Presentation from LOGIN in Lithuania, March 2011. The presentation itself can be found at Youtube: http://www.youtube.com/watch?v=8hCU0Lg7GQk Feel free to borrow slides, but please credit.

1. Viral is dead, online video is born

2. Agenda

3. About goviral Company Info: Founded 2005 (acquired by Aol for 96,7 mil USD in Jan 2011) 90+ Employees Offices in London, Munich, Paris, Madrid, Stockholm & Copenhagen Global reach (Distribution in 90 countries) Network Info:20,000+ videos launched 18,000+ active paid publishers 24 verticals Transactions:30+ million targeted views monthly Engage over 1+ million consumers every day 365+ million unique users Technology: Proprietary analytics, distribution and player technology

4. What we do Guaranteed engagement Our audience Your videos 20,000 content partners Longer form videos +30s Pay for performance only

5. goviral is a global video content distribution network Video as the social glue

6. It’s an attention economy A wealth of information creates a poverty of attention” - Herbert Simon, 1971

7. Hyper fragmentation Television’s top rated show twenty years ago, the Cosby show, reached 27% of the population every week. Today’s top scorer, American Idol, reaches less than 9%. - Anthony Young, CEO Optimedia Brand Media Strategy, 2010

8. The status of video with consumers Source: Universal McCann – Wave 1-4 studies (2006, 2007, 2008 and 2009) According to the largest continuous online study, UM’s Wave program, global online video penetration grew from 32% to 82% between 2006 and 2010. Wave 1 15 markets 7,500 users Wave 2 21 markets 10,000 users Wave 3 29 markets 17,000 users Wave 4 38 markets 23,000 users Wave 5 53 markets 37,000 users

9. Online video consumption Average online video viewing in Europe/US in December 2010 was 15,4 hours The online video audience is still younger than the average web user

10. Video builds conversation % of total goviral views delivered from within Facebook 12,5% 3,8% 0,1 % Dec 09 Jun 10 Dec 10 Facebook is not like a website, rather it is a platform for almost 600m individual long tail publishers… and it is taking +10% of their time.

11. Consumers understand the game Online there has to be a value exchange between brand and consumer

12. goviral is a global video content distribution network Viral is dead, online video is born

13. The evolution in online video 2005 - 2008 2008 - 2010 2010 -

15. Engaging

16. Memorable

18. Participation from users

19. Shareable

20. Non-linearity

21. Real time feedback

22. Buying modelThe basics of good content is not changing, but we need to adopt to a new medium

23. Thinking in multiple formats Tutorial & Product Brand narratives Strong TV style ads Episodic Content Interactive Video Branded content Learning Awareness Engagement

24. T-mobile: Life’s for sharing Collaborative content to generate publicity

25. T-mobile: Life’s for sharing Proving its worth over time Dance Sing along Welcome back Jan 2009 May 2009 Oct 2010

26. T-mobile: Life’s for sharing Results of the “life’s for sharing” activities Over 45 million total views on Youtube A total of 760 videos published over the last 2 years 52% increase in sales YOY 43 Facebook groups Shared on over 2500 blogs *Source: The Ambient Advert titled 'Dance' Case Study by Mediacom

27. goviral is a global video content distribution network Video as a format

28. The evolution in online advertising The driver The format Access Broadband Rich media + search Static display Audiovisual Experience (content) The front line Reach Performance Brand 1996-2001 2008- 2003-2007

29. Video vs display CTR rate 0,6% Video CTR 1,7% 0,5% 0,4% Display CTR 0,35% 0,3% Display CTR 0,22% 0,2% Display CTR 0,13% 0,1% *Source: Adtech and Forrester – End of year 2009 2004 2005 2006 2007 2008 2009 2010 In 6 years European CTR rates on banners across all formats have dropped 60% from 0,35% in 2004 to 0,13% in 2010

30. Delivering superior performance Videos, properly submitted, are 53 times more likely to generate a first page Google ranking than traditional SEO techniques Forrester Report, 2010 Video ads are on average 4-7 times more effective than other display formats in engaging a user. Double click & Dynamic Logic 2009

31. Cadbury Chocolate charmer First effectiveness study in FMCG of TV, online and online video Campaign: Chocolate Charmer Launch Date: 9th April 2010 End Date: 3rd June 2010 Distribution: TV, online, online video Summary: While delivering a return on investment of £3,71 for every £1 spend, online video also added a 19% incremental reach for the campaign. The majority of people – nearly two out of three – who saw the ads online did not see them on TV. Cadbury's 'Chocolate Charmer' campaign was tracked by the Media Efficiency Panel Source: www.marketingmagazine.co.uk

32. The current video opportunity US online display ad spending, by format, 2009-2014 % of total and billions Source: eMarketer, May 2010 Be ahead of the curve…

33. goviral is a global video content distribution network If content is king, distribution is queen

34. Automotive videos on Adage top 10

35. Viral is dead * Fun theory spent a total of 9 weeks on the list, primarily in 2009.

36. The competition for attention Dec 2010 35 hours of content every minute. 200,000 videos per day Better content More content There is both increasing horizontal and vertical growth in video content. All this is increasing competition for the users attention

37. The shift in commercial model TRADITIONAL ONLINE MODEL BRANDED CONTENT MODEL Content activation Display activation - Content/CPV - Activate as content - Take content to the user - Banners/CPM - Activate as ads - Drive to campaign site Rather than distributing video on a traditional CPM/display basis, goviral adopt a content activation model – delivering a guaranteed number of click to play views upfront.

38. Long tail distribution The vertical “long tail” The vertical champions The global top 20 The national champions 30% 70% 71% of all views goviraldeliver originates from outside our top 20 publishers * Based on 205,5 mil targeted video views over the last 12 months tracked through goviral analytics

39. The difference in engagement Goviral network stats are consistently outperforming the market in both content and commercial placements - Goviral stats are based on last 12 months, 200mil view sample - Youtube stats based on stated averages for Promoted videos and True view - Click to play rates for video ads are from Adtech global CTR rates survey, Nov 2009 - View to end average for video ads are combined total from different lengths of Brightcove/Tubemogul 2010 study. - CTR average for market is from stated Unruly Media / Tubemogul averages

40. Enhance experience and sharing Design Social Sharing Social sharing with all blog formats and social media Fully customizable design, accept 3rd party graphics Embed & Download Interactive Player 3rd Party Integration Ratings & Comments Send users to relevant destinations such as website or Facebook Video overlays to enhance user experience and drive interaction Track +100 metrics and embed 3rd party tracking See user ratings and comments

41. Engagement = Actions? Video Actions Video action rate is measured as the number of unique video actions for every 1,000 views.

42. Video action rate Video Action Rate Progression GV Interactive Videos Released Facebook Like Released Source: goviral analytics Video Action Rates has been increasing YOY as players are further optimized for sharing

43. LG OptimusCase Study 200-400% increase in video actions across all markets Video Actions by Country Source: goviral Analytics *Source: Standard video rates based on average network numbers

44. goviral is a global video content distribution network Working strategically with distribution

45. The Online Evolution 2000-2007 2008-09 2010-2012 Nokia get’s first real online video successes with “Get out and play” and “Bruce Lee” gathering 5-10mil views Nokia is slowly moving to digital, but remains largely traditional in choice of formats Nokia’s creation teams are adopting increasingly strategic models for working with content and distribution.

46. The distribution approach Always On Traditional Campaign Activity Peak n’ Valley: Traditional Campaigns run in bursts with 3-6 months interval. It takes a large effort and budget to build up the level of momentum after each valley. Always On: The idea for online video is to build an activity that is always on. Nokia can achieve this by planning to continuosly distribute content across hundreds of websites.

47. “We want to take a dandelion approach to content. Instead of aiming to create that one amazing viral in a year, we want to create 365 potential candidates” Daniel Goodall Senior marketing manager, Nokia

49. Different end frames

51. Pay per view

52. Guaranteed engagementDistribution

53. Nokia N8 The way to introduce a new phone

54. Thinking strategically about content & distribution Branded content Engagement Product & tutorial films Interest Overlays & interactivity Action Nokia destination pages Post click

55. Implications for planning From one ad to many content formats (A dandelion approach to content) Audience Creative concepts can come from many sources (bothtraditional and from new ”crowd” sources) Content Long tail distribution in relevant channels (The difference canbemeasured in engagement..!) Media Establish benchmarks for each part of funnel (Brand goals, action goals and conversion to community/action) Analytics