1. © 2015 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Adobe Marketing Insights & Operations (MIO) Mobile Advertising Opportunities Adobe Digital Index

2. © 2015 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Adobe Marketing Insights & Operations (MIO) Methodology & Overview 2 This report is based on global consumer behavior ranging from 2013 to 2015. It consists of the aggregated and anonymous data from sites gathered from Adobe Analytics and Adobe Media Optimizer  214+ billion Google and Yahoo! Bing ad impressions from retail and travel ads  201+ billion online video starts  100+ billion website and app visits *Adobe Data: (Mobile = Smartphone)

3. © 2015 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Adobe Marketing Insights & Operations (MIO) 3 There is a disconnect between the share of time that consumers spend engaged with mobile content and the share of ad dollars being allocated to support that content  How should advertisers approach closing the gap between mobile media consumption and mobile advertising spend? Advertising landscape

4. © 2015 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Adobe Marketing Insights & Operations (MIO) 4 The amount of spend marketers are allocating to mobile is catching up to the ad spend in other channels like desktop  Global mobile ad spend was up almost 50% YoY, whereas desktop ad spend was essentially flat during the same period  EMEA mobile ad spend was up 54% YoY Looking back to see where mobile ad spend has been

5. © 2015 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Adobe Marketing Insights & Operations (MIO) 5 Within the next two years, the share of mobile browsing will only continue to increase  Adobe Digital Index predicts that mobile browsing (share of visits) will surpass desktop browsing by Q4 2016 The mobile event horizon is coming

6. © 2015 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Adobe Marketing Insights & Operations (MIO) 6 Consumer attention is shifting away from TV and over to mobile screens  Mobile is more of a deliberate viewing experience, whereas TV is at times a secondary screen not garnering our attention  Larger screens and better connections are overcoming obstacles, pushing mobile to the forefront of content consumption  With technologies like TV recording devices and streaming services cutting out advertising, TV advertisers are having an increasingly difficult time getting a message to consumers  Consumers have added over 2 hours of media consumption over the past 5 years  This suggests “multistreaming”, particularly of TV as a background activity and mobile as a foreground activity Ad dollars will shift from TV to mobile… “The Future of TV Advertising is Mobile Video”

7. © 2015 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Adobe Marketing Insights & Operations (MIO) 7 Media & Entertainment and sports content already has a strong mobile presence  M&E and sports content has a mobile video viewing rate 16x higher than the viewing rate of content on other industry sites Industries that are reliant on building brand awareness and not focused on immediate digital transactions have a much higher video view rate than industries that thrive on digital transactions  The auto space is very reliant on creative story telling and has a video view rate almost 2x compared to the average industry M&E and sports programming is already mobile; others to follow

8. © 2015 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Adobe Marketing Insights & Operations (MIO) 8 The ratio of mobile ad starts-to-video start highlights consumer willingness to view mobile video ads  In Q1 2015, the mobile ad start ratio was almost 40% higher than desktop ad start ratio Put another way, in Q1 2015 for every video a consumer watched, he or she was exposed to 2.5 ads on mobile vs. 1.8 ads on desktop  Creatives can take advantage of sparse inventory to test a wide variety of treatments in order to optimize engagement and view thru. Simply cutting or repurposing a TV ad may not be the best tactic Mobile video ad ratio growth shows the direction of ad spend

9. © 2015 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Adobe Marketing Insights & Operations (MIO) Summary 9 According to data from the IAB, a gap exists between the amount of time consumers spend with content on mobile (24%) vs. the amount of the ad budget mobile gets (8%). The gap is slowly diminishing as global mobile ad spend was up almost 50% YoY, whereas desktop ad spend was essentially flat during the same period. While this growth in mobile ad spend is encouraging, marketers need to do better as the mobile “event horizon” is coming and Adobe Digital Index predicts that in Q4 2016/Q1 2017, visits from mobile to websites will exceed desktop visits. Marketers still have time to further develop and optimize their mobile ad strategy. But where will the increase in mobile ad spend come from? The natural assumption is that this gap (see first point) will be closed by moving print ad spend to mobile, but the data suggests that an increase in mobile ad spend will actually come from TV ad spend. Based on changing viewing habits, the future of TV advertising appears to be in mobile video. Industries that should pay particular attention to mobile video campaigns are those who engage in “top of the funnel” or awareness and brand-building advertising (i.e. those industry’s that don’t require an immediate digital transaction). Awareness-building industries include Media & Entertainment, Sports, Automotive, Consumer Packaged Goods and Internet & Telecom. Consumers appear to have a greater appetite for viewing video ads on a mobile device vs. on the desktop as in Q1 2015, mobile consumers were exposed to 2.5 ads per video vs. 1.8 ads per video on desktop. Marketers can take advantage of this trend by producing more mobile video to support the growth in mobile video viewing. Creatives should test a wide variety of mobile ad treatments in order to optimize engagement and view thru. Simply cutting or repurposing a TV ad may not be the best tactic.

10. © 2015 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. Adobe Marketing Insights & Operations (MIO)