February Casual Connect Europe: West 2008 The Advertiser Side of In-Game Advertising

February Casual Connect Europe: West Agenda Market Trend – In-Game’s Popularity Among Advertisers The Advertiser and Agency’s Objectives In-Game Business Model Game Design for In-Game and User Experience In-Game Ad Performance

February Casual Connect Europe: West Market Trend – In-Game’s Popularity Among Advertisers? Media Fragmentation Marketing Noise Consumer Engagement Media Agencies’ Need for Innovation Gaming is on the Rise Casual Games’ Popularity

February Casual Connect Europe: West Reach demographics and site traffic statistics Relevancy brand fit, ad format fit, customization Impact campaign performance Deal cost-benefit considerations Accountability measurability, control & optimization The Advertiser and Agency – What are They Looking For?

February Casual Connect Europe: West User Demographics Age Income 0-50K 50k-75K 75k-100K 100k-125K +125K Number of Children Gender Male Female Marital Status Married Unmarried Education High school College graduate Post graduate

February Casual Connect Europe: West Business Model: Case Study Number of games studied: 29 Number of developers: 8 Game type: Downloadable – unlimited free games Number of downloads: 407,000 Time period: 30 days Key findings: –Average number of sessions per download: 4.68 sessions –Average duration per gaming session: 62 minutes –No drop in conversion rate

February Casual Connect Europe: West Business Model: Case Study (continued)

February Casual Connect Europe: West Conversion Rate Analysis Minutes/Session Analysis Business Model: Case Study (continued) Net Increase in Revenues Conversion Rate with Try-and-Buy Only Conversion Rate with Try-and-Buy and In-Game

February Casual Connect Europe: West Business Model: How Does it Work? Game Integration Game Developer/ Publisher Technology Provider 1 Distribution to Gaming Site Game Publisher Game Distributor 2 Distribution to Users Gaming Portal 3 Media Sale Media Seller Media Agency 4 Revenues Share 5 Two New Players: Media Seller, Technology Provider Keys to success: vertical integration, scale, ad inventory volumes, sales capacity Process Flow

February Casual Connect Europe: West Game Design – How Should In-Game Advertising Affect My Game? Relevancy: Think about advertising opportunities during game design –Which ad formats can be incorporated to allow the advertiser to deliver the right message to the right user? Reach: Think about new demographics –It shouldn’t be only a women’s world anymore –Stay targeted with each title Accountability and Scale: Pay attention to IAB standards (when possible) –Reporting data standards - accountability –Creative standards – scale Impressions Delivery: Think how you can generate more ad impressions with your game –Length of play vs. Conversion in 60 minutes Impact: Think about user experience –Will the ad formats fit the gaming experience? –Are the ads seamlessly integrated into the game? Key: finding the balance of game design and ad formats that will satisfy everyone’s needs

February Casual Connect Europe: West Interstitial Video Integration

February Casual Connect Europe: West 2008 User Experience – Will Users Accept It? Yes they will, if you: Add to the gaming experience –Give something in return Communicate the reward Be non-intrusive –Allow users to avoid the ads if they want Be realistic (cost-benefit to the user)

February Casual Connect Europe: West : In-Game Ad Performance Ad Format: In-Game interstitial in downloadable games Region: North America Number of impressions: 9 figures Ad spots: seconds Average ad frequency: 10 minutes Skip enabled Key Performance Indicators: CTR: 7.04% 50% Video Completion Rate: 75% 100% Video Completion Rate: 58%

February Casual Connect Europe: West : Ad Performance Comparison Unparallel CTR Superior video completion rate despite auto play and skip option More users start watching the ad and stay engaged

February Casual Connect Europe: West 2008 Thank You Ronnie Lavi Manager, Product Planning & Business Development Eyeblaster