The document discusses an advertising exchange called Eyespot that addresses challenges faced by small and medium website publishers. It allows publishers to monetize their video content through a single video player that can retrieve ads from multiple ad networks. This centralized approach maximizes ad revenue by selecting the best performing ad network based on metrics like eCPM and RPM. The exchange also aggregates reporting data to provide transparency into ad performance across different channels, viewers and ad types.

1. Ad-Exchange August, 2008

2. Broadband Video Advertising Challenge Website property is too small to get attention of advertisers Don’t have the engineering resources Not enough inventory / coverage from my ad-network Social media ad-revenue low Changes to my video player affects ad-net & visa-versa Multiple ad-nets = multiple players

3. Eyespot Broadband Advertising Exchange Built to address small-medium sized publishers “challenges” Addresses fill-rate and inventory issues Single implementation with multiple ad-networks Single player with multiple ad-networks Based on principals of an “Exchange” with multiple buyers (advertisers) and sellers (publishers) to maximize revenue

4. Technical Approach For An Digital Video Advertising Exchange

5. Browser Eyespot Monetization Component (.swf file) Media Player Partner Web Page Eyespot Monetization Server ScanScout Partner Media Player requests Eyespot Monetization Component (swf) from Eyespot Monetization Server Eyespot Monetization Component loads ad network API from selected network’s remote server and plays advertisement, as well as controls Media Player Once loaded into Partner Player, Component requests ads from Eyespot Monetization Server 1 2 4 Eyespot Monetization Server determines which ad network to use, based on performance metrics (eCPM, RPM, etc.) and selects best-fit ad network 3 Yume Google Tremor Adap.tv Media Player and ad event metrics are reported back to the Eyespot Monetization Server for aggregation, optimization, and reporting via Partner Dashboard 5 $

6. ScanScout Yume Google Tremor Adap.tv Browser Media Player Partner Web Page $ Component Play Server Ad Optimization Engine Reporting Dashboards Admin I/F RSS / Metadata Feed Play Request Network Component & metadata Ad Request with Metdata Network Ads Network Select Ad Request Optimization Business Rules Performance Metadata Ad-Network Player Components

7. Ad-Exchange Partners - Advertising Coverage

8. Use Exchange to Access All Ad-Networks

9. Or Traffic Ads Using Double-Click Platform Equinix - San Jose 15 Media Servers Capacity: 3.25Gigs Providers: MCI, AOL, Level3, AboveNet, Private peers Equinix – Ashburn 62 AdServers 30 Media Servers Capacity: 5 Gigs Providers: Sprint, AT&T, AboveNet, AOL, Private Peers AboveNet – NYC 62 AdServers 30 Media Servers Capacity: 5 Gigs Providers: AboveNet, Sprint, Level3, AOL, Private Peering Equinix – NJ 62 AdServers 15 Media Servers Capacity: 4 Gigs Provider: AT&T, Sprint, Abovenet, Private Peers MCI – Ashburn 62 AdServers / 15 Media Servers Capacity: 4 Gigs Providers: MCI, AT&T, Level3, Private Peers Equinix – Chicago 30 Media Servers Capacity: 3.15 Gigs Providers: Level 3, MCI, AOL, Private Peers CO - Thornton Backend System DoubleClick

10. International Ad-Serving Coverage 118 Ad Servers Japan - Tokyo 12 Ad Servers NTT Australia - Melbourne 5 Ad Servers Primus Sweden - Stockholm 24 Ad Servers Telia Germany - Frankfurt 20 Ad Servers TISCALI UK - London 20 Ad Servers Colt UK France - Paris 25 Ad Servers Tiscali Taiwan - Taipei 6 Ad Servers Seednet China - Hong Kong 6 Ad Servers HKNet

11. Eyespot Exchange Results - Advertising Demographics

12. By Media Channel

13. By Viewer

14. Eyespot Exchange Results - Advertising Performance

15. Advertising Revenue

16. Revenue per Stream (000’s) = RPM

17. Revenue by Ad-Type & Network *Over 30 day period (covered streams) $6.36 Overlay Scanscout $5.57 Overlay YuMe $12.00 Pre-Rolls Tremor $3.21 Overlay Google $3.47 Overlay Adap.TV RPM* Ad-Unit Ad-Network

18. Why An Exchange? Online Video Advertising Performance Varies by: Geography of viewer Video Content (premium vs. UGC) Video Duration (short vs. long form) Metadata (indexed or not) Ad-Unit Types (pre, post, overlay, interstitial) Advertising Inventory Availability Ad-Platform Stability

19. Why An Exchange?

20. Optimization Across All Ad Sources Exchange

21. The Video Personalization Network www.eyespotnetwork.com