Rhythm Q Mobile Video Advertising Report

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1 Rhythm Q Mobile Video Advertising Report Rhythm releases statistics from their leading mobile video ad network every quarter All previous reports available at

2 Overview This report provides Q mobile video advertising metrics from the Rhythm mobile advertising network. Data reflects ads shown over 325 million average monthly views in Q2, on iphone, ipod Touch, ipad and Android devices in the US market. Rhythm s publisher network includes top broadcast TV networks, 10 of top 25 cable networks, the largest news agency, and leading entertainment news, games, sports, breaking news, lifestyle, music sites and more. From Q1 to Q2, Rhythm s average monthly content views grew 30%. The data is based on ad campaigns from over 75 Fortune 500 brands, including 14 of the top 20 US advertisers. Advertising units include: Interactive Pre-Roll Video Interactive Full-Page Interactive App Launch Interactive Banner The metrics provided herein are solely representative of the Rhythm mobile advertising network and may not reflect the overall ecosystem for similar ads Rhythm NewMedia, Inc. All rights reserved. Attribution required for publication of any data provided in this report. 2

3 Summary of Q2 Insights 1. Rhythm s network grew 30% in Q2, significantly faster than industry forecasts for mobile video. According to e-marketer, mobile video viewers in the US will grow nearly 30% for all of (Source: e-marketer, August 3, 2010) 2. Mobile video viewing continues to be spread throughout the day unlike TV, which has a large spike during prime time. 3. For Android devices, mobile video viewing occurs mostly on 3G networks with 72% over 3G and 28% over WiFi. For iphones, mobile video viewing is split more evenly, with 56% over 3G and 44% over WiFi. 4. Viewing time for full episodes increased 20% quarter over quarter. After starting to view a full length episode (typically 45 minutes), 26.5% watched the entire episode and 41% watched at least half of the episode. 5. Completion rates for interactive pre-roll video ads remains high at 88%, better than both online video and television. 6. Average clickthrough rates remain high, but with a large variation as seen in the 2.4% to 11.2% range on full page ads. Rhythm provides advertisers with best practices for achieving high clickthrough rates. For example, banner ads and full page ads packaged with interactive pre-roll video ads yield clickthrough rates 45% and 50% higher, respectively, than campaigns without pre-roll video. 3

4 Mobile Video Viewing Remains Spread Throughout the Day Time of day viewing patterns are similar to Q1 8.0% Video Usage by Hour of Day % of Overall Daily Usage 6.0% 4.0% 2.0% Median Hour: 4.6% 0.0% 6:00 AM 7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12 Noon 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM 10:00 PM 11:00 PM Hours 12 Midnight 1:00 AM 2:00 AM 3:00 AM 4:00 AM 5:00 AM 4

5 Mobile Video Viewing by Hour: 3G vs WiFi During the evening WiFi usage is greater than 3G 8.0% % of Overall Daily Usage 6.0% 4.0% 2.0% WiFi 3G 0.0% 6:00 AM 7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12 Noon 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM 10:00 PM 11:00 PM Hours 12 Midnight 1:00 AM 2:00 AM 3:00 AM 4:00 AM 5:00 AM 5

6 Network Mobile Video Viewing Over 3G and WiFi Mobile video viewing is roughly split across 3G and WiFi networks Total Network 3G 53% 47% 6

7 Android & iphone Mobile Video Viewing Over 3G and WiFi Android users rely more heavily on 3G networks when watching video Android Only iphone only 3G 3G 72% 28% 56% 44% 7

8 Video Viewing Higher on Apps with Full Episodes Full episode viewing time up 20% quarter over quarter :35 Average Monthly Video Minutes per Unique Visitor Monthly Minutes per Unique Visitor :30 :25 :20 :15 :10 :5 :0 Q1 Q2 Apps With Full Episodes Q1 Q2 Apps with Video Clips After starting to watch a full length episode, 26.5% of users watched the entire episode and 41% of users watched at least half of the episode 8

9 Ad Units Covered in Report Interactive Pre-Roll Video App Launch Ad demo Tap on pre-roll to interact with ad without leaving the app Integrated in-app interactions on all Rhythm ad units can tap to anything A premium and interactive brand experience for media, games, utilities and more 9

10 Ad Units Covered in Report (continued) Full-Page Ad Banner Engaging and interactive ads placed between photos, game levels, news and more Static, animated or expanding display units for any type of content 10

11 High Completion Rates for Interactive Pre-Roll Ads Completion rate grew quarter over quarter by 1.2% Pre-Roll Video Ad Completion Rates for Total Network 87.9% % Viewed 50-74% Viewed 25-49% Viewed 0-24% Viewed 11

12 Q2 Clickthrough Rate Ranges by Ad Unit Average clickthrough rates remain high, but with a large variation Q2 Clickthrough Rates Full Page 2.4% Average 6.2% 11.2% App Launch 3.2% Average 7.5% 12.9% Pre-Roll Video 0.8% Av. 1.3% 2.0% Banner 0.2% 1.4% Av. 0.4% 0% 2% 4% 6% 8% 10% 12% 14% Clickthrough Rate 12

13 Q2 Clickthrough Rates Across Ad Campaigns Display ads have higher clickthrough rates when packaged with pre-roll video Data Shown For Consumer Package Goods, Travel, Entertainment and Food & Beverage Campaigns Clickthrough Rate 0.6% 0.4% 0.2% 0.0% Only Banner Ads 45% increase 50% increase Banner Ads Packaged with Pre-Roll Video Ads Clickthrough Rate 8% 6% 4% 2% 0% Only Full Page Ads Full Page Ads Packaged with Pre-Roll Video Ads Clickthrough rates on display ads improved significantly on campaigns that included interactive pre-roll video ads packaged with banner ads and/or full page ads 13

14 About Rhythm NewMedia Rhythm NewMedia is the leading mobile video ad network. Rhythm monetizes premium mobile apps and websites through a combination of our superior ad technology and national sales team. Rhythm's mobile ad units create more value for publishers and brand advertisers by combining the brand engagement and visceral nature of television with the interactivity and targeting of online media. Rhythm s ad server optimizes revenue through dynamic targeting and pacing. Rhythm s rapidly growing network averaged 325 million monthly content views in Q2 from top broadcast TV networks, 10 of top 25 cable networks, the largest news agency and leading entertainment news, games, sports, breaking news, lifestyle, music sites and more. Eight of top 10 US advertisers and 14 of top 20 US advertisers, including over 75 Fortune 500 brands have recently run campaigns on our network. For more information and example publishers and advertisers, please visit: For more information on becoming one of Rhythm s publishers, please contact Benjamin Dorr, VP, Business Development: To advertise on Rhythm s network, please contact: For questions regarding this report, or for recommendations for future reports, please contact Lisa (Friedrichs) Abramson, Director of Marketing, 14

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