Kindness in Advertising

The Big Reset 2023 | The User Experience Imperative Kindness in Advertising

Website Email Text Ads The fastest, kindest More one-to- One partner across High-impact ads for way to grow your one, less spam- channels drives unrivaled engagement subscriber list. and-slam. unmatched scale. and viewability. Wunderkind is a leading multi-channel marketing solution that enables brands to create and build relationships with their customers through email, d text, websites, and ads. n i k r e d Wun

# The Landscape Market signals contextualize # Consumer Sentiment Survey methodology and objective # The Problem The bottom line # The Stakes What does an unhappy user look like? # The Solution Playing to win # Why We Do WhatWe Do Say hello to WunderKIND Ads

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11:11 Notes Done lan Everyone is abuzz about Privacy and Identity –and we ds have plenty to add. But consider this -once you cape know who your user is, how do you engage them meaningfully? Are brands and publishers being KINDto their users?

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CONSUMER SENTIMENT A NOTE ON METHODOLOGY - US-based consumers, represented equally across Northeast, South, Midwest, and West. We went straight to the horse’s mouth. - Gender split 50/50. - Age-range 16-65. In partnership with Attest, Wunderkind conducted a survey, deployed - Regular online shopper defined as minimum of one to 1,000 digitally-active consumers who regularly shop online and are transaction per week. active across devices. - Active 2+ type device user defined as minimum of 4 uses per week. The goal?To qualitatively assess US consumers’ attitudes, - Representative across employment types, professions, preferences, and behaviors in regards to content engagement, marital status, household incomes, languages spoken, etc. publisher site experience, digital advertising, and e-commerce purchase drivers. We then analyzed the data to surface insights about ad experience. What We Found Methodology

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THE PROBLEM 11:11 Notes Done ine Consumers are simply not happy with how advertisers l and publishers are engaging e m them digitally. And this sentiment is only th o intensifying, making a bad t situation worse. t bo

THE PROBLEM Consumers Feel Unheard 75% Their experience is seemingly don’t feel publishers 70% not considered a priority by respect their digital don’t think either player experience advertisers respect their digital experience It’s not a blame game, but… The historical focus on reach (by advertisers), and monetization (by publishers) has outweighed user experience. They’ve forgotten to be KIND 1 Consumers Feel Unheard 0 Their experience is seemingly not considered a priority

THE PROBLEM Ads= the % % of users find their content feel digital ads have consumption experience become moreintrusive culprit? interrupted by ads over the last few years Small ads get lost. Large, obtrusive ads don’t P.S. Despite standards set by the account for user experience and they disrupt and Coalition for Better Ads, the bifurcate content consumption disconnect is getting progressively worse over time

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THE STAKES 63% of users who install AdBlock do so because they find ads “intrusive,” “annoying,” and/or “disruptive” Lose/Lose Annoying ads are a net-loss across the stakeholder spectrum -for advertisers, publishers, and users. Advertisers are unable to reach their target 52% audience, publishers are cut off at the knees trying to drive revenue, and users’ onsite of those who do not already have AdBlock experience is watered down. installed have recently considered installing it following an irksome experience

THE STAKES USER REVOLT | The Bleed Poor experiences hamstrings both sides of the marketplace from achieving their goals % % % of consumers are of consumers have a of consumers will not unlikely to return to a negative perception purchase from an publisher site that of advertisers whose advertiser with interrupts or blocks ads are disruptive intrusive or annoying their experience ad experiences

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THE STAKES Give Them What They Want THE DATA IS CLEAR state they are most would preferto seeads only likely to engage with an ad when they’ve finished 68% when completely disengaged 60% engaging with the publisher from content content they are perusing The Two-Way Value Exchange Give the user what they want, how they want it (a seamless content engagement experience), and they’re happy to provide what what you want in return (meaningful engagement). Our survey results show that users are not opposed to advertising, they just don’t love disruptive experiences.

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WHY WE DO WHAT WE DO Ads are not the culprit if they are served in a thoughtful manner once a user has disengaged from publisher content. In fact, when ads are served at the right time, a user is happy and willing to meaningfully engage. We created a solution that considers how and when is best to present ads to users. USER-FIRST AD EXPERIENCES

WHY WE DO WHAT WE DO Why We Do What We Do How It Works Disengagement Behaviors We run 4 billion A/B test impressions every month to understand which user behaviors drive the best performance. Through our learnings, we found that a non-intrusive approach that puts user experience and publisher content first is the best way to get the user to pay attention and engage with the ad.

WHY WE DO WHAT WE DO OVERLAY IN-FEED MASTHEAD ENDCAP WunderKIND Ad Formats Once we’ve identified the Wunderkind’s custom placements are available in a multitude of formats and are designed to fit both our advertiser and publishing partners’ right time to show an ad, we needs. Our placements range from large high-impact display to standard IAB display. All of our formats are available on both desktop and mobile, then deploy the right format. and our large format ads come with free creative services to ensure they make a big impact.

WHY WE DO WHAT WE DO We’ve built a marketplace of 200+ premium brands and 300+ toppublishers who recognize the importance of a user-first ad experience.

WHY WE DO WHAT WE DO The proof is in the pudding. We have established that placing ads 79% 38% based on identified behaviors that signify Driving Viewability HighAttention Quality +31% disengagement from publisher content not Over-Indexes to display Over-Indexes in lift to Qualified Traffic only create a better user experience, but Results 61% benchmark benchmark (24%) Lift in qualified traffic are also optimal for garnering true qualified engagement with ad messaging compared for to standard display and high-impact Advertisers activations. & Publishers $10-15 5-10% #5 Leading CPMs Incremental Top Gross CPMs driven by Demand Revenue Partner our inventory Avg. lift in ad revenue Consistently in top 5

the A respectful and brand safe user experience is at the heart of Lately, in Digital everything we do. THE HEADLINES SHAPING 2022 WunderKIND/Ads WunderKIND Ads don’t render on page load. Instead, they recognize real-time behaviors to find when a visitor has finished their The Recession Obsession session. Once a user has disengaged, we then difference UNCOVERING WHAT YOU NEED TO KNOW deliver a kinder ad experience. Privacy Tracker 2022 IMPACT ON BRANDS, PUBLISHERS, & MARKETERS The Marketer’s Personalization Report Card UNCOVERING GAPS BETWEEN MARKETER & CONSUMER PERCEPTIONS Playing to Win in the Attention Economy COMPELLING ENGAGEMENT AMID THE ATTENTION RECESSION Exclusive Publisher Inventory Unique Premium Demand Access 300+ top publishing partners in We work directly with media buyers across Wunderkind’s premium marketplace. 200+ brands to deliver on their goals. The Great Text Acceleration SOPHOMORE NO MORE, TEXT CLAIMS ITS SEAT AT THE TABLE Impactful CPMs Qualified Engagement Advertisers bid more for our elevated Emphasis on UX garners true, qualified performance, allowing us to deliver higher engagement with ad messaging. IKYK / Retailers Get in the Ads Game CPMs to publishers and to drive increased EXPANDING THEIR SCOPE OF REVENUE GENERATION STREAMS revenue. Sleep on Email at Your Own Risk QUANTIFYING THE COST OF NOT PAYING HEED TO THE BASICS For Advertisers For Publishers