Digital Turbine (APPS) investor relations material

Key themes and industry outlook

• AI is transforming advertising, driving efficiency in operations, campaign setup, and creative processes, with measurable improvements in profitability and cost reduction across organizations.

• AI agents are enhancing, not replacing, marketing workflows by automating repetitive tasks, improving media planning, and enabling multi-agent orchestration for iterative, data-driven campaigns.

• Data quality, privacy, and first-party data access are increasingly critical, with clean rooms and privacy-compliant on-device solutions enabling secure data collaboration and targeting.

• The shift from deterministic to probabilistic measurement is accelerating, with AI and LLMs improving contextual targeting and attribution in privacy-constrained environments.

• Industry disruption is rapid, requiring agility and adaptability; companies with scale, data, and distribution are best positioned to thrive.

Secular trends and market shifts

• Declining open web and search traffic is redirecting ad spend toward in-app, CTV, and emerging AI-driven channels, creating new monetization opportunities.

• ChatGPT and other LLM platforms are expected to become significant advertising channels, initially operating as closed systems but likely opening to programmatic integration over time.

• Connected TV is a fast-growing, data-accessible channel, though increasingly commoditized; retail media networks are expanding beyond traditional retail into sectors like airlines and delivery services.

• Major events such as elections, the Olympics, and the World Cup provide temporary boosts in ad spend and CPMs, benefiting platforms with broad reach.

• Generative AI is enabling hyper-personalized creative at scale, supporting agencies and advertisers in delivering more relevant ads and improving conversion rates.

Risks, challenges, and forward-looking statements

• The pace of technological change is unprecedented, making adaptability and a culture of innovation essential for survival and growth.

• Privacy regulations and the complexity of identity management are increasing, requiring new approaches to targeting and measurement.

• Market fragmentation and investor uncertainty are high, with smaller companies at risk of being left behind due to lack of scale and resources.

• Executives do not expect AI agents to fully take over ad tech by 2027, nor do they foresee a collapse of the ad tech stack, but anticipate ongoing enhancement and orchestration.

• Walled gardens may gradually open to broader ad tech integration, but opinions differ on the pace and extent of this shift.