Digital Advertising Seminar Disruption, Consolidation and Growth September 9, 2014 WCP Overview  Woodside Capital Partners is a global, independent investment bank that delivers world-class strategic and financial advice to emerging growth companies in technology sectors  Founded in 2001: over $10 billion in transaction value  M&A, private placement/strategic partnership and corporate finance advisory — Hardware: Semiconductors, Electronics, and Enabling Materials — Software, Digital Media/Advertising and Internet — Special Situations  30 professionals; backgrounds as entrepreneurs/CEOs and from top investment banks  Silicon Valley-based, with offices in London – 1/3 of transactions are cross-border  Silicon Valley headquarters of M&A International  WCP Research team offers technology research serving buy-side institutional investors and technology industry executives 1 AGENDA I. Disruption and Consolidation II. Growth Drivers III. The Holy Grail IV. Industry Consolidation V. Trends and Predictions 2 Disruption and Consolidation  High Tech and Big Data Meet Don Draper  Shift to Digital Media (Internet and Mobile) Ongoing  Disruption of Advertiser / Agency / Publisher Relationship  Rapid Growth in Programmatic / RTB  Fragmented Landscape = Opportunity 3 High Tech Meets Don Draper 4 Big Data Meets Don Draper 200MS: THE LIFE OF A PROGRAMMATIC RTB AD IMPRESSION 5 More Spending Will Shift to Mobile 50% 40% Ad Spending vs. Media Consumption % Time Spent 43% 42% Spending % Ad Spent $30B+ Market Opportunity (USA) 30% 26% 23% 20% 4% 22% 14% 10% 12% 10% 6% 0% 9% 3% Print Source: KPCB, Internet Trends 2013 Radio TV Internet Internet Ad = $37B Mobile Mobile Ad = $4B 6 Disruption of Advertiser / Agency / Publisher Relationship Video Other Ad Server Mobile Exchange Advertisers DSP $1.00 Self Serve Display Data Platform Intermediary Tax $0.60 Publishers $0.40 7 Rapid Growth in Programmatic RTB Ad Sales Market (US) $20 $18 $3.8 $16 $14 $3.1 Video $12 $6.8 $2.0 $10 Desktop Display $4.9 $8 Mobile $2.9 $1.1 $6 $4 $2 $0 $1.4 $0.1 $0.1 $2.9 2013 $0.5 $0.5 $3.8 2014 $4.9 2015E $6.5 $7.1 $7.5 2016E 2017E 2018E Source: BI Intelligence, The Programmatic Advertising Report; 8/29/2014 8 Fragmented Industry = Consolidation Opportunity 9 AGENDA I. Disruption and Consolidation II. Growth Drivers III. The Holy Grail IV. Industry Consolidation V. Trends and Predictions 10 Major Growth Drivers  Programmatic and Real-Time Bidding  Cross-Screen Advertising  Growth in Mobile Usage  Video Advertising  Improved Analytics and Attribution 11 AGENDA I. Disruption and Consolidation II. Growth Drivers III. The Holy Grail IV. Industry Consolidation V. Trends and Predictions 12 Challenges of Mobile Advertising Limited cookies/device identification Current mobile targeting solutions rely on guesswork, probability Difficult to prove ROI 13 Leveraging Big Data 4Info used advanced technologies and geocoding to map every U.S. household to lat / long. 4Info analyzed billions of ad requests using patented clustering algorithms. Ad Requests Ad Requests Ad Requests Ad Requests Ad Requests Ad Requests Ad Requests Ad Requests Ad Request(s) Ad Requests Ad Requests Ad Requests 14 Persistent Mobile ID Enables Cross-Screen Campaigns Enabling Targeting and Attribution Across Screens Targeting Attribution Frequent Shopper Data 152 Million Point-of-Sale Data Warranty Registrations Panels & Surveys 101 Million Credit Card Data Attribution Platforms 300 Million 15 4INFO Case Study: BuyerVision Mobile Situation Custom Campaign  Challenge: New Product Launch Category:  Approach: Drive awareness Target:  Success criteria: Payback for media spend, incremental volume  Target 2: Category B (25%) Sports Drinks  Target 1: Category A AND Category B (75%) Results The average household spend on mobile was almost double that of display $587k Incremental Sales Reach: 2 MM Households Impressions: 8M Payback (per $1 spent) $4.86 Source: NCS Sales-Effect Analysis 16 Public Companies Have Lost Value but Still Have Cash $70 CRTO $60 $50 $40 MRIN MM FUEL RUBI $30 SZMK $20 TRMR $10 TUBE $0 Source: CapitalIQ and Woodside Capital Partners estimates; 9/4/2014 17 Notable M&A Transactions in 2014 18 AGENDA I. Disruption and Consolidation II. Growth Drivers III. The Holy Grail IV. Industry Consolidation V. Trends and Predictions 19 Trends and Predictions  Video, Mobile, Native Grow Faster Than Display, Search  Increased Verticalization by Brands and Agencies  Consolidation of Adjacent Players -> Enterprise Advertising Management Systems (EAMS)  Programmatic Extends to Old School Television  Apple / Google Enter Mobile Payments with Attribution Loop  Google, Apple, Facebook, Amazon, Adobe, SFDC, AOL, Microsoft, Oracle, Yahoo Extend Their Reach  Waves of Acquisition: Ad Exchanges, DSPs, Video, Mobile, Cross-Screen, Attribution 20 WCP Contact Info  WCP Research Ed Bierdeman Software Analyst and Managing Director +1 650 387 5204 [email protected] Marshall Senk Software Analyst and Managing Director +1 949 284 0599 [email protected]  WCP Banking Tricia Salinero Managing Director +1 650 421 6547 [email protected] Ron Heller Managing Director +1 650 513 2762 [email protected] 21 WCP Office Info – Silicon Valley and UK Presence Silicon Valley Offices 1530 Page Mill Road, Suite 200 Palo Alto, California 94304 Tel: +1 650 513 2775 UK Offices Ibex House 42-47 Minories London, EC3N 1DY, UK Tel: +44 7989 384590 22 Q&A Q&A 23 Upcoming Events  Internet of Things Seminar -- November 2014, Date TBD  Open Stack Seminar -- December 2014, Date TBD  Mergers and Acquisitions in Silicon Valley Gathering -- January 21 & 22, 2015 24 MASiV Gathering – January 21 & 22, 2015 Representative 2014 Attendees: Consumer Internet and Mobile: Andreessen Horowitz – Jamie McGurk, Partner Deloitte – Garrett Herbert, Partner, M&A Google – Dave Sobota, Sr Dir, Corp Dev Intuit – Kevin Jacques, Director, Corp Dev Opera Software – Erik Harrell, CFO Square – Rishi Garg, Head, Corp Dev Telefonica Digital – Jennifer Vancini, Sr Dir, Bus Dev VISA – Lester Liu, Global M&A and Corp Dev Yahoo! – Steven Fan, Mobile Corp Dev Cloud and Enterprise: Autodesk – David Hindley, Sr Dir, Corp Dev Box – Niall Wall, SVP, Business and Corp Dev BMC Software – Clarence Hinton, VP, Corp Dev Citrix – Mike Cristinziano, Corp VP EMC – Matt Olton, SVP, Corp Dev IBM – Claudia Munce, VP, Strategy and Venture Salesforce – John Somorjai, SVP, Corp Dev Samsung – Kevin Morrow, VP, Partnership & Bus Dev SAP – Monty Gray, Corp Dev SAP Cloud – Roy Ng, SVP and COO Storm Ventures – Jason Lemkin, Managing Director 25