AdColony Major CPG Brand Nielsen Study FINAL

October 2012

AdColony x Major CPG Brand x NielsenCross-Platform Video Ad Effectiveness Study

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• Mobile was the fastest growing video platform in 2011 with more than 31 million users, a nearly 40% increase from the previous year

• With device penetration for smartphones & tablets hitting record-highs (including the record iPhone 5 launch) usage is expected to explode over the next five years

Mobile Is The Fastest Growing Video Platform

But is mobile video an effective platform for advertising?

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Teamed Up For 3 Screen Study On Video Ad Effectiveness: TV, Online & MobileNielsen cross-platform video ad effectiveness study measured identical 15-second CPG Brand video spots across TV, online & mobile.

Study measured brand recall, message recall, purchase intent & more

AdColony is a leading mobile video advertising & monetization platform with

proprietary Instant-PlayTM video ad technology that serves crystal-clear

video ads at lightning speed

Major CPG Brand

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Results: CPG Mobile Video Ad Significantly Over-Indexed The Same Ad Across Platforms

79%

58%

45%

24% 15%

29%

12% 8% 7% 6%

49%

10% 6% 7% 4%

General Recall Brand Recall Message Recall Ad Favorability Purchase Interest

Corona Ad Colony Video vs. Same Ad Norms (M21+) Corona Ad Colony Video Corona Same Creative Online Video Ad Norm Corona Same Creative TV Campaign - All Airings (5.11.12 - 6.7.12)

TV Standard Ad Source: Nielsen Brand Effect (IAG), Includes all airings (Prime & Non-Prime; Sports & Non-Sports); June 1, 2011 - June 10, 2012, M21+;Significant differences at 90% confidence level or higher are indicated in bold+italics

CPG Brand AdColony Mobile Video Ad vs. Same Ad Norms (M21+) Across Platforms

CPG Brand AdColony Mobile Video AdCPG Brand Same Creative Online Video Ad NormCPG Brand Same Creative TV Campaign - All Airing (5.11.12 - 6.7.12)

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Digging deeper into the results...Mobile video effectively complements TV & online advertising; outperformed other

mediums on key brand & ad metrics

5

0%

25%

50%

75%

100%

49%

29%

79%

CPG Brand AdColony Mobile Video AdCPG Brand Same Creative Online Video Ad NormCPG Brand Same Creative TV Campaign

% of exposed respondents who are able to recall the major creative elements of the ad (how memorable the ad is)

Mobile Video More Effective For Driving General Recall Than Online (2.7x) & TV (1.6x)

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0%

25%

50%

75%

10%12%

58%

% of exposed respondents who recall the ad and the name of the brand/product being advertised (how well the ad and the brand is breaking through)

CPG Brand AdColony Mobile Video AdCPG Brand Same Creative Online Video Ad NormCPG Brand Same Creative TV Campaign

Mobile Video More Effective For Driving Brand Recall Than Online (4.8x) & TV (5.8x)

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0%

25%

50%

6%8%

45%

% of exposed respondents who recall the ad and brand, and can play-back the ad’s key message (the net breakthrough of the ad, brand and intended message)

CPG Brand AdColony Mobile Video AdCPG Brand Same Creative Online Video Ad NormCPG Brand Same Creative TV Campaign

Mobile Video More Effective For Driving Message Recall Than Online (5.6x) & TV (7.5x)

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0%

13%

25%

7%7%

24%

% of exposed respondents who recall the ad and brand and, and reported to like the ad “a lot” or “somewhat” (the net breakthrough and appeal of the ad)

CPG Brand AdColony Mobile Video AdCPG Brand Same Creative Online Video Ad NormCPG Brand Same Creative TV Campaign

Mobile Video More Effective For Driving Ad Favorability Than Online (3.4x) & TV (3.4x)

9

0%

13%

25%

4%6%

15%

% of exposed respondents who recall the ad and brand, and said that seeing the ad ‘strongly increased’ or ‘somewhat increased’ their interest in purchasing CPG products

CPG Brand AdColony Mobile Video AdCPG Brand Same Creative Online Video Ad NormCPG Brand Same Creative TV Campaign

Mobile Video More Effective For Driving Purchase Intent Than Online (2.5x) & TV (3.8x)

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Compared to Online Ad Norms, Mobile Video Significantly Outperformed Across All Metrics

79%

58%

45%

24% 15%

32%

16% 13% 7% 5%

30%

14% 11% 7% 5%

26% 17%

10% 10% 8%

General Recall Brand Recall Message Recall Ad Favorability Purchase Interest

Corona Ad Colony Video vs. Online Ad Norms (M21+) Corona Ad Colony Video Corona Online Video Ad Norm Alcoholic Beverages Online Video Ad Norm Corona Online Display Ad Norm

‡

Web Ad Source: Nielsen Brand Effect (IAG), June 1, 2011 - June 10, 2012, M21+‡ Significant difference at the following confidence levels: Purchase Interest (83%)

Significant differences at 90% confidence level or higher are indicated in bold+italics

CPG Brand Mobile Video Ad (AdColony) vs. Online Ad Norms (M21+)

CPG Brand AdColony Mobile Video AdCPG Brand Online Video Ad NormCPG Brand Category Online Video Ad NormCPG Brand Online Display Ad Norm

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Compared to TV Ad Norms, Mobile Video Ad Breakthrough Was Also Very Strong

79%

58% 45%

24% 15%

53%

35% 31% 22%

15%

41%

29% 22%

17% 12%

General Recall Brand Recall Message Recall Ad Favorability Purchase Interest

Corona Ad Colony Video vs. TV Ad Norms (M21+)

Corona Ad Colony Video Corona TV Ad Norm Beer & Ale TV Ad Norm

‡

TV Standard Ad Source: Nielsen Brand Effect (IAG); Includes all airings (Prime & Non-Prime; Sports & Non-Sports); June 1, 2011 - June 10, 2012, M21+; Significant differences at 90% confidence level or higher are indicated in bold+italics

‡ Significant difference at the following confidence levels: Ad Favorability (87%)

CPG Brand Mobile Video Ad (AdColony) vs. TV Ad Norms (M21+)

CPG Brand AdColony Mobile VideoCPG Brand TV Ad NormCPG Brand Category TV Ad Norm

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Key Takeaways

• Mobile video advertising is effective in driving consumer demand & complements TV & online campaigns to drive greater awareness & action from target consumers

• As part of a 3 screen, cross-platform study, mobile video generated the greatest breakthrough & impact influencing general recall, brand recall, message recall, ad favorability & purchase interest

• Results prove that mobile video also provides an opportunity for marketers to optimize their media mix by moving more aggressively to mobile, capitalizing on a huge consumer trend towards mobility

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Methodology

• Timing: May 13-27, 2012

• Effective Recall: Surveyed between 4-36 hours post exposure

• Consistency: Identical survey questions, editorial structure, & syntax

• Measurement Process: Ad Breakthrough & Brand Impact data collected on-device by Nielsen survey partner; data then processed, tabulated & analyzed independently by Nielsen

• Respondents: All mobile users, M21+, who were either not exposed to the CPG Brand ad (control) or exposed to the CPG Brand ad (test).

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About AdColony

• Leading mobile video advertising & monetization platform that plays crystal-clear HD video at lightning speed & drives deep engagement with content

• Proprietary Instant-Play™ video ad technology serves video ads instantly on the most popular apps in the world across Apple's iOS and Google's Android platforms

• Advertisers receive unmatched quality, speed & delivery results; AdColony's reach, targeting, optimization tools & services provide advertisers with a superior way to engage mobile audiences at scale

• AdColony's app developer tools & services provide publishing partners with ways to maximize audience & revenue growth while gaining insight needed to continuously optimize content & advertising offerings

• Privately held company with offices in Los Angeles, New York, San Francisco & Seattle; backed by Insight Venture Partners - early investors in Twitter & Flipboard among 50 other companies

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Nikao YangSVP, New Business Development & Marketing

[email protected]

Contact

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Appendix

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CPG Brand General Recall

Brand Recall

Message Recall Favorability Purchase

Interest

Relative to online video

2.7x 4.8x 5.6x 3.4x 2.5x

Relative to TV 1.6x 5.8x 7.5x 3.4x 3.8x

Mobile Video Outperformed Other Platforms Across All Ad Metrics (Multiplier Increase)

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CPG Brand General Recall

Brand Recall

Message Recall Favorability Purchase

Interest

Relative to online video

172% 383% 463% 243% 150%

Relative to TV 61% 480% 650% 243% 275%

Mobile Video Outperformed Other Platforms Across All Ad Metrics (% Increase)

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