Stop waiting for the year of mobile advertising. The new buying model will change the rules of the whole digital advertising game.

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1 Stop waiting for the year of mobile advertising. The new buying model will change the rules of the whole digital advertising game.

2 Orange Advertising Network global insights international network reach 30 million unique users OAN + Intl publishers 33 million unique users 26.5 million unique users 79.2 million unique users* Orange Advertising Network #2 in Europe worldwide web 679 million unique users E urope web 252 million unique users Europe mobile 32.1 million unique users* global premium publishers leading local portals global leader in web and mobile messaging for youngsters leading portal in Spain prominent portals in France, Spain & UK new way to reach Africa s web community #2 video sharing website worldwide premium online travel agent Germany s topranking portal France s innovative search portal Italy s leading portal reaching Hispanic communities across the Americas and much more through over 60 countries Orange Advertising Network is an advertising business unit of the France Telecom Orange Group. Orange s footprint covers 35 countries and 210 million clients worldwide, with 45,5 billion revenue in sources: comscore March 2011, Gemius May 2011 * minimum reach available

3 mobiles attributes make it attractive to digital advertisers AUDIENCE switch from PC to mobile CONTINUITY extension of PC access to media MOBILITY omnipresence, location-specificity

4 but we are still waiting for the year of mobile Mobile s share of U.S. Internet Ad spend 3.21%* Total ad ex Mobile Mobile advertising spend in the United States reached $833 million in 2011, which only represents 3.21% of U.S. Internet ad spend. *Source: ZenithOptimedia Ad Expenditure Forecasts July 2011

5 tomorrow s mobile advertising s value lies in digital segments 2011 U.S. mobile advertising spend 2015 U.S. mobile advertising spend Video 4.7% Messaging 36.1% video messaging banners and rich media search Video 9% Messaging 14.4% video messaging banners and rich media search Search 28.5% Banners and rich media 30.7% Search 40.2% Banners and rich media 36.4% *Source: ZenithOptimedia Ad Expenditure Forecasts July 2011 ** Source: emarketer, Sep 2011

6 browsing on the mobile WEB? MOBILE?

7 connecting mobile with outdoor OUTDOOR? MOBILE?

8 using tablets on the go WEB? MOBILE?

9 connecting print with mobile PRINT? MOBILE?

10 bringing social to TV TV? MOBILE?

11 thanks to the rise of smartphones, digital advertising will turn mobile launch of the iphone 1990 s 2000 s s Smartphones blurred the frontier between web and mobile: mobiles, tablets and PCs are now nothing more than different ways to access the Internet. *Source: IDATE Mobile Video Marchés et prévisions June 2011

12 the real standout features of mobile lie in digital content, services, and advertising formats, adapted to fit mobile devices Innovative services Interaction with the user Targeting Adapted services Traceable performance Innovative creatives Personal devices Geolocation

13 follow the users: to seek revenues, think digital, not mobile For example, according to IDATE (June 2011): 75% of Youtubes users uppermost access it with their mobile.* 38% of Youtubes users think Youtube Mobile replaces the use they have of Youtube on fixed computer.* Advertisers must touch the users where they are, and they are on the mobile. The mobile should not be considered separately but as a continuation of the digital experience. *Source: IDATE Mobile Video Marchés et prévisions June 2011

14 Multiscreen Multitasking Non-linear brands are facing new challenges

15 obstacles to mobile media ad buying on the marketers side lie precisely in mobile advertising s isolation Different buying platforms for web and mobile Fragmented mobile ad networks Separated Analytics for web and mobile

16 the key is convergence Convergence of the buying platforms Offers across devices boundaries Cross-media analytics Mobile audience selling will therefore reach enough weigh to drive proper investments.

17 digital evolution applied to mobile: audience buying means there is no room for mobile advertising on its own anymore What is audience buying? BEFORE: placement buying AFTER: audience buying Though today s market analytics suggest rivalries between display, search and mobile, every channel is actually a way to reach the right audience, at the right time, through the right ad.

18 the new audience buying model will reorganize the market around two pillars : platforms and data Device-agnostic platforms The user is device- and even medium-agnostic, and so should be the buying platforms. Data analysis Generate data, to deliver value to the advertiser. External data sources (studies) Announcer CRM data Performance Audience usage

19 automated platforms will change the structure of the industry and new challenges will appear Sales houses: is the packaging of advertising spaces still appropriate? Agencies: with the rise of automated platforms and RTB: is traditional media planning still legitimate? RTB and ad exchanges convey interrogations about guarantied or non-guarantied inventory. The new audience buying model will make international campaigns more appealing. Creativity: RTB and the new platform buying model are no excuse to skip the emotional side of advertising. Actors will have to reposition in the value chain, even though it has a technological cost, and there is a need of analytical skills.

20 Luc Tran-Thang VP of Orange Advertising Network

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