Download - Video Panel Monetizing Ugc Vs Proprietary
Jefferies & Company, Inc.
Jefferies 4th Annual Internet Conference
February 27, 2008
CONFIDENTIAL DRAFT
Member, SIPC
Video Panel: Monetizing User Generated vs. Proprietary Content
Panelists
Panelists arerepresentative of themany facets of the videoopportunity
User/Proprietary Media
Video Technology
Ad Networks
Agency Services
Joy MarcusGM, US
David LiuManaging Director
Internet & Digital Media Group
Matt WasserlaufCEO
Keith RichmanFounder and CEO
Doug StevensonFounder and CEO
1
Sector Snapshot
2
410
775
1,350
2,100
3,100
4,300
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2006 2007 2008 2009 2010 2011
What is the Video Market Opportunity?
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110
130
145154
165
0
20
40
60
80
100
120
140
160
180
200
2006 2007 2008 2009 2010 2011
US Online Video Ad Viewers, 2006-2011E1US Online Video Advertising Revenue, 2006-2011E1
(1) Source: eMarketer, June 2007.(2) 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.
(Millions)($ Millions)
13% CAGR
60% C
AGR
2
13.7%
12.0%
10.9%
9.4% 9.3%
8.0%
7.3%
6.5% 6.4%
5.1%
4.3%4.0%
3.2%
News/ CurrentEvents
Movie/ TVTrailers
Music Videos User-Generated
Videos
Jokes/Bloopers
WeatherInformation
EntertainmentNews/ Movie
Reviews
TV Shows (Full
Episodes orExcerpts)
Sports Clips/Highlights
Other Cartoons Business/Financial
News
Full-LengthMovies
What Content Do We Watch Online?
Source: eMarketer, August 2007
Video Content Viewed Online
1
Recent Developments In Online Video
5
Google opens up AdSense for video to large publishers, offering both CPC and CPM overlay units
LiveUniverse acquires struggling video site Revver for under $5MM
Yahoo! acquires online video platform provider Maven Networks for ~$160MM
Writers Guild ends three-month strike after reaching tentative agreement with studios for “New Media” compensation
Skype co-founders Janus Friis and Niklas Zennström officially launch Joost, the desktop Internet TV platform, after raising $45MM in May 2007
Meet the Panelists
7
Joy MarcusGM, US
7
Keith RichmanFounder and CEO
7
1010
Overview
11
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.
BREAK MEDIA
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
Doug StevensonFounder and CEO
7
NEW YORK SAN FRANCISCO LONDON PARIS HAMBURG
Company Snapshot
Founded by Doug Stevenson and Craig Gooding in 2000
Started with $500k
ABS Capital invested $25m July 2005
112% revenue growth in 2007. Revenues:
$41 million in 2006
$86.5 million in 2007
81% user growth year over yearOver 120 million unique users worldwide per month (comScore, Jan 2008)
Live campaigns on over 3,000 publisher websites
IDG, News Corp, Hearst, NBC, AMI, Hoovers, MSNBC
Patented technology operating in 13 different languages
200 employees worldwide
Offices in New York (HQ), Detroit, LA, San Francisco, London, Paris & Hamburg
Page 15
Page 16
*comScore Worldwide, 2008
You no longer need video content to deliver video advertising. All you need are words.
Source: IAB Digital Video Overview; January, 2008.
Matt WasserlaufCEO
7
February 2008
Broadband Enterprises Overview
Enables highly-targeted video advertising across a network of over 2,000 leading content providers
– Advertising capabilities supported by extensive library of original and premium syndicated content
– Expertise in professional and cost-effective online video content production
– Sophisticated ad serving, advertising inventory marketplace and analytics capabilities
Extensive reach with over 55 million unique monthly visitors and over 1 billion monthly impressions
Highly scalable business model
(1) comScore, 2007.
Broadband Enterprises provides premium online video advertising and advanced technology solutions to
advertisers
Founded in 2004
Largest online video network
2nd 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
Consumers
Broadband Enterprises Connects Multiple Online Video
Constituencies
Advertisers & Agencies
Publishers (Sites / Programmers)
High quality content maintains integrity of brand Ability to select content and distribution points enables better targeting Increased inventory permits advertisers to deploy additional online
marketing dollars Segment-level video reporting enhances understanding of viewer behavior
Ability to better monetize content through creation of additional video advertising inventory
High quality video inventory leads to higher CPMs Increased content consumption due to heightened viewer
engagement
Ability to view increased breadth of high quality video content
As a result of targeting, view advertisements with greater relevancy
Vindico Ad Serving & Campaign Management Platform
vComm Video Content Marketplace
Network of 2000+ Leading Sites
The Internet
Premium Content
Broadband Enterprises Platform Overview
Network of 1,800+ media affiliates incorporates premium publishers across 14 different content categories
Advertiser
Premium Content
Professional-quality original productions & premium syndicated content
Vindico
Proprietary platform offering XML-based ad serving and campaign analysis capabilities
vComm
Online video distribution and transactional system which provides a marketplace for advertising inventory
NetworkSelected Accounts:
Selected Examples:
Dave’s Top Five
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Dave’s Top Five
1. Weakening economy: near term impact? Long term impact?
2. MicroHoo (aka Yahoosoft)? Good or bad?
3. What are the implications for online video from the Hollywood Strikes?
4. Are newer online advertising formats, such as in-text, better suited for user-generated or proprietary content?
5. 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?
13
1980s
2000s
Beyond?
Dave’s Top Five Back-up
12
1980s
2000s
Beyond?
1. If you could LONG or SHORT any stock to exploit Video 2.0 what would it be?
2. Hot or not?
Mobile video
Live video streaming
Citizen journalism
3. What’s the best payment model?
Clicks vs. Impressions vs. Engagement
4. Do advertisers need to take risks and sponsor UGC or do brands have an advantage advertising among other brands within proprietary content?
5. What needs to happen for media planners and buyers to increase interest and usage in online video advertising?