Study Finds Online Gaming Tops TV in Advertising Effectiveness

MOUNTAIN VIEW, CA, Mar 24 (MARKET WIRE) --
NeoEdge Networks, Inc., a leading digital media company enhancing the
online casual game experience for consumers, publishers and portals
through in game advertising, community features and analytics, announced
preliminary results from a three month study -- Online Video Advertising
Effectiveness. Key results found that online gaming provides
substantially better performance and consumer perception than traditional
TV advertising -- a potential milestone in the evolution of advertising.
The study, conducted in conjunction with market research firm Frank Magid
Associates and in partnership with Zappos.com, began January 5 and is
expected to conclude March 31.

Preliminary Findings

Online casual games are well known to attract and appeal to a highly
sought after demographic for consumer brands -- females between 25-54.
Consumers spend an average of 44 minutes per session and play multiple
sessions each week. The immersive nature of online casual games creates
an active engagement opportunity between the game-playing consumer and
the brands. Combining premium brand advertising with lean-forward casual
games results in dramatically increased brand awareness and perception.

"The preliminary findings confirm that online video advertising inside
casual games is a powerful consumer engagement tool," said Vicki Cohen,
Executive Vice-President at Frank Magid Associates. "Both aided and
unaided Zappos.com awareness is dramatically higher after seeing the
NeoEdge premium online video advertisements. Compared with traditional TV
advertising, the results show more than a 500% increase in unaided brand
awareness where a game included a Zappos.com pre, mid and post-roll
advertisement."

Added Cohen, "In addition, over 80% correctly linked Zappos.com as the
advertiser who allowed them to play the game for free. And, 56% had a more
favorable impression of Zappos.com because of their in-game advertising
trade-off for free game play."

"We knew through other research that the casual game consumer, primarily
25-54 and female, was a lean-forward, engaged audience, but these
preliminary results indicate that they see, hear and remember the brands
featured at a substantially high level when seen during game play," said
Alex Terry, CEO at NeoEdge Networks. "Traditional TV advertising, due to
the medium, just can't deliver these results."

Methodology

The research goal was to determine both the value of online video
advertising inside of casual games and the most efficient use of video
advertising in casual games. In partnership with advertiser Zappos.com,
casual game players across the NeoEdge Network were intercepted with a
survey request after game play. Consumers saw one of ten different online
video advertising scenarios, which varied number of ads seen, frequency of
ads and additional ad products. Over 2,000 consumers participated in the
research study and over 1 million ad impressions were used to conduct the
comprehensive research.

"This is ground-breaking research, not just for online video advertising,
but for advertising in online casual games," said Terry. "The implication
for brands is considerable -- online casual games trump TV advertising in
effectiveness."

The NeoEdge Advantage

NeoEdge is the technology leader in ad insertion for casual games, and
also provides advertisers the most effective selection of ad products to
achieve their campaign goals.

"The data supports NeoEdge's strong value proposition for advertisers.
With our ability to provide highly engaging insertions for a brand, we can
demonstrate exceptional brand awareness and recall," said Ty Levine,
NeoEdge VP of Marketing. "As we complete the study I expect us to learn
that one pre-roll ad is good, but total immersion of a brand in multiple,
mutually valuable ad slots provides the best results."

About NeoEdge Networks, Inc.

NeoEdge Networks, Inc., headquartered in Mountain View, California, is the
leading digital media company providing advertising solutions for the
casual game industry. In close partnership with game publishers, portals
and advertisers, NeoEdge has revolutionized the causal gaming experience
by providing safe, simple and profitable ad-supported game play through
its patent-pending NeoARM(TM) technology suite and NeoAds(TM) advertising
network. More than 50 top publishers rely on NeoEdge to deploy over 500
ad-supported casual games throughout the NeoEdge partner network. NeoEdge
has created a robust and scalable online medium which allows advertisers
to target a valuable untapped demographic with premium video ads. It
enables an ad-supported business model for game publishers and web site
owners. In January 2009 NeoEdge was recognized as Digital Publisher -
Category Winner and an OnMedia Top 100 Private Company. To advertise with
NeoEdge or learn more about increasing revenue through ad-supported
casual games, please visit www.neoedge.com.

Media Contact
Denise Vardakas
The Conversation Group
650-483-5083
denise@theconversationgroup.com

Copyright 2009, Market Wire, All rights reserved.

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