XAXIS 101 SERIES PROGRAMMATIC 101 EACH DAY, XAXIS CAN PROGRAMMATICALLY CONNECT BRANDS WITH CUSTOMERS ANYWHERE OVER 150 BILLION TIMES For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.

1 2 3 4 WHAT IT IS INVENTORY DATA TRENDS

WHAT IS PROGRAMMATIC PROGRAMMATIC An automated method of buying digital advertising in which supply and demand partners make decisions on a per-impression basis and adhere to business rules as provided by the operators of each platform.

VIDEO: THE PROGRAMMATIC PRIMER

WHY BUY PROGRAMMATICALLY? TARGETING STREAMLINING SEGMENTATION SCALE AUTOMATION Maximize accuracy in reaching users with minimal waste Use technology to manage and refine relationships Identify different user types and speak to them differently Reach users at volume, across the web Buy and optimize campaigns efficiently and effectively

WHAT IS AN AUDIENCE? A target audience is the intended readership of a publication, advertisement, or other message. In marketing and advertising, it is a specific group of people within the target market at which a product or the marketing message of a product is aimed. Working professionals making $75,000 - $125,000 Demo: Men 18-35 Mother’s who live in the suburbs EXAMPLES OF AUDIENCES: Working adults looking to go on vacation Single men living in NYC Watch/jewelry/ shoes/clothing enthusiast

PROGRAMMATIC AUDIENCE TARGETING WHAT IS AN AUDIENCE? CONTEXTUAL TARGETING Content as a Proxy for Audience For years, digital marketers built their targeting strategies around the assumption that prospective customers were best defined and targeted by the content being viewed at the time of ad exposure. Though sometimes effective, contextually driven content strategies often deliver valuable (and expensive) ad impressions to the wrong audience, resulting in wasted marketing spend and missed opportunity. The recent proliferation and advancement of ad technology has helped marketers to realize the power of addressable audiences targeted in real-time, bringing on the rise of a new audience-first digital marketing paradigm. Underpinned by technologies such as DMPs, DSPs, and distributed processing infrastructure capable of ingesting and analyzing troves of data, it is now possible to target users based on their behaviors, propensities, and demographics either in isolation or coordination with contextual placement, bringing newfound accuracy and efficiency to digital marketing. PROGRAMMATIC AUDIENCE TARGETING Audience regardless of context TARGET OUTSIDE TARGET

HOW BUYS ARE EXECUTED SSP (supply side platform) DSPs Publisher ad server: “Do I have a guaranteed impression?” STEP 2 YES GUARANTEED AD SERVED! USER request’s web page User is a woman, 25-34, Fashionista STEP 1 SSP (supply side platform) NO $0.96 DSPs: “who is this? Do we want to bid?” DSPs “Hey, DSP’s – we have someone!” $2.10 $0.47 pass $0.95 STEP 3 Highest bidding DSP wins the ad impression, delivers creative STEP 4

PROGRAMMATIC AT ITS MOST ESSENTIAL ENABLES AUDIENCE BUYING THE SAME SITE, WITH TAILORED ADVERTISING TO EACH SPECIFIC AUDIENCE

DIFFERENT DATA SOURCES OFFER UNIQUE INSIGHTS FITS THE DEMO SURFS VACATION WEBSITES SEARCHED FOR VACATION PACKAGES WELL KNOWN VACATION PACKAGE Young married couple, 27-32, HHI: $125k Surfs vacation websites All Inclusive Island Vacation Packages Probability to become a customer

DSP The advertiser’s tech platform – it enables buyers to manage multiple programmatic connections and exchanges to purchase inventory through one interface SSP The Publisher’s tech platform – it enables the automation and optimization of inventory for the publisher, accepting bids, prioritizing advertiser contracts and relationships.

AUDIENCE BUYING BENEFITS EVERYONE ADVERTISERS 1 2 PUBLISHERS Reach the best prospects possible to deliver the highest return on their marketing investment Compensated on not just value of inventory but also audiences CONSUMERS 3 4 AGENCIES Receive brand communications that are relevant to their interests and needs Deliver more powerful and personal advertising campaigns that take advantage of digital media’s efficiency in creating high return on ad spend for clients

INVENTORY For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.

ONLINE AD INVENTORY Advertising inventory is the number of advertisements, or amount of ad space, a publisher has available to sell to an advertiser. Ad inventory is often calculated by the month. The term can refer to ads in print or other traditional media but is increasingly used to refer to online or mobile ads. Online ad inventory is often valued in terms of the site traffic or ad views that the publisher can deliver to the advertiser. DISPLAY MOBILE/ TABLET RADIO RICH MEDIA ADDRESSABLE TV NATIVE VIDEO DIGITAL OOH PROGRAMMATIC SEARCH

PREMIUM INVENTORY Bot Traffic Blocked Inventory owned by top publishers 3rd Party verified for Viewability, fraud, and content Brand Safety: Excluding Porn, Hate Speech, Violence, Firearms, Gambling, Piracy Examples: ESPN, New York Times

CPI, CPA, CPM, CPV, CPC, CPS, Pay-Per-Call NETWORKS Ad Networks: An advertising network aggregates, categorizes and sells publisher inventory in a way that can be easily understood and purchased by advertisers on a fixed CPM basis. By aggregating inventory, Ad Networks offer advertisers the ability to better reach their target audience while allowing publishers to sell their remnant inventory more effectively. There are many types of Ad Networks. For example, some focus on delivering reach and price efficiency while others focus on audience demographics and quality. NETWORK OFFER TYPES TRAFFIC MIN. Undertone CPM, CPC, CPA, CPV 500,000 Tremor CPM, CPD, CPVC, CPVT Opera CPI, CPA, CPM, CPV, CPC, CPS, Pay-Per-Call 400,000

BUYER TO SELLER PROGRAMMATIC RELATIONSHIPS OPEN EXCHANGES PROGRAMMATIC DIRECT PRIVATE EXCHANGES Limited access only minimizes competition Exclusiveness of invitation called into question Programmatic business relationship Pre-defined inventory, price, and priority Competition with entire landscape Bid Inflation Efficient Reach and Scale

DATA For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.

WHAT IS DMP? As an intelligence layer for digital marketing, DMPs (Data Management Platforms) enable marketers, publishers and brands to plan and implement audience strategies, construct audiences, activate and onboard 1st party data, personalize consumer experiences, and report on trends across audiences, while linking all data points associated with users in real (or near-real) time.

UNDERSTANDING DIFFERENT TYPES OF DATA 1 2 3 1st PARTY 2nd PARTY 3rd PARTY Generated by client’s sites and campaigns Mobile App Data CRM Data Point of Sale Data E-mail Lists Owned by the client Generated by platform delivery advertising Owned by the platform Generated by an independent party, usually available for purchase Owned by the provider

OPPORTUNITIES IN THE MARKET PROGRAMMATIC TRENDS OPPORTUNITIES IN THE MARKET For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.

GROWTH OF PROGRAMMATIC DIGITAL DISPLAY AD SPEND IN US 67.9% GROWTH Growth in Programmatic Display Ad spend YOY 2016

PROGRAMMATIC GROWTH 67 84.5 49 67% y-o-y growth anticipated in programmatic Programmatic slated to be 67% of all display spend, up from 59% in 2015 While desktop display is flat, programmatic video will increase 84.5%, and mobile is up $6bn (77%) Programmatic expected to represent 40% of all video and 69% of all mobile in 2016 Sources: emarketer, “the state of us digital advertising 2016,” 3/30/16; Emarketer, “US mobile video advertising 2016”, 5/2/16

THE EXCHANGE SHIFT 10% Display’s share of RTB total volume continues to shrink – its 2016 share will be nearly 10% lower than 2015. 57% Mobile volume will double over 2015 levels, while video spend will increase 57%.

CROSS-VERTICAL IMPACT PROGRAMMATIC AS % OF ALL DISPLAY SPEND PROGRAMMATIC SPEND BY VERTICAL HEALTHCARE & PHARMA TRAVEL ENTERTAINMENT & MEDIA COMPUTING & ELECTRONICS MEDIA AUTO TELECOM FINANCIAL SERVICES CPG RETAIL Source: emarketer, “Digital Display ad spending, by industry,” 6/1/15

HOW BUYS ARE EXECUTED SSP (supply side platform) DSPs Publisher ad server: “Do I have a guaranteed impression?” STEP 2 YES GUARANTEED AD SERVED! USER request’s web page User is a woman, 25-34, Fashionista STEP 1 SSP (supply side platform) NO $0.96 DSPs: “who is this? Do we want to bid?” DSPs “Hey, DSP’s – we have someone!” $2.10 $0.47 pass $0.95 STEP 3 Highest bidding DSP wins the ad impression, delivers creative STEP 4

GLOSSARY OF TERMS For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.

GLOSSARY OF TERMS PROGRAMMATIC: An automated method of buying digital advertising in which supply and demand partners make decisions on a per-impression basis and adhere to business rules as provided by the operators of each platform REAL-TIME BIDDING: a type of programmatic buying by which multiple parties submit bids in real-time for a piece of inventory in a reduced price auction, to which the winning advertiser delivers creative OPEN EXCHANGE: a biddable open market system in which any seller can make digital inventory available for purchase by any buyer PRIVATE EXCHANGE: a biddable environment in which a publisher can limit access to inventory to certain advertisers with established pricing rules PROGRAMMATIC DIRECT: a one-to-one inventory relationship between publisher and advertiser, agency, or platform that delivers media through programmatic technology based on agreed upon business terms DEMAND SIDE PROVIDER: a technology platform that allows advertisers to programmatically acquire inventory through rule set creation SUPPLY SIDE PROVIDER: a technology platform that allows publishers to programmatically fulfill inventory to various parties – direct buyers, exchanges, etc. – through rule set creation DATA MANAGEMENT PLATFORM: a data store that uses a persistent identifier to store data at a disaggregated level pertaining to campaign performance, client data, and audience attributes

GLOSSARY OF TERMS 1ST PARTY DATA: audience attributes generated from digital and non-digital assets belonging to an advertiser or publisher 2ND PARTY DATA: audience attributes generated by platforms or advertisers through a data integration from a relevant publisher 3RD PARTY DATA: audience attributes from a single source or aggregator made available for purchase by advertisers AUDIENCE MODELING: a method of audience creation in which data science is applied to a modeling dataset based on a seed dataset to create a predictive targeting group USER-LEVEL ANALYTICS: directional data insights based on aggregate learnings from each user exposed in a campaign ATTRIBUTION: the method by which addressable media is assigned credit or value for a measured outcome VIEWABILITY: the measured ability of a user to view an ad on a webpage FRAUD: the delivery of advertising in a duplicitous environment, whether to non- human bot traffic or by manipulating ad placement on a webpage ALGORITHMIC BUYING: automated acquisition of inventory based on machine learning based on a single outcome or criteria, regardless of defined audience attributes

XAXIS 101 SERIES THANK YOU For internal communications and client presentation only. Information or views presented in this post do not necessarily represent the official opinions of Xaxis, the Company, or any individuals at the Company.