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