VIDEO RULES , EVERYWHERE!Video is no longer a “nice to have”. Today, any large global orlocal brand produces hundreds of videos every year as part ofit’s communications approach:

Video Advertising for OnLine, Mobile and Social channels will grow up to $20BN in 2017 (global media spending) and recent data confirm the need for local adaptation, personalized messages, real time communication.

A constant stream of fresh and original Video is a must for growing and engaging Social audiences on YouTube, Facebook, Twitter, Vine, Instagram, G+, etc.

Video is more and more used for product tutorial, corporate presentation, CSR activities, customer reviews, private convention or public event, top management comms, in-store information, consumer insight to name a few.

“Video Contests” are frequently included in marketing campaigns as a tool to maximise engagement and visibility.

ONLINE VIDEO ADVERTISINGWORLDWIDE MARKET 2012 – 2016 (EURO BN)

Global On Line Video Advertising will grow from E 5B in 2012 to over E15B in 2016 (32% CAGR) driven by the growth of mobile-social advertising and the rise of Asia and Latam.

Source: Userfarm analysis based on data from Forrester, Emarketer, J’son & Partners, Magna Global, Impactu.

2012 2016 € -

€ 2.00

€ 4.00

€ 6.00

€ 8.00

€ 10.00

€ 12.00

€ 14.00

€ 16.00

€ 18.00

OTHEREAST EUASIALATAMWEST EUNORTH AM

SOCIAL VIDEO BEST PRACTICES#1) MAKE LOTS OF CONTENT

DIGITAL VIDEO PRODUCTIONMARKET ESTIMATE AND FORECAST (EURO BN)

Assumptions1. Budget for the creation of video to be used for OnLine Video Advertising is considered 10% of the total in 2012 and 15% in 2017 due to the tendency to

have always new, fresh, original, real time, personalized content for an effective campaign. 2. Budget for the creation of video to be published in brands’ social channel, without paid media, is considered to be growing from E0,15BN in 2012 to

E1,0BN in 2017 (50% CAGR)3. Budget for the creation of video to be published on brands’ site (product review, corporate video, etc.) is considered to begrowing from E0,2BN in 2012

to E0,9BN in 2017 (30% CAGR)4. Budget spent from publisher and broadcaster to create original video for online distribution is expected to grow from E0,3BN in 2012 to E1,5BN in 2017

(50% CAGR)

2012 2013 2014 2015 2016 20170.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

1.17

1.82

2.66

3.83

4.85

6.57

Traditional content production model – originally designed to produce a single great piece of creative work every six months at a six digits’ cost – is struggling to serve the super fast growing demand of online video advertising content

DIGITAL VIDEO PRODUCTIONTHE VIDEO CROWDSOURCING OPPORTUNITY

VideoCrowdsourcing is based on the activation of a video production network composed of freelance creative resources and small independent production

companies who compete for projects sponsored/opened by advertisers or agencies.

Scale Cost Creativity Visibility

Video crowdsourcing is designed to deliver dozens of pieces of brand-inspired, story-rich, genuine content (eg My Vodafone 2014 video contest generated 100+ good/high quality entries)

This approach make the economics fly as most costs involved into crowdsourcing are fixed costs (eg in 2013 Coca Cola estimated that video crowdsourcing is 92% more efficient than the traditional way)

Through a video cowdsourcing campaign customers can get a wide array of creative insights and executions which can inspire new positioning or campaigns (eg Hiunday 2014 campaign in Asia is based on a VC entry)

An open video contest can generate hundred of thousands of organic views turning it into a powerful tool to boost online visibility and engagement (eg Barilla 2013 video contest generated 1,2mln views)

VIDEO CROWDSOURCING MAIN BENEFITS

VIDEO CROWDSOURCINGKEY ADVANTAGES FOR BRANDS

“While Video Crowdsourcing can be used to generate almost any video - from classic high quality tv advertising to social or viral video for the web, from tv shows to documentaries - it is true that clients choose to adopt this model for the following key reasons: cost effectiveness, wide creativity, positioning, visibility.” (Forrester – 2012)

In a recent regional campaign, Coca-Cola saw local markets adopting 100% of the crowdsourced creative content versus 47% on average. And some of the content performed in the top 10% of all historical creative pieces.

Content produced by consumers often resonates better with other consumers, especially on earned media KPIs. In a Facebook campaign to support the launch of the Nokia N9, crowdsourced videos outperformed traditionally produced videos: +108% on video plays, +50% on social click-through rates, and double the number of interactions.

Source: Eyeka (2013)

Crowdsourcing project by type - 2013

USERFARMUserfarm is the largest video crowdsourcing player in Europe, its mission is to provide brands, publishers and broadcasters with the opportunity of activating its global filmmakers' network and producing video for advertising as well as for editorial purpose, in the most effective and scalable way

OUR FILMMAKERS

QualityVideo Amateur: little experience or newVideomaker: active usersFilmmaker: chosen for quality and skillsPro Teams: professional production teamsSkillsAdvertising: TV ads, virals and promo videoFiction: short movies, web series, Animation: animation, illustration and CGIVideo Art: music videos and digital artNarrative: documentaries, news reports

We have a deep understanding of our global network of 55,000+ film-makers: their skills, devices, locations and availabilities. Our production managers classify each filmmaker based on his profiles and past contributions.

OUR SERVICESWe offer 3 distinct filmakers’ activation models for all your needs.

Call For Videos Pro Pitch Direct AssignmentCreativity / Visibility Quality / Creativity Quality / Price

How: our entire network participates and submits dozens of different videos from which you can choose the best

How: a selected cluster of filmmakers pitches on ideas, the winner produces the video under UF supervision

How: we provide a selection of filmmakers that best suit the brief for you to choose from

Conditions: engaging and open brief, attractive rewards

Conditions: clear brief in search for different executions

Conditions: very narrow and detailed brief

Formats: viral video, on line video ads, mosaic ads, pilots.

Formats: TV video ad, Web Series, Crowdumentary,

Formats: interview, animations, explainer films, product tutorial, customer reviews

CLIENT PORTFOLIOKEY CLIENTS (DATE OF ACQUISITION)

2012 2013 2014 *

In the past three years Userfarm managed to work with most of the European top brands and with some of the most important broadcasters and publishers.

* 2014 Pipeline