Q3 2011 Rhythm Insights

© Rhythm Proprietary & Con!dential Information

RHYTHM QUARTERLY INSIGHTS Q3, 2011

PREVIOUS QUARTERLY REPORTS AVAILABLE AT WWW.RHYTHMNEWMEDIA.COM

ALL RIGHTS RESERVED. ATTRIBUTION REQUIRED FOR PUBLICATION OF ANY DATA PROVIDED IN THIS REPORT.


2

Data points are based on ads served across iPhone, iPod Touch, iPad, Android and other devices in the US market. The

data points cover ad campaigns from over 200 Fortune 500 brands in 2011, and over 125 in Q3 2011 alone.

About Rhythm

Rhythm connects brand advertisers with highly engaged mobile audiences by selling and serving video, rich media and

other immersive advertising. Rhythm has partnered with more than 50 premium media companies, typically on an

exclusive basis, across an unparalleled portfolio of 200+ properties to deliver meaningful brand advertising within the

highest quality content for targeted, relevant audiences. Our premium media partners include NBC Universal, CBS,

Sony, ABC, Fox, Warner Bros., IAC, Demand Media and many others. In 2011 alone, more than 200 top brand advertisers

including P&G, Unilever, Disney, Paramount, General Motors, Ford, AT&T, Verizon, Macy's, Marriott and Microsoft have

run campaigns with Rhythm and achieved unprecedented engagement results.

The metrics provided herein are solely representative of Rhythm’s collection of premium properties and may not reflect the overall ecosystem for similar ads.

ABOUT THIS REPORT


!  In-Stream Mobile Video Ads: Appear in the context of a video, as a commercial break in full episodes or before videos clips

!  Interactive Pre-Roll Mobile Video Ads: Appear at app launch, between game

levels and other screen changes

!  Premium Media Properties: Apps and mobile websites from well known companies such as NBC Universal, CBS, Sony, ABC, Fox, Warner Bros., IAC, Demand Media, etc

!  Contextually Relevant Advertising: Advertising in which the content of an ad is in direct correlation to the content of the app or mobile website being viewed

!  Brand Advertising: Advertising that aims to drive brand identity, awareness, preference and demand

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DEFINITIONS


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1.  In-Stream mobile video ads outperform online video ads (p 5) 2.  In-Stream mobile video ad completion rate remains at 87%, and high

across ad categories (p 6-7), and varies between 81% and 91% by device (p 8)

3.  Premium media properties achieve a 51% higher completion rate for Interactive Pre-Roll video ads compared to the norm (p 9)

4.  Smartphone & tablet mobile video viewing is occurring almost evenly throughout the 24 hours of the day (p 10-11)

5.  Contextually relevant ad placement increases engagement by 37.5% over the norm for full page ads (p 12)

6.  The top advertiser categories in mobile brand advertising, in order, were entertainment, CPG, technology, auto and telecom (p 14)

7.  Wi-Fi driving iPhone & iPad video viewing, 3G/4G fueling Android (p 15)

SUMMARY


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In-Stream video ads appear as a commercial break in full episodes or before video clips

IN-STREAM VIDEO ADS OUTPERFORM ONLINE

Online Source: Yume, 2011.

72%

87%

50%

55%

60%

65%

70%

75%

80%

85%

90%

Online Mobile (Rhythm)

Ave

rage

In-S

trea

m C

ompl

etio

n R

ate


6

RHYTHM’S IN-STREAM VIDEO AD COMPLETION REMAINS STEADY OVER LAST FIVE QUARTERS

87%

AVERAGE IN-STREAM VIDEO AD COMPLETION RATE


7

IN-STREAM VIDEO AD COMPLETION HIGH ACROSS AD CATEGORIES

75.0%

79.0%

83.0%

87.0%

91.0%

95.0%

Category High

Category Average

Ave

rage

In-S

trea

m C

ompl

etio

n R

ate


8

IN-STREAM COMPLETION RATE VARIES BY DEVICE

91%

84%

81%

88%

60%

67%

74%

81%

88%

95%

Android iPad iPhone iPod Touch

Ave

rage

In-S

trea

m C

ompl

etio

n R

ate


9

INTERACTIVE PRE-ROLL COMPLETION RATES 51% HIGHER IN PREMIUM MEDIA PROPERTIES

17.9%

27.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Average Average in Premium Media Properties

!"#$%&'()$*+%$,-.//*

Inte

ract

ive

Pre-

Rol

l Com

plet

ion

Rat

e


10

MOBILE VIDEO VIEWING EVENLY SPREAD THROUGHOUT THE DAY

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

01&%#23."$4*

Median Hour: 4.6%

% o

f Ove

rall

Dai

ly U

sage


11

IPAD VIDEO VIEWING SLIGHTLY HIGHER IN EVENINGS

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0% iPad Smartphones

Median Hour: 4.6%

% o

f Ove

rall

Dai

ly U

sage


12

AD CONTEXT MATTERS: FULL PAGE AD UPLIFT OF 37.5% IN RELEVANT CONTEXT*

Enga

gem

ent R

ate

*Entertainment, automotive and CPG advertising campaigns running within entertainment properties

5.6%

7.7%

0.0%

3.0%

6.0%

9.0%

Average for Entertainment Properties Average for Contextually Relevant Ads in Entertainment Properties

56//*+&7$*894*


13

INVESTMENT INTO MOBILE BRAND ADVERTISING ACROSS AD CATEGORIES

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

% o

f Tot

al C

ampa

igns

in Q

3


iPad

14

WI-FI DRIVING IPAD & IPHONE VIDEO VIEWING, ANDROID RELIES MORE ON CELLULAR NETWORKS

Android iPhone Wi-Fi

Cellular

98% WI-FI 55% WI-FI 35% WI-FI

Q3 2011 Rhythm Insights

Technology

Transcript of Q3 2011 Rhythm Insights