TheEndofAdHarassmentCris3naConstandache@c_constandache

2 © Cheetah Mobile 2016. All rights reserved.

21M 30M

39M 54M

121M

181M

Jan 2010 Jan 2015 Jan 2011 Jan 2012 Jan 2013 Jan 2014

GlobalMonthlyAc3veAdBlockingSoAwareUsers(Desktop)

TheEvolu*onOfAd-Blocking

Annualgrowthof41%(Q22014–Q22015)

Source:2015AdBlockingReport–TheCostofAdblocking

3 © Cheetah Mobile 2016. All rights reserved.

3

WHY DO WE

BLOCK ADS?

They’reinterrup*ve

Theirdesigncanbeannoying

OAenirrelevant

PrivacyconcernsaboutTargetedads

73%

55%

54%

46%

31%

Slow down web browsing

Source::IABUK/YouGov‘OnlineAdBlocking’

Ad-blockersAThreat?Opportunity

8 © Cheetah Mobile 2016. All rights reserved.

It’sTimeToChange!

9 © Cheetah Mobile 2016. All rights reserved.

Lesslikelytoblockadsif…•  48%-theydidNOTinterferewith

whattheyaredoing•  36%-therewerefeweradson

webpages•  14%-theywereMORErelevant

Source::IABUK/YouGov‘OnlineAdBlocking’,,consumerusageandaLtudes,Oct15

AdBlockersAsAMarke*ngOpportunityOnMobile

ONLY19%areusingadblockersontheirsmartphone

Native Advertising Is a Tower of Babel

Sponsored content

Non- interruptive

Unique & proprietary

Organic to experience

In content well

Branded content

In user’s stream

Non IAB- standards

Ads via CMS

High quality

Paid content

Custom content

New advertorials

8

Na*veAdFormats:ARealTowerOfBabel

Wedoadsdifferently.

12 © Cheetah Mobile 2016. All rights reserved.

12

The World’s #3 Mobile App Audience*

1

1 2

2 3

2+BILLION DOWNLOADS

* Across both iOS and Android Devices Source: Cheetah Mobile Third Quarter 2015 results

13 © Cheetah Mobile 2016. All rights reserved.

13

TheThreePillarsOfNa*veAds

THEFORMAT

THETIMING

THEDATA

TurningMobileSignalsintoMarke3ngInsight

19 © Cheetah Mobile 2016. All rights reserved.

2-3X Lifetime

Value

8-10X CTR

© Cheetah Mobile 2016. All rights reserved.

DrivingResults

3-5X Engagement

ADBLOCKERS...•  AreNOTaphantommenace.•  Providesamarke3ngopportunityforbrands.

It’sallaboutinclusiveadver3singNOT

intrusiveadver3sing