6. Affiliate Advertising
• Revenue sharing , pay-per-sale/cost-per-action models. You only pay money
when you make money.
• Both B2B and B2C oriented. The advertiser provides the offer, and the
media promotes it.
Advertiser Media
Affiliate Agreement
Audience
Purchases
Revenue Share
7. Affiliate Advertising
Considerations
• Affiliate networks vs propriety programs
• Choosing the right affiliate partners – profile of audience, track record and
reputation
• How much of the revenue to share
• Cost of content production
• Advertisers should not rely on its affiliate partners to replace its sales team
• Limited ability to control the media/publishers
• Easy to track for web, but not so for other media types
• Big media may not be interested;
8. Affiliate Success Stories
GROUPON
• Direct relationship with affiliates
• Extensive creative portfolio
• Up to 12% affiliate fee
• Detailed reporting
• More than 10 000 online publishers in 30
countries
Grabo.bg
• Direct relationship with affiliates
• Extensive creative portfolio
• Detailed reporting
• Up to 18% affiliate fee
• More than 5 000 online publishers
9. White Label
• Media builds own brand;
• Media benefits from return
business;
• Media promotes the white
label service via different
media that is otherwise
difficult to track with
affiliate;
• Media can expand the
Merchant’s value
proposition.
10. Media 4 Sales
• Company builds its own
service;
• Media promotes the
services in return for the
right to sell and retain the
advertising sold on
Company’s site,
application, etc.
11. Media 4 Equity
• Innovative funding concept, where advertising space (ad coins) is
exchanged for equity;
• Alternative where venture capital is not plentiful.
Family & Friends,
Accelerators
Media:
TV, Web, Mobile,
Print, Radio, Outdoor
VCCompany
Angels, Banks
12. Media 4 Equity Considerations
• A great idea for companies ready to scale through marketing but need their
cash to finance their growth
• Reputation and experience in investing in start-ups
• Cross-market and cross-media capabilities
• Valuation
13. M4E Success Cases
Zalando
• M4E deal with SevenVentures (Pro7Sat)
• 85% brand awareness in Germany 2 years after founding
• Today present in 14 countries, and bln. $1.8 revenue in 2013
14. • MTG
is
the
leading
media
company
in
several
markets
MTGx M4E
15. MTGx M4E
• Scaling and growth made faster and easier with direct access to MTG media
• Pan-territorial launch across CEE and CIS
• Access to market knowledge and local org. for consulting
• Establish a future relationship with local media partner
• One single point of access through MTGx
16. Primary interest
Areas of interest:
• Games
• Sport
• Music
• E-commerce
• Dating
• Travel
• Betting
• Classifieds
• Entertainment portals
Criteria for investment shall apply:
• Area fit
• Possibility to turbocharge company
with media
• Profitable business model
• Cash for operations raised
MTGx invest primarily with media for equity to take the venture across the
borders throughout MTG territory and further internationally