广告市场现状要点：与广告代理机构负责人的电话会议

TMTInternetCall wl Ad Agency Headmedia platforms, to current trends within the industry, as well as his industryas strength in Pharma and Financial Services offset softness in Apparel/Retail.business.State of the Ad MarketDeutsche Bank Securities Inc.factorinmakingtheirinvestmentdecision. Benjamin BlackResearch Analyst+1-212-250-9218Lee HorowitzResearch Analyst+1-212-250-4403Jeff SeinerResearchAssociate+1-212-250-8153Matthew SpindResearch Associate+1-212-250-9481 11 July 2025InternetUS Internetis expected to grow 17% y/y in the 3Q25 as the return of the NFL and college sportswould benefit linear in late Aug/Sept.Company-Specific CommentaryMeta: Advertising spending on Meta showed continued strength,growing 6.1% yly in the 2Q, which was an acceleration from 1Q at 5.4%. Inaddition, 3Q expectations are for a continued acceleration to 6.4% ylycompared to Street expectations for a 1.5 point step-down in yly US Adrevenue growth in 3Q. Growth was largely balanced in the 2Q withFacebook (FB) growing 5.9% y/y and Instagram (IG) up 6.3% yly. Similarlyfor3Q,growthisexpectedat6.3%/6.5%forFB/iG,respectively.throughalarge portion of Mr. McLean's book runs through Advantage+, and thedivergence in spend between IG and core Facebook is increasingly harderto split.Additionally.Mr.McLeannotedthatthecompany continuestobenefit from growth at Reels, up 28% yly, and growth without it is trendingat3.5%-4% y/y. Importantly, Mr. McLean highlighted thatenhancements via Advantage+ are increasingly manifesting themselvesin the form of improved return on ad spend, which we expect to be adurable source of growth for Meta going forward, as Advantage+ becomesthe default campaign-setup across more advertisers this year.Google: Search ad spend accelerated ~1 point to 3.9% yly in the 2Q, from3% yly in the 1Q, as ROl improved by 1% driven by improvements in PMAXand optimization of creative. 3Q spend is expected to continue toaccelerate to 4.4% yly, though off a 1 point easier comp, which is aboveStreet expectations for a ~25bps deceleration in 3Q Search growth. Mr.McLean noted that Al Overviews are having a clear impact on clickvolumes, however conversion rates have held up, and in June click-throughrates were up 1.2% and ROAS was up 2% driven in part by by Gemini'sintegration into PMAX, though he notes these performance gains may nothold over the long-term. That said, Search ROl maintains such a significantit would not impact his clients ad spend] Meanwhile, YouTube spendinggrew 12% y/y in 2Q, in-line with 1Q, though down from 14.5% y/y in the4Q24, despite a ramp in ad lead as the platform has been impacted bysoftness in brand ad spens Looking ahead to the 3Q, he expects a 1 pointdeceleration in gro11% yly at YouTube.Amazon: Ad spendacross Mr. McLean's book of business grew 16% ylyin the 2Q, up from 13.6% in 1Q as its DSP and Prime Video continue its rapidgrowth, offset by LSD to flat growth in its endemic ads business. Lookingforward to the 3Q25, spending is expected to accelerate 1.3 points to 17.3%y/y.Snap: Overall, Snap spending growth accelerated ~50bps to 4.3% yly inthe 2Q, from 3.8% in the 1Q, though Mr. McLean noted that Snap provideda 20% impression bonus mid-2Q to incentivize spend, which hespeculates was in response to a particularly weak April and may be dueto Sponsored Snaps not achieving the anticipated level of monetization.discontinued in the 3Q, and he anticipates that his clients' spend on theplatform will accelerate again in 3Q by ~60bps to 4.9% y/y, compared toStreet expectations for a ~1.5 point deceleration in NA Revenue growth forSnap.Reddit: Mr. McLean noted that ad spend on Reddit is taking share fromissues at X (which should continue, particularly in the wake of LindaYaccarino's departure), and is mainly limited by reach in the US, covering18% of US adults weekly compared to IG which reaches 80%. He did alsomentionthatRedditusershavebeennegativelyimpactedbyGoogle'sPage 2 Al 11July2025InternetUS Internetbatching of links in AlO Search results, without indicating whether or notthis has intensified as of last quarter. Turing to monetization, Streetestimates are baking in a deceleration in ad revenue growth in 2Q and 3Q.However, across Mr. McLean's book of business advertising spendinggrowth on Reddit accelerated ~4 points to 19.4% in the 2Q from 15.4% y/yin 1Q25, and is on track to grow 20.7% yly in the 3Q, with the strengthpartially driven by a movie ad campaign along with PG tie-ins for thefootball season. Mr. McLean noted that Reddit is gaining a larger share ofad budgets given the significant increase in the number of ad products andimprovements to its measurement capabilities which have resonated withadvertisers.Pinterest: Advertising spend grew to 6.9% yly in the 2Q, up from 6.3% ylyin 1Q25 with 3Q tracking to 7.2% yly which includes an expected boostdriven by back-to-school. Mr. McLean noted that April was weak given thesmaller platforms are the first to be cut in macro uncertainty. He alsoobserved that he is