YuMe Online Video Analysis CREATIVE BEST PRACTICES AND MEDIA TACTICS FOR ONLINE VIDEO

3 What We Know About Online Video Source: DL /TubeMogul Industry Report: State of Online Video: pdfs/2011/03/22/whitepaper_dl_tubemogul_apr2010.pdfhttp:// pdfs/2011/03/22/whitepaper_dl_tubemogul_apr2010.pdf 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 Awareness and 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

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

In-stream videos are able to utilize narrative power of video to make a brand impact, within a highly visible placement 5 In-stream video tends to outperform other media, especially in building awareness and favorability * Statistically significant difference between control and exposed group at a 90% confidence level Source: Dynamic Logic’s MarketNorms ®, Full dataset through Q 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 * 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= 309,935 respondents; Percent Impacted = Exposed - Control Interactive video elements are attention-grabbing, which promotes breakthrough and supports awareness building goals

7 Additional exposures help to build awareness, but do not necessarily build purchase intent * 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= 39 campaigns, n= 44,367 respondents; Percent Impacted = Exposed – Control 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

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

9 Short-form creative is typically more memorable, but long-form is better for awareness * 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= 249 campaigns, n= 280,939 respondents; A/V Length ( seconds) N= 132 campaigns, n= 147,692 respondents; Percent Impacted = Exposed - Control 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

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? Repurpose television content Campaign goal? Develop original content No Yes Build Awareness Increase Persuasion Align with offline/ Improve Breakthrough

11 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= 90 campaigns, n= 102,273 respondents; Percent Impacted = Exposed - Control 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

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. Building Awareness In-stream with companion Add interactivity Maximize frequency at or above 3 exp. Demo target30 sec Achieving Breakthrough/ Communicating Messaging In-stream with companion Add interactivity Maximize frequency at or above 3 exp. Demo target15 sec Increasing Persuasion In-stream with companion or in-banner Add interactivity Frequency cap to 1, focus on reach Demo target30 sec

13 Thorough branding is critical for campaign success * 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= 55,460 respondents; Logo Presence (Partial) N= 37campaigns, n= 45,893 respondents; Percent Impacted = Exposed - Control The stakes are high for repurposed videos, as insufficient branding can actually make a video significantly less persuasive

14 keep:cut: 3 rd party or competitor brands that can cause confusion Product shots and similar branded elements Human presence, especially for niche audiences Secondary and other messaging (or move to interactive elements) Primary messaging Content that is less emotional involving, particularly in the initial frames add: Static brand logos or branding on every frame Copy to complement voiceover messaging A strong call to action to take advantage of the online format Interactivity to promote audience engagement 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. 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.