John Nardone

is the case anymore.

The advent of the smartphone in 2007, the introduction of the iPhone and then the tablet has fundamentally changed the way we as consumers consume content and the advertising that's in it.

Because according to our analytics, only about 18% of digital ads are delivered to consumers in that lean back atmosphere.

You're in multi-screen behavior.

You're mobile outside of your home trying to get tasks accomplished.

And that means your attention in terms of what you're going to pay attention to and how your brain processes that information is vastly different than when you're in a lean back posture singularly focused on one stream of content.

So we have to be mindful of the form factor.

You're seeing the ad on the phone.

extremely relevant to what you're trying to accomplish.

We have location debt, yes.

So all of those things factor into whether we show you a branding ad, a specific product ad, a price off coupon ad, et cetera, in order to connect with you, have it be noticed, and have you want to act on that ad.

That's correct.

We're not buying the ad.

We're making the decision of how to communicate with that customer once the ad has been purchased.

It's a CPM model.

So based on the amount of complexity of the data that you're using for the targeting, it's an incremental CPM charge on your ad serving.

So we may have a targeting model that utilizes weather, DMP data, location data, and the store's

loyalty data, for example.

So four data elements, pick your number, and then based on a volume discount, Walmart's a really large company, they get good volume discounts, you might be paying 20 cents per thousand for the delivery of those dynamic creative ads.

That comes to us.