1. How online video ads can pass TV ad revenues TV experience and Internet power comes together Oded Napchi, HIRO Media

2. THE MEDIUM IS NOT NECESSARILY THE MESSAGE…

3. … THE ‘REAR VIEW MIRROR EFFECT’ CAN BE BENEFICIAL…

4. TV ADVERTISING VERSES INTERNET Although Internet is becoming the leading advertising medium, Publisher see MORE REVENUE FROM TV ADS * in the US Internet Revenue return is around $0.35 * Television RPH (revenue per hour per user) $0.50 *

5. UK TOTAL AD SPEND: SEPT 2009 PwC 0909

6. WHY DO WE GENERATE LESS REVENUE FROM ONLINE ADS?

7. % of people who believe a particular advertising platform is most effective TV IS STILL THE MOST EFFECTIVE ADVERTISING MEDIUM Deloitte 08/10

8. % of people who find ads more memorable on a particular platform TV ADS ARE MORE MEMORABLE THAN INTERNET ADS Deloitte 08/10

9. Likelihood of people's attention being held by an ad on a particular platform TV ADS ARE MORE ‘ATTENTION GRABBING’ THAN INTERNET ADS Deloitte 08/10

10. THE PARADOX they say… the future of advertising lies on the Internet

11. THE PARADOX they say… the future of advertising lies on the Internet however… at present the Internet is less effective than TV ads

12. LESSONS TO LEARN Half a century of TV advertising experience has resulted in the most effective means of persuasion WEB ADVERTISERS SHOULD LEARN FROM THIS…

13. LET’S UNITE with the power of internet The knowledge of TV advertising

15. TV Vs ONLINE main concept TV = Demographic targetingOnline = CTR optimization

16. Most video advertising is brand advertising. Brand advertising DOES NOT encourage clicks. SO… CTR BECOMES IRRELEVANT

17. TV Vs ONLINE Frequency cap calculation TV = optimizing to number of views Online = limiting max number of views

18. For people to understand and remember a message THEY SHOULD SEE IT SEVERAL TIMES Hence limiting the number of impressions DAMAGES THE POTENTIAL EFFECT OF THE AD

19. TV Vs ONLINE Content Targeting TV advertisers target programmes Online advertisers target web pages

20. ASSOCIATING AN AD WITH CONTENT IS MORE EFFECTIVE Jack Daniels would advertise within Mad Men McDonald’s would not advertise within Super Size Me The web page, whether it is a home page or an Internal page, does not have the same effect

21. with the power of online media

22. Online power Ad load TV ADS minutes PER HOUR OF CONTENT 20 INTERNET ADS minutes PER HOUR OF CONTENT 3

23. HIRO uses ad load optimization algorithm for achieving the best ad load 5 minutes of ADS PER HOUR, DOES NOT CREATE A DROP IN USAGE Online power Ad load

24. TV shows appear in ONE channel The ads are sold by ONE organization Online power Ad routing Internet is VIRAL. Content is SYNDICATED Ads are sold to ALL SITES are by ONE ORGANIZATION

25. Instead of having 1 ad sales organization selling to 1 site Online power Ad routing 1

26. You can have multiple ad sales organization, selling for multiple web sites 1,000,000

27. Instead of having one ad sales organization selling to one site Online power Ad routing You can have multiple ad sales organization selling for multiple web sites

29. How does it WORK?

30. TV way of thinking | Test case TV company Around 2M video impressions per month Moved from leading display ad server to HIRO

31. TV PARADIGM FOCAL POINTS Uses demographic targeting Uses advanced media planning rules Uses video ad load optimization The result?

32. AD REVENUES INCREASED x 2x 3x 4x 5x

33. AVERAGE CPM DOUBLED Start of demo targeting x 2x 3x

34. CPM COMPARISON x 2x

35. TARGETED ADS LEAD THE WAY

36. THE AD LOAD EXTENDED

37. AND ADVERTISERS BUY MORE ADS

38. IP POWER TEST CASE Content syndicator Around 60M video impressions per month Moved from leading ad network server to HIRO

39. IP POWER FOCAL POINTS Uses ad routing Uses video ad load optimization The result?

40. AD VIEWED

41. MORE MID AND OVERLAY

42. For more information: contact@hiro-media.com ww.hiro-media.com By harnessing the knowledge of TV advertising and the power of digital media, ONLINE VIDEO REVENUES CAN FINALLY PASS TV AD REVENUES