Table of Contents TV IS NOT JUST A BOX IN YOUR HOUSE TV AD MARKET: OVERVIEW NATIONAL MEASUREMENT CHALLENGES LOCAL MEASUREMENT CHALLENGES

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1 WHITE PAPER AN ADVERTISER S GUIDE TO PROGRAMMATIC TV Table of Contents INTRODUCTION TV IS NOT JUST A BOX IN YOUR HOUSE TV AD MARKET: OVERVIEW NATIONAL TV MARKET LOCAL TV MARKET NATIONAL MEASUREMENT CHALLENGES LOCAL MEASUREMENT CHALLENGES ADDRESSABILITY VS. CONTEXTUAL TARGETING AVAILABILITY OF ADDRESSABLE TV TV AD MARKET: INEFFICIENCIES PROGRAMMATIC TV: THE PROMISE HOW DOES IT WORK? WHAT SHOULD THE TRANSACTION CURRENCY OF PROGRAMMATIC TV BE? BARRIERS TO PROGRAMMATIC TV BREAKING DOWN BARRIERS A LOOK AHEAD GLOSSARY

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3 INTRODUCTION: Television is many things... To brand marketers, TV is the original brand-building medium the largest screen in the house that rightly commands the lion s share of their ad dollars. TV ad buying is also one of the last frontiers largely untouched by buying automation where billions of dollars are spent largely based on the previous year s negotiated rates and targeting is limited to age and gender. But that is starting to change. This white paper is designed to serve as a roadmap for marketers on TV s past, present and future. At the outset, we should define what programmatic TV means. In its white paper on the subject, emarketer defines programmatic TV as an automated, technology-driven method of buying and delivering linear TV ads. This paper takes a broader definition by including video on demand (VOD) and addressable TV. Of course, to consumers all of these distinctions are nonsense -- we live in a world where viewers move seamlessly between devices and platforms. The primary goal for any advertiser is to mimic this behavior in their ad buying, moving toward a centralized approach that is agnostic about how or where an ad gets watched. 2

4 TV is not Just a Box in Your House It is worth pausing to ask: what does TV actually mean in today s world? After all, viewing now takes place in many forms across many screens. From a viewer s perspective, this is the golden age of TV. Not only is the content better than ever, but viewers can now stream TV shows, live sports, movies and much more on nearly every screen. CONNECTED TV Internet-enabled TV and apps Roku, Hulu, Amazon Prime, AppleTV BROADCAST TV Over the air broadcast and broadcast networks ABC, CBS, NBC, FOX, CW CABLE NETWORK TV Linear cable TV content Discovery Network, ESPN, A&E VIDEO ON DEMAND via TV or web Xfinity Video on Demand, DIRECTV On Demand For their part, cable companies continue to innovate their offerings. Most cable TV providers let subscribers watch both live TV and video ondemand on almost any device. Pay TV also has a broad array of content available and retains its hold on television viewing for most American households. At the same time, the increase in over-the-top (OTT) content presents both new opportunities and challenges for advertisers vying for consumer attention. The explosive growth of video has not escaped the notice of advertisers, who are following viewers online. Allstate, for instance, recently revealed plans to move 20% of its TV ad dollars into digital advertising by 2015, following similar moves by brands like Mondelēz International and MasterCard. TV EVERYWHERE via web HBO GO, Xfinity TV Go, DIRECTV Everywhere FULL EPISODE PLAYER via Web ABC.com, ESPN.com, AMC.com 3

5 TV Ad Market Overview In the U.S., the sellers of television ads can generally be divided into four categories: broadcasters (i.e. ABC, NBC), cable networks (i.e. ESPN, Discovery), distributors like cable companies or satellite providers (i.e. Comcast, Cox) and content syndicators (i.e. Sony Syndicated TV, King World). The ad market is broken up into local (spot) and national advertising. The local advertising market is used by both global brands and regional businesses to advertise locally. The national advertising market is purchased through broadcasters and cable networks to reach a national footprint. National TV Market The national TV market is led by broadcasters, cable networks and syndicators who are constantly battling for advertising budgets. Campaigns are mostly executed on a GRP basis but negotiated on a target demo CPM with year-over-year increases against prior pricing benchmarks. These buys are often split between upfront and scatter markets. The upfronts -- held annually in New York -- are where TV content owners premiere their fall show lineups and sell the bulk of their inventory to advertisers for the entire programming year. Broadcasters often book 70-80% of their inventory during the upfront, and cable networks commit 50-60%. The upfronts typically involve networks negotiating price increases against the previous year s benchmarks for a specific buyer. The scatter market provides a way for an advertiser to buy TV inventory on a quarterly or monthly basis that occurs much closer to airtime. Historically, the prices are typically higher than the upfront, providing a disincentive for advertisers to pass on the upfront markets and wait to buy in the scatter market. It is worth noting that this model works because TV advertising is a supply-constrained market similar to premium digital video -- this would not work in mediums like digital display because of a large surplus of supply. TV ad spots are typically planned on a GRP basis against Nielsen age and gender demographics, and bought using on-target CPMs or CPPs that are delivered by the national content supplier. Nielsen national panel ratings are used to project actual delivery against those GRPs throughout the year. The ads are then inserted into the national programming stream and the same set of ads are delivered across every MSO or MVPD cable operator. 4

6 WHO SELLS TV ADS? NATIONAL BROADCASTER ABC, NBC, CW NATIONAL NETWORKS DISCOVERY, ESPN LOCAL BROADCASTERS ABC 10, ABC 7, NBC 4 CABLE AND SATELLITE PROVIDERS COMCAST, DIRECTV SYNDICATORS SONY SYNDICATED TV, KING WORLD TV Representative Firms (i.e. Cox Reps, Katz Media) allow an advertiser to buy nationally across broadcast affiliates Unwired Networks (i.e. ITN) allow an advertiser to buy nationally across broadcast affiliates Interconnects allow an advertiser to buy across an entire DMA when cable market share is split Cable Representative Firms (i.e. NCC Media) allow an advertiser to buy nationally across cable companies LINEAR TV: WHERE DOES THE MONEY GO? ~20% TO PAY LOCAL TV PROVIDERS One fifth of ad inventory goes to cable and satellite providers, syndicators and their representatives TV PROVIDER BROADCASTERS Of this, 50-80% sold at upfronts, with the remaining ~80% TO NATIONAL NETWORKS AND going to scatter buys throughout the year UPFRONT SCATTER 5

7 Local TV Market It is also important to understand how the local TV market operates, especially as programmatic TV is opening up this inventory for easier access and deeper audience targeting. Much of the inventory comes from local buys, which are stitched together to make a national buy. The local advertising market is composed of local broadcast affiliates (i.e. Fox 40, ABC 10) and MVPDs (i.e. Verizon, Comcast), which sell advertising that run in a set of DMAs or zones. The local broadcasters and MVPDs sell advertising that is inserted into local commercial pods (allocations afforded local networks) within the same national linear TV stream, or within content that is sourced from the local group such as local news or syndicated shows. Broadcasters apportion their ad opportunities between themselves and their local affiliates (i.e. NBC New York), typically having a 16 minute split. In contrast, cable networks (AMC, ESPN) split their ad opportunities with the local cable TV provider (i.e. Comcast). It is worth noting that MVPDs still carry the broadcaster channels even though the sales teams of the MVPD and the local broadcast affiliate are competing. Most MVPDs have no ad rights on broadcast shows. The local market is typically planned on GRPs, as measured by Nielsen s local panel, and bought using on-target CPMs or CPP. Purchasers of local spots range from small or local businesses (i.e. automotive dealers) to large national brands that aggregate groups of regions, known as a local-national buy. Local buys are done on weekly schedules. LOCAL POD INSERTION BY SOURCE ABC 75% National Commercial Time National-local buying is especially challenging because it often involves aggregating multiple MVPDs, complex file delivery and slow reporting. NETWORK INSERTION AMC 75% National Commercial Time CABLE INSERTION LOCAL AD INSERTION 25% LOCAL AD INSERTION 25% ABC10 Comcast Time Warner ABC2 6

8 National Measurement Challenges As small as the Nielsen panel feels subjectively, we believe that it is statistically sound at the national level. Since the national panel is oversampled, there is flexibility to subdivide it into deeper audience targets while maintaining good confidence intervals. It is worth noting that the random makeup of a panel is much more important than the size of a panel, as none of the normal statistical confidence measures will apply if the panel is not a random sample. In other words, a biased panel of 10 million viewers is far less useful than a randomized panel of 50,000. As marketers leverage more granular audience targeting, there is an argument to be made that the panel needs to be bigger or one cannot accurately represent small audience segments. Local Measurement Challenges Local markets have a unique set of measurement challenges that are not present in national buys. The panels required in the future will likely need to be larger in size for local campaigns -- which is likely why Nielsen is increasing its panel size next year. As programmatic TV enables deeper targeting that extends beyond age and gender, the panel data being used for measurement (assuming you are not running addressable TV) will need to be statistically significant in each group. With thousands of panel members in each DMA and over 50,000 nationally, the Nielsen panel is likely close to statistical limits at the local level, depending on the required secondary targets. If an advertiser wants to divide targets into more granular audiences (i.e. Hispanics 21+), the panel needs to have a statistically relevant number of representatives from that group when subdivided. This requires larger panels in order to break up that panel into more targeted audience segments, especially if an advertiser is buying targeted audiences on a market by market basis. EXAMPLE: THE SAMPLE SIZE REQUIRED FOR: +/- 300M PEOPLE (U.S. POPULATION) SAMPLE SIZE NEEDED % 3.5% CONFIDENCE LEVEL CONFIDENCE INTERVAL 50K PEOPLE (DMA POPULATION) SAMPLE SIZE NEEDED 772 7

9 Addressability vs. Contextual Targeting Advertisers now have two ways of reaching deeper audiences on TV beyond basic age and gender: 1. USING DATA TO BUY SPECIFIC CONTEXTS, SHOWS, NETWORKS AND REGIONS THAT INDEX HIGHER TOWARD A SPECIFIC AUDIENCE. Availability of Addressable TV Due to a limited amount of inventory available to pay TV providers, only a small portion of linear TV is addressable. Currently, the only places to buy addressable TV are local MSO/MVPD direct buys or satellite providers. We estimate that around 20% of local inventory is currently addressable across U.S. households, with a growing set of providers launching solutions. 2. ADDRESSABILITY Addressability is made possible by the advent of digital cable boxes, which enable cable companies to target ads at a household level across linear TV and VOD. The promise of addressable TV is that it lets advertisers use data from the cable company (i.e. zip code, age, gender) linked to data from third parties (i.e. Experian credit data) to target a different ad to each household. Given that MSOs/MVPDs own the set top boxes in their customers households, they are the only companies that can enable addressable TV. Addressability is not available on national advertising buys (with the exception of satellite) since those buys stream untouched through the MVPDs/MSOs. While the next section talks about the scale of addressability versus contextual targeting, it is clear that both approaches will be used in conjunction in the coming years to reach deeper audiences. 8

10 Why Programmatic? TV is one of the best advertising mediums ever created. Its dominance as a branding medium will continue into the future. The dynamics of the upfront market will not likely change any time soon. That said, the demand from brands to plan and buy video holistically across screens and the unstoppable shift to audience-based buying is making the market ripe for key advancements in certain aspects of the traditional planning and buying process. TRADITIONAL PLANNING & BUYING PROCESS FOR LINEAR TV PLAN TV buyers use historical demographic, price and inventory data to figure out the best shows and networks to buy. GRP targets are set, taking into account branding and sales goals. BUY Advertisers negotiate with broadcasters, cable companies and aggregators to buy on an on-target demo basis. If ratings fall short of the GRPs bought, Audience Deficiency Units (ADUs) are run at no cost to the advertiser (a make-good ). CABLE AND SATELLITE PROVIDERS NETWORKS / BROADCASTERS Direct sales Indirect (i.e. interconnects, cable representative firms) Direct: Upfronts: large, upfront commitments to specific networks Scatter: ads bought within weeks or months of airing MONITOR/ADJUST Indirect (i.e. TV representative firms, unwired networks) Continued measurement of cost and performance. Adjustment of media mix as needed. 9

11 TV Ad Market: Inefficiencies While TV continues to attract more ad dollars than any other medium, there are several pain points for advertisers that are fueling calls for innovation. Targeting is limited and buying specific audiences is difficult. While the move toward audience-based buying was spearheaded in TV with age and gender guarantees, there have been limited advances into more specific audiences. Market by market buys are complicated. Currently, it is difficult to aggregate MSOs/MVPDs to string together buys across specific DMAs. Where a cable company has market share is not necessarily where an advertiser wants to run an ad. Software has the ability to automate this process and bring efficiency to the national-local market. Niche TV shows are undervalued. TV shows with relatively low ratings are typically under-bought by advertisers. Inflexible marketing. The speed needed in today s marketing world requires marketers to make changes and move budgets in days or even minutes -- not weeks. The TV buying infrastructure is not currently equipped to handle this need. Cross-screen planning is extremely difficult. To consumers, video is video regardless of whether they are watching on a TV or a tablet. But for advertisers, planning that way is impossible in a market where ads, people and measurement exist in silos. TV buying and planning software doesn t actually execute buys. TV planning software can give advertisers a great idea of pricing and inventory trends, but that is all it does. 10

12 Programmatic TV: The Promise The growth of automated buying in video advertising is well-documented. According to emarketer, programmatic video advertising is expected to be a $3.8 billion market by 2016, up from $710 million in For a growing chorus of brands, datadriven marketing and programmatic buying are delivering quantifiable results in terms of cost savings, reduced complexity, ownership of customer data and, ultimately, better results. But sadly, these benefits are meticulously absent on the biggest screen in the house: TV. Not only does programmatic TV extend these benefits to television advertising, but it enables holistic planning across every screen. TV bought through software provides brand advertisers more flexibility to shift ad dollars and optimize on reach and frequency regardless of where a viewer is watching. PROGRAMMATIC TV The use of software-based systems to plan, buy, measure and optimize television advertising. The key reasons advertisers are turning to software to manage their TV buys include: Audience Efficiency: Data-driven software provides sophisticated, granular targeting of audiences beyond basic age and gender or network ratings. The improved ability to reach more granular audiences results in lower overall on-target cost. Operational Efficiency: Automating manual processes with software eases the operational and overhead burden on brand teams. Flexibility: Software gives advertisers access to faster planning, execution and measurement. As a result, campaign planning and deployment can take place over the course of days rather than weeks (or months) as with traditional TV buying. This control provides advertisers the ultimate flexibility to make on-the-fly changes to their creative strategy and media mix. Cross-Screen: The emergence of platforms that can plan and measure brand campaigns across screens, devices and mediums provides a seamless experience for advertisers to execute holistic strategies. While programmatic TV is unlikely to change the upfront process, it will likely play a key role in targeting audiences across screens and provide more deeply integrated planning options. 11

13 How Does It Work? 2. Addressable based audience targeting. This requires a link with a third-party audience data provider such as Experian with the household TV ad insertion system. A buying platform like TubeMogul then pushes the audience targets into the ad insertion systems. There are two key components enabling advertisers to buy and target TV through software: Integration of a buying platform into the content provider s TV inventory management and ad insertion systems. This allows a buy-side platform like TubeMogul to obtain inventory forecasts and execute buys for advertisers using more sophisticated targeting and optimization tactics than manual processes typically allow. CONTEXT-BASED BUYING TARGET AUDIENCE: PARENTS WITH CHILDREN + CINCINNATI DMA + DENVER DMA VIEWER Prospect Household A Young Couple $250k HHI Prospect Household B Senior Couple $50K HHI Prospect Household C Family with Children $75K HHI Marrying audience data with inventory for richer targeting insights. 1. Context-based audience targeting. This approach to context buying moves beyond what is possible through manual planning and execution. It leverages software to achieve complex mixes of networks, dayparts, geographies and more that index high against a target audience. Data from sources such as Nielsen or Rentrak is integrated into the buying platform to inform decisions that occur at a contextual level that is typically show-based. The ad insertion integration must allow the buying platform to buy groups of shows. ADDRESSABLE HOUSEHOLD BUYING TARGET AUDIENCE: PARENTS WITH CHILDREN VIEWER Prospect Household A Young Couple $250k HHI Prospect Household B Senior Couple $50K HHI Prospect Household C Family with Children $75K HHI 12

14 What Should the Transaction Currency of Programmatic T V Be? The following transaction types allow for a bridge between the worlds: On-target CPM for a specific age and gender. This can be converted directly into a cost per point (CPP) to compare with traditional TV. On-target CPM for a strategic target. This is the same principle applied to a deeper audience target beyond age and gender. The way programmatic TV is bought should allow for an easy move from the currency TV buyers use today while also allowing for greater flexibility in a new world of more targeted audiences. An on-target CPM with age and gender allows for an exact comparison against TV currencies used today but has limitations as TV moves toward a fully addressable model. In the addressable world, an on-target CPM for strategic targets will be used to reach viewers at a household level and the demo target will have no transactional meaning. Supporting both in the interim allows the move between a purely demographic-based currency to a world where the currency will be addressable audiences. The TubeMogul approach is to allow buying and reporting on both currencies, giving advertisers more flexibility to choose on a campaign-by-campaign basis. Results are verified by a third-party data provider. 13

15 Barriers to Programmatic TV Despite its promising future, the programmatic TV ecosystem is still emerging. Many TV buyers aren t familiar with the benefits programmatic buying brought to digital advertising, let alone the value it can offer television. As a result, there is a mix of real and misperceived barriers impacting programmatic TV s development and adoption. Programmatic is perceived as a threat to the current way of transacting rather than an additive approach to TV. TV advertising has been around since 1941, when a ten-second, static ad spot ran for the watchmaker Bulova. Since then, the television industry has grown into a reliable advertising medium. Hesitancy to introduce new variables into an established system with a lot of dollars transacting, then, is expected. That said, a new way of buying that allows advertisers to target audiences at a deeper level and gain more flexibility is essential for TV to remain the king of advertising mediums. Programmatic TV will not replace the mass reach that the upfronts and reserve deals allow but it will be an additive way to supplement the traditional model. Lack of infrastructure. The technology needed is developing, but there is work to be done before perfectly seamless, automated TV ad delivery is realized. Today s programmatic TV buyers must utilize a patchwork of solutions if they want to both buy and target audiences effectively and figure out how to make it work with legacy systems. There does not yet exist an easy way for buyers to select the inventory they want, apply audience targeting, then flip the switch to activate a campaign. Fear of commoditization. One of the biggest challenges is getting broadcasters to offer up more inventory for automated delivery and, ultimately, buying. Broadcasters fear losing control over the value of their ad inventory. They witnessed the downward pricing pressures some online publishers experienced with online banner display advertising, and fear the same fate for television. However, premium digital video has proven to be a different dynamic because supply is constrained. Premium digital video prices have held stable and are providing incentives for programmers to consider bringing in programmatic to the TV ecosystem for certain inventory and buyers. Programmatic: one word, multiple meanings. At its core, programmatic simply means bringing some level of automation to the process. However, the term is often associated with specific buying models, strategies and technologies commonplace in the digital advertising realm. Because digital and TV advertising processes and capabilities are considerably different, applying programmatic s digital definition -- and the expectations that follow -- does not make sense. 14

16 Breaking Down the Barriers While programmatic TV is still in its infancy, an array of companies are addressing key barriers to adoption and accelerating the medium s growth. Similar to the emergence of various ad technology companies in the digital advertising realm, these companies specialize in specific functions of the TV buying process and are working towards a common goal: making TV advertising more efficient and effective via automation. Supply-side platforms (SSPs) such as WideOrbit, clypd, Placemedia and AudienceXpress work to aggregate inventory from TV networks, broadcasters and MVPDs, creating a centralized hub for advertisers to easily access availability and place reservations. SSPs sit squarely on the sell-side, helping networks and MVPDs monetize inventory that was not sold through their direct sales force in an automated fashion. This should not be confused with open exchanges, where buyers can bid on the price they want to pay for an impression in real-time -- the technology, and TV ad supply, is not equipped to handle this type of transacting. TV executives who worry about the race to the bottom are often mistakenly referencing the latter buying model. Additionally, TV SSPs can help ensure TV compliance, allowing both the buy and sell sides to set up strict buying parameters and approved white (or black) lists. On the other end of the spectrum sit demand side platforms (DSPs) such as TubeMogul, which help advertisers buy television inventory from a centralized platform. DSPs can plug into inventory, viewing data and audience profiles from all sources -- from SSPs like clypd to data providers such as Nielsen. The value of DSPs come from their ability to make data-driven purchase decisions by overlaying audience viewing and profile data atop supply. Not every DSP is currently equipped to handle this more sophisticated form of planning and buying. However, as technologies continue to evolve, the efficacies realized from TV DSPs are expected to accelerate the adoption of programmatic TV. 15

17 THE TV ADVERTISING LANDSCAPE HOLDING COMPANIES IPG CONSUMER DMPs AND NETWORKS NATIONAL BROADCASTERS OMNICOM SSPs UNWIRED NETWORKS AD INSERTION SYSTEMS STATION GROUPS ADVERTISERS PUBLICIS GROUPE WPP DSPs NETWORKS MVPDs CREATIVE MANAGEMENT PLATFORMS MEASUREMENT AND ANALYTICS CABLE NETWORKS VIEWERS DENTSU INDEPENDENT AGENCIES ORDER MANAGEMENT SYSTEMS 16

18 A Look Ahead Most agree that programmatic TV has the potential to benefit everybody by automating buying, selling, delivery and measurement. There is no doubt that television will embrace programmatic methods -- the metamorphosis is already underway. What remains in question is: in what ways will programmatic transform television advertising? There are a few possible ways TV could be bought and sold that have direct parallels to the digital world: Automated ad delivery and measurement. Automating creative delivery and measurement would make the process more efficient for both sides of the business. Software can facilitate handoffs, watermarking, measurement, etc. -- enabling a more agile system that can accommodate changes without significant delays. Data-driven planning coupled with manual buying. The ability to leverage data with automation will increase the value of each ad slot. Inventory owners can maximize the quality of the spot they are selling and marketers can reach their desired audience in the right context. Programmatic reservations. Either on the upfront or scatter level, automating the order placement process would streamline the buying process. Rather than manually reaching out to each inventory source, buyers could log into a centralized system to immediately confirm availability and place reservations. Guaranteed programmatic direct deals. These mimic the manual deal in economic terms, but the targeting, optimization and delivery of an ad is automated. The result is the same relationship between the network/broadcaster and advertiser, but the value extracted from the deal is far greater. Stakeholders across the media landscape -- from data providers and SSPs to MVPDs and, most importantly, advertisers -- are converging to drive innovation into this new frontier. The journey is complex, and relies upon the willingness of broadcasters and networks to test and adapt to new ideas that will move the industry forward. 17

19 Glossary AD SERVER: A computer server connected to a database that stores advertisements and delivers them to viewers. ADDRESSABLE TV ADVERTISING: Technology that allows advertisers to deliver different TV ads to individual households based on demographic, geography or other factors. BROADCASTER: A company that transmits TV content nationally via traditional over-theairwaves broadcast (i.e. ABC, CBS, NBC). CPM: Cost per thousand ads served to viewers. CPP: Cost per point. The cost to reach 1% of the target audience within a specific geography. DAI: Dynamic ad insertion. Describes the ability by cable and satellite companies to deliver custom ads to individual subscribers. DAYPART: A block of time that divides the TV day into segments for purchase, scheduling and delivery (i.e. primetime). DMA: Designated market area. Defined by Nielsen, DMAs divide the country into different regional markets by population centers (i.e. San Francisco Bay Area). DSP: Demand-side platform. Software that is utilized to purchase advertising in an automated fashion. GRP: Gross rating point. The standard currency that broadcast TV has used to plan, purchase and measure advertising campaigns since the 1950s. Defined as [reach x frequency] for a target demographic (i.e. males age 18-34). LINEAR TV: Live television that is watched as scheduled; stands in contrast to prerecorded or video on demand (VOD). MSO: Multiple-system operator. Refers to an operator that owns multiple cable TV systems. MVPDs can be MSOs and vice versa; the distinction is primarily regulatory (i.e. Comcast, Cablevision). MVPD: Multi-channel video programming distributor. A content supplier who makes available for purchase, by subscribers or customers, multiple channels of video programming (i.e. Verizon, AT&T). NETWORK (CABLE): A content provider that supplies programming for an MSO or MVPD. (i.e. AMC, BET). OTT: Over-the-top. Video content through a TV set that is connected to the Internet. PROGRAMMATIC: The use of software to automate the purchase, delivery and optimization of advertising. Magna Global defines it as all spend transacted through a technology platform rather than a traditional I/O process. SCATTER MARKET: Commercial time purchased outside the annual upfront, typically on a quarterly basis. Scatter buys have different rates and terms than those negotiated during the upfronts. SSP: Supply side platform. Software that is used to sell advertising in an automated fashion. SYNDICATION: Local sale of non-network or off-network programs to individual TV stations. TV EVERYWHERE: TV content -- either live or on-demand -- available for online streaming by authenticated pay TV subscribers. UPFRONTS: Annual buying period where advertisers have a chance to purchase scarce premium inventory for guaranteed delivery with major content providers (i.e. ABC, NBC, Turner) for the year. Usually occurs in the spring after the new fall schedules have been announced and presented to major advertisers. VOD: Video on demand. Delivery of TV content at a time of a viewer s choosing. Often available either through a set-top box or on computers and mobile devices. 18

20 TUBEMOGUL (NASDAQ: TUBE) IS AN ENTERPRISE SOFTWARE COMPANY FOR DIGITAL BRANDING. By reducing complexity, improving transparency and leveraging real-time data, our platform enables advertisers to gain greater control of their digital video advertising spend and achieve their brand advertising objectives. TubeMogul was incorporated in 2007 and is based in Emeryville, California with operations in New York, London, Singapore, Tokyo, Sydney, Toronto and offices across the United States. CONTACT: