YuMe.
Digital Video
Audience Platform.
March 2015.
1
©2013 YUME. ALL RIGHTS RESERVED.
FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements. All statements other than statements of historical fact
contained in this presentation are forward-looking statements. These statements are only current predictions
and are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause our
results or our industry’s actual results, levels of activity, performance or achievements to be materially
different from those anticipated by the forward-looking statements. These forward-looking statements are
subject to a number of risks, including those described under the heading “Risk Factors” in our periodic
reports filed with the U.S. Securities and Exchange Commission, including our annual report on Form 10-K for
the year ended December 31, 2014 and our quarterly report on Form 10-Q for the quarter ended September
31, 2014, and in our future filings and reports with the SEC. Moreover, new risks emerge periodically. It is not
possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to
which any factor, or combination of factors, may cause actual results to differ materially from those contained
in any forward-looking statements we may make. Actual results could differ materially and adversely from
those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking
statements as predictions of future events. Except as required by law, we are under no duty to update or revise
any of the forward-looking statements, whether as a results of new information, future events or otherwise,
after the date of this presentation.
In addition to the U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These
non-GAAP financial measures are in addition to, and not a substitute for or superior to measures of financial
performance prepared in accordance with U.S. GAAP. See reconciliations between each non-GAAP measure
and the most comparable GAAP measure contained in our prior reports filed with or furnished to the SEC. This
presentation also contains statistical data that we obtained from industry publications and reports generated
by third parties. Although we believe that the publications and reports are reliable, we have not independently
verified this statistical data.
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©2015 YUME. ALL RIGHTS RESERVED.
LEADING END-TO-END DIGITAL VIDEO AD PLATFORM COMPANY
Delivering Audiences That Matter to TV Brands
Unlocking
Audience Value
Combining the reach and frequency of TV with the software of digital
Embedded Software + Data Sciences = Cross-screen,
brand-safe campaigns to attentive & receptive audiences
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Massive Global Market in Transition
TV
VIDEO ADVERTISING
2
$ IN BILLIONS
$173.7B1
$15.1
$5.3
DIGITAL
$133B1
1 Global entertainment and media outlook 2014-2018, PwC, Informa Telecoms & Media
2 Global Online Video Advertising Platforms Market, Frost & Sullivan, 2013.
4
2012
2016
Radical Shifts are Causing Audience Fragmentation
Content
Screen
Devices
Per
Person
TV 1-5
Cable 5-500
Internet >10,000
2000
Data
5
2014
Technology
Audience Fragmentation Presents Brand Challenges
Fragmentation
Our embedded software,
buyer and seller audience
software and data
sciences solve three key
audience problems TV
brand advertisers face in
digital video:
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Advertiser Challenges
Inefficient
reach &
frequency
Less
attention &
receptivity
Greater
brand safety
risk
CONSUMER BEHAVIOR
YuMe Opportunity: Extend TV Audiences to Digital
ONE SCREEN AT PRIMETIME
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MULTI-SCREEN VIDEO ALL THE TIME
CONSUMER BEHAVIOR
YuMe Opportunity: Extend TV Audiences to Digital
ONE SCREEN AT PRIMETIME
MULTI-SCREEN VIDEO ALL THE TIME
Is changing the way advertisers plan.
Convergence in ad spend is already happening.
“Video Neutral”
Planning
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The Challenge: Television ≠ Digital Video
≠
Audience
Efficiency
Still provides efficient scale for branding, in
spite of cable and OTT fragmentation
Data &
Targeting
Data & targeting considered imperfect, but
sufficient for branding metrics
Audience
Attention
Primarily long-form content on one screen:
less audience distraction
Brand Safety
Inherently brand-safe: closed ecosystem,
curated content
Massive content and device fragmentation =
inefficient scale for TV brand advertisers
Content and device fragmentation = data
fragmentation
Legacy cookie-based targeting: built for browserbased direct response/display campaigns, but
not viable in app & CTV video environments
Primarily short-form content across multiple
screens = more audience distraction
No inherent brand safety: open ecosystem,
low barriers to entry
Serving TV brand
advertisers’ needs
in digital video
requires a TVcentric approach
The YuMe Platform – A Complete Audience Ad Solution
Publisher Benefits
YuMe provides the
software and tools for
publishers to identify,
segment and measure
their digital video
audiences.
Data sciences allow
publishers to extract more
value from their
audiences.
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Both win.
Publishers maximize
their audience value by clearly
defining the audience for
advertisers who benefit from
having distilled audiences
at scale that meet their
marketing objectives.
Advertiser Benefits
Provides advertisers with
marketing software and
automation tools to find,
target and deliver digital
video ads to aggregated,
qualified audiences in
brand safe environments.
TURNKEY PLATFORM + SERVICES
Purpose Built Video Audience Tech Stack
YuMe Supply Platform
YuMe Demand Platform
• Ad serving: Online, Mobile
and Smart TV
• Multiple buying channels –
Direct, programmatic, private
marketplaces, exchanges
• SSP Integrated with RTB 2.2
compliant exchanges and
demand side platforms
• Full suite of campaign
management, creative,
targeting and reporting
capabilities
• Universal SDKs - Support
for AS3, iOS, Android,
HTML5 and Embedded C
SDKs, MRAID, VPAID
and VAST standard compliant
• Targeting and reporting
across all screens
YuMe
Data Platform
First Party data
collection through embedded
SDK in video delivery environment
Targeting and reporting across all screens.
Integration with advertisers
and publishers DMP
Audience Modeling and
Targeting Capability
• DSP enabling programmatic
procurement of YuMe SDKenabled inventory as well as
third-party SSP inventory
• Deal ID management
• RTB 2.2 Support
• Bidding engine to optimize deals
• RFP/IO Workflow Automation
• 450+ brand advertisers: global,
regional, local
• 150+ Ad Sales & Ad operations
people in NA, APAC and Europe
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POWERING AUDIENCE DISCOVERY AND MEASUREMENT
How Our Data Sciences Work
Data Sciences
YuMe
Audience
Segments
Machine Learning
Algorithm
YuMe technology unifies data and
audience fragmentation
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Leverages disparate audience data
silos via advanced data sciences
Delivers highly targetable,
segmented audiences at
large scale
YUME AUDIENCE SEGMENTS
Data Science Driven Insights
TV Viewership
Ad Receptivity
VCR
Light
55%
Heavy
46%
CTR
0.11%
0.16%
Ad Receptivity by Show
Light
31%
Comedy Genre
Heavy
69%
Other Comedy Programs
54%
65%
The Millers
75%
Two
Twoand
and a Half Man
Men
Modern Family
% Who Viewed Shows
Big Bang
Theory
25%
Other
How I Met
Comedy
Your Mother Programs
77%
How I Met Your Mother
Two
and aa
Two and
HalfMen
Man
Half
Modern
Family
56%
Big Bang Theory
45%
VCR
The Millers
19%
Performance by Age
13%
15%
9%
10%
6%
5%
3%
1%
Age
18-34
35-54
55+
Gender
22%
72%
6%
Male
Female
38%
62%
VCR
0%
70%
60%
50%
40%
30%
20%
10%
0%
0.19%
0.15%
0.20%
0.16%
0.12%
0.12%
0.08%
0.04%
43%
52%
59%
18-34
35-54
55+
VCR
CTR
0.00%
CTR
20%
13
41%
BEHIND THE INFLUENCE
Measuring Brand Impact
YuMe partnered with a third-party research partner to
measure increases in: attitude, awareness, favorability, intent and preference
based on the exposures to YuMe placements
More than 145 brand studies across 9 categories completed since 2010
RESULTS
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Brand Awareness
72.5%
Overall CPG Brand Lift
1
Purchase Intent
7x
71.2%
Norm
1 Data from Nielsen Online Brand Effect (formerly Vizu Ad Catalyst)
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1
The Power of Television – Magnified
Cross-platform exposure drives superior brand-lift compared to TV alone for
AdAge 100 Advertisers.
26%
43%
34%
60%
100%
67%
24%
100%
20%
15%
15%
10%
General Recall
Brand Recall
Message Recall
Exposed To YuMe Campaign + TV
15
9%
Likeability
Exposed to TV Ads Only
12%
6%
Purchase Intent
The Multi-Screen Multiplier
Measuring brand lift across screens on an ongoing basis shows that single
platform offerings simply leave performance on the table for brands.
2%
14%
25%
36%
AD RECALL
BRAND X
OPINION CHANGE
50%
61%
51%
More negative (Net)
41%
Neutral - No change in opinion
39%
More positive
25%
CONNECTED TV
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©2015 YUME. ALL RIGHTS RESERVED.
21%
MOBILE
26%
11%
ONLINE
MULTI-DEVICES
Much more positive
The Multi-Screen Multiplier
Measuring brand lift across screens on an ongoing basis shows that single
platform offerings simply leave performance on the table for brands.
TOTAL POSITIVE AD RECALL
87%
2%
14%
76%
25%
36%
62%
AD RECALL
BRAND X
OPINION CHANGE
50%
50%
61%
51%
More negative (Net)
41%
Neutral - No change in opinion
39%
More positive
25%
CONNECTED TV
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©2015 YUME. ALL RIGHTS RESERVED.
21%
MOBILE
26%
11%
ONLINE
MULTI-DEVICES
Much more positive
CONTINUING TO PAVE THE WAY
From Innovation to Industry Standard
First video solution to:
2007
2008
2009
2011
2013
2014
Launch dynamic
ads
Run
interactive
InVideo
overlay ads
Introduce iGRPs
via Mindshare
partnership
Be embedded
into internetconnected TVs
Integrate 1st party
data targeting and
measurement
capabilities
Launch a Programmatic
Video Branding
SolutionTM--Video Reach
FROM DAY 1
2007
2008
2009
2010
2011
2012
2013
2014
100% In-Stream Placements
100% Visibility
2006 to
2008
Offer cross-platform
ad solutions
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2009
2010
2012
2014
Introduce a unit that
synchronizes an instream video ad with an
in-banner ad as well as
the first to pull in a XML
feed into an ad unit
Offer volume
video ads in
iPhone apps
Launch an inventory
grading system that
identifies optimal ad
placements
Establish industryfirst Traffic Quality
Unit focused on
creating best-inbreed practices
Professionally Produced Content
Always Brand-Focused
INTRODUCTION
YuMe Company Profile
Clients and Partners
FOUNDED IN 2004
PUBLIC COMPANY
LISTED ON NYSE
ORIGINAL INVESTORS
ACCEL Partners
BV Capital
Intel Capital
West Summit Capital
DAG Ventures
Menlo Ventures
Samsung Venture Investment
Khosla Ventures
Translink Capital
YuMe operates the
largest independent digital
video brand advertising platform
across four screens: smartphones,
tablets, PCs and Connected TVs.
Operations in North America,
Europe and Asia.
Expanded to China and
Latin America in 2014.
500+ Employees
AWARD WINNING
TEAM AND TECHNOLOGY
Connected TV Awards 2013
Digiday 2012 Best
Video Ad Network
Advertiser Perceptions
Highest Rated Media
iab Rising Stars Award
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Global brands and media companies relying
on YuMe technology in video ad serving,
targeting, audience sciences, creative services
and brand strategy.
INTRODUCTION
Traction with Large Advertisers
Clients and Partners
Long-Standing Relationships:
• 106 advertisers with >$1 million in
lifetime spend
Low Churn -
• 18 advertisers with >$5 million of
lifetime spend
’13 Advertisers Spending in ’14:
• 19 of top 20 advertisers
• 44 of top 50 advertisers
Campaigns over $250,000:
• 60% of total Q4 revenue
• Mid-teens Y/Y growth
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Global brands and media companies relying
on YuMe technology in video ad serving,
targeting, audience sciences, creative services
and brand strategy.
COMPANY OVERVIEW
Global Offices and Ongoing Expansion
Offices:
Redwood City HQ
New York, Chicago, Los Angeles,
Boston, Dallas, Detroit, Atlanta,
Miami, Toronto, Mexico City,
Pune, Chennai, London, Paris,
Madrid, Hamburg, Stockholm,
Hong Kong, Shanghai
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2014 Total Headcount: 500+ Employees
Financial Highlights
Strong Advertiser Growth
Sustained Gross Margin
Operational Leverage
R&D Advantage
Proven Business Model
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Early days of ad dollars from TV to digital video
Seeding the clouds for long-term growth
Illustrates platform’s strength & differentiation
Already consistently within the long-term operating model
Sales team investments expected to peak in 2014
Efficient R&D operations from India-based tech centers
Strong & efficient R&D operations
India-based technology development center
US business profitable on an adjusted-EBITDA basis
Revenue and aEBITDA Trend
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Gross Margin Trend
48.8%
48.4%
47.5%
45.8%
45.3%
48.6%
48.1%
47.3%
45.9%
45.6%
44.6%
42.8%
Q1'12
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Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q3'14
Q4'14
Long-Term Operating Model
FY 2011
FY 2012
FY 2013
FY 2014
Target Model 2
Gross Profit
38%
46%
47%
48%
46%-48%
Sales & Marketing
34%
27%
31%
37%
17%-18%
General & Administration
15%
11%
12%
12%
9%-10%
Research & Development
4%
2%
3%
3%
5%-6%
(11%)
10%
6%
1%
18%-22%
% of Revenue 1
Adjusted EBITDA
2
1 GAAP-based, except adjusted EBITDA
2 Target model assumes stock-based compensation and depreciation and amortization expense of 5%-6% of revenue
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Thank you.
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©2013 YUME. ALL RIGHTS RESERVED.