1. 1 www.iab.org.nz representing NZ's fastest growing and exciting industry

2. Introduction Census of 35 major NZ media owners and agencies In conjunction with PricewaterhouseCoopers (PwC), the IAB has produced quarterly interactive advertising spend figures in NZ since 2007 As used by the Advertising Standards Authority (ASA), these figures are the most authoritative means of assessing the size of the interactive advertising market in NZ Data shown by: – General Display split out by Video and Ad Exchange Banner display by verticals i.e. Finance, Travel and Accommodation, Telecommunication – Search & Directories: paid search is a mixture of actual (agency spend) and estimated data (direct) and includes revenue from online directories – Classifieds: revenue from ads placed to buy or sell an item or service (does not include consumer Trade Me auctions) – Mobile: from general display or search engine listings viewed on mobile devices such as a smartphone or tablet – Social media: only reports agency spend from agency report contributors – this amount does NOT include direct and amounts from other media agencies in NZ and no estimation is included. This accounts for the small amount currently being reported www.iab.org.nz representing NZ's fastest growing and exciting industry 2

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4. Reported and Estimated Revenue Reported Revenue Actual revenue data is obtained directly from companies deriving revenue from the sale of interactive advertising Survey includes revenue submitted by 35 companies Aggregate amounts reported are rounded to the nearest $10,000 Based on information provided by contributors, approximately 78% of the data in this document is derived from participants whose underlying financial records have been, or will be, audited by an independent auditor Data submitted by participants is kept completely confidential and figures are only ever reported in an aggregated form Variance checks are performed on data submitted by participants for reasonableness in light of past submissions and general industry trends Expenditure is based on gross amounts charged to advertisers and inclusive of any applicable agency commissions Estimated Revenue The methodology used to estimate the Paid Search market was developed in consultation with leading New Zealand-based Search Engine Marketing agencies, Hitwise New Zealand and data submitted to PwC by those companies 4 www.iab.org.nz representing NZ's fastest growing and exciting industry

5. All growth percentages are “normalised” to exclude the effect of new contributors to percentage measures of industry growth and also to remove the effect of any previous contributors that have not provided figures for the current quarter For this reason, calculating percentages based on the dollar totals may not result in the same growth percentage figures This is due to totals including all reported revenues, while “normalised” percentages exclude contributions from new contributors made during the comparison period and/or previous contributions made by contributors not contributing in this quarter This approach is to ensure we provide both a true picture of industry growth and an accurate measure of total industry spend 5 www.iab.org.nz representing NZ's fastest growing and exciting industry Adjustments and like-for-like reporting

6. Q1 2015 Contributors 1.Ad2OneGroup 2.Adhub Ltd 3.Bauer Media Group 4.Denstu Aegis Network 5.Digital Marketing Initiative 6.Fairfax Media 7.Exponential 8.FIRST 9.GrownUps Ltd 10.GSL Promotus 11.iStart 12.Komli NZ 13.Localist 14.Mediacom 15.Mediaworks Interactive 16.Metservice 17.Mi9 (MSN, Daily Mail, Skype, Outlook, Bing and Ticketek) 18.Neo@Ogilvy New Zealand 19.NZME 20. Realestate.co.nz 21. Search Republic 22. SEEK NZ 23. SkyTV Network 24. SureFire Search 25. The Radio Network Ltd 26. Trade Me Ltd 27. TVNZ 28. Uprise Digital 29. VeNA 30. View New Zealand Ltd 31. Vivaki 32. Y&R 33. Yahoo Search and Marketing NZ 34. Yahoo! New Zealand Ltd 35. Yellow Pages 6 www.iab.org.nz representing NZ's fastest growing and exciting industry

7. Global Trends 2015 7 Global ad spend will grow 4.4% to reach US$544bn in 2015, and will accelerate to 5.3% growth in 2016 Online Video is the fastest growing ad category - forecast to grow at an average of 29% a year to reach US$23.3bn in 2017. More online video is being sold by programmatic buying Paid search to grow at an average rate of 14% a year to 2017 Since it began in the mid 1990s interactive advertising has principally risen at the expense of print. Between 2003 and 2013 the internet’s share of global advertising rose by 17 percentage points, while newspapers’ share fell 13 points and magazines’ share fell by 5 points Source: ZenithOptimedia; Adspend-forecasts-December-2014 www.iab.org.nz representing NZ's fastest growing and exciting industry

8. 2015 Q1 Executive Summary 8 www.iab.org.nz representing NZ's fastest growing and exciting industry Interactive Advertising grows by 53 percent in the March Quarter 2015 Interactive Advertising* continues to grow with the latest IAB/PwC Online Advertising Report noting that it generated $179.88 million in Q1, 2015, a 53 percent increase year on year. The Search and Directory market was the star performer for the March quarter, growing 91 percent year on year to reach $108 million. Mobile advertising continued its steady climb, generating $3.9 million in the quarter a year on year increase of 88%. The Report shows this growth has been driven by smartphones, with phone based advertising revenue increasing 110 percent year over year, while tablet revenue grew 34 percent in the same period. Overall mobile advertising expenditure now makes up 2% percent of total online advertising expenditure and presents a marketers with a fantastic opportunity to extend their brands’ reach in a largely uncluttered environment. A 34 percent lift in the General Display advertising category was fuelled by a healthy 39 percent lift in Video revenue. The big mover in this area, however, was Programmatic Advertising which surged by a massive 172% compared to Q1 2014. * Interactive Advertising: Advertising viewed on a desktop PC, laptop or mobile device and accessed via an internet connection, 3G, 4G or WIFI.

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27. Contacts Project Sponsor Chris Perree, Partner Mobile: +64-21-358-004 Email: chris.perree@nz.pwc.comchris.perree@nz.pwc.com Project Manager Wilson Kuah, Manager Mobile: +64-21-041-4935 Email: wilson.s.kuah@nz.pwc.comwilson.s.kuah@nz.pwc.com Project Analysts James Budd, Associate Email: james.j.budd@nz.pwc.comjames.j.budd@nz.pwc.com Nicholas Wykes, Associate Email: nicholas.x.wykes@nz.pwc.comnicholas.x.wykes@nz.pwc.com Salmaan Khan, Associate Email: salmaan.x.khan@nz.pwc.comsalmaan.x.khan@nz.pwc.com Jackie Chek, Associate Email: Jackie.y.chek@nz.pwc.com 27 www.iab.org.nz representing NZ's fastest growing and exciting industry IABNZ Executive CEO: Adrian Pickstock adrian.pickstock@iab.org.nzadrian.pickstock@iab.org.nz Member Services Manager: Chris Ogles chris@iab.org.nzchris@iab.org.nz Graphic Designer: Billie Charlton capandshoe@gmail.com capandshoe@gmail.com

28. 28 About PwC PwC (www.pwc.com) firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 158 countries with close to 169,000 people who are committed to delivering quality in assurance, tax and advisory services. "PwC" is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. For more information about PwC New Zealand and how they may be able to help you please visit www.pwc.co.nzwww.pwc.co.nz www.iab.org.nz representing NZ's fastest growing and exciting industry

29. Disclaimer This document has been prepared using information provided by contributing media companies to PwC. The firm has relied on the information provided as being complete and accurate at the time it was given. PwC’s analysis of the data provided by contributors, walkthroughs conducted and preparation of this document do not constitute an audit performed in accordance with New Zealand Auditing Standards. Accordingly, PwC does not express an audit opinion or other form of assurance with respect to the information in this document. PwC does not accept any responsibility for any reliance placed on this document by any person and hereby disclaims any liability for any loss or damage caused by errors or omissions, whether such errors or omissions resulted from negligence, accident or some other causes. PwC makes no representations about the analysis or application of the data. PwC has received a fee for the preparation of this document and takes responsibility for the independence of the research and analysis contained in this document. Please notify PwC of any errors or omissions identified in this document. Copyright Notice © Copyright Interactive Advertising Bureau New Zealand Inc, 2015. All rights reserved. Any companies using tables or charts or other information from this document for any purpose must attribute the source of the information used to this document. Full permission in writing must be sought before publishing parts or the full document. www.iab.org.nz representing NZ's fastest growing and exciting industry 29