The Future of Banner Advertising

Marcel Udo Managing Director Europe EyeWonder Factoids Pioneered Instant Play Video Ads in 1999 Regional offices in New York, Atlanta, Los Angeles, San Francisco, Seattle, Chicago, London, Dublin and Köln Expanding into Germany, Holland, Spain and France European Technical Base in Dublin, Ireland 220 Staff Worldwide Extensive Video and Rich Media Ad Formats and Features Ad Operations facilities on both East and West Coast of US Accepted on over 2,000 publishing sites and Select Site Partners Experts in delivering rich media ads designed for results

Pioneered Instant Play Video Ads in 1999

Regional offices in New York, Atlanta, Los Angeles, San Francisco, Seattle, Chicago, London, Dublin and Köln

Expanding into Germany, Holland, Spain and France

European Technical Base in Dublin, Ireland

220 Staff Worldwide

Extensive Video and Rich Media Ad Formats and Features

Ad Operations facilities on both East and West Coast of US

Accepted on over 2,000 publishing sites and Select Site Partners

Experts in delivering rich media ads designed for results

Banner Advertising is dead!!

Why? Banner advertising = online display advertising Banner Blindness Annoying Bad CTR Expensive SEA (Google) more effective and cheaper

Banner advertising = online display advertising

Banner Blindness

Annoying

Bad CTR

Expensive

SEA (Google) more effective and cheaper

TRUE? NO!

NO!

Online Display Advertising is in next phase

More variation price models Performance based advertising (CPC, CPX) Pay for traffic or sales (leads )only, by using the auction model also more interesting for publishers Traditional display advertising (CPM) Buy a few million impressions at a fixed cpm price Interactive Digital advertising Interactive (rich) media, Video

Performance based advertising (CPC, CPX)

Pay for traffic or sales (leads )only, by using the auction model also more interesting for publishers

Traditional display advertising (CPM)

Buy a few million impressions at a fixed cpm price

Interactive Digital advertising

Interactive (rich) media, Video

Performance based Display advertising Pay per click/sale/lead (CPX) High volume No targeting Very good for transaction based Website Low CTR , often annoying experience by user Due to the auction model more and more popular by publishers to sell their unused inventory Revenue is increasing

Pay per click/sale/lead (CPX)

High volume

No targeting

Very good for transaction based Website

Low CTR , often annoying experience by user

Due to the auction model more and more popular by publishers to sell their unused inventory

Revenue is increasing

Interactive Digital advertising Higher CPM , better targeting More complicated Used more for brand experience Far better results on interaction and Brand awareness

Higher CPM , better targeting

More complicated

Used more for brand experience

Far better results on interaction and Brand awareness

Why Interactive/rich media? The traditional way: Build a website, to interact with your customer Get traffic by using Google and display advertising Convince people to click on your banner (0,08-0,25%CTR average) With every click 30% of the visitors leave from your website Example: You pay € 10,- cpm , CTR is 0,2% , so for € 10,- you get 2 visitors interacting with your brand , of which 30% per click on your website leave. Everybody happy?

The traditional way:

Build a website, to interact with your customer

Get traffic by using Google and display advertising

Convince people to click on your banner (0,08-0,25%CTR average)

With every click 30% of the visitors leave from your website

Example:

You pay € 10,- cpm , CTR is 0,2% , so for € 10,- you get 2 visitors interacting with your brand , of which 30% per click on your website leave.

Everybody happy?

Why Interactive/rich media? The alternate way: If your goal is brand awareness, brand endorsement etc, why ask people to go to you website to experience your message? Bring your message to them, to places where they are already are, like publisher portals, social networks etc. Stop looking at clickrate only , interaction rate is far more important

The alternate way:

If your goal is brand awareness, brand endorsement etc, why ask people to go to you website to experience your message?

Bring your message to them, to places where they are already are, like publisher portals, social networks etc.

Stop looking at clickrate only , interaction rate is far more important

150 times more interactions to CTR!

C A S E S T U D Y Special Ops Media and Universal Music Case Study: The Police The Police expandable ad features eight (8!) full-length videos of some their greatest hits, as well as its own in-banner jukebox, send to a friend and more Richer Results: • Total Interaction Rates averaged as high as 24.6% • Unique Interaction Rates averaged as high as 8.4% • Interaction times averaged 19.1 seconds across all sites (and averaged as high as 31.5 seconds on one site) • Campaign was a huge hit with Police fans and industry insiders

C A S E S T U D Y 65 Media and Activision Nail the Trick with Interactive Video teach users how to play the game "Nail The Trick" is a key and defining gameplayfeature in Tony Hawk's Project 8. An entirely new way to play the game, "Nail The Trick" mode gives precision control over how you move your feet to flip the skateboard. Using dual analog stick motions, you can create your own unique skate tricks --even during a combo --as you watch the action unfold in slow motion.

C A S E S T U D Y Levi’s uses Video Ads to Showcase the New High-Tech Jeans –Multiple interactive videos highlight built-in iPod functionality Levi’s RedWire << In the ad’s opening, actors adjust the iPod controls in their RedWirejeans and then dance where the music takes themUpon mouseover, the video ad expands and offers the ability to click on features that pop embedded videos for even closer inspection of the jeans’ features >>Richer Media: • Showcase the iPod features or Levi’s RedWirejeans by shooting web-only video to engage audiences • Interactive feature videos let users investigate further for even more detail of the jeans’ high-tech features Richer Results: • Average interaction times as high as 59 seconds • Total CTRs as high as .61 percent

Case Study: Sony Pictures “ Kung Fu Hustle”DVD release : 1)Ad appears in-page and EyeWonder video starts instantly… 2)User rolls over the ad and the video elegantly spins out of the banner and… 3)Resolves to an expanded video window of any size up to 400x300 (and can also feature additional interactivity). Upon completion of the video, or when the user clicks the “Close” button, the video automatically spins back into its original window in the contracted ad The success of the ad unit is already clear: Expand rates were as high as 9% Total interaction rates as high as 16%. Bladimiar Norman at Sony Pictures Digital calls it &quot;one of the coolest units we have done yet&quot;. This is an online video ad campaign that truly packs a punch!

C A S E S T U D Y Adidas/Foot Locker 1) Floating ad opens with video of a graffiti artist walking across the web page Richer Media: • Combine web-only video and floating ad formats to make an extremely compelling and memorable online statement • Traffic this compelling creative to hip-hop and other target sites to reach the ideal custom product audience Richer Results: • Average time viewed as high as 23.17 seconds • Total click-through rates (CTR) as high as 5.74 percent! This campaign is truly unique,and the floating ad format has never looked (or performed) better.

Standard reporting Video Interactions Tracked: Video Play Video Pause Video Stop Video Replay Audio On Audio Off Percent of Video Viewed Total Video Requests Video Bandwidth Breakdown Non-Video Interactions Tracked: Panel Expands Panel Contracts Brand Interaction Time/ Average Time of Total Interactions Interactions by Sequence Number Interactions by Type Total Click-throughs Click-through by Name CTR Percentage Summary Parameters Tracked: Total Interactions Unique Interactions Percentage of Total Interactions Impressions by Date/ Hour Total Impressions Percentage of Total Impressions Total Click-throughs Total CTR Percentage

Demos

Marcel Udo +31 6 29 01 35 01 www.eyewonder.com Richer Media. Richer Results. Actual End, but we have more >>

Always remember the CAMPAIGN OBJECTIVE! Shorter Instant Play Video ads and Animations Strong Specific Call-to-Actions Downloads, Coupons, Brand-specific Rewards Collect Data from the Banner Viral Components/Send to a Friend/Click to Call EyeWonder :: Best Practices for Richer Results

Always remember the CAMPAIGN OBJECTIVE!

Shorter Instant Play Video ads and Animations

Strong Specific Call-to-Actions

Downloads, Coupons, Brand-specific Rewards

Collect Data from the Banner

Viral Components/Send to a Friend/Click to Call

Brand Impact & Awareness Brand Interaction & Favorability Direct Response & Acquisition Brand Advocacy & Endorsement Instant Play Video Ads User-Initiated Video or Rich Media Ads Custom Site Ads EyeWonder :: Richer Media Campaigns

Brand Impact & Awareness Brand Interaction & Favorability Direct Response & Acquisition Brand Advocacy & Endorsement Samples provided for demo purposes only Instant Play Video Ads User-Initiated Video or Rich Media Ads Custom Site Ads EyeWonder :: Richer Media Campaigns Ad/Brand Impact & Awareness Creative Goal: Audience Engagement (measured by: Clickthru /interaction Rate) Use Instant Play video to attract & engage users Feature sight, sound, motion and placement to engage, not to annoy Keep the animation to a minimum – win users over in less than :15 Add a call-to-action Make the clickthru as large as possible

Ad/Brand Impact & Awareness

Creative Goal: Audience Engagement (measured by: Clickthru /interaction Rate)

Use Instant Play video to attract & engage users

Feature sight, sound, motion and placement to engage, not to annoy

Keep the animation to a minimum – win users over in less than :15

Add a call-to-action

Make the clickthru as large as possible

Brand Impact & Awareness Brand Interaction & Favorability Direct Response & Acquisition Brand Advocacy & Endorsement Samples provided for demo purposes only Instant Play Video Ads User-Initiated Video or Rich Media Ads Custom Site Ads EyeWonder :: Richer Media Campaigns Brand Education, Interaction & Favorability Creative Goal: Audience Interaction (measured by: Interaction Rate & Time) Add Interactivity to inform and/or entertain Name and track more interactions keeping them fun and imaginative, and messages simple and understandable Encourage mouseover or rollover explicitly (rollovers have more interactions than click) Include expand / contract animations Audio – click to replay to play back the entire video with audio Video – always use a ‘Replay Video’ CTA on end facade

Brand Education, Interaction & Favorability

Creative Goal: Audience Interaction (measured by: Interaction Rate & Time)

Add Interactivity to inform and/or entertain

Name and track more interactions keeping them fun and imaginative, and messages simple and understandable

Encourage mouseover or rollover explicitly (rollovers have more interactions than click)

Include expand / contract animations

Audio – click to replay to play back the entire video with audio

Video – always use a ‘Replay Video’ CTA on end facade

Brand Impact & Awareness Brand Interaction & Favorability Direct Response & Acquisition Brand Advocacy & Endorsement Samples provided for demo purposes only Instant Play Video Ads User-Initiated Video or Rich Media Ads Custom Site Ads EyeWonder :: Richer Media Campaigns Direct Response, Lead Generation, Purchase Intent Creative Goal: Audience Reward (measured by: Custom Reward Rate) Offer more than just a click-through to site Deliver specific rewards – all individually tracked and reported Reward the user with actual coupons, specials, other promo items Provide features that get them closer to purchase and/or consumption: reminders, zip code locators, etc

Direct Response, Lead Generation, Purchase Intent Creative Goal: Audience Reward (measured by: Custom Reward Rate)

Offer more than just a click-through to site

Deliver specific rewards – all individually tracked and reported

Reward the user with actual coupons, specials, other promo items

Provide features that get them closer to purchase and/or consumption: reminders, zip code locators, etc

Brand Impact & Awareness Brand Interaction & Favorability Direct Response & Acquisition Brand Advocacy & Endorsement Samples provided for demo purposes only Instant Play Video Ads User-Initiated Video or Rich Media Ads Custom Site Ads EyeWonder :: Richer Media Campaigns Brand Advocates / Evangelists Creative Goal: Brand Endorsement (measured by: Download/Viral Rate) Provide tools for users to show/spread their support for your brand/product Use downloadable features like avatars, ringtones, wallpapers, etc Viral features encourage forwarding and deliver “free” extra impressions Create and foster a community of brand loyalists and “viral brand evangelists”

Brand Advocates / Evangelists Creative Goal: Brand Endorsement (measured by: Download/Viral Rate)

Provide tools for users to show/spread their support for your brand/product

Use downloadable features like avatars, ringtones, wallpapers, etc

Viral features encourage forwarding and deliver “free” extra impressions

Create and foster a community of brand loyalists and “viral brand evangelists”

Marcel Udo +31 6 29 01 35 01 www.eyewonder.com Richer Media. Richer Results. Really ended! Thank you