Quarterly index reviewing trends & data of the video advertising space.

1. Q2 2010
Format Index
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2. Q2 2010
AdoTube In-Video Ad Format Index
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 and Q2 2010, with some preliminary Q3
estimates.
Procedure:
We collected and analyzed data from a sample of 1.2 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®
Additional testing of Polite Pre-Roll vs Standard Pre-Roll was conducted as blind A/B
Testing over 5 Campaigns.
The following numbers are based on results derived from AdoTube’s Network only and
do not represent the in-video ad space as whole.
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3. Key Takeaways
The Power of Interactive Ads
1. Interactive ad format grew from 12% to 33% of ads served by AdoTube from ‘09 to ‘10
2. The adoption of interactive ad formats has resulted in a significant increase of 59% in
AdoTube’s overall average CTR from ‘09 to ‘10
3. Interactive overlays are 83% more effective at driving click-throughs than are branded
overlays
4. Testing showed that Polite Pre-Roll® viewers who are interested in an advertisement will
be more likely watch through the entire ad and 133% more likely to click-through.
Additionally, allowing viewers to hide the ad results in 36% lower abandonment rates for
publishers
5. Overall, CTR growth for standard pre-rolls has remained stagnant, but the CTR growth
for Polite Pre-Roll® has risen dramatically as it has been rolled out. It is expected to
jump 133% from Q2 to Q3 2010, becoming 63% higher than the standard pre-roll
6. The Polite Pre-Roll® has shown a 7% higher retention rate, meaning that those who
begin to watch a Polite Pre-Roll® ad are 7% more likely to watch through the whole ad.
Additionally, those who choose to dismiss the ad are able to watch their video with
overlay reminders, while those who leave a Standard Pre-Roll are abandoning the video
stream as well
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4. Diversification of Interactive Formats
As we have continued to expand, we have been introducing interactive formats to help
diversify in-video advertising opportunities. This has been good for both advertisers and
publishers as demonstrated by significant growth over the past number of months.
On average, Interactive Formats (Polite Pre-Roll® and Interactive Overlay) have grown
steadily from 12% in 2009 to 33% of ads served so far in 2010.
Q1 2010 Q2 2010 Q3 2010
Polite Pre-
Polite Pre-
Roll® Interactive
Roll® Polite Pre-
11% Overlay Roll®
17%
12% 25%
Interactive
Branded Overlay
15% Pre-Roll
Overlay
54% Interactive
Pre-Roll 12% Pre-Roll
64% Overlay
65%
17%
Branded
Overlay
4% Branded
Overlay
4%
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5. Overall Growth in Interactive Formats leads to
Higher CTR
Diversification into more interactive ad formats from 2009 to 2010 has led to a
59.3% higher Overall CTR. Based on preliminary estimates, the Q3 CTR should
go up 72% over Q2.
Overall CTR
2.00%
1.80%
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2009 Q1 2010 Q2 2010 Prelim. Q3
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6. CTR Interactive Overlay vs. Branded Overlay
Specifically isolating interactive overlays vs. branded overlays,
interactive overlays are 83% more effective in driving click-throughs.
Branded vs. Interactive Overlay
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2009 Q1 2010 Q2 2010
Branded Interactive
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7. A/B Testing Results
Standard Pre-Roll vs. Polite Pre-Roll®
While rolling out our Polite Pre-Roll® format, we worked with select
advertiser to perform isolated A/B Testing over 30 million servings in
order to see how the less intrusive Polite Pre-Roll® stacks up against
the Standard Pre-Roll. We found:
While less viewers watched 25% of the Polite Pre-Roll® 3% more
viewers actually chose to watch through the end of the ad
Ad Format View-Thru Rate (25%) View-Thru Rate (100%)
Polite Pre-Roll® 46.3% 37.1%
Standard Pre-Roll 54.5% 36.0%
The Polite Pre-Roll® has A 133% higher CTR. (3.76% vs. 1.61%)
The Polite Pre-Roll® showed a 36% lower video abandonment rate
Results: Viewers who are actually interested in the advertisement will
be more likely watch through the entire ad and click-through with the
Polite Pre-roll®. Additionally, it lowers abandonment rates for
publishers by allowing viewers who are not interested to hide the ad.
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8. Actual CTR:
Standard Pre-Roll vs Polite Pre-Roll®
CTRs for Polite Pre-Roll® have steadily increased as they are rolled out,
while the standard pre-roll CTR has remained fairly constant. With the
official PPR announcement, the number of ads served will increase and
the CTR is expected to jump. Preliminary Q3 results show a 133%
jump, yielding a 63% higher CTR than Standard Pre-Rolls.
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2009 Q1 2010 Q2 2010 Prelim. Q3
Standard Pre-Roll Polite Pre-Roll®
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9. Actual View-Through Rate:
Standard Pre-Roll vs Polite Pre-Roll®
While the number of Polite Pre-Rolls® served increases, we expect to see a closer view-
through rate to our A/B testing. As for now, it is interesting to note that we are still
seeing a 7% higher retention rate on the Polite Pre-Rolls®. This showcases how the
Polite Pre-Roll® is a better option to keep a viewer’s attention if they are interested in
the ad. Additionally, if a viewer decides to dismiss the Polite Pre-Roll®, they will still see
overlay reminder messaging throughout the video. For standard pre-roll, a viewer who
does not watch through all of the ad has generally left the video entirely.
POLITE PRE-ROLL®
Quarter View-Thru Rate (25%) View-Thru Rate (100%) Ad Retention Rate
2009 Total N/A N/A N/A
Q1'2010 Total 48.64% 37.24% 76.56%
Q2'2010 Total 47.60% 34.10% 71.64%
Q3'2010 Total 49.40% 37.71% 76.34%
Average 48.50% 36.71% 74.85%
STANDARD PRE-ROLL
Quarter View-Thru Rate (25%) View-Thru Rate (100%) Ad Retention Rate
2009 Total 59.03% 43.77% 74.15%
Q1'2010 Total 57.57% 41.43% 71.96%
Q2'2010 Total 58.48% 42.65% 72.93%
Q3'2010 Total 56.51% 42.11% 74.52%
Average 57.77% 42.74% 73.39%
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10. About AdoTube & Definition of Terms
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
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