PRIVATE MARKETPLACES: THE RATIONALE AND METHODOLOGY

ABOUT RUBICON PROJECT

Rubicon Project is leading a revolution of the online advertising ecosystem to automatethe buying and selling of display media through the innovation of a next-generationinfrastructure and a powerful, open marketplace.

World's Leading Real-Time Trading Platform

o Trusted by 450 Premium Publishers

- 100 of Comscore 500 (U.S.)

- 32 of Comscore 150 (U.K.)

- 33 of Comscore 60 (FR)

o REVV processes more than 150 billion ad transactions per month, 40 billion in Europe

o REVV processes 1+ TRILLION bids/month

o 650M global uniques

o 600+ ad networks & exchanges

o 60+ Demand Side Platforms

o Non-Competitive (no advertiser access)

o Transparent (not "black box")

World's Largest Display Advertising Marketplace

Fastest growing advertising tech company:

o Founded by ad server pioneers in 2007

o 200+ employees in 5 countries

o $60M funding

o Key Acquisitions:

- OthersOnline: audience affinity analytics

- SiteScout: ad security

- Fox Audience Network

IMPRESSIONS BY COUNTRY

40 billion

monthly

impressions

in Europe

10B

9B

5B1.2B

2.4B

2.6B

1.2B

1B

ANO RTT

Servers(CPU Cores)

90 (368)

1500 (5400)

Storage 50 Terabytes2 Petabytes

(2000 TB)

Network 2 Gigabits 40+ Gigabits

Data 6 PBs from 45 BN logged events moved daily

REAL TIME TRADING INFRASTRUCTURE

LOOKING FOR PRECEDENT

EVOLUTION OF AN INDUSTRY

NASDAQ AUTOMATES TRADING

BUYING IS DEMOCRATISED

ANOTHER HISTORICAL ANALOGY

VS.

Box Office

Hotel VOD

Airline Licensing

Home PPV/VOD

Retail DVD

DVD by Mail

CHANNEL MANAGEMENT

$10.6BN $26.0BN

Sources: 2009 Domestic US Receipts, MPAA, DEG, Strategy Analytics

A RENAISSANCE OF DISPLAY?

DISPLAY UP £236MM!

SPEND FOLLOWS TIME SPENT

Time Spent 23% Time Spent 25%

H1 2010 H2 2010

Revenue 3%Revenue 5%

AND TO GOOGLE…

“year-over-year

display spending

from our largest

1,000 advertisers

has doubled”

Brad Bender

Director of Product

Management, Display

AdExchanger September

14, 2011

TOP 10 PUBLISHERS CAPTURE 72% OF SPEND

0

20

40

60

80

100

% Share of total revenues

91%TOP 50

TOP 25

TOP 10

83%

72%

1002 2002 3002 4002 5002 6002 7002 8002 9002 0102

Q4 2010

MANUAL DISPLAY ORDER PROCESS

Media Partner Flight Placements CPM Monthly Spend Total Spend Total Impressions

Publisher 1 Jan 1 - March 31 ROS 10.00$ 35,000.00$ 105,000.00$ 10,500,000

Publisher 2 Jan 1 - March 31 ROS 8.00$ 25,000.00$ 75,000.00$ 9,375,000

Publisher 3 Jan 1 - March 31 ROS 12.00$ 45,000.00$ 135,000.00$ 11,250,000

Ad Network 1 Jan 1 - March 31 RON 0.75$ 50,000.00$ 150,000.00$ 200,000,000

Ad Network 2 Jan 1 - March 31 RON 1.00$ 50,000.00$ 150,000.00$ 150,000,000

Ad Network 3 Jan 1 - March 31 RON 1.15$ 50,000.00$ 150,000.00$ 130,434,783

Ad Network 4 Jan 1 - March 31 RON 0.85$ 50,000.00$ 150,000.00$ 176,470,588

Ad Network 5 Jan 1 - March 31 RON 1.00$ 50,000.00$ 150,000.00$ 150,000,000

Ad Network 6 Jan 1 - March 31 RON 1.25$ 50,000.00$ 150,000.00$ 120,000,000

Ad Network 7 Jan 1 - March 31 RON 3.00$ 50,000.00$ 150,000.00$ 50,000,000

Ad Network 8 Jan 1 - March 31 RON 2.25$ 50,000.00$ 150,000.00$ 66,666,667

Ad Network 9 Jan 1 - March 31 RON 1.25$ 50,000.00$ 150,000.00$ 120,000,000

Ad Network 10 Jan 1 - March 31 RON 1.00$ 50,000.00$ 150,000.00$ 150,000,000

DSP Jan 1 - March 31 RON 0.75$ 50,000.00$ 150,000.00$ 200,000,000

Total 1,965,000.00$ 1,544,697,038

TYPICAL MEDIA PLAN

AGENCY HOURS PER BUYING POINT ON PLAN

15 HOURS

SYSTEMIC INEFFICIENCIES

28% vs. 2%

A NEW STRATEGY FOR A NEW PARADIGM

Strategy

*Publishers, are you listening?

REAL-TIME TRADING IS HAPPENING NOW!

RTB: FASTEST GROWING CATEGORY IN DISPLAY

RTB IN THE MARKET RTB ON REVV

203% 81%

2011 2012 2012

>50%

RTB Display Growth (US), IDC

RTB: OPPORTUNITIES FOR PUBLISHERS

publisher A

before RTB

publisher A

after RTB

C P M

25%LIFT ACROSS ALL

INVENTORY*

Protected RTB™ can beturned on and runningwithin 1 day.

Adding an immediaterevenue lift while keepingyour inventory protectedfrom channel conflict,pricing arbitrage, & dataleakage. 2-5X

CPMs from RTB

*For publishers who optimize allpremium non-guaranteed inventory,including RTB-enabled impressions, onREVV

BENEFITS OF REAL TIME TRADING

o Operational Efficiencies

o Connect with Premium Publishers and Inventory

o Leverage Existing Relationships

o Gain Preferential Access and Increase Reach

o More Targeting Flexibility, Transparency, Control, and Insight

o Total Advertiser and Pricing Visibility

o Improved Ad Quality

o Higher CPMs

o Access to New Demand

o Increased Share of RTB Spend

o Increased Operational Efficiencies

o Complete Channel Management

Trading Desks Publisher

HOW IT STARTED – THE RTB “WEDGE”

RTB

Performance Blind Networks

CPM

Class 2Non-Guaranteed

Class 1Premium

WHERE IT’S GOINGG

uar

ante

ed

No

n-G

uar

ante

ed

RTB inventory should approach price levels previously reserved for direct

guaranteed deals, especially with greater exclusivity

PRIVATE MARKETPLACE STRATEGY

Verizon

AT&T

Disney

eBay

Gap

Time Warner Cable

Citibank

Dell

Home Depot

Nissan

American Express

Sprint

Virgin Mobile

Hewlett Packard

IBM

Budweiser

General Motors

Capital One

Allstate

Geico

Nike

Adidas

Mastercard

Visa

Comcast

DirectTV

Volkswagen

ING Direct

Hotels.comGoogle

Safeco InsuranceTrend Micro

Chrysler

Kayak

HSBC

JPMorgan Chase

Kellogg’sSony

Solar City

Dodge

Barclays

T-Mobile

State Farm

Sonic

Expedia

BMWHilton Hotels

Toyota

Heineken

Coors

Sears

Jeep

Microsoft

Best Western

United

Dish Network

Domino’s

YahooSamsung

Boost Mobile

Hyundai

Staples

Mitsubishi

Harrah’s

Choice Hotels

MonsterCareerbuilder

Levi’s

Southwest Airlines

Groupon

Living Social Amazon

MBNA

Papa John’s

Kroger

Dick’s Sporting Goods

Footlocker

Finish Line

McDonald’s

Discover

Ticketmaster

Bose

Lexus

Reebok

Cabela’s

Orange

OfficeMaxNordstrom

Best Buy

Cingular Motorola

Club Med

Delta

Burger King

Subway

Axe

Old Spice

Choice Hotels Progressive Direct

Mazda

Metro PCSBankwest

Nokia

JetblueCars Direct

Coke

PepsiJCPenney

Lowe’s

La Quinta

Aflac

Network SolutionsVista Print

American Airlines

Ford

FreeCreditScore.com

MGM Grand

Bank of America

Equifax

CanonBlue Cross Blue Shield

Target

GMCIntel

Kodak

Liberty Mutual

Frequency

Verizon

AT&T

Disney

eBay

Gap

Time Warner Cable

Citibank

Dell

Home Depot

Nissan

American Express

Sprint

Virgin Mobile

Hewlett Packard

IBM

Budweiser

General Motors

Capital One

Allstate

Geico

Nike

Adidas

Mastercard

Visa

Comcast

DirectTV

Volkswagen

ING Direct

Hotels.comGoogle

Safeco InsuranceTrend Micro

Chrysler

Kayak

HSBC

JPMorgan Chase

Kellogg’sSony

Solar City

Dodge

Barclays

T-Mobile

State Farm

Sonic

Expedia

BMWHilton Hotels

Toyota

Coors

Sears

Jeep

Microsoft

Best Western

United

Dish Network

Domino’s

YahooSamsung

Boost Mobile

Hyundai

Staples

Mitsubishi

Harrah’s

Choice Hotels

MonsterCareerbuilder

Levi’s

Southwest Airlines

Groupon

Living Social Amazon

MBNA

Papa John’s

Kroger

Dick’s Sporting Goods

Footlocker

Finish Line

McDonald’s

Discover

Ticketmaster

Bose

Lexus

Reebok

Cabela’s

Orange

OfficeMaxNordstrom

Best Buy

Cingular Motorola

Club Med

Delta

Burger King

Subway

Axe

Old Spice

Choice Hotels Progressive Direct

Mazda

Metro PCSBankwest

Nokia

JetblueCars Direct

Coke

PepsiJCPenney

Lowe’s

La Quinta

Aflac

Network SolutionsVista Print

American Airlines

Ford

FreeCreditScore.com

MGM Grand

Bank of America

Equifax

CanonBlue Cross Blue Shield

Target

GMCIntel

Kodak

Liberty Mutual

Frequency

Heineken

PRIVATE MARKETPLACE STRATEGY

HeIneken

Verizon

AT&T

Disney

eBay

Gap

Time Warner Cable

Citibank

Dell

Home Depot

Nissan

American Express

Sprint

Virgin Mobile

Hewlett Packard

IBM

Budweiser

General Motors

Capital One

Allstate

Geico

Nike

Adidas

Mastercard

Visa

Comcast

DirectTV

Volkswagen

ING Direct

Hotels.comGoogle

Safeco InsuranceTrend Micro

Chrysler

Kayak

HSBC

JPMorgan Chase

Kellogg’sSony

Solar City

Dodge

Barclays

T-Mobile

State Farm

Sonic

Expedia

BMWHilton Hotels

Toyota

Coors

Sears

Jeep

Microsoft

Best Western

United

Dish Network

Domino’s

YahooSamsung

Boost Mobile

Hyundai

Staples

Mitsubishi

Harrah’s

Choice Hotels

MonsterCareerbuilder

Levi’s

Southwest Airlines

Groupon

Living Social Amazon

MBNA

Papa John’s

Kroger

Dick’s Sporting Goods

Footlocker

Finish Line

McDonald’s

Discover

Ticketmaster

Bose

Lexus

Reebok

Cabela’s

Orange

OfficeMaxNordstrom

Best Buy

Cingular Motorola

Club Med

Delta

Burger King

Subway

Axe

Old Spice

Choice Hotels Progressive Direct

Mazda

Metro PCSBankwest

Nokia

JetblueCars Direct

Coke

PepsiJCPenney

Lowe’s

La Quinta

Aflac

Network SolutionsVista Print

American Airlines

Ford

FreeCreditScore.com

MGM Grand

Bank of America

Equifax

CanonBlue Cross Blue Shield

Target

GMCIntel

Kodak

Liberty Mutual

Frequency

PRIVATE MARKETPLACE STRATEGY

AGENCY PATCH EVALUATIONA

VE

RA

GE

O

RD

ER

V

AL

UE

$$

$

F R E Q U E N C Y O F B U Y S ( x / y e a r )

Size of the circles represents complexity of campaign

Real Time Bidded Buys

Campaign sold direct where cost of sales, trafficking, and ops/actgcosts ate 35% of net

HOW PREPARED ARE YOU?