1. RHYTHM QUARTERLY INSIGHTS
Q3, 2011
PREVIOUS QUARTERLY REPORTS AVAILABLE AT WWW.RHYTHMNEWMEDIA.COM
ALL RIGHTS RESERVED. ATTRIBUTION REQUIRED FOR PUBLICATION OF ANY DATA PROVIDED IN THIS REPORT.
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2. ABOUT THIS REPORT
Data points are based on ads served across iPhone, iPod Touch, iPad, Android and other devices in the US market. The
data points cover ad campaigns from over 200 Fortune 500 brands in 2011, and over 125 in Q3 2011 alone.
About Rhythm
Rhythm connects brand advertisers with highly engaged mobile audiences by selling and serving video, rich media and
other immersive advertising. Rhythm has partnered with more than 50 premium media companies, typically on an
exclusive basis, across an unparalleled portfolio of 200+ properties to deliver meaningful brand advertising within the
highest quality content for targeted, relevant audiences. Our premium media partners include NBC Universal, CBS,
Sony, ABC, Fox, Warner Bros., IAC, Demand Media and many others. In 2011 alone, more than 200 top brand advertisers
including P&G, Unilever, Disney, Paramount, General Motors, Ford, AT&T, Verizon, Macy's, Marriott and Microsoft have
run campaigns with Rhythm and achieved unprecedented engagement results.
The metrics provided herein are solely representative of Rhythm’s collection of premium properties and may not reflect the overall ecosystem for similar ads.
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3. DEFINITIONS
! In-Stream Mobile Video Ads: Appear in the context of a video, as a commercial
break in full episodes or before videos clips
! Interactive Pre-Roll Mobile Video Ads: Appear at app launch, between game
levels and other screen changes
! Premium Media Properties: Apps and mobile websites from well known
companies such as NBC Universal, CBS, Sony, ABC, Fox, Warner Bros., IAC,
Demand Media, etc
! Contextually Relevant Advertising: Advertising in which the content of an ad is in
direct correlation to the content of the app or mobile website being viewed
! Brand Advertising: Advertising that aims to drive brand identity, awareness,
preference and demand
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4. SUMMARY
1. In-Stream mobile video ads outperform online video ads (p 5)
2. In-Stream mobile video ad completion rate remains at 87%, and high
across ad categories (p 6-7), and varies between 81% and 91% by device
(p 8)
3. Premium media properties achieve a 51% higher completion rate for
Interactive Pre-Roll video ads compared to the norm (p 9)
4. Smartphone & tablet mobile video viewing is occurring almost evenly
throughout the 24 hours of the day (p 10-11)
5. Contextually relevant ad placement increases engagement by 37.5%
over the norm for full page ads (p 12)
6. The top advertiser categories in mobile brand advertising, in order, were
entertainment, CPG, technology, auto and telecom (p 14)
7. Wi-Fi driving iPhone & iPad video viewing, 3G/4G fueling Android (p 15)
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5. IN-STREAM VIDEO ADS OUTPERFORM ONLINE
90%
87%
85%
Average In-Stream Completion Rate
80%
75%
72%
70%
65%
60%
55%
50%
Online Mobile (Rhythm)
In-Stream video ads appear as a commercial break in full episodes or before video clips
Online Source: Yume, 2011.
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6. RHYTHM’S IN-STREAM VIDEO AD COMPLETION
REMAINS STEADY OVER LAST FIVE QUARTERS
87%
AVERAGE IN-STREAM VIDEO AD COMPLETION RATE
6
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7. IN-STREAM VIDEO AD COMPLETION HIGH ACROSS
AD CATEGORIES
95.0%
Category High
Category Average
Average In-Stream Completion Rate
91.0%
87.0%
83.0%
79.0%
75.0%
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8. IN-STREAM COMPLETION RATE VARIES BY DEVICE
95%
91%
88%
Average In-Stream Completion Rate
88%
84%
81%
81%
74%
67%
60%
Android iPad iPhone iPod Touch
8
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9. INTERACTIVE PRE-ROLL COMPLETION RATES 51%
HIGHER IN PREMIUM MEDIA PROPERTIES
!"#$%&'()$*+%$,-.//*
30.0%
27.0%
Interactive Pre-Roll Completion Rate
25.0%
20.0%
17.9%
15.0%
10.0%
5.0%
0.0%
Average Average in Premium Media Properties
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10. MOBILE VIDEO VIEWING EVENLY SPREAD
THROUGHOUT THE DAY
01&%#23."$4*
6.0%
5.0%
Median Hour: 4.6%
% of Overall Daily Usage
4.0%
3.0%
2.0%
1.0%
0.0%
10
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11. IPAD VIDEO VIEWING SLIGHTLY HIGHER IN
EVENINGS
7.0%
iPad
Smartphones
6.0%
5.0%
Median Hour: 4.6%
% of Overall Daily Usage
4.0%
3.0%
2.0%
1.0%
0.0%
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12. AD CONTEXT MATTERS: FULL PAGE AD UPLIFT OF
37.5% IN RELEVANT CONTEXT*
56//*+&7$*894*
9.0%
7.7%
6.0% 5.6%
Engagement Rate
3.0%
0.0%
Average for Entertainment Properties Average for Contextually Relevant Ads in Entertainment
Properties
*Entertainment, automotive and CPG advertising campaigns running within
entertainment properties
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13. INVESTMENT INTO MOBILE BRAND ADVERTISING
ACROSS AD CATEGORIES
25.0%
20.0%
% of Total Campaigns in Q3
15.0%
10.0%
5.0%
0.0%
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14. WI-FI DRIVING IPAD & IPHONE VIDEO VIEWING,
ANDROID RELIES MORE ON CELLULAR NETWORKS
iPad iPhone Wi-Fi Android
Cellular
98% WI-FI 55% WI-FI 35% WI-FI
14
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