The rapid pace of digital innovation has media companies scrambling to figure out which new emerging technology will be a hit with consumers and how to reach these consumers on these many new channels. Traditional media like print, TV, radio, and outdoor media will need to take advantage of wearables, beacons, digital wallets, augmented reality, etc and will have to respond to disruptive technology to remain competitive in an increasingly dynamic business landscape.

1. Emerging Technology, Shiny Objects & The Future of Media
Fred Steube
Senior Director of Emerging Technology
Cox Target Media – Valpak | Savings.com | Favado

2. 2
Hello! – I’m Fred

3. 3
We Are A Media Company

4. Cox Target Media Drives Promotional Transactions for Businesses & Helps Families Save Money
4
40M affluent HH
6M monthly UV
157M display
2.8M geo email
230 savings gurus
70M mobile
Diversified Reach

5. 5
1st to Market – Digital Wallets

6. 6
Innovation – New Markets, Channels & Businesses
New Markets (eg, Hispanic Marketing)
Automobiles As 5th Screens
Card-Linked Offers (CLO’s)
Print & Mobile-Based AR
Patents & Intellectual Property
Wearable
Technology

7. 7
Our World is Digital

8. 8
Some Social Media Reach Stats
Source: The Social Media Hat; May 2014

9. 9
Some Social Media Reach Stats
Source: The Social Media Hat; May 2014

10. 10
Nearly 3 Billion People Online w/ ~Half to Join
Global Popula on
Internet Popula on
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E
(millions)
Global Internet Popula on
Source: Interna onal Communica on Union, Google
Global Internet Population

11. 11
It’s a Mobile World
1990
2014

12. 12
The Pace of Digital Business Transformation is Dizzying
32 billion connected devices & creating a $10+ Trillion industry by 2020 - EMC Digital, April. 2014
Highly targeted facial & pattern recognition advertising – Mark Cuban; Dallas Mavericks
$1.3 trillion in mobile payments by 2017 – Juniper Research, Aug. 2013
Biometric authentication will replace current methods of payment presentment - Mobile Banking & Payments for Emerging Asia Summit, 2013
60 microprocessors the aver age new car
– MIT Technology Review, “The Internet of Things” Business Report, Aug. 2014

13. 13
Technology Cycles Compressing – Still Early Cycle on Smartphones + Tablets,
Now Wearables Faster than Typical 10-Year Cycle

14. 14
Mobile Device Adoption Growth – Android = 4x iPhone
Source: KPCB, May. 2013; Gartner, Morgan Stanley Research, as of Q2, 2013)
Source: KPCB, May. 2013; Gartner, Morgan Stanley Research, as of Q2, 2013)

15. 15
US Advertising Online Growth
Offline
All Other Online
Mobile
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(billions)
U.S. Adver sing
Source: IAB, U.S. Census Bureau, Stategy Analy cs. BI Intelligence es mates
US Advertising

16. 16
Mobile Advertising = Where All the Ad Growth Is
Search
Display
Messaging
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
2007 2008 2009 2010 2011 2012 2013E
(Millions)
Source: IAB, BI Intelligence Es mates
Global Mobile Adver sing Revenue
By Format
Global Mobile Advertising Revenue
By Format

17. 17
PCs are Giving Way to Mobile Connected Devices
Personal Computers
Smartphones
Tablets
Smart TVs
Wearables
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
1,800,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E
Units
Source: Gartner, IDC, Strategy Analy cs, Company Filings, BI Intelligence Es mates
Global Internet ConnectedGlobal Internet Connected DDeevvicicee S hSihpmipemntes nts

18. 18
Over 1/5th of Internet Traffic is now from Mobile
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec-08
Apr-09
Aug-09
Dec-09
Apr-10
Aug-10
Dec-10
Apr-11
Aug-11
Dec-11
Apr-12
Aug-12
Dec-12
Apr-13
Aug-13
Dec-13
Source: StatCounter, December 2013
Global Internet Traffic
Desktop Vs. Mobile
Global Internet Traffic
Desktop vs Mobile

19. 19
Mobile is ~25% of E-Commerce Traffic, but Only 13% of Sales
Desktop
E-Commerce Sales
Mobile
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13E
($millions)
Source: BI Intelligence, comScore, Federal Reserve Economic Data--St. Louis Fed
U.S. E-Commerce Retail Sales
US E-Commerce Retail Sales

20. 20
The Future for Media Companies?

21. 21
Disruption of Media Companies
TV
Digital Download Services
Radio
Print
(Groupon) Consumer paid, performance-based advertising

22. 22
Augmented Reality as a Savings Tool

23. 23
Bluetooth Low Energy (BLE) Beacons as a Shopping Utility

24. 24
Connected Cars as Communications Platforms
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2009A 2010A 2011A 2012A 2013E 2014E 2015E 2016E 2017E 2018E
Unit Shipments (thousands)
Source: SBD,GSMA
Connected Car UnitConnected Car Un iSth Siphmipemnetn Fto Froecreacsat st

25. 25
Wearable Technology Growth
Smartwatches
Fitness Bands And Other
Ac vity Trackers
Rest Of Wearables Market
0
50
100
150
200
250
300
350
2010 2011 2012 2013 2014 2015 2016 2017 2018
Millions Of Units Shipped Annually
Source: BI Intelligence Es mates
Global Wearable DeviceGlobal Wearable Device U Unniitt SShhiippmmeennttss

26. 26
Wearables Will Remain Mostly A US-Based Phenomenon For
Some Time
Global
U.S.
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2010 2011 2012 2013 2014 2015 2016 2017 2018
(Millions)
Source: BI Intelligence es mates *Assumes 42$ average selling price for wearable devices
Wearable Device MarketWearable Device Mark eSti zSeiz Feo Froecreacsta s t

27. 27
Venture Capital Is Piling Into ‘The Internet Of Things’
$80 $66
$530
$93.4
$33.8 $26 $15.5 $3.4
$3,200
$300
$3,300
$250
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Nest FitBit Jawbone Oculus VR Withings Pebble SmartThings Es mote
(Beacons)
(Millions)
Source: News Reports, Company Releases
Total Funding And Latest Valua on By Company
Total Funding Latest Es mated Valua on (When Available)
Total Funding & Latest Valuation By Company

28. 28
The ‘Internet of Things’ Alone Will Surpass The PC, Tablet,
And Phone Market Combined By 2017
Smartphones, Tablets, PCs
Internet Of Things
0
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
7,000,000,000
8,000,000,000
9,000,000,000
10,000,000,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E
Source: BI Intelligence Es mates
Global Interent DeviceGlobal Internet Dev Iincset aInllsetda lBleadse B ase

29. 29
Economic Trend Toward Performance-Based Models
AWARENESS - CPM Focus -
CONSIDERATION
- CPC Focus -
INTENT - CPE Focus -
TRANSACTION - CPT Focus -
•Direct Mail & Traditional Media
•Websites & Social Networks
•Maps
•SEO
•LBS Maps
•Ratings & Reviews
•Deals/Coupon Apps
•Deals/Coupon Websites
•SEM
•Email
•Offer Apps/Passbook
•Shopping Carts
•Affiliate Networks
•Reminders/Alerts
•Digital/Mobile Wallets
•Check-out
•Cloud-based Payment Accounts
•Credit Cards
•Views
•Mass Impressions
•Reach/Distribution
•Searches for Brands
•Click to View
•Registrations
•On-site & In-app Searches
•Filtering/Sorting of Results
•Searches for Products/Services
•Open rates
•Online Prints
•Display to Redeem
•Card & Loyalty Acct. Synching
•Wallet Registration & Acct. Configuration
•In-store Redemption & Purchases
•Online Purchase
•Calls
CONSUMER INTERFACES
SUCCESS METRICS
Loyalty

30. 30
The Future of TV: Personalized, Connected, Dimensional
Connected Surfaces - New Ad Contexts & Ubiquitous Consumption
Rich Media Formats – New Programming
Flexible Screens – Increased Distribution
Smart, Personalized Ads
- By 2017, more than half of the US population will regularly watch a TV show online
- Streaming TV & video content on smartphone,tablet and connected TVs will fuel audience growth

31. 31
The Future of Radio: Personalized Content & Dist. Ubiquity
Partnerships & Streaming Radio Everywhere
Radios Will Not Exist in Cars – Mobile Connectivity
Radio Stations Will Expand Content Offerings
User-Controlled, Personalized Radio
- 50%+ of the US population are digital radio listeners
- 63.2% of US internet users will tune in to digital radio monthly

32. 32
The Future of Print: Interactivity via AR, NFC, E-ink, Wireless
Print & Mobile-Based AR
E-Ink – Rich Media Embedded in Print
Near Field Communications (NFC) Tags – Smart Posters, Sprayable Tags
Inevitable Transition to a Wireless Digital Future
- Online advertising scale is currently much lower than print advertising – Will shift to digital - ~ Every $7 of ad spend via print newspapers, comparable digital advertising is only about $1

33. 33
The Future of Media
Will Take Advantage of the Internet of Things
Severe weather alerts or recovery drink offer
Facial scans & relevant marketing/ads
Promotion for auto service when needed
Ad to save consumer $ on home restoration
Coupon for milk sent when low
Tagged media – info & purchase oppty’s

34. 34
The Future of CMG
Watch Video: http://youtu.be/5IKfE2zJIxI

35. 35
Thank You
Fred Steube
Senior Director of Emerging Technology
Cox Target Media | Valpak | Savings.com | Favado 727-399-3521
Fred_Steube@coxtarget.com
@steube
http://www.linkedin.com/in/steube