1. A few words about our report
• Data represents 45B video views and
nearly 28B video ad views in 2011
• Reflects professional, rights-managed
video aggregated across our customer set

2. Video ad volume continues to rise
Pre-rolls
+35% YOY
Mid-rolls
+146% YOY
Post-rolls
+122% YOY
Source: FreeWheel proprietary data
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011
Pre-roll Mid-roll Post-roll

3. Approaching TV-like ad loads
8.00
6.92 Long-form: 20+ min
7.00
Mid-form: 5-20 min
6.00
Short-form: <5 min
5.02
5.00
4.00
3.10
2.91
3.00
2.00
1.22
1.02
0.75 0.85
1.00
0.46 0.43 0.45 0.54
0.00
Source: FreeWheel proprietary data
Long-form content Mid-form content Short-form content
Q1 2011 Q2 2011 Q3 2011 Q4 2011

4. Ad completion rates hold steady
100%
80%
60%
40%
20%
0% Source: FreeWheel proprietary data
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011
Pre-roll Mid-roll Post-roll

5. Non-PC viewing small but rising

6. Device instability remains
40%
35%
30%
25%
20%
15%
10%
5%
0%
Source: FreeWheel proprietary data
iPhone iPod/iPod Touch iPad Android
Q1 2011 Q2 2011 Q3 2011 Q4 2011

7. To sum up
• Seeing more video ads in video content
• Approaching TV-like ad loads
• Aligning length of ad with length of content
• Consumers will watch through the ads
• Most professional video still watched on PCs
• Device fragmentation and instability
continues…

8. Ok…
SO, WHAT’S A SELLER OR
BUYER TO DO?

9. Sellers: start atomic, then scale

10. Sellers: innovation isn’t a format
• Your goal: generate revenue via ad
products that scale across environments
– You need: forecasting, booking, trafficking,
delivery, and reporting
– Buyers need: critical tracking metrics,
especially credit/currency and brand
effectiveness

11. Sellers: innovation isn’t a format
• So, what ad products should you offer?
– Atomic linear units (companions optional)
– Robust sponsorships and exclusives
– Storyboarding – creative sequencing
– Deploy unique, rich media units in your most
trafficked areas
• Develop only for broadly-adopted
environments, devices

12. Buyers: buy at scale, then create

13. Buyers: creativity isn’t a format
• Your goal: achieve campaign objectives,
demonstrate brand impact
– Reach, frequency, primacy of placement
– 3rd party deliver ad creative across platforms
and environments
– Report on critical tracking metrics, especially
credit/currency and brand effectiveness

14. Buyers: creativity isn’t a format
• So, what can you buy?
– Take advantage of storyboarding and creative
sequencing within and across a given video
– Frequency cap to protect the user experience
and prevent saturation
– Dynamically adjust creative sequencing based
on real-time performance inputs
– Request make-goods across linear and digital
platforms using audience targeting