Media Bistro: Social Developer Summit

June 29, 2010

Confidential

The Mobile Advertising Market

Note: Includes display, search, and messaging-based advertising. Source: eMarketer, September 2009

Note: As of December for each year; *refers to the number of active subscriptionsSource: eMarketer, November 2009; (1) International Telecommunication Union (ITU), October 6, 2009

• Worldwide mobile web users at 650MM and more than doubling to 1.4B by 2013.

• US mobile advertising revenue projects for this year to reach ~$600MM (eMarketer, Sept. 2009)

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Challenges for Developers

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Increased Inventory

Ad Dollars

Publisher & Application Inventory

While the industry is growing

rapidly….

Mobile pageviews grew 110 percent in the U.S. last year and 148 percent worldwide

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Increased Inventory

Ad Dollars Publisher &

Application Inventory

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Increased Inventory…supply will soon out-

weigh demand.

Ad Dollars

Publisher & Application Inventory

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Ad Quality

Campaigns sold through partners and third-parties can include ads

that violate publisher

advertiser black lists or diminish brand integrity

Campaigns sold through partners and third-parties can include ads

that violate publisher

advertiser black lists or diminish brand integrity

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Fragmented Platforms and OS: Create ad infrastructure and delivery challenges

State of Change in Device Market Share

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Ad Network’s Evolving Role

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Role of Mobile Ad Networks: Benefits & Challenges

“On the mobile display advertising side, we note that in mobile display advertising, the ad network model is highly important to generate

significant enough reach and inventory for advertisers since traffic is less than online.” – Piper Jaffray – Mobile Report, 2009

Macro Challenges• Mobile advertising market is

nascent –ad networks play a large role in ecosystem

• Mobile advertising requires specialty sellers

• Online ad serving infrastructure does not exist in mobile – environment is not plug and play as is online (e.g. lack of commercially viable mobile ad servers)

Publisher Challenges• Managing multiple ad networks

efficiently and effectively is suboptimal and expensive (manual process)

• Managing mobile ad business rules

• Optimizing mobile ad revenue

• Managing ad creative that is brand safe

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Nexage Metrics: Ad Network Fluctuation Rates

From March 1-31, 8 out of 11 ad networks saw a minimum 37% fluctuation in eCPM, some reaching as high as 89%.

March Nexage data reveals random patterns of peaks and troughs for ad network eCPMs.

Publishers trying to manually manage and anticipate these highs and lows across several ad networks may miss substantial revenue opportunities.

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• Higher fill rate• Higher eCPM• Efficient

Inventory Control

• Access to more targetable publisher inventory

• Nexage connects publishers to the 50 major ad sources, increases fill rate, yields higher eCPM – all with a single dashboard interface

• Ad networks that partner with Nexage gain access to global, targeted inventory with little effort or investment

• Advertisers whose chosen ad networks partner with Nexage receive access to a wide, highly targeted audience of mobile content consumers

• Higher ROI• Greater

audience reach

Advertiser

Publisher

Ad Network

Mobile ad mediation solutions provide value across the ecosystem

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Mobile Ad Mediation Solutions

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Mobile Ad Mediation – delivers maximum revenue from mobile advertising: NEUTRALITY is

KEY

Ad Mediation Platform

Pricing algorithms drive competition & higher prices for

mobile inventory

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Key features from mobile ad mediation solutions

Brand Safety

SDK suite for all major platforms

Open API

Mediation across 50+ ad sources

Mobile Ad Mediation

Single tracking &reporting dashboard

Optimization

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Ad Safety – Ad Screening Tool

12

3

4

Ad Screening allows publishers to review ads that run on their site, in real time, and

block offending ads immediately.

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Case Study – Reuters

Using Nexage Mediation, Reuters was able to increase its fill rate and overall revenue generation from its mobile properties.Solutio

nOpportunity

Reuters was looking for a robust and easy-to-implement solution to effectively monetize their inventory, specifically, increase their fill rate.

• Fill rate increased from 23% to 95% after Nexage Mediation implementation

• CPMs held steady• 2-3X increase in revenue

Results

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Nexage Dashboard

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Boston Tribune

Boston Tribune

Nexage Mediation: Manage all ad networks in one place – maximize visibility & control

Nexage Mediation: Manage all ad networks in one place – maximize visibility & control

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Boston Tribune

Boston Tribune

"The ability to centrally manage ad placement and provide clients with detailed performance data is key and Nexage helps make this possible.” Richard Kosinski, Chief Digital Officer Westwood One.

Nexage Mediation: Visibility into your inventory performance by fill rate, clicks, CTR, revenue & more

Nexage Mediation: Visibility into your inventory performance by fill rate, clicks, CTR, revenue & more

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Boston Tribune

Boston Tribune

Nexage Mediation: Visibility into your inventory performance by fill rate, clicks, CTR, revenue & more

Nexage Mediation: Visibility into your inventory performance by fill rate, clicks, CTR, revenue & more

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Nexage Campaign Supports:

•Mobile Web & Apps

•Device Targeting

•Day parting

•Real time reporting.

Nexage Campaign Supports:

•Mobile Web & Apps

•Device Targeting

•Day parting

•Real time reporting.

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Nexage Campaign Features

Nexage Campaign

Single tracking &reporting dashboard

Geo-Targeting

Device Targeting

Mobile Web & App Support

Integrated with Nexage Mediation

Unique User ID/cookie

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Nexage partners are top tier publishers, developers & mobile ad demand sources

Select Deployed Developer and Publisher Clients

Over 50 Select Mobile Ad Demand Source IntegrationsAdmob, Quattro Wireless, Nokia Interactive, Velti, Google,

Millennial Media, inMobi, Jumptap, DoubleClick, YOC, Unanimis, BuzzCity,

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The Facts:

Nexage serves 4+ Billion impressions per month

Nexage connects publishers to 50+ ad sources

Nexage supports existing Rich Media standards

Nexage serves impressions to people in 200+ countries

Nexage serves impressions to 50+ handsets

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Nexage Solution: Increase the Value of Publisher Mobile Inventory

Nexage provides publishers of digital content with the tools to maximize their mobile business

Nexage │ Campaign Mobile Ad Serving solution for direct-sold campaigns

Nexage │ Mediation Optimizes return on impressions for

publishers

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SummaryWith Nexage Mediation and Nexage Campaign,

publishers can:

• Access 50+ global ad sources, currently requesting ~4B

impressions/ month, from a single point of integration

• Optimize inventory by prioritizing the highest yielding ad

demand source

• Manage direct-sold campaigns for cost-effective, flat rates

• View and manage all of their revenue, inventory & business rules

from a single, user-friendly dashboard.

• Gain access to a multi-platform solution that bridges the many

mobile silos with a single point of integration

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Thank You

Jon PhenixVice President of Sales and Marketing

Nexage Inc.400 Fifth Ave, Suite 505

Waltham MA 02451781 576 9061 (m)

jon.phenix@nexage.com