Emily Kaufman

Director, Business Development

Gaming the System: How traditional publishers can win in today's mobile first world.

Mobile: Fastest Adoption in HistoryTime to reach 50 million users

2

75 YEARS

38 YEARS

13 YEARS8 YEARS

4 YEARS 2.8 YEARS 80 DAYS

Lessons from Mobile Game Publishers

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Integrating Ads in Unique Ways as a Value Exchange

Maximizing Ad Revenue without Cannibalizing Users

Mobile Ad Blocking Creates Monetization Challenges

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5

vs

All publishers are now mobile first …but what’s your preferred flavor?

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Apps: the new TV channel

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How do you marry content & advertising in a way that creates a

great user experience?

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Top Mobile Pubs Provide Alternatives to Paywalls

Users Want Access to Premium Content for Free

Reinventing Mobile App Advertising

Advertising Has Always Been a Value Exchange

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On Mobile: Video Ad Effectiveness Drives Higher eCPMs Mobile videos rank 2x as memorable as lower third and display ads.

10IAB Mobile Video 2015: A Global Perspective - On Device Research

57%

47%

29%28%

16%

Video

“Sponsored By” Message

Lower Third Ad Overlay

Interstitial Display

Other

Users would rather view mobile video ads than pay a feeValue exchange video ads are effective and preferred.

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8%

15%

77%

Free content supported by video ads

Monthly subscription for unlimited access

Pay per view

IAB Mobile Video 2015: A Global Perspective - On Device Research

10% 20% 30% 40% 50% 60% 70% 80% 90%

Average Session Time

Higher Ad Engagement Leads to Longer Session Times

12Source: AdColony Internal Network Data - June through August 2015

As more users engage in value exchange ad integrations, session times improve.

Example: Sports Illustrated

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User is offered options to unlock premium content, including watching an ad.

If the user selects that option, video ad plays.

Once the video completes, the user can access the content.

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What about maximizing ad monetization efficiency?

Introduction to Use Rate

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Why It’s Often Low Poor integration settings and

limited user segmentation

How Use Rate Helps Improves monetization

efficiency when increased

What It Is Share of app users who see at

least one ad on a given day; the higher the %, the better e.g. 40%+

20% 30% 40% 50% 60% 70% 80% 90%

ARPDAU

Publisher Benchmarks: Use Rate vs Ad ARPDAU

16Source: AdColony Internal Network Data - January through July 2015

Average revenue per daily active user increases as Use Rate improves

Effect of Use Rate on ARPDAU: Social Entertainment App

17Source: AdColony Internal Network Data - June 2015

The Change Optimized ad integration

segmentation, increasing ad Use Rate to 48%

The Results 350% ARPDAU increase and 38.7% eCPM increase without affecting user retention (MAU)

The App Social entertainment app with

600,000 DAU and a 15% Use Rate sought to improve monetization

Use Rate Ad ARPDAU

Top Takeaways

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It’s more important than ever to have an app-focused approach to mobile publishing.1

Content & advertising need to work together to create an enjoyable user experience.2

Think beyond just display. Video offers higher eCPMs and more innovative executions.3

Value exchange integrations are a win-win for the consumer, marketer and publisher.4

Optimize video ad integrations to improve Use Rate and thus overall revenue.5

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Q&A

Thank You