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The guy in the ofïŹce cubicle is coping with stress by seeking
                                      out entertaining videos on YouTube and then sharing them with
                                      his buddies on Facebook and Twitter – so the idea is to market
                                      to that need.
                                                                                             – Phillip Underhill
                                                                              Executive Creative Director, Videasa




                                                                          2
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
THE FOLLOWING CONTENT IS AVAILABLE UPON REQUEST:
                  SURVEYTEAM@VIDEASA.COM




                                                          3
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
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COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
For starters, we almost canceled the project. After   we watched America’s ïŹrst YouTube presidential
               all, YouTube and the mega-research ïŹrms were          election unfold, we were ïŹ‚oored by the number of
               cranking out daily news releases with data that       online video clips that were appearing in television
               proved online video was important. That it was big.   news broadcasts.
               That you could not escape it’s inïŹ‚uence. Sigh.
                                                                     The “Crowd” (some of us included) apparently
               It was on election day, November 4, 2008, that we     produced more content than the campaigns and
               decided to move forward with this study. As           news organizations combined. Suddenly, Americans
                                                                     had a user-generated alternative to mass media
                                                                     political coverage.

                                                                     We were faster. We were more entertaining. We          76.8 percent of the total U.S. Internet
                                                                                                                            audience viewed online video (January
                                                                     were honest. We were undeniable.                       2009).
                                                                                                                            The average online video viewer
                                                                     No, we did not need any more proof that online         watched 356 minutes of video
                                                                                                                            (approximately 6 hours), up 15 percent
                                                                     video was important. But what remained                 versus December.
                                                                     unanswered was critical to our future as an online     100.9 million viewers watched 6.3
                                                                                                                            billion videos on YouTube.com (62.6
                                                                     video content agency. If the Collective Content        videos per viewer).
                                                                     Generation is viewing and uploading millions of        54.1 million viewers watched 473
                                                                                                                            million videos on MySpace.com (8.7
                                                                     video clips everyday on just about every subject       videos per viewer).
                                                                     under the sun, how should marketers respond?           The duration of the average online
                                                                                                                            video was 3.5 minutes, up from 3.2
                                                                                                                            minutes per video in December.
                                                                     Thus, we decided to ask marketers to forecast          The duration of the average online
                                                                                                                            video viewed at Megavideo was 24.9
                                                                     ways in which online video could be used to reach      minutes, higher than any other video
                                                                     and inïŹ‚uence the 150 million people who watch an       property in the top ten.
                                                                     average of 96 online videos every month .




                                                                                                                                                                      ink
                                                                                                                                                                      bl
                                                                                                                                                                  we
                                                                     The response was tremendous. The insights were
                                                                     ground-breaking. The business case lessons and
                                                                     corresponding recommendations could save the
                                                                     average marketer thousands of dollars and reduce
                                                                     the learning curve by several years.

                                                                                    5
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
“Web videos can help a brand slip into a consumer's
                                                                                                                buddy list kinda sideways by offering something in the
                                                                                                                way of entertainment or helpful information that does
                                                                                                                not smell like a sales pitch - and may hardly mention
                                                                                                                the product or service the brand sells.” –New York City




               There are many reasons why online                      way to increase productivity, it can be
               video is popular: bandwidth and                        understood in terms of facilitating
               t e c h n o l o g y d r i v e r s a s i d e , i t ’s   social interactions. From this frame of
               informative, entertaining and easily                   reference, humans (not consumers) are
               accessible at home, work and on the                    exploring new forms of self expression
               road. We have created buzzwords like                   and new forms of community.
               “video snacking” to describe its place
               in the ad-avoiding, time-shifting,                     All of this of course, has immediate
               screen-shifting, on-demand, user-                      implications – which brings us to the
               centric digital ecosystem. All certainly               heart of this research: people are
               valid when analyzing human behavior                    demanding content that is contextual,
               through the lens of technology.                        mobile and entertaining enough to be
                                                                      shared with friends and co-workers in
               Perhaps of greater use to marketers is                 any one of the multiple social
               understanding how online video ïŹts                     networking spaces they visit, create
               into today’s social context. This                      and/or maintain.
               requires a different perspective.
               Instead of viewing the internet as a




                                                                                         6
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
The economy is a key driver of content
                                                              consumption among today's on-demand digital
                                                              consumers.
                                                              Marketers overwhelmingly agree that audiences
                                                              are attracted to entertaining video clips that
                                                              provide an escape or resolve an immediate, vexing
                                                              need.
                                                              For audiences seeking an escape, video clips that
                                                              serve up humor and/or feature outrageous,
                                                              scandalous or tantalizing stories quickly achieve
                                                              conversation status in social networks.
                                                              For the person determined to solve a nagging
                                                              problem, video is the perfect on-demand remedy;
                                                              delivering the resolution with an entertaining or
                                                              unexpected twist can increase replay and word of
                                                              mouth propensity.




                                                          7
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
The message has been ïŹ‚attened and is no longer        Popular web videos are today’s new Superbowl
                               static.                                               commercials - except they happen every day in the
                                                                                     form of short, entertaining video clips.
                               The New York Times is no longer 'the' mass media
                               authority on news, politics, culture and              The players - the Superbrands who reach great
                               entertainment. Brands are no longer the single        conversation heights online and ofïŹ‚ine - have
                               mass media source of information about its            procured the talent and resources necessary to
                               products and services.                                generate branded video content that people talk
                                                                                     about, share and recall favorably.
                               Today, consumers exert signiïŹcant inïŹ‚uence over
                               the publishing and distribution of content once       Superbrands have evolved to provide on demand
                               dominated by media giants, content kings and          service in an ultra-mobile economy where the
                               advertisers.                                          divisions between home, work and play time has
                                                                                     condensed or permanently altered.
                               The Age of Wikipedia has arrived and the
                               Collective Content Generation has seized control of   Superbrand marketers understand that consumers
                               the content, the message and the opinions in a        don't have a short attention span; they have a
                               manner so disruptive as to only be described as       short attention span for the perfectly crafted, dull,
                               the democratization of media.                         self-centered sales-pitch.
                               People want less advertising and more service;        Superbrands fully comprehend the reach and
                               self-serving ad spots devoid of infotainment will     impact that one short, catchy video clip can have if
                               fall short of potential marketing objectives.         it catches the attention of an active member of an
                                                                                     online social network.
                               In a ïŹ‚at world, people want something relatable
                               not aspirational, something to talk about by
                               reaching out and connecting on common ground.




                                                                                 8
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
It’s not a television; it’s a
                                                                                   52-inch digital display.
                                                                                                – Washington DC


               Marketers are increasingly aware that consumers are
               quickly accessing much of the same content on their
               television, personal computer and mobile smartphone.
               The most signiïŹcant disruption that will occur in 2009-2010
               is the realization by most consumers that their ïŹ‚at screen TV
               is not a TV at all; it’s an LCD computer display that can
               easily be connected to a small computer like the Mac Mini to
               access huge amounts of entertaining content.
               Marketers are largely unnerved by the pace at which
               consumers are time-shifting, location-shifting, screen-
               shifting and generally untethering content from the devices
               and channels they were originally designed for.
               Consumers are demanding content that is contextual, mobile
               and entertaining enough to be shared with friends and co-
               workers in any one of the multiple social networking spaces
               they create and maintain.
               Outgunned and outpaced, Superbrand marketers are
               creating content in the form of infotainment that users can
               access and re-distribute on-demand.




                                                                               9
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
This project was a two-phased                              websites. Questionnaire participants
               research study, which included a                           were randomly selected from a
               quantitative online questionnaire and                      nationwide database of 19,000
               qualitative online interview. The study                    marketing professional and generated
               surveyed a total of 409 respondents in                     a 1.2% response rate.
               December 2008 and January 2009.
                                                                          Interview participants (n = 181) were
               For the online questionnaire, 19,000 US                    selected via an online recruitment
               marketers were polled in December                          process targeting senior-level digital
               2008 and January 2009 to gain insights                     marketers in Seattle, San Francisco,
               on the drivers of video content                            Los Angeles, Houston, Chicago, Miami,
               consumption from the brand                                 Washington DC and the New York City
               marketer’s perspective. Given the                          vicinity. Interview respondents were
               current economic climate, we framed                        asked to formulate predictions on how
               attitudinal and intent questions in                        web video would be used based on
               terms of online video’s ability to (1)                     current trends in online video
               attract prospects and (2) increase                         marketing and greater social and
               revenue on corporate and third-party                       cultural trends.

                                                 SURVEY LANDSCAPE: DIGITAL MARKETING HOT-SPOTS




                                                                                                 10
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
11
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
80%
                                                                                                                   “Our brand can repurpose content
                                                                                                                   made by online users”


                                                                                                                   77%
                                                                                                                   “Video clips on our website can
                                                                                                                   increase sales”


                                                                                                                   71%
                                                                                                                   “With the right kind of video, we can
                                                                                                                   turn YouTube into an effective sales
                                                                                                                   channel”


                                                                                                                   84%
                                                                                                                   “2009 is the year for online video”




                                                                                         19,000 US marketers were polled in December 2008 and January 2009 to gain insights on
                                                                                         the drivers of video content consumption from the brand marketer’s perspective. Given the
                                                                                         current economic climate, we framed attitudinal and intent questions in terms of online
                                                                                         video’s ability to (1) attract prospects and (2) increase revenue on corporate and third-
                                                                                         party websites. Questionnaire participants were randomly selected from a nationwide
           Question 1                                     Question 2        Question 3   database of 19,000 marketing professional and generated a 1.2% response rate.




                                                                       12
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
80%
                                                                                                                   “Our brand can repurpose content
                                                                                                                   made by online users”


                                                                                                                   77%
                                                                                                                   “Video clips on our website can
                                                                                                                   increase sales”


                                                                                                                   71%
                                                                                                                   “With the right kind of video, we can
                                                                                                                   turn YouTube into an effective sales
                                                                                                                   channel”


                                                                                                                   84%
                                                                                                                   “2009 is the year for online video”



                                                                                                                                Strongly Disagree
                                                                                                                                Disagree
                                                                                                                                Don’t Know
                                                                                                                                Agree
                                                                                                                                Strongly Agree


                                                                                         19,000 US marketers were polled in December 2008 and January 2009 to gain insights on
                                                                                         the drivers of video content consumption from the brand marketer’s perspective. Given the
                                                                                         current economic climate, we framed attitudinal and intent questions in terms of online
                                                                                         video’s ability to (1) attract prospects and (2) increase revenue on corporate and third-
            Question 4                     Question 5     Question 6        Question 7   party websites. Questionnaire participants were randomly selected from a nationwide
                                                                                         database of 19,000 marketing professional and generated a 1.2% response rate.




                                                                       13
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
tm



                                                                                               video for websites and beyond




                                                               Videasa is a digital video content agency that produces and
                                                               distributes viral videos, webisodes, mini documentaries and
                                                               infotainment for both blockbuster brands and savvy start-ups
                                                               looking to cut costs and increase revenue. By bringing together
                                                               viral marketers, studio professionals and experienced web
                                                               content producers, Videasa is able to offer marketers a
                                                               highly efïŹcient set of resources and services for today’s evolving
                                                               media landscape. With expertise and focus that falls outside of
                                                               the competency of the traditional digital agency, Videasa is able
                                                               to offer businesses targeted video content solutions
                                                               by harnessing the power of user generated video content to
                                                               create brand value and gather consumer insights.




                                                               Delphine Amato
                                                               Communications Director
                                                               OfïŹce: 888-883-1301, ext. 710
                                                               Mobile: (516) 472-8857
                                                               delphine@videasa.com




                                                          14
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
Videasa is a digital video content agency that produces and
       distributes viral videos, webisodes, mini documentaries and
       infotainment for both blockbuster brands and savvy start-ups
       looking to cut costs and increase revenue.

       By bringing together viral marketers, studio professionals and
       experienced web content producers, Videasa is able to offer
       marketers a highly efïŹcient set of resources and services for
       today’s evolving media landscape.



       NEW YORK, NY                           LOS ANGELES, CA            VIDEASA SALES       VIDEASA STUDIO
        1318 Madison Avenue                    350 Wilshire Blvd.        Terry Mullin        Sue Kim
        New York, NY 10128                     Beverly Hills, CA 90211   terry@videasa.com   sue@videasa.com
        888-883-1301                           323-908-2317              888-883-1301 X701   212-600-0743



                                                  tm



         video for websites and beyond




                                                                           15
COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.

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Online Video: Superpowered Ideas for Marketers (Synopsis Version)

  • 1. N SIO VER tm IS PS video for websites and beyond NO SY
  • 2. The guy in the ofïŹce cubicle is coping with stress by seeking out entertaining videos on YouTube and then sharing them with his buddies on Facebook and Twitter – so the idea is to market to that need. – Phillip Underhill Executive Creative Director, Videasa 2 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 3. THE FOLLOWING CONTENT IS AVAILABLE UPON REQUEST: SURVEYTEAM@VIDEASA.COM 3 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 4. 4 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 5. For starters, we almost canceled the project. After we watched America’s ïŹrst YouTube presidential all, YouTube and the mega-research ïŹrms were election unfold, we were ïŹ‚oored by the number of cranking out daily news releases with data that online video clips that were appearing in television proved online video was important. That it was big. news broadcasts. That you could not escape it’s inïŹ‚uence. Sigh. The “Crowd” (some of us included) apparently It was on election day, November 4, 2008, that we produced more content than the campaigns and decided to move forward with this study. As news organizations combined. Suddenly, Americans had a user-generated alternative to mass media political coverage. We were faster. We were more entertaining. We 76.8 percent of the total U.S. Internet audience viewed online video (January were honest. We were undeniable. 2009). The average online video viewer No, we did not need any more proof that online watched 356 minutes of video (approximately 6 hours), up 15 percent video was important. But what remained versus December. unanswered was critical to our future as an online 100.9 million viewers watched 6.3 billion videos on YouTube.com (62.6 video content agency. If the Collective Content videos per viewer). Generation is viewing and uploading millions of 54.1 million viewers watched 473 million videos on MySpace.com (8.7 video clips everyday on just about every subject videos per viewer). under the sun, how should marketers respond? The duration of the average online video was 3.5 minutes, up from 3.2 minutes per video in December. Thus, we decided to ask marketers to forecast The duration of the average online video viewed at Megavideo was 24.9 ways in which online video could be used to reach minutes, higher than any other video and inïŹ‚uence the 150 million people who watch an property in the top ten. average of 96 online videos every month . ink bl we The response was tremendous. The insights were ground-breaking. The business case lessons and corresponding recommendations could save the average marketer thousands of dollars and reduce the learning curve by several years. 5 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 6. “Web videos can help a brand slip into a consumer's buddy list kinda sideways by offering something in the way of entertainment or helpful information that does not smell like a sales pitch - and may hardly mention the product or service the brand sells.” –New York City There are many reasons why online way to increase productivity, it can be video is popular: bandwidth and understood in terms of facilitating t e c h n o l o g y d r i v e r s a s i d e , i t ’s social interactions. From this frame of informative, entertaining and easily reference, humans (not consumers) are accessible at home, work and on the exploring new forms of self expression road. We have created buzzwords like and new forms of community. “video snacking” to describe its place in the ad-avoiding, time-shifting, All of this of course, has immediate screen-shifting, on-demand, user- implications – which brings us to the centric digital ecosystem. All certainly heart of this research: people are valid when analyzing human behavior demanding content that is contextual, through the lens of technology. mobile and entertaining enough to be shared with friends and co-workers in Perhaps of greater use to marketers is any one of the multiple social understanding how online video ïŹts networking spaces they visit, create into today’s social context. This and/or maintain. requires a different perspective. Instead of viewing the internet as a 6 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 7. The economy is a key driver of content consumption among today's on-demand digital consumers. Marketers overwhelmingly agree that audiences are attracted to entertaining video clips that provide an escape or resolve an immediate, vexing need. For audiences seeking an escape, video clips that serve up humor and/or feature outrageous, scandalous or tantalizing stories quickly achieve conversation status in social networks. For the person determined to solve a nagging problem, video is the perfect on-demand remedy; delivering the resolution with an entertaining or unexpected twist can increase replay and word of mouth propensity. 7 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 8. The message has been ïŹ‚attened and is no longer Popular web videos are today’s new Superbowl static. commercials - except they happen every day in the form of short, entertaining video clips. The New York Times is no longer 'the' mass media authority on news, politics, culture and The players - the Superbrands who reach great entertainment. Brands are no longer the single conversation heights online and ofïŹ‚ine - have mass media source of information about its procured the talent and resources necessary to products and services. generate branded video content that people talk about, share and recall favorably. Today, consumers exert signiïŹcant inïŹ‚uence over the publishing and distribution of content once Superbrands have evolved to provide on demand dominated by media giants, content kings and service in an ultra-mobile economy where the advertisers. divisions between home, work and play time has condensed or permanently altered. The Age of Wikipedia has arrived and the Collective Content Generation has seized control of Superbrand marketers understand that consumers the content, the message and the opinions in a don't have a short attention span; they have a manner so disruptive as to only be described as short attention span for the perfectly crafted, dull, the democratization of media. self-centered sales-pitch. People want less advertising and more service; Superbrands fully comprehend the reach and self-serving ad spots devoid of infotainment will impact that one short, catchy video clip can have if fall short of potential marketing objectives. it catches the attention of an active member of an online social network. In a ïŹ‚at world, people want something relatable not aspirational, something to talk about by reaching out and connecting on common ground. 8 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 9. It’s not a television; it’s a 52-inch digital display. – Washington DC Marketers are increasingly aware that consumers are quickly accessing much of the same content on their television, personal computer and mobile smartphone. The most signiïŹcant disruption that will occur in 2009-2010 is the realization by most consumers that their ïŹ‚at screen TV is not a TV at all; it’s an LCD computer display that can easily be connected to a small computer like the Mac Mini to access huge amounts of entertaining content. Marketers are largely unnerved by the pace at which consumers are time-shifting, location-shifting, screen- shifting and generally untethering content from the devices and channels they were originally designed for. Consumers are demanding content that is contextual, mobile and entertaining enough to be shared with friends and co- workers in any one of the multiple social networking spaces they create and maintain. Outgunned and outpaced, Superbrand marketers are creating content in the form of infotainment that users can access and re-distribute on-demand. 9 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 10. This project was a two-phased websites. Questionnaire participants research study, which included a were randomly selected from a quantitative online questionnaire and nationwide database of 19,000 qualitative online interview. The study marketing professional and generated surveyed a total of 409 respondents in a 1.2% response rate. December 2008 and January 2009. Interview participants (n = 181) were For the online questionnaire, 19,000 US selected via an online recruitment marketers were polled in December process targeting senior-level digital 2008 and January 2009 to gain insights marketers in Seattle, San Francisco, on the drivers of video content Los Angeles, Houston, Chicago, Miami, consumption from the brand Washington DC and the New York City marketer’s perspective. Given the vicinity. Interview respondents were current economic climate, we framed asked to formulate predictions on how attitudinal and intent questions in web video would be used based on terms of online video’s ability to (1) current trends in online video attract prospects and (2) increase marketing and greater social and revenue on corporate and third-party cultural trends. SURVEY LANDSCAPE: DIGITAL MARKETING HOT-SPOTS 10 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 11. 11 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 12. 80% “Our brand can repurpose content made by online users” 77% “Video clips on our website can increase sales” 71% “With the right kind of video, we can turn YouTube into an effective sales channel” 84% “2009 is the year for online video” 19,000 US marketers were polled in December 2008 and January 2009 to gain insights on the drivers of video content consumption from the brand marketer’s perspective. Given the current economic climate, we framed attitudinal and intent questions in terms of online video’s ability to (1) attract prospects and (2) increase revenue on corporate and third- party websites. Questionnaire participants were randomly selected from a nationwide Question 1 Question 2 Question 3 database of 19,000 marketing professional and generated a 1.2% response rate. 12 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 13. 80% “Our brand can repurpose content made by online users” 77% “Video clips on our website can increase sales” 71% “With the right kind of video, we can turn YouTube into an effective sales channel” 84% “2009 is the year for online video” Strongly Disagree Disagree Don’t Know Agree Strongly Agree 19,000 US marketers were polled in December 2008 and January 2009 to gain insights on the drivers of video content consumption from the brand marketer’s perspective. Given the current economic climate, we framed attitudinal and intent questions in terms of online video’s ability to (1) attract prospects and (2) increase revenue on corporate and third- Question 4 Question 5 Question 6 Question 7 party websites. Questionnaire participants were randomly selected from a nationwide database of 19,000 marketing professional and generated a 1.2% response rate. 13 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 14. tm video for websites and beyond Videasa is a digital video content agency that produces and distributes viral videos, webisodes, mini documentaries and infotainment for both blockbuster brands and savvy start-ups looking to cut costs and increase revenue. By bringing together viral marketers, studio professionals and experienced web content producers, Videasa is able to offer marketers a highly efïŹcient set of resources and services for today’s evolving media landscape. With expertise and focus that falls outside of the competency of the traditional digital agency, Videasa is able to offer businesses targeted video content solutions by harnessing the power of user generated video content to create brand value and gather consumer insights. Delphine Amato Communications Director OfïŹce: 888-883-1301, ext. 710 Mobile: (516) 472-8857 delphine@videasa.com 14 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.
  • 15. Videasa is a digital video content agency that produces and distributes viral videos, webisodes, mini documentaries and infotainment for both blockbuster brands and savvy start-ups looking to cut costs and increase revenue. By bringing together viral marketers, studio professionals and experienced web content producers, Videasa is able to offer marketers a highly efïŹcient set of resources and services for today’s evolving media landscape. NEW YORK, NY LOS ANGELES, CA VIDEASA SALES VIDEASA STUDIO 1318 Madison Avenue 350 Wilshire Blvd. Terry Mullin Sue Kim New York, NY 10128 Beverly Hills, CA 90211 terry@videasa.com sue@videasa.com 888-883-1301 323-908-2317 888-883-1301 X701 212-600-0743 tm video for websites and beyond 15 COMMISSIONED BY VIDEASA.COM. ©2009 ALL RIGHTS RESERVED.