!

  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  

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

!   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

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-­‐
InteracBve   17%   Roll®      
Overlay   23%  
 12%  
Pre-­‐Roll   Pre-­‐Roll   InteracBve   Pre-­‐Roll  
Branded   64%   Overlay   45%  
66%  
Overlay   15%   InteracBve  
12%  
Overlay  
 25%  

Branded   Branded  
Overlay   Overlay  
4%   7%  

©  2007-­‐10  AdoTube,  Inc.  –  All  Rights  Reserved   4

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

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

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.  Interac;ve  Overlay  

1.20%  
1.00%  
0.80%  
0.60%  
0.40%  
0.20%  
0.00%  
2009   Q1  2010   Q2  2010   Q3  2010  
Branded   InteracBve  

©  2007-­‐10  AdoTube,  Inc.  –  All  Rights  Reserved   7

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

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  Reten;on  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  Reten;on  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

  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  Ver;cal  
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  

  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  Ver;cal   Overall  CTR  by  Ver;cal  

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  

 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  Interac;ve  Overlay  by  Ver;cal   CTR  for  Polite  Pre-­‐Roll®  by  Ver;cal  
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  

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
Engagement Rates: The percentage of people who interact with an ad that has interactive capabilities, such as,
playing a game, initiating an in-ad video, social engagement (i.e. Facebook), store locator, or data entry
Questions, Feedback, and Media Inquiries:
Ephraim Cohen – Cohen@fortexgroup.com

©  2007-­‐10  AdoTube,  Inc.  –  All  Rights  Reserved   13