optimizing your video ad placement quality to earn more revenue monetizing video content in a site list world Publishers can choose from an array of video ad sources when looking to monetize video inventory. Since most of these options offer similar features and benefits, it can be difficult for publishers to identify the optimal video ad source that allows them to generate the most revenue. In addition, video advertising, as compared with display, requires publishers to take additional factors into consideration. Most publishers will need to monetize across multiple platforms, and advertisers investing in digital video are typically name brand advertisers who are concerned with results beyond standard display metrics, such as establishing brand credibility and increasing brand lift. Even after selecting an ad source, publishers have limited opportunities to differentiate themselves to attract premium advertisers, as site lists often significantly overlap. However, since no two publishers have the same content, shouldn’t video advertising be optimized and relevant for each specific publisher? And shouldn’t publishers with more attractive content and a better user experience be rewarded with higher quality advertising and more ad revenue? The specific ad placement and context are crucial to ensure that both advertisers and publishers achieve high-quality ad placements. If a video ad is not relevant to its surrounding content, viewers will be more inclined to disengage and leave since it won’t make contextual sense to them. YuMe | Optimizing Your Video Ad Placement Quality to Earn More Revenue 2 partnering with YuMe Key considerations for publishers during the vendor selection stage ultimately relate to finding the solution that can deliver the most revenue and the most relevant ads, which is typically facilitated by high CPMs. In addition to offering competitive net CPMs to publishers, YuMe provides an industry-first publisher opportunity available through its proprietary technology: video ad placement quality for digital video properties, which quantitatively matches your audience with advertisers. This allows for greater relevancy, higher engagement and ultimately more revenue for publishers. YuMe takes a customized approach and ensures that each digital video environment is paired with the most relevant ad. This creates user experiences that fit quality name-brand advertising seamlessly into publisher content, making viewers more likely to continue engaging with the original publisher content following the ad and yielding maximum performance and revenue for publishers. SITE LIST vs. YUME’S CUSTOMIZED APPROACH EXAMPLE THE SITE LIST WAY YuMe’s PLACEMENT QUALITY WAY Ad gets matched with the sports site list and can run on any publisher’s site from the list Ad gets matched with the most relevant digital environment specific to each publisher SPORTS EQUIPMENT ADVERTISER Sports Blog Specific post re: equipment Sports Equipment Overall site SPORTS EQUIPMENT ADVERTISER Sports Site List Sports Blog Sports News Sports Retail Sports Equipment Sports... Sports... Sports... Sports... Sports Retail Video demo on equipment purchase page Sports News Article re: team’s equipment technology YuMe | Optimizing Your Video Ad Placement Quality to Earn More Revenue 3 YuMe’s placement quality technology In order to determine the optimal placement of video ads across digital properties, YuMe’s placement quality technology includes a proprietary algorithm that analyzes various factors in real time, including (but not limited to) the following: publisher content, video player location and size, device/screen type, video completion rate, brand campaign objectives, ad spend and brand context. Using this real-time data, YuMe’s technology regularly monitors and scores each publisher video location, which is aggregated into a normalized index score across the YuMe network. This score is never revealed, so publishers cannot be compared with one another; rather, YuMe uses these scores as part of the YuMe platform engine to determine the best placement for each ad decision to ensure that publishers are always matched with and running the most optimal ads for their digital ad placements across all platforms. YUME’S PLACEMENT QUALITY ALGORITHM f ( )= Video Player Size Player Location Contextual Relevance Video Completion Rate Device/Screen Brand Campaign Objectives Ad Spend Ad Campaign A Ad Campaign B Brand A Brand B Ad Campaign C PUBLISHER PLACEMENT YuMe | Optimizing Your Video Ad Placement Quality to Earn More Revenue 4 publisher benefits Publishers who take advantage of YuMe’s placement quality technology have the potential to earn much more revenue. First, the placement quality technology is offered as a premium feature, which means that publishers earn higher CPMs from advertisers investing in placement quality. This is because advertisers are willing to pay more to ensure that they are not wasting any of their ad spend on ineffective impressions and that their ads are running on publisher properties from the Connected Audience Network with brandreceptive content. Secondly, YuMe technology calculates a quality score for all publisher digital video players and prioritizes those with relevant, brand-receptive video-viewing experiences. This means that properties with larger video players that are completely in view and brand-receptive content are deemed as more ideal user experiences and thus prioritized to match with and serve higher-CPM brand campaigns. This prioritization also increases fill rate for high-scoring publishers since their digital video environments will continue to be regularly recommended to serve advertising from the Connected Audience Network. Other key publisher benefits from YuMe’s placement quality technology include the following: – Higher video completion rates (VCR): recent research matching 10 campaigns for major travel and telecom brands utilizing the placement quality technology against the same 10 campaigns without said technology showed that ad campaigns with the technology yielded a 215 percent lift in engagement and a 90 percent lift in VCR compared to non-optimized campaigns. • The allocation capability from YuMe’s placement quality technology allows publisher content to be matched with the right brands. These metrics indicate greater overall viewer interest in the publisher content and ad experience and thus show an increased likelihood that viewers will stay and engage with publisher content following the ad. PERCENTAGE LIFT FROM YUME’S PLACEMENT QUALITY TECHNOLOGY VIDEO COMPLETION USER ENGAGEMENT 90% 215% ©2012 YuMe. All rights reserved. Confidential. YuMe | Optimizing Your Video Ad Placement Quality to Earn More Revenue 5 – P ublishers with multiple digital video properties can leverage YuMe’s placement technology and optimize the video ad placement for each individual player across multiple platforms, including online, smartphone, tablet and connected TV. – Y uMe’s placement quality technology comes as part of the YuMe SDK, which means that additional integration work is not required to take advantage of it, and publishers can concurrently access all other YuMe SDK benefits, including the ability to serve custom ad units, screen agnostic ad fill, third-party-aligned reporting that meets publisher expectations and much more. how publishers can maximize placement quality Due to the nature of the placement quality algorithm, there are several action items that publishers can proactively take to positively affect their scores in order to take full advantage of YuMe’s cutting-edge technology and increase brand receptivity. This includes the following: Integrating the YuMe SDK into all digital video properties. Ensuring video players and content are in prominent, visible locations. Increasing the size of the video players. Limiting any auto-play functionality. Providing key-value information to YuMe about content preceding, following or surrounding the video ads. Designing an associated companion banner to create greater branding opportunities for advertisers. Communicating consistently with a YuMe Publisher Account Manager. YuMe has raised industry standards with its placement quality technology by offering publishers the most effective contextual relevance capabilities in video advertising. Through YuMe’s SDK technology, the placement quality technology gives publishers prioritization to serve higher CPM brand campaigns, increased potential of higher video completion rates, video ad optimization specific to individual digital video properties across multiple platforms, and ultimately the assurance that every video ad impression will yield engaged audiences and greater potential fill rates and revenue. Best of all, publishers who use the YuMe SDK get these and all other YuMe SDK benefits with no extra effort! YuMe | Optimizing Your Video Ad Placement Quality to Earn More Revenue 6 about YuMe YuMe is the software infrastructure provider powering digital video and the next generation of television with its operating system for TV 2.0. Its video advertising technology and services seamlessly connect advertisers, app developers, content distributors, consumer electronics manufacturers and publishers across the globe. YuMe’s patent-pending Relevance Engine powers its premium in-stream video ad network, the YuMe Connected Audience Network and its industry leading advertising management solutions, ACE for Publishers and ACE for Advertisers. The YuMe Relevance Engine matches the right ad to the right audience on whatever screen they are viewing – PC, mobile or connected TV. YuMe is a privately held company headquartered in Redwood City, CA with its European headquarters in London. The company is backed by Accel Partners, BV Capital, DAG Ventures, Intel Capital, Khosla Ventures, Menlo Ventures, Samsung Ventures and Translink Capital. Contact us to learn how you can best monetize your video assets. publishers@yume.com YuMe | Optimizing Your Video Ad Placement Quality to Earn More Revenue 7