2018 Sizmek Inc. All rights reserved. I. Background: Sizmek is a global independent advertsing technology company, withheadquarters in New York, USA. In China, we ofer digital campaignmanagement, ad serving, and verifcaton solutons. We also providedynamic creatve optmizaton, viewability measurement and brand safetysolutons. Sizmek is accredited by the Media Ratngs Council (MRC) formultple ad formats, including display, rich-media, and video, as well ascross-platorm viewability solutons. All data included in this report is incompliance with the MRC accreditaton standards. We have adopted theIAB standard to determine whether a measured impression is consideredviewable, which states that 50% of the ad must appear on a user’s screenfor one second or more. Sizmek has been monitoring data on digital ad viewability since 2015, andthis is the fourth consecutve year that we have released the China DigitalAd Viewability Benchmark Report. From the analysis and fndings in thisreport, we reveal interestng trends in viewability rates throughout theyear. These insights can be used as guidelines for future campaign planning,partcularly how viewability rates difer between vertcals and acrossdiferent buying methods. This year’s annual report placed considerableemphasis on vCPM (viewable cost-per-thousand impressions), which is veryhelpful for media planners and buyers evaluatng advertsing efectveness. 12018 Sizmek Inc. All rights reserved.II. Methodology: The report was compiled using 2017 data from the Sizmek Advertsing Suite, specifcally, datacollected from all advertsing actvites that took place on the platorm in China between January 1, 2017 to December 31, 2017. There were over 12 billion recordable impressions,representng an increase of more than 20% when compared to the previous year. The mediatypes monitored were portals and mainstream vertcal media. Glossary of terms used in this report: Serving volume: Number of advertsing impressions servedRecordable Impressions: The percentage of impressions successfully recorded for viewabilityevaluaton purposes, out of served impressions. (Due to the complexity of certain pageenvironments where an ad is located, some iFrames for example, not all impressions can bemeasured for viewability rate.) Recordable rate (%): Recordable Impressions Rate = Recordable Impressions /Served Impressions. (The detected viewability rate is only meaningful when a high recordable ratewas ensured. The recordable rate in this report refects the capacity of our platorm’s technology.) Viewable Impressions: The number of viewable impressions measured based on the IABviewability thresholds. Viewability rate (%): Viewable Impressions/Recordable Impressions; Viewable cost-per-thousand impressions (vCPM):vCPM = Total cost/((Recordable Impression*Viewability rate)/1000); (MRC accreditaton) 22018 Sizmek Inc. All rights reserved. “ CPM 80 Yuan vCPM 178 Yuan Recordable impressions: 900 Recordable rate: 90% Viewable impressions: 450 Viewability rate: 50% Serving VolumeRecordable RateViewable Rate In this 2018 annual report, we have analysed recordable rate and viewability rate performanceon diferent platorms and via diferent buying methods, for example: Diferences between adson mobile devices versus on PCs, and between direct and programmatc buying. Example: Viewability rate vs. vCPM TotalimpressionsCPM (Yuan) Recordablerate Viewabilityrate Viewableimpressionvolume vCPM (Yuan) 1,000 80 90%50%450 178 (*Viewability rate monitoring result already excludes volume that comes from ad fraud) 0% 20% 40% 60% 80% 100% 。。。。。。