Q1 2013 State of the Industry Report

12%

50%

23%

15%

Brand / Adver-tiser

Agency/ Trading Desk

Video Content Publisher / SSP

Buy-side In-termediary

More than 750 Professionals surveyed from across the digital media industry.

Video Ad Spending By Brand Category

11%10% 10%

9%8% 8%

7% 7% 7%6% 6%

5%

3% 3%

1%

12%11%

7%8%

6% 6%

4%

2%

Buyers 2012

Buyers 2013

Video Buyers vs. Non-Buyers Relatively Stable

74%

70%

78%

73%

Buyers Purchasing Video Advertising

2010

2011

2012

2013

Largest Jump in Ad Spend

76%

64%

87%89%

Video Content Producers Supported by Advertising

2010

2011

2012

2013

Growth in Ad-Supported Video Fairly Constant

Buyers Whose Video Spending Did Increase Doubled Down

% Who said "Increased" of those Who Bought

Video

Average Increase % Who Shifted Budget from TV to Fund In-

crease

Average TV Budget Shifted to Digital

96%

20%27%

72%

53%

39%

11%

Buyers 2012

Buyers 2013

% of who shifted from TV

budgets to fund it

TV

2012 2013

54%49%

35%

Display

40%11%11%

Neither

Direct Complement to TV67%

Which of the Following Should Video Be More Aligned With?

How Buyers View Online Video

As a Direct Complement to

TV

As a Replacement for

TV

Neither33%

11%

56%

28%

10%

65%

25%

9%

67%

201320122011

53% of publishers see it as a complement

20% see it as a replacement

How are advertisers buying video?

2011 2012 2013

Trading Desks

Exchanges

TV Upfront

DSPs

Ad Networks

Direct from Publishers78%

52%93%

61%81%

75%

11%36%

32%

44%19%

31%

11%32%

30%

19%25%

Brands: Do you do your own programmatic buying?

66%

34%

YesNo

More control over my brand

More control over pricing (Better negotiated rates)

Better targeting of audience

Faster

Do you currently purchase any premium inventory from private marketplaces?

47%Current

43%Current

Within 12 Months 30%

36%Within 12 Months

Agencies

Advertisers

8%

24%In just one year, there has

been a 300% growth in private video ad marketplaces!

2012 2013

Publishers:Are you currently running a private video ad marketplace?

Has the introduction of audience guarantees been a good thing or a bad thing for the digital advertising industry?

28%

10%

62%

25%

3%

73%

39%

26%

34%

Don't Know

Bad Thing

Good Thing

Publisher

Agency

Advertiser

Are you using third-party validation to guarantee audiences, such as Nielsen OCR or comScore Campaign Essentials?

9% Less Publishers are offering third

party validation then last year.

Agency

Advertiser2013

201241%

52%

54%

48%

What has been the greatest impact of audience guarantees?

23%

40%

32%

5%

35% 35%

24%

7%

Being able tounderstand adspend waste

The ability to measure theefficiency of publishers

and data providers

The ability tocompare onlinevideo with TV

Impact on pricing

Agency

Advertiser

Do you buy or sell video at the Digital Newfronts?

Buyers

Sellers

14%

25%

15%

31%

2012 2013

74% of buyers do not think online

video inventory is scarce

Advertisers Who Buy Mobile Video

% of Buyers

36%2013

2012

2011

48%

32%36%

Video Publishers Who Sell Mobile Video

% of Video Publishers

38%36%

26%

2013

2012

2011