Increasing Casual Game Revenues with In-Game Advertising

Increasing Casual Game Revenues In Game Streaming Video Advertising is Working! License + Subscription + In-Game Advertising Revenue per Game Download Time

Global Leader in Digital Campaign Management Offices in all key digital markets providing 24/7/365 coverage

Eyeblaster The Rich Media Partner for Publishers, Agencies and Advertisers Around the World A small sample of clients

Expandable Caesars 24/7 Ray Phantom of the Opera Polite Floating Eyeblaster Ad Formats (Click for Demo) Video and Interactivity Easily Integrates Into Any Ad Format Push Down Nike Synchronized Bahamas Air MSN Music Behavioral Nissan Full Page Overlay VideoClip Levis VideoStrip Alexander Commercial Break L’Oreal

About Real The Global Leader in Publishing and Distribution of Casual Games Developer Partner Network Wholesale Partner Network Combined Global Reach of 45M+ Unique Users per Month

Challenges The Industry Problem We Are Solving 600M game downloads in 2005 –Only 12M purchased 588M cost producers –35,280,000,000 Minutes –67,123 Years –671 Centuries –.67 Millenniums This is the opportunity

Consumer Response to Seeing an Online Video Ad Brand Metrics for Video/Audio vs. Rich Media vs. GIF/JPEG Source: eMarketer, November 2005 *as a % of respondents Source: Dynamic Logic MarketNorms, DoubleClick, May 2005 *as a % of lift 0% 10% 20% 30% 40% Visited site Requested info Visited store Forwarded to friend Made purchase Ordered a subscription 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Aided brand awareness Online ad awareness Message association Brand favorability Purchase intent Video/audio Rich media GIF/JPG Video ads combine television's sight, sound and motion with the Internet's immediacy and accountability to reach and engage online audiences. Online Video Advertising Effective and Accountable

Online Video Advertising Growing Demand & High CPM “[Video] is the fastest-growing major segment of Internet advertising. And all of that is money that would have been spent on traditional advertising.” Lee Westerfield, media analyst, Harris Nesbitt Online Video Ad Spending Source: eMarketer, 2005 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1, In millions Online Video Advertising 2005, By Vertical 49.6% 9.4% 7.9% 6.7% 6.4% 5.1% 4.2% 3.1% 2.6% 2.5% 1.6% Entertainment Automotive B2B Financial Services Consumer Goods Software Hardware/Electronics Travel Web Media Telecom Retail Source: AdRelevance 2005 YTD

Ad-enabled Games Top games are now ad-enabled

Ads Performances Strong Performances

Results Per download revenue increases significantly No Ads Extra 30 min trial Video Ad every 10 min No time limit Video Ad every 10 min

Results Total revenue increases significantly

Business Model Developers Benefit License Revenue + Subscription Revenue + In-Game Ads Revenue Total Game Revenue X Developer Royalty Rate Net Revenue Paid to Developers

Version 2 – Advanced Capabilities Demo Download and Install a game Click for video grab of a game

Enabling Inventory In Game Events & Ad Policy Driven Game 1 Internal Communication Layer Game 2 EB Client DRM Component Notifying Event Type (1,2,3 etc) Report on Scenario in Game (Start, Level Change, Stage change) Create Container per ad policy Events Manager (Timer, Counter, Ad allocation) External Communication Layer EB Game Server EB Client Cache on PC 1 4 2,3 5

Strong Backend Support For advertisers, distributors and game developers Ad creation and delivery tools Integration with other ads campaigns Campaign management tools Billing relationships Technical integration Detailed reporting

Next Steps Creating EB enabled game Content approval with Real (today) Sign up for free EB Game SDK Integrate to older or new titles according to standard Submit for approval and free commercial license Make sure to negotiate your ads revenues with distributor Submit the game for distribution

Thank You For additional Information contact: RealNetworks Chris Houtzer Director of New Media, Games (206) Eyeblaster Ran Cohen Director, Emerging Media

EB In Game Ads Solution for Casual Games High Quality In Game Video Ad Up to 30 sec high quality ad integrated in the game as a commercial break on game start, between levels and following game over – WOW effect, no distractions, no skip, click through option, integrated with the game look and feel and approved by game developer.

EB In Game Ads Solution for Casual Games Click Through Clicking on the video ad pause the video, takes the game to the background or minimize it and launch a browser on the landing page.

EB In Game Ads Solution for Casual Games Post Click Once browser is closed or minimized the game takes focus and video ads resume automatically. At that point a skip ad option that was not available previously becomes available.

EB In Game Ads Solution for Casual Games Leave behind and dynamic integrated logo placements Once browser is closed or minimized the game takes focus and video ads resume automatically. At that point a skip ad option that was not available previously becomes available. Clickable Reminder Dynamic Integrated Logo placements

Game Load on PC Report ID EB Game Server Send Ad Policy Based on Event & Ad Policy – Ask for an Ad RMP Pub Ad Server Trafficking In Game Tags Ask for Ad (Include info on: Game id, developer, pub, genre, sub genre, language, rating etc) Send EB Tags Call RMP For Ad Report Impression per flight, creative type and game ID EB Enabled Game

Use Case Game House and Pop Cap enabled each 5 games Game House and Pop Cap signed agreement with Oberon and submitted their EB enabled games Oberon integrates with EB (Events) Oberon submits 10 games to MSN and takes 40% of revenue generated from the games MSN distribute the games and inventory is created MSN Sell the Inventory to Avenue A Avenue A traffic In Game flight on RMP MSN generate code on RMP and submit in MSN Pub Ad Server MSN have 1 line in their server for Oberon games 10m impression delivered (Avenue A gets reports on flight and Ad level on RMP) Avenue A pays MSN $300,000 MSN pay to EB $30,000 rich media costs ($3CPM) MSN Delivers $120,000 to Oberon (40% x 300k) Oberon take 50% cut – $60,000 and have $60,000 to distribute to game developers Oberon ask EB report for % of impression associated to Game House and Pop cap In RMP every impression is associated with game ID – intern manually sum up the impressions per developer and report to Oberon on Excel sheet that Game House have 70% and Pop cap 30% of the flight Oberon pays GH $42,000k and Pop Cap $18,000

Business, Money Flow – And EB Touch Points Game Developer (Skunk Studios) Game Publisher (Real Publishing) Game Distributor (RealArcade) Advertising Revenues Business Arrangement EB In Game SDK EB In Game Event Integration Tags from RMP $1-$5 CPM $ (%) $10 - $30 CPM $ (%) Partnership and tech integration