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Q3 2010 Format Index - AdoTube
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Quarterly index reviewing trends & data of the video advertising space.
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Q3 2010 Format Index - AdoTube
1.
Q3 2010
Format Index 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 © 2007-10 AdoTube, Inc. – All Rights Reserved
2.
Q3 2010 AdoTube In-Video
Ad Format Index AdoTube serves ads on over 5k+ publishers sites and serves over 50MM to 75MM 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, Q1 2010, Q2 2010, and Q3 2010. Procedure: We collected and analyzed data from a sample of 1.9 Billion+ impressions deemed to be statistically relevant, taking advertising verticals, video content, and type of targeting 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 different verticals to analyze performance on an industry by industry basis. The following numbers are based on results derived from AdoTube’s Network only and do not represent the in-video ad space as whole. © 2007-10 AdoTube, Inc. – All Rights Reserved 2
3.
Key Takeaways Interactive Continues
to Grow & CPG Makes Big Push Advertisers Catch On: Interactive Ads on track to double in 2010: Interactive ads grew from 32% in Q2 to 48% in Q3. A big part of this came from Interactive Overlays which jumped from 15% to 25% of ads served. Interactive Formats drive 237% CTR growth: Average CTRs outgrew preliminary estimates to 1.99%, 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 and retention 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 Q3 growing 140% over Q2 and 377% over 2009. Financial/Insurance Ads Engage Video Viewers: A few successful campaigns pushed the engagement rate for the Finance/Insurance vertical to a huge 47.7%. Creative and Targeting Optimization on interactive ads gives CPG and Web Services an advantage in Q3: With a focus on leveraging AdoTube’s full toolset, CPG and Web Services drove the highest click-throughs this quarter for Interactive Overlays & Pre-Rolls with CTRs of 3.06% and 7.86% respectively. © 2007-10 AdoTube, Inc. – All Rights Reserved 3
4.
Ad Format Growth: Advertisers
Adopt Interactive Formats Original Q3 expectations were focused on Pre-Rolls. Due to our clients’ overwhelming demand for multiple engaging in-video solutions, interactive formats jumped. This is especially 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% of all ads served. Q1 2010 Q2 2010 Q3 2010 Polite Pre- Roll® Polite Pre- 11% Roll® Polite Pre- Interactive 17% Roll® Overlay 23% 12% Pre-Roll Pre-Roll Interactive Pre-Roll Branded 64% Overlay 45% 66% Overlay 15% Interactive 12% Overlay 25% Branded Branded Overlay Overlay 4% 7% © 2007-10 AdoTube, Inc. – All Rights Reserved 4
5.
Average CTR Growth: 237%
Higher CTR Over 2009 Lead by Interactive Ad Formats 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. Average CTR 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2009 Q1 2010 Q2 2010 Q3 2010 © 2007-10 AdoTube, Inc. – All Rights Reserved 5
6.
Average Engagement Rates: Brand
Engagement Rates from Interactive Ads Average a Strong 21.6% As the number of interactive ads delivered has grown, engagement rates have held relatively steady and in line with 2009, averaging 21.6%. Average Engagement Rate 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2009 Q1 2010 Q2 2010 Q3 2010 © 2007-10 AdoTube, Inc. – All Rights Reserved 6
7.
Interactive vs. Branded
Overlay CTR: Interactive Overlays 177% More Effective Interactive Overlay performance grew to .97% while Branded Overlay performance dipped to .35%. Interactive Overlays continue to be more effective in driving click- throughs, by 177% this quarter. CTR - Branded vs. Interactive Overlay 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 2009 Q1 2010 Q2 2010 Q3 2010 Branded Interactive © 2007-10 AdoTube, Inc. – All Rights Reserved 7
8.
Polite Pre-Roll vs.
Standard Pre-Roll CTR: ® Polite Pre-Roll® Generates 70% Higher CTR 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. 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 2009 Q1 2010 Q2 2010 Q3 2010 Standard Pre-Roll Polite Pre-Roll® © 2007-10 AdoTube, Inc. – All Rights Reserved 8
9.
View-Through Rates: Polite Pre-Roll®
Gains, Standard Pre-Roll Declines Q3 has seen a nominal improvement in the Polite Pre-Roll® View-Through Rate, and a notable decline between 2-3% for the Standard Pre-Roll View-Through Rate and Retention Rate from Q2. A simple 4.21% differential between a 100% View-Thru Rate for the Polite Pre-Roll® and the Standard Pre-Roll highlights the fact that amount of viewers who end up watching all of the Polite Pre-Roll® is on parity with the Standard Pre-Roll, with an added bonus of a 36% lower abandonment rate for Publishers. POLITE PRE-ROLL® Quarter View-Thru Rate (25%) View-Thru Rate (100%) Ad Retention Rate 2009 N/A N/A N/A Q1 2010 48.64% 37.24% 76.56% Q2 2010 47.60% 34.10% 71.64% Q3 2010 48.93% 35.77% 73.10% Average 48.39% 35.70% 73.77% STANDARD PRE-ROLL Quarter View-Thru Rate (25%) View-Thru Rate (100%) Ad Retention Rate 2009 59.03% 43.77% 74.15% Q1 2010 57.57% 41.43% 71.96% Q2 2010 58.48% 42.65% 72.93% Q3 2010 56.33% 39.98% 70.97% Average 57.85% 41.96% 72.50% © 2007-10 AdoTube, Inc. – All Rights Reserved 9
10.
Campaigns by Vertical
Big Push from CPG Below is a cross-section of our top advertising verticals in Q3. This quarter was lead by a surge in CPG advertising growing 140% over Q2 and 377% over 2009 to account for 30.4% of ads served. . % of Campaigns by Vertical CPG Entertainment Travel Retail Finance/Insurance Fashion Web Services & Products Sports Electronics Alcohol 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% © 2007-10 AdoTube, Inc. – All Rights Reserved
11.
Performance by Vertical
Finance & Entertainment Engage Viewers – Web Services & Fashion Drive Clicks 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 very successful 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. Engagement Rate by Vertical Overall CTR by Vertical Finance/Insurance Web Services & Products Entertainment Fashion Web Services & Products Food Services Gaming Sports CPG Alcohol Alcohol CPG Auto Retail Food Services Travel Retail Entertainment Electronics Mobile 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 0.00% 1.00% 2.00% 3.00% © 2007-10 AdoTube, Inc. – All Rights Reserved
12.
Vertical Performance by
Format - CTR CPG and Web Services Lead CTR via Creative and Targeting Optimization Broken out by verticals, the variance in performance for Branded Overlays and Standard Pre-Rolls was negligible in Q3. However, with the Interactive Overlays and the 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, CPG lead 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 still had a very respectable 4.39% CTR. CTR for Interactive Overlay by Vertical CTR for Polite Pre-Roll® by Vertical CPG Web Services & Products Electronics CPG Sports Retail Fashion Web Services & Products Entertainment Retail 0.00% 2.00% 4.00% 6.00% 8.00% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% © 2007-10 AdoTube, Inc. – All Rights Reserved
13.
About AdoTube AdoTube is
a complete in-stream/in-video solution that enables each part of the industry (agencies, advertisers and publishers) to have easy and efficient access to in-stream ads. AdoTube’s platform includes the Adotube Ad Network, Publisher Management Tool (PUMA), In-Stream Ad Exchange (AdEx), Network Partner Console for third party networks media brokers ,and Creative Services. AdoTube’s complete platform helps each part of the industry to deliver high-quality, in-stream advertising solutions through a quick, easy and cost efficient platform. AdoTube is headquartered 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 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 © 2007-10 AdoTube, Inc. – All Rights Reserved 13
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