adotub3 q3 2010 in-video ad format index

8/8/2019 Adotub3 Q3 2010 In-Video Ad Format Index

1/13

! Interactive Ads on track to double in 2010: 48% of ads Q3! Average CTR increases 237% over 09: Doubles from Q2 to Q3! Engagement Rates for interactive ads average a strong 21.6%! CPG vertical makes big push into video ads: Accounts for 30.4%

of ads served in Q3 growing 377% over 2009

2007-10AdoTube,Inc.AllRightsReserved


2/13

AdoTube serves ads on over 5k+publishers sites and serves over 50MM to 75MMin-videoad impressions per week.

This format index provides an overview of the effectiveness of our many different in-streamvideo ad formats over 2009, Q1 2010, Q2 2010, and Q3 2010.

Procedure:

We collected and analyzed data from a sample of1.9 Billion+ impressions deemed to be

statistically relevant, taking advertising verticals, video content, and type of targeting intoaccount. 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 different verticals to analyze performance onan industry by industry basis.

The following numbers are based on results derived from AdoTubes Network only and do notrepresent the in-video ad space as whole.



3/13

! Advertisers Catch On: Interactive Ads on track to double in 2010: Interactive ads grew from32% in Q2 to 48% in Q3. A big part of this came from Interactive Overlays which jumped from 15% to25% of ads served.

! Interactive Formats drive 237% CTR growth: Average CTRs outgrew preliminary estimates to1.99%, a 97% increase over Q2 and a 237% increase over the 2009 average.

! Brand Engagement Rates hold-steady, averaging a strong 21.6%, 09 & 10 year-to-date.! Polite Pre-Roll overtakes Standard Pre-Roll with 70% higher CTR: Polite Pre-Roll CTR

increased to 4.54% as the CTR for Standard Pre-Roll dips to 2.67%. Similarly, view-through andretention rates rose slightly for Polite Pre-Roll, while dipping slightly for Standard Pre-Roll .

! CPG makes big push into Video Ads: CPG Advertisements accounted for 30.4% of ads served in Q3growing 140% over Q2 and 377% over 2009.

!Financial/Insurance Ads Engage Video Viewers:A few successful campaigns pushed theengagement rate for the Finance/Insurance vertical to a huge 47.7%.

! Creative and Targeting Optimization on interactive ads gives CPG and Web Services anadvantage in Q3: With a focus on leveraging AdoTubes full toolset, CPG and Web Services drove thehighest click-throughs this quarter for Interactive Overlays & Pre-Rolls with CTRs of 3.06% and 7.86%respectively.



4/13

Original Q3 expectations were focused on Pre-Rolls. Due to our clients overwhelmingdemand for multiple engaging in-video solutions, interactive formats jumped. This isespecially true with Interactive Overlays, which now account for 25% of ads served.

Combined with the Polite Pre-Roll, interactive in-video ad formats account for 48% ofall ads served.

4

PolitePre-

Roll

17%

InteracBve

Overlay

15%

randed

Overlay

4%

Pre-Roll

64%

Q22010


PolitePre-

Roll

23%

InteracBveOverlay

25%

randed

Overlay

7%

Pre-Roll

45%

Q32010

PolitePre-

Roll

11%

InteracBve

Overlay

12%

randed

Overlay

12%

Pre-Roll

66%

Q12010


5/13

With greater expansion from interactive advertisements such as the Polite Pre-Roll and the Interactive Overlay, the average CTR grew faster than we were

expecting with a 1.99% average CTR, 97% growth over Q2 and 237% over 2009.


0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2009 Q12010 Q22010 Q32010

AverageCTR


6/13

As the number of interactive ads delivered has grown, engagement rates haveheld relatively steady and in line with 2009, averaging 21.6%.


0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2009 Q12010 Q22010 Q32010

AverageEngagementRate


7/13

Interactive Overlay performance grew to .97% while Branded Overlay performancedipped to .35%. Interactive Overlays continue to be more effective in driving click-

throughs, by 177% this quarter.

7

0.00%0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

2009 Q12010 Q22010 Q32010

CTR-Brandedvs.Interac;veOverlay

randed InteracBve



8/13

CTR for Polite Pre-Roll was not quite as high as expected but still reached 4.54%while Standard Pre-Roll CTRs sunk to 2.67%. Polite Pre-Roll again proves to be a

format more effective at driving click-throughs.

8

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%4.50%

5.00%

2009 Q12010 Q22010 Q32010

StandardPre-Roll PolitePre-Roll



9/13

Q3 has seen a nominal improvement in the Polite Pre-Roll View-Through Rate, and anotable decline between 2-3% for the Standard Pre-Roll View-Through Rate and RetentionRate from Q2.

A simple 4.21% differential between a 100% View-Thru Rate for the Polite Pre-Roll and theStandard Pre-Roll highlights the fact that amount of viewers who end up watching all of thePolite Pre-Roll is on parity with the Standard Pre-Roll, with an added bonus of a 36% lowerabandonment rate for Publishers.

POLITEPRE-ROLL

Quarter View-ThruRate(25%) View-ThruRate(100%) AdReten;onRate

2009 N/A N/A N/A

Q12010 48.64% 37.24% 76.56%

Q22010 47.60% 34.10% 71.64%

Q32010 48.93% 35.77% 73.10%

Average 48.39% 35.70% 73.77%

STANDARDPRE-ROLL

Quarter View-ThruRate(25%) View-ThruRate(100%) AdReten;onRate

2009 59.03% 43.77% 74.15%

Q12010 57.57% 41.43% 71.96%

Q22010 58.48% 42.65% 72.93%

Q32010 56.33% 39.98% 70.97%

Average 57.85% 41.96% 72.50%



10/13

Below is a cross-section of our top advertising verticals in Q3. This quarter was leadby a surge in CPG advertising growing 140% over Q2 and 377% over 2009 to accountfor 30.4% of ads served.

.

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Alcohol

Electronics

Sports

WebServices&Products

Fashion

Finance/Insurance

Retail

Travel

Entertainment

CPG

%ofCampaignsbyVer;cal



11/13

Looking at average performance by vertical, year-to-date, we can see that Financial/Insurance ads had an average engagement rate of 47.7% thanks to a few verysuccessful campaigns in Q3. Following that are Entertainment, Web Services, and

Gaming with still extremely high engagement rates between 26% and 28%.

In terms of Overall CTR, Web Services leads with an average 2.41% CTR.

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

Electronics

Retail

FoodServicesAuto

Alcohol

CPG

Gaming


Entertainment

Finance/Insurance

EngagementRatebyVer;cal

0.00% 1.00% 2.00% 3.00%

Mobile

Entertainment

TravelRetail

CPG

Alcohol

Sports

FoodServices

Fashion


OverallCTRbyVer;cal



12/13

Broken out by verticals, the variance in performance for Branded Overlays andStandard Pre-Rolls was negligible in Q3. However, with the Interactive Overlays andthe Polite Pre-Roll, there was a much greater variation between industries due in part

to best practices in creative and targeting optimization. For Interactive Overlay, CPGlead with a 3.06% CTR, 124% higher than the next vertical, and with the Polite Pre-Roll, Web Services had a phenomenal 7.86% CTR, 75% higher than CPG which stillhad a very respectable 4.39% CTR.

0.00% 2.00% 4.00% 6.00% 8.00%

Entertainment

Fashion

Retail

CPG


CTRforPolitePre-RollbyVer;cal

0.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%

Retail


Sports

Electronics

CPG

CTRforInterac;veOverlaybyVer;cal



13/13

About AdoTubeAdoTube is a complete in-stream/in-video solution that enables each part of the industry (agencies, advertisersand publishers) to have easy and efficient access to in-stream ads. AdoTubes platform includes the Adotube AdNetwork, Publisher Management Tool (PUMA), In-Stream Ad Exchange (AdEx), Network Partner Console for thirdparty networks media brokers ,and Creative Services. AdoTubes complete platform helps each part of the industryto deliver high-quality, in-stream advertising solutions through a quick, easy and cost efficient platform. AdoTube isheadquartered 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 adreminds 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

Questions, Feedback, and Media Inquiries:

Ephraim Cohen [email protected]


adotub3 q3 2010 in-video ad format index

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