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DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

AUGUST8,2016

TRIVVER: THE NEW PLATFORM THAT PUTS ADVERTISING INTO VIRTUAL REALITY

WerecentlyhadaconferencecallwithJoelLaMontagne,thefounderofTrivver.Thecompanyisbuildingatechnologythatallows brands to bid for advertising opportunities andadvertise their products on multiple 3D and 2D digitalplatforms, such as mobile, web, virtual reality (VR) andaugmented reality (AR) platforms. In this report, we discusshow brands will advertise in the future and how Trivver’s

technologywillhelpthemcapturethemarket.

MARKETPOTENTIAL

Juniper Research estimates that the totalvalue of digital advertising revenue willdoubleby2020, reaching$285billion,witha growing programmatic channel withindigital. Magna Global forecasts thatprogrammatic advertising alone willgenerate $32 billion in revenue in 2017.Whilecompaniesareclearlydevotingmoredollars to digital marketing, they arecurrently mostly investing in 2Denvironments through the Google andFacebook platforms. Combined, these twoplatforms accounted for 75% of all newonline ad spending in 2015, according toMaryMeeker’s2016InternetTrendsreport.Yet neither Google nor Facebook hasreleased a solution for adverting in 3Denvironments, such as VR and AR, and thequestion for brands is how they canleveragethegrowthof3Dmedia.

THECHALLENGE

Because 3D environments are immersive,there is a problem with using traditionaldigitaladvertisingmethods,suchaspop-upads,withinthem:thesekindsofadsaretoointrusive for the consumer/user. Apple hasrejected disruptive ads for precisely thisreason. So, 3Dadvertisingwill likely evolveinto the placement, within VR, of brandedobjects that become native to the user’senvironment. These placed objects willfunction much like product placements inmoviesdo.Thechallengeisthatthistypeofadvertisingisverycostly,asadsneedtobedevelopedforeachindividualapplication.So,3Dadvertiserswillnotbeabletoenjoythesamecross-platformreachthatcancurrentlybeachievedthroughprogrammaticads.

CompanyBackground

TrivverwasfoundedbyJoelLaMontagne,CEO,andC.LawrenceGreaves,Co-CEO.Thesoftlaunchoftheplatformisscheduledforthefourthquarterof2016andthefulllaunchforthesecondquarterof2017.Atpresent,Trivverownsonepatent,andfivemorearependingforthedifferentfacetsofthecompany’s3Dinteractiveadvertising;theseincludepredictiveanalyticsandaprogrammaticadexchangeplatformfordigitalads.SeeTrivver.com

TheTeam

JoelLaMontagne,FounderandCEO,isanactivememberoftheInteractiveAdvertisingBureau(IAB)andtheDigitalAnalyticsAssociation(DAA)workingoncreatingnewstandardsfor3D/VRprogrammaticdigitaladsthataredeliveredandmeasuredacrossallscreenswithouttheuseofcookietracking.LaMontagnehasmultiplesoftwarepatentspertainingto3D/VRdigitaladvertising.

C.LawrenceGreaves,Co-FounderandCo-CEOisanentrepreneur,investorandboardadvisor.Hehasheldrolesinboutiqueadvisoryfirmsandlargenationalconsultingfirms.Heisalsoapassionatephilanthropist,ashareholderofvarioushighgrowthtechbusinessesandanactiveventureinvestor.

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DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

AUGUST8,2016

TRIVVER’SSOLUTION

Trivver’s value proposition is to solve the challenges associatedwith 3D advertising bycreatingastandardwayforcompaniestoadvertiseacrossanydigitalenvironment.Thecompany has developed 3D, interactive smart objects that can be placed into onlinegames,VRRealEstate,VRStores,digitalvideos,digitalTVcontentormobileapps.Thesesmart objects can be branded products or engagement items. The company has alsocreated an ad exchange that allows advertisers and developers to trade these smartobjectsandauserapp,theTrivverapp,whichallowstheconsumertostore,navigateandmanageadcontent.

Behindthescenes,Trivver’stechnologypersonalizesappsandgamingenvironmentswithbrandedobjectsthatarerelevanttotheconsumer,whileprovidingreal-timeanalyticsonmetricssuchasengagementandconversiontotheclient.Forcompanies,theexperienceofadvertisingviaTrivverwillbesimilartobuyingandsellingadsonsomeoftheexistingbiddingplatforms.Butfortheconsumers,theexperiencewillbecompletelydifferentasitwill knock down existing silos. Theywill be able to see products of interest to themacrossapplicationsandplatformsandinimmersiveenvironments.

HOWITWORKSFORBRANDS

Below,weoutlinetheprocessforbrandstoleverageTrivver’s3Dadvertisingsolutioninorder to better target the endmarket.

Bidding: Digital publishers list their3D generic content to be replacedby branded items on the adexchange, and brands then bid ontheadvertisingopportunity.

Product placement: The product isdisplayed in the immersiveenvironment and appears in theconsumer’ssmarttab,aninteractivescreen that houses content allbrands have placed in the viewer’senvironment. The smart tab allowstheconsumertolearnmoreaboutabrand, download discount couponsand see shop locations; theinformation is presented in a non-intrusiveway.

Targeting and predictive analytics:Advertisers use analytics to bettertarget their audience, putting theadsthataremostapplicableinfrontthe consumer, based on thatconsumer’s actions, in real time.Advertisers are provided withanalytics reports on viewabilitymetrics, user engagement metrics

Smartobjectplacedinvirtualreality

Smarttabdisplaysinformationonproducts

Source:Trivver

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DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

AUGUST8,2016

and user data (behavioral patterns and psychographic and demographic information).The information can be used to create an evenmore personalized experience for theconsumer.

Trivverprovidesbenefitsforvariousplayersacrossthevaluechain:

• Brands and advertisers: Advertisers are able to target consumers on variouschannelsanddevicesthroughTrivver.AdvertiserswilllikelybenefitfromhigherROIon ad spend, driven by better analytics and personalization and by broader reachwithomni-channeladvertising.

• Users: Consumers can engage with, bookmark, tweet, share, “like” and buy theirfavoritebrands.AsTrivveroperatesunder theprincipleofunobtrusiveadvertising,consumers are not presented with ads that are irrelevant to them, resulting in amorepersonalizedexperience.

• Appandgamedevelopers:Developersbenefitfromhigheradrevenueviamultipletouch points. Through Trivver, smart objects can be placed within numerousenvironments to reachamass, targetedaudience,which is conducive to increasedmonetization. Trivver’s ability to place branded objects in multiple environmentsenablesevensmallgamedeveloperstomonetizetheirofferings.

• Digital advertising industry:Trivver iscreatingnewstandards for3Dadcontent indigitaladvertising,expandingtheindustry’sreachandimpact.

WHATWETHINK

With the increasingpopularityofVR, thedigitaladvertisingspace is set toattractevenmore marketing spend as advertisers look to find ways to reach consumers who areadopting3D.WebelieveTrivver iswell positioned tobenefit from this trendand fromtheneedforanoptimaladvertisingsolutionthatmanagescontentandcampaignsacrossplatforms. Trivver’s suite of product offerings, which include an ad exchange, smartobjectsandtheTrivverapp,willprovidemuch-neededsolutionsforbrands,developersandusers.

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DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

AUGUST8,2016

DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comKirilPopov SeniorAnalyst

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