SOLOCAL_Registration Document_2017

SOLOCAL, LOCAL DIGITAL PARTNER TRUSTED BY BUSINESSES 1.3 Overview of the sector

Key partnerships Apple

Signed in 2015 l Partnerships based on the supply of local content on Apple Plans, Siri, Spotlight and Safari l Source of indirect and direct traffic; also increasing downloads of the Pages Jaunes application l

Facebook

Signed in 2016 l A partnership focused on the resale of advertizing campaigns on Facebook l Use of an API to manage pages and automatically update content l

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arrival of Orange, the alliance now reaches more than 50% of French internet users daily. The aim of these media companies is

ALLIANCE GRAVITY

Launched in June 2017 by Lagardère Active, Les Échos, SFR and to become the third biggest player in the French digital advertizing SoLocal, Gravity is now an alliance of some 25 French media market. The factors that set them apart include the power of the companies representing a large, qualified and competitive media, the granularity of the media (with specialist and generalist audience of major platforms. This alliance enables its members to players), the security of the brand (in particular trust and bundle and market their media and data together exclusively reputation) and the diversity of data. through a proprietary and innovative platform. With the recent

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OVERVIEW OF THE SECTOR 1.3

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SoLocal is one of the leading players in local and digital advertizing in France. The Group provides digital content, advertizing solutions and transactional services that help connect local businesses with consumers. It also connects advertizers with ad networks and other online media.

The Group believes that the diversity and flexibility of its digital offerings enable it to leverage a large number of favourable market trends that are key drivers of demand for its target customers.

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LEADING PLAYERS IN THE INTERNET ADVERTIZING MARKET 1.3.1

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advertizers: the end-advertizer is the ecosystem’s payer entity, l and the fees paid by the advertizer to run the campaign are split between the ad network and the ad publisher. The advertizer who is promoting a product or service is often represented by a third party agency that works with ad networks to select advertisement inventory and set parameters to match the needs of an advertizing campaign. Advertizers pay for online and web advertizing in a variety of forms, the most common being cost-per-click (CPC) and cost-per-thousand (CPM) , whereby advertizers pay a set price for each ad, click or impression, and cost per action (CPA) , whereby advertizers only pay if the user interacts with the ad, for instance by clicking on it and being directed to the advertizer’s website. The cost of reaching an audience via online media measured in CPM or CPA is out of line with classic media such as television and print. Over time, advertizers are becoming more familiar with the value of online ads. CPM and CPA rates are expected to increase over time as consumers increasingly turn to the Internet to consume media.

There are three main types of players in the Internet advertizing market: ad publishers, namely any website or online media that attracts l Internet users. These include online portals (such as Bing (Microsoft) and Facebook), newspaper sites (such as Le Figaro or Le Monde) and blogs (such as La Blogotheque or le Blog Auto). These digital publishers reserve the right to display advertisements on the pages they show their visitors. Collectively, these pages are known as “inventory”, and the displaying of an ad to a user on one of them is known as an “impression”. Video ads work in much the same way, except that advertisements associated with the video are shown either inside the video frame or in its surrounding area; ad networks, i.e. companies or groups of companies that l together control advertizing inventory across multiple digital publishers, and display ads in this inventory, as part of a revenue sharing agreement or at fixed prices with ad publishers. Ad networks exist because they can aggregate advertizing inventory across hundreds or even thousands of online destinations and are thereby able to offer a breadth and depth of inventory to suit different advertizers’ needs;

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2017 Registration Document SOLOCAL