ADvantage: Rich Media AdvertisingThe Five MarketeersChris AdamsOmar El-AyatDavid FairbankCharles LillyJane Rao

Technology Overview

Market Opportunity

Business Model

Technology Concept

•PicFind: Visual recognition technology▫Instantaneously identify objects,

locations, and people against a database▫Pixel-by-Pixel analysis concentrating on

color, shape, and texture▫Identifies points of interest (POI)

PicFind in Action

Great Pyramids

Jane Bob

Sand

Camel

Camel

Cairo, Egypt

Sahara Desert

Technology Specs• Baseline: 25.165824 megapixel image = 4096 x 6144

pixels▫ Photo

Current Digital Camera Average: 10 megapixel image▫ Video

HDTV: 2.052 megapixel images Up to 60 fps

MPEG: 0.4423 megapixel images Up to 24 fps

35mm: 6.291456 megapixel images Up to 24 fps

• Target: 2500 megapixel/s analysis rate with 99.99% accuracy rate▫ Roughly 100 still photos per second▫ Capable of real-time analysis of any available video

format

PicFind POI Tagging Accuracy at2500 megapixels/s analysis rate

Technology Overview

Market Opportunity

Business Model

Top 10 Globally Visited Websites

1. Yahoo!2. YouTube3. Windows Live4. Google5. Microsoft Network (MSN)6. MySpace7. Facebook8. Hi59. Wikipedia10.Orkut

Source: Alexa Internet, Inc 2008

Struggles to Monetize•Billions of rich-media page views a day•All ad-matching based on meta tagging•Click-thru rates well below industry standards•Problem: Poor ad-matching strategies

Only 9% of total online ad spending

“We have found that social networking inventory is not monetizing as well as we would like”- George Reyes, Google’s CFO

Market Opportunity: ADvantage Rich Media Ad Network

•Solution: Photo and Video Ad-Matching using PicFind’s recognition technology▫ADvantage Rich-Media Ad Network▫Goal: Revolutionize ad matching across

social network, photo, and video platforms

Target Market•Rich Media Publishers

▫Video▫Photo▫Social Networking

•Corporate Advertisers▫Brand-Intensive Marketing

Consumer Goods Travel Destinations and Agents Automobiles

Sample Target Publishers

Sample Corporate Advertisers

Example: Better Advertising on Facebook

•As of May, 2007:▫ 1.7 billion user photos▫ 2.2 billion friends tagged in user photos▫ 60+ million photos added each week▫ 3+ billion photo views each day

•Facebook CTR = .04%•ADvantage CTR = 1%•87 Random Stanford Students Surveyed

▫ 75% would click on actionable tagged items▫ 81% do not mind side display ads▫ 100% would like more relevant display ads

(Statistics from Facebook.com)

Example: Sample Facebook Layout

Example: Better Advertising on YouTube

•As of January, 2007:▫ 6.1 million videos on YouTube▫ 100 million video views a day

▫ Poor track records of monetization of page views

•Advertising Techniques: • Video overlays at relevant portions of video

• Actionable Items• Adjacent Display Ads (Still or Video)

Partners and Allies• Google AdSense, Microsoft AdCenter, and other

large-scale networks▫ Existing client contracts

• ADvantage’s advantage: Targeted rich-media advertising capability ▫ Add value to partners’ existing and future clients

Competitors

•Video Advertising Solutions▫Google AdSense for Video▫Tremor Media▫Adap TV▫Scan Scout▫Tacoda (AOL)

•Current Technologies▫Meta-Tag Analysis Based Tagging▫Speech Recognition Based Tagging

Risks and MitigationRisk Mitigation

Lack of familiarity with rich-media advertising

Target early-adopter organizations

Difficulty penetrating existing publisher market

Work with partners and allies

Large-scale advertising networks competition

Provide cheaper and more effective implementation

Negative brand association Brand Protection

Technology Overview

Market Opportunity

Business Model

Business Model: Generating Clicks (PPC Model)

• Estimated Total Market: 15 billion rich media page views per day

• Assuming 1% CTR, $0.01 pay-per-clickTarget Date Rich-Media Website Adoption Rate (%)

Daily Page Views

Daily Clicks

Q1 2009 1 150m 1.5m

Q3 2009 10 1.5 bn 15m

Q1 2010 25 3.75bn 37.5m

Q1 2011 50 7.5bn 75m

Business Model: Generating Impressions(CPM Model)

• Estimated Total Market: 15 billion rich media page views per day

• Assuming $1 per thousand impressionsTarget Date

Rich-Media Website Adoption

Rate (%)

Daily Page Views

Daily CPM Impressions

Q1 2009 1 150m 150,00

Q3 2009 10 1.5 bn 1.5m

Q1 2010 25 3.75bn 3.75m

Q1 2011 50 7.5bn 7.5m

Business Model: Revenue Projections

• Assumptions:▫ P/E Ratio: 35▫ Advertisers: 60/40 PPC/CPM Split▫ Revenue Share with Publishers: 60% (them)/ 40% (us)

Date Daily PPC Clicks

Daily CPM Impressions

Yearly Revenue

($m)

Earnings ($m)

ExpectedValuation

Q1 2009

0.9m 60,000 10 1 $35m

Q3 2009

9m 600,000 100 10 $350m

Q1 2010

22.5m 1.5m 630 63 $2.2bn

Q1 2011

42.3m 3m 1300 130 $4.5bn

Thank you!