The State of Online Video and its impact on The State of Online Video and its impact on Your Consumers in 2010 and beyondYour Consumers in 2010 and beyond

Glen CarusoDirector of Advertising SalesTremor Media404 788 2008gcaruso@tremormedia.com

April 18, 2023

A Presentation for the Triangle Interactive Marketing Association

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Who is Glen Caruso?Who is Glen Caruso?

- J. Walter Thompson/NY-Turner Broadcasting – TBS, TNT, SportSouth

- The Weather Channel and The Travel Channel- Weather.com

- Yahoo!- Disney Internet Group

- AOL / Time Warner- MSN/Microsoft

- TACODA behavioral Network- Tremor Media online video and rich media network

- Exasperating husband- Father of 4 girls

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Who is Tremor Media?Who is Tremor Media?

Tremor Media Achieves Top Spot in Premium Video

Views according to comScore

New York, NY -- May 13, 2009 – Tremor Media, the leading online video

advertising network and provider of the Acudeo video monetization platform,

today announced it has reached the highest ranking in terms of premium

video views, as well as the number two spot in total video viewers according

to comScore’s March Video Metrix Ad Focus report. With 137M unique

Internet users and 57MM unique video viewers in its network, Tremor Media

is second only to YouTube in reaching video audiences online and is ranked

first in delivering scale against premium, non-UGC content.

“Video is one the few digital segments that continues to accelerate in growth, and Tremor Media is one of the leaders in the space in terms of offering enough scale within the premium content

that brand advertisers prefer. As video advertising catches up to online video viewers, Tremor is primed for success due to their continuous increase in reach among premium content

providers.”

-- Deidra Bodkin, VP, Group Media Director and US Ideas Director at ZenithOptimedia.

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The Shift from TV to Online Video Spending Has BegunThe Shift from TV to Online Video Spending Has Begun

CMOs Continue to Consider Reining in TV Spending – 1/26/09

“Realtor Century 21… planning to funnel all the cash that it used to spend on TV advertising onto the web…Red Robin Gourmet Burgers is also completely cutting out TV in its 2009 media mix.”

TV Marketers Pull Back Upfront Buys: What Happens Next – 2/8/09

“At Walt Disney’s ABC, upfront orders are “coming in slightly lower than what you otherwise might have expected… seeing a little more holdback in consumer goods and, to a lesser extent, pharmaceuticals, with some strength in some other categories…Some major marketers, led by P&G, have cut their upfront buys by the contractual maximum of 50%, network executives said.”

OTC Drugs Head Online – 3/6/09

“… as TV becomes less and less effective in terms of getting people to go to the store and buy a product, targeted direct marketing is going to be increasing its share within our clients’ budgets.” Examples highlighted: Tylenol, Claritin and Alli

Reckitt-Benckiser to Shift $20 Million to Web From TV – 3/30/09“…company plans to shift an estimated $20 million in TV ad dollars to the web for more than 15 of its brands, including Lysol, Air Wick, Mucinex, Finish and Clearasil.”

DVR Use Makes Broadband Ads Better for Broadcasters – 4/13/09“…nearly 60% of the targeted viewers are watching via DVR, and that of this group maybe only 10% watch any ads at all. … only half or so of the intended audience actually see the ads … an advertiser is effectively paying 2x the CPM it thought it was. Broadband video ads, which can’t be skipped, have better targeting and more interactivity, start looking better and better.”

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Marketers want video for greater branding power

Consumers find video more compelling than display ads

Publishers want videos for greater revenue potential

Online Video Advertising Spending is Projected to Online Video Advertising Spending is Projected to Reach $5.8 Billion by 2013Reach $5.8 Billion by 2013

Premium ContentPremium Content Increased AudienceIncreased Audience

Greater Ad Potential

Greater Ad Potential

Innovative Ad Formats

Innovative Ad Formats

Increased RevenuesIncreased Revenues Premium ContentPremium Content

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Online Video Reaching a Critical MassOnline Video Reaching a Critical Mass

Source: Frank M. Magid Study: Magid Media Futures™ 2009: Opportunities In Online Video

77% of the internet audience is watching online video and 43% of Internet Users watch online video weekly

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Projected Growth of Online Video ViewershipProjected Growth of Online Video Viewership

Source: eMarketer, November 2008

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Online Video provides Scale against key demographicsOnline Video provides Scale against key demographics

Men 18-49Men 18-49

Sources: comScore Video Metrix June 09.**Graphs not to scale**

Men 18-34Men 18-34

CBS Sports

MSNBC Yahoo! Sports

ESPN BBE Tremor Media

218

2,4702,614

2,698

13,079

14,244

Moms 18-49Moms 18-49Women 18-34Women 18-34

Unique Visitors (000) Unique Visitors (i000)

Unique Visitors (000) Unique Visitors (i000)

CBS Sports

ESPN Yahoo! Sports

MSNBC BBE Tremor Media

540

4,2694,614

5,590

22,235

23,993

WebMD iVillage AOL Yahoo! BBE Tremor Media

347625

4,259

8,424

10,379

12,076

WebMD iVillage AOL Yahoo! BBE Tremor Media

289575

3,389

7,316

9,475

10,897

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Video Platform Agnostic – What is TV Planning Anymore?Video Platform Agnostic – What is TV Planning Anymore?

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TV and Online Video ConvergingTV and Online Video Converging

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Television and Online Video RelationshipTelevision and Online Video Relationship

• Online video is a complement to a television buy offering additional reach

• An inverse relationship exists between TV viewing and online video viewing as the population groups get older

• Users aged 18-34 watch twice as much online video and about 71% as much television per month as users aged 35+

Source: Nielsen A2/M2 Three Screen Report Q4 2008

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The Power of Combining TV with Online Video The Power of Combining TV with Online Video

Sight, sound and motion

Reach and scale

Targeting: Contextual, day-part, geo

Purchase metric: CPM & GRPs

Measurement: Nielsen (comScore)

Verification: Logs/server data

Similarities to TV

Incremental reach

More highly targeted

Direct response enabled: click-through on video

Real time optimization of ad placement and creative

Measurement

Interactivity and Engagement

Enhancements vs. TV

Clearer connection to ROI

+

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Online Video is Expanding to Traditional TV SetsOnline Video is Expanding to Traditional TV Sets

Recent Headlines from CES and Hollywood:

• Netflix strikes a deal to stream movies on new Vizio and LGs by embedding its service directly into the hardware.

– This is in addition to web to TV streaming of movie and TV content from Netflix and Amazon already available thru Roku.

• MySpace expands to TV sets

– Launching a widget that will allow MySpacers to use the ordinary remote control to interact with friends while watching TV. Embedded into Toshiba and other TVs.

• Yahoo Back in the Video Game

– Yahoo also recently announced they’re getting back into the video game, launching new online video content in conjunction with TV widgets.

• Broadband to TV trend is between web-to- TV service Boxee and Hulu

• “In The Motherhood” online webisodes move to ABC TV primetime! Page 14

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Online Video Yields Higher Lifts in Brand MetricsOnline Video Yields Higher Lifts in Brand Metrics

Source: Dynamic Logic MarketNorms: data through Q408

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The Digital Video LandscapeThe Digital Video Landscape

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The Digital Video Landscape The Digital Video Landscape

Multi-ChannelsMulti-Channels

PortalsPortals

Video Ad Video Ad NetworksNetworks

Emerging Emerging DestinationsDestinations

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Premium Content Examples – Broadcast & Web-OnlyPremium Content Examples – Broadcast & Web-Only

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Premium Publishers with Online Video Content…Premium Publishers with Online Video Content…

Sites monitored bySites monitored by

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Innovative Online Video Ad Formats Happening NOW!Innovative Online Video Ad Formats Happening NOW!

Branded Entertainment

* Currently in development

vChoice Campaign Showcase

Brand Awareness

Video In Banner

Traffic Driving

vChoiceLongform Showcase

Brand Engagement

vChoice Storytelling

Rich Media Banner

Video In BannerPre-Roll Click-Through Driving Pre-Roll

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Branded Entertainment – Sample ProgramsBranded Entertainment – Sample Programs

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Socially Awkward Guy

Keep It Simple

* Tremor Media Exclusive

*

*

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Greater engagement Greater engagement / time spent/ time spent

Greater engagement Greater engagement / time spent/ time spent

Greater creative Greater creative flexibility & non-flexibility & non-

linear storytellinglinear storytelling

Greater creative Greater creative flexibility & non-flexibility & non-

linear storytellinglinear storytelling

Multiple, non-linear Multiple, non-linear videos in well-lit videos in well-lit

player environmentplayer environment

Multiple, non-linear Multiple, non-linear videos in well-lit videos in well-lit

player environmentplayer environment

…and offers advertisers a range of unique capabilities and benefits

BRAND NEW: BRAND NEW: vChoice -- vChoice -- The User-Driven In-Stream AdThe User-Driven In-Stream Ad

Supports longer Supports longer form video where form video where

previously not previously not possiblepossible

Supports longer Supports longer form video where form video where

previously not previously not possiblepossible

Enhanced tracking Enhanced tracking and reportingand reporting

Enhanced tracking Enhanced tracking and reportingand reporting

Choice and control Choice and control for a better, more for a better, more invitational user invitational user

experienceexperience

Choice and control Choice and control for a better, more for a better, more invitational user invitational user

experienceexperience

Teaser Video Menu Button

Skip Button

Video Selects Skip Button

“We were blown away by the lift in engagement metrics and click through these new formats delivered.”

-Dave Martin,VP of Digital Media, Ignited

vChoice puts the viewer in control…

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The vChoice Family The vChoice Family Solutions-Focused Ad FormatsSolutions-Focused Ad Formats

Campaign ShowcaseIdeal for showcasing

multiple ads for the same campaign

Longform ShowcaseIdeal for branded

entertainment or long form videos that live on the advertiser’s web site.

Product ShowcaseIdeal for showcasing

product demos, tutorials, or multiple products ads in a

single unit

vChoice Showcase UnitsvChoice Showcase Units

Linear, episodic and serialized

User decides how many episodes they view

Non-linear, with alternate story paths

User decides how the story unfolds

vChoice Storytelling UnitsvChoice Storytelling Units

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Performance: Industry-Leading Metrics & ResultsPerformance: Industry-Leading Metrics & Results

5.31%5.31% 87%87%

3.85%3.85% 84%84%

1.96%1.96% 88%88%

1.08%1.08% 72%72%

vChoice results include significant upside in engagement / time spent. vChoice results include significant upside in engagement / time spent.

Industry Click-Through Rate Completion Rate

Entertainment

CPG

Gaming

Telecommunications

Video Select Rate

2.07%2.07%

1.48%1.48%

0.88%0.88%

0.20%0.20%

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Research, Insights, and Report Types available with Research, Insights, and Report Types available with Online Video partnershipsOnline Video partnerships

Advanced Campaign Performance Metrics

Post Buy Demographics

Branding Impact

Behavioral Impact

Delivery Metrics & Basic Performance

Metrics

• Client log-in provided for real-time video campaign data• Multiple research and reporting options based on campaign parameters

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New Research Studies being Developed for Online VideoNew Research Studies being Developed for Online Video

GRPs & ROI for Online Video vs. TV

Online Video Branding Effectiveness

Online Video in the Marketing Mix

• Real Time Demographic Targeting/TV & Online CPM Comparison

• Nielsen NetEffects- measures impact of an online campaign with Tremor Media on offline sales for CPG clients – clearer connection to ROI

• Traditional Brand Awareness (DL)

• Deeper Dive (Comscore)

• Proprietary (HomeScan)

• Effort Driven by the IAB

• Supported by Members & Marketers

• Similar to original MIXX studies for online advertising

Thank You

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Current Trends in Online VideoCurrent Trends in Online Video

Streaming video growth over the past yearStreaming video growth over the past year

Monthly unique video viewers are up 11.5% from February 2008

Number of videos viewed are up 63%

Users watch 110 online videos per month at almost 7 hours

Online Video ViewershipOnline Video Viewership

Males 18-34 watch 125 videos for a total of almost 8 hours each month

Females 35-54 have the highest growth rate over last year watching 48% more videos for more than double the amount of time

Content being watchedContent being watched

News (53% of adult users)

Full length television shows, movies, sporting events (44%)

Comedy videos (43%)

Online video ads impact brandingOnline video ads impact branding

55% lift in online awareness compared to standard units29% lift in message association compared to standard unitsModest lifts in brand awareness, brand favorability, and purchase intent

Sources: comScore Video Metrix May 09; MarketNorms Data through Q308; eMarketer study: Video Content: Harnessing a Mass Audience, Nov 08