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‘Figuring’ out mobile




               PortoLynx Networks Inc.
                 ggilmour@portolynx.com
                        Sept 2012
Urgency – Markets grows $2b to $2.5b every
                6 months

                                                                                     Do media
                                                                                     groups have the
                                                                                     1 to 2 years to
                                                                                     ‘figure out’
                                                                                     mobile ?




 Source : 4 Strategies for news companies as mobile ads displaces Desktop exposure
Mobile, too small to worry about ? Online
               group don’t think so.



Millions
Do online groups have the right mobile
             model ? No?

Criteria
commonly used     Google     Twitter   Facebook   Groupon   eBay
for Mobile

Transactional     No         No        No         Yes       Yes

Targeted          Loosely    Loosely   Loosely    Loosely   No

Measurable        Yes,
                              No       No         Yes       Yes
results           conversions

Local SMB focus   Yes        No        Yes        Narrow    No


Location Based    No         No        No         No        No
Are they moving to address these issues in
the next 18 months ? Yes.



14 acquisitions –                              $1.5 b for 11
value unknown                                  acquisitions
                         23 Acquisitions for
                         over $1.5 b




    $3b in acquisition                         12 acquisitions –
    over last 2 years                          value unknown
PortoLynx attacks the weaknesses of online
groups by building on your strengths.

           Local : 80% of spending on products occurs
           locally, 100% of services


           Local: 80% of consumers want to support local
           businesses due to recession (up from 55%)


           Local: Over 40% of consumers want local deals
           from small businesses they know


           Local: Over 50% of local consumer ‘Trust’ their
           community newspaper.
We are a white label mobile platform aimed
at the media market.




App distributed simply
                             Buy Local Markets –      Immediate, self
via SMS download link
                           access to local products   serve, flexible and
to subscribers, readers,
                                and services          cheaper
online users
Our revenue model is based on access and
                 results

Media                                     SMS enquiry
Group App.
                                                        Real Time Referrals




                              Secondary Action


                                                        Real Time Referrals
Criteria          PortoLynx
Transactional     Yes
Targeted          Yes
Measurable        Yes
results
Local SMB focus   Yes
Location Based    No
We add value by,

  Groups                                Value Added

  Consumers        Location based Support for           Cash rewards
                   shopping       Local business


  Small Business   Targeted to real   Cost linked to    No work no
                   local consumers    targeting and     investment
                                      results           mobile strategy


  Media Groups     New &              Potential to      Expansion of
                   independent        monetize          advertiser base
                   revenue stream     subscribers,
                                      readers, online
                                      traffic
Where it leads – aggregates Mobile
                     pennies

        Revenue per Circulation Unit                              Profit per Circulation Unit
$1.00                                                     $0.30
$0.90
                                                          $0.25
$0.80
$0.70                                                     $0.20
$0.60
                                                          $0.15                                       Print
$0.50                                         Print
$0.40                                                                                                 Mobile
                                              Mobile      $0.10
$0.30
$0.20                                                     $0.05
$0.10
                                                          $0.00
$0.00
                                                                   2012   2013   2014   2015   2016
          2012    2013   2014   2015   2016




                 Print figures will vary with markets while mobile will vary with assumptions
                        made. An interactive model is available to test individual cases.
What it would take to replicate our
platform,                         Full scale Rollout –
                                                                     starting in 6 months

                                                      Up to 20 pilot sites – 2 months

     Media Partners
                                                 Implementation of Mobile Pilot – 2 months
      Start Here

                                            Final Prep for Mobile Pilot – 2 months


                                       SMS – Enquiry engine – 12 months



                            Buy Local Marketplaces – 18 months


             SMB online network – 4 years
What can we give you? Knowledge and
time.


Your Stop Go
decision points                                               Work with you to
                                                              implement your
                                                              own pilot. Cost
                                                              linked to scale.


                                       Series of 4 briefing
                                       sessions tracking
                                       continuing
                                       development, impl
                  Detailed Briefing.
                                       ementation&
                  Cost equivalent –    operating metrics.
                  2 man weeks          Cost equivalent - 4
                                       man months
Is mobile a bubble or a revolution ?




If a revolution, what can you do in the next 6 month that would be as cost
                      effective as taking up our offer ?

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Figuring out mobile advertising

  • 1. ‘Figuring’ out mobile PortoLynx Networks Inc. ggilmour@portolynx.com Sept 2012
  • 2. Urgency – Markets grows $2b to $2.5b every 6 months Do media groups have the 1 to 2 years to ‘figure out’ mobile ? Source : 4 Strategies for news companies as mobile ads displaces Desktop exposure
  • 3. Mobile, too small to worry about ? Online group don’t think so. Millions
  • 4. Do online groups have the right mobile model ? No? Criteria commonly used Google Twitter Facebook Groupon eBay for Mobile Transactional No No No Yes Yes Targeted Loosely Loosely Loosely Loosely No Measurable Yes, No No Yes Yes results conversions Local SMB focus Yes No Yes Narrow No Location Based No No No No No
  • 5. Are they moving to address these issues in the next 18 months ? Yes. 14 acquisitions – $1.5 b for 11 value unknown acquisitions 23 Acquisitions for over $1.5 b $3b in acquisition 12 acquisitions – over last 2 years value unknown
  • 6. PortoLynx attacks the weaknesses of online groups by building on your strengths. Local : 80% of spending on products occurs locally, 100% of services Local: 80% of consumers want to support local businesses due to recession (up from 55%) Local: Over 40% of consumers want local deals from small businesses they know Local: Over 50% of local consumer ‘Trust’ their community newspaper.
  • 7. We are a white label mobile platform aimed at the media market. App distributed simply Buy Local Markets – Immediate, self via SMS download link access to local products serve, flexible and to subscribers, readers, and services cheaper online users
  • 8. Our revenue model is based on access and results Media SMS enquiry Group App. Real Time Referrals Secondary Action Real Time Referrals Criteria PortoLynx Transactional Yes Targeted Yes Measurable Yes results Local SMB focus Yes Location Based No
  • 9. We add value by, Groups Value Added Consumers Location based Support for Cash rewards shopping Local business Small Business Targeted to real Cost linked to No work no local consumers targeting and investment results mobile strategy Media Groups New & Potential to Expansion of independent monetize advertiser base revenue stream subscribers, readers, online traffic
  • 10. Where it leads – aggregates Mobile pennies Revenue per Circulation Unit Profit per Circulation Unit $1.00 $0.30 $0.90 $0.25 $0.80 $0.70 $0.20 $0.60 $0.15 Print $0.50 Print $0.40 Mobile Mobile $0.10 $0.30 $0.20 $0.05 $0.10 $0.00 $0.00 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Print figures will vary with markets while mobile will vary with assumptions made. An interactive model is available to test individual cases.
  • 11. What it would take to replicate our platform, Full scale Rollout – starting in 6 months Up to 20 pilot sites – 2 months Media Partners Implementation of Mobile Pilot – 2 months Start Here Final Prep for Mobile Pilot – 2 months SMS – Enquiry engine – 12 months Buy Local Marketplaces – 18 months SMB online network – 4 years
  • 12. What can we give you? Knowledge and time. Your Stop Go decision points Work with you to implement your own pilot. Cost linked to scale. Series of 4 briefing sessions tracking continuing development, impl Detailed Briefing. ementation& Cost equivalent – operating metrics. 2 man weeks Cost equivalent - 4 man months
  • 13. Is mobile a bubble or a revolution ? If a revolution, what can you do in the next 6 month that would be as cost effective as taking up our offer ?