© 2017 Appodeal Inc. © 2017 Appodeal Inc. Future of Mobile Advertisement HOW DID WE GET HERE? WHAT’S NEXT?

© 2017 Appodeal Inc. © 2017 Appodeal Inc. MOBILE AD BIDDING

© 2017 Appodeal Inc. © 2017 Appodeal Inc. MOBILE AD BIDDING DESKTOP AD BIDDING

© 2017 Appodeal Inc. © 2017 Appodeal Inc. MOBILE AD BIDDING DESKTOP AD BIDDING

© 2017 Appodeal Inc. 1st Generation THE TRADITIONAL WATERFALL 2nd Generation AD PLACEMENTS + FREQUENCY CAPS

© 2017 Appodeal Inc. Traditional Waterfall Network A Network B Network C Ad Fill Order First Last Ads’ eCPMs Low High

© 2017 Appodeal Inc. Ad Placements and Frequency Caps 1st Tier WATERFALL Ad Fill Order First Last Ads’ eCPMs Low High Ad Fill Order Last First Ads’ eCPMs Low High Ad Fill Order First Last Ads’ eCPMs Low High 2nd Tier WATERFALL Leftover Tier WATERFALL

© 2017 Appodeal Inc. © 2017 Appodeal Inc. Ad Mediation Enters the Market Optimizes & Automates Traditional Waterfalls More Convenient

© 2017 Appodeal Inc. © 2017 Appodeal Inc. Ad Mediation Enters the Market Inaccurate Historical Data No Breakdown of Ad Performances Higher eCPM ads may be skipped

© 2017 Appodeal Inc. © 2017 Appodeal Inc. Ad Bid Ad Bid Ad Bid Ad Bid Ad Bid Ad Bid INCLUDED IN AUCTION EXCLUDED FROM AUCTION All Demand Sources Must Be Included in Auctions to Win Bid

© 2017 Appodeal Inc. © 2017 Appodeal Inc. Ad Bid Ad Bid Ad Bid INCLUDED IN AUCTION All Demand Sources Must Be Included in Auctions to Win Bid Ad Bid Ad Bid Ad Bid

© 2017 Appodeal Inc. 3rd Generation STATIC PRICE FLOORS

© 2017 Appodeal Inc. Ad Fill Order First Last Price Floor (Hard) Ads Not Considered Ads’ eCPMs Low High Static Price Floors

© 2017 Appodeal Inc. Soft Price Floor Ad Fill Order Last Ad Fill Order Ads’ eCPMs Low High Ad Fill Order Last First Ads’ eCPMs Low High Ad Fill Order Ads’ eCPMs Low High $7 eCMP $6 eCMP $3 eCMP $7.02 eCMP $6.83 eCMP $2.15 eCMP Historical Data Price Floors

© 2017 Appodeal Inc. Flat Waterfall Ad Fill Order First Last Ads’ eCPMs Low High Multiple Positions FLAT WATERFALL

© 2017 Appodeal Inc. Flat Waterfall: Advantages Historical data inaccuracy defeated Multiple positions in waterfall

© 2017 Appodeal Inc. Flat Waterfall: Downsides Inflating bid inefficiency Slow app performance

© 2017 Appodeal Inc. 4th Generation DYNAMIC PRICE FLOORS

© 2017 Appodeal Inc. Ads’ eCPMs Low High Winner Fills Impression No Fill (Too Expensive) No Request No Request No Request Price Floor Entry (Not Actual Bid) Ad Fill Auction Order First Last $12 $10 $10.20 $9 $5 $11.30 Actual Bid Would’ve Entered At the $10 Price Floor Waterfall with Static Price Floors Dynamic Price Floors

© 2017 Appodeal Inc. Dynamic Price Floors Ads’ eCPMs Low High Winner Fills Impression No Request No Request No Request Ad Fill Auction Order First Last Price Floor Entry (Not Actual Bid) $10.01 $9.01 $9 $5 $11.30 $10.20 $5.01 No Request No Request Actual Bid Enters At the $10.01 Price Floor Waterfall with Dynamic Price Floors Actual Bid = $10.21 $10.21

© 2017 Appodeal Inc. © 2017 Appodeal Inc. Compete in One Fair Single Waterfall Ad Fill Order First Last Ads’ eCPMs Low High DP Dynamic Price Floor Beating Out Historical Data by $0.01 HD

© 2017 Appodeal Inc. © 2017 Appodeal Inc. Biased Ad Mediation Exists Ad Fill Order First Last Ads’ eCPMs Low High Ad Mediator’s Own Marketplace Placed First Despite Lower eCPM

© 2017 Appodeal Inc. The Next Generation SOFT HEADER BIDDING

© 2017 Appodeal Inc. Simultaneous Ad Requests Ad Networks Ad Mediator Header Bidding Soft Header Bidding

© 2017 Appodeal Inc. Ads’ eCPMs Low High VS $10 Price Floor $17 Soft Bid $15 Soft Bid -20% +5% Soft Header Bidding 1 2

© 2017 Appodeal Inc. VS $10 Price Floor $13.60 Likely Actual Yield $15.75 Likely Actual Yield Ads’ eCPMs Low High -20% +5% Soft bid $15 The Next Generation: Soft Header Bidding 3 4

© 2017 Appodeal Inc. No more waterfalls Efficient and fair bidding Fast app performance The Next Generation: Soft Header Bidding

© 2017 Appodeal Inc. Learn more: bit.ly/futurebyappodeal hi@appodeal.com