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Q2 2011
Format Index




© 2011 AdoTube, Inc. – All Rights Reserved
Q2 2011 Key Takeaways
Ad Selector shows promise, Food Services increases investment
  Video ads account for close to 60% of all ads served. Interactive Overlays jumped 10
  percentage points pulling primarily from Branded Overlays.

  Average click-through rates continue to rise - jump 20% to 2.25%.

  Interactive ads with engaging bonus features continue to offer nearly twice the clicks
  than their branded counterparts.

  The Ad Selector format: 84% of viewers who chose their pre-roll advertisement
  watched it to completion. The ad also exhibited a 63% view-through rate overall and
  a 5.8% click-through rate.

  Pre-Roll and Polite Pre-Roll® continue to stay close to a 50% view-through rate.

  CPG is still the biggest buyer of advertising inventory, but in second, Food Service
  accounts for nearly 15% of ads served this quarter jumping 311% over Q1 and a
  nearly 122% jump over Q2 2010.




                             © 2011 AdoTube, Inc. – All Rights Reserved                    2
Interactive Overlays Increase to 25% of Total Ads

 Video advertisements continue to dominate, accounting for nearly
 60% of ads served
 Advertisers start to see the importance of Interactive Overlays – jump
 10 percentage points

           Q1 2011                                                  Q2 2011




                       © 2011 AdoTube, Inc. – All Rights Reserved             3
CTR Jumps 20 Percent to 2.25%
Continued growth is attributed to the adoption of high-impact formats
and features, including Polite Pre-Roll®, In-Stream Takeovers,
Expansions, Gaming, Social Media, etc.

                                 Average CTR
        2.50%

        2.00%

        1.50%

        1.00%

        0.50%

        0.00%
                2009    Q1        Q2           Q3          Q4         Q1     Q2
                       2010      2010         2010        2010       2011   2011


                        © 2011 AdoTube, Inc. – All Rights Reserved                 4
CTR - Interactive vs. Branded In-Stream Ads


                      CTR - Branded vs. Interactive
     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 Q3 2010 Q4 2010 Q1 2011 Q2 2011

                              Branded         Interactive




                       © 2011 AdoTube, Inc. – All Rights Reserved     5
Introducing the Ad Selector



                     The Ad Selector format provides users the
                     ability to select the brand message,
                     product, or promotion they are most
                     interested in


                     While Ad Selector still represents a small
                     percentage of overall video ads, it is
 Ad Selector         expected that this format will continue to
                     grow in popularity with marketers




               © 2011 AdoTube, Inc. – All Rights Reserved         6
In-Stream Video View-Through Rates Strengthen
Ad Selector Shows Tremendous Promise


   The Ad Selector offers an overall view-through rate of 63% with an
   outstanding 84% retention rate
   Polite and Standard Pre-Roll continued to slowly climb around 50%


                  CTR      View-Thru Rate                View-Thru Rate   Retention
                               (25%)                         (100%)         Rate
Polite Pre-Roll   3.2%              61%                           45%       74%

Pre-Roll          2.1%              65%                           51%       78%

Ad Selector       5.8%              74%                           63%       84%




                         © 2011 AdoTube, Inc. – All Rights Reserved                   7
Campaigns by Vertical
Food Services increases by 311% since Q1 2011 and 122% from 2010.
Retail, Government, Fashion and Electronics also showed strong growth.




                        © 2011 AdoTube, Inc. – All Rights Reserved       8
About the AdoTube In-Stream Ad Format Index

AdoTube serves ads on thousands of publishers sites, serving 75 MM to 125MM 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-Q2 2011.
Process:
We collected and analyzed data from a sample of over 5.3 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.




                                 © 2011 AdoTube, Inc. – All Rights Reserved                        9
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.


                                   © 2011 AdoTube, Inc. – All Rights Reserved                          10

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Ado Tube Format Index Q2 2011

  • 1. Q2 2011 Format Index © 2011 AdoTube, Inc. – All Rights Reserved
  • 2. Q2 2011 Key Takeaways Ad Selector shows promise, Food Services increases investment Video ads account for close to 60% of all ads served. Interactive Overlays jumped 10 percentage points pulling primarily from Branded Overlays. Average click-through rates continue to rise - jump 20% to 2.25%. Interactive ads with engaging bonus features continue to offer nearly twice the clicks than their branded counterparts. The Ad Selector format: 84% of viewers who chose their pre-roll advertisement watched it to completion. The ad also exhibited a 63% view-through rate overall and a 5.8% click-through rate. Pre-Roll and Polite Pre-Roll® continue to stay close to a 50% view-through rate. CPG is still the biggest buyer of advertising inventory, but in second, Food Service accounts for nearly 15% of ads served this quarter jumping 311% over Q1 and a nearly 122% jump over Q2 2010. © 2011 AdoTube, Inc. – All Rights Reserved 2
  • 3. Interactive Overlays Increase to 25% of Total Ads Video advertisements continue to dominate, accounting for nearly 60% of ads served Advertisers start to see the importance of Interactive Overlays – jump 10 percentage points Q1 2011 Q2 2011 © 2011 AdoTube, Inc. – All Rights Reserved 3
  • 4. CTR Jumps 20 Percent to 2.25% Continued growth is attributed to the adoption of high-impact formats and features, including Polite Pre-Roll®, In-Stream Takeovers, Expansions, Gaming, Social Media, etc. Average CTR 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2009 Q1 Q2 Q3 Q4 Q1 Q2 2010 2010 2010 2010 2011 2011 © 2011 AdoTube, Inc. – All Rights Reserved 4
  • 5. CTR - Interactive vs. Branded In-Stream Ads CTR - Branded vs. Interactive 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 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Branded Interactive © 2011 AdoTube, Inc. – All Rights Reserved 5
  • 6. Introducing the Ad Selector The Ad Selector format provides users the ability to select the brand message, product, or promotion they are most interested in While Ad Selector still represents a small percentage of overall video ads, it is Ad Selector expected that this format will continue to grow in popularity with marketers © 2011 AdoTube, Inc. – All Rights Reserved 6
  • 7. In-Stream Video View-Through Rates Strengthen Ad Selector Shows Tremendous Promise The Ad Selector offers an overall view-through rate of 63% with an outstanding 84% retention rate Polite and Standard Pre-Roll continued to slowly climb around 50% CTR View-Thru Rate View-Thru Rate Retention (25%) (100%) Rate Polite Pre-Roll 3.2% 61% 45% 74% Pre-Roll 2.1% 65% 51% 78% Ad Selector 5.8% 74% 63% 84% © 2011 AdoTube, Inc. – All Rights Reserved 7
  • 8. Campaigns by Vertical Food Services increases by 311% since Q1 2011 and 122% from 2010. Retail, Government, Fashion and Electronics also showed strong growth. © 2011 AdoTube, Inc. – All Rights Reserved 8
  • 9. About the AdoTube In-Stream Ad Format Index AdoTube serves ads on thousands of publishers sites, serving 75 MM to 125MM 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-Q2 2011. Process: We collected and analyzed data from a sample of over 5.3 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. © 2011 AdoTube, Inc. – All Rights Reserved 9
  • 10. 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. © 2011 AdoTube, Inc. – All Rights Reserved 10