Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

Australia and New Zealand Insights

Partner WebinarJune 4, 2019

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited. 2

Huw Costello

Product Manager

Paul Sigaloff

Managing Director ANZ

Speakers

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

Agenda

1. Introduction to Verizon Media ANZ

2. Advertising market in ANZ

3. Search market in ANZ

4. Partners in ANZ

5. Q&A

3

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

Introduction to Verizon Media ANZ

4

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited. 5

JV Vision

Utilise Yahoo technology and SWM scale and content to connect advertisers to our audiences and create unique value

JV Operating Principles

• Align with Yahoo product strategy especially in “personalization” and “mobile 1st” approaches

• Rapidly adopt and localise Yahoo products and use local solutions by exception

• Maximise online distribution of SWM content and monetisation of audiences

History of the Joint Venture 2006 - 2019

Alignment Focus

Integration + Transformation

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

Advertising market in ANZ

6

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

51%

24%

7%

5%

5%

5%2%

Australian Advertising Expenditure

Internet

Free-to-ai r TV

Radio

Out-of-home

Newspapers

Subscr iption TV

Consumer Magazines

Film ed Entert ainment

Interactive Games

1%

6%

5%

1%

-10%

-8%

Television Internet Outdoor Radio Newspapers Magazines

Australian Advertising Growth YoY2018 Actuals vs 2019 Forecast

7

The Internet is powering growth in the AU media industry

Source: PwC IAB Online Advertising Expenditure Report 2019 and eMarketer Total Media Ad Spending, Australia

Total Media Market +3%

$10B

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

$2.63 $2.74 $2.83 $2.90

$1.40 $1.29 $1.15 $1.00

$1.20 $1.28 $1.34 $1.37

$0.88$1.18

$1.51 $1.84

$0

$1

$2

$3

$4

$5

$6

$7

$8

2017 2018 2019 2020

Australian Internet Advertising Expenditure ($B)

Search Display Classified Video

8

Australia is the 5th largest digital market

Source: PwC IAB Online Advertising Expenditure Report 2019

Digital Ad Spend per Internet User

1 Australia $296.41

2 UK $277.07

3 US $269.64

4 Norway $215.31

5 Denmark $190.35

6 New Zealand $181.38

21MInternet population, of which Verizon Media has a 50% reach

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

Search market in ANZ

9

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited. 10

The Australian Search landscape

Google Bing Yahoo DuckDuckGo MSN Baidu Other

1%Yahoo Share

AUS

Google Bing Yahoo DuckDuckGo MSN Baidu Other Google Bing Yahoo DuckDuckGo MSN Yandex Other

6%Yahoo Share

US

2%Yahoo Share

UK

Source: StatCounter Global Stats 2019 Q2

Most search engines operate in Australia, but it is dominated by Google.

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

Q1 2009

Q3 2009

Q1 2010

Q3 2010

Q1 2011

Q3 2011

Q1 2012

Q3 2012

Q1 2013

Q3 2013

Q1 2014

Q3 2014

Q1 2015

Q3 2015

Q1 2016

Q3 2016

Q1 2017

Q3 2017

Q1 2018

Q3 2018

Q1 2019

Australian Online Advertising Expenditure Growth ($M)

Display Classifieds Search

11

The Australian Search market is worth $2.9B

This market grew +8% year over year

This market has seen sustained, periodic growth for the last 10 years

Mobile search is the key driver for this growth

Search ads account for 44% of all online advertising spend in Australia

Yahoo has a small market share (1%), but is preparing to grow in this market

The Australian Search market is substantial and still growing

Source: PwC IAB Online Advertising Expenditure Report 2019

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

Most popular Fastest growing

12

Search topics and themes in market

Auto & Vehicles

Beauty & Fitness

Business

Travel

Home & Garden

Pets & Animals

Food & Drink

Health

Source: Google Trends data

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

Partners in ANZ

13

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited. 14

Bryan Christman

Partnerships and Business Development Manager

Huw Costello

Product Manager

Local ANZ Search team

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited. 15

Search products and features in ANZ

Source: StatCounter Global Stats 2019 Q2

Currently under legal review

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

Key considerations for entry into ANZ Search market

16

Localisation: Ensure all campaigns and offerings are localised to ANZ market to help with approval and maximise performance.

Low barriers to entry in APAC: ANZ accounts for the largest English speaking markets in the APAC region, and >80% of the Australian and New Zealand populations have some form of Internet connectivity.

Undiluted, growing market: There is currently little Partner activity in the ANZ market, so there is opportunity for quick expansion as the market grows.

123

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

Next steps

1. Determine the implementations you want to leverage in ANZ

2. Reach out to Business Development to secure rights and paperwork

3. Work with Partner Management to set up, test and launch in ANZ

4. Optimize and improve as data is gathered and the market builds up

17

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.

Q&A

18

Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.