Performics Next20 Americas Trends & Insights Report

Next20 Americas Content & Presentation Summary

Morning: Performics Internal Teams: Growth Solutions, Part 2

Day 2

Day 1

Event Overview

Performics Internal Teams History of Performics 2018 Strategic Priorities Growth Solutions, Part 1

Afternoon: Clients, Press & Partners Data, Trust & Intent in the Age of Connection How Brands Can Survive the “Info-Apocalypse” Rise of the Assistants The Next Generation of Voice Shopping Finding Emotional Connection in the Digital Era 2

Agenda, Day 1 Internal Teams 1.

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Performics @ 20 2018 Strategic Priorities Americas Regional Updates Global Delivery Intent Based Planning Performance Suite Commerce Adobe C2C

Performics @ 20

Key Takeaways: Performics’ Past: • We were founded in 1998 as Dynamic Trade.

• Mission is similar to today: “To be the leading provider of… performance-based solutions to enhance marketers’ e-commerce offerings. We will provide best-in-class full-service solutions and employ the best value of technology for our clients.”

Performics’ Present & Future: • The Performics 2018 & Beyond plan is founded upon 3 Strategic Priorities:

David Gould Global Brand President This session covered Performics’ history from its founding to today, our brand evolution, plus our plans for 2018 and beyond.

1. Elevating the Brand 2. Solutions Consulting 3. Global Distributed Delivery • The creation of the Global Steering Committee reflects our plans to move from a federation to a Global Network. The GSC is comprised of market leads from our top 8 Markets and the Global Executive team.

• Our 2018 Brand Refresh will better reflect our positioning, including new language and a new logo.

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Performics Past: 20 Years of History

PFX founded as a top 3 Affiliate Network

SEO launch

1998

2003

2001

Paid Search launch

DoubleClick launches DART Search (w/ underlying PFX ConnectCommerce Tech)

2004

Acquired by DoubleClick

2006

Media & Content align under Performance Services Social & Display media launch

2008

Acquired by Google Acquired by Publicis

2010

Expansion to 26 countries

2011

2012

Global expansion under ZenithOptimedia (3 centers: Chi, London, Singapore) PFX APAC Launch

Expansion to 50 countries

2014

Intent-Based Planning launch

2015

Expansion to 57 countries

2016

PFX becomes a PM brand

2017

2018

20th Anniversary!

Commerce launch

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Performics Next 20: 2018 & Beyond

GLOBAL DISTRIBUTED DELIVERY GDD-powered model to drive operational excellence and continuous improvement

ELEVATING THE BRAND Elevate the visibility of the Performics brand both inside the Groupe and the marketplace

All driven and supported by our Current and Emerging Capabilities, Global Operations and PM/Groupe support

SOLUTIONS CONSULTING Becoming a trusted partner in driving business solutions with our clients

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Key Takeaways: • Elevating The Brand: The Growth Team is dedicated to brand and revenue growth. By elevating the brand, we attract and retain great talent and have greater and more frequent business leads • Solutions Consulting: We want to become strategic consultants delivering best-in-class Performance solutions for superior client business impact

2018 Strategic Priorities This session reviewed our three strategic pillars and our focus on Growth Solutions.

• Global Distributed Delivery (GDD): Utilization of global teammates in key local markets gives us the ability to address client concerns quickly and efficiently.

Next Steps: • Visit the new Growth Solutions Hub on OneSpace, which teaches teammates how to market and implement our proprietary tools.

• Key Contacts for Questions/Opportunities: • Elevating the Brand: joe.reinstein@performics.com, amy.eckert@performics.com, dan.malachowski@performics.com • Solutions Consulting: erin.lanuti@performics.com, jonah.berger@performics.com, paul.dejarnatt@performics.com • Global Distributed Delivery: craig.greenfield@performics.com and kara.loquist@performics.com

Craig Greenfield Chief Operating Officer

Joe Reinstein Global Growth Officer

Erin Lanuti Global Performance 7 Solutions Officer

Elevate the Brand: The Growth Team Strategic Plan Growth Team Mission: Generate massive brand and revenue growth

MARKETING Build the PFX brand Make PFX famous Generate Leads Enable Teams

BUSINESS DEVELOPMENT Win new business +$30M revenue goal

Leverage advantaged tools and processes to drive differentiation and results and win in the marketplace

Solutions Consulting: The Performance Solutions Mandate

Become strategic consultants pushing both ourselves and our clients to reimagine our use cases and boundaries beyond search. Develop performance solutions across the entire marketing mix that deliver superior business impact and client satisfaction.

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Global Distributed Delivery: Utilizing the GDD to support Solutions Consulting For a Full GDD overview: Continue to Page 12

Global Performance Solutions Consultants are developing and refining solutions that can be executed globally.

Solutions are designed for integration with the GDD services to enable standardization and scale of methodology globally.

Team will work in concert with Global Project Management and GDD to develop the process including design, delivery and funding/ resourcing models.

GDD may also be engaged for engineering including the development of applications such as Discoverability.

Performics Americas Regional Update

Performics regional leaders shared a detailed look at news, updates about the business, regional focus areas and examples of success around the Americas.

Key Takeaways: • Teams are growing: • 10 in Canada • 88 in LATAM • 534 in the USA • 139.7M in total revenue across the Americas.

• 16 new regional business wins in the last 6 months.

Scott Shamberg CEO, Performics USA

Sean McConnell VP, Performics Canada

Jorge Rocha Performance Lead, LATAM

• Local market teams will continue to utilize scorecards to self-assess capabilities, with a focus on the top 3 focus areas.

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Global Delivery Theodore Hadjis Global Program Director GDD

Laura Stratford Sr Manager GDD Hub

GDD, “Global Distributed Delivery,” is a core pillar of Performics’ strategy in 2018 and beyond. This session reviewed GDD strategy, structures and governance, case studies from 2017, and targets for the future.

Key Takeaways: • GDD is an evolution of legacy practices including the COEs and the Performance Hub. • Publicis Media GDD is now operational, leveraging highly skilled talent at a competitive rate. Currently we have 240+ dedicated media experts servicing 14+ markets.

• GDD’s operations and media, data, and technology capabilities will become the backbone of service, integration, and innovation across PM solutions.

Next Steps: • For USA questions and onboarding, contact laura.stratford@performics.com.

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The phrase Global Distributed Delivery is new, but the solution is not‌it’s an evolution

GLOBAL PERFORMANCE HUB

BEIRUT COE

Seamless augmentation of client teams

Full account management & delivery for MENA

Full account management & delivery for MENA

4+ years, performance media capabilities 180+ dedicated teammates servicing 9 markets

6+ years, performance media capabilities 35+ dedicated teammates servicing MENA

15+ years, technology & data consultancy 8,000+ dedicated teammates servicing globally

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To get started with GDD Step 1 Contact Laura to identify GDD Needs

Step 2 Complete Onboarding Kit and schedule kick off call with the Hub

Step 3 Work begins

Step 4 Begin quarterly & annual GDD planning process

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Intent-Based Planning In this session, the team introduced Intent Segmentations and Intent-Based Competitive Audits as the fundamental deliverables of IBP and showed different applications and case studies.

Esteban Ribero SVP, Planning and Insights

Jessica Aguilar VP, Planning and Insights

Intent-Based Planning has historically been provided as an additional service offering to USA clients by Planning and Insights. Over time, it has become one of the core tenants to our differentiated story and our promise to clients. Therefore, there is now a need to make Intent-Based Planning accessible to everyone at Performics and empower the media practice to lead its application and put consumer intent at the core of our media activations.

Key Takeaways: • IBP is Performics’ way to personalize experiences and integrate our offerings around consumer intent.

• A do-it-yourself toolkit will be rolled out in Q4.

Next Steps: • Check the Growth Solutions Hub for updates and content in the near future.

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A framework that uses digital signals to understand consumer Mindsets A bottom-up approach to planning media and messaging

IDENTITY

Defined

MINDSET

Identified

MOMENT CONTEXT

INTENT

Uncovered

BEHAVIOR

Observed

Results

Performance Media The team reviewed opportunities from Performance Media, including expanding our capabilities in programmatic through PMX Precision, and by utilizing the Darwin Search Suite to use rapid-deploy analytics to drive media efficiency and optimization on behalf of our clients.

Paul Williamson Global President PM, Precision Media

Ram Singh EVP Analytics & Technology, Performics USA

Paul DeJarnatt SVP, Global Performance Media

Key Takeaways: • Partnership opportunities exist with Precision – it’s our job to help identify them to expand client opportunities.

• The Darwin Suite is already driving peak performance on behalf of many existing clients.

Next Steps: • Contact paul.dejarnatt@performics.com to learn more about opportunities with Precision and ram.singh@performics.com for the Darwin Suite.

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The Darwin Performance Search Suite What is it?

Turn-key analytics suite designed to deliver comprehensive performance improvement on all aspects of search

What does it do?

Performance Diagnosis

Yield Optimization

Scenario Planning

Anomaly Detection

Daily Pacing

Competitive Monitoring

Trending Keywords

• Is it real?

• Already utilized in the US, with $400 Million in client spend running through Darwin

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Commerce

Key Takeaways: • Performics has developed commerce capabilities including Marketplace Advertising, Optimization, and Intelligence.

• Performics can leverage Publicis Commerce, which combines solutions hubs across Publicis Media, Communications, and Publicis Sapient, for an end-to-end commerce product.

This session covered how global marketplace commerce is growing rapidly, and clients are looking for commerce solutions. Performics is uniquely positioned to help clients win in the space, creating additional growth opportunities.

• Caiman, a proprietary commerce tool, provides a competitive advantage for commerce management.

• Caiman will continue to evolve into a Performance Commerce Ecosystem, increasing opportunities for media, analytics, and consulting.

Next Steps: • Contact ryan.sullivan@performics.com and lauren.racine@performics.com for questions on Commerce and ram.singh@performics.com for Caiman.

Lauren Racine Media Director

Ryan Sullivan EVP, Performance 19 Services

Conversation2Commerce Learn how to leverage third party earned content – articles, ratings and reviews, etc – to supercharge media plans and commerce.

Conversation2Commerce integrates into existing media plans and can be leveraged across all media platforms and formats.

Erin Lanuti Global Performance Solutions Officer

Cate Cahill SVP, C2C

Key Takeaways: • Qualified earned content outperforms brand and owned content.

• C2C e-Commerce enables teams to place 3rd party content in ads and on product pages to drive greater engagement, sales and ROAS. Able to execute on Amazon, Target and Walmart.

• The C2C team is here to help and often creates bespoke methodologies depending on a client’s business objectives.

Next Steps: • Contact erin.lanuti@performics.com or Cate.Cahill@Performics.com to learn more about C2C. 20

Day 2 – Morning Internal Teams 1. Conversion Optimization 2. Voice Search 3. Revenue Growth Solutions Wrap Up

Conversion Optimization CO is the art and science of optimizing online experiences to reduce friction from media to content and multiply performance across all digital channels. This session focused on illustrating Performics’ Conversion Optimization capabilities and service offerings. It also educated attendees on CO’s current adoption in the marketplace, and how best to market, sell and scope it for existing clients.

Jonathan Shuster CO/UX Group Director

Kathryn Ceranski CO/UX Director

Key Takeaways: • CO is the ultimate performance accelerator for any channel or client, and still represents a competitive advantage in the marketplace, as its adoption rate is still relatively low.

• CO service offerings range from CO/UX consulting to testing/landing page development to 1:1 personalization.

Next Steps • Contact jonathan.shuster@performics.com for US CO and Jonah.Berger@Performics.com for Global CO. 22

Voice Search The session focused on the remarkable impact Voice is having on our daily lives and in our client conversations.

We looked at how consumers interact with different devices both “in-home” and “out-of-home,” and how we can leverage Voice insights and audit findings to develop strategies and activation plans for clients across every channel and country with GDD support.

Jen Hyla VP Performance Content

Jonah Berger VP/Director Performance Content

Key Takeaways: • The Voice proposition will continue to evolve with the constantly changing landscape, so we can’t rest.

• Voice Discoverability Audits are in production, with a target release date of early June 2018.

Next Steps: • Contact Jonah.Berger@performics.com to gain access to Voice resources, identify local Voice compliant clients, and get in touch with the GDD to help scale your local Voice efforts.

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Growth Solutions Wrap Up A recap of the Growth Solutions Hub and Performics’ plans for 2018 and Beyond to become Solutions Consultants. Today, there are 5 Growth Solutions: Intent-based Planning Darwin Search Caiman C2C Conversion Optimization

Key Takeaways: • Growth Solutions make us masters of digital transformation, E2E solutions providers and strategic consultants delivering value for our clients.

Next Steps: • Get comfortable selling these solutions.

• Reach out to the Global Performance Solutions Team.

• Get to know the GDD. • For more info, visit the Growth Solutions Hub

Joe Reinstein Global Growth Officer 24

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Day 2 – Clients & Partners Trends and Insights Report 1.

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What’s Keeping Marketers Up at Night?

Data, Trust & Intent in the Age of Connection How Brands Can Survive the “Info-Apocalypse” Rise of the Assistants The Next Generation of Voice Shopping Finding Emotional Connection in the Digital Era

On April 11th, Performics and our Americas clients and partners joined together in Chicago to celebrate the Performics 20th Anniversary. We reflected on our rich heritage in performance marketing; founded in 1998 as an affiliate marketing agency, launching performance services like search, display, social and commerce, scaled by DoubleClick, bought by Google and now the performance marketing engine of Publicis Groupe.

We’ve come a long way since 1998. Macro forces have caused digital disruption, and power has shifted from brands to consumers, who now leverage technology and digital connectivity to get what they want, when they want. Performics helped lead this revolution.

But Next20 Americas did not dwell on the past. As performance marketers, we embrace digital disruption in our relentless pursuit of business results. The event focused on thought leadership around navigating digital disruption to drive business transformation . . . and setting our clients up to lead in the Next20.

This report highlights a number of trends and insights discussed by our slate of speakers and panelists.

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To get a glimpse into the mind of global marketing executives, Performics commissioned a “Future of Marketing Study,” executed by Northwestern University’s Spiegel Research Center as part of the Intent Lab. We asked 82 marketing executives: what’s keeping you up at night? Here’s what we found: #1: Show Me the Money • ROI • Revenue, Sales

What’s Keeping Marketers Up at Night?

• Growth: More Customers, New Business, Leads • Loyalty, Retention, Customer Lifetime Value #2: Data Management

David Gould Global Brand President Performics

• Data strategy • Data to inform decisions • Data to measure performance #3: Change •Changing consumers •Changing industry •Changing technology We understand the urgency of these challenges and the need for brands, agencies and the industry to transform to perform not only in the Next20, but the near future. Performance marketing used to be a specialized service, but now decisions and optimizations that we make as performance marketers are at the center of building brands. To succeed in the Next20, agencies and brands must partner to solve these industry-wide challenges, and not because these are the things keeping marketers up at night, but because it’s consumers who are really demanding change.

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We’re in the age of Apple, Facebook, Google and Microsoft. But what’s next? In his keynote, Remaining Relevant in Transformative Times, Rishad Tobaccowala, Chief Growth Officer, Publicis Groupe, opined on the next “age,” the Age of Connection: • Data Will Connect to Data: To illustrate, machine learning and AI are good examples of data writing the data. Machines will know us better than we know ourselves. Rishad noted that 1 in 3 Amazon revenue dollars comes from recommendations that Amazon makes based on people’s previous shopping history. The value of data comes from the refining of data—making it actionable to engage consumers.

Data, Trust & Intent in the Age of Connection

• Things Will Connect to Things: Get ready for all “things” to be interconnected in the Age of Connection • People Will Find New Ways to Connect: Mixed reality, AR, VR, voice. More broadly, the Internet has contributed to an unstoppable wave of globalization that has created incredible connections between people across borders over the last 20 years.

Who will win in this future? Rishad remarked that bigger companies with large amounts of data, as well as the ability to invest in AI, will likely be the victors—Google, Microsoft, IBM, Amazon. Companies that align with the trend, and think globally, are always best positioned. In fact, Rishad stated that “90% of success is aligning with the trend, and the other 10% is luck.”

But data isn’t everything. In order to grow a user base, a company needs data, trust and intent. If you don’t have data, you don’t have facts. If you have data but people don’t trust you, your data is useless. And if people don’t understand and are comfortable with your intentions (e.g. why you’re doing something or what you’re going to gain) they’ll go elsewhere.

Rishad Tobaccowala Chief Growth Officer, Publicis Groupe

Social channels have become content accelerators for fake news, and advertisers are demanding change.

Jack Myers, Chairman and Media Ecologist, MediaVillage, moderated a panel focused on brand safety in the era of digital misinformation.

How Brands Can Survive the “InfoApocalypse”

Performics Intent Lab research has revealed a steep decline in consumers’ perception of the credibility of online information. And the importance of trust in online information declined 62% year-over-year from Q3 2016 to Q3 2017. People are changing their expectations of the Internet to match their attitudes.

Misinformation online won’t result in people giving up the Internet, but people are minimizing the importance of the Internet as a source of trustworthy content. And although consumers have lowered their bar around online news, as content becomes more accessibility on voice assistants and in cars, trusted information sources/brands will become critically important again.

• It’s Not the Brand Impressions, It’s the Brand Experience: With fake news and content swirling, branding is more important than ever. And brands must pay off the promise in their ads because, oftentimes, the brand is no longer in control. A brand perception is formed not by what you say, but by what consumers say about you. Truly understand consumer pain points and prove that you can help consumers in their moments of need.

• The Power of Influence: While consumers (especially younger ones) don’t necessarily trust the mainstream media, big brands or big institutions, they do put a lot of faith in people that sound and look like themselves. It’s not that consumers don’t trust; in fact, they’re very optimistic, but the message must come from a place of authenticity.

Understand who you are, who you’re relevant to and the right types of influencers to help deliver your message.

Utilize the power of influence and content to connect with consumers with Conversation2Commerce .

• Openness & Transparency: Due to recent high profile events, there’s a great opportunity right now for the general public to better understand how advertising platforms work and how consumer data is used. Embrace openness and transparency around issues like data privacy in order to win trust from consumers.

Jack Myers, Chairman and Media Ecologist, MediaVillage Esteban Ribero, SVP, Planning & Insights, Performics Helen Lin, President, Digital Investments & Partnerships, Publicis Media

As we enter a new era of conversational computing, voice-activated assistants like Alexa and Google Assistant are helping people get things done at home, in the car, and on-the-go to be more productive overall. Chris Blocker, Global Product Partnerships, Assistant & Dialogflow, Google, gave Next20 attendees a peak at Google Assistant, a virtual personal assistant available on mobile and smart home devices, which engages in two-way conversations. In fact, 70% of requests are in natural language.

Unlike voice search (which is more of an input), Google Assistant creates an ecosystem enabled by Actions on Google and built by Dialogflow (a tech company acquired by Google). The technology uses machine learning to understand user intent; consumers don’t have to change their behavior to adapt to technology. It allows voice, type, tap and Google Lens to engage users in a way they’re comfortable with and used to. The audience size is growing as it works across 400M+ devices (such as phone, speaker, watch, laptop, TV, car, smart display, etc.).

Rise of the Assistants

Why Should Brands Test Assistant?

• Google Assistant helps reach new users across various devices • Brands can benefit from being first movers on a new platform that creates more authentic conversations with users • Brands can develop technical know-how to shape the new platform Google Assistant offers new ways to connect with consumers through micro-moments to build brand identity.

It’s well worth testing, because not adopting Google Assistant may mean losing the edge as one of the first brands to interact with tech savvy consumers. The platform is best leveraged as an awareness-driven vehicle because, at the moment, tracking capability is not yet fully capable.

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Voice shopping is the new digital frontier. In fact, 44% of people who own a virtual assistant said they make a voice purchase weekly (Google). This number will increase as brands optimize voice shopping to create more dynamic and convenient experiences. Scott Shamberg, Performics U.S. CEO, led a panel on the Future of Commerce, with voice shopping as a key topic.

Implications for Marketers We’re in the early days of a bourgeoning voice commerce industry. Brands should keep 3 important factors in mind as consumers adapt to this mode of shopping:

The Next Generation of Voice Shopping

• Natural Language: People use conversational language when conducting voice searches, so optimize accordingly • Position 1 is the New Page 1: Rank is even more important in voice than traditional search, as the first listing is the listing most voice assistants will suggest • Sound: Voice commerce is poised to make sound more important in the digital shopping experience.

Highlight sound and music to enhance journeys and increase recall. Additionally, voice search data can provide a deeper level of consumer sentiment and intent than basic text search data.

While still in its infancy, voice has the capability to change how consumers engage with brands and how brands understand consumer wants and needs.

Brands that adapt quickly to this new digital medium will realize a competitive advantage in the market.

The panel also discussed Publicis Media’s proprietary Future of Voice research. And another way to win in commerce marketplaces is to leverage Scott Shamberg, U.S. CEO, Performics Performics Amazon advertising bid strategy, Alyson Stevens, SVP, Global Director, Publicis Media auction insights and analytics platform, Caiman.

Ryan Sullivan, EVP, Performance Services, Performics Erin Lanuti, Global Performance Solutions Officer, Performics Chris Blocker, Global Product Partnerships, Assistant &32Dialogflow, Google

We’re living in an ever-evolving state of connection, but are we truly connecting to our customers? To end the content portion of the Next20 event, Bob Bejan, General Manager for Experiential Marketing, Microsoft, gave an inspirational talk on elevating the way we tell stories as brands, agencies and marketers—to more effectively connect with consumers. To continue to grow/evolve and plan for the future, we must realize that although we’ve come a long way in the last 20 years, there’s still a disconnect in the connection process. We must break away from the traditional storytelling narrative.

Finding Emotional Connection in the Digital Era

Best Practices for Marketers 1. Spend more time on the customer journey 2. Keep the narrative short and simple 3. Consider the small details 4. Listen and respond 5. Create and make for the medium

Bob Bejan General Manager for Experiential Marketing Microsoft 33

After the content portion of the event, attendees enjoyed interactive tech experiences from Microsoft, Google, Adobe, Amazon and Unanimous AI

Tech Fair

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Social Chatter

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Happy Birthday Performics!

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