June 1, 2007 Mobile Advertising Models 6th Annual Global Mobility Roundtable 2007 – Los Angeles A Meteor Worldwide Company About Pliq • A Meteor Worldwide company Mobile Content Delivery Mobile Mobile Marketing Core competency in Branded Entertainment Original content creation capability via White Flower entertainment • Founded in 2006 • Headquartered in Los Angeles, CA Branded Entertainment Content Production White Flower Entertainment • Product Integration • Celebrity Seeding • Events/Sponsorship • Corporate Alliances • Original Content Creation • Re-purposed Content • Production Resources • Pliq Services Mobile Marketing Services “Pliq Flicks” – original brand-sponsored mobile episodes • Established partnerships with top Hollywood content • Deep marketing agency and brand company relationships 2 U.S. Wireless Market Overview • ~ 200 million U.S. mobile subscribers • Penetration rate nearing 75% • Carriers looking to differentiate themselves via the introduction of Value Added Services (VAS) Source: Moors & Cabot, Pliq Analysis 3 Mobile Value Added Services Today Future Voice Analog Analog-Digital Digital Only Dual-Mode Wifi+Digital Data Access Low Speed •Services evolve over 3G (Today) Enhanced 3G SMS/MMS time … Text Messages Pictures MultiMedia Ringtones/Music/Gaming •Services are proliferating… Ringtones deployed more frequently… Streaming Video Clips •Services are being Download Streaming Interactive LBS/mCommerce Location sensitive marketing “Credit Card with an antenna” 4 Mobile Video – Accelerators vs. Brake Factors Accelerators Brake Factors 3G & 4G Networks Pricing Short Codes Ease of Use Subsidized Content Content Variety Interoperability Ease of Payment User Awareness Smart Handsets Handset Presentation Innovative business models required!! 5 Mobile Video Business Models Subscription Consumers pay a recurring fee for access to video content On Demand Consumers pay on a per download basis Mobile Advertising Advertising is combined with video content Free to consumers 6 U.S. Mobile Video Consumer Needs Consumers are interested in viewing mobile video… Types of mobile videos consumers are interested in viewing Local Weather Updates 38% Local Traffic Updates 27% Movies 23% Comedy Shows 21% News Clips 21% Live Sports 19% TV Dramas Yes (44% ) No (56% ) 16% Sports Highlights 14% Documentaries 13% Science Fiction 11% Talk Shows 11% Reality TV Shows 10% Movie Trailers 10% Adult Entertainment 10% Game Shows 10% Short Animated Clips 8% 0% Source: Jupiter Research; Pliq analysis 10% 20% 30% 40% % of Cell Phone Users 50% 7 U.S. Mobile Video Consumer Needs (cont.) …But consumers are not willing to pay for mobile video Mobile services consumers are currently paying for Yes (44% Yes (19% ) No (81% ) Source: Jupiter Research; Pliq analysis 8 The Advertiser Revolt 9 Any Content vs. The Walled Garden Virtually Unlimited Carrier Controlled 10 Industry Validation Of Mobile Advertising Business Model 11 Industry Validation Of Mobile Advertising Business Model (cont.) 12 What Is Brand Sponsored Content? • Content integrated or associated with a Brands marketing message • Brands associate with entertaining content via: Product integration Banner ads Video Ads 13 Value of Brand Sponsored Mobile Content For Brands Engage consumers with brands marketing message using entertaining content Create direct relationships with consumers allowing brands to subsequently direct market to those consumers Additional info on brand’s products and services is easily accessible to consumers Connect with consumers via their most personal device, the mobile phone For Consumers Mobile content is free Easily share mobile videos with friends 14 Case Study - Toyota & Fox • Created a series of mobisodes based on the hit drama “Prison Break” called “Prison Break: Proof of Innocence” • Each mobisode starts with a 10-second marketing message showcasing the Yaris and select mobisodes integrated the Yaris into the story line • Series is comprised of 26 two-minute mobisodes and is distributed through the Sprint Network 15 Pliq Flicks • • • • • • • • • Original Content Soaps & Telenovelas for Teens and young women Food/Cooking shows for women Comedies (stand-up and short features) for young men Dramas (action, mystery) for young men Stand-Up Comedy Teenage Soap / Drama Repurposed Content Animated features for young men Fashion/beauty/hair for young women “Back stories” from films/TV shows for all demographics Longer form add-ons for all demographics Art/entertainment for all demographics © 2006 Pliq – All Rights Reserved Sports Programming Arts/Entertainment Review Sneak Peaks & Behindthe-Scene Short Films 16 • “Everybody’s (traditional media companies) basically putting their toe in the water. We’re all aware how hugely significant this (mobile video) is going to become both culturally and financially in the next couple of years.” - • “Watching video on cell phones could eventually easily surpass demand for games, ringtones and wallpapers and reach 100% of the population.” - • Leslie Moonves, CEO, CBS Corporation Rob Hyatt, Executive Director of Mobile Content, Cingular “The Days of doing a TV spot and reaching everybody are dwindling. The mobile phone is very personal, and it’s always with you.” - Jon Raj, Visa, New Media Chief 17 Sanjay Pothen 5700 Wilshire Boulevard Suite 285 Los Angeles, CA 90036 (323) 954-1881 (T) (323) 933-8810 (F) www.pliq.com s.pothen@pliq.com