1. Rhythm Q2 2010
Mobile Video Advertising Report
© Rhythm NewMedia Inc.

2. Overview
This report provides Q2 2010 mobile video advertising metrics from the Rhythm
mobile advertising network. Data reflects ads shown over 325 million average
monthly views in Q2, on iPhone, iPod Touch, iPad and Android devices in the US
market. Rhythm’s publisher network includes top broadcast TV networks, 10 of top
25 cable networks, the largest news agency, and leading entertainment news,
games, sports, breaking news, lifestyle, music sites and more. From Q1 to Q2,
Rhythm’s average monthly content views grew 30%. The data is based on ad
campaigns from 14 of top 20 US advertisers, including over 75 Fortune 500 brands.
Advertising units include:
• Interactive Pre-Roll Video
• Interactive Full-Page
• Interactive App Launch
• Interactive Banner
The metrics provided herein are solely representative of the Rhythm mobile
advertising network and may not reflect the overall ecosystem for similar ads.
© 2010 Rhythm NewMedia, Inc. All rights reserved. Attribution required for publication of any data provided in this report.
© Rhythm NewMedia Inc. 2

3. Summary of Q2 Insights
1. Rhythm’s network grew 30% in Q2, significantly faster than industry forecasts
for mobile video. According to e-Marketer, mobile video viewers in the US will
grow nearly 30% for all of 2010. (Source: e-Marketer, August 3, 2010)
2. Mobile video viewing continues to be spread throughout the day unlike TV,
which has a large spike during prime time.
3. For Android devices, mobile video viewing occurs mostly on 3G networks with
72% over 3G and 28% over WiFi. For iPhones, mobile video viewing is split
more evenly, with 56% over 3G and 44% over WiFi.
4. Viewing time for full episodes increased 20% quarter over quarter. After
starting to view a full length episode (typically 45 minutes), 26.5% watched the
entire episode and 41% watched at least half of the episode.
5. Completion rates for interactive pre-roll video ads remains high at 88%, better
than both online video and television.
6. Average clickthrough rates remain high, but with a large variation as seen in
the 2.4% to 11.2% range on full page ads. Rhythm provides advertisers with
best practices for achieving high clickthrough rates. For example, banner ads
and full page ads packaged with interactive pre-roll video ads yield
clickthrough rates 45% and 50% higher, respectively, than campaigns without
pre-roll video.
© Rhythm NewMedia Inc. 3

4. % of Overall Daily Usage
0.0%
2.0%
4.0%
6.0%
6:00 AM 8.0%
© Rhythm NewMedia Inc.
7:00 AM
8:00 AM
9:00 AM
10:00 AM
Median Hour: 4.6%
11:00 AM
12 Noon
1:00 PM
2:00 PM
3:00 PM
4:00 PM
Time of day viewing patterns are similar to Q1
5:00 PM
6:00 PM
Hours
7:00 PM
Video Usage by Hour of Day
8:00 PM
9:00 PM
10:00 PM
11:00 PM
12 Midnight
1:00 AM
Mobile Video Viewing Remains Spread Throughout the Day
2:00 AM
3:00 AM
4:00 AM
5:00 AM
4

5. % of Overall Daily Usage
0.0%
2.0%
4.0%
6.0%
6:00 AM 8.0%
© Rhythm NewMedia Inc.
3G
WiFi
7:00 AM
8:00 AM
9:00 AM
10:00 AM
11:00 AM
12 Noon
1:00 PM
2:00 PM
3:00 PM
4:00 PM
5:00 PM
During the evening WiFi usage is greater than 3G
6:00 PM
Hours
7:00 PM
Mobile Video Viewing by Hour: 3G vs WiFi
8:00 PM
9:00 PM
10:00 PM
11:00 PM
12 Midnight
1:00 AM
2:00 AM
3:00 AM
4:00 AM
5:00 AM
5

6. Network Mobile Video Viewing Over 3G and WiFi
Mobile video viewing is roughly split across 3G and WiFi networks
Total Network
3G 53% 47%
© Rhythm NewMedia Inc. 6

7. Android & iPhone Mobile Video Viewing Over 3G and WiFi
Android users rely more heavily on 3G networks when watching video
Android Only iPhone only
3G 3G
28%
56% 44%
72%
© Rhythm NewMedia Inc. 7

8. Video Viewing Higher on Apps with Full Episodes
Full episode viewing time up 20% quarter over quarter
Average Monthly Video Minutes per Unique Visitor
:35
:30
Monthly Minutes per Unique Visitor
:25
:20
:15
Q1 Q2
:10
:5
Q1 Q2
:0
Apps With Full Episodes Apps with Video Clips
After starting to watch a full length episode, 26.5% of users watched the entire episode
and 41% of users watched at least half of the episode
© Rhythm NewMedia Inc. 8

9. Ad Units Covered in Report
Interactive Pre-Roll Video App Launch Ad
demo
Tap on pre-roll to interact with ad without leaving
the app
Integrated in-app interactions on
all Rhythm ad units can tap to
anything
A premium and interactive brand experience for
media, games, utilities and more
© Rhythm NewMedia Inc. 9

10. Ad Units Covered in Report (continued)
Full-Page Ad Banner
Engaging and interactive ads placed between Static, animated or expanding display units for
photos, game levels, news and more any type of content
© Rhythm NewMedia Inc. 10

11. High Completion Rates for Interactive Pre-Roll Ads
Completion rate grew quarter over quarter by 1.2%
Pre-Roll Video Ad Completion Rates for Total Network
87.9%
75-100% Viewed 50-74% Viewed
25-49% Viewed 0-24% Viewed
© Rhythm NewMedia Inc. 11

12. Q2 Clickthrough Rate Ranges by Ad Unit
Average clickthrough rates remain high, but with a large variation
Q2 Clickthrough Rates
Full Page 2.4% Average 6.2% 11.2%
App Launch 3.2% Average 7.5% 12.9%
0.8% Av. 1.3% 2.0%
Pre-Roll Video
Banner 0.2% Av. 0.4% 1.4%
0% 2% 4% 6% 8% 10% 12% 14%
Clickthrough Rate
© Rhythm NewMedia Inc. 12

13. Q2 Clickthrough Rates Across Ad Campaigns
Display ads have higher clickthrough rates when packaged with pre-roll video
Data Shown For Consumer Package Goods, Travel, Entertainment and Food & Beverage Campaigns
0.6%
45% increase 8%
50% increase
Clickthrough Rate
Clickthrough Rate
6%
0.4%
4%
0.2%
2%
0.0% 0%
Only Banner Ads Banner Ads Packaged Only Full Page Ads Full Page Ads
with Pre-Roll Video Packaged with Pre-Roll
Ads Video Ads
Clickthrough rates on display ads improved significantly on
campaigns that included interactive pre-roll video ads packaged
with banner ads and/or full page ads
© Rhythm NewMedia Inc. 13

14. About Rhythm NewMedia
Rhythm NewMedia is the leading mobile video ad network. Rhythm monetizes
premium mobile apps and websites through a combination of our superior ad
technology and national sales team. Rhythm's mobile ad units create more value
for publishers and brand advertisers by combining the brand engagement and
visceral nature of television with the interactivity and targeting of online media.
Rhythm’s ad server optimizes revenue through dynamic targeting and pacing.
Rhythm’s rapidly growing network averaged 325 million monthly content views in
Q2 from top broadcast TV networks, 10 of top 25 cable networks, the largest
news agency and leading entertainment news, games, sports, breaking news,
lifestyle, music sites and more. Eight of top 10 US advertisers and 14 of top 20
US advertisers, including over 75 Fortune 500 brands have recently run
campaigns on our network. For more information and example publishers and
advertisers, please visit: www.rhythmnewmedia.com
• For more information on becoming one of • For questions regarding this report, or for
Rhythm’s publishers, please contact Benjamin recommendations for future reports, please
Dorr, VP, Business Development: contact Lisa (Friedrichs) Abramson, Director
bdorr@rhythmnewmedia.com of Marketing, press@rhythmnewmedia.com
• To advertise on Rhythm’s network, please
contact: adsales@rhythmnewmedia.com
© Rhythm NewMedia Inc. 14