1.1 P R E S E N T E D B Y D e n n i s B u c h h e i m A u g u s t 1 4 , 2 0 1 4 The Possibilities of Programmatic

2. 2 Yahoo 2014 Confidential & Proprietary. 2 The promise of digital advertising 2 3. 3 Yahoo 2014 Confidential & Proprietary. 3 T A R G E T I N G & E F F I C I E N C Y USERENGAGEMENT Achieving 1:1 through programmatic 3 4. 4 Yahoo 2014 Confidential & Proprietary. 4 OFFERING TYPE OF BUY PRICING PARTICIPANTS ALSO CALLED... Programmatic Guaranteed Reserved Fixed One Seller One Buyer Programmatic Direct Programmatic Premium Premium Direct Programmatic Reserved Automated Guaranteed Private Marketplace Unreserved Auction One/Few Sellers Few Buyers Deal ID Private Auction Invitation-Only Auction Closed Auction Private Access Open Marketplace Unreserved Auction Many Sellers Many Buyers Open Exchange Open Auction Programmatic models 5. 5 Yahoo 2014 Confidential & Proprietary. 5 Source: AdExchanger, Q214 State of Programmatic Media report 0% 10% 20% 30% 40% 50% 60% 70% Open Marketplaces Private Marketplaces Programmatic Guaranteed 2014 2015 -16% +14% +60% Alternative models on the rise 6. 6 Yahoo 2014 Confidential & Proprietary. 6 Private Marketplaces B E N E F I T S T O AD V E R T I S E R S Exclusive, high-quality inventory Limited competition Brand protection ControlTransparency 6 7. 7 Yahoo 2014 Confidential & Proprietary. 7 Programmatic Guaranteed B E N E F I T S T O AD V E R T I S E R S Placement guarantee No competition Operational efficiency Volume guarantee 7 8. 8 Yahoo 2014 Confidential & Proprietary. 8 T A R G E T I N G & E F F I C I E N C Y USERENGAGEMENT Industry has evolved toward targeting and efficiency 8 9. 9 Yahoo 2014 Confidential & Proprietary. 9 Efficiencyat any cost? 10. 10 Yahoo 2014 Confidential & Proprietary. 10 11. 11 Yahoo 2014 Confidential & Proprietary. 11 An unbalanced situation Targeting driven by demand- side objectives Efficiency focused on inventory standardization and bidding TARGETING & EFFICIENCY Supply-side doesnt know whats being shown to their users Ad formats havent evolved enough since 1990s USER ENGAGEMENT 12. 12 Yahoo 2014 Confidential & Proprietary. 12 Industry has to make greater investments in user engagement Industry Dilemma No new (supply) without demand AD FORMATS No without new proven ad formats (supply) READY DEMAND 12 13. 13 Yahoo 2014 Confidential & Proprietary. 13 Stream Ads 14. 14 Yahoo 2014 Confidential & Proprietary. 14 Content Marketing 15. 15 Yahoo 2014 Confidential & Proprietary. 15 Image Ads 16. 16 Yahoo 2014 Confidential & Proprietary. 16 Display Ads 17. 17 Yahoo 2014 Confidential & Proprietary. 17 Video Ads 18. 18 Yahoo 2014 Confidential & Proprietary. 18 Search Ads 19. 19 Yahoo 2014 Confidential & Proprietary. 19 Where do we go from here? QUAL IT Y SUPPLY QUAL IT Y DEM AN D GOOD T ARGET I NG 19 Engine is only as fast as its slowest part Industry must place higher importance on user engagement Ad formats will be more integrated into content with modular creative Publishers will begin to influence which ads are shown and how they are displayed The lines between programmatic models will blur A unified advertising platform is required to navigate these changes 20. 20 Thank you!