YuMe Online Video Analysis

2. YuMe Online Video Analysis Creative best practices and media tactics for online video

3. What We Know About Online Video The State of Online Video To Repurpose, or not to Repurpose? • Online Video has performed above the industry standard for display advertising • Video has shown it can be more efficient than other formats on Awarenessand Brand Favorability • The narrative power of video lends itself well to creating relevant, distinctive, and emotionally resonate ads • The extent of branding power will rely on content quality, perceived value proposition, authenticity, and relevancy • The optimal content source to use will vary, dependent on each campaign’s goals • Repurposed TV spots can build on offline initiatives, further increasing awareness or messaging • Web original video content is most efficient at influencing perceptions and purchase decisions by providing useful information or entertainment value • Elements such as interactivity, video length, types of sites, targeting and delivery methods are strong differentiating factors in completion rates and achieving positive branding effects Source: DL /TubeMogul Industry Report: State of Online Video: http://www.dynamiclogic.com/docs/white-paper-pdfs/2011/03/22/whitepaper_dl_tubemogul_apr2010.pdf

4. In-stream video formats are typically more effective than in-banner formats Statistically significant difference between control and exposed group at a 90% confidence level Source: Dynamic Logic’s MarketNorms®, Full dataset through Q2/2012; In-Stream Videos N= 47 campaigns, n=60,842 respondents; In0Banner N= 447 campaigns, n= 478,655 respondents; Percent Impacted = Exposed - Control

5. In-stream video tends to outperform other media, especially in building awareness and favorability • In-stream videos are able to utilize narrative power of video to make a brand impact, within a highly visible placement * Statistically significant difference between control and exposed group at a 90% confidence level Source: Dynamic Logic’s MarketNorms®, Full dataset through Q2 2012. In-stream Video N = 47, n= 60,842 respondents; Rich Media N = 2,700, n= 3,078,725 respondents; Flash N = 2,720, n= 3,410,360 respondents. Percent Impacted = Exposed - Control

6. Interactivity enhances ad breakthrough and message takeaway • Interactive video elements are attention-grabbing, which promotes breakthrough and supports awareness building goals * Statistically significant difference between control and exposed group at a 90% confidence level Source: Dynamic Logic’s MarketNorms®, Last 3 Years, Q2/2012; Interactive N= 444 campaigns, n=432,206 respondents; Non-interactive N= 309 campaigns, n= 309,935respondents; Percent Impacted = Exposed - Control

7. Additional exposures help to build awareness, but do not necessarily build purchase intent • Other strategies, such as demo targeting and creative optimization, may ultimately be more productive strategies specifically to boost persuasion • This suggests some advertisers and agencies who are focused on persuasion may choose to frequency cap at lower exposure levels and instead maximize reach * Statistically significant difference between control and exposed group at a 90% confidence level Source: Dynamic Logic’s MarketNorms®, Last 3 Years, Q2/2012; Repurposed Video Frequency (1-2) N=84 campaigns, n=92,673 respondents; Repurposed Video Frequency (3+) N= 39campaigns, n= 44,367 respondents; Percent Impacted = Exposed – Control

8. Demo targeting helps repurposed creative deliver towards brand awareness and breakthrough goals • Conventional TV spots are typically produced with a specific demo target in mind, which may align well with digital demo targeting options * Statistically significant difference between control and exposed group at a 90% confidence level Source: Dynamic Logic’s MarketNorms®, Full dataset through Q22012. Video In- Demo Target N= 344campaigns, n= 241,355respondents; Video Not-in-demo target N = 282 campaigns, n = 309,070 respondents Percent Impacted = Exposed - Control

9. Short-form creative is typically more memorable, but long-form is better for awareness • Long-form videos may have an advantage in promoting certain brand goals such as brand awareness and messaging, but this advantage should be balanced against the lower completion rate and higher average cost for longer videos * Statistically significant difference between control and exposed group at a 90% confidence level Source: Dynamic Logic’s MarketNorms®, Full dataset through Q2/2012; Video: A/V Length (11-20 seconds) N=249campaigns, n=280,939respondents; A/V Length (21 - 30 seconds) N= 132campaigns, n= 147,692respondents; Percent Impacted = Exposed - Control

10. Questions to ask when deciding to use repurposed or web-original creative • Often, a decision to use a repurposed video creative is based purely on access: advertisers and agencies who have a TV asset will reuse it because of limitations in their budget or time to launch. • However, the campaign goals should also be considered when making creative choices Is there time/budget to create new content? No Yes Campaign goal? Align with offline/ Improve Breakthrough Build Awareness Increase Persuasion Develop original content Repurpose television content

11. Web original creative can be customized to align with specific placements or targeting tactics, improving perceived relevance which is a key driver of persuasion However, repurposed videos have an advantage in ad breakthrough, leveraging offline initiatives and prior familiarity with the ad Web original creative tends to perform better on most brand metrics, particularly persuasion * Statistically significant difference between control and exposed group at a 90% confidence level Source: Dynamic Logic’s MarketNorms®, Last 3 Years, Q2/2012; Overall Web Original N= 218 campaigns, n=220,681 respondents; Overall Repurposed N= 90campaigns, n= 102,273respondents; Percent Impacted = Exposed - Control

12. Media strategies for repurposed video creative The following chart is based on average in-market performance for repurposed videos and is intended as a guide to help advertisers and agencies optimize repurposed videos to reach specific campaign goals: Primary Campaign Goal In-stream vs. In-banner Interactivity Frequency Targeting Length Source: Dynamic Logic Market Norms., Q2 12. Please note that recommendations refer to typical video performance and are not intended as a guarantee of in-market performance.

13. Thorough branding is critical for campaign success • The stakes are high for repurposed videos, as insufficient branding can actually make a video significantly less persuasive * Statistically significant difference between control and exposed group at a 90% confidence level Source: Dynamic Logic’s MarketNorms®, Full dataset through Q2/2012; Repurposed Videos, Logo Presence (100%) N= 52 campaigns, n= 55,460respondents; Logo Presence (Partial) N= 37campaigns, n= 45,893 respondents; Percent Impacted = Exposed - Control

14. Creative strategies for repurposed video ads Advertisers and agencies seeking to reuse their television creatives may need to add elements to optimize for the online environment. Those looking to reduce video length (e.g., from :30 to :15), will need to carefully evaluate what to retain or remove. The following strategies may be helpful as guidelines for this process. keep: cut: add: Product shots and similar branded elements 3rd party or competitor brands that can cause confusion Static brand logos or branding on every frame Human presence, especially for niche audiences Secondary and other messaging (or move to interactive elements) Copy to complement voiceover messaging Primary messaging Content that is less emotional involving, particularly in the initial frames A strong call to action to take advantage of the online format Interactivity to promote audience engagement Source: Dynamic Logic Market Norms., Q2 12. Please note that recommendations refer to typical video performance and are not intended as a guarantee of in-market performance.