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Video Panel Monetizing Ugc Vs Proprietary


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Video Panel Monetizing Ugc Vs Proprietary

  1. 1. Jefferies & Company, Inc. Jefferies 4 th Annual Internet Conference February 27, 2008 CONFIDENTIAL DRAFT Member, SIPC Video Panel: Monetizing User Generated vs. Proprietary Content
  2. 2. Panelists <ul><li>Panelists are </li></ul><ul><li>representative of the </li></ul><ul><li>many facets of the video </li></ul><ul><li>opportunity </li></ul><ul><li>User/Proprietary Media </li></ul><ul><li>Video Technology </li></ul><ul><li>Ad Networks </li></ul><ul><li>Agency Services </li></ul>Joy Marcus GM, US David Liu Managing Director Internet & Digital Media Group Matt Wasserlauf CEO Keith Richman Founder and CEO Doug Stevenson Founder and CEO 1
  3. 3. Sector Snapshot 2
  4. 4. What is the Video Market Opportunity? US Online Video Ad Viewers, 2006-2011E 1 US Online Video Advertising Revenue, 2006-2011E 1 <ul><li>Source: eMarketer, June 2007. </li></ul><ul><li>Source: eMarketer, August 2007. Online video viewer defined as an individual ages 3+ who downloads or streams video (content or advertising) at least once a month. Includes in-page and streaming video. </li></ul>(Millions) ($ Millions) 13% CAGR 60% CAGR 2
  5. 5. What Content Do We Watch Online? Source: eMarketer, August 2007 Video Content Viewed Online 1
  6. 6. Recent Developments In Online Video 5 <ul><li>Google opens up AdSense for video to large publishers, offering both CPC and CPM overlay units </li></ul><ul><li>LiveUniverse acquires struggling video site Revver for under $5MM </li></ul><ul><li>Yahoo! acquires online video platform provider Maven Networks for ~$160MM </li></ul><ul><li>Writers Guild ends three-month strike after reaching tentative agreement with studios for “New Media” compensation </li></ul><ul><li>Skype co-founders Janus Friis and Niklas Zennström officially launch Joost, the desktop Internet TV platform, after raising $45MM in May 2007 </li></ul>
  7. 7. Meet the Panelists 7
  8. 8. Joy Marcus GM, US 7
  9. 9. Keith Richman Founder and CEO 7
  10. 10. Overview
  11. 11. <ul><li>BREAK MEDIA consists of wholly owned sites and an affiliated ad network that target young men through various genres such as comedy, sports, gaming and finance. </li></ul>BREAK MEDIA
  12. 12. SIGNIFICANT AUDIENCE BREAK MEDIA has the ability to sell advertising to nearly 40,000,000 men across 30 properties worldwide January Reach (A) (Unique Visitors) Break Media is the 10th largest domestic video provider (B) Source: (A) Google Analytic (B) Comscore Video Matrix, November 2007
  13. 13. Doug Stevenson Founder and CEO 7
  15. 15. Company Snapshot <ul><ul><li>Founded by Doug Stevenson and Craig Gooding in 2000 </li></ul></ul><ul><ul><ul><li>Started with $500k </li></ul></ul></ul><ul><ul><ul><li>ABS Capital invested $25m July 2005 </li></ul></ul></ul><ul><ul><li>112% revenue growth in 2007. Revenues: </li></ul></ul><ul><ul><ul><li>$41 million in 2006 </li></ul></ul></ul><ul><ul><ul><li>$86.5 million in 2007 </li></ul></ul></ul><ul><ul><li>81% user growth year over year </li></ul></ul><ul><ul><ul><li>Over 120 million unique users worldwide per month (comScore, Jan 2008) </li></ul></ul></ul><ul><ul><li>Live campaigns on over 3,000 publisher websites </li></ul></ul><ul><ul><ul><li>IDG, News Corp, Hearst, NBC, AMI, Hoovers, MSNBC </li></ul></ul></ul><ul><ul><li>Patented technology operating in 13 different languages </li></ul></ul><ul><ul><li>200 employees worldwide </li></ul></ul><ul><ul><li>Offices in New York (HQ), Detroit, LA, San Francisco, London, Paris & Hamburg </li></ul></ul>Page
  16. 16. Page *comScore Worldwide, 2008
  17. 17. You no longer need video content to deliver video advertising. All you need are words . Source: IAB Digital Video Overview; January, 2008.
  18. 18. Matt Wasserlauf CEO 7
  19. 19. February 2008
  20. 20. Broadband Enterprises Overview <ul><li>Enables highly-targeted video advertising across a network of over 2,000 leading content providers </li></ul><ul><ul><li>Advertising capabilities supported by extensive library of original and premium syndicated content </li></ul></ul><ul><ul><li>Expertise in professional and cost-effective online video content production </li></ul></ul><ul><ul><li>Sophisticated ad serving, advertising inventory marketplace and analytics capabilities </li></ul></ul><ul><li>Extensive reach with over 55 million unique monthly visitors and over 1 billion monthly impressions </li></ul><ul><li>Highly scalable business model </li></ul><ul><li>comScore, 2007. </li></ul>Broadband Enterprises provides premium online video advertising and advanced technology solutions to advertisers Founded in 2004 Largest online video network 2 nd largest aggregator of video behind Google (1) Blue chip customer base of over 100 advertisers and 50 agencies Headquartered in New York, NY 40 Employees Company At-A-Glance
  21. 21. Consumers Broadband Enterprises Connects Multiple Online Video Constituencies Advertisers & Agencies Publishers (Sites / Programmers) <ul><li>High quality content maintains integrity of brand </li></ul><ul><li>Ability to select content and distribution points enables better targeting </li></ul><ul><li>Increased inventory permits advertisers to deploy additional online marketing dollars </li></ul><ul><li>Segment-level video reporting enhances understanding of viewer behavior </li></ul><ul><li>Ability to better monetize content through creation of additional video advertising inventory </li></ul><ul><li>High quality video inventory leads to higher CPMs </li></ul><ul><li>Increased content consumption due to heightened viewer engagement </li></ul><ul><li>Ability to view increased breadth of high quality video content </li></ul><ul><li>As a result of targeting, view advertisements with greater relevancy </li></ul>Vindico Ad Serving & Campaign Management Platform vComm Video Content Marketplace Network of 2000+ Leading Sites The Internet Premium Content
  22. 22. Broadband Enterprises Platform Overview <ul><li>Network of 1,800+ media affiliates incorporates premium publishers across 14 different content categories </li></ul>Advertiser Premium Content <ul><li>Professional-quality original productions & premium syndicated content </li></ul>Vindico <ul><li>Proprietary platform offering XML-based ad serving and campaign analysis capabilities </li></ul>vComm <ul><li>Online video distribution and transactional system which provides a marketplace for advertising inventory </li></ul>Network Selected Accounts: Selected Examples:
  23. 23. Dave’s Top Five 11
  24. 24. Dave’s Top Five <ul><ul><li>Weakening economy: near term impact? Long term impact? </li></ul></ul><ul><ul><li>MicroHoo (aka Yahoosoft)? Good or bad? </li></ul></ul><ul><ul><li>What are the implications for online video from the Hollywood Strikes? </li></ul></ul><ul><ul><li>Are newer online advertising formats, such as in-text, better suited for user-generated or proprietary content? </li></ul></ul><ul><ul><li>Google recently opened up AdSense for video to large publishers, offering both CPC and CPM overlay units. What effects does this have on the video ecosystem? </li></ul></ul>13 1980s 2000s Beyond?
  25. 25. Dave’s Top Five Back-up 12 1980s 2000s Beyond? <ul><li>If you could LONG or SHORT any stock to exploit Video 2.0 what would it be? </li></ul><ul><li>Hot or not? </li></ul><ul><ul><li>Mobile video </li></ul></ul><ul><ul><li>Live video streaming </li></ul></ul><ul><ul><li>Citizen journalism </li></ul></ul><ul><li>What’s the best payment model? </li></ul><ul><ul><li>Clicks vs. Impressions vs. Engagement </li></ul></ul><ul><li>Do advertisers need to take risks and sponsor UGC or do brands have an advantage advertising among other brands within proprietary content? </li></ul><ul><li>What needs to happen for media planners and buyers to increase interest and usage in online video advertising? </li></ul>