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Agenda Survey methodology 2016 first six-months results First six-months and quarterly trends Advertising formats Social media Pricing models Industry category spending About Pw. C November 2016 2

Survey Methodology Survey Scope Methodology The IAB Internet Advertising Revenue Report is part of an ongoing IAB mission to provide an accurate barometer of Internet advertising growth. Throughout the reporting process, Pw. C: To achieve differentiation from existing estimates and accomplish industry-wide acceptance, key aspects of the survey include: • • • Pw. C Obtaining historical data directly from companies generating internet (desktop and mobile) advertising revenues; Making the survey as inclusive as possible, encompassing all forms of internet advertising, including websites, consumer online services, ad networks and exchanges, mobile devices; and Ensuring and maintaining a confidential process, only releasing aggregate data. • Compiles a database of industry participants selling internet advertising revenues. • Conducts a quantitative mailing survey with leading industry players, including web publishers, ad networks, commercial online service providers, mobile providers, and other online media companies. • Requests and compiles several specific data items, including monthly gross commissionable advertising revenue by industry category and transaction. • Acquires supplemental data through the use of publicly disclosed information. • Identifies non-participating companies and applies a conservative revenue estimate based on available public sources. • Analyzes the findings, identifies and reports key trends. November 2016 3

Half year revenues totaled … $32, 7 In billions $27. 48 HY 2015 Pw. C HY 2016 November 2016 4

Half year revenues totaled $32. 7 billion in 2016 19. 1% $27. 48 HY 2015 Pw. C [VALUE] 4 In billions Online advertising revenue increased $5. 3 billion in HY 2016 November 2016 5

2016 second quarter revenues totaled …. In billions $16, 9 [VALUE] 0 Q 2 2015 Source: IAB Internet Advertising Revenue Report, HY 2016 Pw. C Q 2 2016 November 2016 6

2016 second quarter revenues totaled $16. 89 billion In billions 18. 1% [VALUE] 0 Q 2 2015 Source: IAB Internet Advertising Revenue Report, HY 2016 Pw. C $16. 89 Revenue in Q 2 2016 was $2. 6 billion higher than in Q 2 2015. Q 2 2016 November 2016 7

Strong Growth between Q 1 2016 and Q 2 2016 In billions [VALUE] 5 $16, 9 Q 1 2016 Source: IAB Internet Advertising Revenue Report, HY 2016 Pw. C Q 2 2016 November 2016 8

Strong Growth between Q 1 2016 and Q 2 2016 6. 6% In billions [VALUE] 5 $16. 89 Q 1 2016 Source: IAB Internet Advertising Revenue Report, HY 2016 Pw. C Revenue in Q 2 2016 was $1. 0 billion higher than in Q 1 2016. Q 2 2016 November 2016 9

Since 2010, a strong seasonal trend has emerged for internet advertising revenues In billions Quarterly growth comparison, 1996–HY 2016 ’ 96 Pw. C November 2016 10

First six-months 2016 shows record revenues Historical revenue mix, first half vs. second half $70 Last 6 months First 6 months $60 In billions . 3% 9 *: 1 $50 GR A C r ? a Ye alf- $40 $32. 1 H $26. 4 $22. 7 $30 $19, 5 $16, 8 $20 $11, 2 $4, 0 $3, 3 2003 $13, 9 $5, 0 $6, 8 $4, 6 $5, 8 $7, 9 $10, 0 2004 2005 2006 2007 * CAGR: Compound Annual Growth Rate Pw. C $11, 8 $9, 0 $10 $0 $11, 9 $11, 5 $10, 9 $12, 1 2008 2009 2010 $14, 9 $17, 0 2011 2012 $20, 1 2013 $23, 1 2014 $27, 5 2015 $32, 7 2016 November 2016 11

Industry concentration – the long tail Top 10 Companies = 74% of HY 2016 Revenues Next 15 Companies = 10% of HY 2016 Revenues Remaining Companies = 16% of HY Revenue Pw. C November 2016 12

Mobile shows the strongest growth Advertising formats – HY 2016 results and growth rates In billions $ 16 100% 89% $10. 1 $ 14 80% $ 12 60% $ 10 40% 13% $8 20% 2% $6 $4 -29% -47% $2 $- $8, 9 Search $1, 1 $0, 9 Classifieds & Lead Generation Directories HY 2016 Revenue Pw. C 0% -12% $15. 5 $2, 3 $3, 4 $0, 2 Mobile Digital Video Commercials Banners Ads Sponsorship -20% -40% $0, 4 Rich Media -60% HY 2016 vs. HY 2015 % Growth November 2016 13

Historical trends in internet advertising formats % of total revenue Revenue share by major ad formats, 2006–HY 2016 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2006 Search 2007 Mobile 2008 2009 Banner Ads 2010 Source: IAB Internet Advertising Revenue Report, HY 2016 Pw. C Digital Video 2011 2012 Classifieds 2013 2014 Lead Generation 2015 Sponsorship HY 2016 November 2016 14

Mobile represents a significant percentage of advertising formats 6% For the half year in 2016, Mobile revenue totaled $15. 5 billion [VALUE] 27% 10% 48% 47% 39% 12% 7% Mobile Search Display / Banner Video Mobile Source: IAB Internet Advertising Revenue Report, HY 2016 Pw. C Mobile Display / Banner Mobile. Video Mobile Other November 2016 15

Distributing Mobile across formats demonstrates its importance to Search and Display Formats – HY 2016 (Mobile separated) Formats – HY 2016 (Mobile included) 8% 27% 12% 47% 50% 12% 7% Search Display 31% 7% Video Other Mobile Source: IAB Internet Advertising Revenue Report, HY 2016 Pw. C Search Display Video Other

Ad Formats – Mobile allocated comparison to PY Video across formats demonstrate strongest growth HY 2015 HY 2016 8% 10% 12% 9% 50% 31% Search Display Banner Display Video Hybrid Other Total – $27. 5 billion Source: IAB Internet Advertising Revenue Report, HY 2016 Pw. C Search Display Banner Display Video Hybrid Other Total – $32. 7 billion November 2016 17

Social media demonstrates continued growth Social media ad revenues, 2012 – HY 2016 $8, 0 $6, 4 $7, 0 CAGR* $7, 0 54% In billions $6, 0 $5, 0 $4, 4 $4, 1 $4, 0 $2, 6 $3, 0 $2, 0 $1, 7 $2, 9 $1, 2 $1, 0 $0, 0 1 H 2012 2 H 2012 1 H 2013 2 H 2013 1 H 2014 2 H 2014 1 H 2015 2 H 2015 1 H 2016 * CAGR: Compound Annual Growth Rate Source: IAB Internet Advertising Revenue Report, HY 2016 Pw. C November 2016 18

Pricing models Internet ad revenues by pricing model, HY 2015 vs. HY 2016 HY 2015 HY 2016 2% 1% 32% 65% 66% Impression-based Performance-based Hybrid Total – $27. 5 billion Source: IAB Internet Advertising Revenue Report, HY 2016 Pw. C 34% Impression-based Performance-based Hybrid Total – $32. 7 billion November 2016 19

Historical pricing model trends Internet ad revenues by pricing model, 2005–HY 2016 70% 57% % of total revenue 60% 50% 46% 48% 40% 47% 10% 0% 66% 65% 31% 32% 33% 34% 2% 2% 1% 2012 2013 2014 2015 HY 2016 65% 51% 45% 41% 39% 30% 20% 59% 62% 66% 65% 37% 33% 32% 34% 13% 5% 4% 4% 4% 2005 2006 2007 2008 2009 CPM 5% 4% 2010 2011 Performance Hybrid Note: Pricing model definitions may have changed over the time period depicted both within the survey process and as interpreted by respondents Pw. C

Internet ad revenues by major industry category $27. 5 B in HY 2015 vs. $32. 7 in HY 2016 HY 2015 HY 2016 % of total revenue † 21% 13% 12% 9% Retail Financial Services Auto 9% Telecom 9% 8% Leisure Travel 7% 7% 7% Packaged Tech / Goods Computing † Amounts do not total to 100% as minor categories are not displayed. Pw. C 6% 5% 6% Media 5% 5% 4% 4% Pharma & Entertain. Healthcare ment

Pw. C’s Technology and Entertainment, Media, and Communications practices As business, accounting, and tax advisors to many of the world’s leading Entertainment, Media, and Communications (EMC) and Technology (Tech) companies, Pw. C (www. pwc. com) has an insider’s view of trends and developments driving the industry. With approximately 1, 200 practitioners serving EMC and Tech clients in the United States, Pw. C is deeply committed to providing clients with industry experience and resources. In recent years, our pioneering work in EMC and Tech has included developing strategies to leverage digital technology, identifying new sources of financing, and marketplace positioning in industries characterized by consolidation and transformation. Our experience reaches across all geographies and segments of the EMC and Tech sectors, including broadband, wireless, the internet, music, film, television, publishing, advertising, gaming, theme parks, computers and networking, and software. With thousands of practitioners around the world, we're always close at hand to provide deep industry knowledge and resources. Our services include: • Business assurance services • Web audience measurement and advertising delivery auditing and advisory • IAB Measurement Certification Compliance auditing • Privacy policy structuring, attestation, and compliance advisory • Mergers & acquisitions assistance • Tax planning and compliance • Capital sourcing and IPO assistance • Marketing & Media operations enablement Pw. C November 2016 22

Technology and Entertainment, Media, and Communications practices Contacts For information, contact one of the following Pw. C professionals: New York David Silverman Partner, Assurance Services 646. 471. 5421 david. silverman@pwc. com York Russ Sapienza Principal, Advisory Services 646. 471. 1517 russell. j. sapienza@pwc. com Brian Gaffney Manager, Advisory Services 646. 471. 4722 brian. Gaffney@pwc. com Pw. C November 2016 23

www. pwc. com/e&m Pricewaterhouse. Coopers has exercised reasonable care in the collecting, processing, and reporting of this information but has not independently verified, validated, or audited the data to verify the accuracy or completeness of the information. Pricewaterhouse. Coopers gives no express or implied warranties, including but not limited to any warranties of merchantability or fitness for a particular purpose or use and shall not be liable to any entity or person using this document, or have any liability with respect to this document. This report is for general purposes only, and is not a substitute for consultation with professional advisors. © 2016 Pw. C. All rights reserved. Pw. C refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the Pw. C network. Each member firm is a separate legal Pw. C entity. Please see www. pwc. com/structure for further details.