July 2015

Top 10 UA Trends

2013 2014 2015 2016 2017 2018 2019

$195.6 B

$166.6 B

$133.7 B

$101.4 B

$68.7 B

$42.6 B

$19.2 B

Mobile Advertising Budgets Are Growing

2

Top advertisers increasing app install spends with 47.2% CAGR projected through 2019.

eMarketer US Mobile Video Advertising Report - June 2015 and AdColony Spring 2015 Top 100 Grossing Developer Survey

30%

70%

Increasing Not Increasing

App Install Budgets US Mobile Advertising Market

Quality Over QuantityQuality is king as an app install campaign KPI.

3

Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

60%

70%

80%

90%

100%

96%

82%81%

78%78%

TargetingServicePriceVolumeQuality of User

Q: How important is each of the following in terms of evaluating ad network and UA campaign

performance?

App Install Campaigns Continuing to Become More GlobalTop grossing developers are taking over the world for app installs.

4

Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

17%

83%

Localize Assets Don’t Localize

42%

15%

42%

10+ 5-9 1-4

41%

59%

Increasing Geos Maintaining

Expanding Geos in 2015 Localization Regions Localized For

Consolidation is UnderwayTop advertisers are relying on fewer, top performing partners.

5

Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

9%

30%

61%

Consolidating Neutral Not Consolidating

2015 Mobile LumaScape

Growth in Traditional MediaTelevision, out-of-home and print all growing.

6

Source: AdColony Q1 2015 Top 100 Grossing Developer SurveyTV Out of Home Print

7%

15%

35%

2%

6%

22%

Jul'14Jan'15

Top apps are becoming franchises and are being supported with ad spend across traditional marketing channels.

As on-device marketing becomes increasingly competitive, developers are looking are more traditional off-platform marketing opportunities

Channel Excitement

7

Video is Most Effective and ExcitingMobile video ads rank #1 in UA effectiveness against campaign objectives

Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

98%93%

72%

37%32%

28%26%19%19%

13%

Free App NetworksOffer WallsPlayable AdsNative AdsDisplay (banners)Direct DealsCross-promoDisplay (interstitial)Social (Facebook)Mobile Video Ads

50%

22%

9%9%

2%2%2%4%

OtherOut of HomeInterstitialsBannersTelevisionPlayable AdsSocialVideo

Channel Effectiveness

2013 2014 2015 2016 2017 2018 2019

$6.9 B

$6.0 B

$5.1 B

$3.9 B

$2.6 B

$1.5 B

$0.7 B

Video is Exploding

8

Top advertisers increasing campaign spend in video, with a 52.61% CAGR projected through 2019.

eMarketer Worldwide Ad Spend March 2015 and AdColony Spring 2015 Top 100 Grossing Developer Survey

6%

13%

81%

Increasing Neutral Not Increasing

Video is Expanding

9

Top advertisers utilize a mix of full screen 16x9 and in-feed 4x3 video.

Q1 IN-FEED VIDEO GROWTH

Trend Toward Shorter Format Video

10

:10 :15 :20 :25 :30

INSTALL RATES

20-22 seconds is ideal for full-screen video, 6-8 seconds for in-feed.

CTR

:15 :20 :30 :15 :20 :30

CVR

Methods Used

Data is ExplodingTop advertisers rely on look-alike modeling with mixed interest in retargeting.

11

Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

Look-Alike Retargeting Not Effective Neutral Effective

Look-Alike Effectiveness

Not Effective Neutral Effective

Retargeting Effectiveness

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