Disclaimer and Privacy This presentation was prepared in good faith for the attendees of the Propel Conference only. It is not to be shared or distributed. The examples and logos used in this presentation are for illustrative purposes only and do not in anyway reflect our views on those businesses or make any claims as to their strategies and business plans.

“From foundation to fun”

Why 2013 is going to be an exciting year for digital media

Benchmarking and revenue generation for media owners!

We have unique business performance data, insights, products and in-house expertise to help media owners

maximise revenue from digital media !

Our Media Owner Tracker tool benchmarks over 100 aspects of media owner performance!

!These benchmarks cover all aspects of business

performance such as creative formats, rates, data use, programmatic trading, technology, revenue share, mobile,

campaign operations, video, creative solutions, subscriptions, e-commerce and content!

!We have over 5 years of performance data in our Pool!

!The aggregate trends within this specialist data helps us understand what will influence commercial success in

2013!

2012 – Laying the foundations It was about trading, ATDs, technology, product development, structures, platform development, content distribution, out-sourcing, learning, up-skilling and processes = A year of planning

2013 – Building a premium future Building on the fundamental actions of 2012, the (media) empires strike back, the resurgence of the media brand, better quality solutions, smarter data management, more innovation, more content deals, better platform integration = A drive for greater engagement

Agency ConsolidationThe rise of ‘central services’ and of the ‘business/

planning’ agencies!

Smarter desks, agency DMPs, fewer deals. Contact confusion. A bigger/better role in 2013 for agencies with their clients!

*Other desks and agencies also impact this market. Logos above are examples only

Small data Media owners will make smarter use of vertical, first

party data and audience extensions to stage a ‘premium fight back’!

Quality audience + mass reach extension now possible, single customer view, disassociation of media and data key. Need to understand the revenue opportunity and the risks.!

E-commerce enters the media worldBetter use of e-commerce data within media will be

hugely motivational (and also terrifying) for the market. Expect a big push for budget in 2013.!

A real challenge to the existing order. The emergence of ‘commercially driven display’. You need to know the value of

your data (and an ability to monetise it) in this ecosystem!

Further blurring of market definitions Deep consumer data, programmatic media and a more

liquid market, will help blur the lines between client, media owner and agency. More brand trading desks.!

Genuine challenge to traditional relationships, roles and operations. Re-assessment of how you can use ‘recent’ data. Importance of specialism/vertical. Smarter consumer VRM?!

The rise of commercial content

Agencies & advertisers will be more committed to driving digital brand spend by creating and trading content!

Content in the media mix a scale reality. Greater focus on ability to sell, measure and implement content. Re-

assessment of media owner commercial models and creating multiple revenue streams from the same assets. !

Further evolution of High Impact Formats The desire for engagement will make ‘High Impact

Formats’ evolve even further!

Expect more solus ads, additional innovation and a more competitive market. Scalability in this market = big spend

increase. Format selection and development is key.!

Video market driven by insightA renewed desire for incremental reach from unified

research in video. Bringing together fragmented hardware and distribution the key market focus.!

Total x-platform reach by plan/programme, engaging formats, increase in single buying/reporting requirements.

Is there a role for your business in this video market? !

The growth of native advertising The desire to innovate within premium environments will mean a much greater focus on ‘native’ advertising!

All parties looking to add unique value. Programmatic world = scale opportunity. Sales proposition question marks for media owners. Editorial/sales collaboration. Who owns the creative!?!

Phase 3 of mobile advertisingWe’ll see more native ads (FB, Twitter), location (O2/

Weve) and more integrated campaigns in 2013!

Acceleration of responsive design. Content = Advertising. Significant closing of the gap between consumer usage

and budgets through higher quality planning and creative.!

2013 will see 75% of us with a smartphone. 1bn of those worldwide. Mobile is 10% of our time but only 1% of media spend. The iPad alone is bigger than McDonalds. Mobile is 18% of search. FaR Pool shows 26% of media owner imps

accessed by mobile but < 10% of revenue, 43% of Marketers think it is the number 1 priority for 2013. I could go on…!

The emergence of the “media non-owners”A change from smart consumer products, to smart

communication products!

New ad formats. Greater collaboration between this world and ‘traditional’ media owners. Spotlight on content

distribution (and where ‘ad’ messages end up). New models available for content monetisation if you get it right.!

More ‘personalisation’ and ‘automagic’ Data and data partnerships helping create more

tailored content and commercial solutions!

Huge drive for single sign-in/customer views. An ability to monetise that at scale. More data/b2b partnerships

opportunities. Consumer buy-in to personalisation means ‘personalised media planning’ a reality.!

A view for 2013 from FaR!

1.  Agency centralisation/consolidation 2.  Premium publisher data use 3.  Ecommerce in media 4.  Publisher trading desk 5.  Branded content and content trading 6.  High impact formats 7.  Video engagement with the metrics to match 8.  Native advertising blossoms, at (increased) scale 9.  Mobile Phase 3 10. More ‘media-not-owners’ on the plans 11. Personalisation and automagic raises the bar

And prepare for ‘viewable impressions’ and ‘ad verification’ within all this

There are four really important things you need if you are to maximise revenue from this market!

Skills ! Market Intelligence!

Scalability! Multiple revenue!

Where FaR could help!

Access to unique commercial media performance data!!

The tools to assess and benchmark all aspects of your business operations!!

Data and advice regarding share, revenue potential and audience pricing!!

Data trading and programmatic sales strategy, pricing and delivery!!

Monetising content and content partnerships !!

Integrated creative solutions development!!

Mobile and video commercial strategy and implementation!!

Optimise current revenue streams – create whole new revenue streams!!

Robust data-driven advice on advertising, subs, data and ecommerce revenue!

Thank you very much for your time HenryRowe@FaRPartners.com 07808 921 835 020 7935 5936 Twitter @FaRPartners