The document debunks common myths about online video advertising. It discusses how online video advertising can scale massively, be used for local campaigns, and be optimized like display advertising. Examples are provided showing how a major automaker successfully ran hyper-local video campaigns across many regions. Data is also presented demonstrating how optimizing video campaigns for consumer favorability led to 2.3x better ROI. The document promotes the benefits of the DataXu platform for managing online video, mobile, display, and social campaigns across exchanges and direct inventory sources.

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 1

2. Debunking the myths in
Video Advertising
Mukund Ramachandran, GM, Brand
© 2011-2012 DataXu, Inc. Privileged & Confidential 2

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.
© 2012 DataXu, Inc. Privileged & Confidential 3

4. And online video advertising is hot!
 2012: $1 in $12 online ad dollars.
 2015: $1 in $6 online ad dollars.
© 2011-2012 DataXu, Inc. Privileged & Confidential 4

5. Myth No. 1
Video can’t scale
© 2011-2012 DataXu, Inc. Privileged & Confidential 5

6. The Claim…
“Online video doesn’t scale”
© 2011-2012 DataXu, Inc. Privileged & Confidential 6

7. Massive consumer adoption
89 MILLION PEOPLE
IN THE UNITED STATES
ARE GOING TO WATCH
1.2 BILLION VIDEOS
TODAY Source: comScore Video Metrix, December 2010

8. All demos online watch online video
100
90
80
70
60
50
40
30
20
10
0
12-17 18-24 25-34 35-44 45-54 55-64 65+
Source: comScore Video Metrix, December 2010

9. 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.
© 2011-2012 DataXu, Inc. Privileged & Confidential

10. Myth No. 2
Video isn’t ready for local
© 2011-2012 DataXu, Inc. Privileged & Confidential 10

11. The Claim…
“Video isn’t ready for local”
© 2011-2012 DataXu, Inc. Privileged & Confidential 11

12. Online video works at the local level
DataXu Hyperlocal Video Case Study
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
© 2011-2012 DataXu, Inc. Privileged & Confidential 12

13. Myth No. 3
Video can’t be optimized
like display
© 2011-2012 DataXu, Inc. Privileged & Confidential 13

14. Optimize your campaign across Video RTB
Access video inventory across 6
video RTB providers.
Seamless access to billions of
exchange impressions per day.
Optimize for
clicks, completions, acquisition &
brand performance.
© 2012 DataXu, Inc. Privileged & Confidential 14

15. 15

16. Clinical Trial Set-up Underlies the DX Brand Approach
Rigorous test set-
up ensure valid
findings
Exposed group is
Aware served your ad while
Somewhat
Aware control groups sees
Unaware
a public service
Vote!
announcement
Both groups are
PSA
surveyed throughout
the campaign
16

17. DX Brand Builds Customer Intelligence
Know your
Customers
Identify
Opportunity
Compare
Segments
17

18. Consumers favorable to brand had 2.3X better ROI
 SuperTruck DX Brand campaign  Favorable consumers acted and
drove favorability towards brand in visited SuperTruck’s advertiser’s site
2.2M consumers 2.3X more often
SuperTruck DX Brand SuperTruck DX Brand
effect on Favorability effect on sales
Fraction of Consumers Action rate by type of
Favorable consumer (indexed)
30% 2.3X 2.3X
28.2% 5.90% More
2.0 likely
20% 22.3% to act
1.0X
2.2M 1.0
10% Newly
Favorable
Individuals
0% 0.0
Exposed Unexposed Not favorable Favorable
© 2011-2012 DataXu, Inc. Privileged & Confidential 18

19. Myth No. 4
Online video is not cost-
effective
© 2011-2012 DataXu, Inc. Privileged & Confidential 19

20. The Claim…
“The cost of online video is too expensive”
© 2011-2012 DataXu, Inc. Privileged & Confidential 20

21. 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 4M Uniques 8M Uniques 10M Uniques
5X frequency 5X frequeny 5X frequency 5X frequency
© 2011-2012 DataXu, Inc. Privileged & Confidential 21

22. DX3 – The Digital Marketing Management
Platform for the Enterprise
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.
Audience Inventory
Management Management
Insights and Campaign
Reporting Management
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23. Mobile, Video, Display and Social
Bidded and Private Premium
Selected past and current direct inventory providers
© 2012 DataXu, Inc. Privileged & Confidential 23

24. The DX Video Difference
 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
© 2011-2012 DataXu, Inc. Privileged & Confidential 24

25. Debunking the myths!
 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.
© 2011-2012 DataXu, Inc. Privileged & Confidential 25