iGB Down Under - Keynote: Sports Affiliate Marketing In Australia

About Me Registered 200+ domain names whilst at Melbourne University (1988-1993). Founded APT Strategies in 1993 and sold to Jupiter Research (now Forrester) in 1999. 2003: Co-Founder of Australia's leading affiliate company - Commission Monster acquired in 2007. Founding shareholder of Silicon Valley based GlanceGuide, an online video metric solutions provider acquired by Nielsen in 2010. Founder/CEO SearchForecast which provides web-publishing software/services for search engine techniques. Clients include News Corp, BBC, St.George Bank, Golden Casket, Sportingbet, 888 Holdings, EuroPartners. Shareholder of Silicon Valley start ups (Geodelic, Localyte, Playhaven, Sonim, AdSemble, Flaii Networks, MyLawsuit). Advisory board for Parallel Capital Early Stage Venture Capital Limited Partnership and ATPI, largest incubator in Australia. ©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

The Online Betting RoadMap World Wide Web Global Mobile Web 1996 2001 2003 2007 2010 USA bans International Betfair Lobbying for online Expansion - Launches InPlay & Running betting UK is in Australia Betting epicenter Bingo, Poker, Casino on Net Bacarat, Mahjong 888 & Playtech Focus on Launch targeting - More seek IPO International USA international Markets games ©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

State of Play....... • Australia is profitable for everyone • $150 CPL and up to 40% revenue share for affiliates • Freebets don’t yield higher profits • Limited white-labels, entry via acquisition • Are Exchanges too difficult? • Explosive growth in sports, poker, bingo, entertainment betting online ©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

Affliate Revenue by Sports Sports Afﬁliate Revenue By Sports Category 10% 10% 20% 60% Horseracing AFL/NRL Majors Special Events ©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

Global Online Betting and Affiliate Marketing Trends • Australia/Asia is a focus, IPL & YouTube • Live Football is 50% of EU market • Rise of Entertainment/Novelty Betting • Video Lead Generation and TV Advertising • Poker Tournament numbers increasing • eBay moving from CPL to CPC based on quality of traffic and conversions What’s the word? ©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

Live Betting • Exciting innovation - works in footy, cricket, soccer • 50% of Football Betting in EU is Live! • Your team can’t win every week • Cricket - scoring 100 once a batsman reaches 50 • Lesser time for bookies to adjust odds creates betting opportunities. 24 ©2009 Bets.com.au, Inc. All Rights Reserved. Proprietary and Confidential * Need to revise this yet again

Trends: Entertainment Betting Idol Betting European Promotions Global Song Contests Personality Celebrity Betting Interactive Betting via Local TV Celebrities ©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

Will my iPhone App make money? With the Melbourne Cup iPhone app is $3.99. Average app in USA is downloaded 120,000 times Average cost is $30,000 to $50,000 Apple takes 30% of the gross revenues Return on Investment low 4% use from mobiles in banking, payments ©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

What’s next? Video Lead Generation • Impact of Language and Accent http://888-livecasino.com/specialoffer/? evScenarioId=494 . A B French with +13% conversion French with English speaker French speaker 24 ©2009 Bets.com.au, Inc. All Rights Reserved. Proprietary and Confidential * Need to revise this yet again

The Velocity of Global Online Betting Worldwide Active Accounts in Poker and Bingo 15,000.0 11,250.0 7,500.0 Poker Bingo 3,750.0 0 2003 2004 2005 2006 2007 2008 2009E 2010E 2011E 2012E Source: 888 Holdings PLC ©2009 Bets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

The Velocity of Australian Online Betting Australian Active Accounts in Poker and Bingo 500 Poker Bingo 375 Active Accoints (000') 250 125 0 2003 2004 2005 2006 2007 2008E 2009E 2010E 2011E 2012E Source: 888 Holdings PLC ©2009 Bets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

Online Poker Very Popular online game across all ages Highest Paying Online Games @ $600 to $800 per user value “Poker Ashes” World Poker Tournament Promotions Customer Acquisition: Quick Play - No Download $500 First time Depositors Freerolls Welcome 100% Bonus - Up to $400 paid to first time depositors ©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

Online Bingo Player Profiles: Friends & Family game Older ladies Internationally popular Highest Paying Online Games @ $60 to $80 per user value Tell a Friend Promotions - Viral promotion High Loyalty - chat room ensures high retention rate ©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

The Future • Lots of opportunity for niche domains in sports other than horseracing and football • More compelling banner ads and real time odds in advertisements • Back to Back CPA deals with low cost inventory (remnant publishers) • Innovation required by Affiliates for Corporate Bookmakers • IPL reminds me of Planet Hollywood! • Too expensive? • Do Indians Bet online? 24 ©2009 Bets.com.au, Inc. All Rights Reserved. Proprietary and Confidential * Need to revise this yet again

Thank You! Marc Phillips Email: marc@sportbets.com.au Assaf Igell Business Development/Media Email: assaf@sportbets.com.au ©2010 SportBets.com.au, Inc. All Rights Reserved. Proprietary and Confidential

iGB Down Under - Keynote: Sports Affiliate Marketing In Australia

by iGB Affiliate on Apr 02, 2010

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