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A Look atDigital Advertising’s FutureLon Otremba, Chief Executive OfficerJanuary 2016

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Bidtellect’s Mission

To be the world’s largest platform for paid content distribution

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Bidtellect’s Goals

Best Technologies/Products.Best People. Best Service.

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Industry Experts Leading with Technology

Founded in 2011 and funded by top-tier Venture firms and Angels.

Co-founded by John Ferber; founder/Chief Product Officer of Advertising.com; after acquisition by AOL, led product development efforts for AOL/Platform A, now part of AOL One, Verizon

CEO Lon Otremba, founding EVP CNET; founding COO & President, Mail.com; former EVP AOL; CEO Access 360 Media; Tylted. Former Executive Committee IAB; holder of two patents in mobile ad tech.

Executive team with backgrounds from CNET, AOL, Millennial Media, PointRoll, Shoplocal and Ask.com.

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Bidtellect’s Goals

Why did we start Bidtellect?

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People view native ads 53 percent more frequently than traditional ads.

Forbes: “6 Types Of Native Advertising And How Each Can Benefit Your Business”

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Native advertising can increase brand lift by as much as 82 percent.

Forbes: “6 Types Of Native Advertising And How Each Can Benefit Your Business”

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Purchase intent is 53 percent higher when consumers click on native ads instead of traditional ads.

Forbes: “6 Types Of Native Advertising And How Each Can Benefit Your Business”

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Native ads containing rich media can boost conversion by as much as 60 percent.

Forbes: “6 Types Of Native Advertising And How Each Can Benefit Your Business”

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The native advertising industry will reach $4.6 billion in revenue by 2017.

Forbes: “6 Types Of Native Advertising And How Each Can Benefit Your Business”

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Native ads are designed to fit so closely with a publication’s content that they appear to be part of a publication. At the same time, a reasonable consumer should be able to distinguish native ads from the publication’s original content. Native ads aren’t just good for brands; they’re also good for publications. Seventy-one percent of publishers report no negative reader response to native ads.

Forbes: “6 Types Of Native Advertising And How Each Can Benefit Your Business”

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Bidtellect’s Vision

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Bidtellect is using the word’s most advanced technologies to make

advertising better – for everyone.

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We see an ecosystem where consumers really like the ads.

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Where advertisers achieve real results and ROI.

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Where brands become publishers.

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55 Trends in Native Advertising 2016

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It’s tough making predictions, especially about the future.

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”- Yogi Berra

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11Shift to Native away from Display

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22 Content Discovery Becomes What Native Really Means

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There are over 1 billion Websites today; milestone reached Sep 2014.

(NetCraft Webserver Study, Oct ‘14)

Four Websites launched every 5 seconds.

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People discover content 3 ways:1. Search for it.2. It is shared with them.3. Find it when consuming other content.

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In a world where all media is pull vs push…

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…all content needs to be relevant. Including the ads.

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33 Engagement metrics drive KPIs

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Top Priorities for Content Marketers

2015 Content Marketing Institute

72%Create More Engaging Content

65%Better Understanding of What Content Is Effective – and What isn’t

57%Finding More/Better Ways to Repurpose Content

51%Finding More/Better Ways to Repurpose Content

41%Becoming BetterStorytellers

41%Better UnderstandingOf Audience

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Example: Bidtellect Engagement Score

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44 FTC will focus on monitoring – not enforcing.

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FTC Enforcement Policy Statement, December 22, 2015

“What’s the top takeaway? Transparency. It should be clear to consumers that what they’re looking at

is an ad. If a disclosure is necessary to avoid deception, make it clear and prominent.”

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55 ScaleScale

Scale

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Scale Matters – Scale is Here in Native

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Scale Matters – Scale is Here in Native

10 billionGLOBAL DAILY IMPRESSIONS

300 billionGLOBAL MONTHLY IMPRESSIONS

1.4 billionDAILY AUCTIONS

563 millionDAILY BIDS

1.5 millionWEBSITES & MOBILE

APPLICATIONS

98%US UNIQUE REACH

344 millionWORLD WIDE REACH

242TARGETABLE COUNTRY

CODES

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Scale Matters – Serviced Auctions

29-Mar 2-May 5-Jun 9-Jul 12-Aug 15-Sep 19-Oct 22-Nov26-Dec 29-Jan 4-Mar 7-Apr 11-May14-Jun 18-Jul 21-Aug 24-Sep 28-Oct 1-Dec 4-JanMar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan

Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr12014 2015 2016

0

100000000

200000000

300000000

400000000

500000000

600000000

700000000

800000000

900000000

Serviced Auctions (Actual scale 10x)

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We see a world where digital ads matter to people.

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A world where advanced technologies make it possible for consumers to

engage with ads as much as content.

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A world where the ads are as valuable as the content.

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If content is king, paid content distribution is KING KONG.