1. 1 2011 in Digital: Transitioning To a Post-PC World

2. 2  Publishing Model  HTML only websites  Email – Text only  E-Commerce  Flat Content – Digitization of news, books, music and other media  Siloed Services – Search agents/shopping agents  SMS (Short Message Service) Collaboration Shift from flat “push publishing” web to creativity, information sharing and collaboration (social networks, blogs, wikis, etc.) Content Ownership – Users “own” the information MMS (Multimedia Messaging Service) Personalization Connection of siloed information to create more personal environments Social Media Sharing – Robust network of users sharing media across the globe Mobile Applications – Digital distribution of rich media and gaming applications Rich Mobile Platforms – Widespread adoption of smartphones “Intelligent Web” – People Recommendations automatically served based on user’s web habits Ubiquitous Connectivity – Widespread broadband adoption, mobile Internet access & devices Open Identity – Ability to seamlessly use one “screen name” to access the entire web Semantic Web – Ability of the internet to “understand” and respond with relevant response Ubiquitous Collaboration – Widespread and highly viral creative content collaboration between brands and consumers We Have Entered the Post-PC Era

3. 3 Before 2011 Began, Gaming & Entertainment was Reimagined with Xbox Kinect

4. 4 Q1: Smartphones Outship Feature Phones, Ushering in a New Era of Mobile

5. 5 Social Sharing (& Music) Drives Usage Up Mobile Search Grows 4-Fold Mobile Commerce Takes Off And Advertisers Follow…

6. 6 Mobile is More Human More Connected with always on, always on you access More Accessible with voice, motion and location awareness as user interface More Fun through social networking, music, video, gaming More Affordable with WiFi nearly ubiquitous and pricing tiers

7. 7 US Mobile Ad Spending to Reach $4B by 2015  Smartphones shift ad formats from messaging to rich media & video  Search sees strongest growth  Mobile enters global advertisers playbook in 2011  15M 3G subscribers in Russia (Q2 ‘11)  According to MTS Retail 2.8 million smartphones have been sold in Russia in H1 2011 (28% higher than in H1 2010.

8. 8 Mobile Mobilizes Commerce 2012

9. 9 Q2: Time Spent on Social Sites Surpasses Portals

10. Today… Social Media Cannot Be Ignored Social media accounts for 1 out of every 6 minutes spent online in the U.S. Source: The Network Effect: Facebook, Linkedin, Twitter & Tumblr Reach New Heights in May. comScore Media Metrix, June 2011. 10 © 2011. All rights reserved. VivaKi. Proprietary and Confidential.

11. 11 Russia is a Leader in Social Usage

12. 12 US Social Ad Spending to Reach $4B by 2012 eMarketer estimates that US ad revenues at social networking sites will exceed $3 billion this year Social networking sites will claim 10.8% of all US online ad spend this year (2011) and will garner 12.1% in 2012 Worldwide social network ad revenues will near $8 billion Facebook will represent >7% of total online revenues

13. 13 Valuing Social Media 2012  We know Social can play a strong role in engagement, branding and acquisition  But we need to invest more resources in understanding how it works in context with all media

14. 14 Q2: TV Universe Declines for the 1st Time Ever

15. 15 Video Drives Display Ad Spending to Surpass $20B by 2015  Online video leads growth – accounting for a third of all online spend by 2015 According to comScore, there have been 42.3 million users in Russia, who watched an online video They spend 12 hours and watch 101 videos a month on average. A18-34 adapting to on-demand video quickest

16. 16 100% professionally produced studio TV content that is repurposed for online viewing. Long Form TVProfessional Online Professionally produced short form TV and professionally produced online content Aggregated Content Publishers that aggregate content from multiple sources. COST SCALE Managing an Increasingly Complex Digital Video Marketplace Requires New Approaches

17. 17 Creating More Supply 2012 100+ Content Producers/Talent creating and curating channels January launch / Sept. upfront Can buy-out genres, channels or ROS – sold only thru YT 24+ hours of video is uploaded to YouTube every minute and 2+ billion videos are viewed every 24 hours.

18. 18 Q4: AOL + MSN +Yahoo!: Frenemies Join Forces

19. 19 The Buying Landscape Is Getting More Crowded

20. 20 Crowded Value Chain = CPM Leakage

21. 21 Creating Value for Clients & Partners 2012 Automating media buying with a focus on premium partners Leveraging data to create pinpoint accurate audiences Turning results into actionable insights Targeting Inventory Analytics Talent & Technology Dedicated expertise that exclusively focuses on a rapidly evolving & complex marketplace

22. 22 US Display Ad Spending to Near $15B in 2012 – 50% of Which Goes to the Big 5 eMarketer predicts US display ad spending to be $14.82 billion in 2012, representing 40% of all online media spend. Over half of that is captured by the Big 5: Facebook, Yahoo!, Google, Microsoft and AOL

23. 23 Global Growth Opportunity for Top 5 and Top 25 81% of Big 5 monthly uniques are international The Top 25…look beyond US borders for opportunity (Yandex, Mail.ru in top 25) 2012

24. 24 Create Content that Crosses Screens [YOUR AD HERE] [YOUR AD HERE] [YOUR AD HERE] 2012

25. 25 2012 73% growth in Internet users since ‘08 Second largest market in Europe Smartphone sales up 28% YAY Top 5 market for social network usage High video consumption, limited supply Strong growth by top local players (and increased investment by Top 5) Lead the Change

26. © 2011. All rights reserved. VivaKi. Proprietary and Confidential. 26 Thank You