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Didmo Investor Presentation Summer 2008


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Investment Presentation I developed for Swedish mobile client. $600k was raised in private placement in September 2008.

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Didmo Investor Presentation Summer 2008

  1. 1. Summer 2008 Mobile Advertising Solution Investment Summary Ga ing on the go ... Contact: Joseph Oliver, Interim CEO [email_address]
  2. 2. DIDMO is poised for success in the mobile advertising delivery market, given its strong subscriber base and award winning technology platform, however, a stronger sales, distribution and support infrastructure is required to if DIDMO is to fully exploit the business opportunity and become the defacto brand for free mobile content and global mobile advertising distribution network. These changes in the mobile industry are resulting in the fast growing demand for compelling content. The mobile arena represents the ‘Holy Grail’ when it comes to advertisers - considered by many as the final mile – a true captive audience network opportunity where brand messaging and commerce will be conducted directly with the user, directly where they are at all times, simply by targeting directly onto their mobile phones. A mobile phone is no longer a simple voice communication device. A mobile phone is a personal organizer, a portable music device, a photo album, a GPS system, an email client, a social networking connector! The mobile phone has graduated into becoming one of the most important tools an individual interfaces with on a daily basis. It is a device they carry with them everywhere. Imagine having a direct connection with a customer, where ever they are, when ever, not matter what their social setting….. Executive Summary DIDMO is focused in three very specific areas: 1. DIDMO is a mobile advertising platform - games are the focus today, but we are content agnostic. 2. DIDMO supports its product offering by delivering stimulating and engaging consumer environments. 3. DIDMO intends on becoming a mobile network – a mobile counterpart to a Radio or TV network.
  3. 3. Mobile Advertising - Forces at work This market is an attractive business opportunity <ul><li>Competitive conduct: </li></ul><ul><ul><li>All competitors focused only in gaming </li></ul></ul><ul><ul><ul><li>Gives DIDMO a significant edge </li></ul></ul></ul><ul><ul><li>Few competitors looking at global offering </li></ul></ul><ul><ul><li>Innovation difficult and requires knowledge </li></ul></ul><ul><ul><li>No other targeted advertising solution today allows campaigns to be tracked in real-time </li></ul></ul><ul><li>External factors: </li></ul><ul><ul><li>Captive Audience Network - Opportunity </li></ul></ul><ul><ul><li>Consumer becoming more sophisticated thus traditional advertising failing </li></ul></ul><ul><ul><li>Advertising industry looking for new ways to successfully target/reach audience </li></ul></ul><ul><li>Industry structure and economics: </li></ul><ul><ul><li>Small number of real competitors </li></ul></ul><ul><ul><li>Industry opportunity very profitable </li></ul></ul><ul><ul><li>Market growing rapidly worldwide </li></ul></ul><ul><ul><li>Carriers are slow movers/missing opportunity </li></ul></ul><ul><ul><li>Many carriers restricted to territory </li></ul></ul><ul><li>Consumer demand: </li></ul><ul><ul><li>Consumer willing to trade participation for content – as long as it is compelling </li></ul></ul><ul><ul><li>Demand consistently growing </li></ul></ul><ul><ul><li>Demand not being met by carriers </li></ul></ul><ul><ul><li>Demand content is a global realization </li></ul></ul>
  4. 4. Competitor Review <ul><li>Greystripe is a US based company delivering a similar ad-supported mobile game offering. Greystripe have a limited community website though users must register before they are able to review and download games. </li></ul><ul><li>Hovr Inc is also a US-based mobile media company that provides users with free ad-supported mobile content such as mobile games. The Hovr Mobile Space social network lets users connect, compete and interact with their friends and other players in a community environment. By embedding advertising into games and other mobile applications Hovr delivers ad-subsidized content. </li></ul><ul><li>Playyoo is a UK based company. A unique difference in this model is that Playyoo allows its users create and publish mobile games on their community portal. The Playyoo community judges game play appeal, by ranking the games and contributing comments. Note: This model is a dangerous one, as it is opens the window for hackers to deliver malicious apps to the unsuspecting users mobile phone. </li></ul><ul><li>GlobalFun is a Swedish mobile content company that recently has launched a beta community called This community offers advertisements wrapped around their own games. </li></ul><ul><li>UK based is a user-generated mobile content community with nearly 3,5 million members and nearly half a million pieces of user-generated mobile content. The users can get free mobile games that are ad sponsored. Zedge was acquired by IDT Internet Mobile Group in December 2006 . </li></ul>It is worth noting, that all of DIDMOs current competitors focus only up on the casual gaming application. Though DIDMO does recognize the likelihood that moving forward some competitors might deliver other content offerings, it does not appear that today's competitors are scaling their businesses with DIDMO’s philosophy of becoming a mobile network player (where all content is considered equal). We believe that with the appropriate level of funding and team acquisition, it will become increasingly difficult for competitors to compete with DIDMO once critical mass has been accomplished. Examining the market with a longer lens, DIDMO considers organizations such as Yahoo and Google more likely candidates for long term competition.
  5. 5. Competitive Position - DIDMO vs. Competitors DIDMO <ul><ul><li>Industry veterans team </li></ul></ul><ul><ul><li>Extensive experience with space </li></ul></ul><ul><ul><li>Extensive global relationships </li></ul></ul><ul><ul><li>Product vision that exceeds games </li></ul></ul>Skills <ul><ul><li>Mature Technical Platform </li></ul></ul><ul><ul><li>Well established brand name </li></ul></ul><ul><ul><li>Industry award winning solution </li></ul></ul><ul><ul><li>New offerings being launched </li></ul></ul><ul><ul><li>Proved client success campaigns </li></ul></ul>Strategic assets <ul><ul><li>Existing relationships with large mobile players </li></ul></ul><ul><ul><li>Advertising relationships </li></ul></ul><ul><ul><li>Key analyst Relationships </li></ul></ul><ul><ul><li>Connections in Hollywood </li></ul></ul>Special relationship High Low Hovr <ul><ul><li>Good management resources </li></ul></ul><ul><ul><li>Savvy technical team </li></ul></ul><ul><ul><li>Weak Community site </li></ul></ul><ul><ul><li>Indian based team </li></ul></ul><ul><ul><li>Cheap labour costs </li></ul></ul><ul><ul><li>Good funding </li></ul></ul><ul><ul><li>Asia distribution network </li></ul></ul>MAS <ul><ul><li>Strong industry team </li></ul></ul><ul><ul><li>Good understanding of mobile </li></ul></ul><ul><ul><li>Focus limited to Europe </li></ul></ul><ul><ul><li>Technology unproven & limited </li></ul></ul><ul><ul><li>Focus only on Games </li></ul></ul><ul><ul><li>Very few games in catalogue – approx 50 </li></ul></ul><ul><ul><li>fledgling company with very few users and limited partnerships </li></ul></ul>GreyStripe <ul><ul><li>Mgmt team young, lack experience </li></ul></ul><ul><ul><li>No understanding of space </li></ul></ul><ul><ul><li>Few global relationships </li></ul></ul><ul><ul><li>Patent pending for Ad wrap solution </li></ul></ul><ul><ul><li>Well funded $11mm in 2007 </li></ul></ul><ul><ul><li>Lot of game titles </li></ul></ul><ul><ul><li>Disney Relationship </li></ul></ul><ul><ul><li>Bundled with opera mini </li></ul></ul><ul><ul><li>Testing with Yahoo! </li></ul></ul>Cellufun <ul><ul><li>Knowledgeable management team </li></ul></ul><ul><ul><li>Weak understanding of market </li></ul></ul><ul><ul><li>Not globally focused </li></ul></ul><ul><ul><li>Mature product, though gaming limited </li></ul></ul><ul><ul><li>Closed $3mm funding in 2007 </li></ul></ul><ul><ul><li>Weak community offering </li></ul></ul><ul><ul><li>Funded </li></ul></ul><ul><ul><li>Limited content partners </li></ul></ul><ul><ul><li>Only supports 500 phones </li></ul></ul>
  6. 6. Source M:Metrics 03/2007 Market Review – Gamers aren’t who you think!
  7. 7. Mobile Content Usage <ul><li>Percentage of mobile subscriber monthly consumption of content and applications </li></ul><ul><li>M:Metrics Benchmark Survey: November 2007 </li></ul><ul><li>US EU FR DE IT ES UK </li></ul><ul><li>Watched video 4.2% 5.1% 5.0% 2.5% 6.0% 7.7% 5.1% </li></ul><ul><li>Listened to music 5.7% 15.8% 12.9% 15.0% 13.3% 20.0% 18.9% </li></ul><ul><li>Accessed news/info via browser 12.6% 9.1% 9.2% 5.2% 7.6% 7.5% 15.5% </li></ul><ul><li>Received SMS ads 20.6% 53.3% 64.8% 34.3% 59.4% 72.4% 42.2% </li></ul><ul><li>Played downloaded game 9.1% 8.7% 4.0% 7.6% 8.7% 13.0% 11.0% </li></ul><ul><li>Accessed downloaded application 4.2% 2.6% 1.3% 2.2% 4.0% 2.5% 3.3% </li></ul><ul><li>Sent/received photos or videos 20.5% 27.5% 24.3% 21.7% 31.3% 31.7% 29.7% </li></ul><ul><li>Purchased ring tones 9.7% 4.3% 4.3% 4.2% 4.6% 4.6% 3.7% </li></ul><ul><li>Used email 1.6% 8.3% 6.7% 6.9% 10.2% 9.0% 9.1% </li></ul><ul><li>Accessed social networking sites 3.6% 2.2% 1.7% 1.4% 1.9% 2.4% 3.6% </li></ul>
  8. 8. Mobile Content is Big Business
  9. 9. General Market Data <ul><li>Spending in this medium will grow to $19 billion worldwide by 2012 from about $1.6 billion today. </li></ul><ul><li>By 2011, total U.S. mobile advertising revenues generated are expected to reach $2,127.29 million. </li></ul><ul><li>Mobile games industry was valued in 2005 at $2.5B with a CAGR of 23%. </li></ul><ul><li>90% of active mobile phones in the US are data enabled. </li></ul><ul><li>Global mobile phone subscribers (1.4 billion) now outnumber landline subscribers. </li></ul><ul><li>50% of teens 13-17 would spend additional money on ring tones, music, games, and chat. </li></ul><ul><li>15 - 20 year old users are more likely to buy products they've seen advertised on a cell phone – 27% more likely than the average adult. </li></ul><ul><li>Of the 18-24 year olds, roughly 2 in 5 are at least moderately interested in engaging in mobile marketing. </li></ul>Mind Commerce Frost & Sullivan CTIA MMA M:Metrics
  10. 10. Vision, Mission & Imperatives for DIDMO “ What is DIDMO?” “ Where are we going?” <ul><ul><li>An innovative mobile content delivery platform driving high customer satisfaction </li></ul></ul><ul><ul><li>We aim to be the innovative leader in mobile advertising delivery , connect the online world with the mobile world and revolutionize the mobile content delivery industry </li></ul></ul><ul><ul><li>Deliver engaging content that compels the subscriber to return day after day </li></ul></ul><ul><ul><li>Supported through linking web destinations to client located on users mobile phone </li></ul></ul><ul><ul><li>Establish key partnerships and resellers. </li></ul></ul><ul><ul><li>Develop pilot implementations with major brand advertisers directly </li></ul></ul><ul><ul><li>Establish leading position in all key markets </li></ul></ul>“ How will we get there?” Vision Mission Strategic Imperatives
  11. 11. <ul><li>Founded in Sweden in August 2006 – First Launched November 2006 </li></ul><ul><li>Initial focus in games & books, though multiple content offerings planned in 2008 </li></ul><ul><li>Delivers (x3) 4 seconds of full screen advertising on to phones </li></ul><ul><li>Business model is ad revenue and content sales (”preview before buy”) </li></ul><ul><li>Market capture over 5% of all Swedish Mobile users in 12 months </li></ul><ul><li>Current focus to roll out in Europe and enter North American Market </li></ul><ul><li>99% of all java enabled mobile phones currently supported </li></ul><ul><li>Over 30,000 new subscribers captured during a 4 day test carried out in Germany </li></ul><ul><li>Community Portal to support experience launching 06/2008 </li></ul><ul><li>Over 2000+ games in current catalogue and growing (Multi player capable) </li></ul><ul><li>Over 400 books and dozens of applications in catalogue – and growing </li></ul><ul><li>Advertising supported mobile book solution complete – Launch 07/2008 </li></ul>Brief Overview of DIDMO
  12. 12. <ul><li>Advertisment trays and call to action menu is wrapped together with Game or application content. </li></ul><ul><li>DIDMO creates a new tamper-proof application timed to last 24 hours. </li></ul>The DIDMO Technology - How it works today Content Server Ad Server AdWrap Dynamic Ad Server Advertiser Campaign Management Publisher Management Management Platform Community Portals Distribution Content and Ad serving Publisher Users
  13. 13. The DIDMO Technology - How it will work Phase 2 Phase 3 Gaming HUB Music HUB Books HUB
  14. 14. Superior Customer Experience – Current Service New content everyday - FREE User downloads game from either the DIDMO website, Carrier portal or by receiving an SMS from a friend User sees ad for 4 seconds then has an option to follow through to the ad or the DIDMO content of the day User can utlizie content free for 24 hours. User sees new ad every time the conent is accessed that day The next day, when the user starts DIDMO, the application updates, delivering stats to DIDMO advertisers and the user gets new conent – completely free. <ul><li>DIDMO currently supports 99% of all Java enabled cell phones. </li></ul><ul><li>Content runs on a standardized platform that is optimized for each phone model. </li></ul>
  15. 15. DIDMO’S Current Revenue Model <ul><li>Game Sales – Avg. $3 per game purchased </li></ul><ul><ul><li>DIDMO splits revenue 50/50 with Publishers </li></ul></ul><ul><ul><li>Currently sells average of 100 games per day in Sweden </li></ul></ul><ul><li>Carrier Data Traffic Revenue Share </li></ul><ul><ul><li>Data charge for every game delivered </li></ul></ul><ul><ul><li>$0.25c per game download - Split 70% Carrier/30% DIDMO </li></ul></ul><ul><li>Advertising Insertion </li></ul><ul><ul><li>Leader & Bumper Ads -- $35 CPM </li></ul></ul><ul><ul><li>Click Through Banners, with Qualified Data Capture Service </li></ul></ul><ul><ul><li>DIDMO works with Ad Agencies - Split 30%/70% DIDMO </li></ul></ul><ul><li>Community Website Banners – April 2008 </li></ul><ul><li>Data / Demographic Metrics – June 2008 </li></ul><ul><li>DIDMO Pro Subscription – Premium Games & Services </li></ul><ul><li>Book Sales – When mBook Client launched – June 2008 </li></ul>Planned Additions :
  16. 16. Once the ‘client’ is downloaded for the first time, the user then has a simple interface to access new content - and interact with other DIDMO users - via the community WAP, right from their phone. 1 st 4 second ad delivered. Click to start content 2 nd 4 second ad Uninterrupted content experience Unlike competitor solutions all ads are truly dynamic! Do You DIDMO?
  17. 17. Future Customer Experience – Beyond Games Application Features Status / Delivery Benefit DIDMO Games ‘ Game a Day’ Current offering – LIVE! Loyalty points are tracked in the background and alerts sent to them monthly about signing up to use Community Portal Multiple games selection. Rich and immersive user experience loyalty points incorporated Built - launching April 2008 User sign up – Can select multiple games Challenge friends and compete Multiple player game engine – play friends real-time! Earn loyalty points through play Rate other players and games Track friends high scores Portal for gaming information and news Get first look at premium content Use loyalty points for free SMS, Minutes, Games DIDMO Books Chapter delivered every day. Listen at own pace. Beta version built – launching this service June 2008 Advertisers understand this model. Publishers likely to subscribe for marketing awareness opportunity. User gets content for free. Upcoming items in this category include: language lessons. DIDMO Instant message Use instant messenger built into community site to immediately text/ communicate with DIDMO friends right on their phones Beta Mode - August 2008 Launch of viral component. Stimulates usage between mobile and community portal. Entices brand loyalty and word of mouth.
  18. 18. Future Customer Experience – Beyond Games Application Features Scheduled Benefit DIDMO Books Community Portal Track and review books online. Blog about books read. Share thoughts in forum Oct/Nov 2008 Becoming the new Amazon for books where user previews book(s) through mobile delivery, then has the option to buy using ‘buy’ feature on phone or through community website. DIDMO become e’tailer of published book content. DIDMO ‘Client to Client’ Instant message other DIMDO users using client on phone. December 2008 Similar theory as Skype. Users can SMS friends that are registered users of DIDMO. Eliminates carrier SMS costs. This is a viral tool that we will soft launch. We hope this will stimulate a lot of viral activity and boost word of mouth adoption of users DIDMO games LIVE! Play sporting events with friends in network Spring 2009 Play real-time with friends competing against live televised sporting events such as tennis, hockey, soccer, football and basketball. DIDMO Applications Handy every day applications Spring 2009 Free applications for free with advertising insert DIDMO - Pro User Premium content access Spring 2009 User pays monthly fee to have service without advertising. Gets discounts on content purchased. Music Preview Upcoming artist track of the day Summer 2009 Subscriber gets to listen in advance and choose to buy next day. Same model as ‘Game a Day’. DIDMO Dating Flirt with other DIDMO subscribers in area Summer 2009 Find other DIDMO users and use a combination of community site and phone to flirt with one another using the DIDMO ‘Client to Client’ feature. DIDMO Content Xchange Manage and post user generated content. Fall 2009 Users can upload, publish, circulate for free and/or sell content. DIDMO becomes eBay of user generated content.
  19. 19. DIDMO’S Community Portal – Traversing The Gap DIDMO traverses the gap between mobile and internet seamlessly, delivering a multi touch point opportunity for content publishers and advertisers
  20. 20. Case Study: Guitar Hero 3 Campaign <ul><li>Details of 5 day Campaign Oct 26-30 2007: </li></ul><ul><ul><li>Campaign Goal: To register users on Guitar Hero 3 </li></ul></ul><ul><ul><li>community site in advance of </li></ul></ul><ul><ul><li>game launch. ”GH3” ad shown before start of game </li></ul></ul><ul><ul><li>Users respond to call-to-action OR bypass ad to play game. </li></ul></ul><ul><ul><li>Click-throughs drove users to Guitar Hero 3 website where they </li></ul></ul><ul><ul><li>could submit email address for more info and/or become members. </li></ul></ul><ul><ul><li>23,520 game downloads during the period </li></ul></ul><ul><li>Results: </li></ul><ul><ul><li>The campaign achieved an impressive 8.3% CTR (typical industry CTR 2-3%) </li></ul></ul><ul><ul><li>20.4% of click-throughs registered their email address </li></ul></ul><ul><ul><li>11.4% of click-throughs became website members </li></ul></ul><ul><ul><li>Lead-to-member ratio  56%! </li></ul></ul>“ We were skeptical about the limitations of mobile phone advertising but DIDMO converted us into believers. We are confident that the large ad format combined with their unique ability to offer our prospects real value through free mobile game content resulted in a monumental 8.3% CTR and conversion of 11.4% of click-throughs into members, far surpassing our expectations.” Anders Rinaldo, Nordic Marketing Manager, Activision - Guitar Hero 3 Ad Campaign
  21. 21. Case Study: JAMBA <ul><li>Details of 4 day Campaign April 2 – April 5, 2008 : </li></ul><ul><ul><li>Campaign Goal: To drive users to the JAMBA WAP portal. One ad, selected at random from a series of four, is shown before and after game play. </li></ul></ul><ul><ul><li>Users respond to call-to-action OR bypass ad to play game. </li></ul></ul><ul><ul><li>Click-throughs drove users to the JAMBA! WAP portal to purchase mobile content, like ring tones. </li></ul></ul><ul><ul><li>18,292 game downloads during the period. </li></ul></ul><ul><li>Results: </li></ul><ul><ul><li>56,000 ad exposures received. </li></ul></ul><ul><ul><li>The campaign achieved an average CTR of 6,5 % (typical industry CTR 1-2%). </li></ul></ul><ul><ul><li>The best performing ad had a click-through rate of 13,5 %. </li></ul></ul>&quot;As Jamba is one of the world’s leading mobile content providers, mobile advertising is a very important channel for us. We chose to work with DIDMO, because their innovative concept was absolutely convincing for us. DIDMO was a good add-on to our traditional online and mobile advertising portfolio. We look forward to continue working together with them and achieving further success.&quot; JAMBA
  22. 22. Selection of Client Ads From Our Network
  23. 23. SWOT Analysis - DIDMO <ul><li>Threats </li></ul><ul><ul><li>Competitive reaction to DIDMO. </li></ul></ul><ul><ul><li>Competitors leveraging relationships with existing distribution channels to overtake DIDMO. </li></ul></ul><ul><ul><li>Product innovation in competing technologies. </li></ul></ul><ul><ul><li>Operators attempt to block DIDMO on their platform (e.g. Verizon ‘vis a vis’ Brew). </li></ul></ul><ul><ul><li>Content publishers miss the near-term value proposition DIDMO offers, due to slow progression reaching the critical mass, where advertising dollars become a compelling business return justification. </li></ul></ul><ul><ul><li>High cost to get on carriers’ mobile portals. </li></ul></ul><ul><li>Strengths </li></ul><ul><ul><li>Innovative technology – proven user acceptance </li></ul></ul><ul><ul><li>Strong management team – With new industry veterans joining North American team. </li></ul></ul><ul><ul><li>Relationships with key advertising agencies. </li></ul></ul><ul><ul><li>Good (referencable) strategic partnerships with carriers and publishers in the Swedish market. </li></ul></ul><ul><ul><li>Solution support for 99% of all mobile phones. </li></ul></ul><ul><ul><li>Quality content provided by publishers. </li></ul></ul><ul><ul><li>Full screen ads with high observation value. </li></ul></ul><ul><ul><li>Focused on more than simply casual gaming. </li></ul></ul><ul><ul><li>Other applications in development pipeline. </li></ul></ul><ul><li>Weaknesses </li></ul><ul><ul><li>Brand name not established outside of Sweden. </li></ul></ul><ul><ul><li>Some competitors are well funded (Greystripe). </li></ul></ul><ul><ul><li>Limited financial resources hindering growth. </li></ul></ul><ul><ul><li>No physical presence in new markets. </li></ul></ul><ul><ul><li>No internal sales division focused by country. </li></ul></ul><ul><ul><li>Lack of resources currently limits DIDMO marketing efforts to viral and partner initiatives. </li></ul></ul><ul><li>Opportunities </li></ul><ul><ul><li>Fast growing, mature market: CAGR 23% </li></ul></ul><ul><ul><li>Customers' openness to innovation of delivery. </li></ul></ul><ul><ul><li>Customers' willingness to participate with advertising. </li></ul></ul><ul><ul><li>Big carriers with high subscriber range. </li></ul></ul><ul><ul><li>Flat rate or low prices on data traffic. </li></ul></ul><ul><ul><li>Value proposition universal to users worldwide. </li></ul></ul><ul><ul><li>High instance of customer return. </li></ul></ul><ul><ul><li>High instance of customers going on to buy. </li></ul></ul>
  24. 24. DIDMO’s Market Strength <ul><li>Top mobile portals advertise and offer direct downloads of DIDMO mobile games. Current unique users total over 700,000+. </li></ul><ul><li>Over 4,000,000 games downloaded since November 2006. </li></ul><ul><li>By entering UK, Germany, Spain and US markets, 3.5 million users expected by August 2008. </li></ul><ul><li>280,000 Avg. content downloads direct from DIDMO server per month, and growing. </li></ul><ul><li>10’s of millions in qualified advertisements served to date </li></ul><ul><li>30,000+ members have been collected via a 4-day test in Germany. </li></ul><ul><li>Strong strategic agreements with mobile operators and online communities guarantee prime exposure to target markets. </li></ul>
  25. 25. DIDMO Platform Benefits: <ul><li>Attractive Economics </li></ul><ul><li>No investment required by user </li></ul><ul><li>Volume margin business for DIDMO </li></ul><ul><li>Fair Ad revenue share with partners </li></ul><ul><li>Aggregated revenue through sales </li></ul><ul><li>Reach and Reliability ( Advertiser ) </li></ul><ul><li>Continuous global access </li></ul><ul><li>Instant campaign scalability/delivery </li></ul><ul><li>Pure play, Captive Audience Network </li></ul><ul><li>Real-time market data reporting </li></ul><ul><li>User open and engaging advertising </li></ul><ul><li>Focus and Flexibility ( Publisher ) </li></ul><ul><li>Renewed emphasis on core competencies </li></ul><ul><li>Greater market responsiveness; at no cost! </li></ul><ul><li>Reduced marketing commitment </li></ul><ul><li>High yield through new distribution channel </li></ul><ul><li>Simplicity and Speed ( User ) </li></ul><ul><li>Simple product configuration </li></ul><ul><li>Seamless upgrade path </li></ul><ul><li>Faster time to benefit </li></ul><ul><li>Self Service Applications </li></ul>Value Summary
  26. 26. <ul><li>DIDMO has the most downloads of any mobile game application in Sweden. </li></ul><ul><li>73% are 34 years old or younger. </li></ul><ul><li>DIDMO is used by both women and men respectivly. </li></ul><ul><li>Our typical user is a 26-year old female. </li></ul>Reaching a Highly Coveted Demographic Age distribution of DIDMO users Gender distribution of DIDMO users Female 60% Male 40%
  27. 27. Distribution Channel - DIDMO <ul><ul><li>DIDMO Launched in December 2006 and has already generated in excess of 00,0000 unique subscribers in Scandinavia alone. </li></ul></ul><ul><ul><li>In 12 months DIDMO has secured relationships with the three top mobile carriers in Scandinavia </li></ul></ul><ul><ul><li>Though successful in Sweden, the overall Scandinavia market opportunity is seen as small portion (approx 2%) of a substantial global opportunity. </li></ul></ul><ul><ul><li>Introduction of DIDMO into North America is underway; DIDMO anticipates this market yielding approx 30% of the revenue and network subscriber opportunity. </li></ul></ul><ul><ul><li>Since DIDMO have similar product characteristics as Internet Advertising, it is anticipated that premium brands will be willing to buy DIDMO network space in large territory blocks within 12 months </li></ul></ul><ul><ul><li>Total market focus represents 1.4 billion mobile users </li></ul></ul><ul><ul><li>At DIDMOS current success level - 5% of the total Swedish mobile market in 12 months - this represents a potential user base of 50 + million subscribers for casual gaming alone. </li></ul></ul><ul><ul><li>DIDMO is focused in numerous media formats. DIDMO is currently in the process of developing/launching an ad supported mobile book service (chapter a day) </li></ul></ul><ul><ul><li>With the right funding and core strategic partnerships, DIDMO is poised to become a leading global network player for mobile content. </li></ul></ul><ul><ul><li>Revenue opportunity for DIDMO is more viable than past innovative content mediums (Yahoo, Youtube) </li></ul></ul>7% - Entry June 2008 15% - Entry Sept 2008 7% - August 2008 30% - Entry April 2008 37% - Entry 2009 2% - Scandinavia - Launched 2006
  28. 28. Partnerships Channel Strategy Consumer Social Sites Online Lifestyle Offline Lifestyle Mobile Media Players Agencies Distributors Publishers Carriers Handset Manufacturers Viral “Refer-a-Friend” - Rewarded when new friend joins Top Tier - Myspace, Facebook, Lunarstorm, etc. Emerging - Playahead, etc. Large “Transitioning” Brands - Viacom, Disney, Nokia, Samsung etc Retailers Blogs – DIDMO / DIDMO Community user blogs / Serial bloggers Message boards – (viral guerilla marketing) Consumer destinations - CNet, Global Game League, IGN, Print Partnerships - Major print publishing partners Media Companies – Major content aggregator partners; solution white labeled Playphone, MobiTV, Modeo, Airplay, Helio Portal Strategy Developed for each product offering - also partner with other destination & WAP sites Resellers Ad network based Technology white labeling - Awareness Users Revenue Opportunity
  29. 29. Sales Strategy Games – Books – Music – Applications Agencies Required bodies in countries we roll out into Supporting - Channels – Resellers - Partners - In House With content On Website After “Try before you buy” Via Website Through another promotional campaign – Client Driven Analyst firms value to content aggregators Find reseller to manage service Divided by Product Offering Partners Direct Sales Sales Tools Development Advertising Product Market Data Consumer Focus Group testing
  30. 30. Sales Strategy – Product delivery Supported by services + immersive functions + Features Roadmap for up to 15 Products + services in next 36months Real-time dynamic Ad service Supports 99% of all java mobile phones Strategy to support (by end of 2008) iPhone – Brew - Windows Mobile Trojan Horse Same as Micro Browsers Configurable to users requirements Leverage commodity for partnerships Traverses experience between captive environment (phone) + interactive environment Additional advertising opportunity Additional sales + Product fulfillment opportunity Next generation counterpart to traditional media E’tailers Web + Mobile Based Content Technology Platform Client Community Website
  31. 31. Rather than spend a significant amount of time and money going down an R&D path, DIDMO shall adopt a case-by-case business strategy that will leverage proven technologies when meeting internal and external business requirements. This strategy enables a rapidly deployable solution, allows DIDMO to stay on the cutting edge of technology as it evolves, and gives DIDMO the flexibility to custom-build solutions that meet the market needs How DIDMO Evolves – Technology Approach Tight product integration through close coordination in product road map development Customized product packaging, including training, support and marketing collateral Enhanced solution sell leveraging marketing and sales channel Strong Solutions Group that specializes in developing workflow solutions for key customers Close R&D coordination to develop tightly integrated products Solution oriented sales force to push workflow solutions Sales and Marketing Collaboration Product OEM Joint Venture Investment / Acquisition Coordination of marketing activities through joint advertising , white papers and press releases Cross - sell products by developing a sales incentive structure Beneficial channel arrangements, especially outside North America Close integration of all products through tighter control over the Product roadmap Merger of strong consulting and R&D team with powerful sales and marketing infrastructure Significant financial benefits through business and technology synergies Benefits Contractual Relationship/Limited Integration Full Integration
  32. 32. Operators DIDMO Partners Aggregators Ad Agencies Publishers Portals
  33. 33. DIDMO - Revenue Assumptions
  34. 34. DIDMO – Revenue Projections
  35. 35. Description of Cases <ul><ul><li>Development as expected </li></ul></ul><ul><ul><li>Competitors develop better solution and position brand leadership in the next 18 months </li></ul></ul><ul><ul><li>Market growth limited (3%) – Which is highly unlikely </li></ul></ul><ul><ul><li>Market price for CPM rates lower than expected </li></ul></ul><ul><ul><li>Lack of funding prevents timely market capture </li></ul></ul><ul><ul><li>No comparable offering by competition in 2008-9 </li></ul></ul><ul><ul><li>Brand recognition as industry leader worldwide </li></ul></ul><ul><ul><li>Market growth exceeding expectations (20 - 30%) mainly driven by introduction of new services </li></ul></ul><ul><ul><li>Revenues topping $100mm+ </li></ul></ul>Worst Case Base Case Best Case
  36. 36. Industry Recognition – Frost & Sullivan / WEBBY “ DIDMO has clearly proven the potential of in-application mobile advertising in Europe. The company continues to innovate on various technology and service-delivery parameters to differentiate its services, and is also expected to also offer other types of ad-enabled mobile media (beyond games). Frost & Sullivan’s Mobility Awards Committee presents DIDMO with the 2008 Award for Entrepreneurial Company in the U.S. Mobile Advertising markets, and expects DIDMO to emerge as a leader in the mobile advertising ecosystem in the United States.” - Vikrant Ghandi, Strategic Industry Analyst, Mobile Communications -- Frost & Sullivan The Webby Awards, the leading international honor for the Web, recognized DIDMO’s in-game advertising solution as an Official Webby Honoree in the Mobile Gaming category, a distinction that recognizes work exhibiting remarkable achievement.
  37. 37. Summer 2008 Contact: Joseph Oliver, Interim CEO [email_address]