VideoEgg Media Kit

Matt Habegger, Engineering, VideoEgg San Francisco, Photo: Wade Lance

Let’s make online advertising better.

VideoEgg makes the impossible seem like business as usual. I will continue to use them any time I need to make my client look like a rock star. Nathan Poeschl Morpheus Media VideoEgg is a great media partner, delivering compelling creative, efficient engagement, and superb service. CPE is the way to be! :) Jesse Cahill MediaCom VideoEgg offers turn-key creative and unique ways for my non-profit clients to engage with donors online. Cammeo Murray Russ Reid Stand alone. A platform built to drive engagement with high impact creative execution. Couple this with superior client service and branding analytics… VideoEgg to me is innovation. It’s also Creative Engagement. Viewer friendly ads increasing time spent between consumer and brand only breeds profitability for our clients. Cory Henke ID Media Rich media (production and ad serving fees included), CPE pricing model and creditable inventory. Does it get any better than this? Nicole Miller RJW Media VideoEgg has given us a vibrant, dynamic user experience with solid results to add to our clients’ media mix. Alexander Bunkowski DSA Media I always know a VideoEgg ad when I see it! Great way to reach, engage, interact with, intrigue, break through the clutter, have a party with your audience...you get the idea. VideoEgg works! Ashley Dillon Cosette I won GOLD at the Media Innovation Awards for our Fido client with the Twitter feed AdFrames integration. That was Awesome! Now everybody knows that the bird is the word! Oliver Ceballos Bos Digital engagement made easy and appealing – promises made by many but delivered by few. Professional, innovative and insightful – viva the VideoEgg engagement network. A virtual team member that helps us refine our market and provide an optimal experience for our audience. Zac Moffet Targeted Victory

VideoEgg has been a vital step in moving our clients forward in a non-pharma friendly digital world. Lehana Graham MediaCom VideoEgg is like your mother, if your mother were more awesome. In four words – great people, awesome product. Terra Sharek OMD Smart people + smart product = fun for everyone. Zachary Kubin MEC VideoEgg provides really great customer service and can back it up with some amazing campaign results! Gabrielle Goneconti (Brie) Morpheus Media VideoEgg means giving clients with limited resources a

chance to do something impactful. Lizzy Pietri Moses Anshell As a Pharma Digital Media planner I’m plagued with daunting goals and limited options. VideoEgg represents smooth medical legal reviews and an engaging platform to speak to patients about treatment options, side effects and cost savings. The team at VideoEgg also has custom solutions for our biggest challenges. Chad Kunko Prime Access Inc. VideoEgg means progressive creative executions, guaranteed engagement with my consumers and free gum after each meeting. Michael Searles Media Contacts The bird is the word. Louis-Philippe Charland Carat Smart people, cool products and who doesn’t love a customized t-shirt!?! Lisa Bronson LBi Efficiency, top results and a pure pleasure to work with. What else do you need? Viola Gurvits MEC

Love notes. 02

VideoEgg offers great solutions and superior service. We consistently see excellent performance in the units we run on VideoEgg. Rachel Lary Mindshare VideoEgg is a refreshing company that saw something new and moved; they continue to lead the way. We love working with Mike and his team. Caroline Moul PHD Network What Video egg means to our team is quite simple: Always about service, offerings and superior support, Have products linked to brand solutions Added value beyond impressions. Never compromising execution quality. Getting usable learnings. Simple... AHANG Byron Charles Brooks Mindshare By combining immersive creative with an advertisercentric buying model, VideoEgg has succeeded in making a very exciting advertising product. Aaron Reinitz Harmelin Media You had me at engagement. Annie Evans Universal McCann VideoEgg means service. The idea of charging only on engagement is revolutionary and as a relatively new idea, it takes time to explain the concept to my creative partners. VideoEgg is always willing to help me through that process. Andrew Ettinger Palmer Media Services What I need is a technology company that isn’t going to hold me to ransom. I need someone who will take my assets and build me something innovative, something stand-out, that looks great for the client. I need a network with intelligent targeting and scale. And I need someone who will trade on engagements and give me the confidence that they’ll make my ad work for me, deliver results and user interaction. That’s what VideoEgg means to me… Tom Barker Mindshare Our VideoEgg team combines what’s best about ad networks with cutting edge rich media to make an ROI packed milkshake of awesome. Paul Caparotta Bandai Games American, Inc.

VideoEgg is a new kind of media network that guarantees engagement for brand advertisers. We are headquartered in San Francisco, California. We have offices across the US, in Canada, the UK and Australia. Learn more about our unique approach to advertising at: videoegg.com. Follow us at: twitter.com/videoegg For information about advertising with us, contact your local rep at videoegg.com/contact To inquire about becoming part of our publisher network, apply at videoegg.com/publishers

Shelly is our curious bird friend. Together, we are learning to fly.

Nice people with useful technology making digital advertising work better. Marketing objective.

Goals, targets, assets, data and reporting needs.

Your peeps. Media strategists develop an efficient network approach.

Engaged. Designers and technologists make your content engaging.

This publication is made from recycled newsprint. When you are finished with it, pass it on, or drop it in the recycling bin. Thanks to all the creative VideoEgg’ers, our clients, and friends who helped this paper come together

To what end? We deliver your campaign and help you understand the impact of the investment.

Delivered.

You are 100% Happy or we make it right. ©2010 VideoEgg, Inc., “Shelly” the bird, and VideoEgg are trademarks or registered trademarks of VideoEgg, Inc. in the United States and other countries. All other trademarks are the property of their respective owners. All Rights Reserved.

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We love it at its very best. And we love what it enables – journalism, sport, art and culture… But let’s face it, most people hate advertising most of the time. Necessary evil or opportunity for innovation?

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Value of attention

Value of impression

Brand advertising is in trouble. The whole notion of interruption is under pressure. How will digital carry the torch when it leaves precious little room for storytelling? Indeed, media delivery is changing faster than the ad structures that support it. The industry is in desperate need of new ideas and people that can deliver them. For the past five years we have been working on the front lines, innovating on pricing models, audience delivery, creative formats and underlying plumbing. We’re making progress, but advertising is a big complicated business and the pace of change in media is accelerating. In short, there’s a lot left to do. Our focus is simple and ambitious - let’s make online advertising better for brands. 05

Q & A

Media&Message Ten questions for OMG’s Steve Katelman and TBWA’s Colleen Decourcy What’s the best compliment you’ve received from a client about your work? SK: “Hey, that worked great!” CD: “Working with your team makes my team smarter.” What is it your peers and/ or clients just don’t get about digital advertising? SK: It’s not all about the click. CD: The two conversations seem to be data/analytics and campaign extensions. I think we’re missing the larger point that technology and the way it can extend the value of a product or service is a big idea. I suppose “digital” can be just a platform for advertising ideas...but why would you stop there? sher Steve Katelman VP, Strategic Publi Digital Omnicom Media Group

Partnerships,

What’s the one thing digital advertising needs to address/solve in the next few years?

CD: I’m tired of display. It’s a throw-back to print and television. We shouldn’t have built an online ad industry based on real estate. It stopped us from figuring out how to monetize the more complex things like social and utility and content. Why is brand advertising online so hard? SK: Not really sure it is as long as you spend a sufficient amount of time developing the correct KPIs & strategy. The fragmentation can be addressed. CD: It’s not. It should be the easiest thing. It’s a perfect medium for brand behavior. The answer to the last question is the reason it seems so hard. What is the most interesting digital program ever? SK: McDonalds/ Hulu commercial free primetime. CD: Everything The New York Times has done to their brand online. It’s the news version of itunes to me. It’s the best demonstration of how technology can transform the use of a product and facilitate an expression of brand behavior. If you weren’t doing this job, what would you be doing?

SK: True measurement.

“Relevance and distinction are the the two goals of advertising...digital agencies have really been hammering relevance. Advertising is about emotion. Those two things need to find each other.” Colleen Decourcy

CD: Everyone is trying to find the right ad format to engage their audiences. I think content is the killer online engagement and we need to invest in unique ways to deliver and allow people to experience content beyond video views.

CD: I’d be a war correspondent. Which is basically the same job, but with bullets.

Will online campaigns ever make people feel anything?

What makes you most proud about your job?

SK: I would argue that online campaigns especially those using site sound motion do engage people and allow for an emotional connection to be made as this is a lean-in medium.

SK: That I get paid for this.

CD: The idea that with technology, we have no standard platform. We don’t just build messaging... we’re creating communications Colleen Decourcy Chief Digital Officer, TBWA Worldwide structures. It’s the equivalent CD: I think they have to or we don’t have of inventing television and the a viable medium. Relevance and distinction are the the programs that run on it - not once for 50 years of fun, but two goals of advertising....digital agencies have really every day. Every day something new and something to been hammering relevance. Advertising is about emotion. express through it. Every day starts with a blank page. I Those two things need to find each other. think that’s true creativity. What one change would you like to see in the online advertising ecosystem? SK: I’d like to see more customization & less “standard” execution. True brand integration -- let the reach/ frequency play be handled by automation.

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SK: Playing lead guitar in Lynyrd Skynyrd

Who is the next marketing superstar? SK: Steve Katelman CD: No one we know.

The life and times of an ad.

BORN

The AdFrames system and creation tools enable teams to create lots of sizes like this very quickly.

Runs wild AdFrames is a multi-platform system. The same experience runs across mobile environments, like the iPhone.

grows

Our ads expand like this. Advertisers can do pretty much anything in here. Video, games, maps, tweets. Everything is shareable across social environments.

Doc stays put. We recently added Doc to the AdFrames product suite. Doc is anchored to the bottom of a site (users can always close it). It expands and delivers the same rich experiences as other AdFrames products.

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C A S E

S T U D Y

Action starts with... The innovative charity organization challenged us to raise awareness to help eliminate AIDS in Africa. We put our people, technology and network to the task. Along with the pro-bono campaign, we created an attention dashboard to broadcast the results in real-time. Here’s what it looked like (see it live at www.videoegg.com/red) AdFrames Display for reach and engagement Mobile for intimacy

Doc for page-takeover impact

Cares VideoEgg Cares is how we use our resources to support important causes like . For more information about how we might support your cause, contact your local sales representative.

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...attention. The live dashboard showed attention, impression, average time spent, video views, discrete engagements and secondary actions.

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Q & A

Behind the Numbers

A Conversation with Lesle Litton, comScore Vice President In our quest to make online advertising better, we partnered with comScore on a landmark study. Our goal was to arm brands with definitive research on the relative brand value of rich media ad units. The largest of it’s kind, the study involved six major brands across a variety of industries and included 14,000 respondents. Together, we examined how ad performance is impacted by environment and how particular creative units drive brand recall and perception. To put the study into a little more context, we sat down with Lesle Litton, comScore vice president, to discuss its significance and what the findings mean for you. VE: The Ad Effectiveness Study is the first and largest of its For brand managers, it’s a matter of engagement. We saw kind ComScore has conducted. Why? considerable lift with those who engaged with the actual ad. LL: This was a controlled experimental design. It allowed us to Engagement is 6x more effective driving ad recall. When you’re isolate the impact of the ad unit vs. site type – creating an ad experience, think of how you want essentially, whether environment played a role “..measurement is consumers to engage with your brand. It’s about in the ad’s effectiveness. Most of our research shifting that mindset and creating compelling becoming more of a deals with live campaigns. We have various experiences. holistic view of what types of measures. The difference is: Because VE: What can we learn about measurement it’s live, we can’t control for all variables to worked well in the with this? Is measurement changing? really understand what the driving factor of the campaign, examining LL: Put simply, the “click” isn’t the best indicator shift is. In the case of this controlled study, we that through various of brand engagement. We’re going to a place of were able to examine all brand measures. brand ROI (sales) – measurement is becoming filters and turning VE: What do the results mean for media more of a holistic view of what worked well in the that knowledge into buyers? What about brand managers? campaign, examining that through various filters best practices over LL: For media buyers, while there’s value in and turning that knowledge into best practices placing an ad on large brand sites, we also over time. time.” found more creative ad units, including video VE: What’s the biggest takeaway for the industry? units, can significantly raise brand lift regardless of context. It’s LL: I have two. Ad format matters. Engagement is a big one in my a matter of where you’re looking to spend dollars. Ad format is mind. something they should put more weight on in their decision.

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“When creating an ad experience, you must think of how you want consumers to engage with your brand. This study demonstrates a need to shift industry mindset and place more emphasis on creating compelling ad experiences.” - Lesle Litton,Vice President at comScore 2010 VideoEgg + comScore study, the first large-scale research project to accurately determine the interplay of Ad Units, Engagement and Environment.

Key findings:

Ponder this: AIDED AD RECALL Which of the following ads do you recall seeing on the site? (Banner index 100)

Rich media ad units outperform standard banners. VideoEgg AdFrame (AF) units are 2x as effective in generating ad recall. Engagement increases unaided recall by 6x and aided recall by more more than 4x.

Ad engagement increases key brand perceptions and lower funnel metrics. 48% increase in top two box brand associations on average. 23% increase in brand consideration. 12% increase in likelihood to recommend

500

437

400 300 200

1. How do interruptive approaches deliver on brand metrics?

250

2. What are “light” ways to

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get people to engage and boost recall and brand perceptions?

100

AdFrames

Video Intrstl

AF + Intrstl

Engagers

SELECT ATTRIBUTES Index engagers to non-engagers (Banner index 100)

3. How can you increase time spent with a brand?

350 295

288

300

4. What role should premium

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play in your buy?

150 100

Engaging video ad units perform well regardless of environment. While consumers were more familiar with brand name sites when controlling for ad unit and advertiser, the type of site alone did not shift brand metrics.

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is exciting

thrilling

is for people like me

THANKS TO BRANDS THAT PARTICIATED IN THE STUDY:

Aided and Unaided Recall Impact of site type Not significant

Impact of advertiser 99% significant

Impact of ad unit 99% significant

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People

Networks

Customized, data-driven brand networks that know where people go to connect, learn and play.

BIRD

LOVER

Balance audience, context and environment. How we might target a young, influential tech enthusiast to introdue a new mobile offering. Audience

Context

Mode

Leverage impression

Blogs, specifically in

Mobile social utilities

level audience data

tech, fashion and music.

and streaming media

from identifying

Streaming music sites.

apps. Next generation

females 18-34. Deliver

Celebrity news and

devices like iPad.

mid to high income.

witty fashion critiques.

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Erin Skidmore, Marketing, VideoEgg San Francisco Photo: Patti Beadles

Current, curated, quality. Fortified with data. Real-time impression level data enables us to identify specific audiences and interests.

Site Quality

We partner with leading media brands and fastgrowing, influential newcomers. Our “Engaging 100” list includes some of the most interesting sites and applications on the web.

Mobile too. We deliver audience across mobile applications as an integrated part of a plan.

Attention Performance

network

Ensuring your brand is safe. The steps we take. 1. Domain-level whitelisting No domains outside of our pre-screened list 2. Keyword filtering on page No pages that violate our inappropriate content filter 3. Continual human review Regular deep dives to verify sites haven’t changed since acceptance

control

Based on your reach and targeting objectives we deliver you a list to meet your needs. We will work with you to add or remove sites that don’t fit the bill.

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Snip, fold. Behold. r G

n e e BL ue

Your 14% engagement rate is based on clicks on the “close button.” Sssshh. Who can argue with success?

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Your new ad mascot is bigger than the Geico caveman. Primetime offers abound.

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Your digital-only campaign shatters awareness metrics. The TV guys report to YOU now. :)

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1

You now have 1,000 Facebook friends. Change business card to “Social Media Consultant.” $40k raise.

Client makes drunken pass at you. This could be bad. Or good. Go again.

ge

an or

one

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UGC campaign makes front page of AdAge. Agency fired. “The people” now agency of record.

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Google completes friendly take-over of industry. Reposition career.

It’s gone viral.

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three

You get fired for charging too many lap dances on the company credit card.

PI N K

3

4

LD FO

LD FO

How to fold your Fortune Teller:

Flip over. 1. Fold and unfold.

2. Fold each corner to the center.

3. Flip over.

4. Fold each corner to the center.

4. Fold and unfold to make creases.

Your future in advertising, foretold. 02 14

Like this!

Solutions

< Attention seeking engagement monster

Feed them RFP’s. Feel the love. Say hello to our attention seeking engagement monsters, the VideoEgg Solutions team.Throw them the brief. They’ll love you back with surpisingly clever ways of engaging your audience. XO.

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Things we do... We are straightforward and clear. We like solving complex problems. We care less about our competitors and more about our clients. We believe details make the product. We think good service really matters. So does good design. We like to laugh. We care about the world. We are ambitious. We zag.

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P E R S P E C T I V E

Counting what counts

Can we develop a common language to describe engagement?

E

ngagement. We know that’s what marketing is all about, but we’ve never agreed on what it is and how to measure it. All engagements matter, yet most of them happen outside the view of any reliable measuring technology. Until we all have implants in our skulls, a lot of this just can’t be quantified. Yet advertisers want to know what value they are getting for their money. The language doesn’t exist yet to measure engagement in all its forms. So the industry has stalled. It’s time to get moving again, but to define engagement in terms of what is measurable. While the industry has grown, so too have the mechanisms that individual agencies, publishers, networks, and creative vendors have put in place to count what they deem to be important success metrics. The system promotes game playing. How many times have you seen an autoplaying video running silently beneath the scroll? Or an ad impression on a redirect page? Or an expanding ad on a quick trigger to get accidental engagements? Even when everyone is being an upstanding citizen, we have a tower of Babel situation in the language of measurement. We have CPA, CPL, CTR, CPE, eCPM, complete views, brand lift, ad recall, time spent, and a host more. Agencies try to normalize all the different things they buy, and their unique measurement methodologies, through a Rosetta Stone of a spreadsheet that distills them into a common metric. But each agency has a different spreadsheet. It is crucial that, as an industry, we develop a common language to describe what constitutes engagement: different categories of engagement, measurable indicators that tell us it has happened and to what degree, and effects that we are able to quantify. Until we do, it will continue to be difficult to tell the C-Suite that we are providing value. What we need is to develop a measurement model that cuts through the murk

and heads towards a vernacular that can compare all of these creative executions, technologies and media types. It’s not an easy conversation to have. No one wants a change in direction that will make their old measures look like they were inflated – and that’s what’s likely to happen to almost everyone if we start describing engagement in terms of hand-raising, brand-recalling, time-spending, intention-peaking, actiontaking consumer effects. But if we can, we can do much better for the advertisers and, quite probably, learn a few things that will make consumers’ lives better. The conversation only moves along if the following things happen: Advertisers: Ask agencies tough questions. How are they measuring engagement? Why did they choose to do it this way rather than another? How do they know it works? Don’t accept “industry standard practices” as an answer – those practices might not be the best for being standard. Agencies: Ask publishers tough questions. How does each define an engagement? What consumer behaviors can we track? Should we track those? How do you care for both the advertiser and the user experience? Are those being captured honestly? Publishers: Ask clients tough questions. Why do you think the metrics you have asked us to hit are the right measures? How can we work more closely together to create value rather than talking about price all the time? The industry as a whole needs to spend some real time and brain power sorting through these issues and publish a set of standards that enables understanding and eliminates game playing. If we’re going to find a better way to advertise in this very fragmented world that has outgrown its traditional metrics, it must be done.

- Matt Rosenberg

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What works? We will help you figure it out. AdStudy

Identify media and design elements that drive engagement to maximize your campaign.

Brand Study

Understand how your campaign impacts brand metrics.

Custom Research Design and implement custom research programs to make your online brand advertising work better.

Sample report: AdStudy performance analysis (sample data)

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Some questions we’d like to answer with data: 1. Can we quantify the branding value of user control and choice when viewing ads? 2. What are the design principles that drive time spent with an ad? 3. How do different third-party targeting data offerings influence brand and ROI metrics? 4. Are people who elect to engage with an ad already pre-disposed to the brand? 5. Can we use regression analysis to map the Internet for premium engagement opportunities? 6. How can brain wave measurement help us understand engagement with, attention to, and cognitive processing of online video?

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P E R S P E C T I V E

iPad: A Touching Response. At a press conference the week after the iPad launched, Steve Jobs introduced his new mobile OS along with his exclusive network for an exclusive ad unit: the iAd. In Jobs’ vision of the world – and a direct hit to competitor Eric Schmidt of Google – mobile devices are not about search, but about app usage. As “Steve” describes it, the iPad is: “our most advanced technology in a magical and revolutionary device at an unbelievable price” that will change everything about mobile devices. From our perspective, we are pretty sure this new device will change one thing: the mobile web browsing experience. Since the integration of Internet access into phones, companies have been trying to figure out how to use these uniquely personal devices for marketing. Most mobile advertising is currently text-based or tiny, dull banners placed on a limited number of WAP sites. Only within apps – and mostly iPhone or Android phone apps at that – is anything approaching what we would call “rich media” possible. And since the penetration of iPhones and Android devices in the US represents less than 5% of the total mobile market according to comScore, is it really worth it for a marketer? The market also hasn’t matured because there is little understanding of how consumers engage with content on small-screen mobile devices. Now that problem changes character with a bigger touchscreen – and we already know how touchscreens have changed behavior on smartphones. People with touchscreens are more likely to click on the ads – reports show that click through behavior on iPhones and Android phones are virtually identical – and are more likely to already be engaging in mobile commerce. I don’t know how people will use the iPad. I feel safe in saying that the real-world use cases for the iPad will be determined by observing its use and not by the technology itself. But there are a few things we have to be aware of with the device, as it could be the true game changer for mobile web browsing. Apple is shutting out Adobe by declaring that HTML5 is the only programming language that ads on Apple devices can be programmed in. That’s a huge challenge to marketers and agencies used to building

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wired web ads in Flash. While they would like to simply port ads over to the iPad, the reality is not so simple. Rushing headlong into a new thing without understanding its fundamental differences is a recipe for failure. And this is a new thing. The iPad is a tactile device. Fingers are king. And fingers don’t operate the way a mouse does. They are not pinpoint activators of finely delimited, image-mapped navigation. How should the web work when you can touch it? How do my stubby fat fingers manipulate the same content as my wife’s fine thin ones? Just like a glove, one standard, oldschool approach to content won’t fit all. The iPhone has trained people that they can flick to zoom in and pinch to zoom out. If that behavior takes place on the iPad, we’ll have to re-think what an impression is. Can we develop a content hierarchy that changes based on the zoom level, in order to maximize the value of the impression no matter its user-determined size? We might want to go back to basics and re-think whether impressions should be dumped in favor of paying based on interactions. What does it mean to expand an ad, or navigate content in an ad, when people use their fingers to trace an arc of intent to move the pieces around? What sort of data should we start tracking when those fingers can tell us so much? Early television was repurposed radio drama performed for a camera sold to single sponsors. It took time and experimentation before producers learned to visualize the drama and advertisers learned to create their own spots. The same was true of the Internet. And the same is true, on a potentially smaller but no less important scale, of mobile advertising. The iPad and the new advertising platform on the block — iAd — represent the next step in the evolution of interactive media and will give developers tools that will allow them to incorporate ads users can view without leaving their apps. It’s all so new — let’s not think we know the answers yet. - Matt Rosenberg

“Restlessness is discontent and discontent is the first necessity of progress. Show me a thoroughly satisfied man and I will show you a failure.” Thomas Edison

Founded in 2005. Privately held. Profitable. Operations in nine markets including Australia, Canada, UK. 100% year-over-year global sales growth in 2009. Represent 90% of the biggest digital advertisers in North America. Reaching more than 100 million global uniques. Delivering one billion impressions per month. Still restless. 21

BECAUSE YOU LOVE ONLINE ADVERTISING.

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Ken Rogers, Engineering, VideoEgg San Francisco

Elyse Bellamy, Creative, VideoEgg San Francisco

Ryan Christo, Engineering, VideoEgg San Francisco

Erin Olssen & Erin Skidmore, Marketing, VideoEgg San Francisco

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When was the last time online advertising made you feel something?