15 Stratton Street London W1J 8LQ, United Kingdom

10 rue du Mont Thabor

75001 Paris, France

October 23rd, 2012

Ad Tech Event London

Who IS CLIPPERTON FINANCE ?

Values TOMBSTONES

Multi-LOCAL Research

Who are We ?

TOMBSTONES

Multi-LOCAL Research

Independence Loyalty Intuitu Personae Selectiveness

Who are We ?

Values TOMBSTONES

Multi-LOCAL Research

Who are We ?

Values

Multi-LOCAL Research

$150 million

$10 million

Who are We ?

Values TOMBSTONES

Multi-LOCAL Research

Who are We ?

Values TOMBSTONES

Research

Who are We ?

Values TOMBSTONES

Multi-LOCAL Research

Who are We ?

Thought Leadership Transactions Research papers

SOCIAL GAMING Secondary placement

Seller Nicomvest

Online gaming

Social Casual Gaming

Social Mobile Gaming

Research paper on Social gaming

E-COMMERCE Acquires Social Commerce

Second hand fashion

Private Placement

eCommerce Private Sales

Research paper on EU E-Commerce (Groupe Casino)

Buy-Side

AD-TECH New TV sell-side platform

Audio Video Ad Server &

measurement

Nov-09 Travel Affiliation sold to Research paper on

Ad Technologies

Private Placement Buy-Side

Private Placement Private Placement

Private Placement Private Placement Private Placement

Sell-Side Sell-Side

Sell-Side

Why Focus on AD TECH & Online Advertising ?

2005 2011

0.9bn Internet Users 2.1bn +15% (worldwide)

0.16 Access POINTS 0.39 +16% (worldwide)

6h Time Spent Online 13h +14% (US)

18% Online Buyers 34% +11% (EU)

Strong & Steady Usage Growth… CAGR

2005-11

200320042005 2006 2007 2008 2009 2010 2011 2012 2013 2014

9 14 20 29 39

49 52 60

71 82

94 105

CAGR 2003-14 +25%

Online Advertising Revenue & Forecasts (2003-2014)

Source: Clipperton Finance analysis, JPMorgan, Zenithoptimedia

… Has Attracted an Increasing Amount of Advertising Dollars Online

2005 2006 2007 2008 2009 2010 2011 2012

1 6 6 5 3 5 3 3

19

39 52 57

31

51

62

35

… Which in turn Led to Sustained Investments (but subject to economic stress)

Q4’12 Est.

Private Placements in Digital Advertising Businesses (number of $10m+ transactions)

20

45

58 62

34

56

65

51

N.. America Europe

… AND An ever more

COMPLEX ECOSYSTEM!

Advertisers Publishers

Publishers

Publishers

Age

ncie

s

Ad Networks

Yesterday’s Ad Tech Ecosystem

Advertisers Publishers

Publishers

Publishers

Age

ncie

s

Ad Networks

Ad Exchanges

DSPs

Today’s Ad Tech Ecosystem

DMP

Ana

lytic

s

SSPs

Ad

Serv

ers

Ana

lytic

s

Ana

lytic

s

What Happens

NOW ?

INNOVATION Innovative tools

New formats

New devices

AUTOMATION Strong demand for automated solutions that increase overall market efficiency

CONSOLIDATION Ad tech space features active consolidation mechanics

What Trends are Driving the Market?

CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline”

CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline”

INNOVATION Innovative tools

New formats

New devices

AUTOMATION Strong demand for automated solutions that increase overall market efficiency

CONSOLIDATION Ad tech space features active consolidation mechanics

What Trends are Driving the Market?

New Tools Empower Advertisers

Sophisticated targeting & customization capabilities

Create tailored & highly-focused branding campaigns

Need for cross-media strategies

Branding campaigns lack adequate measuring tools

The typical indicators are suited for direct marketing, less for branding

TARGETING & Customization

Measurement & Analytics

New Formats: Video running the Show

Total InternetBrightRoll

Specific MediaADAP.TV

Google SitesTubeMogul

Tremor VideoVideology

SpotXchangeAuditude

Hulu

54% 42%

34% 31% 30%

24% 21% 20% 20%

17% 7%

… a segment in which Start-Ups have a card to play

Total Internet

/

$0

$5

$10

$15

$20

$25

$30

2010 2011 2012 2013 2014 2015 2016 2017

Video Rich media (excl. video)

Static image Text ads

Source: Forrester Research Online Display Advertising Forecast,

Display Advertising Market will be led by Video & Rich Media…

($B, 2010-2017) Video ad reach in the US – oct. 12

Source: Comscore

New Devices enable New Possibilities

Smartphone Tablet Connected TV

1.6 3.3

6.8

11.3

15.6

20.6 Rest of the world

+66% 5yr-CAGR

Source: Gartner, Deutsche Bank

Geo-localized Ads Interactive Formats LOCAL Ads In-App Display

New Possibilities in Sight

Augmented Reality …

Mobile Advertising Market ($B, 2010-2015)

INNOVATION Innovative tools

New formats

New devices

AUTOMATION Strong demand for automated solutions that increase overall market efficiency

CONSOLIDATION Ad tech space features active consolidation mechanics

What Trends are Driving the Market?

CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline”

Advertisers need greater confidence that their online investments are helping them achieve their brand goals. ”

“ Nielsen, “Beyond click & impressions”

“Interactive Is Ready To Lead Brand Campaigns”

It's time for marketers to wake up to the brand building potential of interactive channels because:

1. Interactive marketing is proven to create brand impact

2. Interactive tools offer marketers new ways to tell stories

3. People trust what they learn about brands online

“

”

Nate Elliott, Forrester:

The old model of branding revolves around TV*

TV

Performance Radio

Print Branding

Tomorrow’s branding model will be interactive

TV Performance

Radio Print

Branding Website

Internet Advertising

Internet Advertising

Source : Adaption of Nate Elliott’s diagram published in “The Interactive Brand Ecosystem”

INNOVATION Innovative tools

New formats

New devices

AUTOMATION Strong demand for automated solutions that increase overall market efficiency

CONSOLIDATION Ad tech space features active consolidation mechanics

What Trends are Driving the Market?

CONVERGENCE Convergence between “Performance” & “Branding”, Devices & Consumer “timeline”

The adoption of automated solutions

will wreak havoc on existing media-buying economics. ”

“ Shar VanBoskirk, FOrrester

Reallocation of Advertising Dollars: towards the Death of Ad Networks?

$5.00

$0,50

$2.00 $0.25 $0.35 $0.10

$1.80

Advertiser Agency AdNetwork

DataProvider

AdExchange

AdServing

Publisher

Current Value breakdown

(CPM, $)

An $10B+ opportunity?

Future breakdown: ad networks are gone ? (CPM, $)

$4,20

$0,40 $0.50

$0.75 $0.30 $0.10 $2,15

Advertiser Agency DSP DataProvider

AdExchange

AdServing

Publisher

Source : Tradedoubler “Digital Day”

Ad networks will transform or die. […] We bet broad, mass-reach ad networks will disappear as DSPs crush ad network margins.

“ ” Shar VanBoskirk, Forrester

INNOVATION Innovative tools

New formats

New devices

AUTOMATION Strong demand for automated solutions that increase overall market efficiency

CONSOLIDATION Ad tech space features active consolidation mechanics

What Trends are Driving the Market?

CONVERGENCE Convergence between “Performance” & “Branding” , Devices & Consumer “timeline”

Advertisers Publishers

Publishers

Publishers

Age

ncie

s

Ad Networks

Ad Exchanges

DSPs

Today’s Ad Tech Ecosystem

DMP

Ana

lytic

s

SSPs

Ad

Serv

ers

Ana

lytic

s

Ana

lytic

s

Publishers

Advertisers Publishers

Publishers

Age

ncie

s

Ad Networks

Ad Exchanges

DSPs

Today’s Ad Tech Ecosystem

DMP

Ana

lytic

s

SSPs

Ad

Serv

ers

Ana

lytic

s

Ana

lytic

s

1st Wave: 2007-2008

Ad Networks buy Ad Exchanges

2007

2008

2007

Publishers

Advertisers Publishers

Publishers

Age

ncie

s

Ad Networks

Ad Exchanges

Today’s Ad Tech Ecosystem

SSPs

Ad

Serv

ers

Ana

lytic

s

Ana

lytic

s

2nd Wave: 2009-2012

External Software Vendors Enter the Ad tech game

2009

2012

2012

Trad. Software Vendors

DSPs

DMP

Ana

lytic

s 2011

2009

Publishers

Advertisers Publishers

Publishers

Age

ncie

s

Ad Networks

Ad Exchanges

Today’s Ad Tech Ecosystem

SSPs

Ad

Serv

ers

Ana

lytic

s

Ana

lytic

s

DSPs

DMP

Ana

lytic

s 3rd Wave: 2013-2015

Vertical Consolidation Strategy?

Transversal Integration (mobile, video, …) ?

Continued Consolidation of Tools, SSPs/DSPs by Traditional Software Vendors. And more?

Total Funding (Venture, $m)

DEAL VALUE ($m)

CASH on CASH

buys 90 689

buys 18

buys 38 414 11x

buys 15 38 120 buys

Source: Thomson One, Venture Source, Crunchbase, Clipperton Finance estimates

Selected M&A transactions in Social Web

buys 33 300

- 59 buys

400 270

3x 27x 15x

9x 8x

buys 14 350 25x

buys 54 321 6x

-

Panel discussion

Jonathan Wolf Chief Product Officer

Martijn Hamann Partner - Board Director of Unruly,

Smartclip & Improve Digital

Mark Read CEO WPP Digital

Sorosh Tavakoli CEO