Q2 2010 Format Index - AdoTube
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1. The document analyzes data from AdoTube on the effectiveness of different in-video ad formats from 2009 to the third quarter of 2010. 2. It finds that interactive ad formats grew significantly over this period and led to a 59% increase in AdoTube's average click-through rate. 3. Specifically, testing showed that AdoTube's Polite Pre-Roll format performed better than standard pre-rolls, with viewers 133% more likely to click through ads and 36% lower video abandonment rates.
Q2 2010 Format Index - AdoTube
- 1. Q2 2010 Format Index © 2007-10 AdoTube, Inc. – All Rights Reserved
- 2. Q2 2010 AdoTube In-Video Ad Format Index AdoTube serves ads on over 5k+ publishers sites and serves over 50MM to 75MM 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, Q1 2010 and Q2 2010, with some preliminary Q3 estimates. Procedure: We collected and analyzed data from a sample of 1.2 Billion impressions deemed to be statistically relevant, taking advertising verticals, video content, and type of targeting into account. This was then split into four distinct categories: Branded Overlay Interactive Overlay Standard Pre-Roll Polite Pre-Roll® Additional testing of Polite Pre-Roll vs Standard Pre-Roll was conducted as blind A/B Testing over 5 Campaigns. The following numbers are based on results derived from AdoTube’s Network only and do not represent the in-video ad space as whole. © 2007-10 AdoTube, Inc. – All Rights Reserved 2
- 3. Key Takeaways The Power of Interactive Ads 1. Interactive ad format grew from 12% to 33% of ads served by AdoTube from ‘09 to ‘10 2. The adoption of interactive ad formats has resulted in a significant increase of 59% in AdoTube’s overall average CTR from ‘09 to ‘10 3. Interactive overlays are 83% more effective at driving click-throughs than are branded overlays 4. Testing showed that Polite Pre-Roll® viewers who are interested in an advertisement will be more likely watch through the entire ad and 133% more likely to click-through. Additionally, allowing viewers to hide the ad results in 36% lower abandonment rates for publishers 5. Overall, CTR growth for standard pre-rolls has remained stagnant, but the CTR growth for Polite Pre-Roll® has risen dramatically as it has been rolled out. It is expected to jump 133% from Q2 to Q3 2010, becoming 63% higher than the standard pre-roll 6. The Polite Pre-Roll® has shown a 7% higher retention rate, meaning that those who begin to watch a Polite Pre-Roll® ad are 7% more likely to watch through the whole ad. Additionally, those who choose to dismiss the ad are able to watch their video with overlay reminders, while those who leave a Standard Pre-Roll are abandoning the video stream as well © 2007-10 AdoTube, Inc. – All Rights Reserved 3
- 4. Diversification of Interactive Formats As we have continued to expand, we have been introducing interactive formats to help diversify in-video advertising opportunities. This has been good for both advertisers and publishers as demonstrated by significant growth over the past number of months. On average, Interactive Formats (Polite Pre-Roll® and Interactive Overlay) have grown steadily from 12% in 2009 to 33% of ads served so far in 2010. Q1 2010 Q2 2010 Q3 2010 Polite Pre- Polite Pre- Roll® Interactive Roll® Polite Pre- 11% Overlay Roll® 17% 12% 25% Interactive Branded Overlay 15% Pre-Roll Overlay 54% Interactive Pre-Roll 12% Pre-Roll 64% Overlay 65% 17% Branded Overlay 4% Branded Overlay 4% © 2007-10 AdoTube, Inc. – All Rights Reserved 4
- 5. Overall Growth in Interactive Formats leads to Higher CTR Diversification into more interactive ad formats from 2009 to 2010 has led to a 59.3% higher Overall CTR. Based on preliminary estimates, the Q3 CTR should go up 72% over Q2. Overall CTR 2.00% 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2009 Q1 2010 Q2 2010 Prelim. Q3 © 2007-10 AdoTube, Inc. – All Rights Reserved 5
- 6. CTR Interactive Overlay vs. Branded Overlay Specifically isolating interactive overlays vs. branded overlays, interactive overlays are 83% more effective in driving click-throughs. Branded vs. Interactive Overlay 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2009 Q1 2010 Q2 2010 Branded Interactive © 2007-10 AdoTube, Inc. – All Rights Reserved 6
- 7. A/B Testing Results Standard Pre-Roll vs. Polite Pre-Roll® While rolling out our Polite Pre-Roll® format, we worked with select advertiser to perform isolated A/B Testing over 30 million servings in order to see how the less intrusive Polite Pre-Roll® stacks up against the Standard Pre-Roll. We found: While less viewers watched 25% of the Polite Pre-Roll® 3% more viewers actually chose to watch through the end of the ad Ad Format View-Thru Rate (25%) View-Thru Rate (100%) Polite Pre-Roll® 46.3% 37.1% Standard Pre-Roll 54.5% 36.0% The Polite Pre-Roll® has A 133% higher CTR. (3.76% vs. 1.61%) The Polite Pre-Roll® showed a 36% lower video abandonment rate Results: Viewers who are actually interested in the advertisement will be more likely watch through the entire ad and click-through with the Polite Pre-roll®. Additionally, it lowers abandonment rates for publishers by allowing viewers who are not interested to hide the ad. © 2007-10 AdoTube, Inc. – All Rights Reserved 7
- 8. Actual CTR: Standard Pre-Roll vs Polite Pre-Roll® CTRs for Polite Pre-Roll® have steadily increased as they are rolled out, while the standard pre-roll CTR has remained fairly constant. With the official PPR announcement, the number of ads served will increase and the CTR is expected to jump. Preliminary Q3 results show a 133% jump, yielding a 63% higher CTR than Standard Pre-Rolls. 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2009 Q1 2010 Q2 2010 Prelim. Q3 Standard Pre-Roll Polite Pre-Roll® © 2007-10 AdoTube, Inc. – All Rights Reserved 8
- 9. Actual View-Through Rate: Standard Pre-Roll vs Polite Pre-Roll® While the number of Polite Pre-Rolls® served increases, we expect to see a closer view- through rate to our A/B testing. As for now, it is interesting to note that we are still seeing a 7% higher retention rate on the Polite Pre-Rolls®. This showcases how the Polite Pre-Roll® is a better option to keep a viewer’s attention if they are interested in the ad. Additionally, if a viewer decides to dismiss the Polite Pre-Roll®, they will still see overlay reminder messaging throughout the video. For standard pre-roll, a viewer who does not watch through all of the ad has generally left the video entirely. POLITE PRE-ROLL® Quarter View-Thru Rate (25%) View-Thru Rate (100%) Ad Retention Rate 2009 Total N/A N/A N/A Q1'2010 Total 48.64% 37.24% 76.56% Q2'2010 Total 47.60% 34.10% 71.64% Q3'2010 Total 49.40% 37.71% 76.34% Average 48.50% 36.71% 74.85% STANDARD PRE-ROLL Quarter View-Thru Rate (25%) View-Thru Rate (100%) Ad Retention Rate 2009 Total 59.03% 43.77% 74.15% Q1'2010 Total 57.57% 41.43% 71.96% Q2'2010 Total 58.48% 42.65% 72.93% Q3'2010 Total 56.51% 42.11% 74.52% Average 57.77% 42.74% 73.39% © 2007-10 AdoTube, Inc. – All Rights Reserved 9
- 10. About AdoTube & Definition of Terms About AdoTube AdoTube is a complete in-stream/in-video solution that enables each part of the industry (agencies, advertisers and publishers) to have easy and efficient access to in-stream ads. AdoTube’s platform includes the Adotube Ad Network, Publisher Management Tool (PUMA), In-Stream Ad Exchange (AdEx), Network Partner Console for third party networks media brokers ,and Creative Services. AdoTube’s complete platform helps each part of the industry to deliver high-quality, in-stream advertising solutions through a quick, easy and cost efficient platform. AdoTube is headquartered in New York, with offices in California and Europe. To learn more about AdoTube, become a partner, or see their solutions for agencies, advertisers, publishers and ad networks, visit www.adotube.com. Definitions 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 interactive elements such as a game or a video 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 © 2007-10 AdoTube, Inc. – All Rights Reserved 10