© 2011-2012 DataXu, Inc. Privileged & Confidential 1

Drop your business cards on your way in.

Raffle at the end of the session to win a Bose headphone.

© 2011-2012 DataXu, Inc. Privileged & Confidential 2

Debunking the myths in Video Advertising

Mukund Ramachandran, GM, Brand

© 2012 DataXu, Inc. Privileged & Confidential 3

Consumer behavior has shifted

Consumer behavior, as it pertains to the consumption of video is fundamentally changing

TV-screen world, to a screen-agnostic world

We expect content in the most convenient screen, when we want it.

4© 2011-2012 DataXu, Inc. Privileged & Confidential

And online video advertising is hot!

2012: $1 in $12 online ad dollars.

2015: $1 in $6 online ad dollars.

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Myth No. 1

Video can’t scale

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“Online video doesn’t scale”

The Claim…

1.2 BILLION VIDEOS

Massive consumer adoption

89 MILLION PEOPLEIN THE UNITED STATESARE GOING TO WATCH

TODAYSource: comScore Video Metrix, December 2010

Source: comScore Video Metrix, December 2010

12-17 18-24 25-34 35-44 45-54 55-64 65+0

10

20

30

40

50

60

70

80

90

100

All demos online watch online video

© 2011-2012 DataXu, Inc. Privileged & Confidential

RTB video inventory landscape

RTB Pre-Roll Video Inventory Players:Adap.TV, Google, AdBrite,

LiveRail, BrightRoll, spotXchange

12BB IPMs / month; ability to provide impactful scale to any video campaign.

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Myth No. 2

Video isn’t ready for local

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“Video isn’t ready for local”

The Claim…

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Online video works at the local level

Challenge:

Local dealerships for a large Auto company wanted to convert their hyperlocal newspaper buy, into video. Previous efforts to buy sites direct did not achieve reach. The challenge was the capability and reach, to hit:• 86 DMAs• 86 regional budgets• 86 Geo-qualified monthly campaigns targeting auto-intenders

Results:Regional dealers were able to spend all of their ad dollars on impressions within their respective areas and achieved:• A single-sourced partner instead of going to multiple

partners for DMA buys• Zero dollars wasted on out-of-area impressions• Granular tracking, budgeting, and reporting options

custom to each DMA

DataXu Hyperlocal Video Case Study

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Myth No. 3

Video can’t be optimized like display

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Optimize your campaign across Video RTB

Seamless access to billions of exchange impressions per day.

Optimize for clicks, completions, acquisition & brand performance.

Access video inventory across 6 video RTB providers.

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Digital = Huge Opportunity

But Digital is for Direct

Response…

DX Brand Builds your

Brand, Using Digital

Traditional Branding

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EXPOSED95%

CONTROL5%

Clinical Trial Set-up Underlies the DX Brand Approach

PSA

YOUR AD

Aware

Unaware

Vote!

Somewhat Aware

Both groups are surveyed throughout the campaign

Exposed group is served your ad while control groups sees a public service announcement

Rigorous test set-up ensure valid findings

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DX Brand Builds Customer Intelligence

Know your Customers

Identify Opportunity

Compare Segments

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28.2%

22.3%

5.90%

0%

10%

20%

30%

Exposed Unexposed

Consumers favorable to brand had 2.3X better ROI

Fraction of Consumers Favorable

SuperTruck DX Brand effect on Favorability

Action rate by type of consumer (indexed)

SuperTruck DX Brand effect on sales

2.2MNewly Favorable Individuals

SuperTruck DX Brand campaign drove

favorability towards brand in 2.2M

consumers

Favorable consumers acted and visited

SuperTruck’s advertiser’s site 2.3X more

often

1.0X

2.3X

0.0

1.0

2.0

Not favorable Favorable

2.3XMore likely to act

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Myth No. 4

Online video is not cost-effective

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“The cost of online video is too expensive”

The Claim…

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Online Video provides has a robust ecosystem of providers

Premium Portals Ad Networks Exchanges

$20-$40 CPM $15-$35 CPM $10-$15 CPM $9-$12 CPM

Providing the advertiser with vastly differing scale for the same investment

Premium Portals Ad Networks Exchanges

$500,000 $500,000 $500,000 $500,000

3.3M Uniques

5X frequency

4M Uniques

5X frequeny

8M Uniques

5X frequency

10M Uniques

5X frequency

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DX3 – The Digital Marketing Management Platform for the Enterprise

Audience Management

Campaign Management

Insights and Reporting

Inventory Management

December 2011 Forrester Research Inc. report: “The Forrester Wave™: Demand-Side Platforms, Q4 2011” has recognized DataXu as a Leader with DX3 the Number 1 ranked current offering.

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Mobile, Video, Display and SocialBidded and Private Premium

Selected past and current direct inventory providers

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Access to ~100% of US exchange traded in-stream inventory, plus the ability to decision in private deals

Brand Safety

Full site transparency

Best in breed prospecting, targeting, retargeting and audience management

The DX Video Difference

25© 2011-2012 DataXu, Inc. Privileged & Confidential

By 2015, $1 in $6 online ad dollars will be spent in video. Advertisers who understand the ecosystem and use it efficiently will win.

Online video can provide impactful scale at the local level and be optimized for performance & brand metrics.

Online video is a cost-effective medium to achieve high ROI for performance & brand campaigns.

Debunking the myths!