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Investor Presentation
Joe Aleman
Tim Szal
Michael Krieger
Jeremy Zoerman
Our Business
• We are a mobile application and e-book advertising service
that allows mobile application developers and e-book
publishers to advertise through our kiosks located at the most
highly trafficked areas
• Our website will allow customers to get information on
different mobile applications that we advertise and where our
kiosks can be found
• Currently, there is no “try before you download” experience
for mobile applications, and our kiosks facilitate it through the
mounted tablet computers
• It can be challenging for small application developers to get
noticed in the market, and our service allows them to develop
their reputation
Our Team
• Joe Aleman – Chief Executive Officer
• Former Founder of

• Tim Szal – Chief Design Officer
• Founded Szal Design, his own design company

• Michael Krieger – Chief Strategy Officer
• Co-Founded Health Innovators, a nonprofit organization in
Greater Boston that promotes health innovation

• Jeremy Zoerman – Chief Technology Officer
• Founded Sarasota Webs in 2009
Future Team Member Growth
• Immediately after funding
• 6 salespeople
• Sales manager

• Longer Term (mostly consistent with sales growth)
• Additional Salespeople to support company growth
• Additional Customer Service Representatives and Administrative
Assistants
• Handles additional processing tasks such as managing advertising
card printing

• Marketing associates
Market Opportunity
• Any individual or company that develops mobile device applications
that is looking to advertise in a bricks and mortar environment
• Target market: the 25 largest companies that earn 50% in revenue
directly associated with mobile application
• Businesses that use mobile applications as a valuable complement to
their other channels of business

• 15,000 mobile applications are created each week
• Our service enables advertisers to advertise applications that are
only relevant to a particular area
• Mobile application developers spend an average of $1.63 to attract a
new user
• Developers spent $2.6 billion advertising their applications in 2012
• Willingness to pay a modest premium for the given visibility because
they will value our “Try Before you Buy Experience”
Competitors
• Direct competitors:
• Paid Search Listings, such as Google Adwords
• Blogging
• Social Media

• Indirect competitors
• Traditional media
• Not currently widely used by mobile application developers because
of affordability
Features Comparison: Apposk
vs Google Adwords
Apposk

Google Adwords

Customized “Try before you
download” experience

Trial experience limited to words and
links to other forms of media

Targeted advertising by geography

Targeted advertising by Keyword

Predictable monthly cost per location

Cost is controlled by daily budget

Advertisement stays up for the month

Advertisement is deactivated once
budget is reached
Features Comparison: Apposk
vs Social Media
Apposk

Social Media

Customized “Try before you
download” experience

Pictures, text, and video can be
utilized

Results achieved through the
customization of advertisement, stays
up for the month, and is dependent in
number of locations advertised at

Much effort is needed to attract
engage following, which then gets
results

Predictable monthly cost per location

Cost is mostly related to labor to run
social media campaign

Significant results can be achieved in
as little as 30 days

Long time needed to achieve
significant results
Our Solution
• Each location will have a sufficient amount of space for 200 to
600 advertisement card spaces
• Each application will have a box that holds cards that have a
width of 2.05” and a length of 3.54”
• Boxes will be made such that the box will cover 2.88” of the
card, which means that 0.66” of the card will be visible
• Four tablets will be secured to each display
• Two tablets will be Android tablets
• Two tablets will be iPad tablets

• We will have an advertising banner from a national advertising
sponsor on high, tough to reach spots
• Dependent upon restrictions on how high we can build a display
and advertiser interest
Performance
• Mobile application developers who we have spoken to are
interested in the service, and would be willing to pay $150 per
month per kiosk for advertising with us
• Local businesses are similarly interested in advertising with us
at $150 per month per kiosk
Competitive Advantages
• “Try before you download” experience
• Localized advertising that can be customized at each kiosk
• A/B testing is easily achievable

• Extremely effective in high traffic areas
• Advertising cards make it easy to share new and interesting
mobile applications
• Advertising campaigns can be easily run to accommodate
seasonal business needs
Business Model
• $199 for each mobile application advertisement per month
per location
• $99 for each e-book advertisement per month per location
• Advertising costs are due at five days prior to the beginning of
each month
• Pricing will be dynamically managed as it is subject to change
based on demand at each of our locations
• 2% churn rate per month is expected
• Includes the expected level of season advertising
Website
• Our website will allow customers to get information on the
different mobile applications and e-books that we advertise
and where our kiosks can be found
• Detailed information and reviews will be available for all of the
mobile applications that we advertise
Marketing Strategy
• Emphasis put on “Try before you download” experience and
ability to target through geography
• Run social media marketing campaigns
• Search engine optimization and paid search listings
• Directly reach out to key decision makers at larger companies
through InMail on LinkedIn
• Showcase our services at events that appeal to them
• We plan to gradually expand our initiatives over time through
salespeople who will engage mobile application developers in
major cities in the United States
• We will place our own advertisements on vacant spots on our
kiosks.
Marketing Strategy
• Relatively short sales cycle
• Ranges from an immediate sale for independent mobile
application developers to 2-3 weeks for large companies

• Average revenue per user is initially expected to be the price
of advertising at one board
• Expected to steadily grow as we are able to construct displays at
new locations
• Mainly limited to our ability to secure locations with high foot traffic
• Partnerships secured with MBTA and major mall operators such as Simon
Malls

• Cost of customer acquistion
• $150 per advertisement during 2014
• Steadily increased to $200 per advertisement through 2016 to
reinvest profits into growth
Financial Projections – Kiosk
Specific Costs
• Costs to install a kiosk at an individual location include:
• $7000 for the board, which includes fabrication and installation of
the display
• $10 each for the individual boxes
• $1500 for the two iPad tablets that would be on each display
• $800 for the two Android tablets that would be on each display
• $.045 for each card printed for each display per month
• 250 cards printed per advertisement
Condensed Pro-Forma Income
Statement
2014

2015

2016

2017

Revenue

$

6,588,314

$

43,800,415

$

99,481,500 $

170,206,654

Expenses

$

1,984,953

$

9,955,179

$

13,250,114 $

20,983,249

Operating Income

$

4,603,361

$

33,845,236

$

86,231,386 $

149,223,405

Depreciation

$

12,225

$

61,125

1,150,840
$
3,440,296
$
186,354,976.79
18535.50%

8,461,309
25,322,802

Taxes
$
Net Income
$
PV of Cash Flows
$
ROI on $150,000 investment for 15%

$
$
$

126,325

$

224,125

21,557,846 $
64,547,214 $

37,305,851
111,693,429

• Revenue of $186 million is expected to be equivalent to 6%
market share assuming growth rate remains steady
Growth Plans
• We plan to open 9 locations by the end of 2014, 45 locations
by the end of 2015, 93 locations by the end of 2016, and 165
by the end of 2017
• Factors that may change growth in kiosk locations
• Our clients’ appetites to advertise at additional locations
• Leasing costs at high foot traffic locations
• Occupancy rate of existing boards
Risks
• Our attrition rate may change depending on a number of
uncontrollable factors
• Overall economic environment
• Changes in revenue of mobile application companies, and other
companies who use mobile applications as a channel of doing
business

• We may need to supply each mobile application being advertised at
our displays with more than 250 cards per month to keep clients
satisfied
• The amount of people who decide to download a mobile application
or take a card may be lower than our projections
• Changes in the foot traffic at a particular kiosk may affect the
number of downloads of certain mobile applications
• Rent for our kiosk locations may increase
• Our displays’ abilities to remain at a location may be affected by our
relationship with our landlord
Exit Strategy
• Coinstar can be targeted when we decide to sell the business
• Similar business dynamics are present when our business is
compared to their movie rental and coin counting businesses.
• Possible synergies would be produced through operating in
similar locations

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AppOsk business plan presentation

  • 1. Investor Presentation Joe Aleman Tim Szal Michael Krieger Jeremy Zoerman
  • 2. Our Business • We are a mobile application and e-book advertising service that allows mobile application developers and e-book publishers to advertise through our kiosks located at the most highly trafficked areas • Our website will allow customers to get information on different mobile applications that we advertise and where our kiosks can be found • Currently, there is no “try before you download” experience for mobile applications, and our kiosks facilitate it through the mounted tablet computers • It can be challenging for small application developers to get noticed in the market, and our service allows them to develop their reputation
  • 3. Our Team • Joe Aleman – Chief Executive Officer • Former Founder of • Tim Szal – Chief Design Officer • Founded Szal Design, his own design company • Michael Krieger – Chief Strategy Officer • Co-Founded Health Innovators, a nonprofit organization in Greater Boston that promotes health innovation • Jeremy Zoerman – Chief Technology Officer • Founded Sarasota Webs in 2009
  • 4. Future Team Member Growth • Immediately after funding • 6 salespeople • Sales manager • Longer Term (mostly consistent with sales growth) • Additional Salespeople to support company growth • Additional Customer Service Representatives and Administrative Assistants • Handles additional processing tasks such as managing advertising card printing • Marketing associates
  • 5. Market Opportunity • Any individual or company that develops mobile device applications that is looking to advertise in a bricks and mortar environment • Target market: the 25 largest companies that earn 50% in revenue directly associated with mobile application • Businesses that use mobile applications as a valuable complement to their other channels of business • 15,000 mobile applications are created each week • Our service enables advertisers to advertise applications that are only relevant to a particular area • Mobile application developers spend an average of $1.63 to attract a new user • Developers spent $2.6 billion advertising their applications in 2012 • Willingness to pay a modest premium for the given visibility because they will value our “Try Before you Buy Experience”
  • 6. Competitors • Direct competitors: • Paid Search Listings, such as Google Adwords • Blogging • Social Media • Indirect competitors • Traditional media • Not currently widely used by mobile application developers because of affordability
  • 7. Features Comparison: Apposk vs Google Adwords Apposk Google Adwords Customized “Try before you download” experience Trial experience limited to words and links to other forms of media Targeted advertising by geography Targeted advertising by Keyword Predictable monthly cost per location Cost is controlled by daily budget Advertisement stays up for the month Advertisement is deactivated once budget is reached
  • 8. Features Comparison: Apposk vs Social Media Apposk Social Media Customized “Try before you download” experience Pictures, text, and video can be utilized Results achieved through the customization of advertisement, stays up for the month, and is dependent in number of locations advertised at Much effort is needed to attract engage following, which then gets results Predictable monthly cost per location Cost is mostly related to labor to run social media campaign Significant results can be achieved in as little as 30 days Long time needed to achieve significant results
  • 9. Our Solution • Each location will have a sufficient amount of space for 200 to 600 advertisement card spaces • Each application will have a box that holds cards that have a width of 2.05” and a length of 3.54” • Boxes will be made such that the box will cover 2.88” of the card, which means that 0.66” of the card will be visible • Four tablets will be secured to each display • Two tablets will be Android tablets • Two tablets will be iPad tablets • We will have an advertising banner from a national advertising sponsor on high, tough to reach spots • Dependent upon restrictions on how high we can build a display and advertiser interest
  • 10. Performance • Mobile application developers who we have spoken to are interested in the service, and would be willing to pay $150 per month per kiosk for advertising with us • Local businesses are similarly interested in advertising with us at $150 per month per kiosk
  • 11. Competitive Advantages • “Try before you download” experience • Localized advertising that can be customized at each kiosk • A/B testing is easily achievable • Extremely effective in high traffic areas • Advertising cards make it easy to share new and interesting mobile applications • Advertising campaigns can be easily run to accommodate seasonal business needs
  • 12. Business Model • $199 for each mobile application advertisement per month per location • $99 for each e-book advertisement per month per location • Advertising costs are due at five days prior to the beginning of each month • Pricing will be dynamically managed as it is subject to change based on demand at each of our locations • 2% churn rate per month is expected • Includes the expected level of season advertising
  • 13. Website • Our website will allow customers to get information on the different mobile applications and e-books that we advertise and where our kiosks can be found • Detailed information and reviews will be available for all of the mobile applications that we advertise
  • 14. Marketing Strategy • Emphasis put on “Try before you download” experience and ability to target through geography • Run social media marketing campaigns • Search engine optimization and paid search listings • Directly reach out to key decision makers at larger companies through InMail on LinkedIn • Showcase our services at events that appeal to them • We plan to gradually expand our initiatives over time through salespeople who will engage mobile application developers in major cities in the United States • We will place our own advertisements on vacant spots on our kiosks.
  • 15. Marketing Strategy • Relatively short sales cycle • Ranges from an immediate sale for independent mobile application developers to 2-3 weeks for large companies • Average revenue per user is initially expected to be the price of advertising at one board • Expected to steadily grow as we are able to construct displays at new locations • Mainly limited to our ability to secure locations with high foot traffic • Partnerships secured with MBTA and major mall operators such as Simon Malls • Cost of customer acquistion • $150 per advertisement during 2014 • Steadily increased to $200 per advertisement through 2016 to reinvest profits into growth
  • 16. Financial Projections – Kiosk Specific Costs • Costs to install a kiosk at an individual location include: • $7000 for the board, which includes fabrication and installation of the display • $10 each for the individual boxes • $1500 for the two iPad tablets that would be on each display • $800 for the two Android tablets that would be on each display • $.045 for each card printed for each display per month • 250 cards printed per advertisement
  • 17. Condensed Pro-Forma Income Statement 2014 2015 2016 2017 Revenue $ 6,588,314 $ 43,800,415 $ 99,481,500 $ 170,206,654 Expenses $ 1,984,953 $ 9,955,179 $ 13,250,114 $ 20,983,249 Operating Income $ 4,603,361 $ 33,845,236 $ 86,231,386 $ 149,223,405 Depreciation $ 12,225 $ 61,125 1,150,840 $ 3,440,296 $ 186,354,976.79 18535.50% 8,461,309 25,322,802 Taxes $ Net Income $ PV of Cash Flows $ ROI on $150,000 investment for 15% $ $ $ 126,325 $ 224,125 21,557,846 $ 64,547,214 $ 37,305,851 111,693,429 • Revenue of $186 million is expected to be equivalent to 6% market share assuming growth rate remains steady
  • 18. Growth Plans • We plan to open 9 locations by the end of 2014, 45 locations by the end of 2015, 93 locations by the end of 2016, and 165 by the end of 2017 • Factors that may change growth in kiosk locations • Our clients’ appetites to advertise at additional locations • Leasing costs at high foot traffic locations • Occupancy rate of existing boards
  • 19. Risks • Our attrition rate may change depending on a number of uncontrollable factors • Overall economic environment • Changes in revenue of mobile application companies, and other companies who use mobile applications as a channel of doing business • We may need to supply each mobile application being advertised at our displays with more than 250 cards per month to keep clients satisfied • The amount of people who decide to download a mobile application or take a card may be lower than our projections • Changes in the foot traffic at a particular kiosk may affect the number of downloads of certain mobile applications • Rent for our kiosk locations may increase • Our displays’ abilities to remain at a location may be affected by our relationship with our landlord
  • 20. Exit Strategy • Coinstar can be targeted when we decide to sell the business • Similar business dynamics are present when our business is compared to their movie rental and coin counting businesses. • Possible synergies would be produced through operating in similar locations