AdoTube Format Index - Q1 2011

Q1 2011

Format Index

When given a choice, almost half of consumers choose to watch the entirety of a pre-roll advertisement

The Polite Pre-Roll® has an 18% lower video abandonment rate than the pre-roll

Nearly 5% of viewers are re-engaging in-stream ads after initially dismissing them

CPG continues aggressive investment in online video as a way to extend TV buys

© 2011 AdoTube, Inc. – All Rights Reserved

Q1 2011 Key Takeaways Polite Pre-Roll® Proves Itself and CPG Continues to Invest

Polite Pre-Roll® jumps to 30% of ads served. Polite Pre-Roll® increased by 25% over

Q4 2010 to 30%. Polite Pre-Rolls® and Pre-Rolls account for 64% of ads served

Overall CTR continues to grow due to high impact in-stream formats and

features, such as: Polite Pre-Roll®, In-Stream Takeovers, Expansions, Gaming, Social

Media, etc.

Over 5% of viewers are re-engaging in-stream Overlay Ads after initially closing

them.

When given a choice, nearly half of all viewers chose to watch the entirety of a

Pre-Roll. The Polite Pre-Roll® view-through rate (VTR) rose 7 percentage points, in Q1

2011 to nearly 45% and is comparable to the Standard Pre-Roll’s view-through rate.

The Polite Pre-Roll® had an 18% lower video abandonment rate than the pre-roll.

CPG continues aggressive investment in online video as a way to extend TV

buys, accounting for 60% of ads served. Entertainment continues to invest

cautiously, and retail pulls back slightly after post-holiday push.

2 © 2011 AdoTube, Inc. – All Rights Reserved

Q1 2010 Q1 2011 Q4 2010

Polite Pre-Roll® Increases to 30% of Total Ads Together Polite Pre-Rolls® and Pre-Rolls account for 64% of ads

Advertisers continue to embrace Polite Pre-Rolls® due to:

Strong Performance: CTR, Engagement rates, Views, Brand metrics and other KPIs

Quality of View-Through: Providing users with an option to dismiss a message

qualifies the completion rate as a higher quality view-through than a forced message

.

© 2011 AdoTube, Inc. – All Rights Reserved 3

CTR Continues Path of Steady Growth

Growth is attributed to the adoption of new high-impact formats and features,

including Polite Pre-Roll®, In-Stream Takeovers, Expansions, Gaming, Social

Media, etc.

4

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Average CTR


1 in 5 Viewers Actively Engaging with Video Ads

While interactive formats continue to grow in prominence, engagement rates have

tended to stay steady at a phenomenal 22% on average. 1 in 5 viewers are actively

engaging.

5

0%

5%

10%

15%

20%

25%

30%

2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Average Engagement Rate


CTR - Interactive vs. Branded In-Stream Ads Interactive Overlay CTR Shoots Up in Q1

6

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

CTR - Branded vs. Interactive

Branded Interactive


Viewers Choose to Re-Engage

7

Ad Format CTR/Engagement

Rate

Close

Rate Re-Engaged**

Viewed ad in full or

Navigated away*

Branded Overlay 0.53% 50.54% 5.44% 48.93%

Interactive Overlay 1.86% 49.32% 5.35% 48.82%

All rates are out of the total ad viewership except **

*Estimate based on statistics from other metrics

**Percentage of the close rate not the total viewership

Option to re-engage Ad after “Closing”

We have noticed that nearly 5% of viewers re-engage in-stream ads after

they finish watching their content. Demonstrating that consumers will respond

to ads that respect their video experience.


Re-engage: provides users the opportunity to view the ad after initially closing it

Polite Pre-Roll® VTR Jumps to 44% 45% of viewers chose to watch entire Polite Pre-Roll® Ads

8

In another sign of the consumer’s growing acceptance of Polite Pre-Roll® and Pre-Roll

advertisements, VTR has continued to rise, jumping to 44% with a retention rate of 76%.

Nearly 45% of viewers chose to watch 100% of the Polite Pre-Roll® advertisement.


POLITE PRE-ROLL®

Quarter CTR VTR (25%) VTR (100%) Ad Retention Rate

Q1 2010 1.5% 49% 37% 77%

Q2 2010 2.1% 48% 34% 72%

Q3 2010 4.5% 49% 36% 73%

Q4 2010 2.9% 54% 38% 70%

Q1 2011 2.7% 58% 44% 76%

STANDARD PRE-ROLL

Quarter VTR (25%) VTR (100%) Ad Retention Rate

Q1 2010 2.8% 58% 41% 72%

Q2 2010 2.9% 58% 43% 73%

Q3 2010 2.7% 56% 40% 71%

Q4 2010 2.2% 60% 46% 77%

Q1 2011 2.3% 66% 51% 77%

Polite Pre-Roll® vs. Pre-Roll

9

Option to re-engage Ad after “Closing”

Polite Pre-Roll® had an 18% lower video abandonment rate than the Pre-Roll

In A/B Testing, the Polite Pre-Roll® decreased abandonment rates by 36%

Only 14% dismissed the Polite Pre-Roll® and nearly 8% then re-engaged

Re-engage: provides users the opportunity to view the ad after initially closing it


Ad Format CTR/Engagement Rate Close Rate Re-Engaged** View Through (100%) Navigated away*

PPR 2.69% 14.27% 7.57% 44.37% 38.67%

Pre-Roll 2.27% n/a n/a 50.51% 47.22% All rates are out of the total ad viewership except **

*Estimate based on statistics from other metrics

**Percentage of those who closed and then re-engaged with the ad

Campaigns by Vertical CPG Doubles Down on Online Video, Entertainment Cautiously

Invests More

CPG continued its effort to extend their TV buys by aggressively investing in the online

video space. Entertainment has cautiously increased its investment compared to last

year’s Q1.

10

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Finance/Insurance

B2B

Travel

Food Services

Auto

Retail

Web Services & Products

Entertainment

CPG

Q1'2011 Q4'2010 Q1'2010


About AdoTube In-Stream Ad Format Index

AdoTube serves ads on thousands of publishers sites, serving 70MM to 100MM in-video ad impressions per week.

This format index provides an overview of the effectiveness of our many different in-stream video ad formats over 2009, 2010 and Q1 2011.

Process:

We collected and analyzed data from a sample of over 4.25 Billion impressions deemed to be statistically relevant, taking advertising verticals, video content and targeting technique into account. This was then split into four distinct categories:

• Branded Overlay

• Interactive Overlay

• Standard Pre-Roll

• Polite Pre-Roll®

Additionally, we broke these results out over 17 verticals to analyze performance on an industry by industry basis.

The following data points are based on results derived from the AdoTube Network only and do not represent the in-stream ad space as whole.


Glossary

In-stream video ad: A video ad that is played or viewed from a video player

Branded Overlay: An in-video advertisement that runs on top of the video content (bottom 1/3 of

the screen) while the video is playing. Clicks-through to a web-site, pausing the video

Interactive Overlay: Similar to a Branded Overlay with multiple interactive elements such as

social networking/sharing, store locator, a game, a video, etc.

Standard Pre-Roll: An in-stream video ad that plays before video playback

Polite Pre-Roll®: A dismissible and retractable in-stream video ad. When dismissed during video

an overlay ad reminds the viewer to watch the ad

Click-Through Rate(CTR): The percentage of viewers who clicked through an ad to the target link

View-Through Rate: The percentage of viewers who watched through a part or all of a video ad

Engagement Rates: The percentage of people who interact with an ad that has interactive

capabilities, such as, playing a game, initiating an in-ad video, social engagement (i.e. Facebook),

store locator, or data entry

Close Rate: The percentage of people who close the Ad-Unit

Re-Engagement Rate: The percentage of people who closed an Ad-Unit only to later, Re-Engage

with the unit.

Navigated Away/Abandonment Rate: This is the approximate number of viewers who did not

engage with the ad nor view it till its completion.


Business

AdoTube Format Index - Q1 2011