Advanced Targeting The Evolution of Audience Buying May 2013

“Audience Buying is the practice of acquiring ad impressions based on characteristics known about a

particular user, rather than buying ad inventory at a

site/content level.”

Agenda

• Who We Are

• How Did This Start?

• Audience Targeting Today

• Where Do We Go from Here?

Who We Are

We are Xaxis

We leverage data and technology to help advertisers reach and engage with audiences at scale wherever they are in the digital ecosystem

We see Digital Brilliance

Unrivaled Scale

GLOBAL 195 employees in 20 markets

EXPERIENCED

320 billion impressions

annually across 1,000+ clients

INTEGRATED A complete data

management solution for marketers

UNIVERSAL The most access

to data and media sources

Headquarters Regional Offices

Norway

Sweden

Netherlands

United Kingdom

Denmark

Austria

Belgium

Germany

Italy

France

Spain

Turkey

Poland

Miami (Q2’13) Mexico (Q2’13)

Canada New York

China Hong Kong

India Vietnam Thailand Malaysia

Singapore Australia

North America

Latin America

EMEA

APAC

London

Singapore

New York

Miami

How Did This Start?

It Begins with A Cookie…

Group M Academyl | March 2012 8

What is a cookie? Text file store on your computer

How does it get there? Transferred from the server to your Browser via the HTTP protocol (code on the site or in ad)

Why are they used? -Personalized onsite experience -Login information -Monitoring user behavior (onsite or with ad) -Monitoring user views or interactions with ad

Who places them? -Websites -Publishers -Analytics companies -Ad servers -Ad networks / DSPs / SSPs -Xaxis

Cookies Stored in Databases

Group M Academyl | March 2012 9

Database

SEES AD PERFORMS

SEARCH VISITS

WEBSITE

Day 0 Day 2 Day 2

User is cookied

Mookie User ID Event 1 Event 2 Event 3 Event 4

12452… Saw Ad Campaign on Day 0 Clicked on Search on Day 2 Visited site on Day 2 Added item to shopping cart

…

…

The Evolution of the Marketplace

• Lack of marketplace transparency

• Multiple intermediaries involved in display transactions

• Relationship-based sales approach cannot scale to vast complexity of decisions for online buying

Hundreds of companies in the middle

Advertisers

• Supply far outstripping demand forces sale into secondary market

• Publishers have lost control of their data and inventory distribution

• Advertisers looking for audiences across multiple sites

Publishers

10

The Digital Landscape: Complex & Expensive

A D V E R T I S E R S

P U B L I S H E R S

Technology and Data More Available

Data Availability Auction-based Buying Models

Dynamic Media Buying Optimization

Technologies

• Proliferation of available data sources

• Publishers becoming data providers

• Decreasing cost of access to data

• Publishers bypassing ad networks and providing inventory to ad exchanges

• Ad exchanges moving from blind / low quality inventory to transparent / higher quality

• Access to inventory at scale

• Demand-side platforms dynamically bidding for ad impressions available in exchanges

• Intelligent bid management for the most valuable users / content

• Global campaign reach, frequency and pacing controls

Improving Transparency

Ad Verification, Opt-out technologies 12

A Cluttered Ecosystem Faces Consumers

Audience Buying Offers A Way Through the Clutter

Contextual Targeting

Content as a Proxy for Audience

Audience Buying

Audience regardless of context

Target Outside Target

$$$ $$$

$$ $$ $$

$ $$ $

Contextual Buying

Audience Buying

• Female

• Recent Mother

• High Earner

• Searching for New Car Related Terms

• Recent Browsing on Car Sites

• Female

• Recent Mother

• High Earner

• Searching for New Car Related Terms

• Recent Browsing on Car Sites

What Can We Do Today?

Audience Buying allows you to turn this

Into a targeted audience

And deliver your messages to the right people

Less Waste & Better ROI

And Aligns Audience Buying With Consumer Lifecycle

The closer to checkout, the easier it is to drive conversion

Suppose you are selling beauty products, which of the following makes the best target:

Known buyer of brands products

Searched for the brands products

Surfs beauty sites

Fits the demo

Moisturizer, Face Cream, Body Wash

18 -45, Female, Educated

Single Platform for All Audience Targeting

Retargeting

Customer Response Model

Research Segmentation

Intender

Converter Response Model

Search Retargeting

Interest

Customer

Audience Data

33

Universal Data Drives Powerful Insight

Attribution

ROI

Ad Impact

Consumer Insight

User Level Analytics

Insight

34

Audience Targeting Engine

Income

Age Gender Fitness

Sports

Occupation Dieters Real Estate

Education

Voter

Travel

Insurance Health

Frequency = 3

Media = 8

Creative = 5

Frequency = 8

Media = 5

Creative = 10

Media = 5

Creative = 2

Available Segments

Data Universe

Frequency = 10

Effective Segments

Cost Efficient

ROI

Impact

Attribution

Post Campaign Optimization

Xaxis Overview | April 2013 35

Stories of Success

Xaxis Insight Drives Purchase Major Retail Client

CHALLENGE

• Increase online conversions by delivering custom messages to existing site visitors

APPROACH

• Capture site side browsing behaviors to implement product-level retargeting campaigns

• Leverage advanced Xaxis analytics capabilities to provide insight into trends in audience segmentation

RESULTS

• Delivered incremental sales lift at a 14:1 return on ad spend (ROAS)

LEARNINGS

• Proved that conversion rate increased among audiences that were exposed to multiple message types and that those who engaged with the client’s brand spent more

Incremental Revenue

Spend

eCommerce Lifts Purchases

Xaxis Premium Lifts Purchase Intent Consumer Packaged Goods

CHALLENGE

• Build awareness and purchase intent of brand

APPROACH

• Take advantage of above-the-fold inventory in a premium environment

• Use a combination of brand lookalike and competitive segments

RESULTS

• 42.1% lift in purchase intent

• 78% better lift in purchase intent than other partners on the plan

LEARNINGS

• Leveraging above-the-fold inventory provided strong brand lift and awareness

• Increases audience proclivity towards brand

• Succeeds under of a variety of data sets from lookalike to competitive for a broad audience

0%

5%

10%

15%

20%

Control Exposed

XP Purchase Intent

0%

10%

20%

30%

40%

50%

Other Partners Xaxis Premium

XP Lift vs. Other

Partners

78% More Lift

XP Lift Vs. Other Partners

42% Lift

Video Targeting to Lift ROI Consumer Packaged Goods

CHALLENGE

• Maximize sales and evaluate audience buying across digital video

APPROACH

• Identify customers likely to generate efficient returns and target with campaign messaging across an expansive pool of digital video inventory

RESULTS

• 178% lift in ROI

• 23% increase in units velocity

• 20% increase in sales velocity

• 12% lift in new buyers

LEARNINGS

• Proved the value of audience targeting via online video

Exposed Control

12% Lift

Xaxis Impact Measures Impact Staffing Agency

LEARNINGS

• Campaign is effective in driving leading staffing agency brand consideration and intent

CHALLENGE

• Drive awareness, consideration and intent across the portfolio of a leading staffing agency in Europe to increase brand engagement in the US

RESULTS

• 13% LIFT within the consideration funnel

• 22% LIFT from people who influence hiring decisions processes

• 24% LIFT from people who are authorized to hire

• 65% LIFT from people who prefer using this a leading staffing agency for their hiring process and decisions

APPROACH

• Reach Top Level Managers and HR Professional Decision Makers

• Utilize Xaxis Premium to reach the desired audience in order to help drive awareness and consideration

• Employ Xaxis Impact to measure brand and perceptual metrics

• Audience split into test/control based on campaign exposure

• Surveys Executed across both groups

• Scientific measure of lift on key brand metrics

Where Do We Go From Here?

Advanced Targeting via Audience Tiers

Demonstrated Affinity

Inferred Affinity

Revenue Capture

Demand Generation

! ≈

$

INTEREST MODELED

DATA INTENDER

SEARCH RETARGETING

RETARGETING CUSTOMER AUDIENCE

DISCOVERY

42

Affinity Tier Definitions

43

INTEREST MODELED

DATA INTENDER

SEARCH RETARGETING

RETARGETING CUSTOMER AUDIENCE

DISCOVERY

Engaging existing customers directly

online

Re-messaging users based on behaviors

carried out on advertiser website

Retargeting consumers online based on previous search

behaviors

Messaging qualified users based on online

behaviors that indicate purchase intent

Customizing audience model using data inputs such as on-site

conversion activity, purchase habits, and CRM

Passive intent / demo / offline purchase

Discovering new customers to drive lower

funnel engagement

INTEREST MODELED

DATA INTENDER

SEARCH RETARGETING

RETARGETING CUSTOMER AUDIENCE

DISCOVERY

Execution Tied to Consumer

Xaxis ROI

Volume Sales ROI

Xaxis Impact

Awareness Consideration Intent

Measurement

Commodity Reserve Media

Always On Campaign Flighting Budget

Direct Response Brand Building Message

44

Guide the User Down a Channelized Path

Xaxis TV

Xaxis Radio

Xaxis Premium

Direct Response

45

4 Impressions

3 Impressions

Frequency Cap

4 Impressions

Drive Event

Creative Messaging

Capture Conversion

Deepen Engagement

Introduce the Brand or Product

Reinforce Messaging

A New Age for Radio In more places, now addressable and targetable

46

Plan Video Like Broadcast, Display Or Both

BRAND

RETARGETING “Exposed to your TV ad 4 or more times”

SHOW CLUSTER “Heavy Viewers of American Idol, X-Factor, The Voice …”

SHOW GENRES

Sports, Sitcoms, Documentaries, Soap, Cartoon, Travel/Holiday, Kids/Children, Drama, Makeover, News, Cooking, Reality, Comedy, Music, Home Improvement, Awards, etc.

COMPETITIVE

TARGETING “Exposed to ‘Brand B’ TV ad 3+ times”

DAYPART Morning, Daytime Network, Daytime Cable, Prime Access, Primetime, Cable Primetime, Late Night, etc.

VIEWING HABITS “Light TV viewer making $100K+ a year”

47

Standard Segments

Custom Segments

Bring Your TV Audience Online

Frequency

Incremental

Reach

Bring the power of TV planning to digital video buys through Audience Targeting

• Leverage Nielsen TV data and Nielsen household data to unite these two data universes and make them targetable online.

• Allows for standard planning process against the rest of the 1st and 3rd party data universe, as well.

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AIRPORTS · BARS · CAFÉS · GAS STATIONS · HEALTH CARE · HEALTH CLUBS · MALLS ·

OFFICES · RESTAURANTS · RETAIL STORES · TAXIS · TRANSIT

49

3rd Party Data Providers who source their information Offline

Execute Digital Out-Of-Home & Online Campaigns using the Same Audiences

High-Indexing Geos (Lat-Long/ZIP+4)

EXAMPLE: Prospects A25+

HHI $75k+ New Home Purchaser

Cookies

Online GRP Measurement Bridging the Gap between Traditional and Digital Measurement

• Identifies the audience via registered user demographics from Facebook

• Has the ability to evaluates unique reach and frequency across TV and online campaigns

• Gross Ratings Points (GRPs) outputs for ad campaigns are comparable to Nielsen TV Ratings

• First internet measurement system accredited by the MRC

• Independent third-party measurement from the leader in digital audience measurement

• Census and panel-based measures

• Claims output measurements are comparable with other media platforms for reach/frequency measurements

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From Media Planning to Audience Planning Build, Measure and Optimize by Audience Portrait

Xaxis Premium 51

Portrait: Kids and Car Seats • Female Purchase Decision Makers • Shopping CPG – Heavy Spenders • Female 25-54

Portrait: Soccer Moms • Women – Work- Stay at Home • Women – Home – Crafts & Activities • Parenting-Children

Portrait: Working Moms • Family Position Head of Household • Women – Work – Career • Events – Parents & Kids

12.7 mm

7 mm

10.3 mm

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21.5 MM

Reach Audiences All Places Digital

High-Reach Display

Video & TV

Audio & Mobile

Premium Publishers

Social Platforms

Thank You!

Paul Dolan

Managing Director, NA

Paul.Dolan@xaxis.com