and affinity over 110) than other two groups. Other media Light TV users are below average readers of Dailies and Magazines and rather average listeners of Radio and consumers of OOH media. As the consumption of TV grows, consumption of Dailies grows as well. Regarding the OOH media, Medium TV viewers are its heaviest consumers as they are the most mobile segment of TV viewers. Source: MML-TGI Q1+Q2 2016

Thanks to Xaxis, we know how to find them on the internet Based on the linkage of data about panellists from ČNP and XAXIS DMP database, we are able to precisely identify people having a certain attribute such as being light TV viewers. Using look-a-like modelling, we can further project them into the rest of the cookies gathered in XAXIS DMP. LTW – L-a-L MODEL LTW – L-a-L MODEL Light TW - SEED NonW - SEED

And if we can’t reach enough of them in TV… When we go deeper into the structure of TV reach of a particular target group, we see that its reach is carried mostly by Heavy and Medium TV viewers, while Light TV users are hard to reach and contribute to the overall reach only moderately. Targeting those people by Xaxis can both increase the frequency of reach of those already reached by TV and compensate the missing reach of those who can not be reached in TV at all. over 90 % over 80 % 71 % All 26-45 about 30 % Considering the given target group All 26-45, monthly we can reach 71 % of it by having 400 GRPs. However, in that case we reach only about 30 % of Light TV viewers. Even if we doubled the TRPs we wouldn’t reach more than 50 % of Light TV viewers, which makes their reach extremely costly. 400 Source: ATO | Nielsen Admosphere | Based on all monthly TV campaigns in 11/2016

…we can do it by targeting them through Xaxis inventory… As the only thing that we know for sure about Non TV viewers is the fact, that they don’t watch TV at all, we can say that non of them saw the TV campaign. Therefore, every Non TV viewer reached by Xaxis represents another additional unit of reach. REACH POTENTIAL NON TV VIEWERS 6 % TG All 26-45 REACH POTENTIAL 4 % TG All 26-45 We know that the TV campaign reached 30 % of total number of Light TV viewers in population. It means that 30 % of those being present in Xaxis DMP was reached as well. However, rest of them represents additional reach delivered by Xaxis beyond the TV campaign. LIGHT TV VIEWERS

…which helps us to deliver reach of those unreachable people for reasonable price 71 % All 26-45 81 % All 26-45 71% 6% + 4% 71% + 2% 900 ths. impressions in Xaxis, using frequency capping at the level 1 With additional 366 ths. CZK in TV you can buy another 33 GRPs (considering CPP 10 ths. CZK) Considering CPT 360 CZK, you need additional 366 ths. CZK causing 10 p.p. of additional reach. These 33 TRPs cause the increase of overall reach by 2 p.p. Source: ATO | Nielsen Admosphere | Based on all monthly TV campaigns in 1-10 2016