Financial closeout 20120817

Financial Closeout 20120817 James Park for Sharethrough

Financial Closeout 20120817 Notes 1 Write down the steps, then do the breakouts.

Advertiser: IO Contract # of views Type of view (CTP/Products nuances here) Rate The period/dates (flight). Lots of pushback from advertisers on this. $1000 total, $400 first month, $600 second month.

Capture view goals.

Advertisers: Always want to see monthly (maybe some don't care?).

We bill based on when things are delivered.

Complication is usually on the pacing.

Keeping track of rate(OSI) is important.We can save a lot of money by not over-delivering.

Not necessarily important for finance or closeout. But important to know monthly they can bill for.

Campaign 1

Middle of the month (pub closeout?): COPS provides the numbers (weekly. AMs pull the data now). compares to AppNexus Go with Jenna to check for errors.

Looking by campaign, # of views. Look at pub & each campaign they ran.

Should be the same number for advertiser & publishers.

AppNexus shows us over-delivery. HQ sees over-delivery too because it's baked into trafficking.

Manually convert pub CPM into Adv CPV. Verify pub numbers first then resolve it into advertiser.

Some publishers we pay the lower # of views (of asked for/actual).

Some, for the actual views.

These guys need capping.

Campaign 2 Campaign 3

Need to know what campaigns are running in a particular month.

Campaign 4 Campaign 5

Pacing by week possible (for COPS).

Jan

Feb

Mar

Apr

May

Jun

Jul Store the IO in the system.

Make a booking, gets into salesforce.

Campaign runs, creatorious gets info.

Quickbooks billing.

There needs to be a link between these three systems.

Make sure the numbers across the systems are the same numbers.

Otherwise we lose the connection.

Salesforce currently creates the number.

Booking, Revenue, Cash.

MOST IMPORTANT! Don't lose the paper trail ID (Salesforce ID)!

So many campaigns are very similar to each other.

For resolving the numbers month to month, Sharon does the advertisers. Uses #s from pub orders to bill advertisers.

COPS does the pubs.

Sharon would like to know what publishers are expecting.

Optimize rate: will publishers complain about not being given enough?

Keep track of a campaign's invoice billing. First, middle, final.

When to do feedback loop to COPS to optimize pub order so we don't overshoot advertising?

Incrementals: reductions, budget cuts. more about OSI, not necessarily finance closeout.

Out of pocket costs. Need to track costs that aren't billed to pubs.

If in middle, need to know how much spent already for better pacing. And pub ordering.

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Modified: Fri Aug 17 2012 | Page 2/13

Financial Closeout 20120817 Notes 2 Sign IO

Send check to Publisher

Send bill to Advertiser

Action Items: * James/Winnie to review his 1st stab at visual workflow * Review visual workflow with Raena * Sit down with Sharon on Monday to sort out timing of shadowing

July 2012 Publisher Costs in Salesforce Publisher sometimes sends invoices (30%) able to resolve numbers this way. hopefully correct.

Use each individual IO to figure out billing to advertiser every month. By campaign. manually add up the numbers with a calculator.

Jenna helps double-check publisher view numbers.

High Level WorkFlow From creatorious into * Sharon typically will start with Pub Orders for the month of X salesforce * Review total to AppNexus as a sanity check to see if the numbers entered are ~in the right ballpark invoice into quickbooks. * Will then sit down with Jenna to review pub cost rates to make sure they're entered corrected 3 systems. manual process. * Double check eCPV (converted from CPM) for CPM pubs * If this looks right, she can then take this to bill advertisers footnote: * Sharon then looks to see which Advertisers had campaigns that ran in that same month (auto-bill report) sometimes 3rd party beacons don't jive with our collected numbers so have to compromise. * Manual process by taking pub orders and figure out how much to bill the advertiser * Reviews the IO to see: "Give us the creatorious information. That's all Finance needs." * Pacing (how much to deliver/bill for that month) * Products/Rates don't really need to put in salesforce. * If it's a multi-month contract, need to know how much was billed previously (so she knows how much is left to bill) * Typical error since this is a manual looking back and forth * Finance Allow our database to capture Pub Cost information, which will allow us to: * Bill advertisers based on when things are delivered * Always need to do/se things monthly • Be informed of what we're ordering from publishers * Current stages of billing in Salesforces ◦ As a result, have the ability to update the Pub Portal Earnings Reports to show a truer view of what a * Pre-invoice (no invoice yet) publisher is earning * Month 1 (received 1, will need to bill another month) • Be able to calculate cost & margins for internal use * Month 2, 3, 4, etc.

• Generate Pub Payment Reports for Finance * Final Invoice ◦ Take away this manual process from COps that's time consuming and error prone • Generate views/dashboards that are more actionable for COps Important Notes: * If we over deliver (mostly caused by CPM pubs, since we just pay on delivery and not goal), we eat the cost * Need a common id (identifier) that all systems of records share (like Salesforce ID), so she can always track the money Open Questions: * How do we handle Incremental Budgets/Reductions * We need to track non-billable costs

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Modified: Fri Aug 17 2012 | Page 3/13

Financial Closeout 20120817 Notes 3 * Sharon typically will start with Pub Orders for the month of X * Review total to AppNexus as a sanity check to see if the numbers entered are ~in the right ballpark * Will then sit down with Jenna to review pub cost rates to make sure they're entered corrected * Double check eCPV (converted from CPM) for CPM pubs * If this looks right, she can then take this to bill advertisers Middle of the month: COPS provides the numbers compares to AppNexus Go with Jenna to check for errors.

Looking by campaign, # of views.

Should be the same number for advertiser & publishers.

AppNexus shows us over delivery.

Manually convert pub CPM into Adv CPV. Verify pub numbers first then resolve it into advertiser.

* Sharon then looks to see which Advertisers had campaigns that ran in that same month (auto-bill report) * Manual process by taking pub orders and figure out how much to bill the advertiser * Reviews the IO to see: * Pacing (how much to deliver/bill for that month) * Products/Rates * If it's a multi-month contract, need to know how much was billed previously (so she knows how much is left to bill) * Typical error since this is a manual looking back and forth PUBLISHER NUMBERS 1. Look at number of views delivered by pubs. Check against AppNexus & Jenna to make sure not outlandish.

In Salesforce: July 2012 Publisher Costs We pay the publishers based on these numbers.

Some publishers we pay the lower # of views (of asked for/actual).

Some, for the actual views.

These guys need capping.

* Finance * Bill advertisers based on when things are delivered * Always need to do/se things monthly * Current stages of billing in Salesforces * Pre-invoice (no invoice yet) * Month 1 (received 1, will need to bill another month) * Month 2, 3, 4, etc. * Final Invoice

ADVERTISING NUMBERS 2. See what Advertisers had campaigns that ran this month.

Check the campaign numbers in pub and manually ad them up by IO line item type.

Check the IO and multiply by the CPV rate. Make sure it's not over budget.

If multi-month, check pacing to make sure we're not burning it too slow or fast (set by COPS). footnote: sometimes 3rd party beacons don't jive with our collected numbers so have to compromise.

Shakeout: * If we over deliver (mostly caused by CPM pubs, since we just pay on delivery and not goal), we eat the cost Advertiser Info * Need a common id (identifier) that all systems of records share (like Salesforce ID), so she can always track the money Campaign Info IO Info * How do we handle Incremental Budgets/Reductions * We need to track non-billable costs

Make a booking, gets into salesforce.

Campaign runs, creatorious gets info.

Quickbooks billing.

There needs to be a link between these three systems.

Make sure the numbers across the systems are the same numbers.

Otherwise we lose the connection.

Salesforce currently creates the number.

Booking, Revenue, Cash.

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Why is Salesforce being used?

1. Financial Projections 2. Track sales performance.

3. Sales account people enter data into Salesforce.

Modified: Fri Aug 17 2012 | Page 4/13

Financial Closeout 20120817 What Finance does for Closeout Can we document what PUBLISHER NUMBERS VERIFICATION COPS enters?

Every monthly billing cycle: view, rates, goals, etc?

1. In Salesforce, look at the number of views delivered by the publishers. This is entered by COPS. 2a. Check the number of views against what is in AppNexus (Sharon?).

2b. Check the number of views with Jenna to make sure they are not outlandish (which numbers? Just Salesforce?).

3. Once the number of views are verified, now they can be resolved into Advertising Numbers.

4. Pay Publishers for the billing cycle (month?).

Be mindful of: Double-check eCPV (converted from CPM) for CPM pubs.

AppNexus shows us over-delivery (HQ should show this too).

Some publishers we pay the lower # of views (of asked for/actual). CLEANUP Some, for the actual views/impressions. CLEANUP These guys need capping. CLEANUP

ADVERTISING NUMBERS Every monthly billing cycle: 1. See what Advertisers have campaigns this cycle.

2. Find the campaign's number of views in the Publisher Numbers for this cycle.

3. Manually add them up by IO line item type.

4. Check the IO and multiply by the CPV rate. Make sure it's not over budget. How much budget spent per month.

Is it pacing that Finance is managing?

No. The payout per month of a campaign.

Be mindful of: If multi-month, check pacing to make sure we're not burning it too slow or fast (set by COPS).

COPS manually keep track of pacing when making pub orders.

Need to know what campaigns are running in a particular month.

Keep track of a campaign's invoice billing. First, middle, final.

Incrimentals: reductions, budget cuts.

Out of pocket costs.

If in middle, need to know how much spent already for better pacing. And pub ordering.

When to do feedback loop to COPS to optimize pub order so we don't overshoot advertising?

footnote: sometimes 3rd party beacon counts don't jive with our collected numbers so have to come to an agreement about what number to bill.

Shakeout: Publishers Placements Orders View Goals

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Shakeout: Advertiser Info Campaign Info IO Info # of views Type of view (CTP/Products nuances here) Rate The period/dates (flight). Lots of pushback from advertisers on this. $1000 total, $400 first month, $600 second month.

Modified: Fri Aug 17 2012 | Page 5/13

Financial Closeout 20120817 Overall Steps and Influences Formal steps Sign IO Enter Advertiser Enter Campaign Enter line items in HQ Advertiser IO entry. COPS split entry for pub orders(if needed).

Get assets from clients Allocation in Excel Make Ad Units in Creatorious & AppNexus

Influences

Campaign Set Up How does the advertiser want to see it how does COPS want to see it what does the IO say?

Advertiser rate vs pub rate for best bang for the buck. what is OSI % currently? what should it be linearly?

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Campaign Launch Optimization Reallocation Weekly Reports

End of Month Pub Orders Pay Publishers Bill Advertisers

Campaign Ends Pub Orders Sum Pub Views Manually Convert pub CPM to adv CPV Enter into Salesforce: Rate, monthly view goal, views delivered in month, order month ruled for payment of pubs?

We pay the publishers based on these numbers.

Some publishers we pay the lower # of views (of asked for/actual).

Some, for the actual views.

These guys need capping.

Admin/campaigns: views delivered table. How to do the changes?

Advertiser dashboard (infer from campaign set up) Changes? Show bonus (OD/AV) as own row.

Admin placement edit/create

Modified: Fri Aug 17 2012 | Page 6/13

Financial Closeout 20120817 Procedure

3.

Campaign

1.

Network Planning 1. Invoiced Line Item View Goal a

1. Operational Line Item View Goal a

2. Invoiced Line Item View Goal b Budget

2. Operational Line Item x% of View Goal b

Operational Line Items (grouped by cost) Click To Play Incentivized (+Flat Fee +Cost Per Mille) Autoplay Uncategorized Cost Per Completed View Flat Fee Cost Per Mille

sharethrough Advertiser

Advertiser talks to Sharethrough about creating a campaign.

3. Operational Line Item y% of View Goal b (x + y + z)% = 100% 4. Operational Line Item z% of View Goal b

Invoice Order Flight Dates

2.

1. Invoiced Line Item 2. Invoiced Line Item 3. Invoiced Line Item

View Goal x A.Rate = Budget View Goal x A.Rate = Budget View Goal x A.Rate = Budget

3. Invoiced Line Item View Goal a

Adjust the pub orders throughout the campaign to maximize profit and minimize overage.

5. Operational Line Item View Goal c

Sharethrough's Media Strategist takes the Invoice Order and maps which views go to which publishers in which format.

Total View Goal x A.Rate = Budget An Invoice Order is created. We given a budget and date.

Internal Report

Advertiser Report Flight Dates

4.

1. Invoiced Line Item 2. Invoiced Line Item 3. Invoiced Line Item

Actual Views/View Goal Actual Views/View Goal Actual Views/View Goal

Total Actual Views/View Goal

Flight Dates 1. Operational Line Item 2. Operational Line Item 3. Operational Line Item 4. Operational Line Item 5. Operational Line Item Total

Actual Views/View Goal Actual Views/View Goal Actual Views/View Goal Actual Views/View Goal Actual Views/View Goal Actual Views/View Goal

Reports are made for the Advertiser based on the Invoiced Line Items and for Sharethrough Internal based on the Operational Line Items.

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Modified: Fri Aug 17 2012 | Page 7/13

Financial Closeout 20120817 Header Information Network Planning Campaign: Jookie Cola

Flight Dates (8 days) 3/16/2012 - 3/23/2012

Advertiser Incentivized Click To Play Total

View Goal 250,000 50,000 300,000

Rate $0.22 $0.84 $0.64

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Publisher Budget $39,137 $35,863 $75,000

Cost Planned Views 271,500 $16,290 63,500 $24,540 335,000 $40,830

Sharethrough Profit $22,847 $11,323 $34,170

Group the data into understandable bite-sized chunks.

Nate: Show revenue per pub.

Margin 58.4% 31.5% 45.6%

Modified: Fri Aug 17 2012 | Page 8/13

Financial Closeout 20120817 Edit Line Item Network Planning Campaign: Jookie Cola

Flight Dates (8 days) 3/16/2012 - 3/23/2012

Advertiser Incentivized Click To Play Total

View Goal 250,000 50,000 300,000

Overview

Rate $0.22 $0.84 $0.64

Publisher Budget $39,137 $35,863 $75,000

Sharethrough

Cost Planned Views 271,500 $16,290 63,500 $24,540 335,000 $40,830

Profit $22,847 $11,323 $34,170

Margin 58.4% 31.5% 45.6%

Change Log Total entered view goals: 335,000

81% Incentivized

Actual Views Purchased View Goal Planned View Goal Rate Cost/Budget(Margin) Category Margin Pacing

▼ Detailed View

Views 0/271,500 0/65,000 0/80,000 0/50,000 0/0 0/1,500 0/45,000 0/20,000 0/10,000

Total: TrialPay (FB Credits) TrialPay (Soft Offers) SponsorPay Flurry SecretBuilders MyYearBook King.com Bioware Social

SponsorPay

View Goal

Rate

Cost

50,000

$0.02

$1000

This change will go into effect the next day.

Total calculated cost: $40,830 0 (0% of view goal) 117,895 (53.4% of total view goal) 271,500 (123.1% of total view goal) $0.22 $16,290/$39,137(58.4%) 57% 100% Rate $0.06 $0.15 $0.02 $0.02 $0.04 $0.03 $0.05 $0.07 $0.06

Cost $16,290 $9,750 $1600 $1000 $0 $45 $2250 $1400 $600

Pacing 100% 100% 100% 100% 100% 100% 100% 100% 100%

Update

Revenue $16,290 $6198.91 $1600 $1000 $0 $45 $2250 $1400 $600

Margin % 100% 23.9% 29.5% 18.4%

Add line item change to Change Log.

0.6% 16.6% 7.4% 3.7%

Add Placement 19% Click To Play

Actual Normal CPV Views Normal CPV View Goal Normal CPV Planned View Goal CPM Views CPM View Goal Rate Cost/Budget(Margin) Category Margin Pacing

0 (0% of view goal) 42,694 (19.4% of total view goal) 63,500 (28.8% of total view goal) 0 1,000,000 $0.84 $24,540/$35,863(31.5%) 68% 100%

Placement Placement01

View Goal

Rate

Cost

50,000

$0.02

$1000

Add

▶ Detailed View

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Modified: Fri Aug 17 2012 | Page 9/13

Financial Closeout 20120817 View allocation: Change log View Allocation Campaign Jookie Cola

Column-based layout.

Flight Dates (8 days) 3/16/2012 - 3/23/2012

Overview

Views 0/300,000

Change Log

Line Item Click To Play Click To Play Incentivized

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Publisher Popscreen Thought Catalog Grooveshark

View 5000(+500) 1000(+500) 1000

Rate

Flight Date

$0.06

Full

Change Made 5:33PM PST 3/14/201 5:33PM PST 3/14/201 5:33PM PST 3/14/201

Modified: Fri Aug 17 2012 | Page 10/13

Financial Closeout 20120817 Publisher Orders

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Modified: Fri Aug 17 2012 | Page 11/13

Financial Closeout 20120817 Individual Publisher

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Modified: Fri Aug 17 2012 | Page 12/13

Financial Closeout 20120817 Advertiser Invoice

Invoice DATE

INVOICE #

04/19/2010

371

TERMS

DUE DATE

Net 45

06/03/2010

BILL TO Zenith Media Services, Inc. ATTN: Frank Maguire 70 Madison Avenue, 14th Floor NYC, NY 10016

P.O. Number

Sales Rep

IO-0000006T3P1

DAG

DATE ACCOUNT SUMMARY 12/30/2009 Balance Forward 03/16/2010 Payment received New charges (see details below) TOTAL AMOUNT DUE Service Video Distribution

Quantity

AMOUNT $50,000.00 -50,000.00 20,000.00 $20,000.00

Activity 1 • 200,000 video views for Butterfinger 2010 - Early April. Campaign run 04/01/10 04/15/10 • Campaign Name: BF Online 2Q-4Q10 • Month of Service: April 2010 • CPE: NES-BF-100 • IO#: IO-0000006T3P1 • Site Code: Sharethrough (09000286)

Rate Amount 20,000.00 -9,999,999,920,000.00 -9,999,999,999,999.00 -9,999,999,999,999.00 -9,999,999,999,999.00 -9,999,999,999,999.00 -9,999,999,999,999.00 -9,999,999,999,999.00 -9,999,999,999,999.00

TOTAL OF NEW CHARGES TOTAL AMOUNT DUE

$20,000.00

$20,000.00

650 Mission St, Flr 1, San Francisco, California, USA 94105 - finance@sharethrough.com

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Modified: Fri Aug 17 2012 | Page 13/13