Q3 2011

Format Index

© 2011 AdoTube, Inc. – All Rights Reserved

Q3 2011 Key Takeaways Advertisers see the power of interactivity

Pre-Rolls Drop to 10%, while interactive ads surge to 61% of ads served

Average CTR steadies at 2.1%

Delivering the same display message in-stream still generates over 6X

Interaction & click-through rates

New format, In-Stream Takeovers offer as much as a 4X boost in CTR and a

43% lower close rate than similarly featured Branded and Interactive Overlays

The Polite Pre-Roll® and Ad Selector, which allow a user to close the ad, offer a low

abandonment rate for publishers – up to 46% lower than standard Pre-Rolls

The Ad Selector exhibited a 65% view-through rate, as well as an 80% retention

rate

Government advertising increased by 152% over 2010 driven by presidential

campaigns. Food Service and CPG increased by 212% and 61% respectively

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Q1 2011

Interactive Jumps to 61%, Pre-Roll Drops to 10%

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Q2 2011

Pre-Rolls drop to 10% due to interest in interactive formats

Interactive formats now account for 61% of all ads sold

3

Q3 2011

CTR Stabilizes at 2.1%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2009 Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Average CTR

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Introducing the In-Stream Takeover

High impact in-stream unit with functions similar to the Polite Pre-Roll®. Enables marketers to deliver a brand message within the video stream that is either static or interactive, and does not need to include a video message. Similar in size and proportions to a 336x280 banner ad.

While In-Stream Takeover still represents a small percentage of overall video ads, it is expected that this format will continue to grow in popularity with marketers.

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In-Stream Takeover

Delivering the Same Display Message In-Stream Still

Generates 6X – 25X Interaction & Click-through Rates

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Branded & Interactive Overlays as well as In-Stream Takeovers

perform over 6X than their rich media and flash display counterparts

In-Stream Takeovers with their larger branding area can perform up

to 4X better than the smaller overlay formats with as much as a 43%

lower close rate

Avg.

CTR

Close

Rate

Engagement

Rate

Doubleclick

Benchmarks 2010*

Branded Overlay .49% 29.9% N/A Flash 728x90

.08% CTR

Interactive

Overlays 1.47% 22.6% 19.77%

Rich Media 728x90

.06% CTR

Expanded Non-Video

2.74% Interaction Rate**

In-Stream

Takeover 2.30% 17.1% N/A

Rich Media 336x280

.13% CTR

Source: *Doubleclick Benchmarks, 2010: http://www.google.com/adwords/watchthisspace/tools/

**http://www.google.com/adwords/watchthisspace/tools/#methodology-and-definitions

CTR View-Thru Rate

(25%)

View-Thru Rate

(100%)

Close Rate Abandonment

Rate

Pre-Roll 2.0% 75% 59% N/A 39%

Polite Pre-Roll® 2.2% 66% 47% 18% 32.8%

Ad Selector 4.0% 80% 65% 10% 21%

Polite Pre-Roll® & Ad Selector – Show Low

Abandonment Ad Selector shows continued strength

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Including a close button can lower abandonment rates (users

exiting the experience) by as much as 46%

Ad Selector shows the most strength among video Pre-Roll

formats with a 65% VTR and an 81% retention rate

Average Increase in Spend in 2011 Propelled

by CPG, Government and Food Service

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Government advertising increased by 152% over 2010 driven by

presidential campaigns

Food Service and CPG increased by 212% and 61% respectively

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-Q3 2011.

Process:

We collected and analyzed data from a sample of over 6.5 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.

9 © 2011 AdoTube, Inc. – All Rights Reserved

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.

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