1. 242/102/49 0/51/59 181/172/166 Primary colors 248/152/29 PMS 172 PMS 137 PMS 546 PMS 407 251/206/146 202/227/233 141/129/123 Secondary colors 114/181/204 PMS 148 PMS 7458 PMS 7457 PMS 409 93/79/75 PMS 411 233/166/143 PMS 487 © 2010 MediaMind Technologies Inc. | All rights reserved Limor Nadav – Greenberg | Solution Specialist January 2011 Automatic Optimization

2. © 2010 MediaMind Technologies Inc. | All rights reserved ▸ Automatic Optimization concept ▸ Optimize how? ▸ Optimize according to what? ▸ Optimize where? ▸ Targeted Optimization ▸ Discussion ▸ Hands on Agenda

3. © 2010 MediaMind Technologies Inc. | All rights reserved Automatic Optimization Implement Switch Marketing video here. (Explains why use Auto Optimization?) Animation if needed Is “Fade - very fast”

4. © 2010 MediaMind Technologies Inc. | All rights reserved Automatic Optimization Concept Nike 6.0, Weight: 33.3% 2000 Clicks

5. © 2010 MediaMind Technologies Inc. | All rights reserved Remember Greatland Airlines…? They have several ads directed to each target audience: NY : WA: …

6. © 2010 MediaMind Technologies Inc. | All rights reserved Remember Joe and Greatland Airlines…? Joe wants to optimize the serving within each target audience, so that ads that get a higher rate of clicks will serve more impressions. NY : WA: … Let's see how the optimization mechanism works…

7. © 2010 MediaMind Technologies Inc. | All rights reserved Optimize How? ▸ At first – all impressions are equaly distributed among the ads That is the case until all ads pass the threshold and get the weight calculated for them based on their performance. ▸ Preformance of the ads is measured. ▸ The results of this comparison will dictate the serving of the remaining 90% of the impressions. ▸ After the first optimization - 10% of all impressions are equally distributed among all ads, and used for the next calculation.

8. © 2010 MediaMind Technologies Inc. | All rights reserved Optimize How? Two possible optimization methods:  Better ads play more  Winner takes it all

9. © 2010 MediaMind Technologies Inc. | All rights reserved Optimize How? ▸ Better ads play more Ads are served proportionately to their performance

10. © 2010 MediaMind Technologies Inc. | All rights reserved Optimize How? ▸ Winner takes it all The best performing ad wins all 90% of the remaining imp.  Here Joe will select “Better ads play more”

11. © 2010 MediaMind Technologies Inc. | All rights reserved Which option would you use and when?

12. © 2010 MediaMind Technologies Inc. | All rights reserved Optimize According to What?  You can now optimize based on two metrics together!  …and set their weights!  Joe will pick “Clicks” as the optimization metric

13. © 2010 MediaMind Technologies Inc. | All rights reserved Optimize According to What? Let's take an example: Ad A: (0.2%*80%) + (8%*20%) = 0.0176 Ad B: (0.3%*80%) + (4%*20%) = 0.0104 Ad A is the winning ad! Clicks rateDwell rate Ad A0.2%8% Ad B0.3%4%

14. © 2010 MediaMind Technologies Inc. | All rights reserved Optimize According to What? Available Options:  New optimization metric: Dwell Rate  The user will be able to select multiple custom interactions and multiple conversions.

15. © 2010 MediaMind Technologies Inc. | All rights reserved Optimize Where?  Users will now be able to optimize across all placements in a certain Delivery Group!  Useful when there is no real difference between the audiences of different sites.  This will make the optimized serving start faster (this is especially useful when the campaign is targeted). Joe will choose “Entire Delivery Group”

16. © 2010 MediaMind Technologies Inc. | All rights reserved Optimization Cross Placements The user will be able to choose between optimizing the ads according to data that is gathered in the specific placement or the whole Delivery Group. Ad Group Yahoo MSN A B A1 B1 A2 B2 Clicks= 2000 Clicks= 500 Clicks= 2000 Clicks= 5000 Clicks= 4000 Clicks= 5500 90% 10% 90% 10% * We are assuming both ads got the same number of impressions

17. © 2010 MediaMind Technologies Inc. | All rights reserved Optimization Cross Placements The user will be able to choose between optimizing the ads according to data that is gathered in the specific placement or the whole Delivery Group. Ad Group Yahoo MSN A B A1 B1 A2 B2 Clicks= 2000 Clicks= 500 Clicks= 2000 Clicks= 5000 90% 10% 90% 10% * We are assuming both ads got the same number of impressions

18. © 2010 MediaMind Technologies Inc. | All rights reserved Algorithm Revised Process is initiated every 2 hours. Have all ads reached their threshold? Calculate ads performance Assign new weights Start to collect new data Yes Ads keep serving according to their current weight. No Threshold: Is set according to the selected optimization metric. Set per ad. Threshold: Is set according to the selected optimization metric. Set per ad.

19. © 2010 MediaMind Technologies Inc. | All rights reserved Coming up soon…Targeted Optimization Available for the following types: Geo Site Keywords

20. © 2010 MediaMind Technologies Inc. | All rights reserved Play Time MM Reach Media Award goes to… Which ad did you like best? Display Ad

21. © 2010 MediaMind Technologies Inc. | All rights reserved Few Notes… When using automatic optimization:  The delivery group can contain only one instance of each master ad.  You cannot create sub groups.  However, you will be able to create time-based groups with automatic optimization within groups.

22. © 2010 MediaMind Technologies Inc. | All rights reserved Discussion When would you recommend that the advertiser use targeting, and when would you recommend using Targeted Optimization?

23. © 2010 MediaMind Technologies Inc. | All rights reserved Hands On

24. © 2010 MediaMind Technologies Inc. | All rights reserved Thank you!

25. © 2010 MediaMind Technologies Inc. | All rights reserved Appendix What is the threshold for initiating optimized serving? * General rule: the impressions threshold is a function of the optimization metric selected. The lower its expected rate is – the higher the number of minimum impressions it will require. MetricExpected ValueMin Threshold (actions)(OR) Min Impressions Clicks0.1%-0.3%54,000 Interactions0.5%-15%5797 Specific Interaction0.1%-15%54,000 Dwell2%-15%5196 Conversion0.01%-2%54,000 Specific Conversion0.01%-2%54,000

26. © 2010 MediaMind Technologies Inc. | All rights reserved Appendix What happens when a new ad is added to the Delivery Group? * The threshold of impressions is a fixed number that is set according to the metric the user has selected to optimize according to. In case the ad has acquired 5 events of the specific metric before reaching the number of impressions, it will be considered as if it has passed the threshold. StepDetailsRate of impressions served 1 The user will create a delivery group containing ads and define the optimization settings for it. The ads will be served evenly until each of the ads will pass the threshold of impressions (*). 10% of imp. Ad A – 5% Ad B – 5% 90% of imp. Ad A – 45% Ad B – 45% 2 Once all ads have passed the threshold, they would get the appropriate weights, according to their performance. If the optimization method is “Winner takes it all” – then only the best one will be served. (On the right - example for “Winner takes it all”). 10% of imp. Ad A – 5% Ad B – 5% 90% of imp. Ad A – 90% Ad B – 0% 3 In case a new ad is added to the delivery group, it will cause all of the ads to be served evenly. Once the new ad passes the threshold, the optimization process would be triggered and the weight of the ads would be recalculated. No performance data would be lost for the other ads that were already optimized. 10% of imp. Ad A – 3.3% Ad B – 3.3% Ad C – 3.3% 90% of imp Ad A – 60% Ad B – 0% Ad C – 30% 4Once the new ad passes the threshold, it would get its weight according to its performance. 10% of imp. Ad A – 3.3% Ad B – 3.3% Ad C – 3.3% 90% of imp Ad A – 90% Ad B – 0% Ad C – 0%