YouTube Confidential and Proprietary AdIndex Advertising Effectiveness Research Provided for: May 7, 2008

YouTube Confidential and Proprietary Research Objectives & Methodology Campaign Objective: To affiliate with comedy programming and position Toyota Corolla as a brand for a young adults via sponsorship of YouTube Sketchies 2 Research Objective: To test campaign’s ability to increase persuasion metrics and brand attributes and determine if sponsorship of Sketchies 2 is a good fit for the brand Target Audience: A18-35 and 35-60; in-market for a vehicle within the next 2 years Research Details: Online interviews between 2/17 – 3/21/08 Banner Campaign: n=1,739 (662 control; 1,077 exposed) Contest In-Video Overlay: n=1,834 (1,726 control; 108 exposed) Control respondents were weighted to match the exposed sample

YouTube Confidential and Proprietary Creative Unit Examples Note: Creative screenshots are not to size “BassBump” “Blurry” “StatueSlalom”

YouTube Confidential and Proprietary Key Findings: Banner Campaign Banner advertising was able to increase Unaided Awareness for Toyota Corolla among the aggregate “Blurry” and “BassBump” creative themes increased share of mind for the brand Primary target audience of year olds in-market for a vehicle within the next 2 years also became more likely to mention the brand after campaign exposure –This younger target audience, however, was not convinced by the advertising of certain relevant Corolla attributes –Campaign increased agreement with the perception that Corolla has a quiet cabin among the secondary target of year olds in-market for a vehicle

YouTube Confidential and Proprietary Key Findings: Contest & In-Video Overlay In-Video Overlay advertising was very successful, with visitors more favorable towards and likely to consider purchasing the Corolla as well as having more favorable brand perceptions –This suggests the brand to be an appropriate sponsor of comedy Majority of visitors found the contest entertaining and intended both to revisit the contest area and recommending it to others

YouTube Confidential and Proprietary Key Findings: Additional Data Cuts Comedy is a great fit for the Toyota brand: when the results were segmented by comedy video fans the effects of the campaign were even stronger –This suggests that Toyota Corolla is an appropriate fit to sponsor comedy Campaign was further successful among other relevant audience segments: –Those planning on spending within the brand’s MSRP became more favorable towards the Corolla and likely to agree with brand attributes after exposure –Campaign also resonated among those considering purchasing 2 and 4- door compact cars

YouTube Confidential and Proprietary Contest & In-Video Overlay Results

YouTube Confidential and Proprietary Please Note: Exposure to In-Video Overlay ads is based on respondents’ recall of the video within which the ad ran and self- reported contest visitation. Therefore this data may not include all exposed respondents which may potentially impact results shown. Control group may not visit contests, potentially leading to differences between control and exposed groups. Understanding the Results That Follow *Statistically significant increase at 90% confidence level No statistically significant movement at 90% confidence level *Statistically significant decrease at 90% confidence level

YouTube Confidential and Proprietary In-Video Overlay Screenshots YouTube_Co-Branded_PartnerWatchComedy_InVideo_and_300x250

YouTube Confidential and Proprietary Exposed Sponsorship Respondents (n=108) Contest Visitors Composition: Age

YouTube Confidential and Proprietary Contest Visitors Composition: Gender Exposed Sponsorship Respondents (n=108)

YouTube Confidential and Proprietary Contest Visitors Composition: Income Exposed Sponsorship Respondents (n=108)

YouTube Confidential and Proprietary Contest Visitors Composition: In-Market Status Exposed Sponsorship Respondents (n=108)

YouTube Confidential and Proprietary Contest in-video overlay viewers had much higher scores for favorability and consideration of the brand –Impressively, 55% of contest visitors would consider purchasing a Corolla Sponsorship Respondents: Brand Metrics ControlExposed (n=108)(n=1726)

YouTube Confidential and Proprietary ControlExposed (n=108)(n=1726) Sponsorship Respondents: Brand Metrics Further notable, contest ad initiative viewers exhibited much higher agreement with tested attributes

YouTube Confidential and Proprietary Question: How likely are you to visit this YouTube Sketchies site again or recommend it to others? *Question asked in a slightly different manner than in normative data. 68% (Microsite Norm*:50%) 78% (Microsite Norm*: 59%) Sketchies contest was very popular, with the vast majority of respondents indicating that they intend to revisit and recommend the contest to others –Likelihood to revisit and recommend the area outperformed norms* Sponsorship Popularity: Recommendation + Intent to Visit ControlExposed (n=108)(n=1726)

YouTube Confidential and Proprietary 67% of contest visitors agreed that the contest gave them “a positive impression of Toyota Corolla” Visitors were most likely to state that the contest was entertaining 88% Sponsorship Popularity: Site Attributes ControlExposed (n=108)(n=1726)

YouTube Confidential and Proprietary Question: Did you or do you plan on doing the following on the YouTube Sketchies site? ControlExposed (n=108)(n=1726) Sponsorship Popularity: Site Activities Contest visitors were most likely to view submitted videos, followed by rating videos

YouTube Confidential and Proprietary 88% of all respondents thought it was appropriate or were neutral about Toyota Corolla’s sponsorship of Sketchies –The large neutral element is not surprising, as previous research has shown that people are reluctant to admit that advertising and sponsorships impact their opinions All Exposed Respondents (n=1,537) Majority of respondents were reported being neutral to Toyota Corolla’s sponsorship of YouTube

YouTube Confidential and Proprietary Banner Campaign: Audience Analysis Only those metrics and attributes that have shifted significantly or are related to main campaign objectives will be shown in this section. Results not shown can be found in the Excel appendix.

YouTube Confidential and Proprietary Sample Composition: Toyota Corolla target –Nearly half are in the target segments: in-market & within the desired age range *In-market defined as looking to purchase a vehicle within the next 2 years Exposed Respondents (n=1,077)

YouTube Confidential and Proprietary In Market Exposed Respondents (n=1,077) Age Exposed Respondents (n=1077) Sample Composition: In-Market –Vast majority of YouTube respondents fit into the target age groups; those not fitting into target audience was largely a product of in-market status Sample Composition: In-Market

YouTube Confidential and Proprietary Exposed Respondents who are In Market (n=606) 15% of the sample plan to spend the Toyota Corolla MSRP^ on their next vehicle Largest proportion plan on spending slightly less; $10,000 to $14,999 Sample Composition: By Next Vehicle Spend Amount

YouTube Confidential and Proprietary Exposed Respondents who are In Market (n=1077) Next Vehicle Type Most popular next vehicle type among the sample is a compact 4-door car Therefore, YouTube is a relevant site on which to advertise the Toyota Corolla

YouTube Confidential and Proprietary Exposed Respondents (n=1077) Sample Composition: Comedy Fans –The campaign reached comedy fans successfully: Vast majority of the sample watch comedy videos “Sometimes” or more often, with 43% claiming to do so frequently

YouTube Confidential and Proprietary Banner Campaign Results

YouTube Confidential and Proprietary Brand Awareness Metrics: Entire Respondent Set ControlExposed (n=1,077)(n=662) Banner campaign slightly increased share of mind for Toyota Corolla among the overall audience –Unaided Brand Awareness scores remain low and therefore still have room to grow in future campaigns

YouTube Confidential and Proprietary * Statistically significant difference between control and exposed group at a 90% confidence level Brand Attributes Metrics: Entire Respondent Set Brand attributes did not exhibit statistical movement Over half of control respondents agreed that Toyota Corolla “is fuel efficient,” a very relevant attribute considering the current importance of fuel efficiency ControlExposed (n=1,077)(n=662)

YouTube Confidential and Proprietary No statistical movement for persuasion metrics was achieved –Favorability for the brand was already relatively high prior to campaign exposure, making it difficult to “move the needle” Brand Persuasion: Entire Respondent Set ControlExposed (n=1,077)(n=662)

YouTube Confidential and Proprietary Brand Metrics: Results by Target Campaign effectively increased share of mind for Toyota Corolla among the primary target –Secondary target had a higher baseline for Unaided Awareness for the brand Target 1: 18-35, In Market Target 2: 36-60, In Market Not Target Ctrl (%)    Unaided Brand Awareness: First Mention Unaided Brand Awareness: Any Mention 3+3.7* * Online Ad Awareness Sponsorship Association Brand Favorability Purchase Consideration Sample Sizec=231; e=377c=85; e=142c=346; e=558

YouTube Confidential and Proprietary Only lift was among the secondary target, where advertising improved the perception that the model has “a quiet cabin” –Unfortunately, primary target was not convinced by the campaign of certain Corolla features Consider optimizing creatives in order to more explicitly communicate these very relevant features among the younger target group Target 1: 18-35, In Market Target 2: 36-60, In Market Not Target Ctrl (%)    Has a luxurious interior Has a quiet cabin *260.0 Has an advanced sound system * Has refined styling Is fuel efficient (good miles per gallon) Is technologically advanced * Provides a smooth ride Sample Sizec=231; e=377c=85; e=142c=346; e=558 Brand Metrics: Results by Target

YouTube Confidential and Proprietary Advertising was persuasive among a key audience of those planning to spend $15k-$25k Campaign messaging positioning the model as affordable may have led to higher spenders reducing their share of mind for the model Less than $14,999 $15,000 to $24,999 $25,000 or more Ctrl (%)    Unaided Brand Awareness: First Mention * Online Ad Awareness * Sponsorship Association Brand Favorability * Has a quiet cabin * Provides a smooth ride * Sample Sizec=151; e=212c=94; e=190c=93; e=154 Brand Metrics: Results By Next Vehicle Spend Amount

YouTube Confidential and Proprietary Brand Metrics: Results By Next Vehicle Type Banner advertising effectively increased favorability for the Toyota Corolla among those considering a compact 2- door vehicle –Baselines for metrics were already higher among those considering a compact 4-door vehicle Compact 2- door car Compact 4- door car CoupeHybrid Ctrl (%)     Unaided Brand Awareness: First Mention * Unaided Brand Awareness: Any Mention * Online Ad Awareness * * Sponsorship Association Brand Favorability * Purchase Consideration Sample Sizec=90; e=114c=162; e=272c=55; e=128c=101; e=169

YouTube Confidential and Proprietary Brand Metrics: Results Among Comedy Fans Frequent comedy viewers became more likely to mention Corolla after exposure Campaign also successfully increased agreement with the fuel efficiency attribute among casual comedy viewers These results, as well as contest in-video overlay results, imply comedy being a good fit for the brand FrequentlySometimesRarely/Never Ctrl (%)    Unaided Brand Awareness: First Mention Unaided Brand Awareness: Any Mention 3+3.6* Online Ad Awareness Brand Favorability Is fuel efficient (good miles per gallon) * Sample Sizec=305; e=460c=244; e=460c=113; e=157

YouTube Confidential and Proprietary Competitive Analysis

YouTube Confidential and Proprietary Competitive Analysis Brand Metrics Toyota Corolla has a stronger position in the marketplace than the Hyundai Elantra and the Nissan Sentra Control scores for Honda Civic were slightly higher than for the Toyota Corolla Toyota Corolla Honda Civic Hyunda i Elantra Nissan Sentra Ctrl (%) Unaided Brand Awareness: Any Mention4511 Online Ad Awareness Sponsorship Association4403 Brand Favorability Purchase Consideration Sample Sizec=662; e=1,077

YouTube Confidential and Proprietary Creative Analysis Only those metrics and attributes that have shifted significantly or are related to main campaign objectives will be shown in this section. Results not shown can be found in the Excel appendix.

YouTube Confidential and Proprietary Creative Evaluation Areas of Success Include: Brand name and logo are present in all frames Ads are clear and uncluttered Product is featured in all frames of the creatives Areas for Improvement Include: Displaying the Corolla model name more prominently would help further associate the creative with the brand Moving logo to the left hand side of the creative has been shown to add to campaign success Consider moving “ live the dream for less coin” messaging earlier to ensure the advertising is not being tuned out prior to its presentation Note: Evaluation based anecdotal comments and Dynamic Logic’s best practices for online advertising. Creative screenshots are not to size. “Fountain”

YouTube Confidential and Proprietary Brand Metrics: By Creative Execution “Blurry” and “BassBump” helped increase awareness, although awareness scores are low “BassBump” theme did not convince viewers of the advanced sound system As sound on this creative was optional, the overall message was likely lost on those viewing without turning on sound –Consider maximizing creative to better communicate the advanced sound system feature without need for sound BlurryStatueSlalomBassBump Ctrl (%)    Unaided Brand Awareness: First Mention * Unaided Brand Awareness: Any Mention 4+2.8* * Online Ad Awareness Sponsorship Association Brand Favorability Has an advanced sound system * Sample Sizec=662; e=578c=662; e=101c=662; e=102

YouTube Confidential and Proprietary Recommendations Continue to sponsor comedy content on YouTube –Comedy viewers were very receptive to the banner campaign –Largest proportion of YouTube respondents are considering compact-4 door vehicle for their next purchase –Furthermore, Sketchies 2 contest was found to be entertaining and the brand’s in-video overlay sponsorship advertising of the contest led to notable success for the brand Consider optimizing creative executions in order to more explicitly communicate relevant features of the brand being technologically advanced and having an advanced sound system for the younger target audience Primary target audience was not convinced of certain relevant Corolla attributes “BassBump” creative did not effectively communicate the Corolla’s advanced sound system –Allowing ad to communicate this feature without the necessity of sound could be beneficial

YouTube Confidential and Proprietary Appendix A: Methodology, Definition of Metrics, and Explanation of Statistical Testing

YouTube Confidential and Proprietary Uses a control-exposed methodology that measures the branding value of online ad campaigns as they run live across the site. Two groups are simultaneously sampled and their responses compared. Banner Campaign Methodology Simultaneous * Both groups are random samples from the same population (they are statistically the same people) Control* Did they see the campaign? Yes No Both groups are surveyed at the SAME time about their attitudes toward the brand in the creative Do the results indicate a difference? Yes Since the only statistical difference between groups A and B is the presence of the creative, we can attribute the lift to the creative A B Exposed*

YouTube Confidential and Proprietary Pre-control/exposed methodology: –Dynamic Logic recruits from ROS and Search areas before the start of the contest to collect control –Exposed respondents are recruited from the ROS and Search areas as well, once the contest is live The video with the advertising is added to the survey, asking respondents whether or not they have seen it Respondents marking they have seen video with advertising will be cleaned out of the control group, and exposed to contest advertising will be those marking they have seen the video and having reported visiting the contest area Have you seen the following video/ad? In-Video Contest Overlay Methodology

YouTube Confidential and Proprietary Brand Awareness Measures the level of familiarity respondents have with the brand (aided and unaided) Sponsorship Association Measures the extent to which respondents can match the messages and/or concepts in the creative to the brand Brand Favorability Measures the extent to which respondents have a positive or favorable opinion of the brand How do you measure where consumers are in the continuum? First, consumers need to be aware of a brand Then they need to understand the value to them, or what the product is used for The consumer forms an opinion about the brand Finally, the consumer decides whether he or she is likely to purchase the brand Purchase Consideration Measures the likelihood of respondents to purchase the brand in the future The Hierarchy of Advertising Effects

YouTube Confidential and Proprietary Definition of Awareness Metrics Unaided Brand Awareness - Measures respondents’ top-of-mind or unprompted awareness of the Corolla Question: When thinking of 4-door compact cars, what brands come to mind? Online Ad Awareness - Measures the extent to which respondents recall seeing Toyota Corolla advertised online Question: Which of the following 4-door compact cars have you seen advertised online in the past 30 days? Sponsorship Association – Measures the extent to which respondents can match the sponsorship to Toyota Corolla versus its competitors Question: Which of the following 4-door compact cars, if any, is the sponsor of YouTube Sketchies... A Sketch Comedy Contest? --Survey screenshots available upon request--

YouTube Confidential and Proprietary Definition of Persuasion Metrics and Brand Attributes Brand Favorability – Measures respondents’ opinion of Toyota Corolla Question: How would you describe your overall opinion about each of the following 4-door compact cars? Purchase Consideration – Measures respondents’ likelihood to purchase Toyota Corolla in the future Question: Next time you are looking to purchase or lease a new vehicle, how likely are you to consider each of the following 4-door compact cars? --Survey screenshots available upon request--

YouTube Confidential and Proprietary Definition of Persuasion Metrics and Brand Attributes Brand Attributes - Measures respondents’ agreement with certain attributes as they relate to Toyota Corolla Question: Please indicate how strongly you agree or disagree with the following statements about the Toyota Corolla. Toyota Corolla… –Has a quiet cabin –Has A luxurious interior –Provides a smooth ride –Has refined styling –Is fuel efficient (good miles per gallon) –Is technologically advanced –Has an advanced sound system --Survey screenshots available upon request--

YouTube Confidential and Proprietary Scoring Methodology AnswerValueScore (%) Have Heard Of / Seen1100% Have Not Heard Of / Seen00% Not Sure00% Aided Brand Awareness & Online Ad Awareness Brand Favorability & Purchase Consideration AnswerValueScore (%) Very X1100% Somewhat X1100% Neutral00% Somewhat Not X00% Very Not X00% AnswerValueScore (%) Tested Brand1100% Competitor 100% Competitor 200% Competitor 300% None of the above00% Don’t know00% Sponsorship Association Brand Attributes AnswerValueScore (%) Strongly Agree1100% Somewhat Agree1100% Neither Agree nor Disagree 00% Somewhat Disagree00% Strongly Disagree00%

YouTube Confidential and Proprietary MarketNorms Normative Comparison Dynamic Logic’s MarketNorms database contains results from over 3,600 AdIndex studies Provides benchmarks of campaign performance for each of the standard brand metrics Performance may be compared against Overall norms (includes all studies) or against category norms* Performance Ranking Based on Distribution of Delta Scores for Metric X Distribution of Delta Scores for Metric X Percentile Percentile Percentile Percentile Where in the distribution does your campaign rank? - Delta + Delta * Category norm availability dependent on sample size of campaigns tested within the industry vertical Average Below Average Above Average Excellent

YouTube Confidential and Proprietary Statistical Testing of Difference Between Two Groups (1/2) A finding is described as significantly different in statistical terms, when it can be demonstrated that the probability of obtaining such a difference between groups by chance only, is relatively low Dynamic Logic employs a two-tailed t- test to determine whether the difference between scores across two groups is a result of exposure to the campaign or due to chance A significant result in a Dynamic Logic report means that there is only a 10% chance that the measured difference between two groups would occur in a random sample if the two groups were not truly different in the entire population ControlExposed Delta (  ) %S.E.% Metric X 85%+/- 3.5%95%+/- 2.2%+10 n= In statistical terms, we use the Delta scores within our sample to test the null hypothesis (H 0 ) that the true difference between groups who did or did not have the opportunity to see the campaign is equal to zero * S.E. stands for standard error Distribution of Control & Exposed Scores Percent From our results, how confident are we that the true difference between those who were exposed to the campaign and those who were not is greater than zero? 0 -D+D Difference could be the result of sampling error Accept H 0 if –D < Delta < +D Reject H 0 if Delta < -D Reject H 0 if Delta > +D

YouTube Confidential and Proprietary Statistical Testing of Difference Between Two Groups (2/2) Determinants of statistical significance (how range between –D and +D is calculated): 1)Difference between groups: Delta () 2)Variability within groups: Standard error of difference Variability and Statistical Significance: Given two situations that share the same degree of difference between control and exposed cells, the difference in the low variability case appears to be more distinct -There is relatively little overlap between distribution of scores between the control and exposed groups – this scenario has a higher likelihood of being statistically significant What determines the variability of groups? 1)Sample sizes – the larger the number of respondents surveyed within each group, the more certain we are that survey results reflect true population proportions 2)Dispersion of scores within groups – the greater the degree to which respondents answer similarly for each metric, the lower the dispersion and greater our ability to predict true population proportions For example, if 99% of respondents answered they are aware of Brand A, we are more certain that we could accurately predict what awareness of Brand A is among the total population than if only 50% of respondents answered they were aware DeterminantsLikely Statistical Outcome Low Variability / Low Standard Error Larger sample sizes; and/or Low dispersion across scores Significant High Variability / High Standard Error Smaller sample sizes; and/or High dispersion across scores Not Significant

YouTube Confidential and Proprietary Appendix B: Additional Profiles & Analyses

YouTube Confidential and Proprietary Brand Metrics: By Frequency of Comedy Video Viewership Frequently, Sometimes Rarely, Never Ctrl (%)   Unaided Brand Awareness: First Mention Unaided Brand Awareness: Any Mention 4+2.7*5+0.3 Online Ad Awareness Sponsorship Association Brand Favorability Purchase Intent Provides a smooth ride Sample Sizec=549; e=920c=113; e=157 Comedy viewers became more likely to think of Toyota Corolla after banner campaign exposure

YouTube Confidential and Proprietary Exposed Respondents (n=1077) Majority of sample were exposed ten or more times Sample Composition: Frequency of Exposure

YouTube Confidential and Proprietary Banner campaign was efficient at communicating the vehicle’s fuel efficiency Ten or more exposures were necessary to increase Unaided Awareness for the Toyota Corolla Ctrl (%) Exp (%)    Unaided Brand Awareness: First Mention Unaided Brand Awareness: Any Mention * Online Ad Awareness Brand Favorability Purchase Consideration Is fuel efficient (good miles per gallon) * Sample Size Brand Metrics: By Frequency of Exposure

YouTube Confidential and Proprietary Exposed Respondents (n=1077) Household Income Sample Composition: HHI and Gender Gender

YouTube Confidential and Proprietary Percentile Ranking of Delta (  ) Aided Brand Awareness Online Ad Awareness Brand Favorability Purchase Intent AdIndex Score: Normative Benchmarking of Brand Metric Deltas* * MarketNorms Q3/07 (Category: Automotive, Baseline Adjusted, N=202 campaigns) Below AverageAverageAbove AverageExcellent

YouTube Confidential and Proprietary Exposed Respondents who are In Market (n=1,077) Sample Composition: In Market Decision Makers

YouTube Confidential and Proprietary Exposed Sponsorship Respondents (n=108) Sample Composition: Reason for Visiting Sketchies 2