Exponential Unveils Findings from Online Video Advertising Study

First-ever Research Project Taps Media Planners and Buyers for Insights into Buying Ads on Internet Video

EMERYVILLE, CA –March 19, 2008 – Exponential™ Interactive, Inc., the technology-driven media services company that delivers innovative products and services to meet the demands of advertisers and publishers, today released research about buyer perceptions of online video advertising. In an unprecedented industry move, Exponential employed a research study of 100 premier advertising agency media planners and buyers to better understand the barriers to buying and delivering video ads on the Internet.

Exponential’s research revealed several significant findings, most notably, the difference between those who have and have not purchased online video. Experience buying video changes perceptions of the format greatly — those who have purchased and run online video campaigns are most concerned with operational issues and the smooth delivery of campaigns. Those who have not yet bought appear to be questioning the end user’s overall experience.

“As a leader in online advertising, it is incumbent upon us to understand the thinking around buying online video. This research confirms the complexity of executing an online video buy at scale, and reveals many of the challenges the industry still needs to resolve in order to effectively support advertisers,” said Dilip DaSilva, Exponential’s founder and CEO. “The insights reveal opportunities for new innovation, as well as the need for standardization and education to meet the demands of the marketplace and advance the industry overall.”

Additional conclusions from the research:

* Pre-roll still remains the dominant, most commonly used format. Buyers do not perceive it as too intrusive, as some have reported.
* High prices for top tier video placements, often cited as a barrier, are a distant concern behind content quality, targeting capabilities, branding opportunities and reporting.
* Despite the buzz about the lack of standardization in online video metrics, those who have bought online video on average use three types of measurement: unique viewers who viewed ads, clicks/cost per click and length of time spent viewing ads. They report satisfaction with these metrics.

This research also provides insights into how agencies can leverage video, and what providers need to do to make the buying experience easier. Additionally, the detailed data compiled in Exponential’s study produced a consensus among advertisers about the need to create standards for online video advertising. Standards for buying, creating and measuring online video ads are essential to industry growth, removing barriers to widespread adoption of video as part of the online marketing mix.

Exponential employed third-party vendor, iModerate®, to conduct the online survey using a hybrid interviewing technique to collect qualitative and quantitative data. There were 100 completed surveys and several dozen chats conducted with advertising/media agency executives who met the following criteria:

* Their advertising or media agency must be involved in online/interactive advertising
* Their company must have online media department and respondent must be part of the department
* Must be the decision maker/participate in a decision in regards to purchasing media for online advertising campaigns
* 50 respondents have purchased/influenced the purchase of online video ads in the past 12 months

“The good news is that media planners who have tried online video as part of their campaigns have found it to be a valuable tool to reaching critical audiences. As an industry, we just need to make it possible for more people to try it,” DaSilva added.

According to eMarketer, video ad sales are expected to grow from an estimated $775 million in 2007 to $3.1 billion in 2010 and then to $4.3 billion in 2011. In addition, a Forrester Research study found that more than half of adults (53% of consumers 18 and older) say that they view online video.

About Exponential™ Interactive, Inc.

Exponential™ is a technology-driven media services company that delivers innovative products and services offering various types of digital marketing to meet the demands of advertisers and publishers. Representing over 1,500 of the key vertical publishers, and as the partner of choice for many of the world’s leading advertising agencies and advertisers for their online campaigns, the company offers a fully integrated suite of online advertising solutions, including brand and CPM advertising, performance marketing, lead generation, local search, online shopping portal and contextual solutions.

Each of Exponential’s businesses – Tribal Fusion®, FullTango™, LeadGenuity®, EchoTopic™ – brings state-of-the-art optimization technology and expertise, generating 30 billion online ad impressions per month, reaching 75% of the US Internet and 230 million consumers worldwide.

Exponential™ Interactive, Inc. is privately held and headquartered in Emeryville, CA and has offices throughout the United States and in London and India. For more information, please call 510.250.4018 or visit: http://www.exponential.com