1. WHY the world stopped clicking… The rise of interaction metrics and the importance of pre-click activity Dean Donaldson 2 nd November 2006

2. www.eyeblaster.com [index] TIMELINE OF RICH MEDIA ADVERTSING Rise of the ‘Smart Ads’ Behavioural & Sequential ads Broadband Penetration % of ads using video In-game video ads Mobile & IPTV Eyeblaster launches the ‘Floating Ad’ Video now standard across all formats ‘Pre-Roll’ ads before online video content First 2MB Video Ad Cross Channel Advertising Floating ads achieve over 5% CTR

3. www.eyeblaster.com [index] OVERALL: FORMAT COMPOSITION Intrusive Advertising User Initiated

4. www.eyeblaster.com [index] CTR: OVERALL vs VIDEO ADS Dropped from 5% to less than 1% in 5 years

5. www.eyeblaster.com [index] REASONS FOR CHANGE  Change of user habits – More habitualised in the way they consume and engage with content – More resilient to be enticed to leave their comfort zones by clicking away – The threat of spyware and viruses and the trend towards pop-up blockers  Novelty value – Over use of intrusive advertising created saturation – Slow down on new formats as publishers standardise all inventory – Increased regulation of frequency capping and close buttons  Personalised experience – Users now more likely to choose how to receive relevant content – More inclined to be entertained in their chosen environment The online audience has matured

6. www.eyeblaster.com [index] MEDIA FIRSTS standard industry question “What new format or latest trick can you recommend that will get me the best click-thru rates?”

7. www.eyeblaster.com [index] FROM PULL – “Traffic Drivers” WEBSITE YAHOO! MSN AOL ORANGE Trying to pull the users to your website – Average CTR is below 0.3% – Clicks are not pre-qualified

8. www.eyeblaster.com [index] TO PUSH – “Smart Ads” YAHOO! MSN AOL ORANGE WEBSITE Pushing content to the user, exactly where they are – Average dwell time is about one minute

9. www.eyeblaster.com [index] BRAND RESPONSE ADVERTISING  Negates need for user to leave the publisher site  Provides greater real-estate and file size for interactivity  Publishers benefit from co-branding opportunities  Provides a fully measurable, immersive brand experience  More interactions means better ROI analysis  Can be fully integrated with client’s site back-end  Delivers content direct to the user where they are  Offers choice to the 90%+ users who don’t click-thru  Results prove interaction overrides typical ad timeout … Enhanced Experience For Users For Clients For Publishers … Meaningful Metrics … Permanent Presence

10. www.eyeblaster.com [index]  Engagement – Post Impression Activity (Sub-Conscious Acknowledgement)  Impression – No Awareness (No Conscious Acknowledgment)  Click-Thru – Post-Click Activity (Conscious Acknowledgement)  Interaction – Pre-Click Activity / Post-Interaction (Active Involvement) RESPONSE: SHADES OF GREY  Call to Action – Required Response (Conscious Decision) – Information Request / Data Capture / Physical Purchase

11. www.eyeblaster.com [index] PRE-CLICK INTERACTIVITY TRACKING  BEST PRACTICE: Track all elements in an ad Get a full view of your campaign success Test Drive Brochure Request More Information Main Click Rotate

12. www.eyeblaster.com [index]

13. www.eyeblaster.com [index] JUSTIFY YOUR CAMPAIGN SUCCESS

14. www.eyeblaster.com [index] MUD SLINGING A.Don’t own a Honda but have seen the TV ads C.Recently downloaded a Honda brochure B.Already own a Honda and actively looking to replace D.Has just had a test drive…

15. www.eyeblaster.com [index] PLAN YOUR NEXT MOVE

16. www.eyeblaster.com [index]  KEY FACT: Data Capture regularly achieves higher uptake on Mail Portals  11% of initial respondents went on to give further details in subsequent screens  1% started process – same as clicked thru  Higher rates could have been achieved if the data request fields were higher

17. www.eyeblaster.com [index] CHALLENGING PERCEPTIONS  Deliver content to the user without the need to leave the publisher’s site  Work with publisher’s in-page units to draw user’s eye from content to ad  Adopt more interactive functionality e.g. behavioural to complement video  Push the brand experience and expect shortened conversion cycles  Don’t trust click-thru as a way of justifying campaign success  Find metrics to measure campaign success from Branding to Response  Be prepared to justify a 0% CTR! The changing face of online advertising

18. THANK YOU your time is appreciated A copy of this CD is available upon request

19. www.eyeblaster.com [index]

20. www.eyeblaster.com [index] MEDIA: CONSUMPTION TRENDS  TV USE: 4.5 hrs per day (or 135 hrs mth)  WEB USE: 2 hrs per day (or 60 hrs mth) – 40 % – 2hrs per month of web use is now spent watching online video – 1 Day – 27% of Internet Users view online video weekly – 51% view online video monthly  Web usage is evenly spread across the day – Second only to TV which is slightly higher in evening – Dominates TV in at-work media use  20% crossover of people consume TV and web media simultaneously  Web users tend to have higher spending power over TV users Source: OPA Media Consumption, Q2 / 2006; eMarketer 10 / 2005 & 06 / 2006 Consumer’s use of media is changing

21. www.eyeblaster.com [index] VIDEO: A POWERFUL BRANDING TOOL Online video has shown to uplift branding by up to 5x Source: Dynamic Logic Marketnorms, Q4 / 2005, CNET 06 / 2006  Online brand advertising predicted to surpass search in 2007 – Up 25% in 2006 to $11.7 billion

22. www.eyeblaster.com [index] BROADBAND: PENETRATION STATISTICS  UK: 28.4M Internet users – 60% are currently broadband users  WEST EUROPE: 188.1M Internet users – 38% are currently broadband users  NORTH AMERICA: 193.9M Internet users – 62% are currently broadband users  ASIA-PACIFIC: 315.4M Internet users – 25% are currently broadband users  WORLDWIDE: 845.4M Internet users – 23% are currently broadband users Penetration will rise by further 20% in 2007 Source: eMarketer, 05 / 2006 % OF BROADBAND HOUSEHOLDS

23. www.eyeblaster.com [index] VIDEO: SPENDING IS ON THE RISE Source: eMarketer, 11 / 2005 Predicted to be more than $1.5 Billion in US by 2009  Eyeblaster delivered more than 12,000 video ads in 2005  Video made up 40% of total ad delivery – Up from 9% in 2004

24. www.eyeblaster.com [index] VIDEO: THE POWER OF RICH MEDIA  On average 70% of all video ads are viewed  Average length of time video is viewed is 21 seconds  Of consumers who have seen a product advertised in an online video ad: 31% Checked out a related website 14% Requested more information 14% Went to a store to see the product 10% Forwarded an ad 8% Made a purchase Video prompts user’s into action Source: OPA Video Study, Q1 / 2006

25. www.eyeblaster.com [index] PUSHING USER APPLICATIONS Viral mechanism Voting, user participation Before & AfterBiosUnique content –Serving the content in user-initiated layers allows a rich brand experience as well as the means to measure those interactions in multiple ways