Introduction to Tapjoy

Aaron ChoiHead of Shanghai Operations

Agenda

1. Mobile Facts

2. Intro to Tapjoy

3. Tapjoy Network Audience

4. Distribution

5. Monetization

6. Selected Cases

1.) Mobile Facts

Apps are the Dominant Mobile Media

Source: Zokem, inMobi

Usage is Persistent Throughout the Day

• 85% of consumers “can’t live without their smartphone”

• 88% of consumers “use their smartphone every day”

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Source: Interpret: Mobile App Attitudes & Usage and Segmentation Research, February 2012

Consumers are Willing to Engage with Ads to Get PREMIUM Content

Source: Flurry Analytics, Dec 2011; Nielsen, 2011

Mobile Gaming is the #1 App Activity

U.S. Mobile App Consumption, Time Spent Per Category

Consumers average 47 minutes per day playing games

2.) Intro to Tapjoy

Founded: 2007

Headquarters: San Francisco

Offices: US, UK, France, China, Japan, South Korea

Reach: 1+ billion mobile consumers on Android, iOS, Windows Phone 7 & HTML5

Funding: $70.5 millionJ.P. Morgan Asset ManagementRho VenturesNorth Bridge Venture PartnersInterWest PartnersD.E. Shaw Ventures

Tapjoy

Tapjoy: Core Services

Discovery Engagement Monetization

Tapjoy is the leader in mobile app Distribution, Engagement, and Monetization

Intro to the Tapjoy Network

6,100+Apps in the Tapjoy Marketplace

1,200,000Daily Ad Engagements

150 millionUsers reached in Asia

390 millionMonthly Active Users

1+ BillionUnique Total Users

Selected Tapjoy Advertisers

Selected Tapjoy Publisher Partners

3.) Tapjoy Network Audience

Tapjoy Mobile Audience

1,000,000,000+

mobile devices

Female

Avg. age

College-educated

In Asia

Expanding Beyond Gaming Apps

20%

of apps in the Tapjoy network are outside of the gaming category & growing!

Example Apps• Communication Apps unlock more text messages• Entertainment Apps unlock more songs• Productivity Apps unlock more slide templates

4.) Distribution

Distribution

• Our platform is a real-time live bidding network. Our network will tell you where your offer will be slotted based on current competition

• Manage all your campaigns from one dashboard, including rewarded pay-per-install, non-rewarded installs, featured ads, and video ads simultaneously

• Targeting Capabilities:

• Country level geo• Similar apps• Device and OS targeting

1.3 Million + Daily Conversions

For a single app:

30K-60K+ installs/day per App

Pay-Per-Install

• Rewarded PPI offers represent the most significant revenue opportunity for mobile developers today and is the largest performing ad unit on our network.

• Free cross promotion for our publishing partners.

• Users can unlock additional content in your app while simultaneously discovering new apps.

• PPI on iOS is driven from Tapjoy.com

Pay-Per-EngagementEncourage users to completespecific actions within your app.

For example, “Play to level 2”, “Complete Tutorial”, “Share on Facebook”, etc.

Re-target users who have already installed your app, and have them return.

Tap Defense Case StudyMotivate new users to install Tap Defense and advance to level 3.

Results: 70% new users advanced to level 1021% returned to game the next day 6% new users monetized on first day

5.) Monetization

Business Model: App Store Top 25 Grossing

8%

92%

16%

84%

24%

76%

4%

96%

12%

88%

13%

87%

IN-APP PURCHASE PRICING PREMIUM PRICING (PAID APPS)

UNITED KINGDOM FRANCE GERMANY

UNITED STATES CHINA TOTAL

Source: iTunes App Store, May 2012

In-App Purchase Pricing apps (F2P) make up majority of app store “Top 25 Grossing”

1Tapjoy Mobile Value Exchange

I can earn coins by engaging with ads in Tapjoy’s Marketplace.

How it WorksI need more coins to build on my land in Triple Town.

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I can buy coins with real money.

Tapjoy Helps Developers Improve Monetization

On average, only 5% of mobile users will purchase virtual goods with real money

Paying Mobile Users = ~ 5%

other 95% of users!

Users can earn free virtual currency for in-app purchases in exchange for choosing to engage with an offer of their choice.

Tapjoy Monetizes the other 95% of Users

Non-Paying Mobile Users = 95%

She can buy Pet Points with real money.

She can earn Pet Points by engaging with ads in Tapjoy’s Marketplace.

How it Works: Vivian needs more Pet Points to hire another employee in Pretty Pet Salon.

Tapjoy Value Exchange

Vivian chooses to watch “The Avengers” movie trailer with Tapjoy and earns 59 Pet Points

Power of Choice

Tapjoy Offerwall

• Multiple revenue streams, on one offerwall

• 100% Fill Rate

• Users Double “Opt-in” = User Consent & Intent

• Instant User Rewards

Offer Types:

Video

CPA

PPI

PPE

Tapjoy Ad Units (In-App)

Standard Banners

Featured Banners(Full-Screen)

In-App Video

Offerwall

Tapjoy.com

Revenues can increase 6x!

Tapjoy.com is a cross-platform, HTML5, app discovery and virtual reward site with

over 9MM registered mobile gamers

Tapjoy.com can earn developers even more revenue from their apps

Many of our top developers promote Tapjoy.com inside their app with pop-up promotions

Tapjoy.com Promotions

Zombie Ace

Battle NationsKingdoms of Camelot

6.) Selected Cases

Glu Earnings Report: Direct Pay + Tapjoy

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Tapjoy increased Glu’s percentage of monetized DAU by 2x!

Direct Pay

Gun Bros

Contract Killer

Glu’s %-of-DAU monetized through Tapjoy matched the %-of-DAU monetized from Direct Pay

Sum

Glu Average

*All figured are taken from on Glu Mobile’s Q1 Earnings Report

Proprietary and Confidential Information of Tapjoy, Inc. Please do not copy or distribute.  © Copyright 2011 Tapjoy, Inc. All Rights Reserved. Tapjoy and the Tapjoy logo are trademarks or registered trademarks of Tapjoy, Inc. All third party logos and trademarks mentioned are the property of their respective owners.

Thank you!

Aaron Choiaaron.choi@tapjoy.com