On August 12, 2009, Liveclicker and Smith-Harmon collaborated to deliver a webinar focused on the state of video in email marketing. The webinar touched on such topics as: - Concerns, attitudes, and expertise level of marketers seeking to learn more about video in email marketing - Forces driving video in email - Methods for achieving video in email - Video .GIF vs. Animated .GIF - CertifiedVideo (from Goodmail Systems) - Video .GIF pros and cons - List of which mail clients support video, by video inclusion method - Email client market share - Browser market share & video .GIF limitations based on browser - Which email clients block images by default - Several examples of email messages that include video - Video .GIF best practices - Example results - Common questions re: video in email

1. Video Email Marketing in 2009Facts, Stats, Limitations, Possibilities 2009 Liveclicker Video Commerce Webinar Series, Part III of III August 12, 2009 Lisa Harmon Principal and Co-Founder, Smith-Harmon Chair, User Experience Roundtable, Email Experience Council President, Email Marketing Best Practices Roundtable Justin Foster Co-Founder & VP Market Development, Liveclicker Founder & President, Video Commerce Consortium Founder, Email Marketing Best Practices Roundtable Tweet about this webinar using #videoemail Follow us on Twitter! @lisaharmon, @videocommerce

2. Upcoming Events Email Marketing Roundtable, Video Commerce Consortium Largest consortium of interactive professionals dedicated to advancing the art and science of video commerce @ www.video-commerce.org Largest roundtable of email marketers dedicated to peer-to-peer exchange of email marketing best practices @ http://groups.yahoo.com/groups/emailroundtable Free Membership! Shop.org Annual Summit, Sept. 21 – 23 “40+ Specific Things You Can Do to Make Money Next Week” Email Marketing Roundtable: “Video and Email Marketing” StreamingMedia West, Nov 17 - 19 “The Quiet Revolution in Video Commerce”

4. Principal and Co-Founder at Smith-Harmon

5. Chair, User Experience Roundtable, Email Experience Council

6. President, Email Marketing Roundtable

7. Currently working on the following initiatives:

9. Justin Foster – follow @videocommerce

10. Co-Founder & VP Market Development at Liveclicker

11. Founder & President of the Video Commerce Consortium

12. Currently working on the following initiatives:

13. Actively studying the impact of video on e-commerce performance

14. Building Liveclicker and the VCC into world-class resources for professionals seeking to advance video for commerce

16. Top Concerns re: Video in Email n = 287. Registrants attending “Video Email Marketing in 2009” 8/10/2009

17. Attitudes re: Video in Email n = 287. Registrants attending “Video Email Marketing in 2009” 8/10/2009

18. Expertise re: Video in Email n = 287. Registrants attending “Video Email Marketing in 2009” 8/10/2009

19. Facts, Limitations, Possibilities

21. The expense of creating and hosting video is falling

22. Video viewing increases engagement by adding context to products and building brands“Video in email can increase clickthrough rates by as much as 2X – 3X” - David Daniels, VP, Principal Analyst, Forrester Research May 4, 2009

24. It’s become necessary for email marketers to differentiate themselves in the inbox by using more thoughtful strategies and tactics.

28. No learning curve

30. Subscriber must click through for video and audio

31. Video .GIF v. Animated .GIF 1999: Animated .GIF 2009: Video .GIF

33. Displays video directly in email

34. Does not cause ISP blocks

36. Works most places, but not everywhere

37. Limited player controls

38. Requires enabled images

41. Additional cost for video delivery via GM partner

43. Email Client Market Share Email Client Market Share Report, FingerPrintApp. September 2008.

44. ISP Support for Video, by Inclusion Method Top 23 US ISPs by Subscriber, Q3 2008. Alex Goldman.

45. Browser Support for Video .GIF, by Market Share All browsers are not created equal. Video .GIF playback compatibility is dependent on the underlying user agent of the web browser or mail client. Browser Version Market Share. Net Applications. 8/10/2009.

48. Key takeaway: Use video as a primary call-to-action, rather than supporting visual element.

49. Ensure the first frame of the video is acceptable for the ‘exception’ mail clients that show static images only.

50. Key takeaway: Add call-to- action on the first frame of the video so Outlook 2007 will still display a meaningful image.

55. Key takeaway: Unless you want to create 8 – 20 versions of a .GIF to account for the variances in compatibility in mail clients, and manually compress files, technology can dramatically automate the production of email video.

58. Results Results REI “Statistically significant” increase in CTR, CVR, AOV - March, 2009 SAP Increased CTR from 7% to 32% - January, 2009 Olympus 49% increase in CVR over several emails. - April, 2007 eBags 65.5% increase in sales in YoY test of video v. no video. - June, 2009

61. Common Questions Q: How large are the video files? What’s the recommended size? A: Size isn’t really that important for video .GIFs, because the videos download progressively in the background once the user opens the email, even though they stream immediately. It’s much more important to ensure that the amount of bandwidth required of the end subscriber not exceed 150kB – 200kB/second, unless you know your audience can accept higher throughput. Q: How long should my email videos be? A: With Certified Video, length may be less of an issue because audio can be used to capture the attention of the reader. With video .GIFs, videos are typically no longer than 30 – 45 seconds. A best practice for longer videos would be to use subtitles or text displayed throughout the video to maintain attention. Q: How can I find out how much of my audience can view video? A: Check out FingerPrintApp.com. For less than $50, you can take a snapshot of your subscriber list on your next email campaign to determine what mail clients are being used.

62. Common Questions Q: How can I find out more? A: Your first call should be to your agency or ESP to check whether they’re already partnered with Liveclicker. If not, email sales@liveclicker.com. Q: I don’t know anything about making video. Where should I start? A: Liveclicker recommends starting out with an email design specialist with particular experience in using video in the channel. Smith-Harmon is one of many great options. Your ESP may also have some experience. Or email info@liveclicker.com for references.

63. Questions and Answers Lisa Harmon Principal and Co-Founder, Smith-Harmon Chair, User Experience Roundtable, Email Experience Council President, Email Marketing Best Practices Roundtable Justin Foster Co-Founder & VP Market Development, Liveclicker Founder & President, Video Commerce Consortium Founder, Email Marketing Best Practices Roundtable

64. Video Email Marketing in 2009Facts, Stats, Limitations, Possibilities 2009 Liveclicker Video Commerce Webinar Series, Part III of III August 12, 2009 Lisa Harmon Principal and Co-Founder, Smith-Harmon Chair, User Experience Roundtable, Email Experience Council President, Email Marketing Best Practices Roundtable Justin Foster Co-Founder & VP Market Development, Liveclicker Founder & President, Video Commerce Consortium Founder, Email Marketing Best Practices Roundtable